<PAGE>
The
Benchmark Funds
Money
Market
Portfolios
Annual Report
November 30, 1997
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Management's Discussion of Portfolio Performance........................... 2
Voting Results of Special Meeting of Unitholders........................... 3
Statements of Investments
Investment Abbreviations and Notes....................................... 4
Diversified Assets Portfolio............................................. 5
Government Portfolio..................................................... 9
Government Select Portfolio.............................................. 10
Tax-Exempt Portfolio..................................................... 11
Statements of Assets and Liabilities....................................... 16
Statements of Operations................................................... 17
Statements of Changes in Net Assets........................................ 18
Financial Highlights....................................................... 19
Notes to the Financial Statements.......................................... 23
Report of Independent Auditors............................................. 25
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
BENCHMARK DIVERSIFIED ASSETS PORTFOLIO
BENCHMARK GOVERNMENT PORTFOLIO
BENCHMARK GOVERNMENT SELECT PORTFOLIO
With respect to interest rate changes, the Federal Reserve was fairly quiet
during the fiscal year. The only change came on March 25, 1997, when the Fed
implemented a quarter-point interest rate increase. What had a greater impact
on interest rates was the Asian market crisis, which resulted in economic
instability and the devaluation of currencies throughout the region.
Consequently, there was a flight to quality in the U.S. market, where interest
rates fell consistently and dramatically despite a robust economy. Yield
curves flattened, and in some sectors they inverted.
During the first half of the fiscal year, the government portfolios
maintained average maturities that were short of their peer groups. We shifted
our strategy in the second half, as we extended the portfolios' average
maturities relative to their peer groups. We also implemented a barbell
strategy during the year, whereby shorter-term securities were purchased for
liquidity and longer-term securities were added for their yield advantages.
This strategy also provided a hedge against deflation. We will continue with
this strategy as long as the Federal Reserve maintains a tightening bias.
We did not make many changes in the investment composition of the
Diversified Assets Portfolio during the fiscal year. The heaviest
concentration of securities continues to be in tier one commercial paper,
where there is the greatest yield advantage. At the end of the fiscal year,
the Portfolio's average maturity was 45 days, which remains consistent with
other money market funds with the same investment structure. Providing
liquidity, maintaining a high credit quality and offering an attractive yield
remain the primary goals for the Portfolio.
MARY ANN FLYNN
VALERIE LOKHORST
Portfolio Managers
BENCHMARK TAX-EXEMPT MONEY MARKET PORTFOLIO
The Portfolio continued to benefit from a barbell maturity strategy during
fiscal 1997. Due to our belief that the Federal Reserve would hold interest
rates relatively stable during 1997, we "barbelled" the Portfolio with very
short-term and one-year securities. This enabled us to extend the Portfolio's
average maturity longer than that of its peer group and still keep it
responsive to any change in short-term interest rates. The yield curve in the
short-term tax-exempt market was flat, especially inside of six months. As a
result, the one-year paper added increased yield to the Portfolio.
The short-term, tax-exempt market is a technically driven, cyclical market.
There are certain times of the year (such as tax time, calendar year-end, and
the end of June and the first part of July) when our market has wide swings in
both assets and yields. We have to anticipate these cycles and be able to
manage the volatile swings in assets and yields.
We have shortened the Portfolio's average maturity to a level that is about
equal to that of the Portfolio's peer group. We did this because we believe
that recent economic data point to an increased likelihood of the Federal
Reserve raising interest rates in early 1998. Our current maturity structure
should allow the Portfolio to better respond to any increase in interest
rates.
BRAD SNYDER
Portfolio Manager
Units of The Benchmark Funds are not bank deposits or obligations of, or
guaranteed, endorsed or otherwise supported by The Northern Trust Company, its
parent company, or its affiliates, and are not Federally insured or guaranteed
by the U.S. Government, Federal Deposit Insurance Corporation, Federal Reserve
Board, or any other governmental agency. 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.
2
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
VOTING RESULTS OF SPECIAL MEETING OF UNITHOLDERS
At a Special Meeting of Unitholders of the Trust (the "Meeting") called on
September 2, 1997 the following actions were taken:
(1) The following individuals were elected to serve on the Board of Trustees
by the unitholders of all Portfolios of the Trust voting together in the
aggregate:
<TABLE>
<CAPTION>
Number of
Number of Votes
Name of Trustee Votes For Withheld
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Richard G. Cline 4,342,632,239 76,704,013
Edward J. Condon 4,342,191,351 77,144,902
John W. English 4,342,191,351 77,144,902
James J. Gavin, Jr. 4,328,946,859 90,389,394
Sandra P. Guthman 4,342,187,348 77,148,905
Frederick T. Kelsey 4,333,070,647 86,265,606
William H. Springer 4,342,190,200 77,146,053
Richard P. Strubel 4,342,191,351 77,144,902
- ---------------------------------------------------------------------------------------------
</TABLE>
(2) The approval of the selection of Ernst & Young LLP as the Trust's
independent auditors for the fiscal year ending November 30, 1997 was ratified
by all the unitholders of all Portfolios of the Trust voting together in the
aggregate as follows:
<TABLE>
<CAPTION>
Votes
Votes For Against Abstained
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
4,355,519,334 26,510 63,790,409
- ---------------------------------------------------------------------------------------------------
</TABLE>
(3) An Agreement and Plan of Reorganization pursuant to which each Portfolio
will be reorganized as a series of a Delaware business trust also named The
Benchmark Funds was approved by all Portfolios (voting separately on a
Portfolio-by-Portfolio basis) as follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- -------------------------------------------------------
<S> <C> <C> <C>
Diversified Assets 2,169,328,872 18,710,077 66,235,452
Government 771,222,693 2,446,373 14,450,129
Government Select 752,884,534 27,326,299 3,860,430
Tax-Exempt 457,004,195 52,066,122 1,850,666
- -------------------------------------------------------
</TABLE>
(4)(a) A new fundamental investment policy regarding investments in other
investment company securities was approved by each of the Portfolios (voting
separately on a Portfolio-by-Portfolio basis) as follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- -------------------------------------------------------
<S> <C> <C> <C>
Diversified Assets 2,123,578,581 64,486,878 66,208,941
Government 746,076,038 27,593,028 14,450,129
Government Select 709,474,162 66,009,547 8,587,554
Tax-Exempt 494,813,160 14,257,157 1,850,666
- -------------------------------------------------------
</TABLE>
(4)(b) A related amendment to the Trust's Declaration of Trust was approved
by all the unitholders of all Portfolios of the Trust voting together in the
aggregate as follows:
<TABLE>
<CAPTION>
Votes
Votes For Against Abstained
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
4,221,718,223 101,504,918 96,113,107
- -------------------------------------------------------------------------------------------------
</TABLE>
(5) A new fundamental investment restriction for each diversified Portfolio
concerning issuer diversification was approved by each of the Portfolios
(voting separately on a Portfolio-by-Portfolio basis) as follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- -------------------------------------------------------
<S> <C> <C> <C>
Diversified Assets 2,119,251,232 65,501,623 69,521,546
Government 765,905,734 7,763,331 14,450,129
Government Select 777,184,660 3,097,875 3,788,729
Tax-Exempt 458,948,766 51,876,581 95,635
- -------------------------------------------------------
</TABLE>
3
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
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.
FHLB --Federal Home Loan Bank
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
RAN --Revenue Anticipation Note
Soc Gen--Societe Generale
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 or the next
interest reset date for floating rate 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>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO
<C> <C> <S> <C>
BANK NOTES--3.9%
Bayerische
Landesbank
$28,000 6.150% 08/14/98 $ 28,058
First National
Bank of Boston
15,000 5.690 04/09/98 15,000
First Wachovia
Bank, North
Carolina
30,000 6.100 04/06/98 29,990
Huntington
National Bank,
Columbus
23,000 5.800 09/22/98 22,985
Key Bank
9,000 5.580 12/15/97 8,981
Morgan Guaranty
Trust Co.
30,000 5.965 06/22/98 29,994
Sun Trust Bank
20,000 5.830 07/14/98 19,993
- ------------------------------------------------------
TOTAL BANK NOTES $ 155,001
- ------------------------------------------------------
CERTIFICATES OF DEPOSIT--11.3%
DOMESTIC DEPOSITORY INSTITUTIONS--3.2%
Bankers Trust New
York Corp.
$50,000 5.880% 07/14/98 $ 49,991
First Tennessee
Bank
38,000 5.550 12/05/97 38,000
24,000 5.580 12/23/97 24,000
Huntington
National Bank,
Columbus
16,000 5.890 09/18/98 15,996
----------
127,987
----------
FOREIGN DEPOSITORY INSTITUTIONS--8.1%
Bank of Tokyo-
Mitsubishi, London
23,000 5.600 12/29/97 23,000
10,000 5.770 12/29/97 9,999
10,000 5.950 02/17/98 10,000
Barclays Bank, New
York
25,000 5.940 06/25/98 24,992
Canadian Imperial
Bank of Commerce,
New York
25,000 5.625 04/07/98 25,000
25,000 5.650 04/07/98 25,000
24,000 5.940 10/21/98 23,989
National
Westminster Bank,
New York
15,000 5.940 06/26/98 14,995
Norinchukin Bank,
New York
40,000 5.570 12/10/97 40,000
Societe Generale,
New York
20,000 5.800 01/13/98 19,998
14,000 5.870 03/03/98 13,999
45,000 5.890 07/17/98 45,004
Sumitomo Bank
Ltd., New York
16,000 5.580 12/09/97 16,000
26,000 5.660 12/15/97 26,000
----------
317,976
- ------------------------------------------------------
TOTAL CERTIFICATES OF DE-
POSIT $ 445,963
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
COMMERCIAL PAPER--52.5%
ASSET-BACKED SECURITIES--24.3%
ABC Funding
$15,000 5.680% 06/01/98 $ 14,569
AESOP Funding
2,800 5.750 01/15/98 2,780
Ascot Capital
Corp.
8,000 5.650 12/22/97 7,974
3,250 5.560 01/15/98 3,227
Amsterdam Funding
18,000 5.540 12/19/97 17,950
Barton Capital
Corp.
9,300 5.600 12/22/97 9,270
20,000 5.750 01/16/98 19,853
15,000 5.750 01/23/98 14,873
Centric Funding
23,000 5.650 12/05/97 22,986
15,000 5.650 12/09/97 14,981
38,420 5.650 12/10/97 38,366
Cooperative
Association of
Tractor Dealers,
Series: A
13,900 5.750 02/19/98 13,722
Corporate
Receivables Corp.
60,000 5.650 12/01/97 60,000
CPI Funding
46,558 5.670 05/26/98 45,267
CXC, Inc.
13,088 5.750 01/16/98 12,992
12,500 5.600 01/27/98 12,389
Galleon Capital
Corp.
7,500 5.570 12/03/97 7,498
8,488 5.670 12/12/97 8,473
Gotham Funding
Corp.
25,000 5.550 12/03/97 24,992
15,914 5.550 12/05/97 15,904
Eureka
Securitization,
Inc.
10,000 5.550 12/18/97 9,974
Lexington Parker
Capital Company
LLC
35,000 5.540 12/01/97 35,000
26,000 5.650 12/16/97 25,939
7,000 5.570 01/30/98 6,935
Pooled Account
Receivable Corp.
7,032 5.670 12/15/97 7,016
25,974 5.620 12/18/97 25,905
Ranger Funding
Corp.
5,500 5.540 12/19/97 5,485
15,000 5.740 02/10/98 14,830
R.O.S.E., Inc.
15,000 5.650 02/05/98 14,845
26,000 5.730 02/27/98 25,636
R.O.S.E., Inc. #2
22,999 5.690 02/04/98 22,763
SALTS (II) Cayman
Islands Corp.
24,000 5.769 12/18/97 24,000
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
<C> <C> <S> <C>
ASSET-BACKED SECURITIES--CONTINUED
SALTS (III) Cayman
Islands Corp.
$ 25,000 6.065% 12/18/97 $ 25,000
70,000 5.944 01/23/98 70,000
Thames Assets
Global
Securitization
23,000 5.800 01/20/98 22,815
20,000 5.750 02/17/98 19,751
30,000 5.780 02/23/98 29,595
9,000 5.750 02/25/98 8,876
Trident Capital
Finance, Inc.
30,000 5.600 01/21/98 29,762
Variable Funding
Capital
7,557 5.700 12/05/97 7,552
15,125 5.650 12/22/97 15,075
70,000 5.750 01/20/98 69,441
16,500 5.730 02/26/98 16,272
WCP Funding, Inc.
10,000 5.750 01/16/98 9,927
Windmill Funding
Corp.
10,000 5.750 01/30/98 9,904
Wood Street
Funding Corp.
5,315 5.550 12/16/97 5,303
20,000 5.600 01/21/98 19,841
14,000 5.600 01/26/98 13,878
----------
959,386
----------
BUSINESS SERVICES--2.2%
Sanwa Business
Credit Corp.
20,000 5.560 12/18/97 19,948
65,000 5.560 12/19/97 64,820
----------
84,768
----------
COMMUNICATIONS--1.7%
MCI Communications
Corp.
7,500 5.600 12/12/97 7,487
23,000 5.650 12/16/97 22,946
22,700 5.610 12/22/97 22,626
12,500 5.820 01/23/98 12,393
----------
65,452
----------
ELECTRIC SERVICES--0.5%
CSW Credit, Inc.
6,003 5.800 01/13/98 5,961
Edison
International
15,000 5.670 12/08/97 14,983
----------
20,944
----------
ELECTRONIC AND OTHER
ELECTRICAL COMPONENTS--0.6%
General Electric
Capital Corp.
24,000 5.700 12/01/97 24,000
----------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------
<C> <C> <S> <C>
FOOD AND KINDRED PRODUCTS--
1.2%
Bass Finance
(C.I.) Ltd.
$ 1,411 5.670% 12/18/97 $ 1,407
Cofco Capital
Corp. (Credit
Suisse LOC)
15,000 5.550 12/03/97 14,995
15,000 5.600 12/19/97 14,958
15,000 5.740 01/28/98 14,861
----------
46,221
----------
FOREIGN DEPOSITORY
INSTITUTIONS--0.8%
Banco Real S.A.,
Grand Cayman
Islands
15,000 5.650 04/16/98 14,680
Nacional
Financiera,
S.N.C.,
Grand Cayman
Islands
15,000 5.700 05/13/98 14,613
----------
29,293
----------
GENERAL MERCHANDISE STORES--0.6%
Sears Roebuck
Acceptance Corp.
25,000 5.550 03/13/98 24,607
----------
INSURANCE CARRIERS--1.7%
AON Corp.
9,000 5.670 12/01/97 9,000
Equitable of Iowa
Cos.
10,000 5.750 01/13/98 9,931
Lincoln National
Corp.
3,250 5.550 01/15/98 3,227
Special Purpose
Accounts
Receivable
30,000 5.750 02/26/98 29,583
Torchmark, Inc.
16,000 5.650 12/08/97 15,982
----------
67,723
----------
MEASURING, ANALYZING AND
CONTROL INSTRUMENTS--2.2%
Xerox Overseas
Holdings
88,000 5.650 12/01/97 88,000
----------
MISCELLANEOUS RETAIL--0.1%
Mont Blanc Capital
3,450 5.700 12/04/97 3,448
----------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS--2.2%
FBA Properties,
Inc. (NationsBank
Georgia LOC)
4,300 5.650 12/10/97 4,294
Finova Capital
Corp.
25,000 5.630 02/18/98 24,691
10,000 5.700 03/12/98 9,840
15,000 5.700 03/16/98 14,751
Heller Financial
34,000 5.650 12/16/97 33,920
----------
87,496
----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
NONDEPOSITORY PERSONAL
CREDIT INSTITUTIONS--2.6%
American General
Finance Corp.
$ 54,500 5.730% 12/01/97 $ 54,500
Countrywide Home
Loans
27,750 5.650 12/05/97 27,733
Green Tree
Financial Corp.
20,000 5.910 01/23/98 19,826
----------
102,059
----------
TRANSPORTATION--10.2%
BMW US Capital
Corp.
15,000 5.550 12/15/97 14,968
Chrysler Financial
Corp.
100,000 5.600 12/22/97 99,673
25,000 5.600 12/23/97 24,914
Ford Credit
Canada, Ltd.
12,000 5.750 02/23/98 11,839
25,000 5.750 02/26/98 24,653
10,000 5.760 03/03/98 9,853
Ford Motor Credit
Corp.
20,000 5.700 12/01/97 20,000
General Motors
Acceptance Corp.
10,000 5.550 12/04/97 9,995
15,000 5.540 12/11/97 14,977
20,000 5.690 02/10/98 19,776
50,000 5.780 02/19/98 49,358
15,000 5.650 03/05/98 14,779
10,000 5.590 03/12/98 9,843
25,000 5.580 03/31/98 24,535
10,000 5.660 04/15/98 9,788
15,000 5.740 04/15/98 14,677
6,000 5.670 04/16/98 5,871
Mitsubishi Motors
Credit of America,
Inc.
21,000 5.750 12/18/97 20,943
----------
400,442
----------
WATER SERVICES--0.2%
Browning Ferris
Industries
10,000 5.600 12/18/97 9,974
----------
WHOLESALE TRADE-DURABLE
GOODS--1.4%
Newell Co.
31,000 5.600 12/05/97 30,981
Sinochem American
Holdings, Inc.
25,000 5.750 12/05/97 24,984
----------
55,965
- -----------------------------------------
TOTAL COMMERCIAL PAPER $2,069,778
- -----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------
<C> <C> <S> <C>
CORPORATE NOTES--6.2%
Associates Corp.
