<PAGE>
The
Benchmark Funds
Money
Market
Portfolios
Semi-Annual Report
May 31, 1997
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK
WHAT HAS CHANGED
Financial markets moved higher during the period as the flow of economic data
remained market friendly. Weaker-than-expected retail sales and still-benign
inflation reports convinced investors that growth was slowing materially and
that price pressures did not warrant a tightening of Federal Reserve policy.
Bonds rallied on the good news and drew further support from the Treasury's
reduced financing calendar. Stocks also did well, moving further into record
territory amid increased volatility. Overseas, the financial outlook for
Europe remained ambiguous as European Monetary Union participants signed the
stability pact without reconciling France's desire to loosen the fiscal
discipline demanded by the Treaty.
ECONOMY: MODERATE GROWTH TO CONTINUE IN 1997
The pace of economic activity slowed significantly in the second quarter. Just
as first quarter final demand was artificially boosted by unseasonably good
weather, second quarter final demand has been artificially dampened by
unseasonably bad weather. But the underlying fundamentals for domestic demand,
plentiful employment opportunities, rising labor compensation, and increasing
household wealth remain favorable, suggesting that demand growth will pick up
in the second half of the year. Despite the softening in domestic demand,
foreign demand has been strong. The demand for U.S. exports has been
especially robust in Canada, Mexico, the United Kingdom, and Latin America.
After their surge in the first quarter, inventories continued to rise early in
the second three-month period of the year. Nevertheless, these inventories do
not yet appear to be increasing involuntarily as they continue to remain low
relative to sales. The labor markets remain tight as evidenced by an
unemployment rate below 5%. There continue to be anecdotal reports of
increased difficulties of finding qualified job applicants at current wage
rates. So far, the relative scarcity of labor has not translated into
appreciably higher core inflation. In recent months, however, there have been
indications of a marginal acceleration in the prices of consumer services. It
is in the service sector where the most vulnerability to higher inflation
lies. This sector's prices are less affected by the behavior of foreign
exchange rates because services are not traded internationally to the extent
that goods are. Because the service sector is more labor intensive than the
goods sector, tight labor market conditions could more quickly result in
higher prices for services. Despite signs of a slow drift up in service sector
inflation, consumer goods inflation shows no similar upward drift. Falling
energy prices have kept overall inflation well in check.
As long as the economy continues to grow near its potential, which is our
forecast, risks will remain on the side of a drift up in inflation. As a
result, the Federal Reserve will have a bias de facto if not de jure toward
tightening policy. To some degree, the Federal Reserve's latitude to act
preemptively against inflation may have been restricted by its past success in
holding down inflation. There is an evolving view that we are now in an
economic environment incapable of generating higher inflation. This belief is
especially popular in Congress currently, which opens up the Federal Reserve
to severe bipartisan criticism whenever it tightens. Also, with more people
coming off the welfare rolls because of system reforms, the Federal Reserve is
under political pressure to allow the economy to continue to grow relatively
rapidly in order to create employment opportunities for former welfare
recipients. But even if these pressures were to keep the Federal Reserve from
tightening as soon as it might otherwise do, the lack of inflation psychology
in the economy, the lack of big new government spending programs, continued
low inflation in the Group of Seven industrial nations, and a continued large
volume of goods being exported from China and former Iron Curtain countries
should still enable the Federal Reserve to remain in a fine-tuning tightening
mode rather than having to engage in tightening of a major countercyclical
nature.
THE BOND MARKET IS ATTRACTIVE
Rates fell moderately and the yield curve flattened during the period on
evidence of decelerating economic activity and still-benign inflation. Reduced
Treasury issuance, reflecting lowered funding needs due to the shrinking
federal deficit, helped to fuel the rally. By quarter's end, the market had
removed expectations of a rate hike at July's meeting of the Federal Open
Market Committee
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. 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.
1
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK--CONTINUED
but continued to reflect one modest increase prior to year's end. The yield on
the 10-year Treasury closed near its low for the quarter and 48 basis points
below its mid-April highs.
We continue to view the bond market as attractive and believe that today's
generous real yields provide adequate compensation for the risk that rates may
move temporarily higher due to cyclical pressures beyond those already
factored into the market. On a secular basis, we believe that the growth and
inflation assumptions underpinning the balanced budget agreement will require
that our elected representatives adhere to policies supportive of low
inflationary growth. Additionally, the implicit benchmarking provided by the
budget agreement heightens our longer-term confidence that U.S. fiscal policy
will stay on track. In the shorter term, surging tax receipts spawned by the
vibrant U.S. economy and ongoing efforts to downsize government spending have
created a very favorable supply/demand situation in the Treasury market.
Although the deficit has declined from $255 billion in fiscal 1993 to near $70
billion in fiscal 1997, net interest payments on outstanding government debt
have risen from $200 billion to $250 billion. On a purely technical basis, the
pool of interest payment cash flows increasingly outstripping the supply of
new government bonds supports higher Treasury prices. In addition, sharp
reductions in the supply of Treasuries should lessen recurring concerns about
potential selling by foreign central banks and/or hedge funds. Importantly, we
believe that the sound fiscal policies manifested in these favorable technical
trends should, over time, help reduce the risk premium priced into today's
bond yields.
In contrast, the fiscal outlook for Europe remains ambiguous,
notwithstanding France's recent decision to sign off on the European Monetary
Union stability pact. Growing uncertainties regarding the viability of
European Monetary Union and the timing of fundamental structural reform in
Europe appear to be making U.S. financial markets look relatively attractive.
U.S. debt securities have benefited versus German debt instruments as the
yield spread on 10-year U.S. versus German bonds has contracted nearly 35
basis points in the past six weeks. Risks to European investments are unlikely
to dissipate in the near future and favor a further reduction in the U.S.
market's risk premium.
Our characterization of the U.S. bond market remains modestly positive. Real
yields remain attractive, and we expect the balanced budget agreement to
promote bond-friendly policies in the years to come. In addition, the
combination of sound fiscal policies and reduced Treasury issuance should help
to lower the risk premium incorporated in today's yield structure. We
recommend positioning bond portfolios neutral to slightly long relative to
their benchmarks.
July 8, 1997
2
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
3
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
INVESTMENT ABBREVIATIONS AND NOTES:
ADP --Automatic Data Processing
AMBAC--American Municipal Bond Assurance Corp.
AMT --Alternative Minimum Tax
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
Colld.
--Collateralized
CP --Commercial Paper
COP --Certificate of Participation
FGIC --Financial Guaranty Insurance Corp.
FNMA --Federal National Mortgage Association
FRN --Floating Rate Note
FSA --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
NA --National Association
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
PLC --Public Limited Company
RAN --Revenue Anticipation Note
Soc Gen
--Societe Generale
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.
. 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.
4
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO
<C> <C> <S> <C>
BANK NOTES--2.3%
Boatmen's National Bank of
Kansas City FRN
$50,000 5.830% 06/03/97 $ 49,995
Boatmen's National
Bank of St. Louis
FRN
20,000 5.830 06/03/97 20,000
Key Bank
5,000 5.854 11/07/97 4,874
6,000 5.779 11/21/97 5,838
Mellon Bank, New
York
3,000 5.796 11/10/97 2,924
- ------------------------------------------------------
TOTAL BANK NOTES $ 83,631
- ------------------------------------------------------
CERTIFICATES OF DEPOSIT--15.1%
DOMESTIC DEPOSITORY INSTITUTIONS--2.8%
Crestar Bank
$25,000 5.730% 08/08/97 $ 25,000
First Alabama Bank
15,000 5.480 07/08/97 15,000
First Tennessee
Bank
38,000 5.420 06/05/97 38,000
20,000 5.625 06/27/97 20,000
----------
98,000
----------
FOREIGN DEPOSITORY INSTITUTIONS--12.4%
Bank of Scotland,
London
90,000 5.420 06/05/97 90,000
Bank of Tokyo-
Mitsubishi, London
7,000 5.660 06/16/97 7,000
20,000 5.700 07/08/97 20,000
20,000 5.800 07/21/97 20,000
8,000 5.660 07/28/97 8,000
Canadian Imperial
Bank of Commerce,
New York
30,000 5.700 07/14/97 30,000
Dai Ichi Kangyo
Bank, New York
19,000 5.700 08/28/97 19,001
Landesbank Hessen-
Thueringen
Girozentrale
20,000 5.620 09/11/97 20,024
Norinchukin Bank,
London
40,000 5.700 06/13/97 40,000
Sanwa Bank, New
York
9,000 5.700 06/05/97 9,000
35,000 5.640 06/23/97 35,000
15,000 5.860 08/01/97 15,001
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
Societe Generale,
New York
$26,000 5.800% 10/06/97 $ 26,023
20,000 5.800 01/13/98 19,988
14,000 5.870 03/03/98 13,996
Sumitomo Bank
Ltd., New York
17,000 5.690 06/16/97 17,000
26,000 5.720 07/07/97 26,000
16,000 5.680 07/28/97 16,000
9,000 5.720 07/28/97 9,000
----------
441,033
- -----------------------------------------
TOTAL CERTIFICATES OF DE-
POSIT $ 539,033
- -----------------------------------------
COMMERCIAL PAPER--41.4%
ASSET-BACKED SECURITIES--7.3%
Galicia Funding
Corp. (Bayerische
Vereinsbank LOC)
$25,000 5.710% 08/28/97 $ 24,656
International
Securitization
Corp.
18,000 5.732 07/18/97 17,867
Kitty Hawk Funding
Corp.
13,224 5.722 07/15/97 13,133
Lexington Parker
Capital Company
LLC
18,000 5.656 06/03/97 17,994
50,000 5.700 06/20/97 49,851
25,000 5.772 08/07/97 24,735
SALTS (II) Cayman
Islands Corp.
26,000 5.613 06/19/97 26,000
SALTS (III) Cayman
Islands Corp.
58,000 5.788 07/23/97 58,000
Variable Funding
Capital
29,000 5.611 06/10/97 28,959
----------
261,195
----------
BROKERAGE SERVICES--2.2%
Morgan Stanley
Group, Inc.
64,000 5.659 07/11/97 63,602
15,000 5.677 08/22/97 14,809
----------
78,411
----------
COMMUNICATIONS--1.5%
GTE Financial
Corp.
44,000 5.618 06/20/97 43,870
NYNEX Corp.
8,000 5.629 06/17/97 7,980
----------
51,850
----------
DATA MANAGEMENT SERVICE--0.3%
First Data Corp.
10,000 5.732 07/15/97 9,931
----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
<C> <C> <S> <C>
DOMESTIC DEPOSITORY INSTITUTIONS--2.4%
First Chicago
Financial Corp.
$20,000 5.654% 07/28/97 $ 19,823
NationsBank Corp.
65,000 5.675 07/18/97 64,524
----------
84,347
----------
FOOD AND KINDRED PRODUCTS--1.6%
Cofco Capital
Corp. (Credit
Suisse LOC)
19,000 5.624 06/09/97 18,976
40,000 5.779 09/10/97 39,364
----------
58,340
----------
FOREIGN DEPOSITORY INSTITUTIONS--1.1%
Indosuez North
America, Inc.
12,850 5.726 07/30/97 12,731
Internationale
Nederlanden
Funding Corp.
15,000 5.618 06/19/97 14,958
13,000 5.709 08/25/97 12,827
----------
40,516
----------
HEALTH SERVICES--1.9%
Columbus
Healthcare
11,700 5.652 06/02/97 11,698
8,000 5.792 07/07/97 7,954
50,000 5.793 07/08/97 49,704
----------
69,356
----------
HOLDING AND OTHER COMPANIES--1.9%
Green Tree
Financial Corp.
38,825 5.719 06/10/97 38,770
30,000 5.688 06/12/97 29,948
----------
68,718
----------
INSURANCE CARRIERS--0.3%
Aetna Service
Company
10,000 5.617 06/19/97 9,972
----------
NONDEPOSITORY BUSINESS CREDIT INSTITU-
TIONS--6.4%
FBA Properties,
Inc. (NationsBank
Georgia LOC)
11,400 5.620 06/11/97 11,382
Finova Capital
Corp.
10,000 5.472 06/25/97 9,964
55,000 5.741 07/14/97 54,628
13,000 5.790 09/10/97 12,793
Heller Financial
34,000 5.661 06/17/97 33,916
Sanwa Business
Credit Corp.
29,000 5.454 06/09/97 28,965
20,000 5.705 07/07/97 19,887
40,000 5.732 07/07/97 39,774
/TABLE>
TABLE>
CAPTION>
Description
- ----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------
<C> <C> <S> <C>
Vehicle Services
America Ltd.
(NationsBank Texas
LOC)
$16,300 5.622% 06/06/97 $ 16,287
----------
227,596
----------
PRINTING, PUBLISHING AND ALLIED INDUS-
TRIES--2.1%
Tribune Company
51,000 5.700 08/25/97 50,323
25,000 5.691 08/27/97 24,661
----------
74,984
----------
TRANSPORTATION--12.4%
BMW US Capital
Corp.
37,419 5.758 09/10/97 36,826
Chrysler Financial
Corp.
35,000 5.867 06/10/97 34,949
35,000 5.655 07/28/97 34,690
25,000 5.653 07/29/97 24,774
40,000 5.655 07/29/97 39,639
40,000 5.655 07/30/97 39,633
Ford Credit Canada
Ltd.
20,000 5.655 06/09/97 19,975
24,000 5.655 06/10/97 23,966
15,000 5.731 07/14/97 14,899
10,000 5.731 07/15/97 9,931
25,000 5.732 07/17/97 24,820
20,000 5.731 07/21/97 19,843
20,000 5.732 07/22/97 19,840
20,000 5.732 07/23/97 19,837
Ford Credit Europe
6,000 5.731 07/28/97 5,946
General Motors Ac-
ceptance Corp.
35,000 5.552 07/01/97 34,843
10,000 5.781 07/29/97 9,908
7,515 5.971 10/08/97 7,358
20,000 5.978 10/15/97 19,560
----------
441,237
- ----------------------------------------
TOTAL COMMERCIAL PAPER $1,476,453
- ----------------------------------------
CORPORATE NOTES--7.2%
Associates
Corporation NA
$50,000 5.610% 06/02/97 $ 49,973
FPL Capital Group
5,400 6.500 07/01/97 5,404
Fifth Third Bank,
Cincinnati, Ohio
32,000 5.410 06/10/97 32,000
First Wachovia
Bank, North
Carolina
30,000 6.100 04/06/98 29,977
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------
<C> <C> <S> <C>
General Electric
Engine Receivables
1995-1 Trust FRN
$18,374 5.690% 06/02/97 $ 18,374
General Electric
Engine Receivables
1996-1 Trust FRN
34,731 5.756 06/02/97 34,732
International
Business Machines
Credit Corp.
10,000 5.450 11/10/97 9,992
Key Bank NA
25,000 6.190 04/03/98 24,988
Key Bank NA FRN
51,000 5.578 06/19/97 51,000
- ------------------------------------------
TOTAL CORPORATE NOTES $ 256,440
- ------------------------------------------
EURODOLLAR TIME DEPOSITS--
19.8%
AmSouth Bank, Grand
Cayman
$39,996 5.688% 06/02/97 $ 39,996
Banco Central
Hispanoamericano,
Grand Cayman
50,000 5.688 06/02/97 50,000
Bank of Montreal,
Montreal, Canada
89,185 5.688 06/02/97 89,185
Banque Paribas,
Grand Cayman
70,000 5.750 06/02/97 70,000
First National Bank
of Boston, London
65,000 5.594 06/02/97 65,000
Firstar Bank,
Milwaukee, Grand
Cayman
75,000 5.688 06/02/97 75,000
ING Bank, London
75,000 5.750 06/02/97 75,000
Mercantile Bank of
St. Louis, NA, Grand
Cayman
75,000 5.688 06/02/97 75,000
Midland Bank PLC,
Grand Cayman
77,945 5.563 06/02/97 77,945
NationsBank, N.A.,
Grand Cayman
90,000 5.625 06/02/97 90,000
- ------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS $ 707,126
- ------------------------------------------
GUARANTEED INVESTMENT
CONTRACTS--3.5%
General American
Life Insurance Co.
FRN
$75,000 5.890% 06/23/97 $ 75,000
Integrity Life
Insurance Co. FRN
15,000 5.760 07/01/97 15,000
Transamerica Life
Insurance and
Annuity Co. FRN
35,000 5.688 06/02/97 35,000
- ------------------------------------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS $ 125,000
- ------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------
<C> <C> <S> <C> <C>
MUNICIPAL INVESTMENTS--5.3%
County of Broward
(Florida)
Professional
Sports Facilities
$ 17,500 5.768% 06/02/97 $ 17,500
City of
Minneapolis-St.
Paul (Minnesota)
Metro Airport GO
Bond
20,000 7.680 06/02/97 20,000
City of Seattle
(Washington) Ltd.
GO Bond, Series: C
46,525 5.650 06/04/97 46,525
Health Insurance
Plan of Greater
New York
13,500 5.600 06/04/97 13,500
Hydro-Quebec Corp.
Monthly Put TOB
FRN
9,000 5.538 06/02/97 9,000
New Jersey
Economic
Development
Authority
25,000 5.688 06/03/97 25,000
Oakland-Alameda
County Coliseum
Authority, 1995
Series: B-2
19,200 5.750 07/10/97 19,200
Oakland-Alameda
County Coliseum
Authority, 1996
Series: A-2
10,000 5.750 07/10/97 10,000
State of Texas-
Veterans Land Bond
14,255 5.788 06/02/97 14,255
State of Virginia
HDA Multi-Family
Housing Bond
12,745 5.788 06/02/97 12,745
- ----------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 187,725
- ----------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS--1.2%
U.S. TREASURY BILLS
$ 30,000 5.600% 03/05/98 $ 28,777
5,000 5.692 03/05/98 4,793
10,000 5.815 03/05/98 9,577
- ----------------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS $ 43,147
- ----------------------------------------------
REPURCHASE AGREEMENTS--7.0%
REPURCHASE AGREEMENT--5.6%
SBC Capital
Markets, Dated
05/30/97,
Repurchase Price
$200,091
(U.S. Government
Securities Colld.)
$200,000 5.470% 06/02/97 $ 200,000
JOINT REPURCHASE AGREEMENT--
1.4%
Merrill Lynch
Government
Securities, Inc.,
Dated 08/12/96
(U.S. Government
Securities Colld.)
Accrued Interest
$137
50,000 5.585 06/02/97 50,000
- ----------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 250,000
- ----------------------------------------------
TOTAL INVESTMENTS--102.8% $3,668,555
- ----------------------------------------------
Liabilities, less other
assets--(2.8)% (101,188)
- ----------------------------------------------
NET ASSETS--100.0% $3,567,367
- ----------------------------------------------
- ----------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------
GOVERNMENT PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--70.1%
FEDERAL HOME LOAN BANK DISCOUNT NOTES--
4.3%
$12,340 5.407% 06/11/97 $ 12,322
16,070 5.556 06/13/97 16,041
9,390 5.633 08/13/97 9,285
10,000 5.297 08/26/97 9,877
----------
47,525
----------
FEDERAL HOME LOAN BANK MEDIUM TERM NOTE--
1.4%
15,915 5.800 08/12/97 15,917
----------
FEDERAL HOME LOAN MORTGAGE COR-
PORATION
DISCOUNT NOTES--22.3%
50,000 5.368 06/05/97 49,971
10,000 5.348 06/06/97 9,993
35,000 5.418 06/13/97 34,937
13,000 5.608 07/03/97 12,936
40,000 5.599 07/11/97 39,755
20,800 5.582 07/23/97 20,634
50,000 5.614 08/01/97 49,531
30,863 5.620 08/05/97 30,554
----------
248,311
----------
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION
DISCOUNT NOTES--21.9%
30,000 5.353 06/05/97 29,982
60,000 5.433 06/27/97 59,765
20,000 5.614 07/02/97 19,905
12,005 5.604 07/11/97 11,931
40,000 5.413 07/30/97 39,654
5,000 5.648 08/18/97 4,940
25,000 5.288 08/26/97 24,692
55,000 5.840 10/20/97 53,776
----------
244,645
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN--1.8%
20,000 5.527 02/13/98 19,992
----------
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION
MEDIUM TERM NOTES--5.4%
20,000 5.860 07/03/97 20,004
15,000 5.520 10/28/97 14,998
25,000 5.890 05/21/98 24,979
----------
59,981
----------
OVERSEAS PRIVATE INVESTMENT
CORP. FRN--4.1%
45,800 5.480 06/04/97 45,800
----------
STUDENT LOAN MARKETING ASSOCIATION DIS-
COUNT NOTE--1.4%
15,000 5.509 06/06/97 14,989
----------
STUDENT LOAN MARKETING ASSOCIATION FRN--
4.0%
30,000 5.540 06/03/97 29,998
15,000 5.500 06/03/97 14,997
----------
44,995
----------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------
<C> <C> <S> <C>
STUDENT LOAN MARKETING
ASSOCIATION MEDIUM TERM
NOTE--1.9%
$ 21,710 5.965% 09/12/97 $ 21,720
TENNESSEE VALLEY AUTHORITY DISCOUNT
NOTES--1.6%
17,525 5.606 08/12/97 17,331
- ------------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES $ 781,206
- ------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS--3.9%
U.S. TREASURY BILLS--3.0%
$ 20,000 5.533% 02/05/98 $ 19,275
15,000 5.725 03/05/98 14,375
----------
33,650
----------
U.S. TREASURY NOTE--0.9%
10,000 7.250 02/15/98 10,114
- ------------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS $ 43,764
- ------------------------------------------
REPURCHASE AGREEMENTS--29.0%
REPURCHASE AGREEMENTS--24.5%
J.P. Morgan
Securities, Inc.,
Dated 5/30/97,
Repurchase Price
$23,431
(U.S. Government
Securities Colld.)
$ 23,420 5.450% 06/02/97 $ 23,420
SBC Capital
Markets, Dated
5/30/97,
Repurchase Price
$250,114
(U.S. Government
Securities Colld.)
250,000 5.470 06/02/97 250,000
----------
273,420
----------
JOINT REPURCHASE AGREEMENT--
4.5%
UBS Securities,
Inc., Dated
08/26/96
(U.S. Government
Securities Colld.)
Accrued Interest
$142
50,000 5.585 09/02/97 50,000
- ------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 323,420
- ------------------------------------------
TOTAL INVESTMENTS--103.0% $1,148,390
- ------------------------------------------
Liabilities, less other
assets--(3.0)% (33,017)
- ------------------------------------------
NET ASSETS--100.0% $1,115,373
- ------------------------------------------
- ------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
Description
- -------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES--92.5%
FEDERAL FARM CREDIT BANK--
0.8%
$ 7,500 5.850% 08/01/97 $ 7,501
---------
FEDERAL FARM CREDIT BANK DISCOUNT
NOTES--6.3%
9,380 5.456 06/16/97 9,359
24,000 5.580 06/16/97 23,945
7,000 5.629 06/30/97 6,969
6,000 5.588 08/04/97 5,941
5,000 5.375 08/14/97 4,947
10,000 5.403 09/25/97 9,833
---------
60,994
---------
FEDERAL HOME LOAN BANK DISCOUNT
NOTES--50.5%
4,830 5.402 06/02/97 4,829
70,000 5.553 06/02/97 69,989
25,000 5.360 06/04/97 24,989
50,000 5.437 06/04/97 49,977
55,000 5.447 06/05/97 54,967
37,355 5.417 06/12/97 37,294
10,000 5.556 06/13/97 9,982
32,000 5.449 06/18/97 31,918
50,000 5.403 06/19/97 49,866
6,500 5.480 06/19/97 6,482
25,000 5.501 07/02/97 24,882
30,000 5.582 07/24/97 29,757
6,000 5.583 07/24/97 5,951
10,000 5.588 07/31/97 9,908
20,000 5.620 08/14/97 19,772
2,500 5.297 08/26/97 2,469
25,145 5.843 10/23/97 24,574
8,710 5.757 10/27/97 8,509
17,000 5.758 11/13/97 16,564
4,500 5.502 02/02/98 4,339
---------
487,018
---------
FEDERAL HOME LOAN BANK
FRN--1.0%
10,000 5.800 08/12/97 10,001
---------
STUDENT LOAN MARKETING ASSOCIATION
DISCOUNT NOTES--13.4%
40,000 5.320 06/03/97 39,988
30,000 5.210 06/12/97 29,950
50,000 5.484 06/30/97 49,781
10,000 5.521 02/25/98 9,996
---------
129,715
---------
STUDENT LOAN MARKETING ASSOCIATION
FRN--5.0%
15,000 5.870 06/30/97 15,001
20,000 5.540 08/06/97 19,999
13,000 5.500 09/03/97 12,998
---------
47,998
---------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Amortized
Amount/ Interest Maturity Cost/
Shares Rate Date Value
- -------------------------------------------
<C> <S> <C> <C>
TENNESSEE VALLEY AUTHORITY DISCOUNT
NOTES--15.5%
$15,000 5.497% 06/03/97 $ 14,995
15,000 5.453 06/05/97 14,991
19,600 5.476 06/06/97 19,585
12,000 5.539 06/12/97 11,980
10,000 5.454 06/13/97 9,982
20,000 5.513 06/19/97 19,945
7,045 5.452 06/20/97 7,025
16,100 5.417 06/25/97 16,042
10,000 5.537 07/02/97 9,953
8,000 5.570 07/22/97 7,938
7,000 5.606 08/12/97 6,923
10,000 5.609 08/15/97 9,885
--------
149,244
- -------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $892,471
- -------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
3.0%
U.S. TREASURY BILLS
$ 100 5.384% 11/13/97 $ 97
20,000 5.533 02/05/98 19,275
10,000 5.600 03/05/98 9,592
- -------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS $ 28,964
- -------------------------------------------
OTHER INVESTMENT--3.1%
Dreyfus Treasury Prime Cash
Management,
30,255 Class A $ 30,255
- -------------------------------------------
TOTAL OTHER INVESTMENT $ 30,255
- -------------------------------------------
TOTAL INVESTMENTS--98.6% $951,690
- -------------------------------------------
Other assets, less liabili-
ties--1.4% 12,950
- -------------------------------------------
NET ASSETS--100.0% $964,640
- -------------------------------------------
- -------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--99.0%
ALABAMA--0.6%
City of Greenville IDR VRDN,
Series: 1992, Allied-Signal
Project (FMC Corp. Gtd.)
<S> <C> <C> <C>
$ 1,350 4.050% 06/06/97 $ 1,350
Town of Parrish PCR VRDN,
Series: 1994 A, Alabama Power
Co. Project (Alabama Power Co.
Gtd.)
2,650 4.000 06/02/97 2,650
-------
4,000
-------
ALASKA--0.6%
Alaska Housing Finance Corp.
VRDN, Series: 1994, Merrill P-
Floats, PT-37 (FNMA Securities
Colld.)
3,900 3.900 06/06/97 3,900
-------
ARIZONA--0.7%
County of Maricopa PCR VRDN,
Series: A, El Paso Electric
Project (Westpac Banking Corp.
LOC)
5,000 4.050 06/06/97 5,000
-------
ARKANSAS--0.2%
County of Jefferson PCR Bond,
Arkansas Electric Coop Corp.
Project-D (National Rural
Utility Coop Finance Co. Gtd.)
565 3.650 09/01/97 565
560 3.850 03/01/98 560
-------
1,125
-------
CALIFORNIA--4.2%
City of San Marcos Public
Facilities Authority VRDN,
Series: BTP-188, Civic Center
Project (U.S. Government
Securities Colld.)
7,961 3.918 03/30/98 7,961
City of Santa Rosa High School
District TRAN, Series:
1996-1997
3,000 4.500 07/03/97 3,001
County of Irvine Ranch Water
District VRDN, Series: 1993 B,
Districts 2, 102, 103, & 206
(Morgan Guaranty Trust Co. LOC)
9,600 3.800 06/02/97 9,600
County of Los Angeles Convention
& Exhibition Center VRDN,
Series: 1993, PA-88 Merrill P-
Floats (MBIA Insured)
2,700 4.000 06/06/97 2,700
County of Sacramento Multifamily
Housing Revenue VRDN, Series:
1985 C (Dai-Ichi Kangyo Bank
LOC)
200 3.950 06/06/97 200
State of California RAN, Series:
B
5,200 3.691 06/02/97 5,200
-------
28,662
-------
COLORADO--1.6%
Broomfield IDR VRDN, Series:
1984, Buckeye Investment
Project (Bank of America NT &
SA LOC)
1,400 3.900 06/06/97 1,400
City and County of Denver
Transportation VRDN, Series:
1991 B (Sanwa Bank LOC)
8,000 4.150 06/06/97 8,000
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Colorado Health Facilities VRDN,
Series: 1992 A Sisters of
Charity Project (Toronto
Dominion Bank LOC)
<S> <C> <C> <C>
$ 1,900 3.850% 06/06/97 $ 1,900
-------
11,300
-------
DISTRICT OF COLUMBIA--1.3%
District of Columbia VRDN,
Columbia Hospital for Women
Project (Bank of Tokyo-
Mitsubishi LOC)
8,900 4.050 06/06/97 8,900
-------
FLORIDA--4.8%
County of Broward Housing
Finance Authority VRDN,
Sanctuary Park Apartments
Multifamily Project (PNC Bank
LOC)
1,400 3.950 06/06/97 1,400
County of Dade School District
GO VRDN, Series: 1994, BTP-66
(MBIA Insured)
5,535 4.050 06/06/97 5,535
County of Orange Housing Finance
Authority VRDN, Citicorp Eagle
Trust Series, Series: 1987 A
(GNMA Securities Colld.)
5,400 4.066 06/06/97 5,400
Florida State Board of Education
Capital Outlay VRDN, Series:
1990, BTP-52 ADP Class B
5,000 4.050 06/06/97 5,000
Florida State Board of Education
VRDN, Series: 1993 E
15,500 4.060 06/06/97 15,500
-------
32,835
-------
GEORGIA--5.9%
County of Burke Development
Authority PCR VRDN, Georgia
Power Co., Plant Vogtle Project
2,850 4.150 06/02/97 2,850
County of DeKalb Development
Authority PCR VRDN, Series:
1987, General Motors Project
(General Motors Corp. Gtd.)
2,000 4.000 06/06/97 2,000
County of Elbvert Development
Authority IDR VRDN, Series:
1992, Allied-Signal Project
(FMC Corp. Gtd.)
2,430 4.050 06/06/97 2,430
County of Floyd IDR VRDN,
Marglens Industries Inc.
Project (Sun Trust Bank Georgia
Gtd.)
2,500 4.000 06/06/97 2,500
County of Fulton Development
Authority IDR VRDN, General
Motors Corp.
2,900 4.000 06/06/97 2,900
County of Fulton Resident
Elderly Authority VRDN, St.
Anne's Terrace Project
(NationsBank South NA LOC)
2,600 3.950 06/06/97 2,600
County of Gwinnett Development
Authority VRDN, Wesleyan School
Project (Sun Trust Bank Georgia
LOC)
2,000 3.950 06/06/97 2,000
County of Monroe Development
Authority PCR VRDN, Series:
1994, Gulf Power Co. Scherer
Plant Project
1,200 4.150 06/02/97 1,200
Metro Atlanta Rapid Transit
Authority VRDN, Series: A, BTP-
58 (AMBAC Insured)
5,965 4.050 06/06/97 5,965
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
State of Georgia GO VRDN, Series: 1993 A164F, BTP-82A
<S> <C> <C> <C>
$ 9,900 3.800% 01/14/98 $ 9,900
State of Georgia GO VRDN, Series: 1994 D, BTP-100
6,035 3.800 01/14/98 6,035
-------
40,380
-------
IDAHO--0.2%
Idaho Health Facilities
Authority VRDN, Series: 1995,
St. Luke's Medical Center
Project (Credit Suisse First
Boston LOC)
1,200 4.100 06/02/97 1,200
-------
ILLINOIS--8.2%
City of Arlington Heights
Multifamily Housing VRDN,
Series: 1997, Dunton Tower
Apartments Project (Heller
Financial LOC)
2,820 4.500 06/06/97 2,820
City of Chicago Board of
Education VRDN, BTP-239,
(AMBAC Insured)
9,320 4.150 04/08/98 9,320
City of Chicago IDR VRDN,
Series: 1996 A, Guernsey Bel,
Inc. Project (Harris Trust and
Savings Bank LOC)
1,135 3.900 06/06/97 1,135
City of Naperville IDR VRDN,
General Motors Project
(General Motors Corp. Gtd.)
1,480 4.000 06/06/97 1,480
City of South Barrington GO
VRDN, Series: 1997, (Harris
Trust and Savings Bank LOC)
1,500 3.900 06/06/97 1,500
Illinois Development Finance
Authority PCR VRDN, Iowa-
Illinois Gas & Electric Co.
Project (Iowa-Illinois Gas &
Electric Co. Gtd.)
3,200 3.950 06/06/97 3,200
Illinois Educational Facilities
Authority VRDN, National
College of Education Project
(Harris Trust and Savings Bank
LOC)
2,300 3.900 06/06/97 2,300
Illinois Health Facilities
Authority VRDN, Series: 1993,
Resurrection Health Care
System
5,000 4.000 06/02/97 5,000
Illinois Health Facilities
Authority VRDN, Series: 1995,
Healthcor Project (Fuji Bank
LOC)
5,950 4.400 06/06/97 5,950
Illinois Health Facilities
Authority VRDN, Series: 1996,
Park Plaza Retirement Center
Project (LaSalle National Bank
LOC)
2,700 3.900 06/06/97 2,700
Illinois Housing Development Authority TOB, Series: 1987 B
4,425 3.700 08/01/97 4,425
Illinois Housing Development Authority TOB, Series: 1987 C
5,990 3.700 08/01/97 5,990
Illinois Metropolitan Pier and
Exposition Authority Dedicated
Sales Tax Revenue, BTP-230 A
(U.S. Government Securities
Colld.)
10,000 3.820 01/28/98 10,000
-------
55,820
-------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
INDIANA--2.4%
City of Hammond Local Public
Improvement Bond, Series: A-2,
Advanced Funding Program
<S> <C> <C> <C>
$ 5,000 4.200% 01/08/98 $ 5,015
City of Terre Haute IDR VRDN,
Series: 1985, First Financial
Corp. Project (First National
Bank of Chicago LOC)
2,500 3.900 06/06/97 2,500
Indiana Health Facilities
Authority VRDN, Series: 1996 B
& C, Clarian Health Partners,
Inc. Project
7,100 3.900 06/06/97 7,100
State of Indiana Development
Finance Authority VRDN,
Series: 1996, Indiana
Historical Society, Inc.
Project (NBD Bank LOC)
1,800 3.900 06/06/97 1,800
-------
16,415
-------
IOWA--0.9%
Iowa Finance Authority Single
Family Mortgage Revenue VRDN,
Series: 1997 A (GNMA
Securities Colld.)
6,085 3.900 06/02/97 6,085
-------
KANSAS--1.4%
City of Lawrence GO, Series: 1996 C
9,820 4.000 10/01/97 9,820
-------
KENTUCKY--1.0%
City of Mayfield Lease Revenue
VRDN, Series: 1996, Kentucky
League of Cities Pooled
Project (PNC Bank LOC)
1,700 4.150 06/06/97 1,700
County of Clark PCR Bond,
Series: J-2, East Kentucky
Power Project (National Rural
Utility Coop Finance Co. Gtd.)
5,000 3.750 10/15/97 5,000
-------
6,700
-------
LOUISIANA--4.0%
Greater Baton Rouge Port
Commission PCR, Dow Chemical
Co. Project (Dow Chemical Co.
Gtd.)
5,025 3.750 12/15/97 5,025
Parish of Caddo IDR VRDN,
General Motors Corp. Project
(General Motors Corp. Gtd.)
3,800 4.000 06/06/97 3,800
Parish of Desoto PCR VRDN,
Series: 1996 A, Central
Louisiana Electric Co. Project
(Swiss Bank Corp. LOC)
5,000 3.750 06/06/97 5,000
Parish of West Baton Rouge
District #3 PCR CP, Dow
Chemical Project (Dow Chemical
Gtd.)
9,950 3.700 07/07/97 9,950
Parish of West Feliciana PCR
IDR VRDN, Series: 1985 D, Gulf
States Utilities Project
(Canadian Imperial Bank of
Commerce LOC)
3,300 4.050 06/02/97 3,300
-------
27,075
-------
MARYLAND--2.7%
City of Baltimore IDA VRDN,
Series: 1986, Capital
Acquisition Program (Dai-Ichi
Kangyo Bank LOC)
7,300 4.050 06/06/97 7,300
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
<S> <C> <C> <C>
MARYLAND--Continued
County of Anne Arundel PCR Bond,
Baltimore Gas and Electric
Project (Baltimore Gas &
Electric Gtd.)
$ 2,685 3.950% 07/01/97 $ 2,685
Maryland State Community
Development Administration
Series: 1993, PT-12, Merrill P-
Floats (Maryland Community
Development Authority)
4,499 3.900 06/02/97 4,499
Maryland State Health & Higher
Education Facilities Authority
Hospital VRDN, Series: A, Helix
Health, Inc. (NationsBank NA
LOC)
1,660 3.950 06/06/97 1,660
Maryland State Economic
Development Authority VRDN,
Series: 1995 (NationsBank NA
LOC)
2,400 3.950 06/06/97 2,400
--------
18,544
--------
MASSACHUSETTS--0.8%
Massachusetts Municipal Electric
Co. VRDN, Series: 1994 B, BTP-
67 (MBIA Insured)
5,760 4.050 06/06/97 5,760
--------
MICHIGAN--1.2%
Michigan State Strategic Fund
IDR VRDN, Allied-Signal Project
(FMC Corp. Gtd.)
6,700 4.000 06/06/97 6,700
Michigan State Strategic Fund PCR CP (Dow Chemical Gtd.)
1,500 3.800 08/06/97 1,500
--------
8,200
--------
MINNESOTA--0.3%
City of St. Paul Housing &
Redevelopment Authority VRDN,
Series: A, Science Museum of
Minnesota Project (First Bank
NA LOC)
2,400 3.950 06/06/97 2,400
--------
MISSOURI--4.0%
City of St. Louis TRAN, Series: 1996
5,000 4.750 06/30/97 5,002
County of Callaway IDA Health
System VRDN, Series: 1995
(NationsBank Tennessee LOC)
5,000 4.000 06/06/97 5,000
County of St. Louis IDA VRDN,
Merrill P-Floats, Series: PA-
120, South Point Apartments
Project (Rabobank Group LOC)
7,005 4.150 06/06/97 7,005
Missouri Higher Education
Facility Authority VRDN,
Series: 1990 A (National
Westminster Bank LOC)
5,900 3.950 06/06/97 5,900
Missouri Health & Education
Facility Authority VRDN,
Series: 1996 A, Bethesda
Barclay House Project
(Merchantile bank of St. Louis
NA LOC)
4,200 4.100 06/02/97 4,200
--------
27,107
--------
NEVADA--0.4%
County of Clark School District
GO VRDN, Citicorp Eagle Trust
Series: 962804 (FGIC Insured)
2,900 4.010 06/06/97 2,900
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------------------------------------------
Principal
Amount Rate Maturity Date Amortized Cost
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK--4.4%
City of New York GO RAN,
Series: B (Bank of Nova Scotia
LOC)
$10,000 4.500% 06/30/97 $ 10,005
City of New York GO, Series:
1992 A, Citicorp TOB (FSA Corp.
Insured)
10,100 3.550 08/15/97 10,100
City of New York Municipal Water
Finance Authority VRDN, Series:
1995 A1 (FGIC Insured)
2,400 4.200 06/02/97 2,400
City of New York Municipal Water
Finance Authority CP, Series: 5
(Landesbank Hessen Thuringen
Girozentrale LOC)
6,250 3.750 07/31/97 6,250
Marine Midland Premium Loan
Trust VRDN, COP Series: 1991 B
(Hong Kong & Shanghai Banking
Corp. LOC)
1,492 4.100 06/06/97 1,492
--------
30,247
--------
NORTH CAROLINA--6.0%
County of Buncombe PCR IDR VRDN,
Series: 1996, Cooper Industries
Project (Cooper Industries
Gtd.)
3,200 4.050 06/06/97 3,200
City of Persons Industrial
Facilities PCR VRDN, Series:
1992 A (Carolina Power & Light
Gtd.)
5,500 4.150 06/06/97 5,500
County of Wake Industrial
Pollution Finance Authority PCR
VRDN, Carolina Power & Light
Project (Sumitomo Bank Ltd.
LOC)
1,400 4.000 06/06/97 1,400
North Carolina Eastern Municipal
Power Agency CP, Series: 1988 B
(Morgan Guaranty Trust Co. LOC)
19,075 3.600 07/10/97 19,075
North Carolina Medical Care
Commission Hospital Revenue
VRDN, Pooled Equipment
Financing Project (MBIA
Insured)
6,200 3.950 06/06/97 6,200
North Carolina Medical Care
Commission Hospital Revenue
VRDN, Series: 1991 A, Pooled
Financing Project (NationsBank
NA LOC)
5,800 4.050 06/02/97 5,800
--------
41,175
--------
OHIO--4.0%
County of Mahoning Care Facility
IDR VRDN, Series: 1994,
Assumption Nursing Home Project
(PNC Bank LOC)
1,400 4.000 06/06/97 1,400
State of Ohio Air Quality
Development Authority, Series:
A, Pollution Control-Duquesne
Electric Project (Union Bank of
Switzerland LOC)
4,000 3.950 07/16/97 4,000
State of Ohio Air Quality
Development Authority VRDN,
Series: 1985 B, Cincinnati Gas
& Electric Co. Project (Morgan
Guaranty Trust Co. LOC)
1,800 4.200 06/02/97 1,800
State of Ohio Higher Education
Capital Facilities VRDN,
Series: 1990 A, BTP-29 (MBIA
Insured)
3,000 4.050 06/06/97 3,000
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
State of Ohio Higher Education
Capital Facilities VRDN,
Series: 1994 A, BTP-69 (AMBAC
Insured)
<S> <C> <C> <C>
$13,545 4.050% 06/06/97 $ 13,545
Red Roof Inns Mortgage Bond
Trust VRDN (National City Bank
LOC)
3,579 3.750 06/15/97 3,579
--------
27,324
--------
OKLAHOMA--4.5%
City of Tulsa Airports
Improvement VRDN, Series: B-2
(MBIA Insured)
10,945 4.010 06/06/97 10,945
State of Oklahoma Housing
Finance Authority VRDN, Series:
B, (AMT)
7,820 4.100 06/06/97 7,820
State of Oklahoma Water
Resources Board Revenue Bond,
Series: 1994 A, State Loan
Program
12,160 3.500 09/02/97 12,158
--------
30,923
--------
OREGON--1.2%
City of Medford Hospital
Facilities Authority VRDN,
Series: 1991, Rogue Valley
Project (Banque Paribas LOC)
8,300 4.100 06/06/97 8,300
--------
PENNSYLVANIA--9.3%
City of Philadelphia Hospital &
Higher Education Facilities
Authority VRDN, Series: 1996 A,
Children's Hospital Project
1,200 4.050 06/02/97 1,200
City of Philadelphia School
District TRAN
17,000 4.500 06/30/97 17,007
City of Philadelphia TRAN,
Series: A
18,000 4.500 06/06/97 18,008
City of Quakertown Hospital
Authority VRDN (PNC Bank LOC)
1,800 3.900 06/30/97 1,800
County of Allegheny Hospital
Development Authority VRDN,
Series: B-1, Presbyterian
University Hospital Project
(PNC Bank LOC)
800 3.900 06/06/97 800
County of Allegheny Industrial
Development Authority VRDN,
Series: 1991, Eye & Ear
Properities Corp. Project (PNC
Bank LOC)
3,900 3.900 06/06/97 3,900
County of Luzerne TRAN
4,500 3.840 12/31/97 4,502
County of Warren Hospital
Authority VRDN, Series: 1994 B
(PNC Bank LOC)
1,000 3.950 06/06/97 1,000
Delaware Valley Regional Finance
Authority Pooled VRDN, Series:
1985 A (Midland Bank PLC LOC)
5,000 3.900 06/06/97 5,000
Delaware Valley Regional Finance
Authority Pooled VRDN, Series:
1985 A-D (Midland Bank PLC LOC)
6,300 3.900 06/06/97 6,300
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Delaware Valley Regional Finance
Authority Pooled VRDN, Series:
1985 C (Midland Bank PLC LOC)
<S> <C> <C> <C>
$ 2,400 3.900% 06/06/97 $ 2,400
Delaware Valley Regional Finance
Authority Pooled VRDN, Series:
1985 D (Midland Bank PLC LOC)
1,900 3.900 06/06/97 1,900
--------
63,817
--------
RHODE ISLAND--0.4%
State of Rhode Island TAN, Series: 1996 A
2,500 4.500 06/30/97 2,501
--------
SOUTH CAROLINA--0.9%
County of Berkeley PCR VRDN,
Series: 1996, Alumax Project
(Royal Bank of Canada LOC)
1,300 3.900 06/06/97 1,300
County of Lexington IDR VRDN,
Series: 1992, Allied-Signal
Project (FMC Corp. Gtd.)