NA
$ 50,000 5.600% 03/02/98 $ 49,991
Beta Finance
10,000 6.000 10/27/98 10,000
CIT Group Holdings
20,000 6.750 04/30/98 20,065
Crozer Keystone
Health System
7,600 5.730 12/03/97 7,600
General Electric
Engine Receivables
1995-1 Trust FRN
17,374 5.600 12/01/97 17,374
General Electric
Engine Receivables
1996-1 Trust
34,732 5.678 12/01/97 34,732
Key Bank NA
25,000 6.190 04/13/98 24,995
Key Bank NA FRN
51,000 5.515 03/19/98 51,000
Morgan Stanley
Trust Certificates
1996-2
27,904 5.725 12/23/97 27,905
- -----------------------------------------
TOTAL CORPORATE NOTES $ 243,662
- -----------------------------------------
EURODOLLAR TIME DEPOSITS--
9.4%
Banque Brussels
Lambert, Grand
Cayman Islands
$ 50,000 5.750% 12/01/97 $ 50,000
Banque Paribas,
Grand Cayman
Islands
70,000 5.688 12/01/97 70,000
Bayerische
Landesbank
Girozentrale,
London
2,000 5.750 12/29/97 2,000
Berliner Handels
Und Frankfurter,
Grand Cayman
Islands
50,000 5.688 12/01/97 50,000
Den Danske Bank,
Grand Cayman
Islands
75,000 5.563 12/01/97 75,000
Kredietbank, Grand
Cayman Islands
125,000 5.688 12/01/97 125,000
- -----------------------------------------
TOTAL EURODOLLAR TIME DEPOS-
ITS $ 372,000
- -----------------------------------------
GUARANTEED INVESTMENT CON-
TRACTS--3.2%
General American
Life Insurance Co.
FRN
$ 75,000 5.850% 12/23/97 $ 75,000
Integrity Life
Insurance Co. FRN
15,000 5.950 01/01/98 15,000
Transamerica Life
Insurance and
Annuity Co. FRN
35,000 5.641 12/01/97 35,000
- -----------------------------------------
TOTAL GUARANTEED INVESTMENT
CONTRACTS $ 125,000
- -----------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
<C> <C> <S> <C>
MUNICIPAL INVESTMENTS--5.2%
City of
Minneapolis-St.
Paul (Minnesota)
Metro Airport GO
Bond
$ 28,930 5.756% 12/01/97 $ 28,930
City of Seattle
(Washington) Ltd.
GO Bond, Series C
46,525 5.667 12/03/97 46,525
County of Kern
(California)
Pension Obligation
18,000 5.828 12/01/97 18,000
County of Los
Angeles
(California)
Pension Obligation
40,000 5.880 12/04/97 40,000
County of Sonoma
(California)
Pension Obligation
22,800 5.980 12/01/97 22,800
Health Insurance
Plan of Greater
New York
23,500 5.650 12/03/97 23,500
State of New
Jersey Economic
Development
Authority
25,000 5.728 12/03/97 25,000
- -----------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 204,755
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCY--0.9%
FHLB DISCOUNT NOTE
$ 35,194 5.600% 12/01/97 $ 35,194
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY $ 35,194
- -----------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--
0.3%
U.S. TREASURY BILL
$ 10,000 5.135% 09/17/98 $ 9,586
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATION $ 9,586
- -----------------------------------------------------------
REPURCHASE AGREEMENTS--8.9%
REPURCHASE AGREEMENTS--7.6%
HSBC Securities,
Inc., Dated
11/28/97,
Repurchase Price
$100,048
(U.S. Government
Securities Colld.)
$100,000 5.720% 12/01/97 $ 100,000
Merrill Lynch
Government
Securities, Inc.,
Dated 11/28/97,
Repurchase Price
$200,093 (U.S.
Government
Securities Colld.)
200,000 5.600 12/01/97 200,000
----------
300,000
----------
JOINT REPURCHASE AGREEMENT--1.3%
UBS Securities,
Inc., Dated
08/29/97
(U.S. Government
Securities Colld.)
Accrued Interest
$146
50,000 5.690 12/01/97 50,000
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 350,000
- -----------------------------------------------------------
TOTAL INVESTMENTS--101.8% $4,010,939
- -----------------------------------------------------------
Liabilities, less other
assets--(1.8)% (69,353)
- -----------------------------------------------------------
NET ASSETS--100.0% $3,941,586
- -----------------------------------------------------------
- -----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- --------------------------------------------------
Principal Interest Maturity Amortized
Amount Rate Date Cost
- --------------------------------------------------
GOVERNMENT PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--57.2%
FHLB DISCOUNT NOTES--30.5%
$ 95,895 5.332% 12/01/97 $ 95,895
50,000 5.352 12/01/97 50,000
75,000 5.402 12/01/97 75,000
100,000 5.553 12/01/97 100,000
----------
320,895
----------
FHLB MEDIUM TERM NOTES--18.5%
67,000 5.720 07/07/98 66,979
82,000 5.715 07/21/98 81,986
17,500 5.710 10/01/98 17,502
7,765 5.690 10/02/98 7,760
10,230 5.792 10/23/98 10,234
10,000 5.775 10/30/98 9,999
----------
194,460
----------
FANNIE MAE MEDIUM TERM NOTE--0.5%
5,000 5.630 08/14/98 4,992
----------
OVERSEAS PRIVATE INVESTMENT CORP. FRN--
4.3%
45,800 5.660 12/03/97 45,800
----------
SLM HOLDING CORP. MEDIUM TERM NOTES--3.4%
12,000 5.630 08/06/98 11,992
6,000 5.600 08/11/98 5,990
4,475 5.790 09/16/98 4,478
13,000 5.720 11/20/98 12,993
----------
35,453
- --------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $ 601,600
- --------------------------------------------------
U.S. GOVERNMENT OBLIGATION--1.0%
U.S. TREASURY NOTE--1.0%
$ 10,000 7.250% 02/15/98 $ 10,033
- --------------------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATION $ 10,033
- --------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ------------------------------------------
<C> <C> <S> <C>
REPURCHASE AGREEMENTS--42.8%
REPURCHASE AGREEMENTS--38.0%
Donaldson, Lufkin,
& Jenrette
Securities, Inc.,
Dated 11/28/97,
Repurchase Price
$100,047 (U.S.
Government
Securities Colld.)
$100,000 5.625% 12/01/97 $ 100,000
HSBC Securities,
Inc., Dated
11/28/97,
Repurchase Price
$200,095 (U.S.
Government
Securities Colld.)
200,000 5.720 12/01/97 200,000
SBC Capital
Markets, Dated
11/28/97,
Repurchase Price
$100,047 (U.S.
Government
Securities Colld.)
100,000 5.680 12/01/97 100,000
----------
400,000
----------
JOINT REPURCHASE AGREEMENT--4.8%
UBS Securities,
Inc., Dated
08/29/97,
(U.S. Government
Securities Colld.)
Accrued Interest
$134
50,000 5.690 12/01/97 50,000
- ------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 450,000
- ------------------------------------------
TOTAL INVESTMENTS--101.0% $1,061,633
- ------------------------------------------
Liabilities, less other
assets--(1.0)% (10,232)
- ------------------------------------------
NET ASSETS--100.0% $1,051,401
- ------------------------------------------
- ------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--100.3%
FEDERAL FARM CREDIT BANK--0.6%
$ 7,000 5.750% 07/01/98 $ 6,994
----------
FEDERAL FARM CREDIT BANK DISCOUNT
NOTES--6.5%
28,000 5.463 12/15/97 27,941
53,000 5.457 12/17/97 52,872
----------
80,813
----------
FHLB--14.9%
64,000 5.720 07/07/98 63,980
54,000 5.715 07/21/98 53,992
11,150 5.710 10/01/98 11,151
8,340 5.690 10/02/98 8,334
22,875 5.700 10/23/98 22,862
24,000 5.775 10/30/98 23,998
----------
184,317
----------
FHLB DISCOUNT NOTES--60.5%
4,105 5.332 12/01/97 4,105
193,798 5.603 12/01/97 193,798
39,000 5.442 12/10/97 38,947
58,050 5.452 12/10/97 57,971
144,500 5.461 12/12/97 144,260
50,000 5.463 12/12/97 49,917
141,750 5.493 12/17/97 141,406
38,000 5.503 12/01/97 37,908
23,184 5.474 12/18/97 23,124
54,000 5.492 12/19/97 53,852
4,500 5.502 02/02/98 4,459
----------
749,747
----------
SLM HOLDING CORP.--4.8%
10,000 5.535 02/25/98 9,999
17,000 6.080 08/11/98 16,970
17,000 5.820 09/16/98 17,008
15,500 5.720 11/20/98 15,492
----------
59,469
----------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------
Principal
Amount/ Maturity Amortized
Shares Rate Date Cost
- -------------------------------------------------------------------
<C> <S> <C> <C>
SLM HOLDING CORP. DISCOUNT NOTES--13.0%
$46,600 5.444% 12/17/97 $ 46,488
77,000 5.455 12/18/97 76,803
38,000 5.468 12/22/97 37,879
----------
161,170
- -------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $1,242,510
- -------------------------------------------------------------------
OTHER INVESTMENT--0.0%
Dreyfus Treasury Prime Cash Management,
Class A
594 -- -- $ 594
- -------------------------------------------------------------------
TOTAL OTHER INVESTMENT $ 594
- -------------------------------------------------------------------
TOTAL INVESTMENTS--100.3% $1,243,104
- -------------------------------------------------------------------
Liabilities, less other assets--(0.3)% (3,711)
- -------------------------------------------------------------------
NET ASSETS--100.0% $1,239,393
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--93.4%
ALABAMA--0.2%
City of Greenville IDR VRDN,
Series 1992, Allied-Signal
Project (FMC Corp. Gtd.)
<S> <C> <C> <C>
$ 1,350 4.000% 12/07/97 $ 1,350
--------
ALASKA--0.7%
Alaska Housing Finance Corp.
VRDN, Series 1994, Merrill P-
Floats, PT-37 (FNMA Securities
Colld.)
3,900 3.950 12/01/97 3,900
--------
ARKANSAS--0.1%
County of Jefferson PCR Bond,
Arkansas Electric Coop. Corp.
Project D (National Rural
Utility Coop. Finance Co. Gtd.)
560 3.850 03/01/98 560
--------
CALIFORNIA--8.5%
City of Freemont Unified School
District TRAN, Series 1997
4,600 4.250 06/30/98 4,609
City of San Marcos Public
Facilities Authority, Series
BTP-188, Civic Center Project
(U.S. Government Securities
Colld.)
7,961 3.950 03/30/98 7,961
County of Irvine Ranch Water
District, Series 1993 B,
Districts 2, 102, 103, & 206
(Morgan Guaranty Trust Co. LOC)
6,000 3.600 12/01/97 6,000
County of Los Angeles TRAN,
Series A
5,000 4.500 06/30/98 5,018
County of Riverside TRAN, Series
A
5,000 4.500 06/30/98 5,015
County of Sacramento Multifamily
Housing Revenue VRDN, Series
1985 C (Dai-Ichi Kangyo Bank
LOC)
200 3.900 12/07/97 200
State of California RAN, Series
1997 B
21,000 4.150 12/01/97 21,000
--------
49,803
--------
DISTRICT OF COLUMBIA--0.4%
District of Columbia VRDN,
Series A, Columbia Hospital for
Women Project (Bank of Tokyo-
Mitsubishi LOC)
2,800 4.250 12/07/97 2,800
--------
FLORIDA--7.9%
County of Alachua Health
Facilities Authority, Academic
Research Building Project
(Barnett Bank LOC)
2,550 3.900 02/09/98 2,550
County of Broward Housing
Finance Authority Revenue VRDN
Sanctuary Park Apts Multifamily
Project (PNC LOC)
1,660 3.900 12/01/97 1,660
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
County of Dade School District
GO VRDN, Series 1994 BTP-66
(MBIA Insured)
<S> <C> <C> <C>
$ 5,535 4.050% 12/07/97 $ 5,535
County of Dade Solid Waste
System Revenue Bond BAN
5,000 4.750 09/01/98 5,019
County of Orange Health
Facilities Authority VRDN,
Mayflower Retirement Community
Project (Rabobank Group LOC)
2,000 4.000 12/07/97 2,000
County of Orange Housing Finance
Authority VRDN, Citicorp Eagle
Trust Series 1987-A
(GNMA Securities Colld.)
5,000 3.990 12/07/97 5,000
Florida State Board of Education
Capital Outlay Board VRDN,
Series B, BTP-52 ADP
5,000 4.050 12/07/97 5,000
Florida State Board of Education
VRDN, Series 1994 E, Eagle
Trust No. 940901
15,500 4.040 12/07/97 15,500
Florida State Board of Education
VRDN, Series 1991 B, BTP 233
(U.S. Govt Secs. Colld.)
4,000 3.800 12/08/97 4,000
--------
46,264
--------
GEORGIA--5.8%
County of Appling Development
Authority PCR VRDN, Georgia
Power Co. Plant Hatch Project
1997 (Georgia Power Gtd.)
1,500 3.850 12/01/97 1,500
County of DeKalb Development
Authority PCR VRDN, Series
1987, General Motors Project
(General Motors Corp. Gtd.)
2,000 3.950 12/07/97 2,000
County of Elbvert Development
Authority IDR VRDN, Series
1992, Allied-Signal Project
(FMC Corp. Gtd.)
2,430 4.000 12/07/97 2,430
County of Fulton Development
Authority IDR VRDN, General
Motors Project (General Motors
Corp. Gtd.)
2,100 3.950 12/07/97 2,100
County of Fulton Resident
Elderly Authority VRDN, St.
Anne's Terrace Project
(NationsBank South LOC)
2,600 4.050 12/07/97 2,600
County of Heard Development
Authority PCR VRDN, Georgia
Power Co. Plant Wansley Project
1997 (Georgia Power Co. Gtd.)
1,200 3.850 12/01/97 1,200
Metro Atlanta Rapid Transit
Authority Revenue VRDN, Series
A, BTP-58 (AMBAC Insured)
5,965 4.050 12/07/97 5,965
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
GEORGIA--Continued
State of Georgia GO VRDN,
Series 1993 F, 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
--------
33,730
--------
ILLINOIS--7.8%
City of Arlington Heights
Multifamily Housing VRDN,
Series 1997, Dunton Tower
Apartments Project (Heller
Financial LOC)
2,820 4.500 12/07/97 2,820
City of Chicago Board of
Education VRDN, BTP-239,
(AMBAC Insured)
9,320 4.150 04/08/98 9,320
City of Naperville IDR VRDN,
General Motors Project
(General Motors Corp. Gtd.)
1,480 3.950 12/07/97 1,480
City of Peoria IDR VRDN, Series
1997, Peoria Production Shop
Project (Bank One LOC)
3,000 4.050 12/07/97 3,000
Illinois Educational Facilities
Authority VRDN, Series 1995 A,
Lifelink Corp. Obligated Group
(American National Bank &
Trust LOC)
2,900 3.950 12/07/97 2,900
Illinois Educational Facilities
Authority VRDN, Series 1996,
The Art Institute of Chicago
Project
1,300 3.900 12/07/97 1,300
Illinois HDA TOB, Series 1987
B, Residential Mortgage
Program
1,520 3.750 02/01/98 1,520
Illinois HDA TOB, Series 1987
C, Residential Mortgage
Program
2,945 3.750 02/01/98 2,945
Illinois Health Facilities
Authority VRDN, Series 1995,
Healthcor Project (Fuji Bank
LOC)
5,950 4.450 12/07/97 5,950
Illinois Health Facilities
Authority CP, Series 1991,
Victory Health System Project
(FNB Chicago LOC)
4,400 3.750 01/30/98 4,400
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
--------
45,635
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
INDIANA--1.3%
City of Hammond Local Public
Improvement Bond, Series A-2
Advanced Funding Program
<S> <C> <C> <C>
$ 5,000 4.200% 01/08/98 $ 5,003
Indiana Health Facilities
Financial Authority Hospital
Revenue, Series E, Charity
Obligated Group
2,500 3.800 12/07/97 2,500
--------
7,503
--------
KANSAS--1.0%
City of LaCygne Environmental
Revenue VRDN, Series 1994 A
Kansas City Power & Light
Project (Kansas City Power &
Light Gtd.)
2,082 3.950 12/07/97 2,082
City of Topeka Temporary Notes,
Series A
3,800 4.000 07/15/98 3,802
--------
5,884
--------
KENTUCKY--2.5%
City of Danville Lease Revenue
CP, Municipal Pooled Lease
Program (PNC Bank LOC)
3,000 3.900 02/10/98 3,000
City of Mayfield Lease Revenue
VRDN, Series 1996, Kentucky
League of Cities Pooled
Project (PNC Bank LOC)
1,700 4.150 12/07/97 1,700
Kentucky Interlocal School
Transportation Association
TRAN
10,000 4.090 06/30/98 10,002
--------
14,702
--------
LOUISIANA--2.3%
Louisiana Public Facilities
Authority PCR VRDN, Series
1992 Allied-Signal Project
(FMC Corp. Gtd.)
7,915 4.000 12/07/97 7,915
Parish of Caddo IDR VRDN,
General Motors Project
(General Motors Corp. Gtd.)
3,800 3.950 12/07/97 3,800
Parish of West Baton Rouge
District #3 PCR CP, Dow
Chemical Project (Dow Chemical
Gtd.)