700 4.050 06/06/97 700
County of Lexington Pollution
Control Finance Authority IDR
VRDN, Series: 1992 A, Allied-
Signal Project (FMC Corp. Gtd.)
1,880 4.050 06/06/97 1,880
University of South Carolina
Athletics Facility Revenue BAN
2,550 4.000 02/26/98 2,557
--------
6,437
--------
SOUTH DAKOTA--0.4%
State of South Dakota HDA
Homeowner Mortgage VRDN,
Merrill P-Floats, Series: PT-
73-A
2,500 4.000 06/06/97 2,500
--------
TENNESSEE--3.1%
City of Greenville IDR VRDN,
Series: 1993 Pet, Inc. Project
(Credit Suisse First Boston
LOC)
3,000 3.950 06/06/97 3,000
City of Memphis GO VRDN, Series:
1996 Soc Gen, Series: SGB-23
5,000 4.000 06/06/97 5,000
County of Chattanooga-Hamilton
Hospital Authority VRDN,
Series: 1987, Erlanger Medical
Center Project (Erlanger
Medical Center Gtd.)
5,300 4.050 06/02/97 5,300
County of Hamilton IDR VRDN,
Series: 1995, Tennessee
Aquarium Project (NationsBank
Tennessee LOC)
3,650 3.950 06/06/97 3,650
County of Shelby GO, Series: B,
BTP-216
4,000 3.700 11/06/97 4,000
--------
20,950
--------
TEXAS--7.2%
City of Austin School District
Building & Refunding VRDN,
Series: 1996 ML SG, Series: SG-
68 (Permanent School Fund of
Texas Gtd.)
7,300 4.100 06/06/97 7,300
City of Dallas-Ft. Worth Airport
Revenue Refunding VRDN, Series:
1995 SG, Series: SGB-5 (FGIC
Insured)
6,600 4.000 06/06/97 6,600
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
<S> <C> <C> <C>
TEXAS--Continued
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 Mansfield Independent
School District, Series: 1996,
School Building (Permanent
School Fund of Texas Gtd.)
7,500 4.140 07/01/97 7,501
City of San Antonio Electric &
Gas System Revenue Bond, ML SG,
Series: SG-105
10,000 3.850 08/07/97 10,000
County of Bexar Multifamily
Housing Finance Authority VRDN,
Series: 1988 A, Creighton's
Mill Development Project (New
England Mutual Gtd.)
2,600 4.100 06/06/97 2,600
County of Harris Toll Road
Unlimited Tax VRDN, Series:
1994 A, Citicorp Eagle Trust
Series: 954302
5,500 4.060 06/06/97 5,500
---------
49,501
---------
VIRGINIA--4.8%
City of Norfolk GO VRDN,
Citicorp Eagle Trust Series:
944601
19,200 4.060 06/06/97 19,200
City of Richmond Redevelopment &
Housing Authority VRDN, Series:
1995 A, Old Manchester Project
(Wachovia Bank of North
Carolina NA LOC)
2,000 4.100 06/06/97 2,000
State of Virginia GO VRDN,
Series: 1994, Citicorp Eagle
Trust Series: 954601
7,000 4.060 06/06/97 7,000
Town of Louisa PCR CP, Series:
1987 (Virginia Electric Power
Co. Gtd.)
4,700 3.700 07/25/97 4,700
---------
32,900
---------
WASHINGTON--2.3%
City of Kent Economic
Development Corp. IDR VRDN,
Associated Grocers Project
(Seattle-First National Bank
LOC)
3,800 4.800 06/06/97 3,800
Washington Public Power Supply
System Revenue Bond, Series:
1996 A, BTP-206 (AMBAC Insured)
4,950 4.000 08/21/97 4,950
Washington State GO VRDN, Smith-
Barney Soc Gen., Series: 1993
B,
6,950 4.000 06/06/97 6,950
---------
15,700
---------
WISCONSIN--1.5%
City of Madison GO, Series: A
2,200 5.000 05/01/98 2,220
City of Milwaukee RAN, Series: A
5,600 4.250 02/19/98 5,624
Wisconsin Housing & Economic
Development Authority,
Home Ownership Revenue Bond,
Series: A
2,200 3.600 09/01/97 2,200
---------
10,044
---------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal
Amount/ Maturity Amortized
Shares Rate Date Cost/Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WYOMING--0.3%
City of Green River PCR VRDN
Allied Signal Project (FMC
Corp. Gtd.)
$ 2,225 4.050% 06/06/97 $ 2,225
---------
OTHER MUNICIPAL INVESTMENTS--1.3%
IBM Tax-Exempt Grantor Trust
Asset-Back Lease VRDN,
Series: IBM 1996 A, Merrill P-
Floats (Credit Suisse Gtd.)
1,210 4.100 06/06/97 7,210
Pooled Puttable Floating Option
VRDN,
Series: PPT2 (Alaska Housing
Finance Corp. Insured)
1,590 4.050 06/06/97 1,590
---------
8,800
- -----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $677,472
- -----------------------------------------------------------------------------------------------------
OTHER INVESTMENTS--1.8%
AIM Tax Free Money Market Fund
1,106 -- -- $ 1,106
Dreyfus Tax Exempt Cash Management Fund
400 -- -- 400
Federated Tax-Free Trust Money
Market Fund #15
9,837 -- -- 9,837
Federated Tax-Free Trust Money
Market Fund #73
820 -- -- 820
Provident Municipal Fund
151 -- -- 151
- ----------------------------------------------------------------------------------------------------
TOTAL OTHER INVESTMENTS $ 12,314
- ----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.8% $689,786
- ----------------------------------------------------------------------------------------------------
Liabilities, less other assets--(0.8)% (5,457)
- ----------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $684,329
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1997
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $3,418,555 $ 824,970 $951,690 $689,786
Repurchase agreements, at cost 250,000 323,420 -- --
Cash -- 1 1 --
Receivables:
Interest 13,877 2,708 1,407 7,299
Fund units sold 186,714 46,454 39,515 17,360
Investment securities sold -- -- -- 3,000
Administrator -- 30 21 23
Other assets 40 20 13 17
- -------------------------------------------------------------------------------
TOTAL ASSETS 3,869,186 1,197,603 992,647 717,485
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Investment securities purchased -- -- -- 6,900
Fund units redeemed 284,093 75,672 23,550 23,798
Distributions to unitholders 16,490 6,105 4,260 2,209
Accrued expenses:
Advisory fees 771 297 80 150
Administration fees 308 119 80 60
Custodian fees 55 1 5 11
Transfer agent fees 11 4 4 2
Other liabilities 91 32 28 26
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 301,819 82,230 28,007 33,156
- -------------------------------------------------------------------------------
NET ASSETS $3,567,367 $1,115,373 $964,640 $684,329
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $3,568,919 $1,115,679 $964,703 $684,161
Accumulated net realized gains
(losses) on investment transac-
tions (1,552) (306) (63) 168
- -------------------------------------------------------------------------------
NET ASSETS $3,567,367 $1,115,373 $964,640 $684,329
- -------------------------------------------------------------------------------
Total units outstanding (no par
value), unlimited units autho-
rized 3,568,919 1,115,679 964,703 684,161
- -------------------------------------------------------------------------------
Net asset value, offering and
redemption price per unit $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $95,968 $39,254 $24,014 $13,405
- ----------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 4,309 1,799 1,108 909
Administration fees 1,229 631 473 420
Custodian fees 198 71 49 49
Professional fees 71 26 20 29
Transfer agent fees 67 18 15 10
Registration fees 59 42 22 12
Trustee fees and expenses 39 15 11 11
Other 39 16 14 10
- ----------------------------------------------------------------------------
TOTAL EXPENSES 6,011 2,618 1,712 1,450
Less: Voluntary waivers of in-
vestment advisory fees -- -- (665) --
Less: Expenses reimbursable by
Administrator -- (99) (162) (179)
- ----------------------------------------------------------------------------
Net expenses 6,011 2,519 885 1,271
- ----------------------------------------------------------------------------
NET INVESTMENT INCOME 89,957 36,735 23,129 12,134
Net realized gains (losses) on
investment transactions 22 (1) 13 27
- ----------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $89,979 $36,734 $23,142 $12,161
- ----------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1997 (Unaudited) and the Year Ended November
30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets
Portfolio Government Portfolio
------------------------ -----------------------
1997 1996 1997 1996
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment income $89,957 $162,308 $36,735 $53,208
Net realized gains
(losses) on investment
transactions 22 327 (1) 133
- ------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 89,979 162,635 36,734 53,341
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment income (89,957) (162,308) (36,735) (53,208)
- ------------------------------------------------------------------------------
Total distributions to
unitholders (89,957) (162,308) (36,735) (53,208)
- ------------------------------------------------------------------------------
UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from the sale of
units 25,454,165 42,285,142 8,566,047 12,329,359
Reinvested distributions 478 860 78 --
Cost of units redeemed (25,066,827) (41,717,147) (8,719,266) (11,911,641)
- ------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
unit transactions 387,816 568,855 (153,141) 417,718
- ------------------------------------------------------------------------------
Net increase (decrease) 387,838 569,182 (153,142) 417,851
Net assets--beginning of
period 3,179,529 2,610,347 1,268,515 850,664
- ------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $3,567,367 $3,179,529 $1,115,373 $1,268,515
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS--CONTINUED
For the Six Months Ended May 31, 1997 (Unaudited) and the Year Ended November
30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Government Select
Portfolio Tax-Exempt Portfolio
------------------------ ------------------------
1997 1996 1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM:
OPERATIONS:
Net investment income $23,129 $40,087 $12,134 $25,061
Net realized gains on
investment transactions 13 97 27 102
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 23,142 40,184 12,161 25,163
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment income (23,129) (40,087) (12,134) (25,061)
- -------------------------------------------------------------------------------
Total distributions to
unitholders (23,129) (40,087) (12,134) (25,061)
- -------------------------------------------------------------------------------
UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from the sale of
units 2,461,912 4,712,236 2,903,363 5,526,968
Reinvested distributions 2,161 963 62 126
Cost of units redeemed (2,335,795) (4,562,089) (2,857,630) (5,692,419)
- -------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
unit transactions 128,278 151,110 45,795 (165,325)
- -------------------------------------------------------------------------------
Net increase (decrease) 128,291 151,207 45,822 (165,223)
Net assets--beginning of
period 836,349 685,142 638,507 803,730
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $964,640 $836,349 $684,329 $638,507
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
DIVERSIFIED ASSETS PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.61% 5.30% 5.78%(b) 3.92% 3.00% 3.80% 6.19% 8.01% 8.98%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.35% 0.34% 0.34% 0.35% 0.34% 0.34% 0.35% 0.35% 0.37%
Expenses, before
waivers and re-
imbursements 0.35% 0.34% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36% 0.37%
Net investment
income, net of
waivers and
reimbursements 5.23% 5.18% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01% 8.98%
Net investment
income, before
waivers and
reimbursements 5.23% 5.18% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00% 8.98%
Net assets at end
of period (in
thousands) $3,567,367 $3,179,529 $2,610,347 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756 $1,871,713
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1988 1987
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.07 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.07 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.07) (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.07) (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 7.15% 6.30%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.39% 0.41%
Expenses, before
waivers and re-
imbursements 0.39% 0.41%
Net investment
income, net of
waivers and
reimbursements 7.15% 6.30%
Net investment
income, before
waivers and
reimbursements 7.15% 6.30%
Net assets at end
of period (in
thousands) $1,528,203 $1,533,941
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) 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 net asset value at the end of the period.
Total return is not annualized for periods less than one year.
(b) Total return for the year ended November 30, 1995 would have been 5.73%
absent the effect of a capital contribution equivalent to $.0005 per
share received from Northern Trust Corporation.
(c) Annualized for periods less than one year.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.54% 5.20% 5.64%(b) 3.78% 2.91% 3.91% 6.18% 7.89% 8.63% 6.83%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37% 0.50% 0.54%
Expenses, before
waivers and re-
imbursements 0.36% 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46% 0.50% 0.55%
Net investment
income, net of
waivers and
reimbursements 5.10% 5.08% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88% 8.63% 6.83%
Net investment
income, before
waivers and
reimbursements 5.09% 5.05% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79% 8.63% 6.82%
Net assets at end
of period (in
thousands) $1,115,373 $1,268,515 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720 $423,517 $335,301
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1987
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 6.15%
Ratio to average
net assets of
(c):
Expenses, net of
waivers and re-
imbursements 0.44%
Expenses, before
waivers and re-
imbursements 0.55%
Net investment
income, net of
waivers and
reimbursements 6.15%
Net investment
income, before
waivers and
reimbursements 6.04%
Net assets at end
of period (in
thousands) $218,530
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at net asset value at the end of the period.
Total return is not annualized for periods less than one year.
(b) Total return for the year ended November 30, 1995 would have been 5.53%
absent the effect of a capital contribution equivalent to $.0011 per
share received from Northern Trust Corporation.
(c) Annualized for periods less than one year.
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
GOVERNMENT SELECT PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990(a)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <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 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- -----------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- -----------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.03) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Total return (b) 2.60% 5.31% 5.82%(c) 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% 0.20%
Expenses, before waiv-
ers and reimbursements 0.39% 0.40% 0.41% 0.43% 0.49% 0.52% 0.60% 1.33%
Net investment income,
net of waivers and
reimbursements 5.22% 5.19% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and
reimbursements 5.03% 4.99% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
period (in thousands) $964,640 $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 net asset value at the end of the period.
Total return is not annualized for periods less than one year.
(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 one year.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
TAX-EXEMPT PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.02 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.02 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.02) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.02) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 1.66% 3.37% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04% 4.92%
Ratio to average
net assets of
(b):
Expenses, net of
waivers and re-
imbursements 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49% 0.48%
Expenses, before
waivers and re-
imbursements 0.40% 0.40% 0.41% 0.36% 0.38% 0.39% 0.40% 0.43% 0.49% 0.48%
Net investment
income, net of
waivers and
reimbursements 3.34% 3.32% 3.63% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03% 4.92%
Net investment
income, before
waivers and
reimbursements 3.29% 3.27% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03% 4.92%
Net assets at end
of period (in
thousands) $684,329 $638,507 $803,730 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215 $529,680
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1987
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PE-
RIOD $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.04
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.04
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.04)
- --------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.04)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 4.00%
Ratio to average
net assets of
(b):
Expenses, net of
waivers and re-
imbursements 0.45%
Expenses, before
waivers and re-
imbursements 0.46%
Net investment
income, net of
waivers and
reimbursements 4.00%
Net investment
income, before
waivers and
reimbursements 3.99%
Net assets at end
of period (in
thousands) $410,772
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) 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 net asset value at the end of the period.
Total return is not annualized for periods less than one year.
(b) Annualized for periods less than one year.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1997
(Unaudited)
1. ORGANIZATION
The Benchmark Funds (the "Trust") is a Massachusetts business trust registered
under the Investment Company Act of 1940 (as amended) as an open-end
management investment company. The Trust includes seventeen portfolios, each
with its own investment objective. The Northern Trust Company ("Northern")
acts as the Trust's investment adviser, transfer agent, and custodian.
Goldman, Sachs & Co. ("Goldman Sachs") acts as the Trust's administrator and
distributor. Presented herein are the financial statements of the money market
portfolios.
The Trust includes four diversified money market portfolios: Diversified
Assets Portfolio, Government Portfolio, Government Select Portfolio and Tax-
Exempt Portfolio (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
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.
(a) Investment Valuation
Investments are valued at amortized cost, which approximates market value.
Under the amortized cost method, investments purchased at a discount or
premium are valued by amortizing the difference between the original purchase
price and maturity value of the issue over the period to maturity.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
Each Portfolio may enter into joint repurchase agreements with non-affiliated
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 May 31, 1997, as reflected in the accompanying
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
capital 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
applicable laws or regulations. These capital loss carryforwards expire in
2002.
(e) Expenses
Expenses arising in connection with a specific Portfolio are allocated to that
Portfolio.
Expenses incurred which do not specifically relate to an individual Portfolio
are allocated among the Portfolios based on each Portfolio's relative 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
declared and distributed at least annually.
Distributions of net investment income with respect to a calendar month
(including with respect to units redeemed at any time during the month) are
made as soon as
23
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1997
(Unaudited)
practicable following the end of the month. Distributions are made by each
Portfolio to Northern in cash or automatically reinvested in additional units
of the Portfolio. Northern has undertaken to credit or arrange for the
crediting of such distributions to each unitholder's account with Northern,
its affiliates or its correspondents.
3. ADVISORY, TRANSFER AGENCY, CUSTODIAN AND OTHER AGREEMENTS
As compensation for the services rendered as investment adviser, including the
assumption by Northern of the expenses related thereto, Northern is entitled
to a fee, computed daily and payable monthly, at an annual rate of .25% of
each Portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10%
per annum. The effect of this waiver by Northern for the six months ended May
31, 1997 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.
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, at
an annual rate of .10% of each Portfolio's daily net assets.
In addition, if in any fiscal year, the sum of a Portfolio's expenses
(including the administration fee, but excluding the investment advisory fee
and transfer agency fee payable to Northern pursuant to its agreements with
the Trust and servicing fees, and extraordinary expenses (such as taxes,
interest, and indemnification expenses)), exceeds on an annualized basis .10%
of a Portfolio's average net assets, Goldman Sachs will reimburse each
Portfolio for the amount of the excess pursuant to the terms of the
administration agreement.
Prior to May 1, 1997 each Portfolio paid the Administrator a fee, computed
daily and payable monthly, based on the average net assets of each Portfolio
at the rates set forth below:
<TABLE>
<CAPTION>
Average net assets Rate
- ---------------------------------------
<S> <C>
For the first $100,000,000 .250%
For the next $200,000,000 .150
For the next $450,000,000 .075
For net assets over $750,000,000 .050
- ---------------------------------------
</TABLE>
Prior to May 1, 1997, Goldman Sachs voluntarily 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 six months ended May 31, 1997. Furthermore, Goldman
Sachs voluntarily agreed to reimburse each Portfolio for certain expenses in
the event that such expenses, as defined, exceed on an annualized basis .10%
of its average daily net assets.
Expenses reimbursed during the six months ended May 31, 1997 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
secured by pledged securities equal to or exceeding 120% of the outstanding
balance.
There were no borrowings under this agreement during the six months ended May
31, 1997.
24
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent and
Custodian
The Northern Trust Company
50 S. LaSalle Street
Chicago, IL 60675
Administrator and Distributor
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
Trustees
William H. Springer, Chairman
Edward J. Condon, Jr.
John W. English
James J. Gavin, Jr.
Frederick T. Kelsey
Richard P. Strubel
Officers
Paul W. Klug, Jr., President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Pauline Taylor, Vice President
Scott M. Gilman, Treasurer
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zardorak, Assistant Secretary
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Semi-Annual Report is authorized for distribution to prospective
investors only when preceded or accompanied by a Prospectus which contains
facts concerning the objectives and policies, management expenses and other
information.
<PAGE>
The
Benchmark Funds
Fixed Income
and
Equity
Portfolios
Semi-Annual Report
May 31, 1997
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Investment Outlook......................................................... 2
Fixed Income Portfolios
Statements of Investments
Bond Portfolio......................................................... 6
International Bond Portfolio........................................... 8
Short Duration Portfolio............................................... 9
Short-Intermediate Bond Portfolio...................................... 10
U.S. Government Securities Portfolio................................... 11
U.S. Treasury Index Portfolio.......................................... 12
Statements of Assets and Liabilities..................................... 13
Statements of Operations................................................. 14
Statements of Changes in Net Assets...................................... 15
Financial Highlights..................................................... 17
Equity Portfolios
Statements of Investments
Balanced Portfolio..................................................... 25
Diversified Growth Portfolio........................................... 27
Equity Index Portfolio................................................. 28
Focused Growth Portfolio............................................... 34
International Equity Index Portfolio................................... 36
International Growth Portfolio......................................... 46
Small Company Index Portfolio.......................................... 48
Statements of Assets and Liabilities..................................... 68
Statements of Operations................................................. 69
Statements of Changes in Net Assets...................................... 70
Financial Highlights..................................................... 72
Notes to the Financial Statements.......................................... 80
</TABLE>
- -------------------------------------------------------------------------------
OTHER INFORMATION
. The percentage shown for each investment category reflects the value of the
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 vary inversely with changes in
interest rates.
1
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK
WHAT HAS CHANGED
Financial markets moved higher during the period as the flow of economic data
remained market friendly. Weaker-than-expected retail sales and still-benign
inflation reports convinced investors that growth was slowing materially and
that price pressures did not warrant a tightening of Federal Reserve policy.
Bonds rallied on the good news and drew further support from the Treasury's
reduced financing calendar. Stocks also did well, moving further into record
territory amid increased volatility. Overseas, the financial outlook for
Europe remained ambiguous as European Monetary Union participants signed the
stability pact without reconciling France's desire to loosen the fiscal
discipline demanded by the Treaty.
ECONOMY: MODERATE GROWTH TO CONTINUE IN 1997
The pace of economic activity slowed significantly in the second quarter. Just
as first quarter final demand was artificially boosted by unseasonably good
weather, second quarter final demand has been artificially dampened by
unseasonably bad weather. But the underlying fundamentals for domestic demand,
plentiful employment opportunities, rising labor compensation, and increasing
household wealth remain favorable, suggesting that demand growth will pick up
in the second half of the year. Despite the softening in domestic demand,
foreign demand has been strong. The demand for U.S. exports has been
especially robust in Canada, Mexico, the United Kingdom, and Latin America.
After their surge in the first quarter, inventories continued to rise early in
the second three-month period of the year. Nevertheless, these inventories do
not yet appear to be increasing involuntarily as they continue to remain low
relative to sales. The labor markets remain tight as evidenced by an
unemployment rate below 5%. There continues to be anecdotal reports of
increased difficulties of finding qualified job applicants at current wage
rates. So far, the relative scarcity of labor has not translated into
appreciably higher core inflation. In recent months, however, there have been
indications of a marginal acceleration in the prices of consumer services. It
is in the service sector where the most vulnerability to higher inflation
lies. This sector's prices are less affected by the behavior of foreign
exchange rates because services are not traded internationally to the extent
that goods are. Because the service sector is more labor intensive than the
goods sector, tight labor market conditions could more quickly result in
higher prices for services. Despite signs of a slow drift up in service sector
inflation, consumer goods inflation shows no similar upward drift. Falling
energy prices have kept overall inflation well in check.
As long as the economy continues to grow near its potential, which is our
forecast, risks will remain on the side of a drift up in inflation. As a
result, the Federal Reserve will have a bias de facto if not de jure toward
tightening policy. To some degree, the Federal Reserve's latitude to act
preemptively against inflation may have been restricted by its past success in
holding down inflation. There is an evolving view that we are now in an
economic environment incapable of generating higher inflation. This belief is
especially popular in Congress currently, which opens up the Federal Reserve
to severe bipartisan criticism whenever it tightens. Also, with more people
coming off the welfare rolls because of system reforms, the Federal Reserve is
under political pressure to allow the economy to continue to grow relatively
rapidly in order to create employment opportunities for former welfare
recipients. But even if these pressures were to keep the Federal Reserve from
tightening as soon as it might otherwise do, the lack of inflation psychology
in the economy, the lack of big new government spending programs, continued
low inflation in the Group of Seven industrial nations, and a continued large
volume of goods being exported from China and former Iron Curtain countries
should still enable the Federal Reserve to remain in a fine-tuning tightening
mode rather than having to engage in tightening of a major countercyclical
nature.
THE BOND MARKET IS ATTRACTIVE
Rates fell moderately and the yield curve flattened during the period on
evidence of decelerating economic activity and still-benign inflation. Reduced
Treasury issuance, reflecting lowered funding needs due to the shrinking
federal deficit, helped to fuel the rally. By quarter's end, the market had
removed expectations of a rate hike at July's meeting of the Federal Open
Market Committee but continued to reflect one modest increase prior to years
end. The yield on the 10-year Treasury closed near its low for the quarter and
48 basis points below its mid-April highs.
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.
2
<PAGE>
- -------------------------------------------------------------------------------
We continue to view the bond market as attractive and believe that today's
generous real yields provide adequate compensation for the risk that rates may
move temporarily higher due to cyclical pressures beyond those already
factored into the market. On a secular basis, we believe that the growth and
inflation assumptions underpinning the balanced budget agreement will require
that our elected representatives adhere to policies supportive of low
inflationary growth. Additionally, the implicit benchmarking provided by the
budget agreement heightens our longer-term confidence that U.S. fiscal policy
will stay on track. In the shorter term, surging tax receipts spawned by the
vibrant U.S. economy and ongoing efforts to downsize government spending have
created a very favorable supply/demand situation in the Treasury market.
Although the deficit has declined from $255 billion in fiscal 1993 to near $70
billion in fiscal 1997, net interest payments on outstanding government debt
have risen from $200 billion to $250 billion. On a purely technical basis, the
pool of interest payment cash flows increasingly outstripping the supply of
new government bonds supports higher Treasury prices. In addition, sharp
reductions in the supply of Treasuries should lessen recurring concerns about
potential selling by foreign central banks and/or hedge funds. Importantly, we
believe that the sound fiscal policies manifested in these favorable technical
trends should, over time, help reduce the risk premium priced into today's
bond yields.
In contrast, the fiscal outlook for Europe remains ambiguous,
notwithstanding France's recent decision to sign off on the European Monetary
Union stability pact. Growing uncertainties regarding the viability of
European Monetary Union and the timing of fundamental structural reform in
Europe appear to be making U.S. financial markets look relatively attractive.
U.S. debt securities have benefited versus German debt instruments as the
yield spread on 10-year U.S. versus German bonds has contracted nearly 35
basis points in the past six weeks. Risks to European investments are unlikely
to dissipate in the near future and favor a further reduction in the U.S.
market's risk premium.
Our characterization of the U.S. bond market remains modestly positive. Real
yields remain attractive, and we expect the balanced budget agreement to
promote bond-friendly policies in the years to come. In addition, the
combination of sound fiscal policies and reduced Treasury issuance should help
to lower the risk premium incorporated in today's yield structure. We
recommend positioning bond portfolios neutral to slightly long relative to
their benchmarks.
EARNINGS AND INTEREST RATES SHOULD CONTINUE TO SUPPORT EQUITIES
The market roared ahead from the corrective lows of early April, setting
record after record along the way. It climbed 20% in the quarter and broadened
in May and June to include small- and middle-capitalization stocks even as the
technology sector faltered a bit. Profits remained healthy as fears of labor
cost increases proved unfounded. Every time interest rates fell, stocks seemed
to rally to new highs. Add the ample liquidity of the public to good earnings
and lower rates, and the rally was not surprising even though its intensity
was. Certainly the biggest market story of the past 18 months has been the
incessant rise in stocks fueled by good fundamentals and strong liquidity,
completely overwhelming valuation concerns. The fundamentals are strong but
stocks look expensive; the fundamentals are consistently winning this
conundrum.
Most foreigners mistrust the U.S. market despite the three-year uptrend
mainly because valuations are rich and they have been persistently
underweighted. Foreigners en masse so far have refused to jump in. Yet the
trend may yet prove irresistible, and, coupled with strong individual demand
against a backdrop of falling rates, stocks could move still higher. For
example, if rates were to fall below their old low of 5.75% in the next 18
months, stocks could easily sell at between 23 and 24 times S&P 500 earnings
of nearly $50.00 per share. That translates to nearly 1,200 on the S&P 500,
double last July's correction low. If earnings are sustained via productivity
gains from the aggressive spending on technology, considerable upside is still
possible. These indeed are some concepts and possibilities we will address in
next month's roundtable discussion.
Volatility has been on the rise, and, unfortunately for investors' sleep
patterns, it appears set to stay. While point moves seem exaggerated, in
percentage terms the change is more reasonable. However, with high valuations
and ample liquidity, investors' response to news seems to push stocks up or
down at a faster pace. We would not be surprised to see 300- to 500-point
swings occur in any one week, but as the last few years have shown, investors
remain prepared to buy each dip, halting more downside action. Inflation and
interest rates still look good and there is little else to attract the long-
term investment dollar. Cash flow supports and pushes shares higher, but more
volatile trading days
3
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
INVESTMENT OUTLOOK--CONTINUED
and weeks are the result. We suggest riding through the short-term bumps as
long as the journey seems destined to end at higher levels.
FOREIGN MARKETS ARE BEING DRIVEN BY PROFITS AND LIQUIDITY
The past quarter proved quite profitable for most foreign bourses as EAFE
(Europe, Australia, Far East) rose about 12% led by a rebound in markets such
as Japan (up 12%), Hong Kong (up 21%), the core deutschemark block countries
(up 15%), and Spain (up 24%). In addition, the U.S. dollar fell about 10%
versus the yen while staying steady versus most other currencies, enhancing
Japanese returns to U.S.-based investors. The trigger for the various rallies
was benign interest rates coupled with improving profit prospects. For the
first time in nearly three years, onsensus earnings for Japan and Europe
actually rose. Pacific Rim problems remained in force outside of Hong Kong,
plagued by profit downgrades, a questionable electronic cycle, and the still
weak yen compared with year-ago levels. In addition, the traditional growth
region of the world has faced stiff competition for the investment dollar as
both Eastern Europe and Latin America compete strongly for growth investors.
In fact, last quarter Latin America also performed strongly as the stock
markets of Mexico, Argentina, Peru, and Brazil all rose at least 17%. We are
just back from a trip to Europe, and the view from there towards both Europe
and the rest of the world is very interesting. Of course, European Monetary
Union, in the wake of the French elections in which the Socialists were
returned to power, dominated concerns. Nonetheless, an upbeat attitude toward
Europe is strongly in evidence. Cyclically things are improving as growth in
1997 and 1998 is expected to rise 2.5% to 3%, profit estimates are being
raised, and restructuring and shareholder value have reached near manic
proportions. The key will be who delivers on the promises, but evidence
abounds that it is happening on a company-by-company basis.
Longer term, the benefits of European Monetary Union will kick in and
further spur growth beyond 1999, in most people's view. The situation in the
short- and long-term looks good, but many leading strategists are a bit
concerned over valuation levels as prices seem to reflect a lot of good news.
However, the fundamentals look good, liquidity is ample, and restructuring is
just beginning. In view of the last seven years in the U.S., the optimists see
several years of good earnings in Europe, especially since spending on
technology (and thus the productivity benefits) still significantly lags the
U.S. Stocks are selling at mid to high teens price/earnings ratios, and with
most of the earnings cycle still ahead, Europe looks attractive even though a
correction or consolidation is expected after a 20% gain in 1996 and a 25% to
30% climb to date in 1997. As one observer put it, the stronger dollar is just
icing on the cake.
Most U.K. investors also are bullish on Japan and cautious on Asia,
following the relative earnings momentum. More than one person observed that
after badly missing the last 30-month rally in the U.S., global investors
cannot afford to miss a big rally in the second-biggest world market. Thus,
some of the bullishness is perhaps defensive, but nonetheless, Japan is viewed
positively with various objectives of 15% to 25% higher prices from present
levels, a potential we agree with, at least on the lower end. In the rest of
Asia, the consensus is "long and wrong" although a heavy weighting in Hong
Kong has helped ease the pain of poor performance in Malaysia, Singapore, the
Philippines, and especially Thailand. As growth in Southeast Asia has slowed
and consequently has picked up in Latin America, investment flows have
certainly moved toward the Latin markets. As detailed earlier, the view on the
U.S. market is a bit mixed, but generally Europeans see earnings peaking and
the market as having run too far, certainly in regards to jumping in now after
several years of underweighting positions and poor relative performance in
their global accounts.
July 8, 1997
4
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
5
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------------
BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--2.2%
AUTOMOTIVE--2.2%
General Motors
Acceptance Corp.
Series: 1993-B,
Class A
$ 426 4.000% 09/15/98 $ 424
WFS Financial Owner
Trust
Series: 1997-A,
Class A-3
10,000 6.500 09/20/01 9,995
--------
10,419
--------
HOME EQUITY LOANS--0.0%
U.S. Home Equity
Loan, Series: 1991-
2
62 8.500 04/15/21 62
- -----------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $10,483) $ 10,481
- -----------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
10.7%
American Southwest
Financial Securities
Corp., Series: 1996
FHA-1, Class A-1
$ 9,585 6.675% 12/25/01 $ 9,576
Countrywide Funding
Corp.,
Series: 1993-1,
Class A-4
13,567 4.384 10/25/23 11,597
Countrywide Mortgage
Backed Securities
Inc., Series: 1993-
D, Class A-11
6,047 5.796 01/25/09 4,645
Delta Funding Corp.,
Interest Only
Stripped Security*,
Series: 1991-1,
Class A-4(/1/)
-- -- 01/01/06 116
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Adjustable Rate,
Interest Only
Stripped Security*,
Series: 1995-QE9
-- -- 11/25/25 1,183
Donaldson, Lufkin, &
Jenrette
Mortgage Acceptance
Corp.,
Series: 1994-Q8,
Class 2-A1
4,864 7.250 05/25/24 4,834
PaineWebber Mortgage
Acceptance Corp.,
Series: 1993-9,
Class A-15
7,919 7.000 10/25/23 7,632
PNC Mortgage
Securities Corp.,
Series: 1996-PR1,
Class A(/1/)
10,207 8.151 04/28/27 10,345
- -----------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $50,949) $ 49,928
- -----------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--
11.2%
FINANCIAL--1.0%
General Motors
Acceptance Corp.
$ 4,285 8.875% 06/01/00 $ 4,856
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------
<C> <S> <C> <C>
FOREIGN GOVERNMENT BOND--3.4%
Quebec Province,
Canada Medium Term
Note
$15,450 7.220% 07/22/36 $15,899
-------
INDUSTRIAL--1.7%
Penney (J.C.) & Co.,
Inc.
7,700 6.900 08/15/03 7,691
-------
INSURANCE SERVICES--2.7%
Lumberman's Mutual
Casualty Co.
6,000 9.150 07/01/26 6,432
Anthem
Insurance(/1/)
6,000 9.000 04/01/27 6,071
-------
12,503
-------
SANITARY SERVICES--2.4%
WMX Technologies
11,000 7.100 08/01/03 11,041
- -----------------------------------------
TOTAL CORPORATE AND FOREIGN
GOVERNMENT BONDS (Cost
$50,881) $51,990
- -----------------------------------------
U.S. GOVERNMENT AGENCIES--9.3%
COLLATERALIZED MORTGAGE OBLIGATIONS--
9.3%
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
INTEREST ONLY STRIPPED SECURI-
TY*--0.0%
Series: 1392, Class
S
$ -- --% 09/15/18 $ 31
-------
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
PRINCIPAL ONLY STRIPPED SECU-
RITY*--0.1%
Series: G011, Class
B
912 -- 04/25/23 636
-------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--4.1%
Series: 1991-127,
Class SA
588 11.658 09/25/98 601
Series: 1996-M4,
Class A
8,479 7.750 03/17/17 8,563
Series: 1990-3,
Class 3-D
604 8.500 07/25/18 609
Series: 1992-73,
Class G
7,500 7.500 04/25/21 7,562
Series: 1886, Class
SD
2,306 2.550 12/15/23 1,605
-------
18,940
-------
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION REMIC TRUST
INTEREST ONLY STRIPPED SECURI-
TIES*--1.1%
Series: G-12, Class
S
-- -- 05/25/21 509
Series: 1997-20,
Class IO
-- -- 03/25/27 4,482
-------
4,991
-------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal
Amount/ Maturity
Shares Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION REMIC TRUST
PRINCIPAL ONLY STRIPPED SECU-
RITIES*--4.0%
Series: 1993-161,
Class B
$ 3,641 --% 10/25/18 $ 3,470
Series: 1993-132,
Class D
1,947 -- 10/25/22 969
Series: 1993-184,
Class L
7,585 -- 09/25/23 4,731
Series: 1993-205,
Class EA
3,150 -- 09/25/23 2,072
Series: 1994-9,
Class G
1,623 -- 11/25/23 1,532
Series: 1996-14,
Class PR
9,000 -- 01/25/24 5,727
--------
18,501
--------
MORTGAGE-BACKED SECURITIES--
0.0%
FEDERAL HOME LOAN MORTGAGE
CORP.--0.0%
$ 1 6.500% 06/01/04 $ 1
- ------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $42,341) $ 43,100
- ------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
47.3%
U.S. TREASURY NOTES--35.4%
$23,600 6.750% 05/31/99 $ 23,836
28,745 6.870 08/31/99 29,109
3,300 7.750 01/31/00 3,413
85,400 6.625 07/31/01 85,853
21,675 7.500 02/15/05 22,789
--------
165,000
--------
U.S. TREASURY BONDS--11.9%
41,365 7.125 02/15/23 41,947
15,000 6.125 02/15/26 13,202
--------
55,149
- ------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $220,710) $220,149
- ------------------------------------------
PREFERRED STOCKS--9.6%
AGENCY--3.2%
15,000 Home Ownership
Funding Corp. $ 14,806
--------
ENTERTAINMENT AND LEISURE--1.8%
8,450 Lazara Corp. 8,440
--------
FINANCIAL--1.8%
8,190 Marquette Real
Estate Funding
Corp. 8,142
--------
REAL ESTATE--2.8%
8,600 1585 Broadway Corp. 8,582
4,600 Tier One Properties,
Inc. 4,631
--------
13,213
- ------------------------------------------
TOTAL PREFERRED STOCKS (Cost
$44,854) $ 44,601
- ------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------
<C> <S> <C> <C>
FLOATING RATE BANK NOTES--5.5%
Lloyds Bank PLC
$11,450 5.875% 06/13/97 $ 10,470
National Australia
Bank
3,000 6.181 10/15/97 2,712
National Westminster
Bank
13,800 5.938 08/29/97 12,343
- -------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $24,194) $ 25,525
- -------------------------------------------
SHORT-TERM INVESTMENT--5.4%
Bank of Tokyo-
Mitsubishi, Grand
Cayman
$25,261 5.750% 06/02/97 $ 25,261
- -------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $25,261) $ 25,261
- -------------------------------------------
TOTAL INVESTMENTS--101.2%
(Cost $469,673) $471,035
- -------------------------------------------
Liabilities, less other as-
sets--(1.2)% (5,346)
- -------------------------------------------
NET ASSETS--100.0% $465,689
- -------------------------------------------
- -------------------------------------------
</TABLE>
*At May 31, 1997, effective yields on these Interest Only and Principal Only
stripped securities ranged from approximately 5.00% to 15.00%.
(/1/)At May 31, 1997, the Portfolio owned restricted securities valued at
approximately $16,532,000 (3.6% of net assets), with an aggregate cost basis
of $16,799,000. These securities may not be publicly sold without
registration under the Securities Act of 1933 (the 1933 Act). The value of
these securities is determined by valuations supplied by a pricing service or
brokers or, if not available, in good faith by or at the direction of the
Trustees.
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <S> <C> <C>
DEBT OBLIGATIONS--95.0%
AUSTRALIAN DOLLAR--4.8%
Commonwealth of
Australia
1,580 10.000% 10/15/02 $ 1,368
-------
BELGIAN FRANC--2.0%
Kingdom of Belgium
18,275 7.500 07/29/08 573
-------
BRITISH POUND STERLING--17.6%
Abbey National PLC
825 6.000 08/10/99 1,317
Lloyds Bank PLC
800 7.375 03/11/04 1,289
Treasury of Great
Britain
1,420 8.000 06/10/03 2,420
-------
5,026
-------
CANADIAN DOLLAR--6.7%
Province of Ontario
1,050 7.300 09/27/05 786
Province of Quebec
1,325 10.300 10/15/01 1,112
-------
1,898
-------
DANISH KRONE--6.0%
Kingdom of Denmark
10,100 8.000 03/15/06 1,718
-------
FRENCH FRANC--4.4%
Electricite de
France
6,200 8.600 04/09/04 1,259
-------
GERMAN MARK--14.6%
Federal Republic of
Germany
1,795 6.300 01/04/24 989
LKB Global Bond
1,500 6.000 05/10/99 915
Republic of Austria
1,670 8.000 01/30/02 1,104
Republic of Finland
1,920 5.500 02/09/01 1,162
-------
4,170
-------
ITALIAN LIRA--8.8%
Republic of Italy
4,000,000 8.500 04/01/04 2,514
-------
JAPANESE YEN--15.4%
Asian Development
Bank
90,000 5.000 02/05/03 884
European Bank for
Reconstruction and
Development
95,000 5.900 11/26/99 904
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Local
Currency/
Principal Maturity
Amount Rate Date Value
- -----------------------------------------
<C> <S> <C> <C>
International Bank
for Reconstruction
and Development
100,000 4.500% 03/20/03 $ 967
Japan Development
Bank
160,000 6.500 09/20/01 1,630
-------
4,385
-------
NETHERLANDS GUILDER--5.4%
Kingdom of the
Netherlands
2,615 8.500 03/15/01 1,546
-------
SPANISH PESETA--4.6%
Kingdom of Spain
120,000 11.300 01/15/02 1,014
35,000 10.000 02/28/05 293
-------
1,307
-------
SWEDISH KRONA--4.0%
Kingdom of Sweden
7,400 10.300 05/05/03 1,137
-------
UNITED STATES DOLLAR--0.7%
U.S. Treasury Bond
200 7.100 02/15/23 203
- -----------------------------------------
TOTAL DEBT OBLIGATIONS (Cost
$26,864) $27,104
- -----------------------------------------
SHORT-TERM INVESTMENT--2.6%
United States Dollar
Bank of Tokyo-
Mitsubishi, Grand
Cayman
$ 746 5.750% 06/02/97 $ 746
- -----------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $746) $ 746
- -----------------------------------------
TOTAL INVESTMENTS--97.6% $27,850
(Cost $27,610)
- -----------------------------------------
Other assets, less liabili-
ties--2.4% 671
- -----------------------------------------
NET ASSETS--100.0% $28,521
- -----------------------------------------
- -----------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------------
SHORT DURATION PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATION--
11.0%
U.S. Treasury Note
$ 5,000 5.875% 11/15/99 $ 4,948
- ----------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TION
(Cost $5,009) $ 4,948
- ----------------------------------------------------
FOREIGN CERTIFICATE OF DEPOS-
IT--2.2%
Sanwa Bank, New York
Branch
$ 1,000 5.630% 06/23/97 $ 1,000
- ----------------------------------------------------
TOTAL FOREIGN CERTIFICATE OF
DEPOSIT
(Cost $1,000) $ 1,000
- ----------------------------------------------------
COMMERCIAL PAPER--66.1%
ASSET-BACKED SECURITIES--4.4%
Kitty Hawk Funding
Corp.
$ 1,000 5.728% 06/20/97 $ 997
Variable Funding
Capital
1,000 5.611 06/10/97 998
-------
1,995
-------
BROKERAGE SERVICES--2.2%
Morgan Stanley
Group, Inc.
1,000 5.621 06/30/97 995
-------
INDUSTRIAL MACHINES AND COM-
PUTER EQUIPMENT--4.6%
International
Business Machines
Corp.
100 5.525 06/26/97 99
John Deere Capital
Corp.
2,000 5.482 06/26/97 1,992
-------
2,091
-------
ELECTRONIC AND OTHER ELECTRICAL
COMPONENTS--4.4%
General Electric
Capital Corp.
2,000 5.506 06/30/97 1,991
-------
EXECUTIVE, LEGISLATIVE & GEN-
ERAL GOVERNMENT--2.2%
APEX Funding Corp.
1,000 5.625 06/25/97 996
-------
GENERAL MERCHANDISE STORES--
4.4%
Sears Roebuck
Acceptance Corp.
2,000 5.506 06/30/97 1,991
-------
INSURANCE CARRIERS--8.4%
New Center Asset
Trust
2,000 5.506 06/30/97 1,991
NFC Asset Trust
1,000 5.636 06/24/97 996
Special Purpose
Accounts Receivable
Cooperative Corp.
800 5.617 06/10/97 799
-------
3,786
-------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------
<C> <S> <C> <C>
NONDEPOSITORY BUSINESS CREDIT
INSTITUTIONS--22.2%
American Express
Credit Co.
$ 2,000 5.556% 06/30/97 $ 1,991
American General
Finance Corp.
2,000 5.591 06/30/97 1,991
Associates
Corporation of North
America
2,000 5.519 06/30/97 1,991
Beneficial Corp.
2,000 5.516 06/30/97 1,991
Household Finance
Corp.
2,000 5.476 06/30/97 1,991
-------
9,955
-------
REAL ESTATE--2.2%
SRD Finance, Inc.
1,000 5.631 06/26/97 996
-------
TRANSPORTATION--11.1%
Chrysler Financial
Corp.
2,000 5.576 06/27/97 1,992
Ford Credit Canada
Ltd.
1,000 5.655 06/10/97 998
General Motors
Acceptance Corp.
2,000 5.536 06/30/97 1,991
-------
4,981
- ------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $29,777) $29,777
- ------------------------------------------
SHORT-TERM INVESTMENT--1.0%
Bank of Montreal,
Canada
$ 462 5.688% 06/02/97 $ 462
- ------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $462) $ 462
- ------------------------------------------
REPURCHASE AGREEMENT--22.2%
Bear Stearns & Co.,
Inc., Dated
05/30/97, Repurchase
Price $10,005 (U.S.
Government
Securities
Collateralized)
$10,000 5.700% 06/02/97 $10,000
- ------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $10,000) $10,000
- ------------------------------------------
TOTAL INVESTMENTS--102.5%
(Cost $46,248) $46,187
- ------------------------------------------
Liabilities, less other as-
sets--(2.5)% (1,138)
- ------------------------------------------
NET ASSETS--100.0% $45,049
- ------------------------------------------
- ------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--9.0%
AUTOMOTIVE--9.0%
Olympic Automobile
Receivables Trust
$ 2,931 5.950% 11/15/99 $ 2,937
2,062 7.875 07/15/01 2,099
Olympic Automobile
Receivables Trust,
Interest Only
Stripped Security*
-- -- 01/15/99 925
Premier Auto Trust
1,177 4.750 02/02/00 1,174
Western Financial
Automobile Loan
Trust
Series: 1992, Class
3
192 4.700 01/01/98 192
Series: 1994-4,
Class A-1
1,083 7.100 01/01/00 1,088
Series: 1997-A,
Class A-3
5,800 6.500 09/20/01 5,797
- --------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $14,693) $ 14,212
- --------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
17.6%
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance
Corp.,
Series: 1994-Q8,
Class 2-A1
$ 2,091 7.250% 05/25/24 $ 2,078
Financial Asset
Securitization,
Inc.,
Series: 1997-NAMC,
Class FXA-3
6,074 7.350 04/25/27 6,083
GE Capital Mortgage
Services, Inc.,
Series: 1994-15,
Class A-16
8,299 6.000 04/25/09 7,841
PNC Mortgage
Securities Corp.,
Series: 1996-PR1,
Class A
2,932 8.150 04/28/27 2,971
Prudential Home
Mortgage Securities
Co.,
Series: 94-1, Class
A
9,143 6.000 02/25/09 8,869
- --------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $28,040) $ 27,842
- --------------------------------------------------------
CORPORATE OBLIGATIONS--10.2%
BROKERAGE SERVICES--7.1%
Donaldson, Lufkin &
Jenrette, Inc.
Medium Term Note
$ 6,500 5.625% 02/15/16 $ 6,227
Salomon Brothers,
Inc. Medium Term
Notes
3,000 5.500 01/31/98 2,984
2,000 5.700 02/11/98 1,991
--------
11,202
--------
ELECTRICAL UTILITY--3.1%
Tenaga Nasional
Berhad
4,800 7.200 04/29/07 4,852
- --------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $16,272) $ 16,054
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES--7.8%
COLLATERALIZED MORTGAGE OBLIGATIONS--
7.8%
FEDERAL HOME LOAN MORTGAGE AS-
SOCIATION REMIC TRUST PRINCI-
PAL ONLY STRIPPED SECURITY*--
2.7%
Series: 1571, Class
BA
$ 4,490 --% 04/15/19 $ 4,215
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------
<C> <S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--3.6%
Series: 1996-M4,
Class A
$ 5,652 7.750% 03/17/17 $ 5,709
--------
FEDERAL NATIONAL MORTGAGE ASSO-
CIATION REMIC TRUST PRINCIPAL
ONLY STRIPPED SECURITIES*--
1.5%
Series: 1993-161,
Class B
910 -- 10/25/18 868
Series: 1994-9,
Class G
1,623 -- 11/25/23 1,532
--------
2,400
- -------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $11,156) $ 12,324
- -------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
48.6%
U.S. TREASURY NOTES--48.6%
$ 4,000 5.375% 05/31/98 $ 3,981
2,000 5.125 11/30/98 1,974
23,525 6.750 05/31/99 23,760
13,675 6.875 08/31/99 13,848
11,900 7.750 01/31/00 12,305
4,000 5.500 12/31/00 3,883
4,890 6.625 06/30/01 4,915
12,000 6.625 07/31/01 12,064
- -------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $77,003) $ 76,730
- -------------------------------------------
SHORT-TERM INVESTMENT--9.2%
Bank of Tokyo-
Mitsubishi, Grand
Cayman
<CAPTION>
$14,515 5.750% 06/02/97 $ 14,515
- -------------------------------------------
<C> <S> <C> <C>
TOTAL SHORT-TERM INVESTMENT
(Cost $14,515) $ 14,515
- -------------------------------------------
TOTAL INVESTMENTS--102.4%
(Cost $161,679) $161,677
- -------------------------------------------
Liabilities, less other as-
sets--(2.4)% (3,756)
- -------------------------------------------
NET ASSETS--100.0% $157,921
- -------------------------------------------
- -------------------------------------------
</TABLE>
*At May 31, 1997, effective yields on these Interest Only and Principal Only
stripped securities ranged from approximately 5.00% to 7.00%.
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--33.6%
COLLATERALIZED MORTGAGE OBLIGATIONS--
26.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION--
3.1%
Series: 1296, Class
H
$ 1,781 11.956% 07/15/99 $ 1,911
Series: 1520, Class
F
672 5.650 09/15/04 666
--------
2,577
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--23.5%
Series: 1991-127,
Class S
2,590 11.979 09/25/98 2,716
Series: 1997-M1,
Class A
3,343 6.783 01/17/03 3,342
Series: 1993-085,
Class PD
4,191 5.500 07/25/03 4,163
Series: 1993-133,
Class EZ
3,734 5.850 02/25/17 3,658
Series: 1996-M4,
Class A
3,768 7.750 03/17/17 3,806
Series: 1992-200,
Class E
1,000 6.250 06/25/17 997
Series: 1998-14,
Class 14-F
246 9.200 12/25/17 253
Series: 1992-20,
Class IO,
Interest Only
Stripped Security*
-- -- 03/25/27 727
--------
19,662
--------
MORTGAGE-BACKED SECURITIES--4.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION--
0.6%
$ 493 7.722% 11/01/24 $ 506
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--
4.0%
3,139 7.776 01/01/31 3,304
--------
3,810
--------
AGENCY OBLIGATIONS--2.4%
FEDERAL HOME LOAN MORTGAGE CORPORATION--
0.6%
$ 500 7.130% 06/30/05 $ 490
--------
TENNESSEE VALLEY AUTHORITY NOTE--1.8%
1,500 6.235 07/15/45 1,484
--------
1,974
- ----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $27,976) $ 28,023
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--76.4%
U.S. TREASURY NOTES
$ 7,000 5.500% 11/15/98 $ 6,946
9,000 6.750 05/31/99 9,090
12,000 7.750 01/31/00 12,409
25,000 6.125 07/31/00 24,820
715 6.625 06/30/01 719
9,840 6.625 07/31/01 9,892
- -------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $64,244) $ 63,876
- -------------------------------------------
SHORT-TERM INVESTMENT--3.6%
Federal Home Loan
Bank Discount Note
$ 2,995 5.400% 06/02/97 $ 2,995
- -------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $2,995) $ 2,995
- -------------------------------------------
TOTAL INVESTMENTS--113.6%
(Cost $95,215) $ 94,894
- -------------------------------------------
Liabilities, less other as-
sets--(13.6)% (11,328)
- -------------------------------------------
NET ASSETS--100.0% $ 83,566
- -------------------------------------------
</TABLE>
*At May 31, 1997, the effective yield on this Interest Only stripped security
was 7.00%.
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--
95.0%
U.S. TREASURY NOTES--66.6%
$1,115 9.250% 08/15/98 $ 1,157
6,100 5.000 01/31/99 5,994
1,400 5.250 02/28/99 1,385
850 7.875 11/15/99 880
3,800 7.750 01/13/00 3,929
2,100 6.500 05/31/01 2,103
4,000 6.250 02/15/03 3,945
1,000 6.250 02/15/07 973
-------
20,366
-------
U.S. TREASURY BONDS--28.4%
435 13.875 05/15/11 640
660 14.000 11/15/11 989
490 13.250 05/15/14 742
1,250 7.250 05/15/16 1,286
900 8.125 05/15/21 1,015
1,700 6.250 08/15/23 1,549
2,500 6.875 08/15/25 2,469
-------
8,690
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $29,184) $29,056
- ------------------------------------------------------
SHORT-TERM INVESTMENT--3.6%
Federal Home Loan
Bank Discount Note
$1,095 5.400% 06/02/97 $ 1,095
- ------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $1,095) $ 1,095
- ------------------------------------------------------
TOTAL INVESTMENTS--98.6%
(Cost $30,279) $30,151
- ------------------------------------------------------
Other assets, less liabili-
ties--1.4% 445
- ------------------------------------------------------
NET ASSETS--100.0% $30,596
- ------------------------------------------------------
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1997
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
International Short Intermediate Government Treasury
Bond Bond Duration Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $469,673 $27,610 $36,248 $161,679 $95,215 $30,279
Repurchase agreement, at
cost -- -- 10,000 -- -- --
- ---------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $471,035 $27,850 $36,187 $161,677 $94,894 $30,151
Repurchase agreement, at
value -- -- 10,000 -- -- --
Cash and foreign curren-
cies 1,095 22 -- 848 308 4
Unrealized appreciation
on forward foreign cur-
rency contracts -- 25 -- -- -- --
Receivables:
Interest 6,332 607 18 1,642 1,281 444
Fund units sold 199 -- 1 200 -- --
Investment securities
sold -- -- -- -- 19 --
Foreign tax reclaims -- 17 -- -- -- --
Administrator 11 -- 7 8 6 6
Deferred organization
costs, net 8 29 19 8 11 8
Other assets 6 9 4 1 2 1
- ---------------------------------------------------------------------------------------------
TOTAL ASSETS 478,686 28,559 46,236 164,384 96,521 30,614
- ---------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Investment securities
purchased 9,997 -- -- 5,798 -- --
Fund units redeemed 2,818 -- 1,138 600 12,913 --
Distributions to
unitholders -- -- 28 -- -- --
Accrued expenses:
Advisory fees 99 17 6 33 21 4
Administration fees 39 4 4 13 8 3
Transfer agent fees 8 -- -- 1 1 --
Custodian fees 3 7 4 4 2 2
Other liabilities 33 10 7 14 10 9
- ---------------------------------------------------------------------------------------------
TOTAL LIABILITIES 12,997 38 1,187 6,463 12,955 18
- ---------------------------------------------------------------------------------------------
NET ASSETS $465,689 $28,521 $45,049 $157,921 $83,566 $30,596
- ---------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $463,078 $28,096 $45,654 $157,909 $84,182 $31,677
Accumulated undistrib-
uted net investment in-
come 318 320 35 171 122 43
Accumulated net realized
gains (losses) on in-
vestments, forward for-
eign currency contracts
and foreign currency
transactions 931 (159) (579) (157) (417) (996)
Net unrealized
appreciation
(depreciation) on
investments, forward
foreign currency
contracts and foreign
currency transactions 1,362 265 (61) (2) (321) (128)
Net unrealized losses on
translation of other
assets and liabilities
denominated in foreign
currencies -- (1) -- -- -- --
- ---------------------------------------------------------------------------------------------
NET ASSETS $465,689 $28,521 $45,049 $157,921 $83,566 $30,596
- ---------------------------------------------------------------------------------------------
Total units outstanding
(no par value), unlim-
ited units authorized
Class A 20,069 1,401 4,515 7,753 4,008 1,454
Class C 2,726 -- -- -- 186 --
Class D 8 3 -- 23 15 69
- ---------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption price
per unit
Class A $ 20.42 $ 20.32 $ 9.98 $ 20.31 $ 19.85 $ 20.09
Class C $ 20.42 -- -- -- $ 19.85 --
Class D $ 20.40 $ 20.28 -- $ 20.26 $ 19.81 $ 20.05
- ---------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
International Short Intermediate Government Treasury
Bond Bond Duration Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME: $13,260 $ 985(a) $1,355 $5,276 $2,677 $885
- ---------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,184 134 98 453 260 57
Administration fees 292 33 55 148 96 32
Transfer agent fees 30 2 -- 8 6 2
Custodian fees 24 34 19 15 11 11
Registration fees 23 11 7 14 14 12
Unitholder servicing
fees 17 -- -- 1 3 1
Professional fees 9 2 2 4 2 2
Amortization of deferred
organization costs 7 8 10 7 7 7
Trustee fees and ex-
penses 5 1 1 2 1 1
Other 8 6 3 3 3 3
- ---------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,599 231 195 655 403 128
Less voluntary waivers
of:
Investment advisory
fees (691) (30) (61) (264) (152) (36)
Administration fees (95) (19) -- (73) (53) (18)
Less: Expenses reimburs-
able by Administrator (74) (38) (73) (46) (37) (35)
- ---------------------------------------------------------------------------------------------
Net expenses 739 144 61 272 161 39
- ---------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 12,521 841 1,294 5,004 2,516 846
Net realized gains
(losses) on:
Investment transactions 3,370 112 3 (392) (110) 3
Foreign currency trans-
actions -- (279) -- -- -- --
Net change in unrealized
appreciation
(depreciation) on
investments, forward
foreign currency
contracts and foreign
currency transactions (8,873) (2,343) (44) (2,169) (670) (685)
Net change in unrealized
gains on translation of
other assets and
liabilities denominated
in foreign currencies -- 4 -- -- -- --
- ---------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ 7,018 $(1,665) $1,253 $2,443 $1,736 $164
- ---------------------------------------------------------------------------------------------
</TABLE>
(a)Net of $19 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
14
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1997 (Unaudited) and the Year Ended November
30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Bond International Short Duration
Portfolio Bond Portfolio Portfolio
------------------ ---------------- ----------------
1997 1996 1997 1996 1997 1996
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERA-
TIONS:
Net investment income $ 12,521 $ 21,225 $ 841 $ 1,892 $ 1,294 $ 2,571
Net realized gains
(losses) on
investments, forward
foreign currency
contracts and foreign
currency transactions 3,370 2,094 (167) 976 3 29
Net change in
unrealized
appreciation
(depreciation) on
investments, forward
foreign currency
contracts and foreign
currency transactions (8,873) (3,905) (2,343) 20 (44) --
Net change in
unrealized gains on
translations of other
assets and liabili-
ties denominated in
foreign currencies -- -- 4 6 -- --
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets result-
ing from operations 7,018 19,414 (1,665) 2,894 1,253 2,600
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
A UNITHOLDERS FROM:
Net investment income (11,517) (20,213) (551) (2,300) (1,294) (2,571)
Net realized gains -- -- (520) -- -- --
Return of capital -- (556) -- -- -- --
- --------------------------------------------------------------------------------
Total distributions to
Class A unitholders (11,517) (20,769) (1,071) (2,300) (1,294) (2,571)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
C UNITHOLDERS FROM:
Net investment income (679) (264) -- -- -- --
Return of capital -- (7) -- -- -- --
- --------------------------------------------------------------------------------
Total distributions to
Class C unitholders (679) (271) -- -- -- --
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
D UNITHOLDERS FROM:
Net investment income (7) (8) (1) (1) -- --
Net realized gains -- -- (1) -- -- --
Return of capital -- (1) -- -- -- --
- --------------------------------------------------------------------------------
Total distributions to
Class D unitholders (7) (9) (2) (1) -- --
- --------------------------------------------------------------------------------
CLASS A UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units 86,524 143,593 748 5,918 27,070 64,087
Reinvested distribu-
tions 10,439 18,565 874 1,747 1,269 2,425
Cost of units redeemed (48,338) (79,885) (4,609) (6,747) (25,062) (70,201)
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from Class A
unit transactions 48,625 82,273 (2,987) 918 3,277 (3,689)
- --------------------------------------------------------------------------------
CLASS C UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units 51,632 4,311 -- -- -- --
Reinvested distribu-
tions 679 271 -- -- -- --
Cost of units redeemed (4,423) (1,032) -- -- -- --
- --------------------------------------------------------------------------------
Net increase in net as-
sets resulting from
Class C unit transac-
tions 47,888 3,550 -- -- -- --
- --------------------------------------------------------------------------------
CLASS D UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units 67 127 9 41 -- --
Reinvested distribu-
tions 6 9 2 1 -- --
Cost of units redeemed (124) (37) -- -- -- --
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from Class D
unit transactions (51) 99 11 42 -- --
- --------------------------------------------------------------------------------
Net increase (decrease) 91,277 84,287 (5,714) 1,553 3,236 (3,660)
Net assets--beginning
of period 374,412 290,125 34,235 32,682 41,813 45,473
- --------------------------------------------------------------------------------
NET ASSETS--END OF PE-
RIOD $465,689 $374,412 $28,521 $34,235 $45,049 $41,813
- --------------------------------------------------------------------------------
ACCUMULATED UNDISTRIB-
UTED NET INVESTMENT
INCOME $ 318 $ -- $ 320 $ 31 $ 35 $ 35
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS--CONTINUED
For the Six Months Ended May 31, 1997 (Unaudited) and the Year Ended November
30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Short-
Intermediate U.S. Government U.S. Treasury
Bond Portfolio Securities Portfolio Index Portfolio
------------------ ---------------------- ----------------
1997 1996 1997 1996 1997 1996
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERA-
TIONS:
Net investment income $ 5,004 $ 9,828 $ 2,516 $ 4,572 $ 846 $ 1,035
Net realized gains
(losses) on invest-
ments (392) 392 (110) (58) 3 91
Net change in
unrealized
appreciation
(depreciation) on
investments (2,169) (1,308) (670) (201) (685) (239)
- --------------------------------------------------------------------------------------
Net increase in net as-
sets resulting from
operations 2,443 8,912 1,736 4,313 164 887
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
A UNITHOLDERS FROM:
Net investment income (4,865) (9,596) (2,365) (4,393) (798) (1,005)
Net realized gains (414) -- -- -- -- --
- --------------------------------------------------------------------------------------
Total distributions to
Class A unitholders (5,279) (9,596) (2,365) (4,393) (798) (1,005)
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
C UNITHOLDERS FROM:
Net investment income -- -- (97) (159) -- --
- --------------------------------------------------------------------------------------
Total distributions to
Class C unitholders -- -- (97) (159) -- --
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
D UNITHOLDERS FROM:
Net investment income (13) (3) (7) (9) (30) (26)
Net realized gains (1) -- -- -- -- --
- --------------------------------------------------------------------------------------
Total distributions to
Class D unitholders (14) (3) (7) (9) (30) (26)
- --------------------------------------------------------------------------------------
CLASS A UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units 41,577 69,730 39,434 104,606 4,407 13,176
Reinvested distribu-
tions 4,692 8,697 2,232 4,198 682 746
Cost of units redeemed (39,639) (82,742) (53,746) (72,555) (1,513) (5,169)
- --------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from Class A
unit transactions 6,630 (4,315) (12,080) 36,249 3,576 8,753
- --------------------------------------------------------------------------------------
CLASS C UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units -- -- 806 4,695 -- --
Reinvested distribu-
tions -- -- 97 159 -- --
Cost of units redeemed -- -- (712) (1,298) -- --
- --------------------------------------------------------------------------------------
Net increase in net as-
sets resulting from
Class C unit transac-
tions -- -- 191 3,556 -- --
- --------------------------------------------------------------------------------------
CLASS D UNIT TRANSAC-
TIONS:
Proceeds from the sale
of units 138 328 94 210 839 592
Reinvested distribu-
tions 9 3 3 8 18 26
Cost of units redeemed (24) (2) (20) (60) (294) (66)
- --------------------------------------------------------------------------------------
Net increase in net
assets resulting from
Class D unit
transactions 123 329 77 158 563 552
- --------------------------------------------------------------------------------------
Net increase (decrease) 3,903 (4,673) (12,545) 39,715 3,475 9,161
Net assets--beginning
of period 154,018 158,691 96,111 56,396 27,121 17,960
- --------------------------------------------------------------------------------------
NET ASSETS--END OF PE-
RIOD $157,921 $154,018 $ 83,566 $ 96,111 $30,596 $27,121
- --------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIB-
UTED NET INVESTMENT
INCOME $ 171 $ 45 $ 122 $ 75 $ 43 $ 25
- --------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $ 20.77 $ 20.96 $ 18.29 $ 20.70 $ 20.00
Income from investment
operations:
Net investment income 0.64 1.29 1.17 1.42 1.42
Net realized and unrealized
gain (loss) (0.36) (0.19) 2.66 (2.21) 0.66
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.28 1.10 3.83 (0.79) 2.08
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.63) (1.26) (1.14) (1.46) (1.38)
Net realized gain -- -- -- (0.15) --
Return of capital -- (0.03) (0.02) (0.01) --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (0.63) (1.29) (1.16) (1.62) (1.38)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.35) (0.19) 2.67 (2.41) 0.70
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.42 $ 20.77 $ 20.96 $ 18.29 $ 20.70
- --------------------------------------------------------------------------------
Total return (b) 1.38% 5.57% 21.55% (4.04)% 10.60%
Ratio to average net assets
of (c):
Expenses, net of waivers
and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waivers
and reimbursements 0.81% 0.84% 0.84% 0.87% 0.92%
Net investment income, net
of waivers and
reimbursements 6.45% 6.39% 5.94% 7.31% 7.84%
Net investment income, be-
fore waivers and
reimbursements 6.00% 5.91% 5.46% 6.80% 7.28%
Portfolio turnover rate 59.12% 101.38% 74.19% 103.09% 89.06%
Net assets at end of period
(in thousands) $409,859 $366,850 $286,301 $257,391 $245,112
- --------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(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 net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
BOND PORTFOLIO--CONTINUED
<TABLE>
<CAPTION>
Class C Class D
-------------------------- ---------------------------------
1997 1996 1995 (a) 1997 1996 1995 1994 (b)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.78 $ 20.96 $20.21 $20.76 $ 20.94 $18.29 $18.74
Income from investment
operations:
Net investment income 0.59 1.25 0.47 0.63 1.22 1.08 0.28
Net realized and
unrealized gain (loss) (0.34) (0.18) 0.74 (0.40) (0.18) 2.66 (0.45)
- ---------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.25 1.07 1.21 0.23 1.04 3.74 (0.17)
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.61) (1.22) (0.45) (0.59) (1.19) (1.09) (0.28)
Return of capital -- (0.03) (0.01) -- (0.03) -- --
- ---------------------------------------------------------------------------------------
Total distributions to
unitholders (0.61) (1.25) (0.46) (0.59) (1.22) (1.09) (0.28)
- ---------------------------------------------------------------------------------------
Net increase (decrease) (0.36) (0.18) 0.75 (0.36) (0.18) 2.65 (0.45)
- ---------------------------------------------------------------------------------------
Net asset value, end of
period $ 20.42 $ 20.78 $20.96 $20.40 $ 20.76 $20.94 $18.29
- ---------------------------------------------------------------------------------------
Total return (c) 1.24% 5.33% 6.08% 1.19% 5.17% 21.06% (0.94)%
Ratio to average net as-
sets of (d):
Expenses, net of
waivers and
reimbursements 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75%
Expenses, before
waivers and
reimbursements 1.05% 1.08% 1.08% 1.20% 1.23% 1.23% 1.26%
Net investment income,
net of waivers and
reimbursements 5.75% 6.09% 5.59% 6.01% 5.99% 5.48% 6.31%
Net investment income,
before waivers and
reimbursements 5.30% 5.61% 5.11% 5.56% 5.51% 5.00% 5.80%
Portfolio turnover rate 59.12% 101.38% 74.19% 59.12% 101.38% 74.19% 103.09%
Net assets at end of pe-
riod (in thousands) $55,664 $ 7,342 $3,704 $ 166 $ 220 $ 120 $ 15
- ---------------------------------------------------------------------------------------
</TABLE>
(a) Class C units were issued on July 3, 1995.
(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 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.
18
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
INTERNATIONAL BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
------------------------------------- -------------------------
1997 1996 1995 1994 (a) 1997 1996 1995 (b)
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 22.16 $ 21.74 $ 19.93 $ 20.00 $22.14 $21.74 $22.17
Income from investment
operations:
Net investment income 0.60 1.54 1.26 0.79 0.47 1.37 0.02
Net realized and
unrealized gain (loss) (1.71) 0.43 2.28 0.01 (1.61) 0.51 (0.08)
- -------------------------------------------------------------------------------------------
Total income (loss) from
investment operations (1.11) 1.97 3.54 0.80 (1.14) 1.88 (0.06)
- -------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income
(c) (0.39) (1.55) (1.73) (0.87) (0.38) (1.48) (0.37)
Net realized gain (0.34) -- -- -- (0.34) -- --
- -------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.73) (1.55) (1.73) (0.87) (0.72) (1.48) (0.37)
- -------------------------------------------------------------------------------------------
Net increase (decrease) (1.84) 0.42 1.81 (0.07) (1.86) 0.40 (0.43)
- -------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.32 $ 22.16 $ 21.74 $ 19.93 $20.28 $22.14 $21.74
- -------------------------------------------------------------------------------------------
Total return (d) (5.10)% 9.47% 18.20% 4.03% (5.29)% 9.04% (0.30)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.96% 0.96% 0.96% 0.96% 1.35% 1.35% 1.35%
Expenses, before waiv-
ers and reimbursements 1.56% 1.58% 1.47% 1.49% 1.95% 1.97% 1.86%
Net investment income,
net of waivers and re-
imbursements 5.64% 5.91% 5.92% 5.93% 5.04% 5.67% 3.26%
Net investment income,
before waivers and re-
imbursements 5.04% 5.29% 5.41% 5.40% 4.44% 5.05% 2.75%
Portfolio turnover rate 12.78% 33.89% 54.46% 88.65% 12.78% 33.89% 54.46%
Net assets at end of pe-
riod (in thousands) $28,464 $34,183 $32,673 $26,947 $ 57 $ 52 $ 9
- -------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
(b) Class D units were issued on November 20, 1995.
(c) 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.
(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 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.
19
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
SHORT DURATION PORTFOLIO
<TABLE>
<CAPTION>
Class A
----------------------------------------------
1997 1996 1995 1994 1993 (a)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 9.99 $ 9.99 $ 9.97 $ 10.03 $ 10.00
Income from investment opera-
tions:
Net investment income 0.26 0.53 0.59 0.40 0.14
Net realized and unrealized
gain (loss) (0.01) -- 0.01 (0.05) 0.03
- -------------------------------------------------------------------------------
Total income from investment
operations 0.25 0.53 0.60 0.35 0.17
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.26) (0.53) (0.58) (0.40) (0.14)
Net realized gain -- -- -- (0.01) --
- -------------------------------------------------------------------------------
Total distributions to
unitholders (0.26) (0.53) (0.58) (0.41) (0.14)
- -------------------------------------------------------------------------------
Net increase (decrease) (0.01) -- 0.02 (0.06) 0.03
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.98 $ 9.99 $ 9.99 $ 9.97 $ 10.03
- -------------------------------------------------------------------------------
Total return (b) 2.59% 5.45% 6.14% 3.64% 1.73%
Ratio to average net assets of
(c):
Expenses, net of waivers and
reimbursements 0.25% 0.25% 0.25% 0.25% 0.32%
Expenses, before waivers and
reimbursements 0.80% 0.81% 0.80% 0.77% 0.50%
Net investment income, net of
waivers and reimbursements 5.31% 5.30% 5.80% 3.93% 3.00%
Net investment income, before
waivers and reimbursements 4.76% 4.74% 5.25% 3.41% 2.82%
Portfolio turnover rate 35.09% 828.58% 1,272.21% 1,364.00% 434.32%
Net assets at end of period
(in thousands) $45,049 $41,813 $45,473 $89,803 $186,765
- -------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on June 2, 1993.
(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 net asset value at the end of the period. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
SHORT-INTERMEDIATE BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
----------------------------------------------- --------------------------------
1997 1996 1995 1994 1993 (a) 1997 1996 1995 1994 (b)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.70 $ 20.73 $ 19.53 $ 20.33 $ 20.00 $20.66 $20.71 $19.53 $19.82
Income from investment
operations:
Net investment income 0.67 1.14 1.02 0.97 0.85 0.63 1.07 0.94 0.23
Net realized and
unrealized gain (loss) (0.36) (0.01) 1.19 (0.80) 0.31 (0.36) (0.02) 1.18 (0.29)
- ------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.31 1.13 2.21 0.17 1.16 0.27 1.05 2.12 (0.06)
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.65) (1.16) (1.01) (0.97) (0.83) (0.62) (1.10) (0.94) (0.23)
Net realized gain (0.05) -- -- -- -- (0.05) -- -- --
- ------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.70) (1.16) (1.01) (0.97) (0.83) (0.67) (1.10) (0.94) (0.23)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.39) (0.03) 1.20 (0.80) 0.33 (0.40) (0.05) 1.18 (0.29)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.31 $ 20.70 $ 20.73 $ 19.53 $ 20.33 $20.26 $20.66 $20.71 $19.53
- ------------------------------------------------------------------------------------------------------------
Total return (c) 1.57% 5.68% 11.58% 0.84% 5.90% 1.37% 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% 0.36% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 0.87% 0.88% 0.91% 0.95% 1.00% 1.26% 1.27% 1.30% 1.34%
Net investment income,
net of waivers and
reimbursements 6.63% 5.83% 5.14% 4.84% 4.79% 6.24% 4.96% 4.85% 4.42%
Net investment income,
before waivers and
reimbursements 6.12% 5.31% 4.59% 4.25% 4.15% 5.73% 4.44% 4.30% 3.83%
Portfolio turnover rate 36.24% 47.68% 54.68% 48.67% 19.48% 36.24% 47.68% 54.68% 48.67%
Net assets at end of pe-
riod (in thousands) $157,461 $153,675 $158,678 $96,209 $107,550 $ 460 $ 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 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.
21
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
U.S. GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
Class A
---------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PE-
RIOD $ 20.07 $ 20.08 $ 19.05 $ 20.07 $ 20.00
Income from investment
operations:
Net investment income 0.58 1.02 1.05 0.91 0.55
Net realized and unrealized gain
(loss) (0.23) (0.01) 1.02 (1.02) 0.05
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.35 1.01 2.07 (0.11) 0.60
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.57) (1.02) (1.04) (0.91) (0.53)
- --------------------------------------------------------------------------------
Total distributions to
unitholders (0.57) (1.02) (1.04) (0.91) (0.53)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.22) (0.01) 1.03 (1.02) 0.07
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 19.85 $ 20.07 $ 20.08 $ 19.05 $ 20.07
- --------------------------------------------------------------------------------
Total return (d) 1.82% 5.15% 11.18% (0.57)% 3.00%
Ratio to average net assets
of (e):
Expenses, net of waivers and re-
imbursements 0.36% 0.36% 0.36% 0.36% 0.43%
Expenses, before waivers and
reimbursements 0.92% 0.94% 1.09% 1.12% 1.18%
Net investment income, net of
waivers and reimbursements 5.83% 5.22% 5.43% 4.62% 4.18%
Net investment income, before
waivers and reimbursements 5.27% 4.64% 4.70% 3.86% 3.43%
Portfolio turnover rate 68.48% 119.75% 141.14% 45.55% 20.59%
Net assets at end of period (in
thousands) $79,575 $92,351 $56,329 $25,293 $32,479
- --------------------------------------------------------------------------------
</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 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>
Class C Class D
---------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 1996 (b) 1997 1996 1995 1994 (c)
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $20.14 $20.13 $20.03 $20.04 $19.05 $19.43
Income from investment operations:
Net investment income 0.55 0.91 0.53 0.96 0.96 0.22
Net realized and unrealized gain (loss) (0.29) (0.12) (0.22) (0.03) 1.00 (0.38)
- ------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.26 0.79 0.31 0.93 1.96 (0.16)
- ------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.55) (0.86) (0.53) (0.94) (0.97) (0.22)
- ------------------------------------------------------------------------------------------------
Total distributions to unitholders (0.55) (0.86) (0.53) (0.94) (0.97) (0.22)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (0.29) (0.07) (0.22) (0.01) 0.99 (0.38)
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $19.85 $20.06 $19.81 $20.03 $20.04 $19.05
- ------------------------------------------------------------------------------------------------
Total return (d) 1.72% 4.05% 1.63% 4.77% 10.66% (0.90)%
Ratio to average net assets of (e):
Expenses, net of waivers and
reimbursements 0.60% 0.60% 0.75% 0.75% 0.75% 0.75%
Expenses, before waivers and
reimbursements 1.16% 1.18% 1.31% 1.33% 1.48% 1.51%
Net investment income, net of waivers and
reimbursements 5.59% 4.97% 5.44% 4.83% 5.08% 4.65%
Net investment income, before waivers and
reimbursements 5.03% 4.39% 4.88% 4.25% 4.35% 3.89%
Portfolio turnover rate 68.48% 119.75% 68.48% 119.75% 141.14% 45.55%
Net assets at end of period (in thousands) $3,692 $3,535 $ 299 $ 225 $ 67 $ 13
- ------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
U.S. TREASURY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
--------------------------------------------- --------------------------------
1997 1996 1995 1994 1993 (a) 1997 1996 1995 1994 (b)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.60 $ 20.78 $ 18.77 $ 21.05 $ 20.00 $20.57 $20.75 $18.77 $18.80
Income from investment
operations:
Net investment income 0.59 1.19 1.11 1.15 0.95 0.55 1.17 1.00 0.09
Net realized and
unrealized gain (loss) (0.52) (0.18) 2.01 (1.93) 1.02 (0.52) (0.24) 2.03 (0.03)
- ---------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.07 1.01 3.12 (0.78) 1.97 0.03 0.93 3.03 0.06
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.58) (1.19) (1.11) (1.14) (0.92) (0.55) (1.11) (1.05) (0.09)
Net realized gain -- -- -- (0.36) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.58) (1.19) (1.11) (1.50) (0.92) (0.55) (1.11) (1.05) (0.09)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.51) (0.18) 2.01 (2.28) 1.05 (0.52) (0.18) 1.98 (0.03)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.09 $ 20.60 $ 20.78 $ 18.77 $ 21.05 $20.05 $20.57 $20.75 $18.77
- ---------------------------------------------------------------------------------------------------------
Total return (c) 0.40% 5.10% 16.95% (3.80)% 9.94% 0.21% 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% 0.26% 0.65% 0.65% 0.65% 0.65%
Expenses, before waiv-
ers and reimbursements 0.88% 1.04% 0.89% 0.79% 0.83% 1.27% 1.43% 1.28% 1.18%
Net investment income,
net of waivers and
reimbursements 5.98% 5.93% 5.09% 5.60% 5.11% 5.59% 5.57% 5.41% 6.05%
Net investment income,
before waivers and
reimbursements 5.36% 5.15% 4.46% 5.07% 4.54% 4.97% 4.79% 4.78% 5.52%
Portfolio turnover rate 28.92% 42.49% 80.36% 52.80% 77.75% 28.92% 42.49% 80.36% 52.80%
Net assets at end of pe-
riod (in thousands) $29,206 $26,273 $17,674 $37,305 $71,456 $1,390 $ 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 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>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
BALANCED PORTFOLIO
<C> <S> <C>
COMMON STOCKS--57.4%
BANKING--1.1%
13,200 Banc One Corp. $ 571
-------
BROKERAGE AND FINANCIAL SERVICES--1.0%
14,000 Schwab (Charles) Corp. 569
-------
CHEMICALS AND ALLIED PRODUCTS--6.4%
11,600 American Home Products Corp. 885
2,800 Bristol-Myers Squibb Co. 205
3,200 du Pont (E.I.) de Nemours & Co. 348
9,400 Merck & Co., Inc. 845
11,800 Praxair, Inc. 621
6,000 Warner-Lambert Co. 605
-------
3,509
-------
COMMUNICATIONS--2.5%
20,600 Ameritech Corp. 1,349
-------
COMPUTERS AND OFFICE MACHINES--4.2%
11,300 Cisco Systems, Inc.* 766
6,600 Hewlett-Packard Co. 340
9,800 Microsoft Corp.* 1,215
-------
2,321
-------
CONSUMER PRODUCTS--3.2%
6,400 Proctor & Gamble Co. 882
9,500 Gillette Co. 844
-------
1,726
-------
CREDIT INSTITUTIONS--1.5%
24,450 MBNA Corp. 828
-------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--5.1%
19,400 General Electric Co. 1,171
7,200 Intel Corp. 1,091
10,300 Linear Technology Corp. 516
-------
2,778
-------
FOOD AND BEVERAGES--5.3%
10,000 Coca-Cola (The) Co. 683
14,400 PepsiCo, Inc. 529
23,700 Philip Morris Cos., Inc. 1,043
20,400 Starbucks Corp.* 643
-------
2,898
-------
HEALTH SERVICES--3.8%
25,300 Health Management Associates, Inc., Class A* 740
13,200 Johnson & Johnson Co. 790
7,700 Medtronic, Inc. 570
-------
2,100
-------
INSURANCE SERVICES--2.7%
5,400 American International Group, Inc. 731
6,700 MBIA, Inc. 719
-------
1,450
-------
MORTGAGE AGENCIES--1.4%
17,900 Federal National Mortgage Association 781
-------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- --------------------------------------------------------------
<C> <S> <C>
OIL AND GAS--6.7%
9,600 Chevron Corp. $ 672
13,400 Exxon Corp. 794
14,100 Noble Affiliates, Inc. 594
3,700 Royal Dutch Petroleum Co. ADR 722
7,300 Schlumberger Ltd. ADR 870
-------
3,652
-------
PAPER PRODUCTS--1.3%
14,400 Kimberly-Clark Corp. 722
-------
PROFESSIONAL SERVICE--5.0%
7,200 Cintas Corp. 446
6,800 Computer Sciences Corp.* 526
17,100 First Data Corp. 684
12,000 Newell Co. 459
12,700 Oracle Systems Corp.* 592
-------
2,707
-------
RETAIL--5.0%
8,100 Home Depot (The), Inc. 510
22,700 Staples, Inc.* 500
5,400 Tommy Hilfiger Corp.* 240
19,500 Walgreen Co. 912
20,000 Wal-Mart Stores, Inc. 595
-------
2,757
-------
TRANSPORTATION PARTS AND EQUIPMENT--1.2%
6,400 Boeing (The) Co. 674
- --------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $22,057) $31,392
- --------------------------------------------------------------
PREFERRED STOCKS--4.2%
AGENCY--1.8%
1,000 Home Ownership Funding Corp. $ 987
-------
ENTERTAINMENT AND LEISURE--1.8%
1,000 Lazara Corp. 999
-------
FINANCIAL--0.6%
330 Marquette Real Estate Funding Corp. 328
- --------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $2,330) $ 2,314
- --------------------------------------------------------------
ASSET-BACKED SECURITIES--2.1%
FINANCIAL--2.1%
Olympic Automobile Receivables Trust
Series: 1995-D, Class A3
$ 513 5.950% Due 11/15/99 $ 514
Premier Auto Trust
Series: 1994-1, Class A3
82 4.750 Due 02/02/00 82
Western Financial Grantor Trust
Series: 1994-4, Class A1
108 7.100 Due 01/01/00 109
Western Financial Grantor Trust
Series: 1995-5, Class A1
463 5.875 Due 03/01/02 462
- --------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES (Cost $703) $ 1,167
- --------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------
BALANCED PORTFOLIO--CONTINUED
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS--2.1%
Donaldson, Lufkin & Jenrette
Mortgage Acceptance Corp.
Series: 1994-Q8, Class 2-A1
$ 276 7.250% Due 05/25/24 $ 275
Financial Asset Securitization, Inc.
Series: 1997-NAMC, Class FXA-3
900 7.350 Due 04/25/27 901
- -------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $1,633) $1,176
- -------------------------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--9.9%
FINANCIAL--4.7%
Equitable Life Assurance Co.
$ 400 6.950% Due 12/01/05 $ 389
Lehman Brothers Holdings, Inc.
570 7.375 Due 05/15/00 581
Lehman Brothers Holdings, Inc.
Medium Term Note
305 6.900 Due 01/29/01 304
Lumbermens Mutual Casualty Co.
350 9.150 Due 07/01/26 375
Prudential Insurance Co. of America
400 7.650 Due 07/01/07 400
Salomon, Inc. Medium Term Note
500 5.500 Due 01/31/98 497
-------
2,546
-------
INDUSTRIAL--0.8%
Penney (J. C.), Inc.
420 6.900 Due 08/15/26 420
-------
SANITARY SERVICES--1.5%
WMX Technologies, Inc.