1,900 3.750 12/10/97 1,900
--------
13,615
--------
MARYLAND--2.6%
City of Baltimore IDA VRDN,
Series 1986, Capital
Acquisition Program (Dai-Ichi
Kangyo Bank LOC)
7,300 4.250 12/07/97 7,300
Maryland State Community
Development Administration,
Series 1993, PT-12, Merrill P-
Floats (Maryland Community
Development Authority)
3,899 3.950 12/01/97 3,899
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
Maryland State Economic
Development Authority VRDN,
Series 1995 (NationsBank LOC)
<S> <C> <C> <C>
$ 2,400 4.050% 12/07/97 $ 2,400
Maryland State Health & Higher
Education Facilities Authority
VRDN, Series A, Helix Health,
Inc. (NationsBank LOC)
1,660 4.050 12/07/97 1,660
--------
15,259
--------
MASSACHUSETTS--1.0%
Massachusetts Municipal
Electric Co. VRDN,
Series 1994 B, BTP-67 (MBIA
Insured)
5,760 4.050 12/07/97 5,760
--------
MICHIGAN--1.5%
City of Detroit School District
State School Aid Notes, Series
1997 (Detroit School District
Gtd.)
3,000 4.500 05/01/98 3,007
Michigan State Strategic Fund
IDR VRDN, Allied-Signal
Project (FMC Corp. Gtd.)
2,500 3.950 12/07/97 2,500
State of Michigan TRAN, Series
1997 B
3,000 4.500 07/02/98 3,011
--------
8,518
--------
MINNESOTA--0.4%
City of St. Paul HDA VRDN,
Series A, Science Museum of
Minnesota Project (US Bank NA
LOC)
2,300 3.850 12/07/97 2,300
--------
MISSISSIPPI--0.3%
County of Perry PCR VRDN,
Series 1992, Leaf River Forest
Project (Wachovia Bank LOC)
1,800 3.900 12/01/97 1,800
--------
MISSOURI--2.3%
City of St. Louis TRAN, Series
1997
5,400 4.500 06/30/98 5,420
County of St. Louis IDA VRDN,
Friendship Village West
Community Project (LaSalle
National Bank LOC)
2,600 4.000 12/07/97 2,600
County of St. Louis IDA VRDN,
Merrill P-Floats, Series PA-
120, South Point Apartments
Project (Rabobank Group LOC)
2,975 4.100 12/07/97 2,975
Missouri Higher Education Loan
Authority VRDN, Series 1990 A
(National Westminster Bank
LOC)
2,800 4.000 12/07/97 2,800
--------
13,795
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
NEVADA--1.5%
County of Clark School District
GO VRDN, Citicorp Eagle Trust
No. 962804 (FGIC Insured)
<S> <C> <C> <C>
$ 2,900 3.990% 12/07/97 $ 2,900
State of Nevada GO VRDN, Series
1997 SGB31 (FGIC Insured)
5,800 4.000 12/07/97 5,800
--------
8,700
--------
NEW YORK--5.1%
City of New York GO, Series
1992 A, Citicorp TOB CR-16
(FSA Insured)
10,100 3.800 02/15/98 10,100
City of New York RAN, Series 26
LB Trust Receipts (Societe
Generale LOC)
7,100 4.150 12/01/97 7,100
City of New York Municipal
Water Finance Authority VRDN
(MBIA Insured)
3,800 3.940 12/07/97 3,800
Marine Midland Premium Loan
Trust VRDN COP, Series 1991 B
(Hong Kong & Shanghai Banking
Corp. LOC)
1,381 4.050 12/07/97 1,381
New York State Environment
Facilities Corp. PCR VRDN,
Eagle Trust No. 943204 (FSA
Insured)
5,800 3.990 12/07/97 5,800
Pooled VRDN P-Floats, Series
PPT2
1,515 4.000 12/01/97 1,515
--------
29,696
--------
NORTH CAROLINA--0.8%
County of Buncombe PCR IDR
VRDN, Series 1996, Cooper
Industries, Inc. Project
(Cooper Industries Gtd.)
3,200 4.050 12/07/97 3,200
County of Wake Industrial
Pollution Finance Authority
PCR VRDN, Series 1985 C,
Carolina Power & Light Project
(Sumitomo Bank Ltd. LOC)
1,400 4.350 12/07/97 1,400
--------
4,600
--------
OHIO--5.3%
County of Cuyahoga Hospital
VRDN, Series C, The Cleveland
Clinic Project (Bank of
America LOC)
1,000 3.850 12/07/97 1,000
Red Roof Inns Mortgage Bond
Trust VRDN (National City Bank
LOC)
3,339 3.900 12/15/97 3,339
State of Ohio Air Quality
Development Authority CP,
Series A, Pollution Control-
Duquesne Electric Project
(Union Bank of Switzerland
LOC)
4,000 3.950 07/10/98 4,000
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
OHIO--Continued
State of Ohio Environmental
Improvement Authority PCR VRDN
Series 1986, USX Corp. Project
(Sanwa Bank LOC)
<S> <C> <C> <C>
$ 6,000 4.200% 12/07/97 $ 6,000
State of Ohio Higher Education
Capital Facilities VRDN,
Series 1990 A, BTP-29 (MBIA
Insured)
3,000 4.000 12/07/97 3,000
State of Ohio Higher Education
Capital Facilities VRDN,
Series 1994 A, BTP-69 (AMBAC
Insured)
8,545 4.050 12/07/97 8,545
State of Ohio Water Development
Authority PCR VRDN, Phillip
Morris Cos. Project (Phillip
Morris Companies, Inc. LOC)
5,000 4.000 12/07/97 5,000
--------
30,884
--------
OKLAHOMA--3.0%
City of Tulsa Airports
Improvement VRDN, Series B-2
(MBIA Insured)
9,390 3.990 12/07/97 9,390
State of Oklahoma Water
Resources Board, Series 1994
A, State Loan Program
8,000 3.750 03/02/98 8,000
--------
17,390
--------
OREGON--0.9%
City of Portland Sewer System,
Series A (FGIC Insured)
5,400 4.000 12/07/97 5,400
--------
PENNSYLVANIA--4.6%
City of Philadelphia Authority
IDR, Series 1988, Franklin
Institute Project (PNC Bank
LOC)
2,800 4.000 12/07/97 2,800
City of Philadelphia School
District TRAN
(Commerzbank LOC)
10,000 4.500 06/30/98 10,031
County of Allegheny Hospital
Development Authority VRDN,
Series B-2, Presbyterian
University Hospital Project
(PNC Bank LOC)
1,000 3.850 12/01/97 1,000
County of Allegheny IDA VRDN,
Series A, Sewickley Academy
Project (PNC Bank LOC)
3,000 4.050 12/07/97 3,000
County of Luzerne TRAN, Series
1997
4,500 3.840 12/31/97 4,500
County of Warren Hospital
Authority VRDN, Series 1994 B
(PNC Bank LOC)
1,000 4.000 12/07/97 1,000
County of Washington Hospital
Authority VRDN,
Series B1-D, Eye and Ear
Hospital (PNC Bank LOC)
1,025 3.850 12/01/97 1,025
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
County of Washington Hospital
Authority VRDN,
Series B1-E, Eye & Ear
Hospital (PNC Bank LOC)
<S> <C> <C> <C>
$ 850 3.850% 12/01/97 $ 850
State of Pennsylvania Higher
Education Facilities Authority
Series I (AMBAC Insured)
3,000 4.500 11/01/98 3,017
--------
27,223
--------
SOUTH CAROLINA--0.9%
County of Lexington IDR VRDN,
Series 1992, Allied-Signal
Project (FMC Corp. Gtd.)
800 4.000 12/07/97 800
County of Lexington IDR VRDN,
Series 1992 A,
Allied-Signal Project (FMC
Corp. Gtd.)
1,880 4.000 12/07/97 1,880
University of South Carolina
Athletics Facility Revenue BAN
2,550 4.000 02/26/98 2,552
--------
5,232
--------
TENNESSEE--2.4%
City of Memphis GO VRDN, Series
1996 Soc Gen
Series SGB-23
5,000 4.000 12/07/97 5,000
County of Montgomery Public
Building Authority Adjustable
Loan Pool, Series 1996
(NationsBank LOC)
4,960 4.050 12/07/97 4,960
County of Shelby GO, Series B,
BTP-216
4,000 3.900 01/15/98 4,000
--------
13,960
--------
TEXAS--10.1%
City of Austin School District
Building and Refunding VRDN,
Series ML SG, Series SG-68
(Permanent School Fund of
Texas Gtd.)
4,900 4.050 12/07/97 4,900
City of Bastrop Independent
School District GO VRDN,
Series 1997, Series SGB 37
(Permanent School Fund of
Texas Gtd.)
6,500 4.000 12/07/97 6,500
City of Dallas-Ft Worth Airport
Revenue Refunding VRDN, Series
1995 SG, Series SGB-5 (FGIC
Insured)
6,600 4.000 12/07/97 6,600
City of Denton Independent
School District GO, Series B
(Permanent School Fund of
Texas Gtd.)
6,000 3.900 08/15/98 6,000
City of North Harris Montgomery
Community College GO, Series
1997 (FGIC Insured)
5,000 3.890 01/15/98 5,001
City of San Antonio Electric
and Gas System Revenue,
Series ML SG, Series SG-105
10,000 4.050 12/07/97 10,000
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------------------------------------------------
Principal Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------------
County of Bexar Multifamily
Housing Finance Authority
VRDN, Series 1988 A,
Creighton's Mill Development
Project (New England Mutual
Gtd.)
<S> <C> <C> <C>
$ 2,600 4.000% 12/07/97 $ 2,600
County of Harris Toll Road
Unlimited Tax Revenue VRDN,
Series 1994 A, Citicorp Eagle
Trust No. 954302
5,500 4.040 12/07/97 5,500
Port Development Corp. Marine
Terminal IDR CP, Series 1985
A, Mitsui & Co. Project
(Industrial Bank of Japan LOC)
7,250 3.800 12/08/97 7,250
State of Texas TRAN, Series
1997 A
5,000 4.750 08/31/98 5,033
--------
59,384
--------
VIRGINIA--6.4%
City of Norfolk GO VRDN, Eagle
Trust No. 944601
14,800 4.040 12/07/97 14,800
City of Richmond Redevelopment
and Housing Authority VRDN,
Series 1995 A, Old Manchester
Project (Wachovia Bank of
North Carolina LOC)
2,000 4.050 12/07/97 2,000
State of Virginia GO VRDN,
Series 1994, Citicorp Eagle
Trust No. 954601
7,000 4.040 12/07/97 7,000
State of Virginia Public School
Authority Revenue Bond
7,565 4.100 04/01/98 7,571
Town of Louisa IDA VRDN, Series
1995 (NationsBank LOC)
1,400 4.050 12/07/97 1,400
Town of Louisa PCR CP, Series
1987 (Virginia Electric Power
Co. Gtd.)
4,700 3.900 02/10/98 4,700
--------
37,471
--------
WASHINGTON--3.5%
City of Kent Economic
Development Corp. IDR VRDN,
Associated Grocers Project
(Bank of America LOC)
3,800 4.776 12/07/97 3,800
Port of Anacortes IDA IDR CP,
Texaco Project (Texaco, Inc.
Gtd.)
9,500 3.750 12/03/97 9,500
Washington State GO VRDN,
Smith-Barney Soc Gen, Series
1993 B, SGB-13
6,950 4.000 12/07/97 6,950
--------
20,250
--------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------------------------------------------------
Principal
Amount/ Maturity Amortized
Shares Rate Date Cost/Value
- -------------------------------------------------------------------------------------------------
WISCONSIN--1.9%
City of Delavan Darien School
District BAN
<S> <C> <C> <C>
$ 3,595 4.150% 04/15/98 $ 3,598
City of Madison GO, Series A
2,200 5.000 05/01/98 2,209
City of Milwaukee RAN, Series A
5,600 4.250 02/19/98 5,607
--------
11,414
--------
WYOMING--0.4%
City of Green River PCR VRDN
Allied-Signal Project (FMC
Corp. Gtd.)
2,225 4.000 12/07/97 2,225
- -------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $547,007
- -------------------------------------------------------------------------------------------------
OTHER INVESTMENTS--0.9%
AIM Tax Free Money Market Fund
105 -- -- $ 105
Dreyfus Tax Exempt Cash
Management Fund
400 -- -- 400
Federated Tax-Free Trust Money
Market Fund #15
3,312 -- -- 3,312
Federated Tax-Free Trust Money
Market Fund #73
819 -- -- 819
Provident Municipal Fund
437 -- -- 437
</TABLE>
- --------------------------------------------------------------------------------
TOTAL OTHER INVESTMENTS $ 5,073
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--94.3% $552,080
- --------------------------------------------------------------------------------
Other assets, less liabilities--5.7% 33,079
- --------------------------------------------------------------------------------
NET ASSETS--100.0% $585,159
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1997
(All amounts in thousands, except net asset value per unit)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $3,660,939 $ 611,633 $1,243,104 $552,080
Repurchase agreements, at cost 350,000 450,000 -- --
Cash 1 -- -- --
Receivables:
Interest 18,948 4,933 3,865 6,550
Fund units sold 298,254 23,280 9,016 24,442
Investment securities sold -- -- -- 11,025
Administrator 107 24 90 23
Other assets 49 31 15 14
- -------------------------------------------------------------------------------
TOTAL ASSETS 4,328,298 1,089,901 1,256,090 594,134
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 368,806 33,418 10,893 6,948
Distributions to unitholders 16,646 4,734 5,495 1,795
Accrued expenses:
Advisory fees 771 224 102 127
Administration fees 308 89 102 51
Custodian fees 35 11 12 7
Transfer agent fees 3 1 -- 1
Other liabilities 143 23 93 46
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 386,712 38,500 16,697 8,975
- -------------------------------------------------------------------------------
NET ASSETS $3,941,586 $1,051,401 $1,239,393 $585,159
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $3,942,953 $1,051,494 $1,239,391 $584,991
Accumulated net realized gains
(losses) on investment transac-
tions (1,367) (93) 2 168
- -------------------------------------------------------------------------------
NET ASSETS $3,941,586 $1,051,401 $1,239,393 $585,159
- -------------------------------------------------------------------------------
Total units outstanding (no par
value), unlimited units autho-
rized 3,942,953 1,051,494 1,239,391 584,991
- -------------------------------------------------------------------------------
Net asset value, offering and
redemption price per unit $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $202,224 $71,708 $56,010 $25,872
- ------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 8,945 3,243 2,546 1,731
Administration fees 3,082 1,208 1,048 749
Custodian fees 412 140 98 101
Professional fees 136 46 38 47
Transfer agent fees 127 35 30 22
Registration fees 103 50 101 26
Trustee fees and expenses 80 30 23 22
Other 141 59 47 37
- ------------------------------------------------------------------------------
TOTAL EXPENSES 13,026 4,811 3,931 2,735
Less: Voluntary waivers of in-
vestment advisory fees -- -- (1,528) --
Less: Expenses reimbursable by
Administrator (478) (263) (360) (306)
- ------------------------------------------------------------------------------
Net expenses 12,548 4,548 2,043 2,429
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 189,676 67,160 53,967 23,443
Net realized gains on investment
transactions 207 212 78 27
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $189,883 $67,372 $54,045 $23,470
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1997 and 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 $189,676 $162,308 $67,160 $53,208
Net realized gains on
investment transactions 207 327 212 133
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 189,883 162,635 67,372 53,341
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment income (189,676) (162,308) (67,160) (53,208)
- -------------------------------------------------------------------------------
Total distributions to
unitholders (189,676) (162,308) (67,160) (53,208)
- -------------------------------------------------------------------------------
UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from the sale of
units 49,976,344 42,285,142 16,517,258 12,329,359
Reinvested distributions 2,169 860 580 --
Cost of units redeemed (49,216,663) (41,717,147) (16,735,164) (11,911,641)
- -------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
unit transactions 761,850 568,855 (217,326) 417,718
- -------------------------------------------------------------------------------
Net increase (decrease) 762,057 569,182 (217,114) 417,851
Net assets--beginning of
year 3,179,529 2,610,347 1,268,515 850,664
- -------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $3,941,586 $3,179,529 $1,051,401 $1,268,515
- -------------------------------------------------------------------------------
<CAPTION>
Government Select
Portfolio Tax-Exempt Portfolio
------------------------ ------------------------
1997 1996 1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $53,967 $40,087 $23,443 $25,061
Net realized gains on
investment transactions 78 97 27 102
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 54,045 40,184 23,470 25,163
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment income (53,967) (40,087) (23,443) (25,061)
- -------------------------------------------------------------------------------
Total distributions to
unitholders (53,967) (40,087) (23,443) (25,061)
- -------------------------------------------------------------------------------
UNIT TRANSACTIONS (AT
$1.00 PER UNIT):
Proceeds from the sale of
units 6,143,005 4,712,236 5,626,217 5,526,968
Reinvested distributions 4,952 963 172 126
Cost of units redeemed (5,744,991) (4,562,089) (5,679,764) (5,692,419)
- -------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
unit transactions 402,966 151,110 (53,375) (165,325)
- -------------------------------------------------------------------------------
Net increase (decrease) 403,044 151,207 (53,348) (165,223)
Net assets--beginning of
year 836,349 685,142 638,507 803,730
- -------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $1,239,393 $836,349 $585,159 $638,507
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
DIVERSIFIED ASSETS PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 5.42% 5.30% 5.78%(b) 3.92% 3.00% 3.80% 6.19% 8.01% 8.98%
Ratio to average
net assets of:
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 0.36% 0.34% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36% 0.37%
Net investment
income, net of
waivers and
reimbursements 5.30% 5.18% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01% 8.98%
Net investment
income, before
waivers and
reimbursements 5.29% 5.18% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00% 8.98%
Net assets at end
of year (in thou-
sands) $3,941,586 $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
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $1.00
INCOME FROM IN-
VESTMENT OPERA-
TIONS:
Net investment
income 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF YEAR $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 7.15%
Ratio to average
net assets of:
Expenses, net of
waivers and re-
imbursements 0.39%
Expenses, before
waivers and re-
imbursements 0.39%
Net investment
income, net of
waivers and
reimbursements 7.15%
Net investment
income, before
waivers and
reimbursements 7.15%
Net assets at end
of year (in thou-
sands) $1,528,203
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at net asset value at the end of the year.