800 7.100 Due 08/01/26 803
-------
SOVEREIGN--1.1%
Quebec Province, Canada Medium Term Note
600 7.220 Due 07/22/36 617
-------
UTILITY--1.8%
Tenaga Nasional Berhad
1,000 7.200 Due 04/29/07 1,011
- -------------------------------------------------------------
TOTAL CORPORATE AND FOREIGN GOVERNMENT BONDS (Cost
$5,373) $ 5,397
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--2.7%
FEDERAL NATIONAL MORTGAGE ASSOCIATION REMIC TRUST--2.7%
Series: 1991-37, Class G
$ 250 8.150% Due 08/25/05 $ 254
Series: 1992-200, Class E
500 6.250 Due 06/25/17 499
Series: 1996-M4, Class A
707 7.750 Due 03/17/17 714
- -------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $1,446) $ 1,467
- -------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS--13.5%
U.S. TREASURY NOTES--13.5%
$ 450 5.375% Due 05/31/98 $ 448
835 6.750 Due 05/31/99 843
640 6.875 Due 08/31/99 648
175 6.250 Due 05/31/00 174
1,325 7.750 Due 02/15/01 1,382
1,550 6.625 Due 06/30/01 1,558
1,525 6.625 Due 07/31/01 1,533
800 6.250 Due 02/15/03 789
- -------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $7,437) $ 7,375
- -------------------------------------------------------------
FLOATING RATE BANK NOTES--3.5%--
Lloyds Bank PLC
$1,000 5.875% Due 06/13/97 $ 914
National Westminster Bank
1,100 5.938 Due 08/29/97 984
- -----------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,848) $ 1,898
- -----------------------------------------------------------
SHORT-TERM INVESTMENT--3.8%
Bank of Tokyo-Mitsubishi, Grand Cayman
$2,085 5.750% Due 06/02/97 $ 2,085
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,085) $ 2,085
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.2%
(Cost $44,912) $54,271
- -----------------------------------------------------------
Other assets, less liabilities--0.8% 435
- -----------------------------------------------------------
NET ASSETS--100.0% $54,706
- -----------------------------------------------------------
- -----------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--94.3%
BANKING--2.0%
66,940 Banc One Corp. $ 2,895
--------
BROKERAGE SERVICES--2.8%
98,000 Schwab (Charles) Corp. 3,981
--------
CHEMICALS AND ALLIED PRODUCTS--13.7%
40,000 Abbott Laboratories 2,520
45,700 Air Products and Chemicals, Inc. 3,553
15,000 du Pont (E.I.) de Nemours & Co. 1,633
30,400 Merck & Co., Inc. 2,732
47,837 Morton International, Inc. 1,543
16,600 Pfizer, Inc. 1,708
60,500 Praxair, Inc. 3,184
17,900 Procter & Gamble Co. 2,468
--------
19,341
--------
COMMUNICATIONS--2.2%
49,000 Ameritech Corp. 3,209
--------
COMPUTERS AND OFFICE MACHINES--5.3%
26,300 Cisco Systems, Inc.* 1,782
17,000 Compaq Computer Corp.* 1,840
31,800 Microsoft Corp.* 3,943
--------
7,565
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--11.7%
35,000 Emerson Electric Co. 1,890
91,000 General Electric Co. 5,494
22,400 Intel Corp. 3,394
53,900 Linear Technology Corp. 2,702
45,000 Motorola, Inc. 2,987
--------
16,467
--------
FOOD AND BEVERAGES--8.2%
54,000 Coca-Cola (The) Co. 3,686
55,800 PepsiCo, Inc. 2,051
78,000 Philip Morris Cos., Inc. 3,432
75,000 Starbucks Corp.* 2,362
--------
11,531
--------
GLASS, CLAY AND STONE PRODUCTS--2.3%
84,700 Newell Co. 3,240
--------
HEALTH SERVICES--2.4%
35,000 Health Management Associates, Inc., Class A* 1,024
39,000 Johnson & Johnson Co. 2,335
--------
3,359
--------
INDUSTRIAL INSTRUMENTS--1.3%
36,600 Hewlett-Packard Co. 1,885
--------
INSURANCE SERVICES--4.1%
23,900 American International Group, Inc. 3,235
23,400 MBIA, Inc. 2,513
--------
5,748
--------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
MORTGAGE AGENCIES--2.8%
89,700 Federal National Mortgage Association $ 3,913
--------
OIL AND GAS--12.0%
42,000 Chevron Corp. 2,940
72,800 Exxon Corp. 4,313
29,850 Mobil Corp. 4,175
13,700 Royal Dutch Petroleum Co. ADR 2,675
24,400 Schlumberger Ltd. ADR 2,907
--------
17,010
--------
PAPER PRODUCTS--2.2%
61,000 Kimberly-Clark Corp. 3,058
--------
PROFESSIONAL SERVICES--5.2%
34,200 Cintas Corp. 2,120
22,400 Computer Sciences Corp.* 1,733
31,936 First Data Corp. 1,277
46,300 Oracle Systems Corp.* 2,159
--------
7,289
--------
RECREATION AND LEISURE SERVICES--2.3%
85,900 Carnival Corp., Class A 3,264
--------
RETAIL--11.1%
56,700 Home Depot (The), Inc. 3,572
127,850 Staples, Inc.* 2,813
23,500 Tommy Hilfiger Corp.* 1,046
112,700 Wal-Mart Stores, Inc. 3,353
104,300 Walgreen Co. 4,876
--------
15,660
--------
TRANSPORTATION PARTS AND EQUIPMENT--2.7%
36,000 Boeing (The) Co. 3,789
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $87,025) $133,204
- -------------------------------------------------------------------------------
OTHER INVESTMENT--3.6%
60,000 Standard & Poor's Depository Receipt Unit Trust, Series:
1 $ 5,107
- -------------------------------------------------------------------------------
TOTAL OTHER INVESTMENT (Cost $4,815) $ 5,107
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--1.7%
$ 2,365 Bank of Tokyo-Mitsubishi, Grand Cayman 5.750% Due 06/02/97 $ 2,365
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,365) $ 2,365
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(Cost $94,205) $140,676
- -------------------------------------------------------------------------------
Other assets, less liabilities--0.4% 598
- -------------------------------------------------------------------------------
NET ASSETS--100.0% $141,274
- -------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security.
See accompanying notes to financial statements.
27
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--101.3%
AGRICULTURE--0.1%
10,700 Pioneer Hi-Bred International, Inc. $ 746
--------
APPAREL--0.1%
9,200 Liz Claiborne, Inc. 420
8,200 VF Corp. 641
--------
1,061
--------
BANKING--7.6%
13,700 Ahmanson (H. F.) & Co. 558
55,349 Banc One Corp. 2,394
19,800 Bank of Boston Corp. 1,445
50,800 Bank of New York Co., Inc. 2,165
46,476 BankAmerica Corp. 5,432
10,600 Bankers Trust New York Corp. 897
27,000 Barnett Banks, Inc. 1,421
56,846 Chase Manhattan Corp. 5,372
60,000 Citicorp 6,862
13,900 Comerica, Inc. 869
28,900 Corestates Financial Corp. 1,528
13,700 Fifth Third Bancorp 1,058
17,400 First Bank System, Inc. 1,427
41,307 First Chicago NBD Corp. 2,447
36,715 First Union Corp. 3,153
7,400 Golden West Financial Corp. 501
17,800 Great Western Financial Corp. 863
29,200 KeyCorp 1,588
16,750 Mellon Bank Corp. 1,466
24,000 Morgan (J. P.) & Co., Inc. 2,580
28,900 National City Corp. 1,488
94,560 NationsBank Corp. 5,567
47,900 Norwest Corp. 2,563
43,400 PNC Bank Corp. 1,817
7,100 Republic New York Corp. 708
28,900 SunTrust Banks, Inc. 1,543
19,600 U.S. Bancorp 1,203
21,400 Wachovia Corp. 1,303
11,966 Wells Fargo & Co. 3,153
--------
63,371
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--
0.1%
30,300 Houston Industries, Inc. 629
1,100 NACCO Industries, Inc. 56
--------
685
--------
BROKERAGE AND FINANCIAL SERVICES--1.4%
61,300 American Express Co. 4,260
34,001 Fleet Financial Group, Inc. 2,078
17,800 Green Tree Financial Corp. 623
21,300 Merrill Lynch & Co., Inc. 2,258
19,700 Morgan Stanley Group, Inc. 1,330
14,100 Salomon, Inc. 756
--------
11,305
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
CHEMICALS AND ALLIED PRODUCTS--10.9%
100,500 Abbott Laboratories $ 6,331
14,500 Air Products and Chemicals, Inc. 1,127
8,500 Allergan, Inc. 252
82,700 American Home Products Corp. 6,306
34,200 Amgen, Inc.* 2,287
35,300 Baxter International, Inc. 1,862
129,600 Bristol-Myers Squibb Co. 9,509
6,700 Clorox Co. 846
38,000 Colgate-Palmolive Co. 2,356
31,400 Dow Chemical Co. 2,618
72,900 du Pont (E.I.) de Nemours & Co. 7,937
10,075 Eastman Chemical Co. 599
8,400 Ecolab, Inc. 350
71,398 Lilly (Eli) & Co. 6,640
4,800 FMC Corp.* 346
6,900 Goodrich (B.F.) Co. 297
9,400 Grace (W.R.) & Co. 491
7,800 Great Lakes Chemical Corp. 381
13,200 Hercules, Inc. 619
14,300 International Flavors & Fragrances, Inc. 635
156,000 Merck & Co., Inc. 14,020
18,400 Morton International, Inc. 593
8,700 Nalco Chemical Co. 323
83,400 Pfizer, Inc. 8,580
65,720 Pharmacia & Upjohn, Inc. 2,276
23,700 PPG Industries, Inc. 1,378
20,200 Praxair, Inc. 1,063
8,300 Rohm & Haas Co. 716
47,800 Schering-Plough Corp. 4,338
22,200 Sherwin-Williams Co. 666
12,900 Sigma-Aldrich Corp. 395
16,500 Union Carbide Corp. 771
35,100 Warner-Lambert Co. 3,536
--------
90,444
--------
COMMUNICATIONS--7.6%
64,900 AirTouch Communications, Inc.* 1,809
24,200 Alltel Corp. 796
71,100 Ameritech Corp. 4,657
209,700 AT&T Corp. 7,733
56,700 Bell Atlantic Corp. 3,969
128,300 Bellsouth Corp. 5,822
42,200 Comcast Corp., Class A Special 733
21,200 Frontier Corp. 390
124,500 GTE Corp. 5,494
82,564 Lucent Technologies, Inc. 5,253
9,600 Mallinckrodt, Inc. 359
88,600 MCI Communications Corp. 3,400
56,900 Nynex Corp. 3,058
12,100 Providian Corp. 724
118,656 SBC Communications, Inc. 6,941
55,700 Sprint Corp. 2,722
23,200 Tellabs, Inc.* 1,166
80,800 US WEST Media Group* 1,606
62,000 US WEST Communications Group 2,271
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
45,800 Viacom, Inc., Class B* $ 1,360
112,000 Worldcom, Inc.* 3,318
--------
63,581
--------
COMPUTERS AND OFFICE MACHINES--6.5%
9,300 Adobe Systems, Inc. 415
15,600 Amdahl Corp.* 156
16,100 Apple Computer, Inc.* 268
25,500 Bay Networks, Inc.* 625
20,200 Cabletron Systems, Inc.* 889
10,400 Ceridian Corp.* 382
85,100 Cisco Systems, Inc.* 5,766
35,000 Compaq Computer Corp.* 3,789
5,200 Data General Corp.* 111
22,700 Dell Computer Corp.* 2,554
20,400 Digital Equipment Corp.* 732
31,800 EMC Corp.* 1,268
6,100 Intergraph Corp.* 43
134,000 International Business Machines Corp. 11,591
155,700 Microsoft Corp.* 19,307
16,500 Parametric Technology Corp.* 740
19,200 Pitney Bowes, Inc. 1,349
32,000 Seagate Technology, Inc.* 1,300
22,800 Silicon Graphics, Inc.* 430
15,300 Tandem Computers, Inc.* 218
7,500 Tandy Corp. 405
22,800 3Com Corp.* 1,106
22,600 Unisys Corp.* 155
--------
53,599
--------
CONSTRUCTION--0.2%
14,600 Dover Corp. 836
22,800 Dresser Industries, Inc. 781
--------
1,617
--------
CONSUMER PRODUCTS--5.7%
17,200 Avon Products, Inc. 1,097
71,800 Gillette Co. 6,381
172,400 Johnson & Johnson 10,322
73,084 Kimberly-Clark Corp.* 3,663
316,200 Philip Morris Cos., Inc.* 13,913
87,900 Procter & Gamble Co. 12,119
--------
47,495
--------
CREDIT INSTITUTIONS--0.7%
7,000 Beneficial Corp. 450
41,644 Dean Witter Discover & Co. 1,718
12,600 Household International, Inc. 1,238
43,225 MBNA Corp. 1,464
7,600 MGIC Investment Corp. 676
--------
5,546
--------
ELECTRICAL SERVICES--2.3%
24,300 American Electric Power Co. 990
19,100 Baltimore Gas & Electric Co. 501
19,600 Carolina Power & Light Co. 681
27,300 Central & South West Corp. 580
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
20,410 Cinergy Corp. $ 714
30,400 Consolidated Edison Co. of New York, Inc. 885
23,300 Dominion Resources, Inc. 807
18,800 DTE Energy Co. 501
26,100 Duke Power Co. 1,174
56,100 Edison International 1,311
29,900 Entergy Corp. 789
23,700 FPL Group, Inc. 1,102
15,600 GPU, Inc. 546
18,700 Niagara Mohawk Power Corp.* 164
8,900 Northern States Power Co. 436
19,700 Ohio Edison Co. 419
38,100 PacifiCorp 757
28,800 Peco Energy Co. 547
53,400 PG&E Corp. 1,235
21,000 PP&L Resources, Inc. 423
30,900 Public Service Enterprise Group, Inc. 765
87,200 Southern Co. 1,853
29,100 Texas Utilities Co. 1,000
27,900 Unicom Corp. 635
13,200 Union Electric Co. 483
--------
19,298
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--8.1%
17,700 Advanced Micro Devices, Inc.* 708
28,456 AMP, Inc. 1,170
11,730 Andrew Corp.* 320
23,400 Applied Materials, Inc.* 1,527
15,300 Cooper Industries, Inc. 780
15,200 DSC Communications Corp.* 389
57,900 Emerson Electric Co. 3,127
426,200 General Electric Co. 25,732
17,700 General Instrument Corp.* 429
5,000 Harris Corp. 443
106,200 Intel Corp. 16,089
15,100 ITT Corp.* 900
18,200 LSI Logic Corp.* 760
13,000 Maytag Corp. 348
27,100 Micron Technology, Inc.* 1,152
76,700 Motorola, Inc. 5,091
18,100 National Semiconductor Corp.* 509
5,900 National Service Industries, Inc. 259
33,400 Northern Telecom Ltd. 2,806
5,800 Raychem Corp. 430
10,000 Scientific-Atlanta, Inc. 181
85,900 Tele-Communications, Inc.* 1,299
24,600 Texas Instruments, Inc. 2,211
6,900 Thomas & Betts Corp. 351
9,600 Whirlpool Corp. 479
--------
67,490
--------
FOOD AND BEVERAGES--7.7%
64,600 Anheuser-Busch Cos., Inc. 2,770
70,309 Archer-Daniels-Midland Co. 1,406
8,900 Brown-Forman Corp., Class B 455
60,500 Campbell Soup Co. 2,783
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
FOOD AND BEVERAGES--CONTINUED
322,000 Coca-Cola (The) Co. $ 21,976
31,050 ConAgra, Inc. 1,867
4,900 Coors (Adolph) Co., Class B 119
18,600 CPC International, Inc. 1,600
20,900 General Mills, Inc. 1,322
47,700 Heinz (H.J.) Co. 2,051
19,900 Hershey Foods Corp. 1,117
27,300 Kellogg Co. 2,013
90,300 McDonalds Corp. 4,538
201,100 PepsiCo, Inc. 7,390
17,600 Quaker Oats Co. 726
13,800 Ralston-Ralston Purina Group 1,176
62,300 Sara Lee Corp. 2,547
48,000 Seagram (The) Co. Ltd. 1,932
20,700 Unilever N.V. 4,011
24,100 UST, Inc. 687
13,400 Whitman Corp. 323
15,000 Wrigley (Wm.) Jr. Co. 889
--------
63,698
--------
FURNITURE AND FIXTURES--0.1%
20,800 Masco Corp. 809
--------
GENERAL BUILDING CONTRACTORS--0.2%
3,700 Centex Corp. 148
16,400 Honeywell, Inc. 1,193
5,000 Kaufman & Broad Home Corp. 75
--------
1,416
--------
GLASS, CLAY AND STONE PRODUCTS--0.3%
29,600 Corning, Inc. 1,491
20,600 Newell Co. 788
--------
2,279
--------
HEALTH SERVICES--1.2%
10,900 Alza Corp.* 322
12,900 Beverly Enterprises, Inc.* 182
86,895 Columbia/HCA Healthcare Corp. 3,183
9,600 Guidant Corp. 745
40,800 HEALTHSOUTH Corp.* 933
21,000 Humana, Inc.* 475
8,150 Manor Care, Inc. 233
31,100 Medtronic, Inc. 2,301
11,800 St. Jude Medical, Inc.* 400
39,000 Tenet Healthcare Corp.* 1,072
--------
9,846
--------
HEAVY CONSTRUCTION--0.2%
10,900 Fluor Corp. 576
5,300 Foster Wheeler Corp. 205
16,200 Halliburton Co. 1,253
--------
2,034
--------
INDUSTRIAL INSTRUMENTS--2.4%
7,400 Bard (C.R.), Inc. 237
7,200 Bausch & Lomb, Inc. 290
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
15,900 Becton, Dickinson & Co. $ 783
14,800 Biomet, Inc. 277
25,100 Boston Scientific Corp.* 1,340
43,100 Eastman Kodak Co. 3,572
131,300 Hewlett-Packard Co. 6,762
10,800 Johnson Controls, Inc. 458
5,600 Millipore Corp. 242
5,600 Perkin-Elmer Corp. 426
5,900 Polaroid Corp. 301
30,500 Raytheon Co. 1,456
4,300 Tektronix, Inc. 247
9,100 United States Surgical Corp. 307
42,000 Xerox Corp., Inc. 2,845
--------
19,543
--------
INSURANCE SERVICES--4.6%
19,557 Aetna, Inc. 1,975
57,565 Allstate Corp. 4,238
26,300 American General Corp. 1,164
60,775 American International Group, Inc. 8,227
21,000 AON Corp. 1,024
22,500 Chubb Corp. 1,373
9,700 CIGNA Corp. 1,685
23,200 Conseco, Inc. 928
10,700 General Re Corp. 1,875
15,200 Hartford Financial Services Group 1,186
9,125 Jefferson-Pilot Corp. 581
13,500 Lincoln National Corp. 822
14,900 Loews Corp. 1,449
10,600 Marsh & McLennan Cos., Inc. 1,397
5,600 MBIA, Inc. 601
16,300 Safeco Corp. 709
10,700 St. Paul Cos., Inc. 766
9,150 Torchmark Corp. 600
8,600 Transamerica Corp. 782
82,716 Travelers Group, Inc. 4,539
23,800 United Healthcare Corp. 1,345
9,500 UNUM Corp. 752
15,000 USF&G Corp. 323
4,400 USLIFE Corp. 215
--------
38,556
--------
JEWELRY AND PRECIOUS METALS--0.0%
5,000 Jostens, Inc. 123
--------
LEATHER PRODUCTS--0.0%
6,400 Stride Rite Corp. 98
--------
LUMBER AND WOOD PRODUCTS--0.0%
14,100 Louisiana-Pacific Corp. 275
--------
MACHINERY--1.4%
18,800 Baker Hughes, Inc. 705
12,200 Black & Decker Corp. 424
3,700 Briggs & Stratton Corp. 191
12,700 Brunswick Corp. 387
9,500 Case Corp. 560
24,800 Caterpillar, Inc. 2,421
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
5,200 Cincinnati Milacron, Inc. $ 120
5,100 Cummins Engine Co., Inc. 325
33,100 Deere & Co. 1,692
6,500 General Signal Corp. 274
4,300 Giddings & Lewis, Inc. 81
6,400 Harnischfeger Industries, Inc. 274
14,200 Ingersoll-Rand Co. 774
22,100 Tenneco, Inc. 989
19,300 Thermo Electron Corp.* 666
4,000 Timken (The) Co. 274
21,600 Tyco International Ltd. 1,372
--------
11,529
--------
MANUFACTURING--0.1%
3,600 Aeroquip-Vickers, Inc. 156
7,200 Alberto-Culver Co., Class B 205
15,300 ITT Industries, Inc. 379
2,700 Pulte Corp. 85
--------
825
--------
MERCHANDISE GENERAL--0.1%
7,900 Snap-On, Inc. 315
11,500 Stanley Works (The) 471
--------
786
--------
METAL MINING--0.6%
46,200 Barrick Gold Corp. 1,167
29,100 Battle Mountain Gold Co. 178
12,050 Cyprus Amax Minerals Co. 294
17,900 Echo Bay Mines Ltd.* 110
25,000 Freeport-McMoRan Copper & Gold, Inc., Class B 728
19,000 Homestake Mining Co. 264
21,800 Inco Ltd. 719
20,197 Newmont Mining Corp. 790
31,000 Placer Dome, Inc. 566
--------
4,816
--------
METAL PRODUCTS--0.2%
22,527 Allegheny Teledyne, Inc. 580
3,900 Ball Corp. 114
5,900 Crane Co. 242
7,100 McDermott International, Inc. 197
9,650 Parker-Hannifin Corp. 508
--------
1,641
--------
MORTGAGE AGENCIES--1.1%
92,600 Federal Home Loan Mortgage Corp. 3,056
141,300 Federal National Mortgage Association 6,164
--------
9,220
--------
NATURAL GAS TRANSMISSION--0.7%
13,600 Coastal Corp. 682
7,100 Columbia Gas System, Inc. 457
12,300 Consolidated Natural Gas Co. 653
2,600 Eastern Enterprises 90
32,900 Enron Corp. 1,341
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
9,000 Enserch Corp. $ 192
6,400 Nicor, Inc. 220
17,800 Noram Energy Corp. 271
3,500 Oneok, Inc. 106
11,000 Pacific Enterprises 360
4,500 Peoples Energy Corp. 160
11,200 Sonat, Inc. 644
20,350 Williams Company, Inc. 898
--------
6,074
--------
OFFICE EQUIPMENT--0.1%
17,400 Ikon Office Solutions, Inc. 505
--------
OIL AND GAS--5.7%
16,200 Burlington Resources, Inc. 753
84,400 Chevron Corp. 5,908
321,400 Exxon Corp. 19,043
3,200 Helmerich & Payne, Inc. 180
4,400 Louisiana Land & Exploration Co. 227
42,600 Occidental Petroleum Corp. 990
13,600 Oryx Energy Co.* 314
19,600 Panenergy Corp. 916
11,100 Rowan Cos., Inc.* 257
69,400 Royal Dutch Petroleum Co. ADR 13,550
12,900 Santa Fe Energy Resources, Inc.* 195
31,900 Schlumberger Ltd. ADR 3,800
32,376 Union Pacific Resources Group, Inc. 935
6,900 Western Atlas, Inc.* 467
--------
47,535
--------
PACKAGING AND CONTAINER PRODUCTS--0.1%
16,600 Crown Cork & Seal Co., Inc. 967
--------
PAPER PRODUCTS--1.6%
13,500 Avery Dennison Corp. 508
6,800 Bemis Co., Inc. 272
6,300 Boise Cascade Co. 239
12,400 Champion International Corp. 612
11,800 Georgia-Pacific Corp. 1,041
38,835 International Paper Co. 1,864
11,100 James River Corp. 390
6,800 Mead Corp. 433
54,100 Minnesota Mining & Manufacturing Co. 4,964
12,804 Stone Container Corp. 176
7,200 Temple Inland, Inc. 436
9,000 Union Camp Corp. 472
13,150 Westvaco Corp. 411
25,700 Weyerhaeuser Co. 1,282
--------
13,100
--------
PERSONAL SERVICES--0.6%
13,500 Block (H&R), Inc. 445
20,400 HFS, Inc.* 1,099
32,000 Hilton Hotels Corp. 904
16,600 Marriot International, Inc. 959
30,500 Service Corp. International 1,075
7,200 Willamette Industries, Inc. 536
--------
5,018
--------
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares and number of contracts)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
PETROLEUM PRODUCTS--3.1%
12,100 Amerada Hess Corp. $ 647
64,400 Amoco Corp. 5,756
9,600 Ashland, Inc. 460
20,800 Atlantic Richfield Co. 3,026
6,300 Kerr-McGee Corp. 408
51,000 Mobil Corp. 7,134
6,000 Pennzoil Co. 332
34,100 Phillips Petroleum Co. 1,449
9,400 Sun Co., Inc. 281
34,200 Texaco, Inc. 3,732
32,400 Unocal Corp. 1,381
37,200 USX--Marathon Group 1,107
--------
25,713
--------
PRINTING AND PUBLISHING--1.3%
97,00 American Greetings Corp. 332
10,700 Deluxe Corp. 348
19,500 Donnelley (R.R.) & Sons Co. 724
12,500 Dow Jones & Co., Inc. 486
18,200 Gannett Co., Inc. 1,683
4,000 Harland (John H.) Co. 91
12,100 Knight-Ridder, Inc. 522
12,900 McGraw Hill Cos., Inc. 705
6,900 Meredith Corp. 179
11,400 Moore Corp. Ltd. 254
12,500 New York Times Co. 576
73,600 Time Warner, Inc. 3,422
12,100 Times Mirror Co. 679
15,900 Tribune Co. 688
--------
10,689
--------
PROFESSIONAL SERVICES--1.9%
6,200 Autodesk, Inc. 241
37,800 Automatic Data Processing, Inc. 1,857
46,950 Computer Associates International, Inc. 2,571
9,900 Computer Sciences Corp.* 766
51,325 CUC International, Inc.* 1,180
57,900 First Data Corp. 2,316
10,500 Interpublic Group of Cos., Inc. 629
44,800 Novell, Inc.* 353
87,500 Oracle Corp.* 4,080
9,800 Ryder System, Inc. 325
7,500 Safety-Kleen Corp. 117
3,000 Shared Medical Systems Corp. 159
47,600 Sun Microsystems, Inc.* 1,535
--------
16,129
--------
RECREATION AND LEISURE SERVICES--1.1%
87,400 Disney (Walt) Co. 7,156
9,200 Harcourt General, Inc. 436
13,300 Harrah's Entertainment, Inc.* 248
4,800 King World Productions, Inc.* 181
37,345 Mattel, Inc. 1,116
--------
9,137
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
RESEARCH AND CONSULTING SERVICES--0.2%
22,000 Cognizant Corp. $ 814
22,000 Dun & Bradstreet Corp. 575
6,100 EG&G, Inc. 119
--------
1,508
--------
RETAIL--4.9%
32,500 Albertson's, Inc. 1,089
18,900 American Stores Co. 860
19,500 Autozone, Inc.* 456
13,500 Charming Shoppes, Inc.* 71
12,700 Circuit City Stores, Inc. 502
27,203 Costco Cos., Inc.* 918
13,700 CVS Corp. 656
20,700 Darden Restaurants, Inc. 173
28,100 Dayton-Hudson Corp. 1,352
14,700 Dillard Department Stores, Inc. 496
26,900 Federated Department Stores, Inc.* 995
36,100 Gap, Inc. 1,236
7,700 Giant Food, Inc. 254
4,900 Great Atlantic & Pacific Tea Co., Inc. 135
16,775 Hasbro, Inc. 486
62,200 Home Depot (The), Inc. 3,919
62,700 Kmart Corp.* 878
32,700 Kroger Co.* 838
35,100 Limited, Inc. (The) 711
5,000 Longs Drug Stores, Inc. 119
22,400 Lowe's Cos., Inc. 882
31,700 May Department Stores Co. 1,494
4,800 Mercantile Stores Co., Inc. 258
37,300 Nike, Inc. 2,126
10,400 Nordstrom, Inc. 499
32,000 Penney (J.C.) Co., Inc. 1,648
7,800 Pep Boys--Manny, Moe & Jack 244
7,200 Reebok International, Ltd.* 295
15,900 Rite Aid Corp. 739
50,700 Sears, Roebuck & Co. 2,491
8,700 SUPERVALU, Inc. 290
10,100 TJX Cos., Inc. 485
37,600 Toys "R" Us, Inc.* 1,170
296,900 Wal-Mart Stores, Inc. 8,833
31,900 Walgreen Co. 1,491
16,700 Wendy's International, Inc. 390
19,400 Winn-Dixie Stores, Inc. 742
17,300 Woolworth Corp.* 417
--------
40,638
--------
RUBBER AND PLASTICS--0.7%
5,300 Armstrong World Industries, Inc. 360
10,200 Cooper Tire & Rubber Co. 228
20,100 Goodyear Tire & Rubber Co. 1,176
76,100 Monsanto Co. 3,348
19,400 Rubbermaid, Inc. 541
8,100 Tupperware Corp. 294
--------
5,947
--------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
SANITARY SERVICES--0.4%
27,600 Browning-Ferris Industries, Inc. $ 904
40,600 Laidlaw, Inc. 548
58,580 WMX Technologies, Inc. 1,860
--------
3,312
--------
SERVICE INDUSTRY MACHINERY--0.2%
16,266 Pall Corp. 384
78,200 Westinghouse Electric Corp. 1,584
--------
1,968
--------
STEEL PRODUCTS--0.8%
29,300 Alcan Aluminium Ltd. 1,051
22,400 Aluminum Co. of America 1,649
13,700 Armco, Inc.* 51
5,500 Asarco, Inc. 171
14,500 Bethlehem Steel Corp.* 145
18,587 Engelhard Corp. 402
6,300 Inland Steel Industries, Inc. 155
11,400 Nucor Corp. 673
6,700 Owens Corning Fiberglass Corp. 280
8,400 Phelps Dodge Corp. 702
9,400 Reynolds Metals Co. 638
11,000 USX-U.S. Steel Group 355
12,475 Worthington Industries, Inc. 231
--------
6,503
--------
TEXTILES--0.1%
10,000 Fruit of the Loom, Inc.* 349
5,000 Russell Corp. 153
2,600 Springs Industries, Inc., Class A 132
--------
634
--------
TOBACCO PRODUCTS--0.1%
22,000 American Brands, Inc. 1,078
--------
TRANSPORTATION PARTS AND EQUIPMENT--4.5%
36,600 AlliedSignal, Inc. 2,809
176 Autoliv, Inc. 7
46,355 Boeing Co. 4,879
90,900 Chrysler Corp. 2,886
13,200 Dana Corp. 477
10,000 Eaton Corp. 798
8,100 Echlin, Inc. 270
4,600 Fleetwood Enterprises, Inc. 124
153,400 Ford Motor Co. 5,752
8,200 General Dynamics Corp. 614
97,800 General Motors Corp. 5,599
32,000 Illinois Tool Works, Inc. 1,588
24,954 Lockheed Martin Corp.* 2,336
27,500 McDonnell Douglas Corp. 1,770
9,420 Navistar International Corp.* 157
7,500 Northrop Grumman Corp. 636
10,120 PACCAR, Inc. 458
28,300 Rockwell International Corp. 1,825
10,700 Textron, Inc. 1,268
16,400 TRW, Inc. 877
30,700 United Technologies Corp. 2,468
--------
37,598
--------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ---------------------------------------------------------
<C> <S> <C>
TRANSPORTATION SERVICES--1.3%
11,800 AMR Corp.* $ 1,173
19,765 Burlington Northern Santa Fe Corp. 1,640
5,100 Caliber System, Inc. 163
28,100 CSX Corp. 1,489
9,500 Delta Air Lines, Inc. 891
14,800 Federal Express Corp.* 775
16,200 Norfolk Southern Corp. 1,573
18,800 Southwest Airlines Co. 484
31,700 Union Pacific Corp. 2,148
8,300 USAir Group* 288
--------
10,624
--------
<PAGE>
WHOLESALE--0.4%
14,100 Cardinal Health, Inc. 821
4,900 Fleming Cos., Inc. 93
23,375 Genuine Parts Co. 783
6,900 Grainger (W.W.), Inc. 554
3,700 Potlatch Corp. 159
22,900 Sysco Corp. 799
--------
3,209
- -----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $573,604) $841,618
- -----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 1,205 5.260% Due 06/26/97 $ 1,191
- -----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,191) $ 1,191
- -----------------------------------------------------------------------------
SHORT-TERM INVESTMENT--1.8%
Bank of Tokyo-Mitsubishi, Grand Cayman
$15,075 5.750% Due 06/02/97 $ 15,075
- -----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $15,075) $ 15,075
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS--103.2%
(Cost $589,870) $857,884
- -----------------------------------------------------------------------------
Liabilities, less other assets--(3.2)% (27,034)
- -----------------------------------------------------------------------------
NET ASSETS--100.0% $830,850
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</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 38 $15,337 Long 06/20/97 $780
- -------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
33
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
FOCUSED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--94.5%
BANKING--5.1%
19,200 Chase Manhattan Corp. $ 1,814
22,300 MBNA Corp. 755
54,800 State Street Bank Boston Corp. 2,445
4,575 Wells Fargo & Co. 1,206
--------
6,220
--------
CHEMICALS AND ALLIED PRODUCTS--18.3%
24,400 Abbott Laboratories 1,537
16,500 American Home Products Corp. 1,258
36,600 Bristol Myers Squibb Co. 2,686
20,300 du Pont (E.I.) de Nemours & Co. 2,210
20,100 Lilly (Eli) & Co. 1,869
44,900 Merck & Co., Inc. 4,035
22,800 Pfizer, Inc. 2,346
26,700 Procter & Gamble Co. 3,681
12,600 Schering-Plough Corp. 1,143
15,000 Warner-Lambert Co. 1,511
--------
22,276
--------
COMMUNICATIONS--2.2%
23,700 Lucent Technologies, Inc. 1,508
19,900 SBC Communications, Inc. 1,164
--------
2,672
--------
COMPUTERS AND OFFICE MACHINES--12.1%
37,100 Cisco Systems, Inc.* 2,514
26,500 Compaq Computer Corp.* 2,869
20,700 Computer Sciences Corp.* 1,602
32,800 Hewlett-Packard Co. 1,689
48,700 Microsoft Corp.* 6,038
--------
14,712
--------
CONSUMER PRODUCTS--1.6%
22,300 Gillette Co. 1,982
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
9.3%
115,200 General Electric Co. 6,955
29,000 Intel Corp. 4,394
--------
11,349
--------
FINANCIAL--3.3%
46,400 Federal National Mortgage Association 2,024
50,000 Schwab Charles Corp. 2,031
--------
4,055
--------
FOOD AND BEVERAGES--12.5%
91,100 Coca-Cola (The) Co. 6,218
52,900 PepsiCo, Inc. 1,944
105,900 Philip Morris Cos., Inc. 4,660
77,000 Starbucks Corp.* 2,425
--------
15,247
--------
GLASS, CLAY AND STONE PRODUCTS--1.0%
33,000 Newell Co. 1,262
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
HEALTH SERVICES--4.7%
53,600 Johnson & Johnson Co. $ 3,209
34,200 Medtronic, Inc. 2,531
--------
5,740
--------
INDUSTRIAL INSTRUMENTS--0.8%
12,300 Eastman Kodak Co. 1,019
--------
INSURANCE SERVICES--4.0%
17,300 American International Group, Inc. 2,342
23,800 MBIA, Inc. 2,556
--------
4,898
--------
OIL AND GAS--1.0%
10,200 Schlumberger Ltd. ADR 1,215
--------
PAPER PRODUCTS--0.9%
21,000 Kimberly-Clark Corp. 1,053
--------
PRINTING AND PUBLISHING--0.6%
16,700 Time Warner, Inc. 777
--------
PROFESSIONAL SERVICES--3.7%
20,600 Cintas Corp. 1,277
14,700 First Data Corp. 588
85,000 Olsten Corp. 1,668
22,200 Oracle Corp.* 1,035
--------
4,568
--------
RECREATION AND LEISURE SERVICES--3.2%
51,300 Carnival Corp., Class A 1,949
24,000 Disney (The Walt) Co. 1,965
--------
3,914
--------
RETAIL--8.4%
16,000 Home Depot (The) Inc. 1,008
46,700 Kohls Corp.* 2,516
15,000 Nike, Inc.* 855
81,000 Staples, Inc.* 1,782
13,300 Tommy Hilfiger Corp.* 592
4,300 Unilever N.V. 833
14,000 Walgreen Co. 655
70,000 Wal-Mart Stores, Inc. 2,083
--------
10,324
--------
TRANSPORTATION PARTS AND EQUIPMENT--1.8%
20,700 Boeing (The) Co. 2,179
- ------------------------------------------------------
TOTAL COMMON STOCKS (Cost $93,230) $115,462
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ------------------------------------------------------------
<C> <S> <C>
OTHER INVESTMENT--3.3%
48,000 Standard & Poor's Depository Receipt
Unit Trust, Series: 1 $ 4,086
- ------------------------------------------------------------
TOTAL OTHER INVESTMENT (Cost $3,737) $ 4,086
- ------------------------------------------------------------
SHORT-TERM INVESTMENT--1.8%
Bank of Tokyo-Mitsubishi, Grand Cayman
$2,222 5.750% Due 06/02/97 $ 2,222
- ------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,222) $ 2,222
- ------------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(Cost $99,189) $121,770
- ------------------------------------------------------------
Other assets, less liabilities--0.4% 439
- ------------------------------------------------------------
NET ASSETS--100.0% $122,209
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
35
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--95.0%
AUSTRALIA--2.7%
200 Aberfoyle Ltd. $ 1
1,600 Amcor Ltd. 10
500 Ashton Mining Ltd. 1
1,500 Australian National Industries Ltd. 2
700 Australian Gas Light Co. Ltd. 4
2,900 Boral Ltd. 9
600 Brambles Industries Ltd. 11
5,000 Broken Hill Proprietary Co. Ltd. 72
1,300 Burns Philp & Co. Ltd. 2
1,400 Coca-Cola Amatil Ltd. 16
2,700 Coles Myer Ltd. 13
800 CRA Ltd. 13
1,600 Crown Ltd.* 3
2,500 CSR Ltd. 9
700 David Jones Ltd. 1
200 Delta Gold NL 0
700 Email Ltd. 2
200 Faulding (F.H.) & Co. Ltd. 1
4,900 Foster's Brewing Group Ltd. 10
800 Futuris Corp. Ltd. 1
2,900 General Property Trust Units 6
1,500 Gio Australia Holdings Ltd. 4
3,000 Goodman Fielder Ltd. 4
500 Great Central Mines Ltd. 1
1,000 Hardie (James) Industries Ltd. 3
750 Ici Australia Ltd. 7
500 Leighton Holdings Ltd. 2
650 Lend Lease Corp. Ltd. 13
4,100 M.I.M. Holdings Ltd. 6
300 Metal Manufactures Ltd. 1
3,700 National Australia Bank 53
400 Newcrest Mining Ltd. 1
5,000 News Corp. Ltd. 22
4,000 Normandy Mining Ltd. 5
1,800 North Ltd. 7
2,600 Pacific Dunlop Ltd. 7
2,200 Pioneer International Ltd. 7
300 Plutonic Resources Ltd. 1
600 QBE Insurance Group Ltd. 4
1,200 QCT Resources Ltd. 1
400 Resolute Ltd. 1
400 RGC Ltd. 2
300 Rothmans Holdings Ltd. 2
1,300 Santos Ltd. 5
700 Schroders Property Fund 1
450 Smith (Howard) Ltd. 4
200 Sons of Gwalia Ltd. 1
1,500 Southcorp Holdings Ltd. 6
600 Stockland Trust Group 2
800 TABCORP Holdings Ltd. 4
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------------
<C> <S> <C>
2,900 Westfield Trust $ 5
4,500 Westpac Banking Corp. Ltd. 24
2,800 WMC Ltd. 18
-------
411
-------
AUSTRIA--0.4%
5 Austria Mikro Systeme International A.G. 0
5 Austrian Airlines Osterreichische Luftverkehrs A.G.* 1
144 Bank Austria A.G. 9
12 Bank Austria A.G. (Partial Certificates) 0
8 Bau Holdings A.G. 1
28 Bohler-Uddeholm A.G. 2
3 BWT A.G. 0
74 Creditanstalt-Bankverein 4
18 Ea-Generali A.G. 4
50 Flughafen Wien A.G. 2
6 Lenzing 0
32 Mayr-Melnhof Karton A.G. 2
24 Oesterreichische Brau-Beteiligungs A.G. 1
78 Oesterreichische Elektrizitaetswirtschafts A.G. 6
68 OMV A.G. 9
36 Radex-Heraklith Industriebeteiligungs A.G. 2
20 Steyr-Daimler-Puch A.G. 1
9 Universale-Bau A.G. 0
38 VA Technologies A.G. 7
18 Wienerberger Baustoffindustrie A.G. 4
-------
55
-------
BELGIUM--1.2%
50 Barco Industries 9
6 Bekaert N.V. 3
40 CBR Cementbedrisven 4
98 Delhaize-Le Lion 5
150 Electrabel S.A. 34
100 Fortis A.G. 19
50 Generale de Banque S.A. 20
50 Gevaert N.V. 4
50 Groupe Bruxelles Lambert S.A. 8
33 Kredietbank N.V. 14
33 Kredietbank N.V., Rights* 0
60 Petrofina S.A. 21
39 Royale Belge 11
25 Solvay S.A. 15
25 Tractebel 11
50 Union Miniere Group 4
-------
182
-------
DENMARK--0.9%
33 Bang & Olufsen Holdings A/S 2
99 Carlsberg A/S, Class A 6
55 Carlsberg A/S, Class B 3
1 D/S 1912, Class B 35
154 Danisco A/S 9
200 Den Danske Bank 19
20 FLS Industries A/S, Class B 3
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
14 GN Store Nord A/S $ 2
66 International Service System A/S, Class B* 2
20 Nkt Holdings A/S 1
196 Novo-Nordisk A/S 21
48 Det Ostasiatiske Kompagni A/S* 1
33 Radiometer A/S, Class B 2
116 SAS Danmark A/S 1
15 Sophus Berendsen A/S, Class A 2
52 Sophus Berendsen A/S, Class B 8
90 Superfos A/S 2
336 Tele Danmark A/S 17
148 Unidanmark A/S, Class A 8
-------
144
-------
FINLAND--0.7%
300 Kemira Oy 3
300 Kesko 4
2,000 Merita Ltd., Class A 7
100 Metra Oy, Class A 3
100 Metra Oy, Class B 3
500 Nokia AB, Class A 33
300 Nokia AB, Class K 19
300 Outokumpu Oy, Class A 6
100 Pohjola Insurance Group, Class A 3
16 Rauma Group 0
100 Sampo Insurance Co. Ltd., Class A 9
700 Upm-Kymmene Corp. 16
-------
106
-------
FRANCE--6.4%
100 Accor S.A. 14
400 Alcatel Alsthom S.A. 43
800 AXA-UAP 48
550 Banque Nationale de Paris 23
50 Bouygues 4
60 Canal Plus 10
100 Carrefour S.A. 66
100 Casino Guichard-Perrachori 4
300 Cie Generale des Eaux 37
300 Cie Generale des Eaux Warrants* 0
50 Club Mediterranee 4
50 Compagnie Bancaire S.A. 5
220 Compagnie de Saint Gobain 30
400 Compagnie de Suez 20
275 Compagnie Financiere de Paribas 18
25 Compagnie Parisienne de Reescompte 2
10 Comptoirs Modernes 4
50 Credit National 3
300 CSF 9
200 Danone 30
700 Elf Aquitaine S.A. 70
50 Eridania Beghin-Say S.A. 7
20 Essilor International 5
5 Eurafrance S.A. 2
10 Groupe Saint Louis 2
200 Havas S.A. 14
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
50 Imetal S.A. $ 7
200 Lafarage S.A. 13
200 Lagardere S.C.A. 6
200 L'Air Liquide 31
70 Legrand S.A. 11
170 L'OREAL 62
220 LVMH Moet Hennessy Louis Vuitton 53
125 Lyonnaise des Eaux S.A. 12
310 Michelin, Class B 17
50 Moulinex 1
10 Pathe 2
100 Pernod-Ricard 5
150 Peugeot Citroen 15
50 Pinault Printemps-Redoute S.A. 21
50 Primagaz Cie 5
50 Promodes 17
850 Rhone-Poulenc, Class A 28
10 Sagem S.A. 5
50 Salomon 4
300 Sanofi S.A. 26
350 Schneider S.A. 17
50 SEFIMEG 4
100 SEITA 3
50 Sidel S.A. 4
25 Simco S.A. 2
100 Societe BIC S.A. 15
250 Societe Generale 28
50 Societe Technip 5
20 Sodexho Alliance S.A. 9
600 Total S.A., Class B 55
600 Usinor Sacilor 9
150 Valeo S.A. 9
-------
975
-------
GERMANY--8.2%
100 Adidas A.G. 11
560 Allianz A.G. 119
1,550 BASF A.G. 57
1,800 Bayer A.G. 70
650 Bayer Hypotheken-und Wechsel-Bank A.G. 21
650 Bayerische Vereinsbank A.G. 27
200 Beiersdorf A.G. 11
50 CKAG Colonia Konzern A.G. 5
1,300 Daimler-Benz A.G. 100
1,250 Deutsche Bank A.G. 69
800 Deutsche Lufthansa A.G. 13
5,500 Deutsche Telekom A.G. 122
50 Deutz A.G.* 0
850 Dresdner Bank A.G. 30
50 FAG Kugelfischer Georg Schaefer A.G. 1
100 Heidelbergerzement A.G. 9
150 Hochtief A.G. 6
20 Karstadt A.G. 7
20 Linde A.G. 14
50 Man A.G. 14
90 Mannesmann A.G. 37
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
GERMANY--Continued
<C> <S> <C>
300 Merck KGaA $ 12
250 Metro A.G. 27
50 Muenchener Ruckversicherungs-Gesellschaft A.G. 128
30 Preussag A.G. 8
850 RWE A.G. 36
150 SAP A.G. 27
150 Schering A.G. 15
50 SGL Carbon A.G. 7
1,400 Siemens A.G. 79
60 Thyssen A.G. 14
1,200 VEBA A.G. 68
50 Viag A.G. 23
80 Volkswagen A.G. 52
-------
1,239
-------
HONG KONG--3.7%
10,000 Applied International Holdings* 1
3,400 Bank of East Asia Ltd. 12
7,000 Cathay Pacific Airways 11
6,000 Cheung Kong Holdings Ltd. 61
6,500 China Light & Power Co. Ltd. 33
4,000 Chinese Estates Holdings 4
1,000 Dickson Concepts International Ltd 4
5,000 Elec & Eltek International Holdings Ltd. 1
2,000 Giordano International Ltd. 1
3,000 Hang Lung Development Co. 6
5,000 Hang Seng Bank Ltd. 60
9,200 Hong Kong China Gas Co. Ltd. 16
29,600 Hong Kong Telecommunications Ltd. 66
2,000 Hong Kong & Shanghai Hotels Ltd. 3
8,000 Hopewell Holdings Ltd. 4
10,000 Hutchinson Whampoa Ltd. 83
2,000 Hysan Development Co. Ltd. 7
1,000 Johnson Electric Holdings Ltd. 3
1,000 Kumagai Gum Ltd. 1
1,000 Miramar Hotel & Investment Ltd. 2
4,000 New World Development Co. Ltd. 25
2,000 Oriental Press Group 1
1,000 Peregrine Investments Holdings Ltd. 2
2,000 Playmates Toys Holdings 0
6,000 Regal Hotels International 2
3,000 Shangri-La Asia Ltd. 4
2,000 Shun Tak Holdings Ltd. 1
2,000 Stelux Holdings 0
4,000 South China Morning Post Holdings Ltd. 4
6,000 Sun Hung Kai Properties Ltd. 74
4,000 Swire Pacific Ltd. 34
1,000 Tai Cheung Holdings Ltd. 1
1,000 Television Broadcasts Ltd. 4
5,000 Wharf Holdings Ltd. 22
1,000 Wing Lung Bank 6
-------
559
-------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
IRELAND--0.1%
1,218 Allied Irish Banks PLC $ 9
79 Crean (James) PLC 0
682 CRH PLC 7
514 Fyffes PLC 1
334 Greencore Group PLC 2
441 Independent Newspapers PLC 2
554 Irish Life PLC 3
294 Kerry Group PLC 3
1,939 Smurfit (Jefferson) Group PLC 5
1,294 Waterford Wedgewood PLC 1
387 Woodchester Investments PLC 2
-------
35
-------
ITALY--2.8%
2,000 Assicurazioni Generali 34
5,000 Banca Commerciale Italiana 10
1,000 Banco Ambrosiano S.p.A. 2
1,000 Banco Ambrosiano Veneto S.p.A. 1
1,000 Banco Popolare di Milano 5
1,000 Cementir S.p.A. 1
6,000 Credito Italiano 9
2,000 Edison S.p.A. 9
20,000 ENI S.p.A. 100
8,000 Fiat S.p.A. 26
2,000 Fiat-RNC S.p.A. 3
1,000 Impregilo S.p.A.* 1
2,000 Istituto Bancario San Paolo di Torino 12
2,000 Istituto Mobiliare Italiano S.p.A. 17
10,000 Istituto Nationale Assicurazioni 14
2,000 Italgas S.p.A. 6
1,000 Magneti Marelli 2
3,000 Mediaset S.p.A.* 13
1,000 Mediobanca S.p.A.* 6
13,000 Montedison S.p.A. 8
2,000 Montedison-RNC S.p.A. 1
9,000 Olivetti Group* 3
4,000 Parmalat Finanziaria S.p.A. 6
4,000 Pirelli S.p.A. 9
1,000 Riunione Adriatic di Sicurta S.p.A. 8
1,000 Sirti S.p.A. 6
2,000 Snia BPD S.p.A. 2
17,000 Telecom Italia Mobile S.p.A. 50
4,000 Telecom Italia Mobile-RNC S.p.A. 7
17,000 Telecom Italia S.p.A. 47
4,000 Telecom Italia-RNC S.p.A. 9
-------
427
-------
JAPAN--29.5%
1,000 77 Bank 9
2,000 Ajinomoto Co. 20
1,000 Amada Co. Ltd. 8
1,000 Aoki Corp.* 1
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
200 Arabian Oil Co. $ 7
6,000 Asahi Bank Ltd. 39
1,000 Asahi Breweries Ltd. 14
4,000 Asahi Chemical Industry Co. Ltd. 22
3,000 Asahi Glass Co. Ltd. 29
2,000 Ashikaga Bank Ltd. 7
100 Autobacs Seven Co. Ltd. 7
12,000 Bank of Tokyo-Mitsubishi Ltd. 208
3,000 Bank of Yokohama Ltd. 15
2,000 Bridgestone Corp. 45
1,000 Brother Industries Ltd. 4
2,000 Canon, Inc. 51
1,000 Casio Computer Co. Ltd. 8
2,000 Chiba Bank Ltd. 10
1,000 Chichibu Onoda Cement Corp. 4
1,000 Chiyoda Corp.* 5
1,000 Chugai Pharmaceutical Co. Ltd. 8
1,000 Citizen Watch Co. Ltd. 7
2,000 Cosmo Oil Co. Ltd. 9
200 CSK Corp. 6
2,000 Dai Nippon Ink & Chemicals, Inc. 7
2,000 Dai Nippon Printing Co. Ltd. 40
1,000 Daicel Chemical Industry Ltd. 4
1,000 Daido Steel Co. Ltd. 3
2,000 Daiei, Inc. 13
1,000 Daiichi Pharmaceutical 17
1,000 Daikin Industries Ltd. 10
1,000 Daimaru, Inc. 5
400 Daito Trust Construction Co. 4
1,000 Daiwa House Industry Co. Ltd. 12
3,000 Daiwa Securities Co. Ltd. 22
1,000 Denki Kagaku Kogyo Kabushiki Kaisha 2
2,000 Denso Corp. 50
11 East Japan Railway Co. 54
1,000 Ebara Corp. 14
1,000 Eisai Co. Ltd. 20
600 Fanuc 21
7,000 Fuji Bank Ltd. 90
1,000 Fuji Photo Film Co. 39
1,000 Fujikura Ltd. 9
1,000 Fujita Corp. 2
5,000 Fujitsu Ltd. 61
2,000 Furukawa Electric Co. Ltd. 12
1,000 Gunma Bank 8
1,000 Gunze Ltd. 4
2,000 Hankyu Corp. 10
1,000 Haseko 2
1,000 Hazama Corp. 2
1,000 Higo Bank 6
8,000 Hitachi Ltd. 85
3,000 Hitachi Zosen Corp. 11
2,000 Hokuriku Bank 7
2,000 Honda Motor Co. Ltd. 59
1,000 Inax 7
6,000 Industrial Bank of Japan 72
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,000 Isetan $ 13
1,000 Ishihara Sangyo Kaisha 3
1,000 Ito-Yokado Co. 57
4,000 Itochu Corp. 20
1,000 Itoham Foods 6
1,000 Iwataini International Corp. 4
4,000 Japan Airlines* 17
3,000 Japan Energy Corp. 8
1,000 Japan Steel Works* 2
2,000 Joyo Bank 10
1,000 JUSCO Co. 34
2,000 Kajima Corp. 11
1,000 Kamigumi Co. Ltd. 6
1,000 Kandenko Co. Ltd. 8
1,000 Kanebo Ltd. 2
1,000 Kaneka Corp. 6
2,500 Kansai Electric Power Co., Inc. 47
1,000 Kansai Paint 4
2,000 Kao Corp. 27
4,000 Kawasaki Heavy Industries Ltd. 17
1,000 Kawasaki Kisen Kaisha Ltd. 2
8,000 Kawasaki Steel Corp. 23
1,000 Keihin Electric Express Railway Co. Ltd. 5
1,000 Kikkoman Corp. 7
1,000 Kinden Corp. 13
4,000 Kinki Nippon Railway 24
3,000 Kirin Brewery Co. Ltd. 30
3,000 Komatsu Ltd. 23
100 Konami Co. Ltd. 4
1,000 Konica Corp. 6
1,000 Koyo Seiko Co. 8
1,000 Kuarabo Industries 3
4,000 Kubota Corp. 18
2,000 Kumagai Gumi Co. Ltd. 3
1,000 Kuraray Co. Ltd. 10
1,000 Kureha Chemical Industry 4
1,000 Kyowa Hakko Kogyo 7
1,000 Lion Corp. 4
4,000 Marubeni Corp. 17
1,000 Maruha Corp. 2
1,000 Marui Co. Ltd. 19
5,000 Matsushita Electric Industrial Co. Ltd. 94
1,000 Meiji Milk Products Co. Ltd. 5
1,000 Meiji Seika 5
1,000 Minebea Co. Ltd. 10
6,000 Mitsubishi Chemical Corp. 18
4,000 Mitsubishi Corp. 47
5,000 Mitsubishi Electric Corp. 28
3,000 Mitsubishi Estate Co. Ltd. 41
1,000 Mitsubishi Gas Chemical Go. 4
8,000 Mitsubishi Heavy Industries Ltd. 58
3,000 Mitsubishi Materials Corp. 12
1,000 Mitsubishi Oil Co. Ltd. 5
1,000 Mitsubishi Paper Mills 4
2,000 Mitsubishi Rayon Co. 8
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
JAPAN--Continued
<C> <S> <C>
3,000 Mitsubishi Trust & Banking Corp. $ 43
4,000 Mitsui & Co. 35
2,000 Mitsui Engineering & Shipbuilding Co. Ltd. 4
2,000 Mitsui Fudosan Co. Ltd. 25
2,000 Mitsui Marine & Fire Insurance Co. Ltd. 13
1,000 Mitsui Mining & Smelting 4
3,000 Mitsui O.S.K. Lines Ltd.* 7
2,000 Mitsui Toatsu Chemicals, Inc. 5
3,000 Mitsui Trust & Banking Co. Ltd. 23
1,000 Mitsukoshi Ltd. 7
1,000 Murata Manufacturing Co. Ltd. 40
1,000 Mycal Corp. 14
2,000 Nagoya Railroad Co. Ltd. 8
1,000 Nankai Electric Railway 5
4,000 NEC Corp. 56
1,000 NGK Insulators Ltd. 10
1,000 NGK Spark Plug Co. 11
1,000 Nichido Fire & Marine Insurance 6
1,000 Nichirei Corp. 5
1,000 Nihon Cement Co. Ltd. 5
1,000 Niigata Engineering Co. Ltd.* 2
1,000 Nikon Corp. 17
3,000 Nippon Express Co. Ltd. 23
1,000 Nippon Fire & Marine Insurance 5
1,000 Nippon Light Metal Co. 4
1,000 Nippon Meat Packers, Inc. 12
3,000 Nippon Oil Co. Ltd. 15
2,000 Nippon Paper Industries Co. 11
1,000 Nippon Sheet Glass Co. Ltd. 4
1,000 Nippon Shinpan Co. 3
1,000 Nippon Shokubai K.K. Co. 7
17,000 Nippon Steel Corp. 50
1,000 Nippon Suisan Kaisha Ltd.* 3
3,000 Nippon Yusen Kabushiki Kaisha 12
1,000 Nishimatsu Construction 7
6,000 Nissan Motor Co. Ltd. 40
1,000 Nisshinbo Industries, Inc. 9
9,000 NKK Corp. 18
1,000 NOF Corp. 4
5,000 Nomura Securities Co. Ltd. 59
1,000 NSK Ltd. 7
1,000 NTN Corp. 5
2,000 Obayashi Corp. 12
2,000 Odakyu Electric Railway 11
3,000 Oji Paper Co. Ltd. 17
1,000 Okumura Corp. 5
1,000 Olympus Optical Co. Ltd. 9
1,000 Omron Corp. 20
1,000 Orient Corp. 3
6,000 Osaka Gas Co. Ltd. 16
100 Oyo Corp. 4
1,000 Penta-Ocean Construction 3
1,000 Renown, Inc.* 2
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
9,000 Sakura Bank Ltd. $ 54
1,000 Sankyo Aluminium Industry Co. 3
1,000 Sankyo Co. Ltd. 32
1,000 Sanwa Shutter Corp. 9
5,000 Sanyo Electric Co. 21
1,000 Sapporo Breweries Ltd. 8
1,000 Sato Kogyo 2
300 Sega Enterprises 10
1,000 Seiyu Ltd. 8
1,000 Sekisui Chemical Co. Ltd. 10
2,000 Sekisui House Ltd. 20
3,000 Sharp Corp. 39
2,000 Shimizu Corp. 12
1,000 Shin-Etsu Chemical Co. Ltd. 25
1,000 Shionogi & Co. 7
1,000 Shiseido Co. Ltd. 15
2,000 Shizuoka Bank 19
3,000 Showa Denko K.K. 8
1,000 Snow Brand Milk Products 5
1,000 Sony Corp. 84
8,000 Sumitomo Bank Ltd. 111
4,000 Sumitomo Chemicals Co. 17
3,000 Sumitomo Corp. 27
2,000 Sumitomo Electric Industries 31
2,000 Sumitomo Heavy Industries Ltd. 7
2,000 Sumitomo Marine & Fire Insurance 15
8,000 Sumitomo Metal Industries 20
1,000 Sumitomo Metal Mining Co. 7
1,000 Sumitomo Osaka Cement Co. Ltd. 3
3,000 Taisei Corp. 13
1,000 Taisho Pharmaceutical Co. 25
1,000 Takara Shuzo 7
1,000 Takashimaya Co. Ltd. 13
2,000 Takeda Chemical Industries 51
2,000 Teijin Ltd. 8
1,000 Teikoku Oil Co. Ltd. 5
1,000 Toa Corp. 4
2,000 Tobu Railway Co. 9
100 Toho Co. 16
1,300 Tohoku Electric Power 22
5,000 Tokai Bank 41
4,000 Tokio Marine & Fire Insurance 47
3,400 Tokyo Electric Power Co. 65
7,000 Tokyo Gas Co. Ltd. 18
400 Tokyo Steel Manufacturing 5
1,000 Tokyo Tatemono Co. Ltd. 5
1,000 Tokyotokeiba 3
3,000 Tokyu Corp. 17
2,000 Toppan Printing Co. Ltd. 27
4,000 Toray Industries, Inc. 27
2,000 Tosoh Corp. 7
1,000 Tostem Corp. 27
1,000 Toto Ltd. 11
1,000 Toyo Seikan Kaisha 19
2,000 Toyobo Ltd. 5
1,000 Toyoda Automatic Loom Works 22
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
9,000 Toyota Motor Corp. $ 258
1,000 Tsubakimoto Chain 6
2,000 Ube Industries Ltd. 6
1,000 Unitika Ltd.* 2
1,000 Yamaguchi Bank 14
1,000 Yamaha Corp. 19
3,000 Yamaichi Securities Co. Ltd. 8
1,000 Yamanouchi Pharmaceutical Co. Ltd. 25
1,000 Yamato Transport Co. Ltd. 12
1,000 Yamazaki Baking Co. Ltd. 17
3,000 Yasuda Trust & Banking 9
1,000 Yokogawa Electric 8
--------
4,477
--------
MALAYSIA--2.2%
1,000 AMMB Holdings Berhad 6
2,000 Amsteel Corp. Berhad 2
1,000 Antah Holdings Berhad 1
1,000 Aokam Perdana Berhad* 1
1,000 Berjaya Group Berhad 1
1,000 Berjaya Leisure Berhad 3
2,000 Commerce Asset Holdings Berhad 6
400 Commerce Asset Holdings Berhad Rights* 0
250 Commerce Asset Holdings Berhad Warrants* 0
1,000 DCB Holdings Berhad 3
1,000 Edaran Otomobil Nasional Berhad 9
1,000 Ekran Berhad 2
1,000 Golden Hope Plantations Berhad 2
1,000 Golden Plus Holdings Berhad 2
1,000 Guinness Anchor Berhad 2
666 Guolene Paper Products Berhad Rights* 0
1,000 Highlands & Lowlands Berhad 2
1,000 Hong Leong Industries Berhad 3
1,000 Hong Leong Properties Berhad 1
1,000 Hume Industries Berhad 5
1,000 Idris Hydraulic Berhad* 1
1,000 IGB Corp. Berhad 1
1,000 IOI Corp. Berhad 1
1,000 Jaya Tiasa Holdings Berhad 5
1,000 Johan Holdings Berhad 1
1,000 Kedah Cement Holdings Berhad 1
1,000 Kemayan Corp. Berhad 1
1,000 Kian Joo Can Factory Berhad 4
1,000 Kuala Lumpur Kepong Berhad 3
1,000 Land and General Berhad 1
1,000 Landmarks 1
1,000 Leader Universal Holdings Berhad 2
2,000 Magnum Corp. Berhad 3
2,800 Malayan Banking Berhad 30
1,000 Malayan Cement Berhad 2
2,000 Malayan United Industries Berhad 1
1,000 Malayawata Steel Berhad 2
3,000 Malaysia International Shipping Berhad 7
1,000 Malaysia Mining Corp. Berhad 1
1,000 Malaysian Airline System Berhad 2
1,000 Malaysian Mosaics Berhad 1
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------
<C> <S> <C>
1,000 Malaysian Oxygen Berhad $ 5
1,000 Malaysian Pacific Industries 4
1,000 Malaysian Resources Corp. Berhad 3
1,000 MBF Capital Berhad 2
1,000 Metroplex Berhad 1
1,000 Mulpha International Berhad 1
1,000 Multi-Purpose Holdings 2
1,000 Mycom Berhad 1
1,000 Nestle Berhad 7
1,000 New Straits Times Press Berhad 6
1,000 Oriental Holdings Berhad 8
1,000 Palmco Holdings Berhad 1
1,000 Pan-Malaysia Cement Works Berhad 1
1,000 Perlis Plantations Berhad 3
1,000 Perlis Plantations Berhad Rights* 2
1,000 Perusahaan Otomolbil Nasional Berhad 5
1,000 Petaling Garden Berhad 2
1,000 Pilecon Engineering Berhad 2
1,000 Promet Berhad* 1
2,000 Public Bank Berhad 3
1,000 R.J. Reynolds Berhad 3
1,000 Rashid Hussain Berhad 6
2,000 Resorts World Berhad 7
400 Roghmans of Pall Mall Berhad 4
1,000 Selangor Properties Berhad 1
1,000 Shell Refining Co. Berhad 3
6,000 Sime Darby Berhad 20
1,000 Sungei Way Holdings Berhad 2
1,000 Ta Enterprise Berhad 1
1,000 Tan Chong Motor Holdings Berhad 2
1,000 Technology Resources Industries Berhad* 2
5,000 Telekom Malaysia Berhad 37
8,000 Tenaga Nasional Berhad 37
1,000 Time Engineering Berhad 2
1,000 UMW Holdings Berhad 5
2,000 United Engineers Malaysia Ltd. 16
1,000 YTL Corp. Berhad 4
-------
334
-------
NETHERLANDS--4.8%
3,440 ABN AMRO Holdings N.V. 64
168 Akzo Nobel 22
59 Assurantieconcern Stad Rotterdam anno 1720 N.V. 3
1,668 Elsevier N.V. 28
157 Getronics N.V. 5
126 Heineken N.V. 21
6 Hollandsche Beton Groep N.V. 1
48 IHC Caland N.V. 3
1,969 ING Groep N.V. 87
166 KLM Royal Dutch Airlines N.V. 5
422 Koninklijke Ahold N.V. 32
58 Koninklijke Hoogovens N.V. 3
185 Koninklijke KNP BT N.V. 4
23 Koninklijke Nedlloyd N.V. 1
56 Koninklijke Pakhoed N.V. 2
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
NETHERLANDS--Continued
<C> <S> <C>
1,172 Koninklijke PTT Nederland N.V. $ 41
36 Oce-Van Der Grinten N.V. 5
883 Philips Electronics N.V. 48
1,343 Royal Dutch Petroleum Co. 260
54 Stork N.V. 2
401 Unilever N.V. 77
170 Wolters Kluwer N.V. 21
-------
735
-------
NEW ZEALAND--0.4%
7,000 Brierley Investments Ltd. 6
4,400 Carter Holt Harvey Ltd. 10
200 Fisher & Paykel Industries Ltd. 1
800 Fletcher Challenge Building 2
1,000 Fletcher Challenge Energy 3
2,000 Fletcher Challenge Forests 3
2,000 Fletcher Challenge Paper 5
1,400 Lion Nathan Ltd. 4
4,800 Telecom Corp. of New Zealand Ltd. 23
-------
57
-------
NORWAY--0.5%
200 Aker RGI ASA 4
40 Aker RGI ASA, Class B 1
100 Bergesen d.y. ASA, Class A 2
100 Bergesen d.y. ASA, Class B 2
1,400 Christiania Bank Og Kreditkasse 5
100 Dyno Industrier ASA 2
100 Elkem ASA 2
200 Hafslund ASA 1
100 Kvaerner ASA 6
100 Leif Hoegh & Co. ASA 2
200 NCL Holdings ASA* 1
600 Norsk Hydro ASA 30
100 Norske Skogindustrier ASA 3
200 Nycomed ASA, Class A 3
100 Nycomed ASA, Class B 1
100 Orkla ASA, Class A 9
100 Petroleum Geo-Services ASA* 4
700 Storebrand ASA* 5
-------
83
-------
SINGAPORE--1.0%
1,000 City Developments Ltd. 9
1,000 Comfort Group Ltd. 1
1,000 Cycle & Carriage Ltd. 10
2,000 DBS Land Ltd. 7
1,000 Development Bank of Singapore Ltd. 12
1,000 First Capital Corp. Ltd. 3
1,000 Fraser & Neave Ltd. 8
1,000 Goldtron Ltd. 1
1,000 Hai Sun Hup Group Ltd. 1
1,000 Hotel Properties Ltd. 2
2,000 IPC Corp. 1
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------------------
<C> <S> <C>
1,000 Keppel Corp. Ltd. $ 5
250 Keppel Corp. Ltd., Class A * 1
1,000 Lum Chang Holdings Ltd. 1
1,000 NatSteel Ltd. 3
1,000 Neptune Orient Lines Ltd. 1
1,000 Overseas Chinese Banking Corp. Ltd. 12
1,000 Parkways Holdings Ltd. 5
1,000 Singapore Airlines Ltd. 8
1,000 Singapore Press Holdings Ltd. 20
1,000 Singapore Technologies Industrial Corp. 3
11,000 Singapore Telecommunications Ltd. 20
1,000 Straits Trading Co. Ltd. 2
2,000 United Industrial Corp. Ltd. 1
1,000 United Overseas Bank Ltd. 10
1,000 United Overseas Land Ltd. 1
-------
148
-------
SPAIN--2.3%
25 Acerinox S.A. 4
325 Corporacion Bancaria de Espana S.A. 16
500 Autopistas Concesionaria ESP 6
400 Banco Santander S.A. 34
562 Banco Bilbao Vizcaya S.A. 40
410 Banco Central Hispanoamericano 13
25 Corporacion Financiera Alba 3
69 Corporacion Mapfre 4
105 Dragados & Construcciones S.A. 2
100 Ebro Agricolas Compania de Alimentacion S.A. 2
650 Empresa Nacional de Electricidad S.A. 50
25 Fomenta de Construcciones S.A. 3
100 Gas Natural SDG S.A., Class E 19
2,278 Iberdrola S.A. 28
50 Inmobiliaria Metropolitana Vasco Central S.A. 2
25 Portland Valderrivas S.A. 2
150 Prosegur CIA de Seguridad S.A. 2
750 Repsol S.A. 31
63 Sarrio S.A. 0
100 Sociedade General de Aguas de Barcelona S.A. 4
75 Tabacalera S.A. 4
2,351 Telefonica de Espana 68
762 Union Electrica Fenosa S.A. 7
100 Uralita S.A. 1
100 Vallehermoso S.A. 3
50 Viscofan Industria Navarra de Envolturas Celulosicas S.A. 1
25 Zardoya Otis S.A. 3
-------
352
-------
SWEDEN--2.4%
2,000 ABB AB, Class A 27
1,000 ABB AB, Class B 14
300 AGA AB, Class A 4
200 AGA AB, Class B 3
3,466 Astra AB, Class A 56
800 Astra AB, Class B 12
300 Atlas Copco AB, Class A 8
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------------------
<C> <S> <C>
100 Atlas Copco AB, Class B $ 3
184 Electrolux AB, Class B 11
92 Granges AB* 1
500 Hennes & Mauritz AB, Class B 16
100 Scancem AB, Class A 4
200 Securitas AB, Class B 5
239 Skandia Forsakrings AB 8
1,300 Skandinaviska Enskilda Banken, Class A 14
300 Skanska AB, Class B 12
300 Skanska AB, Rights* 0
100 SKF AB, Class A 2
115 SKF AB, Class B 3
700 Stora Kopparbergs Bergslags Aktiebolag, Class A 10
100 Stora Kopparbergs Bergslags Aktiebolag, Class B 1
500 Svenska Cellulosa AB, Class B 11
500 Svenska Handelsbanken, Class A 14
1,000 Swedish Match AB 3
2,400 Telefonaktiebolaget LM Ericsson, Class B 85
200 Trelleborg AB, Class B 3
300 Volvo AB, Class A 8
300 Volvo AB, Class A, Rights* 0
800 Volvo AB, Class B 22
800 Volvo AB, Class B, Rights* 0
-------
360
-------
SWITZERLAND--6.2%
20 ABB A.G. (Bearer)* 28
25 Adecco S.A. 9
10 Alusuisse-Lonza Holdings A.G. (Registered) 9
450 Credit Suisse Group (Registered) 57
10 Holderbank Financiere Glarus A.G., Class B 9
25 Holderbank Financiere Glarus A.G. (Registered) 4
100 Nestle S.A. (Registered) 124
20 Novartis A.G. (Bearer) 27
160 Novartis A.G. (Registered) 217
5 Roche Holdings A.G. (Bearer) 66
18 Roche Holdings A.G. (Genusss) 160
200 Schweizerischer Bankverein (Registered)* 48
5 SGS Societe Generale de Surveillance Holdings S.A., Class B 11
10 SMH A.G. (Bearer) 6
40 Swiss Re (Registered) 54
60 Union Bank of Switzerland (Bearer) 66
50 Union Bank of Switzerland (Registered) 11
100 Zurich Versicherungsgesellschaft (Registered) 37
-------
943
-------
UNITED KINGDOM--18.6%
4,000 Abbey National PLC 58
1,000 Anglian Water PLC 11
1,000 Argos PLC 10
2,000 Arjo Wiggins Appleton PLC 6
2,000 Associated British Foods PLC 19
3,788 Barclays PLC 74
2,217 Bass PLC 29
7,755 B.A.T. Industries PLC 70
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
1,000 BBA Group PLC $ 5
11,000 BG PLC 37
1,000 BICC Group PLC 3
2,000 Blue Circle Industries PLC 14
1,212 BOC Group PLC 20
2,265 Boots Co. PLC 26
1,000 BPB PLC 6
14,187 British Petroleum Co. PLC 168
1,000 British Aerospace PLC 20
3,000 British Airways PLC 35
1,000 British Land Co. PLC 10
4,000 British Sky Broadcasting Group PLC 38
4,000 British Steel PLC 10
15,766 British Telecommunications PLC 114
10,069 BTR PLC 33
1,000 Burmah Castrol PLC 17
6,000 Cable & Wireless PLC 49
2,490 Cadbury Schweppes PLC 22
900 Caradon PLC 3
1,000 Carlton Communications PLC 9
11,000 Centrica PLC* 12
1,000 Coats Viyella PLC 2
2,000 Commercial Union PLC 22
727 Courtaulds PLC 4
1,000 De La Rue PLC 8
1,000 Electrocomponents PLC 7
1,080 EMI Group PLC 21
1,000 English China Clays PLC 3
1,000 FKI PLC 3
6,924 General Electric Co. PLC 39
877 GKN PLC 15
9,000 Glaxo Wellcome PLC 180
2,000 Granada Group PLC 28
5,000 Grand Metropolitan PLC 46
1,000 Great Portland Estates PLC 4
3,000 Great Universal Stores PLC 32
2,000 Guardian Royal Exchange PLC 9
4,830 Guiness PLC 45
1,000 Hammerson PLC 8
2,000 Hanson PLC 10
1,000 Harrisons & Crosfield PLC 2
1,000 Hepworth PLC 4
4,000 HSBC Holdings PLC 119
2,000 HSBC Holdings PLC (75P) 62
1,000 IMI PLC 6
2,000 Imperial Chemical Industries PLC 27
1,000 Johnson Matthey PLC 8
2,000 Kingfisher PLC 23
3,000 Ladbroke Group PLC 11
1,290 Land Securities Group PLC 19
2,000 LASMO PLC 8
3,000 Legal & General Group PLC 22
13,419 Lloyds TSB Group PLC 135
1,403 Lonrho PLC 3
3,000 LucasVarity PLC 9
7,068 Marks & Spencer PLC 59
964 MEPC PLC 8
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
UNITED KINGDOM--Continued
<C> <S> <C>
4,000 National Grid Group PLC $ 15
3,000 National Power PLC 27
1,000 Next PLC 12
1,519 Peninsular and Oriental Steam Navigation Co. 16
1,424 Pearson PLC 17
1,800 Pilkington PLC 4
1,000 Provident Financial PLC 10
5,000 Prudential Corp. PLC 50
1,000 Racal Electronics PLC 4
1,000 Railtrack Group PLC (Partial Paid) 7
2,000 Rank Group PLC 14
1,000 Redland PLC 5
2,832 Reed International PLC 28
4,000 Reuters Holdings PLC 45
1,000 Rexam PLC 5
1,000 RMC Group PLC 15
4,000 Rolls-Royce PLC 16
2,000 Royal Bank Scotland Group PLC 20
4,000 Royal & Sun Alliance Insurance Group PLC 30
2,680 RTZ Corp. PLC 46
1,000 Rugby Group PLC 2
3,000 Safeway PLC 18
4,597 Sainsbury (J) PLC 26
2,000 Scottish & Newcastle PLC 23
3,000 Scottish Power PLC 19
2,728 Sears PLC 3
1,000 Sedgwick Group PLC 2
1,000 Slough Estates PLC 5
7,000 SmithKline Beecham PLC 120
1,000 Smiths Industries PLC 13
1,000 Southern Electric PLC 7
1,000 T&N PLC 2
1,661 Tarmac PLC 3
1,000 Tate & Lyle PLC 7
1,000 Taylor Woodrow PLC 3
5,414 Tesco PLC 33
1,000 Thames Water PLC 11
1,000 Thorn PLC 3
1,000 TI Group PLC 9
426 Unigate PLC 3
2,042 Unilever PLC 55
950 United Biscuits Holdingsss PLC 3
1,000 United Utilities PLC 11
1,000 Vickers PLC 4
8,000 Vodafone Group PLC 35
1,666 Williams PLC 8
1,000 Willis Corroon 2
1,000 Wimpey (George) PLC 2
1,000 Wolseley PLC 8
2,000 Zeneca Group PLC 61
-------
2,826
- ---------------------------------------------------------------
TOTAL COMMON STOCK (Cost $13,323) $14,448
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
PREFERRED STOCK--0.4%
AUSTRALIA--0.1%
3,800 News Corp. Ltd. $ 14
1,000 Sydney Harbour Casino Holdings Ltd.* 2
-------
16
-------
AUSTRIA--0.0%
4 Bau Holdings A.G.--Vorzug 0
12 Bank Austria A.G.--Vorzug 1
42 Creditanstalt-Bankverein--Vorzug 2
-------
3
-------
GERMANY--0.3%
400 RWE A.G.--Non Voting 14
100 SAP A.G.--Vorzug 18
-------
32
-------
ITALY--0.0%
2,000 Fiat S.p.A. 3
- -------------------------------------------------------
TOTAL PREFERRED STOCK (Cost $52) $ 54
- -------------------------------------------------------
OTHER--3.6%
WORLD EQUITY BENCHMARK SHARES(WEBS)--3.6%
AUSTRALIA--0.1%
1,500 WEBS Index Series--Australia $ 17
-------
AUSTRIA--0.0%
100 WEBS Index Series--Austria 1
-------
BELGIUM--0.0%
300 WEBS Index Series--Belgium 5
-------
FRANCE--0.3%
2,600 WEBS Index Series--France 38
-------
GERMANY--0.3%
3,200 WEBS Index Series--Germany 52
-------
HONG KONG--0.1%
1,200 WEBS Index Series--Hong Kong 19
-------
ITALY--0.1%
1,000 WEBS Index Series--Italy 15
-------
JAPAN--1.2%
13,400 WEBS Index Series--Japan* 179
-------
MALAYSIA--0.1%
900 WEBS Index Series--Malaysia 12
-------
NETHERLANDS--0.2%
1,200 WEBS Index Series--Netherlands 26
-------
SINGAPORE--0.0%
500 WEBS Index Series--Singapore 6
-------
SPAIN--0.1%
700 WEBS Index Series--Spain 14
-------
SWEDEN--0.1%
700 WEBS Index Series--Sweden 12
-------
SWITZERLAND--0.2%
2,500 WEBS Index Series--Switzerland 36
-------
UNITED KINGDOM--0.8%
6,900 WEBS Index Series--United Kingdom 115
- -------------------------------------------------------
TOTAL OTHER (Cost $507) $ 547
- -------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
SHORT-TERM INVESTMENT--0.4%
Bank of Tokyo--Mitsubishi, Grand Cayman
$ 65 5.750% Due 06/02/97 $ 65
- ---------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $65) $ 65
- ---------------------------------------------------------------
TOTAL INVESTMENTS--99.4%
(Cost $13,947) $15,114
- ---------------------------------------------------------------
Other assets, less liabilities--0.6% 85
- ---------------------------------------------------------------
NET ASSETS--100.0% $15,199
- ---------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security.
At May 31, 1997 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<S> <C>
Industry/Sector
- -------------------------
Auto 4.5%
Banks 14.2
Capital Goods 8.0
Consumer Goods 14.3
Energy/Utilities 10.3
Financial Services 8.7
Medical 6.5
Multi-Industry 10.8
Raw Materials 8.2
Retail 4.1
Transportation 2.5
Other 7.9
- -------------------------
Total 100.0%
- -------------------------
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
<C> <S> <C> <C>
COMMON STOCKS--92.9%
AUSTRALIA--2.9%
475,000 Foster's Brewing Group Ltd. $ 933
305,000 News Corp. Ltd. 1,354
200,000 WMC Ltd. 1,292
--------
3,579
--------
AUSTRIA--0.8%
6,000 VA Technologies A.G. 1,058
--------
CZECH REPUBLIC--0.5%
90,000 Czechoslovakia & Slovak
Investment Corp.* 608
12,000 Czechoslovakia & Slovak
Investment Corp. Warrants* 8
--------
616
--------
FINLAND--0.3%
6,000 Nokia Corp. ADR 396
--------
FRANCE--6.7%
14,000 Alcatel Alsthom S.A. 1,519
14,000 AXA-UAP 839
12,000 Cie Generale des Eaux 1,479
12,000 Cie Gererale des Eaux Warrants* 8
18,000 Elf Aquitaine S.A. 1,803
25,000 Lafarge S.A. 1,601
40,000 Lagardere S.C.A. 1,179
--------
8,428
--------
GERMANY--8.2%
6,500 Allianz A.G. 1,378
50,000 Commerzbank A.G. 1,472
15,000 Daimler-Benz A.G. 1,157
20,000 Deutsche Telekom A.G. 444
30,000 Deutsche Telekom A.G. ADR 682
33,000 Siemens A.G. 1,864
32,000 VEBA A.G. 1,812
2,200 Volkswagen A.G. 1,424
--------
10,233
--------
HONG KONG--3.5%
335,000 China Light & Power Co. 1,677
175,000 Hutchison Whampoa Ltd. 1,457
270,000 Wharf Holdings Ltd. 1,209
--------
4,343
--------
INDONESIA--1.0%
40,000 PT Indosat ADR 1,195
--------
ITALY--3.2%
85,000 Assicurazioni Generali 1,457
250,000 ENI S.p.A. 1,249
250,000 Stet Societa' Finanziaria Telefonica S.p.A. 1,263
--------
3,969
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
JAPAN--31.2%
230,000 Asahi Bank Ltd. $ 1,502
50,000 Bank Of Tokyo-Mitsubishi Ltd. 867
55,000 Canon, Inc. 1,392
15,000 Forval Corp. 398
110,000 Fujitsu Ltd. 1,340
70,000 Isetan 901
375,000 Ishikawajima-Harima Heavy Industries Co. 1,461
350,000 Isuzu Motors Ltd. 1,343
395,000 Itochu Corp. 2,010
335,000 Kawasaki Steel Corp. 983
30,000 Matsumotokiyoshi 1,187
60,000 Matsushita Electric Industrial Co. Ltd. 1,128
130,000 Minebea Co. Ltd. 1,272
70,000 Mitsubishi Estate Co. Ltd. 955
140,000 Mitsui & Co. 1,237
32,000 Murata Manufacturing Co. Ltd. 1,266
12,000 Nichii Gakkan Co. 638
40,000 Nikon Corp. 676
18,000 Nintendo Corp. Ltd. 1,406
150 Nippon Telegraph & Telephone Corp. 1,429
1,500 Nippon Television Network 598
105,000 Nissan Motor Co. Ltd. 696
90,000 Nomura Securities Co. Ltd. 1,066
185,000 Oji Paper Co. Ltd. 1,068
20,000 Promise Co., Ltd. 961
100,000 Ricoh Co. Ltd. 1,313
15,000 Sony Corp. 1,263
150,000 Sumitomo Corp. 1,326
40,000 Sumitomo Electric Industries 628
110,000 Sumitomo Marine & Fire Insurance 831
225,000 Sumitomo Realty & Developement Co. Ltd. 1,767
40,000 Takeda Chemical Industries 1,013
10,000 TDK Corp. 767
50,000 Toyota Motor Corp. 1,433
45,000 Uny Co. Ltd. 884
--------
39,005
--------
MALAYSIA--0.0%
500 Genting Berhad 3
--------
MEXICO--1.1%
425,000 Cifra S.A. ADR 701
25,000 Panamerican Beverages, Inc. 725
--------
1,426
--------
NETHERLANDS--3.0%
40,000 ING Groep N.V. 1,770
35,000 Vendex International N.V. 1,966
--------
3,736
--------
NORWAY--1.1%
70,000 Saga Petroleum A.S.A. 1,412
--------
SINGAPORE--0.9%
90,000 Development Bank of Singapore Ltd. 1,127
--------
SOUTH AFRICA--1.1%
45,000 Nedcor Ltd. 876
20,000 South African Breweries Ltd. 568
--------
1,444
--------
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
SOUTH KOREA--0.0%
368 Daewoo Corp. $ 3
--------
SPAIN--2.5%
12,000 Banco Santander S.A. 1,025
20,000 Repsol S.A. ADR 843
14,000 Telefonica de Espana ADR 1,223
--------
3,091
--------
SWITZERLAND--5.6%
14,000 Credit Suisse Group A.G. 1,759
1,400 Nestle S.A. 1,742
1,100 Novartis A.G. 1,493
5,500 Zurich Versicherungsgesellschaft 2,022
--------
7,016
--------
UNITED KINGDOM--18.2%
250,000 British Telecommunications PLC 1,810
475,000 BTR PLC 1,543
200,000 Cable & Wireless PLC 1,633
120,000 General Electric Co. PLC 684
40,000 Glaxo Wellcome PLC ADR 1,610
200,000 Grand Metropolitan PLC 1,858
435,000 Ladbroke Group PLC 1,637
325,000 National Grid Group PLC 1,204
150,000 National Westminster Bank PLC 1,827
150,000 Pearson PLC 1,761
220,000 Rank Group PLC 1,544
75,000 RTZ Corp. PLC 1,287
450,000 Tomkins PLC 1,958
35,000 Vodafone Group PLC ADR 1,562
70,000 United Utilities PLC 801
--------
22,719
--------
UNITED STATES--1.1%
40,000 Pharmacia & Upjohn, Inc. 1,385
- ----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $106,014) $116,184
- ----------------------------------------------------------
PREFERRED STOCKS--1.1%
BRAZIL--1.1%
5,000 Telecomunicacoes Brasileiras S.A. ADR $ 687
20,000 Uniao de Bancos Brasileiros S.A. GDR* 690
- ----------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $1,101) $ 1,377
- ----------------------------------------------------------
OTHER--0.8%
75,000 The Korea Fund, Inc. $ 1,031
- ----------------------------------------------------------
TOTAL OTHER (Cost $1,104) $ 1,031
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ----------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT--2.9%
Bank of Tokyo-Mitsubishi, Grand Cayman
$ 3,593 5.75% Due 06/02/97 $ 3,593
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,593) $ 3,593
- ----------------------------------------------------------
TOTAL INVESTMENTS--97.7%
(Cost $111,812) $122,185
- ----------------------------------------------------------
Other assets, less liabilities--2.3% 2,922
- ----------------------------------------------------------
NET ASSETS--100.0% $125,107
- ----------------------------------------------------------
- ----------------------------------------------------------
</TABLE>
*Non-income producing security.