(b) Total return for the year ended November 30, 1995 would have been 5.73%
absent the effect of a capital contribution equivalent to $.0005 per
share received from Northern Trust Corporation.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990 1989
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BE-
GINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVEST-
MENT OPERATIONS:
Net investment in-
come 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment in-
come (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions
to unitholders (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END
OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 5.31% 5.20% 5.64%(b) 3.78% 2.91% 3.91% 6.18% 7.89% 8.63%
Ratio to average net
assets of:
Expenses, net of
waivers and reim-
bursements 0.35% 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37% 0.50%
Expenses, before
waivers and reim-
bursements 0.37% 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46% 0.50%
Net investment in-
come, net of waiv-
ers and reimburse-
ments 5.18% 5.08% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88% 8.63%
Net investment in-
come, before waiv-
ers and reimburse-
ments 5.16% 5.05% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79% 8.63%
Net assets at end of
year (in thousands) $1,051,401 $1,268,515 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720 $423,517
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1988
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BE-
GINNING OF YEAR $1.00
INCOME FROM INVEST-
MENT OPERATIONS:
Net investment in-
come 0.07
- --------------------------------------------------------------------------------------------------------------------------
Total income from
investment opera-
tions 0.07
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment in-
come (0.07)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions
to unitholders (0.07)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END
OF YEAR $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 6.83%
Ratio to average net
assets of:
Expenses, net of
waivers and reim-
bursements 0.54%
Expenses, before
waivers and reim-
bursements 0.55%
Net investment in-
come, net of waiv-
ers and reimburse-
ments 6.83%
Net investment in-
come, before waiv-
ers and reimburse-
ments 6.82%
Net assets at end of
year (in thousands) $335,301
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year.
(b) Total return for the year ended November 30, 1995 would have been 5.53%
absent the effect of a capital contribution equivalent to $.0011 per share
received from Northern Trust Corporation.
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
GOVERNMENT SELECT PORTFOLIO
<TABLE>
<CAPTION>
1997 1996 1995 1994 1993 1992 1991 1990(a)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.05 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.05) (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------
Total return (b) 5.41% 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 5.30% 5.19% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and
reimbursements 5.11% 4.99% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
year (in thousands) $1,239,393 $836,349 $685,142 $493,718 $386,507 $264,756 $160,750 $44,215
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period November 7, 1990 (commencement of operations) through
November 30, 1990.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at net asset value at the end of the year.
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 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, BEGIN-
NING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05
- --------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 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 (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.03) (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Total return (a) 3.44% 3.37% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04% 4.92%
Ratio to average net
assets of:
Expenses, net of waiv-
ers and reimbursements 0.35% 0.35% 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49% 0.48%
Expenses, before waiv-
ers and reimbursements 0.39% 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 3.38% 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 3.34% 3.27% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03% 4.92%
Net assets at end of
year (in thousands) $585,159 $638,507 $803,730 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215 $529,680
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete
redemption of the investment at net asset value at the end of the year.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
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 November 30, 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, 1997, there were capital loss carryforwards for U.S. federal
tax purposes of approximately $1,367,000 and $93,000 for the Diversified
Assets and Government 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 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.
23
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
Northern has undertaken to credit or arrange for the crediting of such
distributions to each unitholder's account with Northern, its affiliates or
its correspondents.
3. ADVISORY, TRANSFER AGENCY, CUSTODIAN AND OTHER AGREEMENTS
As compensation for the services rendered as investment adviser, including the
assumption by Northern of the expenses related thereto, Northern is entitled
to a fee, computed daily and payable monthly, at an annual rate of .25% of
each Portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10%
per annum. The effect of this waiver by Northern for the year ended November
30, 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 (as amended May 1, 1997) 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, 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 year ended November 30, 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 year ended November 30, 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 year ended November
30, 1997.
24
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Unitholders and Trustees of
The Benchmark Funds
Money Market Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Diversified Assets,
Government, Government Select and Tax-Exempt Portfolios, comprising the Money
Market Portfolios of The Benchmark Funds, as of November 30, 1997, and the
related statements of operations for the year then ended and changes in net
assets for each of the two years in the period then ended and financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included verification of the
investments owned at November 30, 1997 by physical examination of the
securities held by the custodian and by correspondence with central
depositories and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Diversified Assets, Government, Government Select and Tax-Exempt Portfolios,
comprising the Money Market Portfolios of The Benchmark Funds, at November 30,
1997, the results of their operations for the year then ended and the changes
in their net assets for each of the two years in the period then ended and
financial highlights for the periods indicated therein, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 16, 1998
25
<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
Richard Gordon Cline
Edward J. Condon, Jr.
John W. English
Sandra Polk Guthman
Frederick T. Kelsey
Richard P. Strubel
Officers
Frank Polefrone, President
James Fitzpatrick, Vice President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Scott M. Gilman, Treasurer
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Deborah Farrell, Assistant Secretary
Steven Hartstein, Assistant Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zondorak, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Dr.
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Annual Report is authorized for distribution to prospective investors
only when preceded or accompanied by a Prospectus which contains facts
concerning the objectives and policies, management expenses and other
information.
<PAGE>
The
Benchmark Funds
Fixed Income
and
Equity
Portfolios
Annual Report
November 30, 1997
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Management's Discussion of Portfolio Performance........................... 2
Voting Results of Special Meeting of Unitholders........................... 20
Fixed Income Portfolios
Statements of Investments
Bond Portfolio......................................................... 21
Intermediate Bond Portfolio............................................ 23
International Bond Portfolio........................................... 24
Short-Intermediate Bond Portfolio...................................... 25
U.S. Government Securities Portfolio................................... 27
U.S. Treasury Index Portfolio.......................................... 28
Statements of Assets and Liabilities..................................... 29
Statements of Operations................................................. 30
Statements of Changes in Net Assets...................................... 31
Financial Highlights..................................................... 33
Equity Portfolios
Statements of Investments
Balanced Portfolio..................................................... 39
Diversified Growth Portfolio........................................... 41
Equity Index Portfolio................................................. 43
Focused Growth Portfolio............................................... 49
International Equity Index Portfolio................................... 51
International Growth Portfolio......................................... 62
Small Company Index Portfolio.......................................... 64
Statements of Assets and Liabilities..................................... 84
Statements of Operations................................................. 85
Statements of Changes in Net Assets...................................... 86
Financial Highlights..................................................... 88
Notes to the Financial Statements.......................................... 95
Report of Independent Auditors............................................. 101
</TABLE>
- --------------------------------------------------------------------------------
1
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
BENCHMARK BOND PORTFOLIO
Overall, interest rates changed only marginally during the fiscal year, even
though the first half of the year witnessed a meaningful rise in rates, and the
second half saw an equally meaningful decline. Similarly, non-Treasury spreads
generally tightened early in the year while reversing course later. Both
patterns--but the interest rate move in particular--reflected the conflicting
signals given by cyclical versus secular economic forces. An economy growing
faster than what many consider trend growth, and the inflation and Federal
Reserve tightening fears it engendered, captured investors' attention early and
resulted in increasing rates. Positive secular developments and the resulting
declines in actual measured inflation and the fiscal deficit, among other
positive trends, eventually eased cyclical fears and pushed rates down. The
turmoil in Southeast Asia late in the period added to the positive backdrop. In
reality, this disturbance can be viewed as an effect of the secular
developments as opposed to a cause of the market rally.
For the year, the flattening of the yield curve, the outperformance of the
mortgage sector and disparate sector performance in a generally flat corporate
sector drove the fixed-income market's relative performance. The Portfolio
posted solid relative returns primarily on good securities and sector selection
decisions.
As we begin the new fiscal year, the Portfolio is positioned with moderately
greater interest rate sensitivity than its benchmark, and it is overweighted in
non-Treasury sectors. A calendar-year-end widening in asset-backed security
spreads has led to increased exposure in that sector. The Portfolio continues
to maintain a high quality profile.
MARK J. WIRTH
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK BOND PORTFOLIO
VS. THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
Class A Units
Bond Portfolio Lehman Brother
<S> <C> <C>
- -------------------------------------
1/11/93 $10,000 $10,000
- -------------------------------------
11/30/93 $11,060 $11,052
- -------------------------------------
11/30/94 $10,613 $10,641
- -------------------------------------
11/30/95 $12,900 $12,587
- -------------------------------------
11/30/96 $13,619 $13,291
- -------------------------------------
11/30/97 $14,732 $14,275
- -------------------------------------
</TABLE>
Past performance is not predictive of future performance.
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class A Corporate
November 30, 1997: Units Bond Index
<S> <C> <C>
One Year: 8.17% 7.41%
- ----------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 8.24% 7.55%
</TABLE>
Class C Units
<TABLE>
<CAPTION>
Bond Portfolio Lehman Brother
<S> <C> <C>
- -------------------------------------
7/3/95 $10,000 $10,000
- -------------------------------------
11/30/95 $10,608 $10,499
- -------------------------------------
11/30/96 $11,174 $11,086
- -------------------------------------
11/30/97 $12,054 $11,907
- -------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class C Corporate
November 30, 1997: Units Bond Index
<S> <C> <C>
One Year: 7.88% 7.41%
- ----------------------------------------------------------------------------------------
Since Commencement on 7/3/95: 8.05% 7.49%
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK BOND PORTFOLIO
VS. THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
Class D Units
Bond Portfolio Lehman Brothers
- ------------------------------------------
<S> <C> <C>
9/14/94 $10,000 $10,000
- ------------------------------------------
11/30/94 $ 9,906 $9,891
- ------------------------------------------
11/30/95 $11,992 $11,700
- ------------------------------------------
11/30/96 $12,612 $12,354
- ------------------------------------------
11/30/97 $13,588 $13,269
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class D Corporate
November 30, 1997: Units Bond Index
<S> <C> <C>
One Year: 7.74% 7.41%
- ----------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 10.01% 9.20%
</TABLE>
3
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
BENCHMARK INTERMEDIATE BOND PORTFOLIO
Despite the continuing crisis in Southeast Asia, U.S. stock prices firmed
during November 1997 as foreign countries' restructuring plans and
International Monetary Fund aid came into focus. While this support did not
flow as strongly into the corporate and mortgage bond market, it at least
halted the underperformance that these sectors experienced in October 1997.
This movement caused U.S. corporate bonds to end the year virtually unchanged
relative to Treasury bonds. On the other hand, mortgage-backed securities
performed strongly based on a year-long decline in volatility.
The Intermediate Bond Portfolio commenced operations on August 1, 1997, with
initial investments in Treasury securities and some select positions in
corporate, mortgage and asset-backed securities. Given the recent lag in spread
sector prices, the Portfolio did experience some modest underperformance due to
its overweighting in corporate and mortgage bonds. Based on current interest
rate and spread levels, these markets look more attractive, and we expect to
hold these positions going forward.
STEVE SCHAFER
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK INTERMEDIATE
BOND PORTFOLIO VS. THE LEHMAN BROTHERS INTERM. GOV'T/CORP INDEX
[CHART APPEARS HERE]
Class A Units
-----------------------------------------
Intermediate Lehman Brothers Interm.
Bond Portfolio Gov't/Corp. Index
-------------- -----------------------
8/1/97 $10,000 $10,000
11/30/97 $10,117 $10,200
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Return** Lehm. Int.
For Period Ended Class A Govt/Corp
November 30, 1997: Units Index
<S> <C> <C>
Since Commencement on 8/1/97: 1.17% 2.00%
</TABLE>
**Average Annual Total Return is not annualized for periods less than one year.
4
<PAGE>
- --------------------------------------------------------------------------------
Benchmark International Bond Portfolio
The fiscal year's global financial environment was marked by certain events
that had negative implications for the Portfolio's performance. First, there
was a material increase in the price of longer-dated, high-quality bonds,
primarily due to improved inflation and weaker-than-expected global growth. The
Asian financial crisis further benefited bonds, as next year's growth and
inflation expectations were revised lower. Second, the dollar appreciated
sharply against major currencies due to strong domestic fundamentals and the
global flight to quality/liquidity. The greenback gained more than 10% versus
both the yen and the Deutschemark. The notable exception to the trend was the
British pound, which was virtually unchanged versus the dollar.
Given the Portfolio's international status, the majority of its market
exposure was to both foreign bonds and currencies. As such, the past year's
environment was by no means ideal. Although participants benefited from a rise
in bond prices, the dollar's sharp appreciation more than offset these gains
for U.S.-based investors. Of some consolation was the Portfolio's
outperformance versus its benchmark, which was largely due to an underweighted
position in Japan and an overweighted position in the United Kingdom.
As the new fiscal year begins, we retain the Portfolio's interest rate
posture, given our constructive outlook for global inflation and generally
attractive real yields. We also maintain a strong bias toward very high-quality
issuers. Because the Portfolio is invested in non-U.S. bonds and currencies,
returns continue to be strongly influenced by the direction of the dollar.
Michael Lannan
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN BENCHMARK
INTERNATIONAL BOND PORTFOLIO VS.
THE J.P. MORGAN NON-U.S. GOVERNMENT
BOND INDEX
<TABLE>
<CAPTION>
[CHART APPEARS HERE]
Class A Units
International Bond Portfolio J.P. Morgan Non-U.S.Government Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
3/25/94 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/94 $10,403 $10,521
- --------------------------------------------------------------------------------
11/30/95 $12,296 $12,589
- --------------------------------------------------------------------------------
11/30/96 $13,461 $13,487
- --------------------------------------------------------------------------------
11/30/97 $13,055 $13,022
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
J.P. Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class A Government
November 30, 1997: Units Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year: -3.02% -3.45%
- --------------------------------------------------------------------------------
Since Commencement on 3/28/94: 7.51% 7.43%
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
[CHART APPEARS HERE]
Class D Units
International Bond Portfolio J.P. Morgan Non-U.S.Government Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
11/20/95 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/95 $ 9,970 $ 9,912
- --------------------------------------------------------------------------------
11/30/96 $10,872 $10,619
- --------------------------------------------------------------------------------
11/30/97 $10,504 $10,253
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
J.P. Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class D Government
November 30, 1997: Units Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year: -3.38% -3.45%
- --------------------------------------------------------------------------------
Since Commencement on 11/20/95: 2.45% 1.24%
- --------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Benchmark Short-Intermediate Bond Portfolio
Overall, interest rates changed only marginally during the fiscal year, even
though the first half of the year witnessed a meaningful rise in rates, and the
second half saw an equally meaningful decline. Similarly, non-Treasury spreads
generally tightened early in the year while reversing course later. Both
patterns--but the interest rate move in particular--reflected the conflicting
signals given by cyclical versus secular economic forces. An economy growing
faster than what many consider trend growth, and the inflation and Federal
Reserve tightening fears it engendered, captured investors' attention early and
resulted in increasing rates. Positive secular developments and the resulting
declines in actual measured inflation and the fiscal deficit, among other
positive trends, eventually eased cyclical fears and pushed rates down. The
turmoil in Southeast Asia late in the period added to the positive backdrop. In
reality, this disturbance can be viewed as an effect of the secular
developments as opposed to a cause of the market rally.
For the year, the flattening of the yield curve, the outperformance of the
mortgage sector and disparate sector performance in a generally flat corporate
sector drove the fixed-income market's relative performance. The Portfolio
outperformed its benchmark before fees, though it slightly trailed on an after-
fee basis. With little net change in interest rates or spreads, the Portfolio
relied on a yield advantage from overweighting non-Treasury sectors to outpace
its benchmark.
As we begin the new fiscal year, the Portfolio is positioned with moderately
greater interest rate sensitivity than its benchmark, and it is overweighted in
non-Treasury sectors. A calendar-year-end widening in asset backed security
spreads has led to increased exposure in that sector. The Portfolio continues
to maintain a high quality profile.
Mark J. Wirth
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK
SHORT-INTERMEDIATE BOND PORTFOLIO VS. THE MERRILL LYNCH
1-5 CORPORATE/GOVERNMENT BOND INDEX
<TABLE>
<CAPTION>
[CHART APPEARS HERE]
Class A Units
Short-Intermediate Bond Portfolio Merrill Lynch 1-5 Corporate/Government
Index
- --------------------------------------------------------------------------------
<S> <C> <C>
1/11/93 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/93 $10,590 $10,641
- --------------------------------------------------------------------------------
11/30/94 $10,679 $10,596
- --------------------------------------------------------------------------------
11/30/95 $11,916 $11,893
- --------------------------------------------------------------------------------
11/30/96 $12,592 $12,582
- --------------------------------------------------------------------------------
11/30/97 $13,341 $13,348
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total 1-5 Corporate/
Returns For Periods Ended Class A Government
November 30, 1997: Units Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year: 5.95% 6.09%
- --------------------------------------------------------------------------------
Since Commencement on 1/11/93: 6.07% 6.08%
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
[CHART APPEARS HERE]
Class D Units
Short-Intermediate Bond Portfolio Merrill Lynch 1-5 Corporate/Government
Index
- --------------------------------------------------------------------------------
<S> <C> <C>
9/14/94 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/94 $ 9,970 $ 9,928
- --------------------------------------------------------------------------------
11/30/95 $11,076 $11,143
- --------------------------------------------------------------------------------
11/30/96 $11,654 $11,788
- --------------------------------------------------------------------------------
11/30/97 $12,300 $12,507
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total 1-5 Corporate/
Returns For Periods Ended Class D Government
November 30, 1997: Units Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year: 5.54% 6.09%
- --------------------------------------------------------------------------------
Since Commencement on 9/14/94: 6.65% 7.21%
- --------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
Benchmark U.S. Government Securities Portfolio
With the crisis in Southeast Asia continuing to spread during the final
months of fiscal 1997, the U.S. bond market remained a primary recipient of
investment capital. This demand allowed yields on short-term government bonds
to return to near their lows of the past fiscal year. Throughout the year, bond
yields increased by as much as 1.0% on fears that strong economic growth would
cause the Federal Reserve to tighten monetary policy.
However, moderately slower domestic growth coupled with investors' fears of a
world-wide financial meltdown caused the markets to re-evaluate the situation.
As foreign countries' restructuring plans and International Monetary Fund aid
came into focus, the need for any Federal Reserve action was delayed, and
currently no action is priced into the bond market over the next year. Five-
year government interest rates closed the fiscal year nearly unchanged in
yield, though they did trade within a range of 1.25% over the 12-month period.
On an absolute basis, this range-bound move in rates caused the return on
government-bond funds to consist primarily of interest income. In this
environment, maintaining additional portfolio yield in the form of callable
agencies or mortgage-backed securities was a rewarding strategy. Thus, our
modest overweight to mortgage-backed securities was a source of incremental
positive performance. The Portfolio's performance moved in step with its
benchmark, as the generous "real yields" currently available in the bond market
have kept us fully invested in bonds.
Steve Schafer
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK U.S. GOVERNMENT SECURITIES PORTFOLIO VS. THE
MERRILL LYNCH 1-5 GOVERNMENT INDEX
[CHART APPEARS HERE]
Class A Units
-----------------------------------------
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- -----------------
4/5/93 $10,000 $10,000
11/30/93 $10,300 $10,346
11/30/94 $10,241 $10,295
11/30/95 $11,386 $11,538
11/30/96 $11,972 $12,192
11/30/97 $12,682 $12,929
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class A 1-5 Government
November 30, 1997: Units Index
<S> <C> <C>
One Year: 5.93% 6.04%
- ------------------------------------------------------------------------------------------
Since Commencement on 4/5/93: 5.23% 5.67%
</TABLE>
[CHART APPEARS HERE]
Class C Units
-----------------------------------------
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- -----------------
12/29/95 $10,000 $10,000
11/30/96 $10,405 $10,476
11/30/97 $10,995 $11,109
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class C 1-5 Government
November 30, 1997: Units Index
<S> <C> <C>
One Year: 5.67% 6.04%
- ----------------------------------------------------------------------------------------
Since Commencement on 12/29/95: 5.05% 5.62%
</TABLE>
7
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Benchmark U.S. Government Securities Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK U.S. GOVERNMENT SECURITIES PORTFOLIO VS. THE
MERRILL LYNCH 1-5 GOVERNMENT INDEX
[CHART APPEARS HERE]
Class D Units
-----------------------------------------
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- -----------------
9/15/94 $10,000 $10,000
11/30/94 $ 9,910 $ 9,913
11/30/95 $10,966 $11,110
11/30/96 $11,490 $11,740
11/30/97 $12,123 $12,450
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class D 1-5 Government
November 30, 1997: Units Index
<S> <C> <C>
One Year: 5.52% 6.04%
- ------------------------------------------------------------------------------------------
Since Commencement on 9/15/94: 6.18% 7.07%
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
BENCHMARK U.S. TREASURY INDEX PORTFOLIO
During the fiscal year ended November 30, 1997, Treasury rates changed only
marginally, rising in the first part of the year and falling in the latter
part. Two forces counteracted each other: A fast growing economy created fears
of a Federal Reserve tightening, while declines in actual measured inflation
and the secular deficit pushed rates lower. The yield curve flattened during
the year.
As it seeks to do, the Benchmark U.S. Treasury Index Portfolio performed in
line with the Lehman Treasury Index. We will continue to pursue a passive
investment strategy by investing in securities that represent the Index. These
efforts seek to provide returns that closely track the returns of the Index.
RICHARD STECK
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK U.S. TREASURY
INDEX PORTFOLIO VS. THE LEHMAN BROTHERS TREASURY BOND INDEX
[CHART APPEARS HERE]
Class A Units
--------------------------------------
U.S. Treasury Lehman Brothers
Index Portfolio Treasury Bond Index
--------------- -------------------
1/11/93 $10,000 $10,000
11/30/93 $10,994 $11,019
11/30/94 $10,576 $10,625
11/30/95 $12,369 $12,473
11/30/96 $13,000 $13,127
11/30/97 $13,967 $14,088
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Lehman Brothers
Returns For Periods Ended Class A U.S. Treasury
November 30, 1997: Units Bond Index
<S> <C> <C>
One Year: 7.44% 7.32%
- ----------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 7.07% 7.26%
</TABLE>
[CHART APPEARS HERE]
Class D Units
--------------------------------------
U.S. Treasury Lehman Brothers
Index Portfolio Treasury Bond Index
--------------- -------------------
11/16/94 $10,000 $10,000
11/30/94 $10,037 $10,069
11/30/95 $11,687 $11,821
11/30/96 $12,239 $12,441
11/30/97 $13,099 $13,352
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Lehman Brothers
Returns For Periods Ended Class D U.S. Treasury
November 30, 1997: Units Bond Index
<S> <C> <C>
One Year: 7.03% 7.32%
- -----------------------------------------------------------------------------------------
Since Commencement on 11/16/94: 9.28% 9.97%
</TABLE>
9
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Benchmark Balanced Portfolio
The performance of the Benchmark Balanced Portfolio closely paralleled that of
its composite index for the fiscal year ending November 30, 1997. This was due
primarily to our positive stance on equities during the year as well as the
strong relative performance of both the equity and bond components of the
Portfolio.
During the first half of the fiscal year, the emphasis within the Portfolio's
equity component remained on large-capitalization, multi-national issues. These
stocks were among the market leaders. But, as the market broadened mid year, we
expanded our equity reach to include several smaller- to mid-sized growth
issues that exhibited strong earnings growth potential. We continue to focus on
these stocks while maintaining a relatively low risk profile in the entire
equity portfolio.
Bonds also contributed to our relative performance improvement. Throughout
the year, our slightly longer duration and our preference for corporate bonds
proved to be a successful strategy. As we enter a new fiscal year, this is a
strategy that we continue to implement.
Overall, our enhanced risk control measures, with respect to asset allocation
and equity and bond management, contributed positively to performance over the
past 12 months. As the markets continue to exhibit unprecedented volatility and
uncertainty, we feel our diligence in managing risk will serve us well, both on
an absolute and relative basis.
JON BRORSON
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN BENCHMARK BALANCED
PORTFOLIO VS. THE S&P 500 COMPOSITE
STOCK PRICE INDEX, THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CORPORATE
BOND INDEX AND THE COMPOSITE INDEX
[CHART APPEARS HERE]
Class A Units
<TABLE>
<CAPTION>
Lehman Brothers Intermediate Composite
Balanced Portfolio S&P 500 Government Corp Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/93 $10,312 $10,372 $10,195 $10,290
- --------------------------------------------------------------------------------
11/30/94 $ 9,821 $10,485 $10,009 $10,304
- --------------------------------------------------------------------------------
11/30/95 $11,807 $14,365 $11,462 $12,981
- --------------------------------------------------------------------------------
11/30/96 $13,468 $18,369 $12,130 $15,261
- --------------------------------------------------------------------------------
11/30/97 $15,797 $23,607 $12,897 $18,052
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual
Total Returns
For Periods Ended Class A S&P 500 Lehman Composite
November 30, 1997: Units Index Brothers Index*
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year: 17.29% 28.52% 6.33% 18.29%
- -----------------------------------------------------------------------------
Since Commencement
on 7/1/93: 10.89% 21.44% 5.92% 14.29%
- -----------------------------------------------------------------------------
</TABLE>
[CHART APPEARS HERE]
Class C Units
<TABLE>
<CAPTION>
Balanced Portfolio S&P 500 Composite Index Lehman Brothers
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/2/96 $10,000 $10,000 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/96 $11,272 $12,546 $11,582 $10,473
- --------------------------------------------------------------------------------
11/30/97 $13,188 $16,124 $13,701 $11,135
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual
Total Returns
For Periods Ended Class C S&P 500 Lehman Composite
November 30, 1997: Units Index Brothers Index*
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year: 17.00% 28.52% 6.33% 18.29%
- -----------------------------------------------------------------------------
Since Commencement
on 12/29/95: 15.47% 28.33% 5.77% 17.87%
- -----------------------------------------------------------------------------
</TABLE>
10
<PAGE>
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN BENCHMARK BALANCED
PORTFOLIO VS. THE S&P 500 COMPOSITE
STOCK PRICE INDEX, THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CORPORATE
BOND INDEX AND THE COMPOSITE INDEX
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
Balanced Portfolio Lehman Brothers S&P 500 Composite Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
2/20/96 $10,000 $10,000 $10,000 $10,000
- --------------------------------------------------------------------------------
11/30/96 $11,055 $10,455 $12,026 $11,227
- --------------------------------------------------------------------------------
11/30/97 $12,914 $11,116 $15,456 $13,281
- --------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future performance.
Average Annual
Total Returns
For Periods Ended Class D S&P 500 Lehman Composite
November 30, 1997: Units Index Brothers Index*
- -------------------------------------------------------------------
One Year: 16.82% 28.52% 6.33% 18.29%
- -------------------------------------------------------------------
Since Commencement
on 2/20/96: 15.47% 27.74% 6.13% 17.30%
- -------------------------------------------------------------------
*The Composite Index consists of 55%, 40% and 5% of the S&P 500, The Lehman
Brothers Intermediate Government/Corporate Bond Index and 91-Day Treasury
Bills, respectively.
11
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
BENCHMARK DIVERSIFIED GROWTH PORTFOLIO
The fiscal-year performance of the Benchmark Diversified Growth Portfolio was
very strong relative to other mutual funds in its peer group. The Portfolio's
performance lagged that of the broader market index for the period.
Earlier in the year, we favored large-capitalization issues, which clearly
were the market leaders. Investors seemed to disregard the high absolute and
relative premiums that were being paid for many of these issues, and they
forced prices up accordingly. Later, though, we began to slowly move away from
these issues. In their place we selectively added several more mid-sized growth
issues that the market had largely ignored to that point. The Portfolio still
has exposure to many large-cap stocks, but it's now tilted toward domestically
oriented mid-sized growth companies, which we feel are attractively priced on a
relative valuation basis.
Throughout the past year, we have been diligent in evaluating the individual
and portfolio risks associated with every investment we make. The performance
improvements we have made are due in part to this enhancement to our management
process. As the markets continue to exhibit unprecedented volatility and
uncertainty, we feel our diligence in managing risk will serve us well, both on
an absolute and relative basis.
JON BRORSON
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK DIVERSIFIED
GROWTH PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
[CHART APPEARS HERE]
Class A Units
---------------------------
Diversified S&P 500
Growth Portfolio Index
---------------- -------
1/11/93 $10,000 $10,000
11/30/93 $10,738 $11,041
11/30/94 $ 9,988 $11,161
11/30/95 $12,441 $15,291
11/30/96 $15,032 $19,554
11/30/97 $19,100 $25,130
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 27.06% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 14.15% 20.73%
</TABLE>
[CHART APPEARS HERE]
Class D Units
---------------------------
Diversified S&P 500
Growth Portfolio Index
---------------- -------
9/14/94 $10,000 $10,000
11/30/94 $ 9,486 $ 9,738
11/30/95 $11,781 $13,341
11/30/96 $14,183 $17,060
11/30/97 $17,956 $21,925
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 26.60% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 19.98% 27.67%
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
BENCHMARK EQUITY INDEX PORTFOLIO
Performance from retail, capital goods and financial stocks had the greatest
impact on the total return of the S&P 500 Index for the fiscal year ended
November 30, 1997. The Index returned 28.52% for the period, outpacing small-
capitalization stocks, as measured by the Russell 2000 Index, by more than 5.3
percentage points.
There were 30 additions and deletions to the Index during the 1997 fiscal
year. Some of the more notable changes included: the addition of State Street
following the completion of the merger between Nynex and Bell Atlantic; the
addition of Charles Schwab, which replaced Morgan Stanley; and the addition of
Health South Corp. in place of Boatman's Bancshares, which was acquired by
NationsBank.
The Fund's slight underperformance relative to the S&P 500 Index was due
primarily to expenses.
Going forward, we will continue to follow a passive strategy seeking to
provide returns that closely track those of the S&P 500 Index.
SUSAN FRENCH
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK EQUITY INDEX
PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
[CHART APPEARS HERE]
Class A Units
--------------------------
Equity S&P 500
Index Portfolio Index
--------------- -------
1/11/93 $10,000 $10,000
11/30/93 $11,088 $11,041
11/30/94 $11,104 $11,161
11/30/95 $15,168 $15,291
11/30/96 $19,344 $19,554
11/30/97 $24,747 $25,130
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 27.93% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 20.36% 20.73%
</TABLE>
[CHART APPEARS HERE]
Class C Units
--------------------------
Equity S&P 500
Index Portfolio Index
--------------- -------
9/28/95 $10,000 $10,000
11/30/95 $10,394 $10,402
11/30/96 $13,225 $13,302
11/30/97 $16,881 $17,095
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class C S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 27.64% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/28/95: 27.21% 28.03%
</TABLE>
13
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
BENCHMARK EQUITY INDEX PORTFOLIO--CONTINUED
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK EQUITY INDEX
PORTFOLIO VS. THE S&P 500 COMPOSITE STOCK PRICE INDEX
[CHART APPEARS HERE]
Class D Units
--------------------------
Equity
Index Portfolio S&P 500
--------------- -------
9/14/94 $10,000 $10,000
11/30/94 $ 9,732 $ 9,738
11/30/95 $13,255 $13,341
11/30/96 $16,860 $17,060
11/30/97 $21,488 $21,925
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1997: Units Index
- --------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 27.45% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 26.87% 27.67%
- --------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
Benchmark Focused Growth Portfolio
Most large-capitalization domestic equity indexes registered strong fiscal-year
gains. Surpassing the performance of the S&P 500 Index once again proved to be
a difficult task for most money managers. While the Focused Growth Portfolio
did fall short of the S&P 500 for the period, we are happy to report that we
have made significant progress in the Portfolio's performance relative to its
peer group, and we are confident this momentum can continue.
Throughout the year, we focused our attention on companies with a high degree
of earnings predictability. This is a theme that we believe will be even more
important in 1998, as earnings growth may become scarce, and higher relative
returns accrue to those companies that can deliver on their earnings forecasts.
In the first part of the fiscal year, companies with predictable earnings
flow generally were large, multi-national firms, and the securities of these
companies dominated the Portfolio. Recently, volatility in the international
markets and earnings uncertainties for companies with foreign exposure have
caused us to tilt the Portfolio toward domestic, mid-sized growth companies. On
a relative valuation basis, we feel that many of these issues are attractively
priced.
Throughout the year, we were diligent in evaluating the individual and
portfolio risks associated with every investment we made. The performance
improvements we have experienced are due in part to this management
enhancement. As the markets continue to exhibit unprecedented volatility and
uncertainty, we feel our diligence in managing risk will serve us well, both on
an absolute and relative basis.
Jon Brorson
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK FOCUSED GROWTH
PORTFOLIO VS. S&P 500 COMPOSITE STOCK PRICE INDEX
[CHART APPEARS HERE]
Class A Units
-------------------------
Focused Growth
Portfolio S&P 500
-------------- -------
7/1/93 $10,000 $10,000
11/30/93 $10,433 $10,372
11/30/94 $ 9,791 $10,485
11/30/95 $12,570 $14,365
11/30/96 $14,811 $18,369
11/30/97 $18,816 $23,607
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 27.05% 28.52%
- ----------------------------------------------------------------------------------------------
Since Commencement on 7/1/93: 15.37% 21.44%
</TABLE>
[CHART APPEARS HERE]
Class C Units
-------------------------
Focused Growth
Portfolio S&P 500
-------------- -------
6/14/96 $10,000 $10,000
11/30/96 $10,751 $11,481
11/30/97 $13,627 $14,756
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class C S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 26.75% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 6/14/96: 23.56% 30.40%
</TABLE>
15
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Benchmark Focused Growth Portfolio--Continued
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK FOCUSED GROWTH
PORTFOLIO VS. S&P 500 COMPOSITE STOCK PRICE INDEX
[CHART APPEARS HERE]
Class D Units
-------------------------
Focused Growth
Portfolio S&P 500
-------------- -------
12/8/94 $10,000 $10,000
11/30/95 $13,097 $13,767
11/30/96 $15,378 $17,605
11/30/97 $19,458 $22,626
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D S&P 500
November 30, 1997: Units Index
<S> <C> <C>
One Year: 26.52% 28.52%
- --------------------------------------------------------------------------------------------
Since Commencement on 12/8/94: 25.02% 31.51%
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
Benchmark International Equity Index Portfolio
International stocks, as represented by the Europe Australia and Far East
(EAFE) Index, fell 0.40% for the 12 month period ended November 30, 1997,
trailing the U.S. market, represented by the S&P 500 Index, by almost 30
percentage points. Both Japan and Hong Kong fell nearly 24% for the fiscal
year, while most of the larger European markets posted gains. In the United
Kingdom, for example, the market was up 22%. The German market posted a 20%
gain, while France returned 9%.
The Portfolio's performance surpassed that of the EAFE Index since commencing
investment operations in April 1997. We will practice a passive investment
strategy as we seek returns that approximate those of the international stock
market in general and the EAFE Index in particular.