At May 31, 1997 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<CAPTION>
Industry/Sector
- --------------------------
<S> <C>
Auto 3.0%
Basic Industry 15.7
Capital Goods 8.6
Consumer Goods 17.6
Financial Services 18.6
Medical 5.2
Real Estate 3.3
Retail 3.2
Technology 15.9
Other 8.9
- --------------------------
Total 100.0%
- --------------------------
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--97.9%
AGRICULTURE--0.5%
2,700 DeKalb Genetics Corp. $ 192
4,665 Delta & Pine Land Co. 142
5,600 Dimon, Inc. 130
8,500 Longview Fibre Co. 143
2,400 Northland Cranberries, Inc. 31
1,500 Tejon Ranch Co. 26
--------
664
--------
APPAREL--0.5%
1,600 Donnkenny, Inc.* 7
800 Fossil, Inc.* 14
1,500 Gadzooks, Inc.* 50
4,200 Genesco, Inc.* 58
4,300 Hartmarx Corp.* 42
3,450 Kellwood Co. 91
1,100 Kenneth Cole Productions, Inc.* 17
1,100 Marisa Christina, Inc.* 11
6,200 Nautica Enterprises, Inc.* 146
1,900 Oshkosh B' Gosh, Inc. 32
2,500 St. John Knits, Inc. 106
1,900 Starter Corp.* 9
1,650 Unitog Co. 39
1,800 Vans, Inc.* 23
--------
645
--------
BANKING--8.4%
4,250 Aames Financial Corp. 55
1,880 Albank Financial Corp. 72
1,900 Amcore Financial, Inc. 54
1,900 American Federal Bank 58
1,000 Anchor Bancorp, Inc. 43
3,690 Associated Banc-Corp. 140
3,200 BancorpSouth, Inc. 93
1,402 Bank of Granite Corp. 40
1,700 BankAtlantic Bancorp, Inc. 24
2,264 Bankers Corp. 57
1,200 Banknorth Group, Inc. 52
1,100 Bay View Capital Corp. 55
1,089 Brenton Banks, Inc. 28
1,400 CBT Corp. 31
2,600 CCB Financial Corp. 183
4,000 Centura Banks, Inc. 173
1,787 Chittenden Corp. 53
1,350 CitFed Bancorp, Inc. 50
1,800 Citizens Banking Corp. 58
6,500 City National Corp. 156
3,278 CNB Bancshares, Inc. 144
3,200 Coast Savings Financial, Inc.* 136
3,500 Collective Bancorp, Inc. 150
3,800 Colonial BancGroup, Inc. 92
2,061 Commerce Bancorp, Inc. 71
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------
<C> <S> <C>
3,750 Commercial Federal Corp. $ 130
2,954 Commonwealth Bancorp 44
2,800 Community First Bankshares, Inc. 97
1,430 Community Trust Bancorp, Inc.* 36
800 CPB, Inc. 28
3,880 Cullen/Frost Bankers, Inc. 152
2,863 Downey Financial Corp. 57
3,055 F & M Bancorp 72
1,188 F & M National Corp. 38
1,767 Fidelity National Corp. 23
1,370 Financial Trust Corp.* 67
1,900 First Citizens Bancshares, Inc. 157
1,900 First Commercial Bancshares, Inc. 48
3,837 First Commercial Corp. 157
3,600 First Commonwealth Financial Corp. 69
1,700 First Federal Financial Corp.* 46
2,452 First Financial Bancorp 93
1,025 First Financial Bancshares, Inc. 42
6,375 First Financial Corp. 177
4,000 First Hawaiian, Inc. 142
1,298 First Indiana Corp. 27
4,782 First Michigan Bank Corp. 137
2,575 First Midwest Bancorp, Inc. 84
1,900 First Savings Bank of Washington Bancorp, Inc. 39
1,050 First United Bancshares, Inc. 42
1,388 First Western Bancorp, Inc. 48
1,800 Firstbank of Illinois Co. 67
2,025 FirstBank Puerto Rico 49
5,200 Firstmerit Corp. 238
1,559 FNB Corp. 41
1,950 Fort Wayne National Corp. 87
6,225 Fulton Financial Corp. 163
7,476 Glendale Federal Bank FSB* 190
2,300 Great Financial Corp. 75
1,610 Hancock Holding Co. 67
1,113 Harleysville National Corp. 33
500 Harris Savings Bank 10
900 Heritage Financial Services, Inc. 24
3,229 Hubco, Inc. 84
3,022 Imperial Bancorp* 75
3,964 Imperial Credit Industries, Inc.* 74
1,000 Irwin Financial Corp. 27
2,600 Jefferson Bancshares, Inc. 76
6,449 Keystone Financial, Inc. 191
2,100 Klamath First Bancorp 39
900 Liberty Bancorp, Inc. 44
4,200 Long Island Bancorp, Inc. 146
2,200 Magna Bancorp, Inc. 52
5,994 Magna Group, Inc. 193
3,359 Mid-Am, Inc. 59
2,600 ML Bancorp, Inc. 45
700 National Bancorp of Alaska, Inc. 55
1,638 National City Bancshares, Inc. 61
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
8,500 National Commerce Bancorp $ 201
1,126 National Penn Bancshares, Inc. 34
2,476 New York Bancorp, Inc. 81
10,868 North Fork Bancorp, Inc. 228
4,595 Old National Bancorp 184
1,500 Omega Financial Corp. 50
2,195 ONBANCorp, Inc. 103
3,225 One Valley Bancorp of West Virginia, Inc. 130
700 Park National Corp. 43
3,000 Peoples Bank of Bridgeport, CT 70
4,300 Peoples Heritage Financial Group, Inc. 142
1,100 Pinnacle Banc Group, Inc. 20
3,050 Provident Bancorp, Inc. 122
1,394 Provident Bankshares Corp. 52
1,800 Queen City Bancorp 74
1,900 RCSB Financial, Inc. 78
1,400 Reliance Acceptance Group, Inc. 8
2,791 Republic Bancorp, Inc. 36
1,797 Resource Bancshares Mortgage Group, Inc.* 26
3,300 Riggs National Corp.* 61
5,714 Roosevelt Financial Group, Inc. 132
1,800 S & T Bancorp, Inc. 65
1,600 Security Capital Corp. 147
1,600 Silicon Valley Bancshares* 63
10,788 Sovereign Bancorp, Inc. 141
3,913 St. Paul Bancorp, Inc. 124
2,900 Standard Financial, Inc.* 67
700 Student Loan Corp. 26
700 Sumitomo Bank of California 19
2,275 Susquehanna Bancshares, Inc. 89
3,000 T.R. Financial Corp.* 60
3,200 Trust Co. of Jersey City 59
3,283 Trustco Bank Corp. 67
4,500 Trustmark Corp. 122
2,832 UMB Financial Corp. 113
2,500 United Bankshares, Inc. 93
4,100 United Carolina Bancshares Corp. 184
900 USBancorp, Inc. 43
2,800 UST Corp. 59
7,590 Washington Federal, Inc. 200
1,500 Wesbanco, Inc. 55
2,500 Westamerica Bancorp 170
1,718 Westcorp, Inc. 28
2,775 Whitney Holding Corp. 106
--------
10,360
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
1,400 Ashland Coal, Inc. 37
1,200 Nacco Industries, Inc. 61
--------
98
--------
BROKERAGE AND FINANCIAL SERVICES--1.7%
3,750 Alex Brown, Inc. 251
2,200 Allied Capital Commercial Corp. 51
400 American Financial Enterprises, Inc. 15
2,400 Amresco, Inc. 42
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
867 BOK Financial Corp.* $ 29
700 CapMAC Holdings, Inc. 19
1,920 Carolina First Corp. 29
800 Cityscape Financial Corp.* 11
4,000 CMAC Investment Corp. 167
5,850 Crawford & Co., Class B 97
5,000 Crimmi Mae, Inc. 81
1,000 Cybercash, Inc.* 13
1,700 Financial Federal Corp.* 33
5,400 Insignia Financial Group, Inc., Class A* 96
2,100 Interra Financial, Inc. 91
600 Investment Technology Group, Inc.* 13
1,700 Jefferies Group, Inc. 91
2,700 Legg Mason, Inc. 124
1,540 McDonald & Co. Investments, Inc. 59
2,625 Morgan Keegan, Inc. 47
3,900 Penncorp Financial Group, Inc. 133
7,550 Phoenix Duff & Phelps Corp. 56
3,700 Pioneer Group, Inc. 92
1,900 Piper Jaffray Cos., Inc. 37
2,785 Quick & Reilly Group, Inc. 64
4,050 Raymond James Financial, Inc. 111
2,200 SEI Corp. 50
3,400 U.S. Trust Corp. 160
300 Value Line, Inc. 10
770 WFS Financial, Inc.* 10
500 Winthrop Resource Corp.* 15
--------
2,097
--------
CHEMICALS AND ALLIED PRODUCTS--3.7%
2,600 Advanced Polymer Systems, Inc.* 19
4,900 Alliance Pharmaceutical Corp.* 50
2,300 Alpharma, Inc., Class A* 39
3,500 Amylin Pharmaceuticals, Inc.* 46
1,000 Aphton Corp.* 15
6,000 Arcadian Corp. 62
2,838 Avatex Corp.* 3
1,100 Bush Boake Allen, Inc.* 32
6,600 Calgon Carbon Corp. 92
2,200 Capstone Pharmacy Services, Inc.* 22
900 Cardinal Health ,Inc. 52
3,900 Carter-Wallace, Inc. 64
2,500 Cellpro, Inc.* 16
4,000 Cephalone, Inc.* 50
1,500 Chemed Corp. 55
3,500 Chemfirst, Inc. 91
3,100 Church & Dwight, Inc. 82
1,500 Collagen Corp. 26
1,274 Copley Pharmaceutical, Inc.* 8
12,439 Crompton & Knowles Corp. 291
2,800 Cygnus, Inc.* 46
4,000 Dexter Corp. 121
1,800 Diagnostic Products Corp. 54
7,200 Dura Pharmaceuticals, Inc.* 286
2,200 Epitope, Inc.* 19
</TABLE>
See accompanying notes to financial statements.
49
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
CHEMICALS AND ALLIED PRODUCTS--Continued
1,500 Ergo Science Corp.* $ 20
2,400 Fuller (H.B.) Co. 133
2,200 GelTex Pharmaceuticals, Inc.* 42
5,900 Genelabs Technologies, Inc.* 14
3,600 Geon Co. 78
2,100 Herbalife International, Inc. 44
4,100 Hybridon, Inc. 27
6,101 ICN Pharmaceuticals, Inc. 132
5,200 ICOS Corp.* 42
3,200 Immulogic Pharmaceutical Corp.* 13
4,200 Isis Pharmaceuticals, Inc.* 66
3,900 Jones Medical Industries, Inc. 140
1,400 Kronos, Inc.* 36
500 Landec Corp.* 3
5,000 Lawter International, Inc. 58
1,200 Learonal, Inc. 32
1,771 Life Technologies, Inc. 48
3,175 Lilly Industrial, Inc. 67
900 MacDermid, Inc. 41
3,000 Matrix Pharmaceutical, Inc.* 21
1,100 McWhorter Technologies, Inc.* 24
2,300 Medimmune, Inc.* 36
3,900 Mineral Technologies, Inc. 154
4,568 Mississippi Chemical Corp. 104
2,700 NBTY, Inc.* 63
600 NCH Corp. 39
4,200 NL Industries, Inc.* 54
2,600 Noven Pharmaceuticals, Inc.* 20
3,300 OM Group, Inc. 104
1,000 PDT, Inc.* 28
1,000 Petrolite Corp. 60
1,800 Pharmacopeia, Inc.* 27
3,400 Regeneron Pharmaceuticals, Inc.* 36
3,300 Rexene Corp.* 49
2,000 Roberts Pharmaceutical Corp.* 25
3,600 Ross Cosmetics Distribution Centers, Inc. 11
6,500 Schulman (A.), Inc. 145
3,100 Scotts Co.* 91
4,400 Sepracor, Inc.* 108
4,800 Sequus Pharmaceuticals, Inc.* 34
3,100 Somatogen, Inc.* 17
1,600 Stepan Co. 31
1,500 Techne Corp.* 41
2,135 Tetra Tech, Inc.* 43
2,200 Tetra Technologies, Inc.* 54
1,000 USA Detergents, Inc.* 13
1,800 Valhi, Inc. 15
5,300 Valspar Corp. 148
3,300 Vertex Pharmaceuticals, Inc.* 134
1,165 WD-40 Co. 66
4,700 Wellman, Inc. 84
--------
4,556
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
COMMUNICATIONS--3.5%
2,300 ACC Corp.* $ 59
3,400 Ackerley Communications, Inc. 42
2,700 Adelphia Communications Corp.* 16
6,000 Aliant Communications, Inc. 123
2,700 American Mobile Satellite Corp.* 24
600 American Paging, Inc.* 1
4,690 American Radio Systems, Inc.* 175
1,700 American Telecasting, Inc.* 2
1,000 Ancor Communications, Inc.* 6
4,300 ANTEC Corp.* 53
2,100 Applied Digital Access, Inc.* 13
1,600 Applied Innovation, Inc.* 10
1,800 Argyle Television, Inc.* 42
2,900 ATC Communications Group, Inc.* 12
900 Atlantic Tele-Network, Inc.* 11
1,200 BET Holdings, Inc.* 39
2,800 Black Box Corp.* 99
2,390 Block Drug Co., Inc. 106
2,812 Brightpoint, Inc.* 87
1,500 Brite Voice Systems, Inc.* 13
1,900 Broadband Technologies, Inc.* 18
2,200 C-TEC Corp.* 67
2,850 Cable Design Technologies Corp.* 78
5,470 CAI Wireless Systems, Inc.* 8
1,600 Cellstar Corp.* 57
1,800 Cellular Communications International, Inc.* 48
3,480 Cellular Technical Services, Inc.* 47
900 Cellularvision USA, Inc.* 6
5,500 Century Communications Corp., Class A* 30
2,100 CFW Communications Co. 39
2,500 CIDCO, Inc.* 36
2,400 Commnet Cellular, Inc.* 82
2,000 Corecomm, Inc.* 32
1,500 Data Transmission Network Corp.* 41
1,350 Davox Corp.* 44
1,100 Desktop Data, Inc.* 9
7,700 DSP Communications, Inc.* 86
1,400 EIS International, Inc.* 10
1,200 Emmis Broadcasting Corp., Class A* 46
4,850 Evergreen Media Corp., Class A* 189
2,600 Executive Telecard Ltd.* 19
8,000 Executone Information Systems, Inc.* 16
1,700 FastComm Communications Corp.* 13
4,100 General Communications, Inc.* 28
1,700 Harmonic Lightwaves, Inc.* 28
2,200 Heartland Wireless Communications, Inc.* 6
1,100 Heftel Broadcasting Corp., Class A* 54
5,500 Heritage Media Corp.* 100
3,600 HighwayMaster Communications, Inc.* 50
8,028 HSN, Inc. 246
1,600 Intercel, Inc.* 22
2,600 Intermedia Communications, Inc.* 78
2,400 International Cabletel, Inc.* 56
600 IPC Information Systems, Inc.* 8
</TABLE>
See accompanying notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
1,100 Jacor Communications, Inc.* $ 38
3,478 Jones Intercable, Inc., Class A* 37
2,200 Level One Communications, Inc.* 83
2,000 Lin Television Corp* 87
1,800 Mastec, Inc.* 73
1,900 Media General, Inc. 58
3,550 Metrocall, Inc.* 18
6,057 Metromedia International Group, Inc.* 66
2,700 MIDCOM Communications, Inc.* 20
8,900 Mobile Telecommunications Technologies Corp.* 108
7,400 MobileMedia Corp.* 4
4,933 NTL, Inc.* 113
1,500 Ods Networks, Inc.* 24
1,100 Ortel Corp.* 15
2,700 P-COM, Inc.* 87
1,200 Palmer Wireless, Inc.* 19
200 Paxson Communications Corp.* 2
1,800 People's Choice TV Corp.* 2
1,600 Periphonics Corp.* 30
1,500 Plantronics, Inc.* 66
1,800 ProNet, Inc.* 6
500 Renaissance Communications Corp.* 19
1,500 SAGA Communications, Inc.* 28
1,000 SFX Broadcasting, Inc., Class A* 32
1,800 TCA Cable TV, Inc. 12
2,700 Tel-Save Holdings, Inc.* 42
1,800 Telco Systems, Inc.* 19
1,000 Teltrend, Inc.* 17
1,250 Transaction Network Services, Inc.* 18
2,000 Trescom International, Inc.* 15
3,000 True North Communications, Inc. 60
2,600 U.S. Long Distance Corp.* 40
6,400 United International Holdings, Inc., Class A* 64
700 United Television, Inc. 62
1,800 United Video Satellite Group, Inc.* 31
4,800 Valuevision International, Inc.* 19
4,700 Vanguard Cellular Systems, Inc.* 62
2,100 VideoLan Technologies, Inc.* 1
5,300 Westwood One, Inc.* 144
4,600 WinStar Communications, Inc.* 65
2,600 Wireless One Corp.* 8
1,500 Young Broadcasting Corp.* 40
--------
4,384
--------
COMPUTERS AND OFFICE MACHINES--3.1%
1,600 ACT Networks, Inc.* 28
3,100 Actel Corp.* 65
3,900 Alliance Semiconductor Corp.* 33
1,400 Applix, Inc.* 6
5,600 AST Research, Inc.* 29
4,200 Auspex Systems, Inc.* 44
3,400 Avid Technology, Inc.* 80
3,366 BancTec, Inc.* 85
900 Boca Research, Inc.* 6
5,400 Borland International, Inc.* 39
1,500 Brooktrout Technology, Inc.* 20
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,700 BT Office Products International, Inc.* $ 13
2,300 Caere Corp.* 19
1,896 Cambrex Corp. 68
2,000 Centennial Technologies, Inc.* 6
3,700 Chips & Technologies, Inc.* 41
2,100 Chronimed, Inc.* 21
4,000 Computer Network Technology Corp.* 19
3,700 Comverse Technology, Inc.* 169
2,300 Control Data Systems, Inc.* 34
7,600 Copytele, Inc.* 39
6,600 Data General Corp.* 141
900 Day Runner, Inc.* 25
1,300 Dialogic Corp.* 38
5,000 Diamond Multimedia Systems, Inc.* 40
2,000 Digi International, Inc.* 18
3,100 Dynatech Corp.* 116
1,500 Encad, Inc.* 56
1,600 Evans & Sutherland Computer Corp.* 42
3,600 Exabyte Corp.* 51
1,500 Excalibur Technologies Corp.* 7
2,400 Filenet Corp.* 40
5,200 FTP Software, Inc.* 29
1,100 General Binding Corp. 32
2,900 Hyperion Software Corp.* 52
1,300 Infinium Software, Inc. 11
4,500 Information Resources, Inc.* 68
5,300 Intelligent Electronics, Inc. 14
6,600 Intergraph Corp.* 47
2,700 Interpool, Inc.* 38
1,600 Itron, Inc.* 43
2,184 Logicon, Inc. 110
1,200 Media 100 Inc.* 7
2,700 Mercury Interactive Corp.* 47
1,400 Microcom, Inc.* 35
1,400 Micros Systems, Inc.* 56
8,000 Miller (Herman), Inc. 286
3,400 Mylex Corp.* 34
2,200 National Computer Systems, Inc. 56
5,300 Netmanage, Inc.* 18
3,700 Nu-Kote Holding, Inc.* 9
3,000 Phoenix Technologies Ltd.* 42
1,400 Planar Systems, Inc.* 17
8,098 Platinum Technology, Inc.* 117
1,600 Proxim, Inc.* 41
900 Radisys, Inc.* 33
8,400 S3, Inc.* 103
2,800 Sandisk Corp.* 40
3,400 Santa Cruz Operation, Inc.* 15
4,900 Sequent Computer Systems, Inc.* 83
3,400 Silicon Storage Technology, Inc.* 12
2,400 SMART Modular Technologies, Inc.* 81
2,300 Standard Microsystems Corp.* 21
500 Storage Computer Corp.* 7
3,000 StorMedia, Inc.* 36
4,200 Stratus Computer, Inc.* 192
2,000 SubMicron Systems, Inc.* 5
</TABLE>
See accompanying notes to financial statements.
51
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
COMPUTERS AND OFFICE MACHINES--Continued
3,150 Sylvan Learning Systems, Inc.* $ 113
2,900 Synetic, Inc.* 113
1,200 3D Systems Corp.* 9
1,100 Tech Data Corp.* 35
2,100 Trident Microsystems, Inc.* 30
2,400 Tseng Laboratories, Inc.* 9
1,200 USDATA Corp., Inc.* 6
1,300 Wall Data, Inc.* 33
6,200 Wang Labs, Inc.* 127
2,300 Wonderware Corp.* 31
600 Xpedite Systems, Inc.* 11
3,200 Zebra Technologies Corp.* 98
--------
3,890
--------
CREDIT INSTITUTIONS--0.4%
2,800 Astoria Financial Corp. 116
3,400 Credit Acceptance Corp.* 48
2,700 First Colorado Bancorp 47
902 First Financial Corp. 32
1,200 Firstplus Financial Group* 31
1,700 Jayhawk Acceptance Corp.* 3
1,500 JSB Financial, Inc. 66
2,200 National Auto Credit, Inc.* 21
2,400 North American Mortgage Co. 48
2,600 Ryland Group, Inc. 34
3,600 World Acceptance Corp.* 22
--------
468
--------
ELECTRICAL SERVICES--2.4%
600 Advanced Lighting Technologies, Inc.* 15
9,000 Atlantic Energy, Inc. 148
2,500 Black Hills Corp. 71
3,000 Central Hudson Gas & Electric Corp. 96
3,800 Central Louisiana Electric Co., Inc. 95
5,300 Central Maine Power Co. 58
3,400 Checkfree Corp.* 59
2,200 CILCORP, Inc. 85
13,391 Citizens Utilities Co., Series B* 126
3,400 Commonwealth Energy Systems Cos. 73
3,300 Eastern Utilities Association 58
9,800 El Paso Electric Co.* 69
3,100 Electroglas, Inc.* 78
2,800 Empire District Electric Co. 49
2,200 Envoy Corp.* 66
5,100 IES Industries, Inc. 149
1,700 Interstate Power Co. 48
2,550 Madison Gas & Electric Co. 51
5,100 Minnesota Power & Light Co. 148
8,300 Nevada Power Co. 171
3,178 Northwestern Public Service Co. 62
2,200 Orange & Rockland Utilities, Inc. 70
1,800 Otter Tail Power Co. 55
4,800 PMT Services, Inc.* 77
6,400 Public Service Co. of New Mexico* 113
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
6,600 Rochester Gas & Electric Corp. $ 132
5,200 Sierra Pacific Resources 154
4,050 SIGCORP, Inc. 102
1,900 TNP Enterprises, Inc. 42
5,280 Tucson Electric Power Co.* 78
2,300 United Illuminating Co. 66
5,300 WPL Holdings, Inc. 146
4,100 WPS Resources Corp. 109
1,850 Yankee Energy System, Inc. 43
2,000 Zurn Industries, Inc. 53
--------
3,015
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
6.1%
1,000 Advanced Energy Industries, Inc.* 12
2,500 Altron, Inc.* 42
5,600 Ametek, Inc. 131
4,800 Ampex Corp.* 31
1,200 ANADIGICS, Inc.* 40
6,200 Anixter International, Inc.* 105
4,122 Applied Magnetics Corp.* 103
1,000 Associated Group, Inc.* 41
2,975 Avant! Corp.* 68
3,420 Baldor Electric Co. 96
4,100 Belden, Inc. 149
1,000 Berg Electronics Corp.* 35
4,800 BMC Industries, Inc. 158
4,000 Boston Technology, Inc.* 115
4,050 Burr-Brown Corp.* 127
1,700 C-COR Electronics, Inc.* 17
1,700 C.P. Clare Corp.* 24
2,000 California Amplifier, Inc.* 8
2,800 California Microwave, Inc.* 34
1,000 Charter Power Systems, Inc. 34
750 Chicago Miniature Lamp, Inc.* 18
5,333 Chyron Corp.* 25
1,500 Coherent Communications Systems Corp.* 33
1,600 Cohu, Inc. 55
4,000 Computer Products, Inc.* 89
3,600 Credence Systems Corp.* 106
1,800 Cree Research, Inc.* 23
663 CTS Corp. 46
2,900 Cyrix Corp.* 73
4,800 Dallas Semiconductor Corp. 185
2,500 Digital Microwave Corp.* 78
2,000 DII Group* 64
1,500 Electro Scientific Industries, Inc.* 57
900 Eltron International, Inc.* 25
1,800 Energy Conversion Devices, Inc.* 27
3,100 ESS Technology, Inc.* 48
1,500 Esterline Technologies Corp.* 45
768 Franklin Electric Co., Inc.* 36
1,100 Galileo Corp.* 8
3,600 General DataComm Industries, Inc.* 32
1,300 General Scanning, Inc.* 17
2,800 Genus, Inc.* 16
5,100 Griffon Corp.* 69
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
1,400 HADCO Corp.* $ 84
2,610 Harman International Industries, Inc. 109
1,800 Holophane Corp.* 38
2,700 Hutchinson Technologies, Inc.* 74
12,600 Imatron, Inc.* 35
1,600 Imnet Systems, Inc.* 40
4,700 IMP, Inc.* 8
13,300 Integrated Device Technology, Inc.* 187
2,600 Integrated Silicon Solution, Inc.* 25
1,400 Inter-Tel, Inc.* 22
7,600 Interdigital Communications Corp.* 50
2,086 Intermagnetics General Corp.* 29
4,900 International Family Entertainment, Inc.* 137
2,700 Intervoice, Inc.* 30
1,500 ITI Technologies, Inc.* 24
3,000 Juno Lighting, Inc. 48
2,300 Kuhlman Corp.* 64
3,850 Lattice Semiconductor Corp.* 223
4,200 Lincoln Electric Co. 164
1,900 Littelfuse, Inc.* 98
3,800 Lojack Corp.* 44
1,200 LSI Industries, Inc. 18
6,100 LTX Corp.* 37
3,500 Magnetek, Inc.* 61
1,800 Mattson Technology, Inc.* 19
600 Merix Corp.* 10
5,150 Methode Electronics, Inc., Class A 87
1,000 Mosaix, Inc.* 14
8,750 Microchip Technology, Inc.* 311
2,100 MRV Communications, Inc.* 52
700 National Presto Industries, Inc. 26
4,600 NexGen, Inc. 50
3,040 Oak Industries, Inc.* 75
3,500 Palomar Medical Technologies, Inc.* 11
1,698 Park Electrochemical Corp.* 43
6,500 Pentair, Inc. 214
1,200 Perceptron, Inc.* 34
3,937 Pioneer Standard Electronics, Inc. 49
3,150 Pittway Corp. 167
3,875 PriCellular Corp.* 35
2,400 Quickturn Design Systems, Inc.* 25
4,700 Ramtron International Corp.* 24
1,698 Recoton Corp.* 22
1,700 Rival Co. 24
3,000 Robotic Vision Systems, Inc.* 35
3,000 Sammina Corp.* 174
1,400 SDL, Inc.* 28
1,150 Semitool, Inc.* 14
1,500 Sheldahl, Inc.* 32
4,900 Sierra Semiconductor Corp.* 118
5,000 Silicon Valley Group, Inc.* 120
1,700 Siliconix, Inc.* 43
700 Speedfam International, Inc.* 26
1,200 SPS Transaction Services, Inc.* 23
1,400 Standard Motor Products, Inc. 19
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
1,500 Stanford Telecommunications, Inc.* $ 25
1,200 Supertex, Inc.* 18
2,700 Symetricon, Inc. 43
2,900 3DO Co.* 13
2,400 Technitrol, Inc. 60
1,200 Tekelec* 42
500 ThermoSpectra Corp.* 7
1,800 Thomas Industries, Inc. 51
4,900 Top Source Technologies, Inc.* 9
2,000 TranSwitch Corp.* 13
1,300 Triquint Semiconductor, Inc.* 52
3,100 Ultratech Stepper, Inc.* 63
2,700 Uniphase Corp.* 142
1,800 Unitrode Corp.* 89
5,100 Vicor Corp.* 101
5,000 Vitesse Semiconductor Corp.* 179
7,800 VLSI Technology, Inc.* 190
2,900 Windmere Corp. 43
2,100 Wyle Electronics 78
3,200 Xicor, Inc.* 22
4,447 Zenith Electronics Corp.* 49
3,350 Zilog, Inc.* 75
1,400 Zygo Corp.* 41
1,100 Zytec Corp.* 20
--------
7,543
--------
FOOD AND BEVERAGES--1.8%
5,300 Applebee's International, Inc. 132
7,000 Bob Evans Farms, Inc. 99
2,800 Boston Beer Co., Inc.* 25
2,900 Canandaigua Wine Company, Inc.* 104
1,500 Cheesecake Factory, Inc.* 30
4,900 Chiquita Brands International, Inc. 75
1,000 Coca-Cola Bottling Co. 45
6,200 Coors (Adolph) Co., Class B 151
6,900 Dean Foods Co. 262
1,800 Dreyer's Grand Ice Cream, Inc. 66
1,600 Earthgrains Co. 91
6,500 Fleming Companies, Inc. 124
5,500 Host Marriott Services Corp.* 55
3,500 Hudson Foods, Inc. 56
1,400 IHOP Corp.* 39
2,700 Lance, Inc. 53
2,700 Landry's Seafood Restaurants, Inc.* 50
3,800 Luby's Cafeterias, Inc. 74
400 Manhattan Bagel Co., Inc.* 3
2,100 Michael Foods, Inc. 30
1,400 Mondavi (Robert) Corp., Class A* 62
2,050 Papa Johns International, Inc.* 65
2,900 Pepsi-Cola Puerto Rico Bottling Co. 15
1,400 Pete's Brewing Co.* 8
1,500 Quality Dining, Inc.* 9
1,500 Rainforest Cafe, Inc.* 37
1,200 Rare Hospitality Intl, Inc.* 19
1,500 Redhook Ale Brewery, Inc.* 11
</TABLE>
See accompanying notes to financial statements.
53
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
FOOD AND BEVERAGES--Continued
<C> <S> <C>
1,300 Riviana Foods, Inc. $ 25
2,500 Ruby Tuesday, Inc.* 54
8,400 Ryan's Family Steak Houses, Inc.* 77
2,150 Sbarro, Inc. 63
6,400 Shoney's, Inc.* 36
2,700 Smithfield Foods, Inc.* 148
3,920 Triarc Cos., Inc., Class A* 90
2,764 WLR Foods, Inc. 28
--------
2,311
--------
FOOD AND MANUFACTURING--1.1%
2,000 Daka International, Inc.* 25
198 Farmer Bros. Co. 25
14,850 Flowers Industries, Inc., Class A 262
3,600 M & F Worldwide Corp.* 28
1,350 Performance Food Group Co.* 28
10,400 Premark International, Inc. 283
5,000 Ralcorp Holding, Inc.* 61
1,400 Riser Foods, Inc.* 58
1,200 Sanderson Farms, Inc. 18
3,300 Savannah Foods & Industries, Inc. 52
100 Seaboard Corp. 28
5,000 Smucker (J.M.) Co. 97
3,134 Tootsie Roll Industries, Inc. 151
700 TurboChef, Inc.* 10
4,300 Universal Foods Corp. 154
--------
1,280
--------
FURNITURE AND FIXTURES--0.7%
2,200 Bassett Furniture Industries, Inc. 55
1,600 Bush Industries, Inc. 36
2,100 CORT Business Services Corp.* 58
2,400 Ethan Allen Interiors, Inc.* 125
1,100 Falcon Building Products, Inc.* 19
8,900 Heilig-Meyers Co. 147
4,000 HON Industries, Inc. 194
3,000 Kimball International, Inc. 119
2,300 La-Z-Boy Chair Co. 79
2,600 Triangle Pacific Corp.* 78
--------
910
--------
GENERAL BUILDING CONTRACTORS--1.0%
1,800 ABT Building Products Corp.* 45
3,000 AMCOL International Co. 55
2,100 AMRE, Inc.* 0
1,800 Blount, Inc. 74
13,100 Catellus Development Corp.* 221
5,000 Centex Corp. 199
1,200 Continental Homes Holding Corp. 20
4,000 Eagle Hardware & Garden, Inc.* 96
3,158 Horton (D.R.), Inc.* 30
6,800 Kaufman & Broad Home Corp. 102
1,100 NCI Building Systems, Inc.* 32
2,000 NVR, Inc.* 31
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
1,825 Palm Harbor Homes, Inc.* $ 52
3,000 Pulte Corp. 95
1,650 Southern Energy Homes, Inc.* 18
5,200 Standard Pacific Corp. 53
3,600 Toll Brothers, Inc.* 66
1,879 U.S. Home Corp.* 50
3,000 Webb (Del E.) Corp. 46
--------
1,285
--------
GLASS, CLAY AND STONE PRODUCTS--0.6%
700 Ameron, Inc. 39
5,200 Ball Corp. 151
2,000 Centex Construction Products, Inc.* 40
1,200 Florida Rock Industries, Inc. 40
5,000 Gentex Corp.* 101
2,600 Medusa Corp. 100
1,290 Mikasa, Inc.* 15
1,500 Photronics, Inc.* 67
800 Puerto Rican Cement Co. 26
3,600 Southdown, Inc.* 145
--------
724
--------
HEALTH SERVICES--4.5%
2,200 Access Health Marketing, Inc.* 48
2,700 Alteon, Inc.* 11
1,400 American HomePatient, Inc.* 27
1,300 Amisys Managed Care Systems* 29
4,600 Angeion Corp.* 23
4,700 Apogee, Inc. 87
1,000 Arbor Health Care Co.* 29
1,200 Barr Labs, Inc.* 32
1,700 Bio-Rad Labs, Inc.* 43
1,300 Carrington Laboratories, Inc.* 10
4,000 Cerner Corp.* 78
2,800 Coastal Physician Group, Inc.* 3
3,300 Cocensys, Inc.* 13
1,700 Compdent Corp.* 31
3,400 COR Therapeutics, Inc.* 30
7,100 Coram Healthcare Corp.* 20
5,000 Creative BioMolecules, Inc.* 51
1,200 Cryolife, Inc.* 14
1,700 Curative Health Services, Inc.* 47
3,300 Cytel Corp.* 7
1,400 Emeritus Corp.* 21
3,323 Enzo Biochem, Inc.* 50
2,400 Equimed, Inc.* 8
7,424 Extended Stay America, Inc.* 103
2,100 Fuisz Technologies, Ltd.* 18
1,300 Fusion Systems Corp.* 40
6,100 Genesis Health Ventures, Inc.* 201
4,400 Gensia, Inc.* 20
3,785 Grancare, Inc.* 35
2,200 Gulf South Medical Supply, Inc.* 43
3,800 Haemonetics Corp.* 65
2,500 Health Management Systems, Inc.* 14
2,121 Healthdyne Technologies, Inc.* 31
</TABLE>
See accompanying notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
2,043 HealthPlan Services Corp.* $ 34
1,200 Henry Schien, Inc.* 40
8,892 Horizon Healthcare Corp.* 162
3,200 Human Genome Sciences, Inc.* 124
2,100 I-STAT Corp.* 37
1,300 ICU Medical, Inc.* 12
2,000 IDEC Pharmaceuticals Corp.* 45
900 IDX Systems Corp.* 29
2,600 Immune Response Corp.* 22
3,600 Immunomedics, Inc.* 19
1,575 INBRAND Corp.* 42
1,200 Incyte Pharmaceuticals, Inc.* 79
1,800 Inhale Therapeutic Systems* 36
1,900 Inphynet Medical Management, Inc.* 41
4,557 Integra Lifesciences Corp.* 14
3,800 Integrated Health Services, Inc. 137
400 Intercardia, Inc.* 8
5,000 Invacare Corp. 108
2,100 KeraVision, Inc.* 20
2,800 Kinetic Concepts, Inc. 46
400 Labone, Inc. 7
13,800 Laboratory Corporation of America Holdings* 40
1,500 Landauer, Inc. 34
400 LCA-Vision, Inc.* 2
1,900 Lifecore Biomedical, Inc.* 27
3,958 Ligand Pharmaceuticals, Inc.* 47
2,200 Living Centers of America, Inc.* 84
5,500 Magellan Health Services, Inc.* 150
4,800 Mariner Health Group, Inc.* 58
2,200 Martek Biosciences Corp.* 37
5,700 Matria Healthcare, Inc.* 25
3,000 Maxicare Health Plans, Inc.* 72
1,800 MedCath, Inc.* 27
1,600 Meridian Diagnostics, Inc. 14
600 MiniMed, Inc.* 15
1,700 MMI Cos., Inc. 40
1,633 Morrison Health Care, Inc. 27
2,200 Multicare Cos., Inc.* 55
1,500 Myriad Genetics, Inc.* 40
5,200 NABI, Inc.* 36
1,500 National Surgery Centers, Inc.* 58
3,100 Neoprobe Corp.* 47
1,400 Neose Technologies, Inc.* 18
2,500 Neurex Corp.* 37
2,100 Neurogen Corp.* 40
4,800 Neuromedical Systems, Inc.* 32
2,100 Northfield Laboratories, Inc.* 21
10,700 NovaCare, Inc.* 135
3,400 OccuSystems, Inc.* 89
3,100 OIS Optical Imaging Systems, Inc.* 8
3,300 Oncogene Science, Inc.* 21
3,300 OrthoLogic Corp.* 19
4,400 Owen Healthcare, Inc.* 56
1,900 PathoGenesis Corp.* 52
1,500 Pediatrix Medical Group* 60
1,300 Perclose, Inc.* 30
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
11,000 Perrigo Co.* $ 132
1,900 PHP Healthcare Corp.* 29
6,300 Physician Corporation Of America* 45
1,200 Physicians Health Services, Inc.* 32
1,600 Prime Medical Services, Inc.* 18
2,900 Regency Health Services, Inc.* 36
800 RES-CARE, Inc.* 16
2,800 Resound Corp.* 14
1,650 Rexall Sundown, Inc.* 44
600 RightCHOICE Managed Care, Inc., Class A* 7
4,200 RoTech Medical Corp.* 71
1,600 Rural/Metro Corp.* 51
2,600 Safeskin Corp.* 65
2,100 Serologicals Corp.* 40
3,700 Sofamor/Danek Group, Inc.* 170
3,700 Somatix Therapy Corp.* 8
6,580 Sun Healthcare Group, Inc.* 110
5,400 Target Therapeutics, Inc.* 70
7,200 Transitional Hospitals Corp.* 114
1,400 Universal Health Realty Income Trust 27
5,600 Universal Health Services, Inc.* 227
3,400 Uromed Corp.* 16
2,800 Veterinary Centers of America, Inc.* 34
2,500 Vical, Inc.* 31
2,209 Vitalink Pharmacy Services, Inc.* 42
2,900 Vivus, Inc.* 119
5,500 XOMA Corp.* 28
3,800 Zila, Inc.* 26
--------
5,519
--------
HEAVY CONSTRUCTION--0.3%
420 Diana Corp.* 1
1,750 Granite Construction, Inc. 35
2,600 Greenfield Industries, Inc. 68
3,716 Instituform Technologies, Inc.* 22
4,600 Lennar Corp. 121
1,900 Lone Star Industries, Inc.* 76
2,791 Morrison Knudsen Corp.* 35
--------
358
--------
INDUSTRIAL INSTRUMENTS--3.6%
3,500 Acuson Corp.* 91
3,100 ADAC Laboratories 81
2,600 Advanced Technology Laboratories, Inc.* 101
2,400 Alkermes, Inc.* 40
3,800 Allen Group, Inc. 88
1,300 Analogic Corp. 42
1,800 Arrow International, Inc.* 58
900 ArthroCare Corp. 7
2,600 ATS Medical, Inc.* 16
4,400 Ballard Medical Products 85
2,200 Barnett, Inc.* 49
1,200 Biomatrix, Inc.* 21
2,700 Buckeye Cellulose Corp.* 85
1,751 Chad Therapeutics, Inc.* 14
6,800 Cincinnati Milacron, Inc.* 157
</TABLE>
See accompanying notes to financial statements.
55
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
INDUSTRIAL INSTRUMENTS--Continued
<C> <S> <C>
1,800 Circon Corp.* $ 23
3,300 CNS, Inc. 29
5,500 Cognex Corp.* 143
1,800 Coherent, Inc.* 79
8,400 Coltec Industries, Inc.* 165
400 Conceptus, Inc.* 4
2,450 CONMED Corp.* 46
876 Cubic Corp. 21
700 Cytyc Corp.* 17
2,500 Daniel Industries, Inc. 33
2,400 Datascope Corp.* 46
2,000 DepoTech Corp.* 28
2,100 Dionex Corp.* 111
2,200 Endosonics Corp. 24
2,600 Etec Systems, Inc. 116
4,500 Ferro Corp. 168
3,600 Fisher Scientific International, Inc. 131
1,000 Fluke (John) Manufacturing Co., Inc.* 50
4,200 Genrad, Inc.* 78
5,200 Gilead Sciences, Inc.* 141
575 Hach Co. 9
1,900 Hologic, Inc.* 46
2,000 InControl, Inc.* 19
3,900 Isolyser Company, Inc.* 15
4,600 Kennametal, Inc. 183
5,300 Keystone International, Inc. 173
900 Lunar Corp.* 18
1,700 Marquette Medical Systems, Inc.* 39
5,900 Mascotech, Inc. 132
3,764 Mentor Corp. 99
600 Mine Safety Appliances Co. 36
1,600 MTS Systems Corp. 41
700 OnTrak Systems, Inc.* 20
1,600 Ostex International, Inc.* 3
2,700 Physio-Control International Corp.* 34
2,100 Possis Corp.* 32
1,300 Protocol Systems, Inc.* 10
4,000 R.P. Scherer Corp.* 210
2,800 Respironics, Inc.* 57
2,100 SangStat Medical Corp.* 53
1,700 Spine-Tech, Inc. 59
2,200 Staar Surgical Co.* 29
1,200 Starrett (L.S.) Co. 36
2,900 Sunrise Medical, Inc.* 37
2,600 Tech-Sym Corp.* 61
2,650 TECNOL Medical Products, Inc.* 51
1,600 Theragenics Corp.* 36
2,600 Theratech, Inc.* 29
3,400 Thoratec Laboratories, Inc.* 20
3,200 Trimble Navigation Ltd.* 49
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
2,400 UROHEALTH Systems, Inc.* $ 20
1,000 Vital Signs, Inc. 20
4,400 Waters Corp.* 142
1,396 Watkins-Johnson Co. 44
2,200 Watsco, Inc. 64
2,300 X-Rite, Inc. 43
1,300 Zoltek Companies, Inc.* 41
--------
4,398
--------
INSURANCE SERVICES--4.5%
2,100 Acceptance Insurance Cos., Inc.* 44
2,300 Acordia, Inc. 82
3,500 Alfa Corp. 44
3,375 Allied Group, Inc. 134
1,524 American Annuity Group, Inc.* 28
3,600 American Bankers Insurance Group, Inc. 204
1,450 American Heritage Life Investment Corp. 42
4,000 Amerin Corp.* 94
2,200 Amvestors Financial Corp. 39
3,000 Argonaut Group, Inc. 89
2,300 Baldwin & Lyons, Inc. 40
2,300 Berkley (W.R.) Corp. 119
1,800 Blanch (E.W.) Holdings, Inc. 45
1,800 Capital RE Corp. 79
1,200 Citizens Corp. 30
3,200 Commerce Group, Inc. 72
4,700 Coventry Corp.* 68
1,999 Delphi Financial Group, Inc.* 76
2,000 Enhance Financial Services Group, Inc. 84
1,800 Executive Risk, Inc. 94
5,174 Financial Security Assurance International 187
1,700 First American Financial Corp. 61
1,500 Foremost Corp. of America 85
3,612 Fremont General Corp. 127
1,784 Frontier Insurance Group, Inc. 98
1,100 Fund American Enterprises Holdings, Inc.* 112
3,285 Gainsco, Inc. 27
2,800 Gallagher (Arthur J.) & Co. 89
1,700 Guarantee Life Companies, Inc. 35
2,600 Guaranty National Corp. 56
1,100 Harleysville Group, Inc. 40
3,300 Hartford Steam Boiler 168
4,800 HCC Insurance Holdings, Inc.* 125
1,800 Highlands Insurance Group, Inc.* 36
2,400 Hilb, Rogal & Hamilton Co. 35
4,000 Horace Mann Educators Corp. 193
2,300 Integon Corp. 29
3,800 John Alden Financial Corp. 81
500 Kansas City Life Insurance Co. 36
2,400 Liberty Corp. 95
800 Liberty Financial Cos., Inc. 36
1,700 Life Reinsurance Corp. 73
2,900 Life USA Holding, Inc.* 35
</TABLE>
See accompanying notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
1,498 MAIC Holdings, Inc.* $ 57
700 Markel Corp.* 87
800 Meadowbrook Insurance Group, Inc. 20
2,600 NAC RE Corp. 104
400 National Western Life Insurance Co.* 35
900 Nymagic, Inc. 17
2,390 Orion Capital Corp. 160
1,400 Pioneer Financial Services, Inc. 39
950 Poe & Brown, Inc. 29
4,100 Presidential Life Corp. 59
2,751 PXRE Corp. 74
2,900 Reinsurance Group of America, Inc. 157
10,700 Reliance Group Holdings, Inc. 131
2,900 Risk Capital Holdings, Inc.* 55
1,065 RLI Corp. 34
800 Seafield Capital Corp. 26
1,500 Security Connecticut Corp. 73
2,500 Selective Insurance Group, Inc. 111
2,400 Sierra Health Services, Inc.* 75
1,050 State Auto Financial Corp. 20
7,900 20th Century Industries* 152
1,350 Trenwick Group, Inc. 46
5,800 UICI* 156
4,620 United Cos. Financial Corp. 106
900 United Dental Care, Inc. 15
1,650 United Fire & Casualty Co. 59
1,100 United Wisconsin Services, Inc. 39
3,100 Vesta Insurance Group, Inc. 142
1,900 Washington National Corp. 53
1,800 Zenith National Insurance Corp. 45
1,800 Zurich Reinsurance Centre Holdings, Inc. 70
--------
5,612
--------
JEWELRY AND PRECIOUS METALS--0.0%
1,600 Oneida Ltd. 38
--------
LEATHER PRODUCTS--0.3%
3,100 Brown Group, Inc. 62
3,300 Justin Industries, Inc. 39
1,400 Timberland Co.* 82
7,331 Wolverine World Wide, Inc. 190
--------
373
--------
LUMBER AND WOOD PRODUCTS--0.1%
1,500 Fibreboard Corp.* 82
1,900 Ply-Gem Industries, Inc. 32
2,300 Pope & Talbot, Inc. 38
--------
152
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
MACHINERY--2.3%
700 Ag-Chem Equipment Co., Inc.* $ 14
1,400 Alamo Group, Inc. 27
1,600 Allied Products Corp. 52
2,000 Avondale Industries, Inc.* 38
2,100 Borg-Warner Security Corp.* 33
1,700 Cascade Corp. 29
900 Columbus McKinnon Corp. 16
3,600 Donaldson Co., Inc. 132
900 DT Industries, Inc. 29
4,000 Duriron Co., Inc. 113
3,000 Figgie International Holdings, Inc.* 37
3,900 FSI International, Inc.* 55
1,450 Gasonics International Corp.* 17
5,400 Giddings & Lewis, Inc. 102
600 Gleason Corp. 22
3,700 Global Industrial Technologies, Inc.* 68
3,500 Goulds Pumps, Inc. 130
2,197 Graco, Inc. 62
1,300 Helix Technology Corp. 53
4,425 IDEX Corp. 126
3,100 Indentix, Inc. 31
2,500 Integrated Process Equipment Corp.* 46
2,800 Ionics, Inc.* 134
2,700 Kaydon Corp. 134
3,400 Kulicke & Soffa Industries, Inc.* 115
1,600 Lindsay Manufacturing Co.* 58
1,850 Manitowoc Co., Inc. 83
7,100 Marine Drilling Co., Inc.* 143
3,800 Modine Manufacturing Co. 111
3,450 Mohawk Industries, Inc.* 73
2,400 Molten Metal Technology, Inc.* 17
1,300 Morningstar Group, Inc.* 34
1,700 Osmonics, Inc.* 28
3,300 Outboard Marine Corp. 49
699 Pilgrims Pride Corp. 9
3,300 Regal-Beloit Corp. 88
2,200 Rexel, Inc.* 40
1,348 Robbins & Myers, Inc. 46
2,300 Roper Industries, Inc. 113
2,000 Specialty Equipment Cos., Inc.* 28
200 Spinnaker Industries* 8
1,900 SPX Corp. 113
800 Thermo Power Corp.* 5
2,000 Toro Co. 75
800 Tractor Supply Co.* 16
3,000 Varco International, Inc.* 83
--------
2,835
--------
</TABLE>
See accompanying notes to financial statements.