Andrew Buchner
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK INTERNATIONAL
EQUITY INDEX PORTFOLIO VS. THE MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE,
AUSTRALIA, AND FAR EAST (EAFE) INDEX
[CHART APPEARS HERE]
Class A Units
----------------------------
International
Equity Index EAFE Index
------------- ----------
4/1/97 $10,000 $10,000
11/30/97 $10,545 $10,440
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Return**
For Period Ended Class A EAFE
November 30, 1997: Units Index
<S> <C> <C>
Commencement on 4/1/97: 5.45% 4.40%
- --------------------------------------------------------------------------------------------------
</TABLE>
**Average Annual Total Return is not annualized for periods less than one year.
17
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
Management's Discussion of Portfolio Performance
Benchmark International Growth Portfolio
In the first half of the fiscal year, falling interest rates, expectations for
robust earnings, a strong dollar and firm liquidity inflows fueled a powerful
global equity rally. By late summer, though, global financial markets appeared
overvalued and serious problems emerged in Southeast Asia and in the Japanese
financial system. As Thailand devalued its currency, a domino effect hit, with
every country in Asia, except Hong Kong, devaluing its currency. The Portfolio
had a diversified exposure to the Southeast Asian markets in modest proportions
early in the year, but by August 1997 we had eliminated this exposure.
By fall it had become apparent that the problems in Southeast Asia were
spreading to northern Asia and other emerging markets. As a result, global
equity markets experienced corrections, with emerging markets the hardest hit.
The Portfolio was well prepared for this, as we had reduced the number of high
volatility stocks and lowered the Portfolio's emerging-market exposure.
Recently, the focus has returned to Japan, where additional negative economic
news and a string of bankruptcies sent the market and the yen sharply lower.
Until early fall, the Portfolio held a modest underweight in Japan, but by late
October 1997 we further trimmed its exposure to the Japanese market and
increased its weighing in Europe, where strong exposure to financial stocks has
helped performance.
This strategy helped the Portfolio outperform its benchmark index during the
fiscal year. In addition, our focus on high-quality growth stocks and
underweighted exposure to cyclical and commodity stocks helped increase the
Portfolio's fiscal-year performance.
Robert La Fleur
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000
INVESTMENT IN BENCHMARK
INTERNATIONAL GROWTH PORTFOLIO VS.
THE MORGAN STANLEY CAPITAL
INTERNATIONAL EUROPE, AUSTRALIA, AND
FAR EAST (EAFE) INDEX
[CHART APPEARS HERE]
Class A Units
-------------------------
International
Growth EAFE
Portfolio Index
------------- -------
3/28/94 $10,000 $10,000
11/30/94 $10,211 $10,204
11/30/95 $ 9,974 $10,976
11/30/96 $10,967 $12,267
11/30/97 $11,429 $12,218
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A EAFE
November 30, 1997: Units Index
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 4.21% -0.40%
- ----------------------------------------------------------------------------------------------
Since Commencement on 3/28/94: 3.69% 5.59%
- ----------------------------------------------------------------------------------------------
</TABLE>
[CHART APPEARS HERE]
Class D Units
-------------------------
International
Growth EAFE
Portfolio Index
------------- -------
11/16/94 $10,000 $10,000
11/30/94 $ 9,744 $ 9,823
11/30/95 $ 9,474 $10,567
11/30/96 $10,382 $11,809
11/30/97 $10,776 $11,762
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D EAFE
November 30, 1997: Units Index
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 3.79% -0.40%
- ----------------------------------------------------------------------------------------------
Since Commencement on 11/16/94: 2.49% 5.48%
- ----------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
- --------------------------------------------------------------------------------
BENCHMARK SMALL COMPANY INDEX
Small-capitalization stocks, as represented by the Russell 2000 Index, posted a
23.24% return for the fiscal year ended November 30, 1997. The Russell 2000
underperformed relative to the S&P 500 Index, which returned 28.52% for the
same period. The Portfolio is managed to closely track the performance of the
Russell 2000 Index after adjusting for expenses.
The Russell 2000 Index represents the smaller two-thirds of the 3,000 largest
companies in the Russell 3000 Index. Companies leave the index as a result of
mergers, acquisitions and other events following the annual index
reconstitution in June. As of the end of November 1997, the Russell 2000 Index
included 1,919 companies. The market capitalization of companies in the index
ranged from $40 million to $2.5 billion, and the median company size was $463
million. The total market capitalization of the Russell 2000, after adjusting
for cross holdings, was $765.6 billion at the end of November 1997.
During the next 12 months we will continue to efficiently manage the
portfolio to seek to provide small cap equity returns that closely track those
of the Russell 2000 Index.
ROBERT H. BERGSON
Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK SMALL COMPANY
PORTFOLIO VS. THE RUSSELL 2000 SMALL STOCK INDEX
[CHART APPEARS HERE]
Class A Units
-----------------------
Small Russell
Company 2000
Portfolio Index
--------- -------
1/11/93 $10,000 $10,000
11/30/93 $11,409 $11,515
11/30/94 $11,233 $11,363
11/30/95 $14,352 $14,576
11/30/96 $16,642 $16,976
11/30/97 $20,480 $20,921
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class A Russell 2000
November 30, 1997: Units Index
<S> <C> <C>
One Year: 23.06% 23.24%
- -------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 15.79% 16.29%
</TABLE>
Class D Units
-----------------------
Small Russell
Company 2000
Portfolio Index
--------- -------
12/8/94 $10,000 $10,000
11/30/95 $13,162 $13,263
11/30/96 $15,295 $15,447
11/30/97 $18,764 $19,036
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total
Returns For Periods Ended Class D Russell 2000
November 30, 1997: Units Index
<S> <C> <C>
One Year: 22.68% 23.24%
- -------------------------------------------------------------------------------------------
Since Commencement on 12/8/94: 23.51% 24.11%
</TABLE>
19
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
VOTING RESULTS OF SPECIAL MEETING OF UNITHOLDERS
At a Special Meeting of Unitholders of the Trust (the "Meeting") called on
September 2, 1997 and reconvened on September 16, 1997, the following actions
were taken:
(1) The following individuals were elected to serve on the Board of Trustees
by the unitholders of all Portfolios of the Trust voting together in the
aggregate:
<TABLE>
<CAPTION>
Number of
Number of Votes
Name of Trustee Votes For Withheld
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Richard G. Cline 4,342,632,239 76,704,013
Edward J. Condon 4,342,191,351 77,144,902
John W. English 4,342,191,351 77,144,902
James J. Gavin, Jr. 4,328,946,859 90,389,394
Sandra P. Guthman 4,342,187,348 77,148,905
Frederick T. Kelsey 4,333,070,647 86,265,606
William H. Springer 4,342,190,200 77,146,053
Richard P. Strubel 4,342,191,351 77,144,902
- ---------------------------------------------------------------------------------------------
</TABLE>
(2) The approval of the selection of Ernst & Young LLP as the Trust's
independent auditors for the fiscal year ending November 30, 1997 was ratified
by all the unitholders of all Portfolios of the Trust voting together in the
aggregate as follows:
<TABLE>
<CAPTION>
Votes
Votes For Against Abstained
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
4,355,519,334 26,510 63,790,409
- ---------------------------------------------------------------------------------------------------
</TABLE>
(3) An Agreement and Plan of Reorganization pursuant to which each Portfolio
will be reorganized as a series of a Delaware business trust also named The
Benchmark Funds was approved by all Portfolios except the U.S. Government
Securities Portfolio (voting separately on a Portfolio-by-Portfolio basis) as
follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Bond 14,013,294 70 3,602
International Bond 1,159,413 0 0
Short-Intermediate Bond 5,059,335 0 56,763
U.S. Government Securities 1,717,204 2,274,396 0
U.S. Treasury Index 798,755 0 0
Balanced 3,209,274 0 0
Diversified Growth 7,642,977 0 0
Equity Index 26,783,890 0 0
Focused Growth 5,054,058 0 0
International Equity Index 1,576,255 0 197,211
International Growth 8,340,115 1,541 0
Small Company Index 6,335,551 0 0
- ----------------------------------------------------------------------------------------
</TABLE>
(4)(a) A new fundamental investment policy regarding investments in other
investment company securities was approved by each of the Portfolios (voting
separately on a Portfolio-by-Portfolio basis) as follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- ----------------------------------------------------------
<S> <C> <C> <C>
Bond 14,013,412 3,553 1
International Bond 1,159,413 0 0
Short-Intermediate Bond 5,059,335 0 56,763
U.S. Government Securities 3,450,477 541,123 0
U.S. Treasury Index 798,755 0 0
Balanced 3,209,274 0 0
Diversified Growth 7,642,977 0 0
Equity Index 22,998,787 3,785,102 0
Focused Growth 5,054,058 0 0
International Equity Index 1,576,255 0 197,211
International Growth 8,340,115 1,541 0
Small Company Index 6,335,551 0 0
- ----------------------------------------------------------
</TABLE>
(4)(b) A related amendment to the Trust's Declaration of Trust was approved
by all the unitholders of all Portfolios of the Trust voting together in the
aggregate as follows:
<TABLE>
<CAPTION>
Votes
Votes For Against Abstained
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
4,221,718,223 101,504,918 96,113,107
- -------------------------------------------------------------------------------------------------
</TABLE>
(5) A new fundamental investment restriction for each diversified Portfolio
concerning issuer diversification was approved by each of the Portfolios
except the U.S. Government Securities Portfolio (voting separately on a
Portfolio-by-Portfolio basis) as follows:
<TABLE>
<CAPTION>
Votes
Portfolio Votes For Against Abstained
- ----------------------------------------------------------
<S> <C> <C> <C>
Bond 14,013,364 0 3,602
Short-Intermediate Bond 5,059,335 0 56,763
U.S. Government Securities 1,647,185 2,344,415 0
U.S. Treasury Index 798,755 0 0
Balanced 3,209,274 0 0
Diversified Growth 7,642,977 0 0
Equity Index 26,783,890 0 0
Focused Growth 5,054,058 0 0
International Equity Index 1,576,255 0 197,211
International Growth 8,340,115 1,541 0
Small Company Index 6,335,551 0 0
- ----------------------------------------------------------
</TABLE>
(6) A new investment advisory agreement with Northern Trust and RCB Trust
Company, which will allow the International Growth Portfolio to implement a
"manager of managers" structure and enter into sub-advisory agreements in the
future without further unitholder approval was approved by the unitholders of
the International Growth Portfolio (voting together as a single class) as
follows:
<TABLE>
<CAPTION>
Votes
Votes For Against Abstained
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
8,341,656 0 0
- -------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------
BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--3.8%
AUTOMOTIVE--2.0%
WFS Financial Owner Trust,
Series 1997-A, Class A-3
$ 10,000 6.500% 09/20/01 $ 10,063
--------
HOME EQUITY LOANS--1.8%
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class A
9,200 7.410 11/26/28 9,189
- ------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $19,197) $ 19,252
- ------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--12.0%
American Southwest
Financial Securities Corp.,
Series 1996 FHA-1, Class A-
1
$ 8,442 6.675% 12/25/01 $ 8,485
Countrywide Funding Corp.,
Series 1993-1, Class A-4
13,567 4.384 10/25/23 12,431
Countrywide Mortgage Backed
Securities Inc., Series
1993-D, Class A-11
6,047 5.796 01/25/09 5,263
Delta Funding Corp.,
Interest Only Stripped
Security, Series 1991-1,
Class A-4(/1/)
-- 18.000 01/01/06 38
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance Corp.,
Adjustable Rate, Interest
Only Stripped Security,
Series 1995-QE9
-- 18.000 11/25/25 866
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance Corp.,
Series 1994-Q8, Class 2-A1
4,367 7.250 05/25/24 4,390
PNC Mortgage Securities
Corp.,
Series 1996-PR1, Class
A(/1/)
9,593 8.151 04/28/27 9,889
Residential Asset
Securitization Trust
Series 1997-A8, Class A-3
12,331 7.000 10/25/27 12,362
Residential Funding
Mortgage Securities I,
Inc., Principal Only
Stripped Securities,
Series 1997-S18, Class A-2
9,986 18.853 7,766
- ------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $60,834) $ 61,490
- ------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
CORPORATE AND FOREIGN GOVERNMENT
BONDS--15.0%
FINANCIAL--1.0%
General Motors
Acceptance Corp.
$ 4,285 8.875% 06/01/00 $ 5,075
--------
FOREIGN GOVERNMENT BOND--3.2%
Quebec Province,
Canada
Medium Term Note
15,450 7.220 07/22/36 16,315
--------
INDUSTRIAL--3.0%
Penney (J.C.) &
Co., Inc.
15,000 6.900 08/15/03 15,434
--------
INSURANCE SERVICES--4.7%
Anthem
Insurance(/1/)
6,000 9.000 04/01/27 6,655
Lumberman's Mutual
Casualty Co.
2,000 9.150 07/01/26 2,285
4,000 8.300 12/01/37 4,085
Prudential
Insurance Co.
10,000 8.300 07/01/25 10,924
--------
23,949
--------
SANITARY SERVICES--3.1%
WMX Technologies
15,300 7.100 08/01/03 16,066
- --------------------------------------------------------
TOTAL CORPORATE AND FOREIGN
GOVERNMENT BONDS (Cost
$73,355) $ 76,839
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES--7.7%
COLLATERALIZED MORTGAGE OBLIGATIONS--
7.7%
FANNIE MAE REMIC TRUST--3.0%
Series 1991-127,
Class SA
$ 493 11.658% 09/25/98 $ 509
Series 1996-M4,
Class A
6,645 7.750 03/17/17 6,822
Series 1990-3,
Class 3-D
256 8.500 07/25/18 256
Series 1992-73,
Class G
256 7.500 04/25/21 7,574
--------
15,161
--------
FANNIE MAE REMIC TRUST
INTEREST ONLY STRIPPED
SECURITIES--1.0%
Series 278, Class 2
-- 7.149 08/01/25 1,704
Series 1997-20,
Class IO
-- 9.347 03/25/27 3,387
--------
5,091
--------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Description
- ----------------------------------------------------
Principal
Amount/ Maturity
Shares Rate Date Value
- ----------------------------------------------------
BOND PORTFOLIO--CONTINUED
<C> <S> <C> <C>
FANNIE MAE REMIC TRUST
PRINCIPAL ONLY STRIPPED SECURITIES--
3.7%
Series 1993-161,
Class B
$ 2,262 7.770% 10/25/18 $ 2,206
Series 1993-132,
Class D
1,947 8.315 10/25/22 1,180
Series 1993-184,
Class L
7,585 6.013 09/25/23 5,386
Series 1993-205,
Class EA
3,150 6.414 09/25/23 2,384
Series 1994-9,
Class G
1,101 6.570 11/25/23 1,061
Series 1996-14,
Class PR
8,892 6.281 01/25/24 6,618
--------
18,835
--------
MORTGAGE-BACKED SECURITIES--
0.0%
FREDDIE MAC--0.0%
$ 1 6.500% 06/01/04 $ 1
- ----------------------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $36,593) $ 39,088
- ----------------------------------------------------
U.S. GOVERNMENT OBLIGA-
TIONS--50.3%
U.S. TREASURY NOTES--17.1%
$ 35,270 6.750% 05/31/99 $ 35,755
24,895 6.875 08/31/99 25,334
3,300 7.750 01/31/00 3,428
21,075 7.500 02/15/05 23,028
--------
87,545
--------
U.S. TREASURY BONDS--33.2%
108,355 6.625 07/31/01 111,064
39,245 7.125 02/15/23 44,200
15,000 6.000 02/15/26 14,763
--------
170,027
- ----------------------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $250,155) $257,572
- ----------------------------------------------------
PREFERRED STOCKS--3.8%
AGENCY--2.9%
Home Ownership
15,000 Funding Corp. $ 14,915
--------
REAL ESTATE--0.9%
Tier One
4,600 Properties, Inc. 4,558
- ----------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $19,600) $ 19,473
- ----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------
<C> <S> <C> <C>
FLOATING RATE BANK NOTES--5.7%
Lloyds Bank PLC
$ 14,950 6.188% 12/15/97 $ 13,446
Midland Bank PLC
2,500 6.125 12/29/97 2,150
National
Westminster Bank
15,300 6.000 02/27/98 13,541
- ----------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $28,172) $ 29,137
- ----------------------------------------
SHORT-TERM INVESTMENT--0.1%
Banco Central
Hispanoamericano,
Grand Cayman
$ 659 5.750% 12/01/97 $ 659
- ----------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $659) $ 659
- ----------------------------------------
TOTAL INVESTMENTS--98.4%
(Cost $488,565) $503,510
- ----------------------------------------
Other assets, less
liabilities--1.6% 8,159
- ----------------------------------------
NET ASSETS--100.0% $511,669
- ----------------------------------------
- ----------------------------------------
</TABLE>
(/1/)At November 30, 1997, the Portfolio owned restricted securities valued at
approximately $16,582 (3.2% of net assets), with an aggregate cost basis of
$16,116. 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 accordance with procedures established by the Trustees.
See accompanying notes to financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------------------
INTERMEDIATE BOND PORTFOLIO
<C> <S> <C> <C>
ASSET-BACKED SECURITIES--5.8%
AUTOMOTIVE--4.2%
Olympic Automobile
Receivables Trust,
Series 1996-D, Class A-
4
$ 500 6.050% 08/15/02 $ 500
HOME EQUITY LOANS--1.6%
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class A
200 7.410 11/26/28 200
- -----------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $699) $ 700
- -----------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--8.4%
GE Capital Mortgage
Services, Inc.,
Series 1997-5, Class A-
2
$ 500 7.500% 06/25/27 $ 504
Residential Asset
Securitization Trust,
Series 1997-A8, Class
A-3
500 7.000 10/25/27 501
- -----------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATION
(Cost $998) $ 1,005
- -----------------------------------------------------
CORPORATE BONDS--12.8%
INDUSTRIAL--3.6%
Penney (J.C.) & Co.,
Inc.
$ 400 7.400% 04/01/37 $ 428
-------
INSURANCES SERVICES--5.4%
Lumberman's Mutual
Casualty Co.
100 9.150 07/01/26 114
200 8.300 12/01/37 204
Prudential Insurance
Co.
300 8.300 07/01/25 328
-------
646
-------
SANITARY SERVICES--3.8%
WMX Technologies, Inc.
440 7.100 08/01/03 462
- -----------------------------------------------------
TOTAL CORPORATE BONDS (Cost
$1,528) $ 1,536
- -----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--
51.7%
U.S. TREASURY NOTES--26.1%
$1,300 6.750% 05/31/99 $ 1,318
1,660 7.500 02/15/05 1,814
-------
3,132
-------
U.S. TREASURY BOND--25.6%
3,000 6.625 07/31/01 3,075
- ---------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(Cost $6,195) $ 6,207
- ---------------------------------------
FLOATING RATE BANK NOTES--
10.8%
Hong Kong and
Shanghai Bank
$ 500 5.938% 01/16/98 $ 395
Lloyds Bank PLC
500 6.188 12/15/97 450
National
Westminster Bank
500 6.000 02/27/98 442
- ---------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,376) $ 1,287
- ---------------------------------------
SHORT-TERM INVESTMENTS--9.1%
Banco Central
Hispanoamericano,
Grand Cayman
$ 479 5.750% 12/01/97 $479
Federal Home Loan
Bank Discount Note
610 5.500 12/01/97 610
- ---------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $1,089) $ 1,089
- ---------------------------------------
TOTAL INVESTMENTS--98.6%
(Cost $11,885) $11,824
- ---------------------------------------
Other assets, less liabili-
ties--1.4% 173
- ---------------------------------------
NET ASSETS--100.0% $11,997
- ---------------------------------------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local Currency Maturity
Principal Amount Rate Date Value
- ------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <S> <C> <C>
DEBT OBLIGATIONS--96.0%
AUSTRALIAN DOLLAR--3.0%
Commonwealth of
Australia
980 10.000% 10/15/02 $ 786
-------
BELGIAN FRANC--2.2%
Kingdom of Belgium
18,275 7.500 07/29/08 574
-------
BRITISH POUND STERLING--17.3%
Abbey National PLC
825 6.000 08/10/99 1,356
BAA PLC
525 7.875 02/10/07 916
Lloyds Bank PLC
800 7.375 03/11/04 1,365
Treasury of Great
Britain
525 7.500 12/07/06 941
-------
4,578
-------
CANADIAN DOLLAR--5.3%
Province of Ontario
1,050 7.250 09/27/05 799
Province of Quebec
725 10.250 10/15/01 595
-------
1,394
-------
DANISH KRONE--6.5%
Kingdom of Denmark
10,100 8.000 03/15/06 1,718
-------
FRENCH FRANC--4.6%
Electricite de France
6,200 8.600 04/09/04 1,232
-------
GERMAN MARK--15.4%
Federal Republic of
Germany
1,795 6.250 01/04/24 1,047
LKB Global Bond
1,500 6.000 05/10/99 870
Republic of Austria
1,670 8.000 01/30/02 1,049
Republic of Finland
1,920 5.500 02/09/01 1,110
-------
4,076
-------
ITALIAN LIRA--10.0%
Republic of Italy
4,000,000 8.500 04/01/04 2,655
-------
JAPANESE YEN--15.4%
Asian Development Bank
90,000 5.000 02/05/03 831
European Bank for
Reconstruction
and Development
95,000 5.875 11/26/99 823
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Local Currency Maturity
Principal Amount Rate Date Value
- ----------------------------------------------
<C> <S> <C> <C>
International Bank
for Reconstruction
and Development
100,000 4.500% 03/20/03 $ 911
Japan Development
Bank
160,000 6.500 09/20/01 1,511
-------
4,076
-------
NETHERLANDS GUILDER--5.5%
Kingdom of the
Netherlands
2,615 8.500 03/15/01 1,460
-------
SPANISH PESETA--4.8%
Kingdom of Spain
120,000 11.300 01/15/02 982
35,000 10.000 02/28/05 295
-------
1,277
-------
SWEDISH KRONA--4.3%
Kingdom of Sweden
7,400 10.250 05/05/03 1,144
-------
UNITED STATES DOLLAR--1.7%
U.S. Treasury Bond
400 7.125 02/15/23 451
- ----------------------------------------------
TOTAL DEBT OBLIGATIONS
(Cost $25,640) $25,421
- ----------------------------------------------
SHORT-TERM INVESTMENT--0.4%
United States Dollar
Banco Central
Hispanoamericano,
Grand Cayman
$ 112 5.750% 12/01/97 $ 112
- ----------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost
$112) $ 112
- ----------------------------------------------
TOTAL INVESTMENTS--96.4%
(Cost $25,752) $25,533
- ----------------------------------------------
Other assets, less liabilities--3.6% 941
- ----------------------------------------------
NET ASSETS--100.0% $26,474
- ----------------------------------------------
- ----------------------------------------------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
<C> <S> <C> <C> <C> <C> <C> <C>
ASSET-BACKED SECURITIES--15.8%
AUTOMOTIVE--6.8%
Olympic Automobile
Receivables Trust Series
1995-D, Class A-3
$ 756 5.950% 11/15/99 $ 757
Series 1995-A, Class A
1,569 7.875 07/15/01 1,590
Series 1996-D, Class A-4
4,075 6.050 08/15/02 4,073
Olympic Automobile
Receivables Trust,
Interest Only Stripped
Security
Series 1995-D, Class I
-- 15.076 01/15/99 474
Premier Auto Trust
Series 1994-1, Class A-3
377 4.750 02/02/00 376
Western Financial
Automobile Loan Trust
Series 1994-4, Class A-1
728 7.100 01/01/00 732
Series 1997-A, Class A-3
5,800 6.500 09/20/01 5,836
--------
13,838
--------
HOME EQUITY LOAN--1.6%
Delta Funding Home Equity
Loan Trust, Interest Only
Stripped Security
Series 1997-2, Class AIO
-- 5.657 06/25/27 3,169
--------
FINANCIAL--7.4%
California Infrastructure
PG&E,
Series 1997-1, Class A-3
7,250 6.150 06/25/02 7,249
IMC Excess Cashflow
Securities Trust,
Series 1997-A, Class A
4,000 7.410 11/26/28 3,995
Southern Pacific Secured
Asset Corp.
Series 1997-2, Class AIO
37,500 5.720 07/25/00 3,747
--------
14,991
- --------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $33,452) $ 31,998
- --------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--20.0%
AAMES Mortgage Trust,
Interest Only Stripped
Security
Series 1997-B, Class AIO
$ -- 5.835% 07/15/00 $ 2,425
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C> <C>
Donaldson, Lufkin &
Jenrette
Mortgage Acceptance
Corp.,
Interest Only Stripped
Security
Series 1997-CF2, Class
CP
$ -- 6.595% 11/15/04 $ 6,434
Series 1994-Q8, Class
2A1
1,878 7.250 05/25/24 1,888
Financial Asset
Securitization, Inc.,
Series 1997-NAMC, Class
FXA-3
6,074 7.350 04/25/27 6,131
GE Capital Mortgage
Services, Inc.,
Series 1994-15, Class A-
16
7,692 6.000 04/25/09 7,419
PNC Mortgage Securities
Corp.,
Series 1996-PR1, Class A
2,757 8.227 04/28/27 2,842
Prudential Home Mortgage
Securities Co.,
Series 1994-1, Class A-3
8,513 6.000 02/25/09 8,407
Residential Asset
Securitization Trust,
Series 1997-A8, Class A3
5,000 7.000 10/25/27 5,013
- --------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $40,719) $ 40,559
- --------------------------------------------------------------
CORPORATE BONDS--8.0%
BROKERAGE SERVICES--5.6%
Donaldson, Lufkin &
Jenrette, Inc.
Medium Term Note
$ 6,500 5.625% 02/15/16 $ 6,371
Salomon Brothers, Inc.
Medium Term Notes
3,000 5.500 01/31/98 2,996
2,000 5.700 02/11/98 1,997
--------
11,364
--------
ELECTRICAL UTILITY--2.4%
Tenaga Nasional Berhad
4,800 7.200 04/29/07 4,787
- --------------------------------------------------------------
TOTAL CORPORATE BONDS (Cost $16,279) $ 16,151
- --------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--4.6%
COLLATERALIZED MORTGAGE OBLIGATIONS--4.6%
FANNIE MAE REMIC TRUST--2.2%
Series 1996-M4, Class A
$ 4,430 7.750% 03/17/17 $ 4,548
--------
FANNIE MAE REMIC TRUST
PRINCIPAL ONLY STRIPPED SECURITY--
0.8%
Series 1993-161, Class B
565 7.770 10/25/18 552
Series 1994-9, Class G
1,101 6.590 11/25/23 1,062
--------
1,614
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO--CONTINUED
<C> <S> <C> <C>
FREDDIE MAC REMIC TRUST
PRINCIPAL ONLY STRIPPED SECU-
RITY--1.6%
Series 1571, Class
BA
$ 3,280 3.694% 04/15/19 $ 3,140
- --------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $8,302) $ 9,302
- --------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--
47.7%
U.S. TREASURY NOTES--47.7%
$12,000 6.750% 05/31/99 $ 12,165
13,675 6.875 08/31/99 13,917
17,900 7.750 01/31/00 18,594
4,000 5.500 12/31/00 3,962
11,890 6.625 06/30/01 12,180
23,000 6.625 07/31/01 23,575
12,000 6.250 01/31/02 12,163
- --------------------------------------------------------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(Cost $95,757) $ 96,556
- --------------------------------------------------------------
SHORT-TERM INVESTMENT--5.8%
Banco Central
Hispanoamericano,
Grand Cayman
$11,692 5.750% 12/01/97 $ 11,692
- --------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $11,692) $ 11,692
- --------------------------------------------------------------
TOTAL INVESTMENTS--101.9%
(Cost $206,201) $206,258
- --------------------------------------------------------------
Liabilities, less other as-
sets--(1.9)% (3,910)
- --------------------------------------------------------------
NET ASSETS--100.0% $202,348
- --------------------------------------------------------------
- --------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
<C> <S> <C> <C> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCIES--69.5%
COLLATERALIZED MORTGAGE OBLIGATIONS--49.8%
FREDDIE MAC--14.5%
Series: 1227, Class G
$ 4,125 9.199% 05/15/99 $ 4,263
Series: 1296, Class H
1,781 11.505 07/15/99 1,890
Series: 1520, Class F
576 5.650 09/15/04 573
--------
6,726
--------
FANNIE MAE REMIC TRUST--35.3%
Series: 1991-127, Class S
2,171 11.979 09/25/98 2,250
Series: 1997-M1, Class A
3,098 6.783 01/17/03 3,126
Series: 1993-085, Class PD
2,518 5.500 07/25/03 2,506
Series 1993-133, Class EZ
3,845 5.850 02/25/17 3,814
Series 1996-M4, Class A
2,953 7.750 03/17/17 3,032
Series: 1992-2000, Class E
980 6.250 06/25/17 978
Series: 1998-14, Class 14-F
187 9.200 12/25/17 192
Series: 1997-20, Class IO,
Interest Only Stripped
Security
-- 9.347 03/25/27 550
--------
16,448
--------
MORTGAGE-BACKED SECURITIES--15.3%
FREDDIE MAC--0.9%
Pool #410092
$ 413 7.837% 11/01/24 $ 427
--------
FANNIE MAE--6.3%
Pool #124945
2,811 7.752 01/01/31 2,939
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
POOL NUMBER TO BE ASSIGNED*--8.1%
3,750 5.500 12/30/27 3,748
--------
7,114
--------
AGENCY OBLIGATIONS--4.4%
FREDDIE MAC--1.1%
$ 500 7.130% 06/30/05 $ 500
--------
TENNESSEE VALLEY AUTHORITY NOTE--3.3%
1,500 6.235 07/15/45 1,536
--------
2,036
- ------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $32,182) $ 32,324
- ------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -----------------------------------------
Principal Maturity
Amount Rate Date Value
- -----------------------------------------
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--28.5%
U.S. TREASURY BOND--8.8%
$ 4,000 6.625% 07/31/01 $ 4,100
---------
U.S. TREASURY NOTE--19.7%
9,000 6.250 01/31/02 9,122
- -----------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $13,059) $ 13,222
- -----------------------------------------
SHORT-TERM INVESTMENT--9.1%
Federal Home Loan Bank
Discount Note
$ 4,250 5.500% 12/01/97 $ 4,248
- -----------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $4,250) $ 4,248
- -----------------------------------------
TOTAL INVESTMENTS--107.1%
(Cost $49,491) $ 49,794
- -----------------------------------------
Liabilities, less other as-
sets--(7.1)% (3,291)
- -----------------------------------------
NET ASSETS--100.0% $ 46,503
- -----------------------------------------
- -----------------------------------------
</TABLE>
*The Portfolio may purchase securities with delivery or payments to occur at a
later date. At the time the Portfolio enters into a commitment to purchase a
security, the transaction is recorded and the value of the security is
reflected in the net asset value. The value of the security may vary with
market fluctuations. No interest accrues to the Portfolio until payment takes
place. At the time the Portfolio enters into this type of transaction it is
required to segregate cash or other liquid assets at least equal to the value
of the securites purchased. At November 30, 1997, the Portfolio had a purchase
commitment outstanding of approximately $3,748 (8.1% of net assets), with a
corresponding amount of assets segregated.
See accompanying notes to financial statements.
27
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--97.3%
U.S. TREASURY NOTES--66.4%
$ 3,000 5.250% 02/28/99 $ 2,990
3,900 9.125 05/15/99 4,080
850 7.875 11/15/99 882
3,800 7.750 01/30/00 3,947
4,100 6.500 05/31/01 4,183
1,800 7.550 11/15/01 1,902
3,400 6.250 02/15/03 3,458
800 5.750 08/15/03 795
1,300 6.250 02/15/07 1,331
--------
23,568
--------
U.S. TREASURY BONDS--30.9%
435 13.875 05/15/11 659
660 14.000 11/15/11 1,022
490 13.250 05/15/14 778
2,350 7.250 05/15/16 2,643
900 8.125 05/15/21 1,120
1,900 8.000 11/15/21 2,340
2,400 6.250 02/15/23 2,439
--------
11,001
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $33,630) 34,569
- ------------------------------------------------------
SHORT-TERM INVESTMENT--1.5%
Federal Home Loan Bank
Discount Note
$ 535 5.500% 12/01/97 $ 535
- ------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $535) $ 535
- ------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $34,165) $ 35,104
- ------------------------------------------------------
Other assets, less
liabilities--1.2% 442
- ------------------------------------------------------
NET ASSETS--100.0% $ 35,546
- ------------------------------------------------------
- ------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1997
(All amounts in thousands, except net asset value per unit)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $488,565 $11,885 $25,752 $206,201 $49,491 $34,165
- ------------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $503,510 $11,824 $25,533 $206,258 $49,794 $35,104
Cash and foreign curren-
cies 1,254 49 44 21 5 136
Receivables:
Interest 7,509 163 894 3,345 469 337
Fund units sold 7 -- -- 301 -- --
Investment securities
sold -- -- -- -- 13 --
Foreign tax reclaims -- -- 17 -- -- --
Administrator 29 -- 7 17 4 7
Deferred organization
costs, net 2 23 21 2 5 2
Other assets 6 -- 4 2 18 3
- ------------------------------------------------------------------------------------------------
TOTAL ASSETS 512,317 12,059 26,520 209,946 50,308 35,589
- ------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 408 -- -- 254 31 18
Investment securities
purchased -- -- -- 7,249 3,727 --
Accrued expenses:
Advisory fees 101 2 15 43 14 4
Administration fees 41 1 3 17 5 3
Transfer agent fees 8 -- -- 2 1 --
Custodian fees 5 2 5 3 2 2
Other liabilities 85 57 23 30 25 16
- ------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 648 62 46 7,598 3,805 43
- ------------------------------------------------------------------------------------------------
NET ASSETS $511,669 $11,997 $26,474 $202,348 $46,503 $35,546
- ------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $494,296 $12,060 $26,344 $202,009 $46,371 $35,606
Accumulated undistrib-
uted net investment in-
come 338 19 38 56 -- 56
Accumulated net realized
gains (losses) on
investments, forward
foreign currency
contracts and foreign
currency transactions 2,090 (21) 313 226 (171) (1,055)
Net unrealized
appreciation
(depreciation) on
investments, forward
foreign currency
contracts and foreign
currency transactions 14,945 (61) (219) 57 303 939
Net unrealized losses on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- (2) -- -- --
- ------------------------------------------------------------------------------------------------
NET ASSETS $511,669 $11,997 $26,474 $202,348 $46,503 $35,546
- ------------------------------------------------------------------------------------------------
Total units outstanding
(no par value), unlim-
ited units authorized
Class A 21,851 603 1,310 9,892 2,154 1,626
Class C 2,400 -- -- -- 156 --
Class D 29 -- 5 44 16 82
- ------------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption price
per unit
Class A $ 21.08 $ 19.89 $ 20.13 $ 20.36 $ 19.99 $ 20.81
Class C $ 21.07 -- -- -- $ 19.98 --
Class D $ 21.05 -- $ 20.06 $ 20.31 $ 19.94 $ 20.77
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1997
(All amounts in thousands)
<TABLE>
<CAPTION>
Short- U.S. U.S.