57
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
MANUFACTURING--GENERAL--1.1%
500 Bacou U.S.A., Inc.* $ 7
3,580 Brady (W.H.) Co. 102
3,150 Cuno, Inc. 52
10,300 Furniture Brands International, Inc.* 161
6,400 Hexcel Corp.* 115
1,400 Hunt Manufacturing Co. 26
1,600 Insilico Corp.* 60
1,000 Jabil Circuit, Inc.* 59
6,700 Kemet Corp.* 170
1,300 Matthews International Corp., Class A 45
2,700 Novellus Systems, Inc.* 221
1,700 Optical Coating Laboratory, Inc. 18
2,000 Samsonite Corp.* 90
2,100 Seattle Filmworks, Inc.* 25
700 Simpson Manufacturing Co.* 18
850 Simula, Inc.* 15
3,000 Toy Biz, Inc.* 27
3,500 Tracor, Inc.* 89
800 Tremont Corp.* 33
700 Trigen Energy Corp. 17
2,000 U.S. Can Corp.* 33
700 Visioneer, Inc.* 2
2,400 Wireless Telecom Group, Inc. 26
--------
1,411
--------
MERCHANDISE--GENERAL--0.5%
1,200 Action Performance Companies, Inc.* 29
4,200 Amerisource Corp.* 179
3,600 Cross (A.T.) Co. 70
3,500 Department 56, Inc.* 74
5,600 Jostens, Inc. 138
2,500 Libbey, Inc. 83
6,200 Playtex Products, Inc.* 60
1,900 Strategic Distribution, Inc.* 7
--------
640
--------
METAL MINING--0.6%
39,100 Battle Mountain Gold Co. 239
1,700 Cleveland Cliffs, Inc. 72
3,600 Coeur D'Alene Mines Corp. 49
4,200 Freeport-McMoran Copper and Gold, Inc. 119
4,417 Getchell Gold Corp.* 176
8,400 Hecla Mining Co.* 48
2,600 Stillwater Mining Co. 60
39,600 Sunshine Mining Co.* 32
--------
795
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
METAL PRODUCTS--1.0%
1,400 Alltrista Corp.* $ 34
8,200 Amax Gold, Inc.* 54
800 American Buildings Co.* 23
2,000 Applied Industrial Tech, Inc. 70
3,100 Aptargroup, Inc. 138
1,800 Barnes Group, Inc. 48
1,050 Butler Manufacturing Co. 38
1,600 Chase Brass Industries, Inc.* 36
1,200 Citation Corp.* 18
2,700 Clarcor, Inc. 63
1,600 Commonwealth Industrial, Inc. 30
1,000 Greenbriar Cos., Inc. 11
1,100 Hardinge, Inc. 29
2,700 Material Sciences Corp.* 38
2,800 Miller Industries, Inc.* 46
1,500 NN Ball & Roller, Inc. 17
1,300 Oregon Metallurgical Corp.* 34
1,400 Penn Engineering & Manufacturing Corp. 32
2,000 Quanex Corp. 55
1,064 SPS Technologies, Inc.* 78
2,600 TriMas Corp. 74
3,100 Watts Industries, Inc., Class A 77
1,800 Whittaker Corp.* 20
2,300 Wolverine Tube, Inc.* 68
3,300 Wyman-Gordon Co.* 75
2,600 Zero Corp. 60
--------
1,266
--------
MINING, QUARRYING OF NONMETALLIC MINERAL--0.2%
1,300 Cliff's Drilling Co.* 91
2,300 Dravo Corp.* 25
1,900 RMI Titanium Corp.* 44
2,600 Solv-Ex Corp.* 17
2,600 Zeigler Coal Holding Co. 60
--------
237
--------
MISCELLANEOUS INVESTING INSTITUTIONS--3.2%
5,424 BRE Properties, Inc. 134
3,000 Burnham Pacific Properties, Inc. 40
400 Capital Southwest Corp. 29
5,975 Capstead Mortgage Corp. 143
9,104 Champion Enterprises, Inc.* 167
1,699 Chemical Financial Corp. 61
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
1,400 Corus Bankshares, Inc. $ 36
10,600 Crescent Real Estate Equities, Inc.* 289
8,300 CWM Mortgage Holdings, Inc. 173
5,300 Dauphin Deposit Corp. 234
6,500 Deposit Guaranty Corp. 204
7,000 Franchise Finance Corp. 169
9,400 Geotek Communications, Inc.* 42
3,108 Horizon Group, Inc. 40
3,900 Hospital Properties Trust 124
4,500 IRT Property Co. 52
1,000 John Nuveen and Company, Inc. 30
4,600 Kimco Realty Corp. 145
3,200 Koger Equity, Inc.* 53
3,200 LTC Properties, Inc. 57
1,873 MAF Bancorp, Inc. 78
1,900 Meridian Industrial Trust, Inc. 44
6,300 Merry Land & Investment Co., Inc. 132
2,000 MGI Properties, Inc. 42
6,800 Mid Atlantic Medical Services, Inc.* 88
7,100 Nationwide Health Properties, Inc. 153
3,500 Noel Group, Inc.* 12
7,200 Patriot American Hospitality, Inc. 156
1,000 PEC Israel Economic Corp.* 23
1,504 Peoples First Corp. 40
10,800 Public Storage, Inc. 288
3,700 Realty Income Corp. 95
3,200 Reckson Associates Realty Corp. 72
1,500 Redwood Trust, Inc. 86
1,800 Seacor Holdings, Inc.* 93
1,200 Sirrom Capital Corp. 47
1,700 Smith, (Charles E.) Residential Realty, Inc. 47
1,800 Trans Financial Bancorp, Inc. 45
1,000 Union Acceptance Corp.* 9
4,000 Weingarten Realty Investors 172
--------
3,944
--------
NATURAL GAS TRANSMISSION--1.8%
2,550 Atmos Energy Corp. 59
2,200 Bay State Gas Co. 59
1,500 Colonial Gas Co. 31
1,600 Connecticut Energy Corp. 36
1,700 CTG Resources, Inc. 37
3,500 Eastern Enterprises 121
1,700 Energen Corp. 56
3,200 Indiana Energy, Inc. 76
12,300 Kelley Oil and Gas Corp.* 30
3,551 KN Energy, Inc. 150
2,800 Laclede Gas Co. 61
3,100 New Jersey Resources Corp. 96
1,100 North Carolina Natural Gas Corp. 34
3,600 Northwest Natural Gas Co. 88
1,700 NUI Corp. 37
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
4,000 Oneok, Inc. $ 121
5,076 Piedmont Natural Gas Co. 124
4,300 Primark Corp.* 102
3,150 Public Service Co. of North Carolina, Inc. 59
1,320 South Jersey Industries, Inc. 30
1,419 Southern Union Co.* 34
4,300 Southwest Gas Corp. 74
4,000 Southwestern Energy Co. 53
2,357 Tejas Gas Corp.* 110
1,700 TransTexas Gas Corp.* 28
5,700 UGI Corp. 128
2,100 United Cities Gas Co. 48
7,500 Washington Gas Light Co. 185
3,000 Wicor, Inc. 110
--------
2,177
--------
OIL AND GAS--3.2%
9,500 AGL Resources, Inc. 182
900 Aquila Gas Pipeline Corp. 13
900 Atwood Oceanics, Inc.* 60
5,140 Barrett Resources Corp.* 172
1,000 Belco Oil & Gas Corp.* 23
1,800 Belden & Blake Corp.* 48
4,900 Benton Oil & Gas Co.* 76
3,400 Berry Petroleum Co. 51
6,543 BJ Services Co.* 362
3,200 Box Energy Corp.* 24
2,900 Brown (Tom), Inc.* 52
3,400 Cabot Oil & Gas Corp. 63
2,600 Cairn Energy USA, Inc.* 31
3,100 Calmat Co. 62
2,000 Capsure Holdings Corp.* 25
2,200 Cross Timbers Oil Co. 24
2,400 Destec Energy, Inc.* 51
3,300 Devon Energy Corp. 123
4,800 Energy Ventures, Inc.* 181
2,200 Falcon Drilling Co., Inc.* 101
1,900 Flores & Rucks, Inc.* 93
1,600 Forcenergy, Inc.* 56
3,800 Forest Oil Corp.* 53
1,200 Giant Industries, Inc. 17
13,300 Harken Energy Corp.* 63
4,200 Helmerich & Payne, Inc. 236
499 Hondo Oil & Gas Co.* 5
2,100 Hugoton Energy Corp.* 23
1,700 KCS Energy, Inc. 71
1,800 KFX, Inc.* 7
11,800 Mesa, Inc.* 65
6,100 Mitchell Energy & Development Corp. 135
2,100 Nuevo Energy Co.* 92
3,900 Oceaneering International, Inc.* 66
6,100 Parker & Parsley Petroleum Co. 207
9,100 Parker Drilling Co.* 88
2,900 Plains Resources, Inc.* 41
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
OIL AND GAS--Continued
<C> <S> <C>
2,800 Pool Energy Services Co.* $ 47
4,900 Pride Petroleum Services, Inc.* 109
1,400 Production Operators Corp. 94
10,436 Seagull Energy Corp.* 188
2,293 Semco Energy, Inc. 41
4,500 Snyder Oil Corp. 82
2,400 Swift Energy Co.* 64
7,300 Tuboscope Vetco International Corp.* 119
1,800 Vintage Petroleum, Inc. 61
2,600 Western Gas Resources, Inc. 51
--------
3,898
--------
ORDNANCE AND ACCESSORIES--0.1%
1,500 Alliant Techsystems, Inc.* 72
3,200 Sturm Ruger & Co., Inc. 60
--------
132
--------
OTHER SERVICES--0.8%
4,800 Aeroequip-Vickers Inc 208
800 Central Parking Corp. 25
400 CKS Group, Inc.* 12
1,600 Integrated Packaging Assembly Corp.* 6
2,200 McGrath Rentcorp 41
8,500 Ogden Corp. 166
1,400 Pixar, Inc.* 21
1,100 Quick Response Services, Inc.* 42
3,500 Rollins, Inc. 68
24 Score Board, Inc. 0
1,800 Sovran Self Storage, Inc. 52
700 Summit Care Corp.* 8
750 Thermo Ecotek Corp.* 12
250 Thermo Remediation, Inc. 2
6,800 United Waste Systems, Inc.* 261
900 Wackenhut Corrections Corp.* 18
6,600 Walter Industries, Inc.* 94
--------
1,036
--------
PAPER PRODUCTS--0.6%
3,600 Chesapeake Corp. 121
8,700 Gaylord Container Corp.* 71
3,100 Greif Bros. Corp. 87
2,479 Mosinee Paper Corp. 67
3,946 Paxar Corp.* 76
5,570 Rock-Tenn Co. 84
2,600 Schweitzer-Mauduit International, Inc. 89
2,500 Shorewood Packaging Corp.* 51
2,100 Universal Forest Products, Inc. 29
4,600 Wausau Paper Mills Co. 86
--------
761
--------
PERSONAL SERVICES--0.8%
1,600 Angelica Corp. 29
2,800 Bristol Hotel Co.* 103
3,200 Catalina Marketing Corp.* 118
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
2,400 CPI Corp. $ 45
1,300 Craig (Jenny), Inc.* 8
1,500 Equity Corp. International 36
3,250 G & K Services, Inc. 106
4,200 Glatfelter (P.H) Co. 74
5,033 HFS, Inc. 271
1,973 Marcus Corp. 48
1,700 Red Roof Inns, Inc.* 28
3,300 Unifirst Corp. 65
--------
931
--------
PETROLEUM PRODUCTS--0.9%
4,200 Camco International, Inc. 215
1,200 Crown Central Petroleum Corp.* 16
1,500 Elcor Corp. 42
2,500 Lomak Petroleum, Inc. 44
1,300 Louis Dreyfus Natural Gas Corp.* 21
6,200 Newfield Exploration, Inc.* 133
2,490 Newpark Resources, Inc.* 131
5,900 Quaker Chemical Corp. 89
2,000 Royal Gold, Inc.* 18
1,100 RPC, Inc.* 15
1,700 Seitel, Inc.* 63
1,500 Stone Energy Corp.* 42
4,400 Tesoro Petroleum Corp.* 58
5,510 United Meridian Corp.* 198
--------
1,085
--------
PRINTING AND PUBLISHING--1.5%
1,800 American Business Information, Inc.* 37
1,950 American Business Products, Inc. 48
7,300 American Media, Inc., Class A 44
2,600 Big Flower Press Holdings, Inc.* 56
2,900 Bowne & Co., Inc. 87
1,200 CSS Industries, Inc.* 36
1,100 Devon Group, Inc.* 34
1,290 DH Technology, Inc.* 21
2,900 Ennis Business Forms, Inc. 29
2,700 Express Scripts, Inc.* 123
1,400 Franklin Electronic Publishers, Inc.* 14
2,800 Gibson Greetings, Inc.* 61
3,200 Golden Books Family Entertainment, Inc.* 36
5,100 Harland (John H.) Co. 117
2,757 Harte-Hanks Communications, Inc. 82
4,100 Hollinger International, Inc. 46
2,400 Houghton Mifflin Co. 142
6,475 McClatchy Newspapers, Inc., Class A 180
954 Merrill Corp. 31
2,250 Nelson (Thomas), Inc. 23
2,100 New England Business Service, Inc. 61
3,300 Playboy Enterprises, Inc.* 39
966 Pulitzer Publishing Co. 47
2,000 Scholastic Corp.* 60
2,100 Standard Register Co. 73
400 Steck-Vaughn Publishing Corp.* 5
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
7,300 Topps, Inc.* $ 28
3,500 Valassis Communications, Inc.* 97
500 Waverly, Inc.* 11
2,100 Wiley (John) & Sons, Inc. 67
6,000 World Color Press, Inc.* 158
--------
1,893
--------
PROFESSIONAL SERVICES--7.5%
2,520 ABM Industries, Inc. 49
3,400 ADR Information Services, Inc.* 109
5,300 Acclaim Entertainment, Inc.* 22
2,000 Activision, Inc.* 26
7,800 Acxiom Corp.* 133
600 Advent Software, Inc.* 18
3,725 Advo, Inc. 52
4,200 Affiliated Computer Services, Inc.* 111
5,800 Allwaste, Inc.* 50
2,200 Alternative Resources Corp.* 41
3,100 AMERCO* 85
7,700 American Oncology Resources, Inc.* 109
2,474 Analysts International Corp. 90
1,900 Arbor Software Corp.* 57
3,500 Aspen Technologies, Inc.* 134
600 Astea International, Inc.* 2
5,300 Banta Corp. 147
900 Barra, Inc.* 27
3,400 BBN Corp.* 98
4,800 BDM International* 125
3,000 BE Aerospace, Inc.* 73
2,300 Bell & Howell Co.* 62
2,400 Billing Information Concepts* 70
4,300 Bisys Group, Inc.* 164
2,884 Boole & Babbage, Inc.* 60
900 BRC Holdings, Inc.* 34
2,800 Broderbund Software, Inc.* 70
3,900 BWIP Holding, Inc. 75
1,700 Casino Data Systems* 7
1,700 CDI Corp.* 69
1,400 Ciber, Inc.* 58
4,100 Citrix Systems, Inc.* 154
1,700 Clarify, Inc.* 21
1,500 ClinTrials Research, Inc.* 15
1,200 CMG Information Services, Inc.* 21
700 COMFORCE Corp.* 4
2,400 Computer Horizons Corp.* 134
600 Computer Language Research, Inc. 7
1,500 Computer Task Group, Inc. 92
10,600 Computervision Corp.* 52
1,700 Comshare, Inc.* 23
2,100 COREStaff, Inc.* 50
500 CRA Managed Care, Inc.* 23
500 CSG Systems International, Inc.* 12
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
700 Datastream Systems, Inc.* $ 14
1,300 DecisionOne Corp.* 28
1,500 Dendrite International, Inc.* 19
1,600 Documentum, Inc.* 31
1,100 Elcom International, Inc.* 6
1,284 Electro Rent Corp.* 30
1,100 EmCare Holdings, Inc. 33
3,200 Employee Solutions, Inc.* 17
700 Enterprise Systems, Inc.* 20
600 Excite, Inc.* 7
1,300 Fair Isaac & Co. 51
2,900 Franklin Quest Co.* 70
2,300 General Magic, Inc.* 4
1,700 Geoworks* 11
3,000 Gerber Scientific, Inc. 57
4,300 Global Industries Ltd.* 95
200 Grey Advertising, Inc. 58
1,400 HA-LO Industries, Inc.* 33
2,850 Harbinger Corp.* 88
400 HCIA, Inc.* 10
1,950 Henry (Jack) & Associates, Inc. 44
1,600 HNC Software, Inc.* 21
978 Holly Corp. 24
2,300 HPR, Inc.* 37
3,200 HNC Software, Inc. 106
800 IDT Corp.* 6
1,400 IKOS Systems, Inc.* 35
3,300 Imclone Systems 20
1,600 Inacom Corp.* 52
400 Individual, Inc.* 2
600 Indus Group, Inc.* 11
1,300 Inference Corp.* 6
1,600 Infocus Systems* 42
1,300 Inso Corp.* 37
500 Integrated Measurement Systems, Inc.* 8
2,500 Integrated Systems Consulting Group, Inc.* 36
3,500 InteliData Technologies Corp.* 18
400 IntelliQuest Information Group, Inc.* 8
2,600 Interim Services, Inc.* 101
1,200 International Imaging Materials, Inc.* 21
3,400 Intersolv, Inc.* 34
500 Intevac, Inc.* 8
800 Iron Mountain, Inc.* 22
750 ITT Educational Services, Inc.* 17
500 JDA Software Group, Inc.* 14
2,400 Katz Media Group* 13
5,750 Keane, Inc.* 324
2,100 Landstar Systems, Inc.* 56
1,200 Learning Tree International, Inc.* 47
3,100 Legato Systems, Inc.* 62
1,200 Logic Works, Inc.* 8
1,200 Manugistics Group, Inc.* 78
1,100 Maxis, Inc.* 12
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
PROFESSIONAL SERVICES--Continued
<C> <S> <C>
1,200 May & Speh, Inc.* $ 14
4,650 MDU Resources Group, Inc. 113
1,500 MetaTools, Inc.* 18
2,000 Metricom, Inc.* 16
1,000 Microware Systems Corp.* 8
4,400 National Data Corp. 193
3,200 National Health Investors, Inc. 121
1,400 National Instruments Corp.* 46
1,900 NETCOM On-Line Communication Services, Inc.* 27
2,800 Network Data Processing Corp. 114
3,500 Network Equipment Technologies, Inc.* 60
1,700 Network Peripherals, Inc.* 16
1,200 NHP, Inc.* 26
1,550 Nichols Research Corp.* 30
2,400 Nimbus CD International, Inc.* 27
2,300 Norrell Corp. 74
1,900 Novadigm, Inc.* 10
5,900 Oak Technology, Inc.* 55
800 On Assignment, Inc.* 31
2,500 Orthodontic Centers of America, Inc.* 42
1,900 Personnel Group of America, Inc.* 58
1,200 PhyMatrix Corp.* 17
3,600 Physician Resource Group, Inc.* 42
3,200 Physician Computer Network, Inc.* 18
1,000 Pinkertons, Inc.* 29
5,050 Players International, Inc.* 20
2,500 Policy Management Systems Corp.* 119
3,700 Pre-Paid Legal Services, Inc.* 75
2,800 Precision Systems, Inc.* 10
1,000 Premenos Technology Corp.* 7
1,100 Premiere Technologies, Inc.* 30
800 Prism Solutions, Inc.* 6
800 Profit (The) Recovery Group International, Inc.* 10
1,900 Progress Software Corp.* 33
1,000 Project Software & Development, Inc.* 19
1,800 Protein Design Labs, Inc.* 57
4,200 PSINET, Inc.* 32
4,162 Pure Atria Corp.* 67
5,500 Quarterdeck Corp.* 15
1,000 Rainbow Technologies, Inc.* 16
500 Raptor Systems, Inc.* 7
2,100 Red Brick Systems, Inc.* 19
1,800 Remedy Corp.* 73
4,800 Renaissance Solutions, Inc.* 138
6,100 RISCORP, Inc.* 22
6,200 Rollins Truck Leasing Corp. 85
1,000 Romac International, Inc.* 29
1,900 RTW, Inc.* 16
2,300 7th Level, Inc.* 4
300 Sapient Corp.* 13
2,250 Scopus Technologies, Inc.* 68
2,400 Secure Computing Corp.* 17
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
500 Segue Software, Inc.* $ 5
3,500 Sitel Corp.* 58
600 Smith Micro Software, Inc.* 2
7,500 Sotheby's Holdings, Inc., Class A 116
4,600 Spectrum Holobyte, Inc. 29
1,000 SPSS, Inc.* 32
2,000 Spyglass, Inc.* 19
3,600 Stac, Inc.* 15
1,600 State of the Art, Inc.* 18
6,000 Structural Dynamics Research Corp.* 147
1,100 Summit Medical Systems* 3
3,800 SunRiver Corp.* 4
2,600 Sync Research, Inc.* 11
4,750 System Software Associates, Inc. 44
2,400 Systems & Computer Technology Corp.* 58
2,900 Systemsoft Corp.* 35
6,400 TCSI Corp.* 190
2,800 Telxon Corp. 52
565 Thermo TerraTech, Inc.* 6
1,650 Thermotrex Corp.* 48
4,600 Transaction Systems Architects, Inc.* 193
3,100 Transcend Services, Inc.* 12
750 Unison Software, Inc.* 6
2,600 Vanstar Corp.* 26
1,500 Vantive Corp. 40
2,600 Veritas DGC, Inc.* 54
1,650 Veritas Software Corp.* 82
1,400 Verity, Inc.* 9
2,900 Viasoft, Inc.* 154
2,100 VideoServer, Inc.* 36
2,800 Viewlogic Systems, Inc.* 42
1,300 Visio Corp.* 75
1,800 VISX Corp.* 53
1,200 Volt Information Sciences, Inc.* 52
1,897 Wackenhut Corp. 33
2,425 Wind River Systems* 82
600 Workgroup Technology Corp.* 3
2,800 Xircom, Inc.* 41
400 Yahoo!, Inc.* 13
800 Zoran Corp.* 17
--------
8,974
--------
REAL ESTATE--5.7%
3,400 American Health Properties, Inc. 85
975 American Homestar Corp.* 20
1,500 AMLI Residential Properties 35
2,300 Apartment Investment & Management Co. 64
1,800 Associated Estates Realty Corp. 41
5,000 Avalon Properties, Inc. 138
1,200 Avatar Holdings, Inc.* 39
3,100 Bay Apartment Communities, Inc. 109
6,700 Beacon Properties Corp. 208
4,100 Berkshire Realty, Inc. 44
3,503 Bradley Real Estate, Inc. 66
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
4,400 Cali Realty Corp. $ 130
4,364 Camden Property Trust 128
5,700 Carr Realty Corp. 162
2,700 Castle & Cooke, Inc.* 41
2,000 Cavalier Homes, Inc. 23
3,400 CBL & Associates Properties, Inc. 81
2,300 Centerpoint Properties Corp. 69
2,000 Chelsea GCA Realty, Inc. 73
4,400 Colonial Properties Trust* 129
1,900 Columbus Realty Trust 42
3,500 Commercial Net Lease Realty, Inc. 53
4,000 Cousins Properties, Inc. 107
4,200 Crown American Realty Trust 34
3,100 Developers Diversified Realty Corp. 115
6,833 Doubletree Corp.* 306
5,000 Duke Realty Investments, Inc. 191
7,000 Dynex Capital, Inc. 96
3,900 Equity Inns, Inc. 51
3,000 Evans Withycombe Residential, Inc. 62
2,400 Excel Realty Trust, Inc. 62
5,900 Federal Realty Investment Trust 154
4,000 FelCor Suite Hotel, Inc. 149
4,100 First Industrial Realty Trust, Inc. 121
900 Forest City Enterprises, Inc. 40
3,300 Gables Residential Trust 83
4,600 General Growth Properties, Inc. 148
1,162 Getty Realty Corp. 19
3,600 Glimcher Realty Trust 72
4,900 Health Care Property Investors, Inc. 165
2,400 Health Care REIT, Inc. 58
2,000 Healthcare Realty Trust 52
5,600 Highwoods Properties, Inc. 169
3,000 Irvine Apartment Communities, Inc. 84
1,800 JDN Realty Co. 52
2,100 JP Realty, Inc. 54
4,900 Liberty Property Trust 118
3,600 Macerich Co. 97
4,000 Manufactured Home Communities, Inc. 88
900 Maxxam, Inc.* 40
1,800 Mid-America Apartment Communities, Inc. 48
2,600 Mills Corp. 66
1,900 National Golf Properties, Inc. 62
2,500 Oasis Residential, Inc. 58
1,800 Paragon Group, Inc. 29
1,300 Pennsylvania REIT 29
3,700 Post Properties, Inc. 147
2,200 PRI Automation, Inc.* 84
2,500 Price Enterprises, Inc.* 46
1,400 Price REIT, Inc. 53
1,700 Regency Realty Corp.* 45
4,000 RFS Hotel Investors, Inc. 75
1,700 Saul Centers, Inc. 28
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
4,000 Shurguard Storage Centers, Inc. $ 112
5,200 Spieker Properties, Inc. 192
2,000 Storage Trust Realty 50
4,200 Storage USA, Inc. 160
2,900 Summit Property, Inc. 58
2,500 Sun Communities, Inc. 82
4,100 Taubman Centers, Inc. 31
2,700 Thornburg Mortgage Asset Corp. 54
2,700 Town & Country Trust 40
2,000 Trinet Corporate Realty Trust 66
13,485 United Dominion Realty Trust 199
2,200 Urban Shopping Centers, Inc. 64
4,200 Vornado Realty Trust 288
1,900 Walden Residential Properties, Inc. 45
5,200 Washington Real Estate Investment Trust 88
2,100 Weeks Corp. 66
2,800 Wellsford Residential Property Trust 91
3,000 Western Investment Real Estate Trust 41
--------
7,064
--------
RECREATIONAL AND LEISURE SERVICES--1.1%
500 AMC Entertainment, Inc.* 12
500 Ameristar Casinos, Inc.* 3
1,100 Anchor Gaming* 47
2,500 Argosy Gaming Corp.* 8
1,000 Ascent Entertainment Group, Inc. 10
737 Autotote Corp. Class A 1
3,200 Authentic Fitness Corp. 47
7,300 Aztar Corp.* 51
200 Bally's Grand, Inc.* 8
4,200 Boyd Gaming Corp.* 25
1,700 Carmike Cinemas, Inc.* 59
3,750 Casino America, Inc.* 9
4,300 Casino Magic Corp.* 6
3,000 Galoob (Lewis) Toys, Inc.* 54
1,000 GC Cos., Inc.* 43
1,000 Harvey's Casino Resorts 17
2,600 Hollywood Park, Inc. 36
2,317 K2, Inc. 67
2,900 Lydall, Inc.* 66
800 Movie Gallery, Inc.* 6
1,000 Penn National Gaming, Inc.* 18
1,400 Primadonna Resorts, Inc.* 31
5,100 Prime Hospitality Corp.* 95
700 Quintel Entertainment, Inc.* 7
4,662 Regal Cinemas, Inc.* 153
2,900 Rio Hotel & Casino, Inc.* 42
2,100 Scientific Games Holdings Corp.* 51
2,600 Showboat, Inc. 51
1,950 Shuffle Master, Inc.* 16
1,600 Skyline Corp. 39
1,500 Sodak Gaming, Inc.* 22
2,300 Spelling Entertainment Group, Inc.* 16
3,200 Station Casinos, Inc.* 28
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
RECREATIONAL AND LEISURE SERVICES--Continued
<C> <S> <C>
1,700 Stratosphere Corp.* $ 1
3,900 Trump Hotels and Casino Resorts, Inc.* 38
750 WHG Resorts & Casinos, Inc. 8
800 White River Corp.* 51
3,000 WMS Industries, Inc.* 62
--------
1,304
--------
RESEARCH AND CONSULTING SERVICES--1.4%
6,100 Advance Tissue Science, Inc.* 79
2,300 Agouron Pharmaceuticals, Inc.* 184
3,200 Air & Water Technologies Corp.* 15
2,800 Alliance Entertainment Corp.* 2
10,800 Aura Systems, Inc.* 20
8,000 Bio-Technology General Corp.* 116
4,600 Columbia Laboratories, Inc.* 90
675 Computer Management Sciences, Inc.* 14
7,900 Cytogen Corp.* 44
2,800 Dames & Moore, Inc. 33
4,600 Data Broadcasting Corp.* 22
500 Data Processing Resources Corp.* 11
700 Eagle River Interactive, Inc.* 7
1,600 GRC International, Inc.* 8
3,500 Jacobs Engineering Group, Inc.* 94
5,500 Liposome Technology, Inc.* 140
2,100 Mercer International, Inc.* 24
3,000 Mycogen Corp.* 71
1,900 NeoPath, Inc.* 38
1,500 NFO Research, Inc.* 30
3,400 OHM Corp.* 27
2,600 Organogenesis, Inc.* 49
3,200 Parexel International Corp.* 105
2,345 Pharmaceutical Product Development, Inc.* 45
6,000 Scios-Nova, Inc.* 38
1,800 Spacelabs Medical, Inc.* 40
1,300 Stone & Webster, Inc. 56
5,050 Summit Technology, Inc.* 39
9,400 Symantec Corp.* 179
2,800 Technology Solutions Co.* 102
3,500 U.S. Bioscience, Inc.* 37
--------
1,759
--------
RETAIL--4.7%
2,500 Aaron Rents, Inc. 31
670 Alexander's, Inc.* 44
700 American Eagle Outfitters, Inc.* 8
5,200 Americredit Corp.* 98
4,300 AnnTaylor Stores, Inc.* 100
4,112 Apple South, Inc. 62
4,400 Arbor Drugs, Inc. 86
5,200 Best Buy, Inc.* 71
1,400 Blair Corp. 23
6,500 Bombay Company, Inc.* 29
1,800 Books-a-Million, Inc.* 9
600 Buckle, Inc.* 13
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
7,540 Buffets, Inc.* $ 67
2,800 Burlington Coat Factory Warehouse* 50
2,700 Carson Pirie Scott & Co.* 87
5,000 Cash America International, Inc. 49
4,100 Cato Corp. 21
15,600 Charming Shoppes, Inc.* 82
5,700 CKE Restaurants, Inc. 136
8,050 Claire's Stores, Inc. 155
8,600 CML Group, Inc. 20
1,900 Cole National Corp.* 72
2,123 Consolidated Products, Inc.* 36
268 Dart Group Corp. 27
983 Delchamps, Inc. 27
2,800 Dress Barn, Inc.* 48
3,200 Duty Free International, Inc. 50
2,500 Fabri-Centers of America, Inc., Class A* 59
7,100 Family Dollar Stores, Inc. 183
7,000 Fedders Corp. 45
8,300 Fingerhut Cos., Inc. 146
6,400 Foodmaker, Inc.* 90
2,300 Friedmans, Inc., Class A* 43
2,800 Garden Ridge Corp.* 34
4,400 Gymboree Corp.* 110
3,700 Hancock Fabrics, Inc. 45
10,200 HEARx Ltd.* 18
5,300 Hechinger Co. 7
3,500 Hollywood Entertainment Corp.* 70
1,200 Ingles Markets, Inc. 17
3,400 Jumbosports, Inc.* 15
3,050 Just For Feet, Inc.* 60
1,100 L.L. Knickerbocker Co.* 6
2,500 Lands' End, Inc. 75
4,400 Longs Drug Stores, Inc. 105
4,400 Mac Frugal's Bargains Close-Outs, Inc.* 131
700 Mafco Consolidated Group* 23
1,300 Mail Boxes Etc.* 30
2,075 Men's (The) Warehouse, Inc.* 69
4,500 Meyer (Fred), Inc.* 206
3,200 Michael's Stores, Inc.* 63
2,800 National Media Corp.* 21
2,623 Natures Sunshine Products, Inc. 44
2,900 NPC International, Inc.* 34
800 O'Reilly Automotive, Inc.* 29
6,900 Payless Cashways, Inc.* 11
2,550 Petco Animal Supplies, Inc.* 68
4,400 Petroleum Heat & Power, Inc. 16
7,735 Pier I Imports, Inc. 173
2,900 Proffitt's, Inc.* 116
1,500 Quality Food Centers, Inc.* 57
1,900 Regis Corp.* 41
2,400 Renters Choice, Inc.* 46
8,300 Ross Stores, Inc. 233
16,500 Service Merchandise Co., Inc.* 54
3,000 Shopko Stores, Inc. 71
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
2,750 Showbiz Pizza Time, Inc.* $ 62
3,098 Smith Food & Drug Centers, Inc., Class B 146
2,200 Sonic Corp.* 39
5,300 Sports Authority, Inc.* 95
2,900 Stanhome, Inc. 91
1,550 Stein Mart, Inc.* 47
1,220 Strawbridge & Clothier, Class A 20
8,200 Stride Rite Corp. 125
6,300 U.S. Office Products Co.* 156
6,000 Universal Corp. 218
1,500 Urban Outfitters, Inc.* 24
1,500 Valmont Industries, Inc. 63
1,700 Value City Department Stores, Inc.* 15
5,300 Waban, Inc.* 161
1,300 West Marine, Inc.* 34
900 Wet Seal, Inc.* 26
3,100 Whole Foods Market, Inc.* 97
3,300 Williams-Sonoma, Inc.* 122
1,400 Wilmar Industries, Inc.* 31
5,600 Zale Corp.* 113
--------
5,850
--------
RUBBER AND PLASTICS--0.6%
2,200 ACX Technologies, Inc.* 47
4,700 Carlisle Cos., Inc. 143
2,500 Foamex International, Inc.* 38
1,500 Furon Co. 38
800 Liqui-Box Corp. 27
2,195 Myers Industries, Inc.* 38
2,200 O'Sullivan Corp. 20
1,300 Park Ohio Industries, Inc.* 17
1,200 Rogers Corp.* 40
4,200 Sola International, Inc.* 120
2,700 Spartech Corp. 34
1,300 Tredegar Industries, Inc. 71
2,200 West Co., Inc. 65
--------
698
--------
SANITARY SERVICES--0.3%
10,100 Allied Waste Industries, Inc.* 149
2,800 Centennial Cellular Corp.* 39
10,500 Laidlaw Environment Services, Inc.* 30
10,000 Safety-Kleen Corp. 156
600 Superior Services, Inc.* 13
--------
387
--------
SERVICE INDUSTRY MACHINERY--0.5%
2,200 Applied Power, Inc. 97
2,450 Commercial Intertech Corp. 32
1,100 Greenwich Air Services, Inc. 32
1,700 Scotsman Industries, Inc. 45
1,550 St. Jude Medical, Inc. 53
1,500 Tennant Co. 45
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
8,975 United States Filter Corp.* $ 283
2,362 Wynn's International, Inc. 58
--------
645
--------
SOCIAL SERVICES--0.3%
547 Berlitz International, Inc.* 13
4,300 DeVry, Inc.* 119
6,000 National Education Corp.* 126
3,018 Omega Healthcare Investors, Inc. 99
1,100 Youth Services International, Inc.* 15
--------
372
--------
STEEL PRODUCTS--1.3%
2,000 Acme Metals, Inc.* 31
1,500 Amcast Industrial Corp. 37
14,200 Armco, Inc.* 53
4,700 Birmingham Steel Corp. 75
2,800 Brush Wellman, Inc. 60
2,700 Carpenter Technology Corp. 117
1,000 Chaparral Steel Co. 15
1,100 Coastcast Corp.* 14
400 Curtiss Wright Corp. 23
2,200 Geneva Steel Co.* 5
500 Gibraltar Steel Corp.* 11
2,400 Handy & Harman 40
1,000 Huntco, Inc., Class A 13
1,800 IMCO Recycling, Inc. 32
3,100 Intermet Corp.* 43
3,100 J & L Specialty Steel, Inc. 40
1,700 Kaiser Aluminum Corp.* 20
3,300 Lone Star Technologies, Inc. 78
2,600 Lukens, Inc. 51
3,300 Mueller Industries, Inc.* 132
3,700 National Steel Corp., Class B* 50
3,700 Oregon Steel Mills, Inc. 69
3,750 Precision Castparts Corp. 234
1,300 Reliance Steel & Aluminum Co. 47
1,500 Rouge Steel Co. 22
700 Schnitzer Steel Industries, Inc. 18
900 Shiloh Industries, Inc.* 15
1,900 Standex International Corp. 52
1,250 Steel Technologies, Inc. 13
3,900 Texas Industries, Inc. 94
4,000 UNR Industries, Inc. 25
4,000 WHX Corp.* 27
--------
1,556
--------
TEXTILES--0.7%
4,200 Albany International Corp. 96
10,800 Burlington Industries, Inc.* 119
3,400 Cone Mills Corp.* 29
800 Fab Industries, Inc. 25
1,582 Fieldcrest Cannon, Inc.* 30
4,496 Guilford Mills, Inc. 88
3,400 Interface, Inc. 79
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1997
(All amounts in thousands, except shares and number of contracts)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
TEXTILES--Continued
<C> <S> <C>
4,100 Phillips-Van Heusen $ 57
1,200 Quiksilver, Inc.* 33
4,400 Ruddick Corp. 67
2,400 Springs Industries, Inc. 122
2,800 West Point Stevens, Inc.* 106
--------
851
--------
TRANSPORTATION PARTS AND EQUIPMENT--2.5%
2,800 AAR Corp. 87
1,400 ABC Rail Products Corp.* 23
2,200 APS Holding Corp. 22
3,850 Arctic Cat, Inc. 40
3,700 Arvin Industries, Inc. 103
2,700 Aviall, Inc. 40
2,400 Borg Warner Automotive, Inc. 117
2,200 Breed Technologies, Inc. 43
1,100 Cannondale Corp.* 19
3,100 Chancellor Corp.* 107
2,500 Coachmen Industries, Inc. 43
11,500 Collins & Aikman Corp.* 134
1,300 Copart, Inc.* 20
1,500 Detroit Diesel Corp.* 33
2,400 Eaton Vance Corp. 59
3,000 Exide Corp. 66
2,300 Fairchild Corp.* 38
6,000 Federal-Mogul Corp. 175
4,400 Gencorp, Inc. 93
2,300 Huffy Corp. 30
4,700 Mesa Airlines, Inc.* 24
12,100 Navistar International Corp.* 201
2,700 OEA, Inc. 102
4,600 Orbital Sciences Corp.* 76
2,104 Pacific Scientific Co. 28
4,500 Polaris Industries, Inc. 133
4,400 Rohr, Inc.* 93
1,300 Sequa Corp.* 63
2,800 Simpson Industries, Inc. 29
2,500 Smith (A.O.) Corp. 92
2,325 Standard Products Co. 58
5,400 Stewart & Stevenson Services, Inc. 144
3,400 Superior Industries International, Inc. 87
3,200 Teleflex, Inc. 197
3,200 Thiokol Corp. 230
889 Thor Industries, Inc. 21
2,525 Titan Wheel International, Inc. 39
1,000 Tower Automotive, Inc. 40
3,100 Wabash National Corp. 69
1,500 Walbro Corp. 30
3,200 Westinghouse Air Brake Co. 53
2,500 Winnebago Industries, Inc. 17
--------
3,118
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
TRANSPORTATION SERVICES--2.0%
3,100 Air Express International Corp. $ 113
3,300 Airborne Freight Corp. 126
2,300 Alaska Air Group, Inc.* 57
7,830 America West Airlines, Inc.* 120
3,600 American Freightways, Inc.* 50
3,700 APL Ltd. 112
3,600 Arnold Industries, Inc. 60
3,700 Asa Holdings, Inc. 97
1,800 Circle International Corp., Inc. 50
1,800 Covenant Transportation, Inc., Class A* 27
800 Eagle USA Airfreight, Inc.* 16
4,100 Expeditors International of Washington, Inc. 118
1,822 First Source Corp. 46
600 Florida East Coast Industries, Inc. 65
1,553 Frozen Food Express Industries, Inc. 14
3,500 GATX Corp. 199
7,900 Greyhound Lines, Inc.* 33
2,739 Heartland Express, Inc.* 60
3,700 Hunt (J.B.) Transportation Services, Inc. 56
4,100 Kirby Corp.* 77
400 Knight Transportation, Inc.* 10
1,500 M.S. Carriers, Inc.* 32
1,350 Midwest Express Holdings, Inc.* 43
3,200 Offshore Logistics, Inc.* 58
5,000 OMI Corp.* 48
4,600 Overseas Shipholding Group, Inc. 87
3,200 Pittston Burlington Group 82
1,600 Railtex, Inc.* 30
2,300 Roadway Express, Inc. 44
1,300 Skywest, Inc. 20
1,900 Swift Transportation Co., Inc.* 61
2,900 Trans World Airlines, Inc.* 25
3,850 USFreightways, Corp.* 93
5,800 ValuJet, Inc.* 40
3,450 Werner Enterprises, Inc. 67
1,300 Western Pacific Airlines, Inc.* 7
2,500 Xtra Corp. 107
3,600 Yellow Corp.* 69
--------
2,419
--------
WATER SUPPLY--0.4%
1,200 Aquarion Co. 31
1,063 California Water Service Co. 48
3,100 Culligan Water Technologies, Inc.* 138
1,300 E'Town Corp. 43
1,400 Pennsylvania Enterprises, Inc.* 35
2,700 Philadelphia Suburban Corp. 51
1,360 Southern California Water Co. 32
4,152 United Water Resources, Inc. 75
1,200 Western Water Co.* 17
--------
470
--------
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
WHOLESALE--1.4%
3,385 Arch Communications Group, Inc.* $ 26
1,400 Bindley Western Industries, Inc. 31
1,950 BMC West Corp.* 26
4,300 Caraustar Industries, Inc. 124
4,300 Casey's General Stores, Inc. 86
1,756 Castle (A. M.) & Co. 38
1,966 Commercial Metals Co. 58
3,900 Compucom Systems, Inc.* 28
400 Culbro Corp.* 51
600 Daisytek International Corp.* 19
1,500 Discount Auto Parts, Inc.* 28
2,600 Egghead, Inc.* 12
5,800 Handleman Co. 38
1,400 Hughes Supply, Inc. 54
3,100 Immunex Corp.* 97
2,800 International Multifoods Corp. 79
2,300 JP Foodservice, Inc.* 67
3,200 Kaman Corp. 44
4,100 Kent Electronics Corp.* 133
1,200 Lawson Products, Inc. 30
2,800 Marshall Industries* 102
2,450 Microage, Inc.* 44
1,900 Nash-Finch Co. 38
2,200 Patterson Dental Co.* 76
1,500 Peak (The) Technologies Group* 27
1,700 Russ Berrie & Co., Inc. 35
4,375 Rykoff-Sexton, Inc. 84
2,400 Sciclone Pharmaceuticals, Inc.* 17
1,700 Smart & Final, Inc. 36
2,800 TBC Corp.* 95
2,400 United Stationers, Inc.* 52
3,100 VWR Corp.* 48
--------
1,723
- ---------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $100,699) $120,911
- ---------------------------------------------------------------
RIGHTS--0.0%
76 Alpha 1 Biomedical* $ 0
1,650 Metrocall, Inc.* 0
- ---------------------------------------------------------------
TOTAL RIGHTS (Cost $0) $ 0
- ---------------------------------------------------------------
WARRANTS--0.0%
350 Milicom American Satellite Corp.,
Exp. 06/30/99* $ 0
57 PerSeptive Biosystems, Inc., Exp. 09/11/03* 0
- ---------------------------------------------------------------
TOTAL WARRANTS (Cost $0) $ 0
- ---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ------------------------------------------------------------
<C> <S> <C>
OTHER INVESTMENTS--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 INVESTMENTS (Cost $0) $ 0
- ------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 95 4.845% Due 06/26/97 $ 94
- ------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $94) $ 94
- ------------------------------------------------------------
SHORT-TERM INVESTMENT--1.9%
Bank of Tokyo-Mitsubishi, Grand Cayman
$ 2,346 5.750% Due 6/02/97 $ 2,346
- ------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,346) $ 2,346
- ------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(Cost $103,139) $123,351
- ------------------------------------------------------------
Other assets, less liabilities--0.1% 160
- ------------------------------------------------------------
NET ASSETS--100.0% $123,511
- ------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
OPEN FUTURES CONTRACTS:
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 11 $1,938 Long 06/20/97 $156
- ---------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
67
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1997
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in
securities, at cost $44,912 $ 94,205 $589,870 $ 99,189 $13,947 $111,812 $103,139
- ---------------------------------------------------------------------------------------------------------
Investments in
securities, at value $54,271 $140,676 $857,884 $121,770 $15,114 $122,185 $123,351
Cash and foreign
currencies 143 214 6 150 52 362 3
Receivables:
Dividends and interest 346 227 1,845 107 17 319 99
Fund units sold 4 6 303 149 -- -- 65
Investment securities
sold 600 226 34 111 -- 3,612 --
Foreign tax reclaims -- -- -- -- 5 132 --
Administrator 7 8 24 8 14 9 10
Deferred organization
costs, net 14 8 8 19 14 26 8
Other assets 3 2 139 1 28 3 18
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSETS 55,388 141,367 860,243 122,315 15,244 126,648 123,554
- ---------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 66 -- 29,161 -- -- 269 --
Investment securities
purchased 579 -- 18 -- -- 1,140 --
Accrued expenses:
Advisory fees 23 65 71 81 3 86 20
Administration fees 5 12 71 10 2 16 10
Custodian fees 2 3 12 1 19 15 6
Transfer agent fees 1 1 14 2 -- 1 1
Other liabilities 6 12 46 12 21 14 6
- ---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 682 93 29,393 106 45 1,541 43
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $54,706 $141,274 $830,850 $122,209 $15,199 $125,107 $123,511
- ---------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $44,889 $ 89,591 $546,525 $ 91,713 $13,959 $117,406 $102,052
Accumulated
undistributed net
investment income 51 532 400 89 71 238 574
Accumulated net realized
gains (losses) on
investments, options,
futures and foreign
currency transactions 407 4,680 15,131 7,826 2 (2,924) 517
Net unrealized
appreciation on
investments, options,
futures and foreign
currency transactions 9,359 46,471 268,794 22,581 1,167 10,373 20,368
Net unrealized gains on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- -- -- -- 14 --
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $54,706 $141,274 $830,850 $122,209 $15,199 $125,107 $123,511
- ---------------------------------------------------------------------------------------------------------
Total units outstanding
(no par value),
unlimited units
authorized
Class A 3,934 9,824 41,819 8,046 1,381 11,716 9,306
Class C 409 -- 3,633 518 -- -- --
Class D 23 43 1,062 52 -- 14 19
- ---------------------------------------------------------------------------------------------------------
Net asset value,
offering and redemption
price per unit
Class A $ 12.53 $ 14.32 $ 17.86 $ 14.19 $ 11.01 $ 10.67 $ 13.24
Class C $ 12.52 -- $ 17.85 $ 14.17 -- -- --
Class D $ 12.51 $ 14.19 $ 17.82 $ 14.05 -- $ 10.55 $ 13.24
- ---------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
68
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Period Ended May 31, 1997
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International International Company
Balanced Growth Index Growth Equity Index Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio (a) Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 202 $ 963 $ 7,376 $ 603 $ 70 $1,098 $ 855
Interest 731 40 546 23 13 128 104
- ---------------------------------------------------------------------------------------------------------
TOTAL INCOME 933 1,003 7,922 626 83(b) 1,226(c) 959
- ---------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 209 539 1,162 608 11 648 230
Administration fees 59 137 441 119 17 147 122
Custodian fees 12 14 70 12 23 79 35
Registration fees 11 12 27 12 4 12 12
Amortization of deferred
organization costs 6 7 7 8 1 7 6
Transfer agent fees 5 7 75 9 -- 7 6
Unitholder servicing
fees 5 1 61 6 -- -- --
Professional fees 2 4 16 2 1 4 4
Trustee fees and ex-
penses 1 2 9 1 1 2 2
Other 5 13 42 8 2 6 6
- ---------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 315 736 1,910 785 60 912 423
Less voluntary waivers
of:
Investment advisory
fees (79) (169) (775) (166) (6) (130) (115)
Administration fees (32) (69) (54) (63) (14) (77) (65)
Less: Expenses reimburs-
able by Administrator (38) (44) (142) (42) (28) (19) (64)
- ---------------------------------------------------------------------------------------------------------
Net expenses 166 454 939 514 12 686 179
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 767 549 6,983 112 71 540 780
Net realized gains
(losses) on:
Investment transactions 442 4,727 14,944 9,122 -- (136) 978
Written options trans-
actions -- -- -- 86 -- -- --
Futures transactions -- -- 3,622 -- -- -- 207
Foreign currency trans-
actions -- -- -- -- 2 (28) --
Net change in unrealized
appreciation on
investments, options,
futures and foreign
currency transactions 2,131 10,306 72,963 2,815 1,167 6,150 7,536
Net change in unrealized
losses on translation
of other assets and li-
abilities denominated
in foreign currencies -- -- -- -- -- (1) --
- ---------------------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS RESULTING FROM OP-
ERATIONS $3,340 $15,582 $98,512 $12,135 $1,240 $6,525 $9,501
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations April 1, 1997.
(b) Net of $8 in non-reclaimable foreign withholding taxes.
(c) Net of $151 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
69
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended May 31, 1997 (Unaudited) and the Year Ended November 30,
1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Balanced Diversified
Portfolio Growth Portfolio
----------------- ------------------
1997 1996 1997 1996
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 767 $ 1,366 $ 549 $ 1,372
Net realized gains (losses) on invest-
ments, options, futures and foreign
currency transactions 442 1,834 4,727 14,453
Net change in unrealized appreciation
on investments, options, futures and
foreign currency transactions 2,131 2,874 10,306 10,529
Net change in unrealized losses on
translations of other assets and lia-
bilities denominated in foreign cur-
rencies -- -- -- --
- ------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 3,340 6,074 15,582 26,354
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (682) (1,231) (1,368) (1,750)
Net realized gains (1,132) -- (14,420) (1,919)
- ------------------------------------------------------------------------------
Total distributions to Class A
unitholders (1,814) (1,231) (15,788) (3,669)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS:
Net investment income (79) (132) -- --
Net realized gains (152) -- -- --
- ------------------------------------------------------------------------------
Total distributions to Class C
unitholders (231) (132) -- --
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS:
Net investment income (4) (2) (4) (2)
Net realized gains (6) -- (45) (3)
- ------------------------------------------------------------------------------
Total distributions to Class D
unitholders (10) (2) (49) (5)
- ------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 4,814 11,431 6,216 14,860
Reinvested distributions 1,794 1,076 14,520 3,424
Cost of units redeemed (3,655) (10,419) (21,856) (45,585)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A unit transac-
tions 2,953 2,088 (1,120) (27,301)
- ------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 761 6,132 -- --
Reinvested distributions 231 132 -- --
Cost of units redeemed (1,961) (797) -- --
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C unit transac-
tions (969) 5,467 -- --
- ------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 138 232 135 227
Reinvested distributions 9 2 49 5
Cost of units redeemed (96) (9) (23) (75)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class D unit transac-
tions 51 225 161 157
- ------------------------------------------------------------------------------
Net increase (decrease) 3,320 12,489 (1,214) (4,464)
Net assets--beginning of period 51,386 38,897 142,488 146,952
- ------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $54,706 $ 51,386 $141,274 $142,488
- ------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVEST-
MENT INCOME $ 51 $ 49 $ 532 $ 1,355
- ------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on April 1, 1997.
See accompanying notes to financial statements.
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Equity Index Focused Growth Equity Index International Small Company
Portfolio Portfolio Portfolio Growth Portfolio Index Portfolio
- -------------------- ------------------ ------------- ------------------ ------------------
1997 1996 1997 1996 1997 (a) 1997 1996 1997 1996
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 6,983 $ 12,697 $ 112 $ 110 $ 71 $ 540 $ 989 $ 780 $ 1,443
18,566 36,012 9,208 11,548 2 (164) 8,942 1,185 12,846
72,963 100,945 2,815 5,017 1,167 6,150 3,186 7,536 976
-- -- -- -- -- (1) (22) -- --
- -----------------------------------------------------------------------------------------------
98,512 149,654 12,135 16,675 1,240 6,525 13,095 9,501 15,265
- -----------------------------------------------------------------------------------------------
(6,427) (11,982) (130) (317) -- (1,021) (2,919) (1,364) (1,002)
(32,814) (15,194) (12,040) (1,293) -- (5,790) -- (13,019) (5,764)
- -----------------------------------------------------------------------------------------------
(39,241) (27,176) (12,170) (1,610) -- (6,811) (2,919) (14,383) (6,766)
- -----------------------------------------------------------------------------------------------
(505) (603) (4) -- -- -- -- -- --
(2,679) (570) (811) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------
(3,184) (1,173) (815) -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------
(119) (60) -- (2) -- (1) (1) (1) (1)
(399) (26) (79) (8) -- (4) -- (13) (2)
- -----------------------------------------------------------------------------------------------
(518) (86) (79) (10) -- (5) (1) (14) (3)
- -----------------------------------------------------------------------------------------------
147,495 338,095 9,868 32,348 13,959 8,676 28,193 11,276 28,946
36,716 24,880 11,306 1,413 -- 5,984 2,297 13,462 6,297
(162,906) (279,296) (12,405) (27,923) -- (27,590) (51,182) (9,431) (25,770)
- -----------------------------------------------------------------------------------------------
21,305 83,679 8,769 5,838 13,959 (12,930) (20,692) 15,307 9,473
- -----------------------------------------------------------------------------------------------
12,037 52,571 110 6,934 -- -- -- -- --
3,184 1,029 814 -- -- -- -- -- --
(8,311) (25,869) (523) (598) -- -- -- -- --
- -----------------------------------------------------------------------------------------------
6,910 27,731 401 6,336 -- -- -- -- --
- -----------------------------------------------------------------------------------------------
10,382 6,392 84 168 -- 48 71 162 223
420 86 79 10 -- 5 -- 14 3
(1,474) (332) (94) (96) -- (1) (2) (201) (13)
- -----------------------------------------------------------------------------------------------
9,328 6,146 69 82 -- 52 69 (25) 213
- -----------------------------------------------------------------------------------------------
93,112 238,775 8,310 27,311 15,199 (13,169) (10,448) 10,386 18,182
737,738 498,963 113,899 86,588 -- 138,276 148,724 113,125 94,943
- -----------------------------------------------------------------------------------------------
$830,850 $ 737,738 $122,209 $113,899 $15,199 $125,107 $138,276 $123,511 $113,125
- -----------------------------------------------------------------------------------------------
$ 400 $ 468 $ 89 $ 111 $ 71 $ 238 $ 720 $ 574 $ 1,159
- -----------------------------------------------------------------------------------------------
</TABLE>
71
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Class A Class C Class D
--------------------------------------------- ----------------- -----------------
1997 1996 1995 1994 1993 (a) 1997 1996 (b) 1997 1996 (c)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 12.24 $ 11.05 $ 9.50 $ 10.22 $ 10.00 $ 12.24 $ 11.12 $ 12.23 $ 11.34
Income (loss) from in-
vestment operations:
Net investment income 0.18 0.34 0.34 0.24 0.09 0.17 0.29 0.16 0.22
Net realized and
unrealized gain (loss) 0.60 1.19 1.55 (0.72) 0.22 0.59 1.12 0.60 0.96
- -------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.78 1.53 1.89 (0.48) 0.31 0.76 1.41 0.76 1.18
- -------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.18) (0.34) (0.34) (0.22) (0.09) (0.17) (0.29) (0.17) (0.29)
Net realized gain (0.31) -- -- (0.02) -- (0.31) -- (0.31) --
- -------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.49) (0.34) (0.34) (0.24) (0.09) (0.48) (0.29) (0.48) (0.29)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.29 1.19 1.55 (0.72) 0.22 0.28 1.12 0.28 0.89
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 12.53 $ 12.24 $ 11.05 $ 9.50 $ 10.22 $ 12.52 $ 12.24 $ 12.51 $ 12.23
- -------------------------------------------------------------------------------------------------------------
Total return (d) 6.54% 14.07% 20.22% (4.76)% 3.12% 6.39% 12.72% 6.34% 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% 0.61% 0.85% 0.85% 1.00% 1.00%
Expenses, before waiv-
ers and reimbursements 1.18% 1.20% 1.28% 1.50% 1.62% 1.42% 1.44% 1.57% 1.59%
Net investment income,
net of waivers and
reimbursements 2.97% 3.03% 3.36% 2.56% 2.20% 2.73% 2.80% 2.58% 2.78%
Net investment income,
before waivers and
reimbursements 2.40% 2.44% 2.69% 1.68% 1.19% 2.16% 2.21% 2.01% 2.19%
Portfolio turnover rate 36.07% 104.76% 93.39% 75.69% 35.03% 36.07% 104.76% 36.07% 104.76%
Average commission rate
per share $0.0685 $0.0718 NA NA NA $0.0685 $0.0718 $0.0685 $0.0718
Net assets at end of pe-
riod (in thousands) $49,298 $45,157 $38,897 $31,462 $15,928 $ 5,116 $ 5,997 $ 292 $ 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 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.
72
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended and May 31, 1997 (Unaudited) and the Years Ended
November 30,
DIVERSIFIED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
------------------------------------------------- ----------------------------------
1997 1996 1995 1994 1993 (a) 1997 1996 1995 1994 (b)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.36 $ 12.20 $ 9.88 $ 10.65 $ 10.00 $ 14.26 $ 12.16 $ 9.88 $10.41
Income (loss) from
investment operations:
Net investment income 0.06 0.14 0.15 0.09 0.09 0.06 0.11 0.11 0.01
Net realized and
unrealized gain (loss) 1.50 2.33 2.26 (0.83) 0.65 1.46 2.29 2.25 (0.54)
- ----------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.56 2.47 2.41 (0.74) 0.74 1.52 2.40 2.36 (0.53)
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.14) (0.15) (0.09) (0.01) (0.09) (0.13) (0.14) (0.08) --
Net realized gain (1.46) (0.16) -- (0.02) -- (1.46) (0.16) -- --
- ----------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.60) (0.31) (0.09) (0.03) (0.09) (1.59) (0.30) (0.08) --
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.04) 2.16 2.32 (0.77) 0.65 (0.07) 2.10 2.28 (0.53)
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.32 $ 14.36 $ 12.20 $ 9.88 $ 10.65 $ 14.19 $ 14.26 $12.16 $ 9.88
- ----------------------------------------------------------------------------------------------------------------
Total return (c) 12.27% 20.83% 24.55% (6.98)% 7.38% 12.06% 20.39% 24.19% (5.14)%
Ratio to average net as-
sets of (d):
Expenses, net of
waivers and
reimbursements 0.67% 0.66% 0.69% 0.67% 0.71% 1.06% 1.05% 1.08% 1.05%
Expenses, before
waivers and
reimbursements 1.09% 1.10% 1.12% 1.08% 1.13% 1.48% 1.49% 1.51% 1.46%
Net investment income,
net of waivers and
reimbursements 0.82% 0.98% 1.16% 0.77% 1.04% 0.43% 0.59% 0.73% 0.94%
Net investment income,
before waivers and
reimbursements 0.40% 0.54% 0.73% 0.35% 0.62% 0.01% 0.15% 0.30% 0.53%
Portfolio turnover rate 13.99% 59.99% 81.65% 78.94% 140.88% 13.99% 59.99% 81.65% 78.94%
Average commission rate
per share $ 0.0684 $ 0.0655 NA NA NA $0.0684 $0.0655 NA NA
Net assets at end of pe-
riod (in thousands) $140,667 $142,055 $146,731 $164,963 $199,053 $ 607 $ 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 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.
73
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended and May 31, 1997 (Unaudited) and the Years Ended
November 30,
EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
------------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 16.79 $ 13.86 $ 10.60 $ 10.78 $ 10.00
Income from investment
operations:
Net investment income 0.15 0.31 0.30 0.27 0.22
Net realized and unrealized
gain (loss) 1.90 3.36 3.47 (0.18) 0.78
- --------------------------------------------------------------------------------
Total income from investment
operations 2.05 3.67 3.77 0.09 1.00
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.15) (0.31) (0.30) (0.27) (0.22)
Net realized gain (0.83) (0.43) (0.21) -- --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (0.98) (0.74) (0.51) (0.27) (0.22)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.07 2.93 3.26 (0.18) 0.78
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 17.86 $ 16.79 $ 13.86 $ 10.60 $ 10.78
- --------------------------------------------------------------------------------
Total return (d) 12.96% 27.53% 36.60% 0.87% 10.08%
Ratio to average net assets
of (e):
Expenses, net of waivers and
reimbursements 0.22% 0.22% 0.22% 0.23% 0.21%
Expenses, before waivers and
reimbursements 0.47% 0.50% 0.54% 0.59% 0.66%
Net investment income, net
of waivers and
reimbursements 1.83% 2.12% 2.54% 2.62% 2.62%
Net investment income,
before waivers and
reimbursements 1.58% 1.84% 2.22% 2.25% 2.17%
Portfolio turnover rate 5.16% 18.02% 15.27% 71.98% 2.06%
Average commission rate per
share $ 0.0279 $ 0.0228 NA NA NA
Net assets at end of period
(in thousands) $747,088 $675,804 $479,763 $281,817 $219,282
- --------------------------------------------------------------------------------
</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 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.
74
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C Class D
-------------------------- ----------------------------------
1997 1996 1995 (b) 1997 1996 1995 1994 (c)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 16.79 $ 13.86 $ 13.43 $ 16.77 $ 13.83 $10.60 $10.96
Income (loss) from
investment operations:
Net investment income 0.13 0.28 0.05 0.14 0.27 0.25 0.02
Net realized and
unrealized gain (loss) 1.91 3.35 0.45 1.88 3.36 3.47 (0.31)
- -----------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.04 3.63 0.50 2.02 3.63 3.72 (0.29)
- -----------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.15) (0.27) (0.07) (0.14) (0.26) (0.28) (0.07)
Net realized gain (0.83) (0.43) -- (0.83) (0.43) (0.21) --
- -----------------------------------------------------------------------------------------
Total distributions to
unitholders (0.98) (0.70) (0.07) (0.97) (0.69) (0.49) (0.07)
- -----------------------------------------------------------------------------------------
Net increase (decrease) 1.06 2.93 0.43 1.05 2.94 3.23 (0.36)
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 17.85 $ 16.79 $ 13.86 $ 17.82 $ 16.77 $13.83 $10.60
- -----------------------------------------------------------------------------------------
Total return (d) 12.83% 27.24% 3.94% 12.76% 27.20% 36.20% (2.68)%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.46% 0.46% 0.46% 0.61% 0.61% 0.61% 0.60%
Expenses, before
waivers and
reimbursements 0.71% 0.74% 0.78% 0.86% 0.89% 0.93% 0.96%
Net investment income,
net of waivers and
reimbursements 1.59% 1.89% 2.29% 1.44% 1.78% 2.07% 2.67%
Net investment income,
before waivers and
reimbursements 1.34% 1.61% 1.97% 1.19% 1.50% 1.75% 2.31%
Portfolio turnover rate 5.16% 18.02% 15.27% 5.16% 18.02% 15.27% 71.98%
Average commission rate
per share $0.0279 $0.0228 NA $0.0279 $0.0228 NA NA
Net assets at end of
period (in thousands) $64,838 $53,929 $18,390 $18,924 $ 8,005 $ 810 $ 3
- -----------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
FOCUSED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A Class C Class D
-------------------------------------------------- ------------------ ----------------------------
1997 1996 1995 1994 1993 (a) 1997 1996 (b) 1997 1996 1995 (c)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 14.48 $ 12.53 $ 9.79 $ 10.43 $ 10.00 $ 14.47 $ 13.46 $ 14.37 $ 12.48 $ 9.55
Income (loss) from
investment operations:
Net investment income
(loss) 0.01 0.02 0.05 0.02 0.01 -- (0.01) -- (0.03) 0.02
Net realized and
unrealized gain (loss) 1.40 2.17 2.71 (0.66) 0.43 1.39 1.02 1.37 2.15 2.93
- ---------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.41 2.19 2.76 (0.64) 0.44 1.39 1.01 1.37 2.12 2.95
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.02) (0.05) (0.02) -- (0.01) (0.01) -- (0.01) (0.04) (0.02)
Net realized gain (1.68) (0.19) -- -- -- (1.68) -- (1.68) (0.19) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.70) (0.24) (0.02) -- (0.01) (1.69) -- (1.69) (0.23) (0.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.29) 1.95 2.74 (0.64) 0.43 (0.30) 1.01 (0.32) 1.89 2.93
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.19 $ 14.48 $ 12.53 $ 9.79 $ 10.43 $ 14.17 $ 14.47 $ 14.05 $ 14.37 $12.48
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (d) 11.25% 17.82% 28.38% (6.15)% 4.33% 11.13% 7.51% 11.04% 17.42% 30.97%
Ratio to average net as-
sets of (e):
Expenses, net of waivers
and reimbursements 0.92% 0.91% 0.91% 0.91% 0.91% 1.16% 1.15% 1.31% 1.30% 1.30%
Expenses, before waivers
and reimbursements 1.41% 1.43% 1.47% 1.55% 1.88% 1.65% 1.67% 1.80% 1.82% 1.86%
Net investment income
(loss), net of waivers
and reimbursements 0.22% 0.12% 0.46% 0.24% 0.14% (0.02)% (0.12)% (0.17)% (0.28)% (0.11)%
Net investment income
(loss), before waivers
and reimbursements (0.27)% (0.40)% (0.10)% (0.39)% (0.83)% (0.51)% (0.64)% (0.66)% (0.80)% (0.67)%
Portfolio turnover rate 60.73% 116.78% 85.93% 74.28% 27.48% 60.73% 116.78% 60.73% 116.78% 85.93%
Average commission rate
per share $ 0.0671 $ 0.0730 NA NA NA $0.0671 $0.0730 $0.0671 $0.0730 NA
Net assets at end of
period (in thousands) $114,152 $106,250 $86,099 $57,801 $32,099 $ 7,333 $ 6,993 $ 724 $ 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 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.
76
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Period Ended May 31, 1997 (Unaudited)
INTERNATIONAL EQUITY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
--------
1997 (a)
- ------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
Income from investment operations:
Net investment income 0.05
Net realized and unrealized gain 0.96
- ------------------------------------------------------------------
Total income from investment operations 1.01
- ------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income --
- ------------------------------------------------------------------
Total distributions to unitholders --
- ------------------------------------------------------------------
Net increase 1.01
- ------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 11.01
- ------------------------------------------------------------------
Total return (b) 10.07%
Ratio to average net assets of (c):
Expenses, net of waivers and reimbursements 0.51%
Expenses, before waivers and reimbursements 2.61%
Net investment income, net of waivers and reimbursements 2.62%
Net investment income, before waivers and reimbursements 0.52%
Portfolio turnover rate 0.03%
Average commission rate per share $0.0152
Net assets at end of period (in thousands) $15,199
- ------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on April 1, 1997.
(b) Assumes investment at net asset value at beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value of the end of the period. Total
return is not annualized for periods less than one year.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
77
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and the Years Ended November
30,
INTERNATIONAL GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
--------------------------------------- ----------------------------------
1997 1996 1995 1994(a) 1997 1996 1995 1994(b)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 10.63 $ 9.88 $ 10.21 $ 10.00 $ 10.54 $ 9.83 $10.21 $10.47
Income (loss) from in-
vestment operations:
Net investment income 0.04 0.10 0.12 0.05 0.05 0.01 0.19 --
Net realized and
unrealized gain (loss) 0.53 0.87 (0.36) 0.16 0.49 0.92 (0.48) (0.26)
- ------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.57 0.97 (0.24) 0.21 0.54 0.93 (0.29) (0.26)
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.08) (0.22) (0.05) -- (0.08) (0.22) (0.05) --
Net realized gain (0.45) -- (0.04) -- (0.45) -- (0.04) --
- ------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.53) (0.22) (0.09) -- (0.53) (0.22) (0.09) --
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.04 0.75 (0.33) 0.21 0.01 0.71 (0.38) (0.26)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 10.67 $ 10.63 $ 9.88 $ 10.21 $ 10.55 $ 10.54 $ 9.83 $10.21
- ------------------------------------------------------------------------------------------------------
Total return (c) 5.69% 9.96% (2.32)% 2.11% 5.47% 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% 1.06% 1.04% 1.45% 1.45% 1.45% 1.35%
Expenses, before waiv-
ers and reimbursements 1.41% 1.43% 1.38% 1.47% 1.80% 1.82% 1.77% 1.78%
Net investment income,
net of waivers and
reimbursements 0.84% 0.73% 1.22% 0.76% 0.45% 0.44% 2.01% --
Net investment income,
before waivers and
reimbursements 0.49% 0.36% 0.90% 0.33% 0.10% 0.07% 1.69% (0.43)%
Portfolio turnover rate 88.69% 202.47% 215.31% 77.79% 88.69% 202.47% 215.31% 77.79%
Average commission rate
per share $ 0.0200 $ 0.0292 NA NA $0.0200 $0.0292 NA NA
Net assets at end of pe-
riod (in thousands) $124,958 $138,182 $148,704 $133,212 $ 149 $ 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 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.
78
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1997 (Unaudited) and Years Ended November 30,
SMALL COMPANY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A Class D
-----------------------------------------------
--------------------------
1997 1996 1995 1994 1993 (a) 1997 1996 1995 (b)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 13.97 $ 12.98 $ 10.86 $ 11.29 $ 10.00 $ 13.96 $ 12.95 $10.51
Income (loss) from in-
vestment operations:
Net investment income 0.09 0.19 0.16 0.14 0.11 0.14 0.13 0.18
Net realized and
unrealized gain (loss) 0.94 1.75 2.67 (0.30) 1.29 0.88 1.83 2.96
- ------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.03 1.94 2.83 (0.16) 1.40 1.02 1.96 3.14
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.17) (0.14) (0.15) (0.02) (0.11) (0.15) (0.14) (0.14)
Net realized gain (1.59) (0.81) (0.56) (0.25) -- (1.59) (0.81) (0.56)
- ------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.76) (0.95) (0.71) (0.27) (0.11) (1.74) (0.95) (0.70)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.73) 0.99 2.12 (0.43) 1.29 (0.72) 1.01 2.44
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 13.24 $ 13.97 $ 12.98 $ 10.86 $ 11.29 $ 13.24 $ 13.96 $12.95
- ------------------------------------------------------------------------------------------------------
Total return (c) 8.33% 15.96% 27.76% (1.54)% 14.09% 8.18% 16.20% 31.62%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.31% 0.32% 0.32% 0.33% 0.31% 0.70% 0.71% 0.71%
Expenses, before waiv-
ers and reimbursements 0.74% 0.79% 0.81% 0.86% 1.02% 1.13% 1.18% 1.20%
Net investment income,
net of waivers and
reimbursements 1.36% 1.36% 1.31% 1.27% 1.25% 0.97% 1.02% 0.90%
Net investment income,
before waivers and
reimbursements 0.93% 0.89% 0.82% 0.74% 0.54% 0.54% 0.55% 0.41%
Portfolio turnover rate 3.06% 46.26% 38.46% 98.43% 26.31% 3.06% 46.26% 38.46%
Average commission rate
per share $ 0.0286 $ 0.0257 NA NA NA $0.0286 $0.0257 NA
Net assets at end of pe-
riod (in thousands) $123,264 $112,856 $94,899 $ 77,120 $54,763 $ 247 $ 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 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.
79
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1997
(Unaudited)
1. ORGANIZATION
The Benchmark Funds (the "Trust") is a Massachusetts business trust registered
under the Investment Company Act of 1940 (as amended) as an open-end
management investment company. The Trust includes seventeen portfolios, each
with its own investment objective. Each Portfolio, other than the
International Bond Portfolio, is classified as a diversified investment
company. 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 and equity portfolios
("the Portfolios").
Each of the Portfolios, except the Short Duration Portfolio, 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 May
31, 1997, 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.
(a) Investment Valuation
Investments held by a Portfolio are valued at the last quoted sale price on
the exchange on which such securities are primarily traded, or if any
securities are not traded on a valuation date, at the last quoted bid price.
Securities which are traded in the over-the-counter markets are valued at the
last quoted bid price. Exchange traded futures and options are valued at the
settlement price as established by the exchange on which they are traded.
Index futures are marked to market on a daily basis. Any securities, including
restricted securities, for which current quotations are not readily available
are valued at fair value as determined in good faith by Northern under the
supervision of the Board of Trustees ("Board"). Short-term investments are
valued at amortized cost which Northern has determined, pursuant to Board
authorization, approximates market value.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for
the Trust, at the Federal Reserve Bank of Chicago.
(c) Futures Contracts
Each Portfolio may invest in long or short futures contracts for hedging
purposes, to increase total return (i.e., for speculative purposes) or to
maintain liquidity. The Portfolios bear the market risk arising from changes
in the value of these financial instruments. At the time a Portfolio enters
into a futures contract it is required to make a margin deposit with the
custodian of a specified amount of liquid assets. Subsequently, as the market
price of the futures contract fluctuates, gains or losses are recorded and
payments are made, on a daily basis, between the portfolio and the broker. The
Statements of Operations reflects gains and losses as realized for closed
futures contracts and as unrealized for open futures contracts.
At May 31, 1997, the Equity Index and Small Company Index Portfolios had
entered into long exchange traded futures contracts. The aggregate market
value of assets pledged to cover margin requirements for open positions at May
31, 1997 was approximately $1,191,000 and $94,000 for the Equity Index and
Small Company Index Portfolios, respectively.
(d) Options Contracts
Each Portfolio may purchase and write (sell) put and call options on foreign
and domestic stock indices, foreign currencies, and U.S. and foreign
securities that are traded on U.S. and foreign securities exchanges and over-
the-counter markets. These transactions are for hedging (or cross-hedging)
purposes or for the 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
80
<PAGE>
- -------------------------------------------------------------------------------
Portfolio securities. The cost of securities 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 six months ended
May 31, 1997 for the Portfolios were as follows:
<TABLE>
<CAPTION>
Premiums Focused Growth
- -------------------------------------------------------------------
(In thousands)
<S> <C>
Options outstanding, at November 30, 1996 $ --
Options written 111
Options terminated in closing purchase transactions (26)
Options expired (67)
Options exercised (18)
- -------------------------------------------------------------------
Options outstanding, at May 31,1997 $ --
- -------------------------------------------------------------------
</TABLE>
The Portfolios did not write put options during the six months ended May 31,
1997.
(e) 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, interest and
dividend income are translated into U.S. dollars using the spot market rate of
exchange prevailing on the respective dates of such transactions.
The gains or losses on investments resulting from changes in foreign exchange
rates are included with net realized and unrealized gain (loss) on
investments.
(f) 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. Dividend income is recorded on the ex-dividend date.
Dividends from foreign securities are recorded on the ex-date, or as soon as
the information is available.
(g) Forward Foreign Currency Exchange Contracts
Certain Portfolios are authorized to enter into forward foreign currency
exchange contracts for the purchase of a specific foreign currency at a fixed
price on a future date as a hedge or cross-hedge against either specific
transactions or portfolio positions. In addition, the International Bond and
International Growth Portfolios may enter into foreign currency exchange
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 exchange
rates and any resulting unrealized gains or losses are recorded in the
financial statements. The Portfolio records realized gains or losses when the
forward contract is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
The contractual amounts of forward foreign currency exchange contracts do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
At May 31, 1997, the International Bond Portfolio had outstanding contracts
to sell 91,714,400 Japanese yen in exchange for $800,000. Unrealized
appreciation on this contract totaled approximately $25,000 at May 31, 1997.
(h) 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>
81
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1997
(Unaudited)
These amounts are available to be carried forward to offset future capital
gains to the extent permitted by applicable laws or regulations.
(i) Deferred Organization Costs
Organization related costs are being amortized on a straight-line basis over
five years.
(j) 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.
(k) 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
Balanced Quarterly Quarterly
Diversified Growth Annually Annually
Equity Index Quarterly Quarterly
Focused Growth Annually Annually
International Equity Index Annually Annually
International Growth Annually Annually
Small Company Index Annually Annually
- -----------------------------------------------
</TABLE>
Each Portfolio's net realized capital gains are distributed at least
annually. Income dividends and capital gain distributions are determined in
accordance with income tax regulations. Such amounts may differ from income
and capital gains recorded in accordance with generally accepted accounting
principles.
(l) Reclassifications
At November 30, 1996, certain Portfolios made reclassifications among their
capital accounts to reflect the characterization of certain income and capital
gains distributions for federal income tax purposes, as follows:
<TABLE>
<CAPTION>
Undistributed Undistributed
Net Investment Net Capital
Amounts in Thousands Income Gains/(Losses)
- ---------------------------------------------------------
<S> <C> <C>
Bond $740 $(740)
International Bond 404 (404)
Short-Intermediate Bond (390) 390
U.S. Government Securities (11) 11
International Growth 72 (72)
Small Company Index (5) 5
- ---------------------------------------------------------
</TABLE>
These reclassifications had no impact on the net asset value of the
Portfolios and are designed to present those 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
six months ended May 31, 1997, 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
Balanced .80 .30 .50
Diversified Growth .80 .25 .55
Equity Index .30 .20 .10
Focused Growth 1.10 .30 .80
International Equity Index .50 .25 .25
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, for the Portfolios, except the Short Duration
Portfolio.
As compensation for the services rendered as custodian for the Portfolios and
for 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.
82
<PAGE>
- -------------------------------------------------------------------------------
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, at
an annual rate of .10% of the Portfolios daily net assets, except the
International Bond, International Equity Index and International Growth
Portfolios which pay the Administrators a fee, computed daily and payable
monthly, at an annual rate of .15% of their respective daily net assets. In
addition, if in any fiscal year, the sum of a Portfolio's expenses (including
the administration fee, but excluding the investment advisory fee and transfer
agency fee payable to Northern pursuant to its agreements with the Trust and
servicing fees, and extraordinary expenses (such as taxes, interest, and
indemnification expenses)), exceeds on an annualized basis .10% of a
Portfolio's average net assets (0.25% for International Growth Portfolio,
International Bond Portfolio and International Equity Index Portfolio),
Goldman Sachs will reimburse each Portfolio for the amount of the excess
pursuant to the terms of the administration agreement.
Prior to May 1, 1997 each Portfolio paid the Administrator a fee, computed
daily and payable monthly, based on the average net assets of each Portfolio
at the rates set forth below:
<TABLE>
<CAPTION>
Average net assets Rate
- ---------------------------------------
<S> <C>
For the first $100,000,000 .250%
For the next $200,000,000 .150
For the next $450,000,000 .075
For net assets over $750,000,000 .050
- ---------------------------------------
</TABLE>
Prior to May 1, 1997, Goldman Sachs also voluntarily agreed to limit
administration fees to .10% of average daily net assets for each Portfolio,
except the Short Duration Portfolio. In addition, Goldman Sachs agreed to
waive a portion of its administrative fees should overall administration fees
earned during the preceding year exceed certain specified levels. No waiver
was required under this agreement during the six months ended May 31, 1997.
Furthermore, Goldman Sachs voluntarily agreed to reimburse each Portfolio for
certain expenses in the event that such expenses, as defined, exceed on an
annualized basis .10% of its average daily net assets for such fiscal year for
the Bond, Short-Intermediate Bond, Short Duration, U.S. Government Securities,
U.S. Treasury Index, Balanced, Diversified Growth, Equity Index, Focused
Growth and Small Company Index Portfolios and .25% of the average daily net
assets for such fiscal year for the International Bond, International Equity
Index and International Growth Portfolios.
The administration fees waived and expenses reimbursed during the six months
ended May 31, 1997 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 six months ended May 31, 1997(excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from
Purchases maturities sales and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
- -------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $107,189 $205,917 $184,040 $32,882
International Bond -- 3,663 -- 6,344
Short Duration 2,496 -- -- 8,824
Short-Intermediate Bond 17,214 37,065 43,953 8,040
U.S. Government Securities 56,887 -- 57,555 --
U.S. Treasury Index 11,292 -- 7,939 --
Balanced 5,068 14,204 7,787 10,054
Diversified Growth -- 18,782 -- 36,744
Equity Index -- 67,701 -- 39,300
Focused Growth -- 67,091 -- 71,514
International Equity Index -- 13,887 -- 4
International Growth -- 109,745 -- 126,339
Small Company Index -- 10,033 -- 3,411
- -------------------------------------------------------------------------
</TABLE>
83
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1997
(Unaudited)
As of May 31, 1997, 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 $ 4,931 $ 4,750 $ 181 $470,854
International Bond 2,354 2,117 237 27,613
Short Duration -- 61 (61) 46,248
Short-Intermediate Bond 1,375 1,377 (2) 161,679
U.S. Government Securities 324 685 (361) 95,255
U.S. Treasury Index 163 300 (137) 30,288
Balanced 9,685 328 9,357 44,914
Diversified Growth 46,762 334 46,428 94,248
Equity Index 277,040 10,631 266,409 591,475
Focused Growth 23,857 1,298 22,559 99,211
International Equity Index 1,328 161 1,167 13,947
International Growth 13,045 3,058 9,987 112,198
Small Company Index 32,154 12,027 20,127 103,224
- -----------------------------------------------------------------------------
</TABLE>
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 six months ended May 31, 1997 was approximately
$8,000, $29,000, $3,000 and $1,000 for the Diversified Growth, Equity Index,
Focused Growth and International Growth Portfolios, respectively. These
amounts are included in "Other Expenses" on the Statements of Operations.
As of May 31, 1997, there were no outstanding borrowings.
8. UNIT TRANSACTIONS
Transactions in Class A units for the six months ended May 31, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 4,251 513 2,356 2,408
International Bond 36 42 220 (142)
Short Duration 2,713 127 2,512 328
Short-Intermediate Bond 2,038 231 1,939 330
U.S. Government Securities 1,996 113 2,703 (594)
U.S. Treasury Index 219 34 75 178
Balanced 398 149 303 244
Diversified Growth 470 1,144 1,682 (68)
Equity Index 9,010 2,283 9,729 1,564
Focused Growth 743 905 939 709
International Equity Index 1,381 -- -- 1,381
International Growth 863 606 2,751 (1,282)
Small Company Index 890 1,087 752 1,225
- ----------------------------------------------------------------------
</TABLE>
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
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>
84
<PAGE>
- -------------------------------------------------------------------------------
Transactions in Class C units for the six months ended May 31, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 2,558 34 219 2,373
U.S. Government Securities 41 5 36 10
Balanced 63 19 163 (81)
Equity Index 722 198 500 420
Focused Growth 10 63 38 35
- -------------------------------------------------------------------------------
Transactions in the Class C units for the year ended November 30, 1996 were as
follows:
<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
Balanced 548 11 69 490
Equity Index 3,499 70 1,685 1,884
Focused Growth 529 0 46 483
- -------------------------------------------------------------------------------
Transactions in Class D units for the six months ended May 31, 1997 were as
follows:
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 3 -- 6 (3)
International Bond 1 -- -- 1
Short-Intermediate Bond 7 -- 1 6
U.S. Government Securities 5 -- 1 4
U.S. Treasury Index 42 1 15 28
Balanced 11 1 8 4
Diversified Growth 10 4 1 13
Equity Index 649 26 90 585
Focused Growth 6 6 6 6
International Growth 5 -- -- 5
Small Company Index 12 1 13 --
- -------------------------------------------------------------------------------
</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
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>
9. SUBSEQUENT EVENT
The Short Duration Portfolio ceased investment operations on June 30, 1997.
85
<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
Valerie A. Zondorak, Assistant Secretary
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Semi-Annual Report is authorized for distribution to prospective
investors only when preceded or accompanied by a Prospectus which contains
facts concerning the objectives and policies, management expenses and other
information.