Intermediate International Intermediate Government Treasury
Bond Bond Bond Bond Securities Index
Portfolio Portfolio(a) Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME: $30,512 $216 $1,886(b) $13,800 $5,345 $1,937
- ------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 2,607 21 258 1,029 515 117
Administration fees 529 3 56 244 138 46
Transfer agent fees 75 1 3 18 12 5
Registration fees 57 33 20 37 23 24
Unitholder servicing
fees 53 -- -- 1 6 3
Custodian fees 48 7 68 30 22 21
Professional fees 18 4 4 7 4 4
Amortization of deferred
organization costs 13 2 16 13 13 13
Trustee fees and ex-
penses 11 1 2 4 2 2
Other 21 6 9 11 8 8
- ------------------------------------------------------------------------------------------------
TOTAL EXPENSES 3,432 78 436 1,394 743 243
Less voluntary waivers
of:
Investment advisory
fees (1,521) (12) (57) (600) (300) (73)
Administration fees (94) -- (19) (72) (53) (17)
Less: Expenses reimburs-
able by Administrator (166) (54) (82) (102) (71) (72)
- ------------------------------------------------------------------------------------------------
Net expenses 1,651 12 278 620 319 81
- ------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 28,861 204 1,608 13,180 5,026 1,856
Net realized gains
(losses) on:
Investment transactions 3,869 (21) 305 (623) 76 (56)
Forward foreign cur-
rency contracts -- -- (130) -- -- --
Foreign currency trans-
actions -- -- (78) -- -- --
Net change in unrealized
appreciation (deprecia-
tion) on investments,
forward foreign cur-
rency contracts and
foreign currency
transactions 4,710 (61) (2,827) (2,110) (46) 382
Net change in unrealized
gains on translation of
other assets and lia-
bilities denominated in
foreign currencies -- -- 3 -- -- --
- ------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $37,440 $122 $(1,119) $10,447 $5,056 $2,182
- ------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
(b) Net of $22 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
30
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1997 and 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Intermediate
Bond Bond International
Portfolio Portfolio Bond Portfolio
------------------ ------------ ----------------
1997 1996 1997 (a) 1997 1996
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 28,861 $ 21,225 $ 204 $ 1,608 $ 1,892
Net realized gains (losses)
on investments, forward
foreign currency contracts
and foreign currency
transactions 3,869 2,094 (21) 97 976
Net change in unrealized
appreciation
(depreciation) on
investments, forward
foreign currency contracts
and foreign currency
transactions 4,710 (3,905) (61) (2,827) 20
Net change in unrealized
gains on translations of
other assets and
liabilities denominated in
foreign currencies -- -- -- 3 6
- --------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations 37,440 19,414 122 (1,119) 2,894
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A
UNITHOLDERS FROM:
Net investment income (25,700) (20,213) (185) (1,390) (2,300)
Net realized gain on
investment transactions -- -- -- (520) --
Return of capital -- (556) -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class
A unitholders (25,700) (20,769) (185) (1,910) (2,300)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C
UNITHOLDERS FROM:
Net investment income (2,140) (264) -- -- --
Return of capital -- (7) -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class
C unitholders (2,140) (271) -- -- --
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D
UNITHOLDERS FROM:
Net investment income (23) (8) -- (3) (1)
Net realized gain on
investment transactions -- -- -- (1) --
Return of capital -- (1) -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class
D unitholders (23) (9) -- (4) (1)
- --------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of
units 155,583 143,593 11,875 1,168 5,918
Reinvested distributions 22,888 18,565 185 1,525 1,747
Cost of units redeemed (92,369) (79,885) -- (7,465) (6,747)
- --------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
Class A unit transactions 86,102 82,273 12,060 (4,772) 918
- --------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of
units 60,626 4,311 -- -- --
Reinvested distributions 2,140 271 -- -- --
Cost of units redeemed (21,561) (1,032) -- -- --
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from Class C unit
transactions 41,205 3,550 -- -- --
- --------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of
units 657 127 -- 47 41
Reinvested distributions 22 9 -- 4 1
Cost of units redeemed (306) (37) -- (7) --
- --------------------------------------------------------------------------------
Net increase in net assets
resulting from Class D unit
transactions 373 99 -- 44 42
- --------------------------------------------------------------------------------
Net increase (decrease) 137,257 84,287 11,997 (7,761) 1,553
Net assets--beginning of
year 374,412 290,125 -- 34,235 32,682
- --------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $511,669 $374,412 $11,997 $26,474 $34,235
- --------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME: $ 338 $ -- $ 19 $ 38 $ 31
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
31
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS--CONTINUED
For the Years Ended November 30, 1997 and 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Short- U.S. Government
Intermediate Bond Securities U.S. Treasury
Portfolio Portfolio Index Portfolio
------------------ ------------------- -----------------
1997 1996 1997 1996 1997 1996
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS:
Net investment income $ 13,180 $ 9,828 $ 5,026 $ 4,572 $ 1,856 $ 1,035
Net realized gains
(losses) on
investments (623) 392 76 (58) (56) 91
Net change in
unrealized
appreciation
(depreciation) on
investments (2,110) (1,308) (46) (201) 382 (239)
- ------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations 10,447 8,912 5,056 4,313 2,182 887
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
A UNITHOLDERS FROM:
Net investment income (12,516) (9,596) (4,820) (4,393) (1,746) (1,005)
Net realized gain on
investment
transactions (414) -- -- -- -- --
- ------------------------------------------------------------------------------------
Total distributions to
Class A unitholders (12,930) (9,596) (4,820) (4,393) (1,746) (1,005)
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
C UNITHOLDERS FROM:
Net investment income -- -- (204) (159) -- --
- ------------------------------------------------------------------------------------
Total distributions to
Class C unitholders -- -- (204) (159) -- --
- ------------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS
D UNITHOLDERS FROM:
Net investment income (39) (3) (17) (9) (79) (26)
Net realized gain on
investment
transactions (1) -- -- -- -- --
- ------------------------------------------------------------------------------------
Total distributions to
Class D unitholders (40) (3) (17) (9) (79) (26)
- ------------------------------------------------------------------------------------
CLASS A UNIT
TRANSACTIONS:
Proceeds from the sale
of units 121,515 69,730 68,991 104,606 20,990 13,176
Reinvested
distributions 11,648 8,697 4,525 4,198 1,197 746
Cost of units redeemed (82,865) (82,742) (122,819) (72,555) (14,944) (5,169)
- ------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from Class A
unit transactions 50,298 (4,315) (49,303) 36,249 7,243 8,753
- ------------------------------------------------------------------------------------
CLASS C UNIT
TRANSACTIONS:
Proceeds from the sale
of units -- -- 1,328 4,695 -- --
Reinvested
distributions -- -- 204 159 -- --
Cost of units redeemed -- -- (1,940) (1,298) -- --
- ------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from Class C
unit transactions -- -- (408) 3,556 -- --
- ------------------------------------------------------------------------------------
CLASS D UNIT
TRANSACTIONS:
Proceeds from the sale
of units 638 328 111 210 1,106 592
Reinvested
distributions 27 3 6 8 40 26
Cost of units redeemed (110) (2) (29) (60) (321) (66)
- ------------------------------------------------------------------------------------
Net increase in net
assets resulting from
Class D unit
transactions 555 329 88 158 825 552
- ------------------------------------------------------------------------------------
Net increase (decrease) 48,330 (4,673) (49,608) 39,715 8,425 9,161
Net assets--beginning
of year 154,018 158,691 96,111 56,396 27,121 17,960
- ------------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $202,348 $154,018 $ 46,503 $ 96,111 $ 35,546 $27,121
- ------------------------------------------------------------------------------------
ACCUMULATED
UNDISTRIBUTED NET
INVESTMENT INCOME: $ 56 $ 45 $ -- $ 75 $ 56 $ 25
- ------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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 YEAR $ 20.77 $ 20.96 $ 18.29 $ 20.70 $ 20.00
Income (loss) from invest-
ment operations:
Net investment income 1.34 1.29 1.17 1.42 1.42
Net realized and unrealized
gain (loss) 0.29 (0.19) 2.66 (2.21) 0.66
- --------------------------------------------------------------------------------
Total income (loss) from in-
vestment operations 1.63 1.10 3.83 (0.79) 2.08
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (1.32) (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 (1.32) (1.29) (1.16) (1.62) (1.38)
- --------------------------------------------------------------------------------
Net increase (decrease) 0.31 (0.19) 2.67 (2.41) 0.70
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 21.08 $ 20.77 $ 20.96 $ 18.29 $ 20.70
- --------------------------------------------------------------------------------
Total return (d) 8.17% 5.57% 21.55% (4.04)% 10.60%
Ratio to average net assets
of (e):
Expenses, net of waivers
and reimbursements 0.36% 0.36% 0.36% 0.36% 0.36%
Expenses, before waivers
and reimbursements 0.77% 0.84% 0.84% 0.87% 0.92%
Net investment income, net
of waivers and reimburse-
ments 6.66% 6.39% 5.94% 7.31% 7.84%
Net investment income, be-
fore waivers and reim-
bursements 6.25% 5.91% 5.46% 6.80% 7.28%
Portfolio turnover rate 76.30% 101.38% 74.19% 103.09% 89.06%
Net assets at end of year
(in thousands) $460,514 $366,850 $286,301 $257,391 $245,112
- --------------------------------------------------------------------------------
</TABLE>
<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, BEGIN-
NING OF YEAR $ 20.78 $ 20.96 $ 20.21 $20.76 $20.94 $18.29 $18.74
Income (loss) from in-
vestment operations:
Net investment income 1.29 1.25 0.47 1.24 1.22 1.08 0.28
Net realized and
unrealized gain (loss) 0.28 (0.18) 0.74 0.30 (0.18) 2.66 (0.45)
- -------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.57 1.07 1.21 1.54 1.04 3.74 (0.17)
- -------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.28) (1.22) (0.45) (1.25) (1.19) (1.09) (0.28)
Return of capital -- (0.03) (0.01) -- (0.03) - -
- -------------------------------------------------------------------------------------
Total distributions to
unitholders (1.28) (1.25) (0.46) (1.25) (1.22) (1.09) (0.28)
- -------------------------------------------------------------------------------------
Net increase (decrease) 0.29 (0.18) 0.75 0.29 (0.18) 2.65 (0.45)
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 21.07 $ 20.78 $ 20.96 $21.05 $20.76 $20.94 $18.29
- -------------------------------------------------------------------------------------
Total return (d) 7.88% 5.33% 6.08% 7.74% 5.17% 21.06% (0.94)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.60% 0.60% 0.60% 0.75% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 1.01% 1.08% 1.08% 1.16% 1.23% 1.23% 1.26%
Net investment income,
net of waivers and re-
imbursements 6.39% 6.09% 5.59% 6.27% 5.99% 5.48% 6.31%
Net investment income,
before waivers and re-
imbursements 5.98% 5.61% 5.11% 5.86% 5.51% 5.00% 5.80%
Portfolio turnover rate 76.30% 101.38% 74.19% 76.30% 101.38% 74.19% 103.09%
Net assets at end of
year (in thousands) $50,554 $ 7,342 $ 3,704 $ 601 $ 220 $ 120 $ 15
- -------------------------------------------------------------------------------------
</TABLE>
(a)For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b)For the period July 3, 1995 (Class C units issue date) through November 30,
1995.
(c)For the period September 14, 1994 (Class D units issue date) through
November 30, 1994.
(d)Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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.
33
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Year Ended November 30,
INTERMEDIATE BOND PORTFOLIO
<TABLE>
<CAPTION>
Class A
--------
1997 (a)
- ------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 20.00
Income (loss) from investment operations:
Net investment income 0.38
Net realized and unrealized loss (0.15)
- ------------------------------------------------------------------
Total income from investment operations 0.23
- ------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.34)
- ------------------------------------------------------------------
Total distributions to unitholders (0.34)
- ------------------------------------------------------------------
Net decrease (0.11)
- ------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 19.89
- ------------------------------------------------------------------
Total return (b) 1.17%
Ratio to average net assets of (c):
Expenses, net of waivers and reimbursements 0.36%
Expenses, before waivers and reimbursements 2.28%
Net investment income, net of waivers and reimbursements 5.87%
Net investment income, before waivers and reimbursements 3.95%
Portfolio turnover rate 56.99%
Net assets at end of year (in thousands) $11,997
- ------------------------------------------------------------------
</TABLE>
(a) For the period August 1, 1997 (commencement of operations) through November
30, 1997.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(c) Annualized.
See accompanying notes to financial statements.
34
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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 YEAR $ 22.16 $ 21.74 $ 19.93 $ 20.00 $22.14 $21.74 $22.17
Income (loss) from in-
vestment operations:
Net investment income 1.02 1.54 1.26 0.79 0.97 1.37 0.02
Net realized and
unrealized gain (loss) (1.70) 0.43 2.28 0.01 (1.72) 0.51 (0.08)
- ---------------------------------------------------------------------------------------
Total income (loss) from
investment operations (0.68) 1.97 3.54 0.80 (0.75) 1.88 (0.06)
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income
(c) (1.01) (1.55) (1.73) (0.87) (0.99) (1.48) (0.37)
Net realized gain (0.34) -- -- -- (0.34) -- --
- ---------------------------------------------------------------------------------------
Total distributions to
unitholders (1.35) (1.55) (1.73) (0.87) (1.33) (1.48) (0.37)
- ---------------------------------------------------------------------------------------
Net increase (decrease) (2.03) 0.42 1.81 (0.07) (2.08) 0.40 (0.43)
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 20.13 $ 22.16 $ 21.74 $ 19.93 $20.06 $22.14 $21.74
- ---------------------------------------------------------------------------------------
Total return (d) (3.02)% 9.47% 18.20% 4.03% (3.38)% 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 1.52% 1.58% 1.47% 1.49% 1.91% 1.97% 1.86%
Net investment income,
net of waivers and re-
imbursements 5.61% 5.91% 5.92% 5.93% 5.36% 5.67% 3.26%
Net investment income,
before waivers and re-
imbursements 5.05% 5.29% 5.41% 5.40% 4.80% 5.05% 2.75%
Portfolio turnover rate 29.29% 33.89% 54.46% 88.65% 29.29% 33.89% 54.46%
Net assets at end of
year (in thousands) $26,383 $34,183 $32,673 $26,947 $ 91 $ 52 $ 9
- ---------------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 20, 1995 (Class D units issue date) through
November 30, 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 year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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.
35
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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 YEAR $ 20.70 $ 20.73 $ 19.53 $ 20.33 $ 20.00 $20.66 $20.71 $19.53 $19.82
Income (loss) from in-
vestment operations:
Net investment income 1.46 1.14 1.02 0.97 0.85 1.43 1.07 0.94 0.23
Net realized and
unrealized gain (loss) (0.29) (0.01) 1.19 (0.80) 0.31 (0.34) (0.02) 1.18 (0.29)
- -----------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.17 1.13 2.21 0.17 1.16 1.09 1.05 2.12 (0.06)
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.46) (1.16) (1.01) (0.97) (0.83) (1.39) (1.10) (0.94) (0.23)
Net realized gain (0.05) -- -- -- -- (0.05) -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.51) (1.16) (1.01) (0.97) (0.83) (1.44) (1.10) (0.94) (0.23)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.34) (0.03) 1.20 (0.80) 0.33 (0.35) (0.05) (1.18) (0.29)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 20.36 $ 20.70 $ 20.73 $ 19.53 $ 20.33 $20.31 $20.66 $20.71 $19.53
- -----------------------------------------------------------------------------------------------------------
Total return (c) 5.95% 5.68% 11.58% 0.84% 5.90% 5.54% 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 0.81% 0.88% 0.91% 0.95% 1.00% 1.20% 1.27% 1.30% 1.34%
Net investment income,
net of waivers and re-
imbursements 7.68% 5.83% 5.14% 4.84% 4.79% 7.48% 4.96% 4.85% 4.42%
Net investment income,
before waivers and re-
imbursements 7.23% 5.31% 4.59% 4.25% 4.15% 7.03% 4.44% 4.30% 3.83%
Portfolio turnover rate 48.49% 47.68% 54.68% 48.67% 19.48% 48.49% 47.68% 54.68% 48.67%
Net assets at end of
year (in thousands) $201,457 $153,675 $158,678 $96,209 $107,550 $ 891 $ 343 $ 13 $ 1
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 14, 1994 (Class D units issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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.
36
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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 YEAR $ 20.07 $ 20.08 $ 19.05 $ 20.07 $ 20.00
Income (loss) from invest-
ment operations:
Net investment income 1.21 1.02 1.05 0.91 0.55
Net realized and
unrealized gain (loss) (0.07) (0.01) 1.02 (1.02) 0.05
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.14 1.01 2.07 (0.11) 0.60
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.22) (1.02) (1.04) (0.91) (0.53)
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.22) (1.02) (1.04) (0.91) (0.53)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.08) (0.01) 1.03 (1.02) 0.07
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 19.99 $ 20.07 $ 20.08 $ 19.05 $ 20.07
- --------------------------------------------------------------------------------
Total return (d) 5.93% 5.15% 11.18% (0.57)% 3.00%
Ratio to average net assets
of (e):
Expenses, net of waivers
and reimbursements 0.36% 0.36% 0.36% 0.36% 0.43%
Expenses, before waivers
and reimbursements 0.85% 0.94% 1.09% 1.12% 1.18%
Net investment income, net
of waivers and reimburse-
ments 5.86% 5.22% 5.43% 4.62% 4.18%
Net investment income, be-
fore waivers and reim-
bursements 5.37% 4.64% 4.70% 3.86% 3.43%
Portfolio turnover rate 95.73% 119.75% 141.14% 45.55% 20.59%
Net assets at end of year
(in thousands) $43,073 $92,351 $56,329 $25,293 $32,479
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------- -------------------------------
1997 1996 (b) 1997 1996 1995 1994 (c)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF YEAR $20.06 $20.13 $20.03 $20.04 $19.05 $19.43
Income (loss) from invest-
ment operations:
Net investment income 1.14 0.91 1.16 0.96 0.96 0.22
Net realized and unrealized
gain (loss) (0.04) (0.12) (0.10) (0.03) 1.00 (0.38)
- --------------------------------------------------------------------------------
Total income (loss) from in-
vestment operations 1.10 0.79 1.06 0.93 1.96 (0.16)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (1.18) (0.86) (1.15) (0.94) (0.97) (0.22)
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.18) (0.86) (1.15) (0.94) (0.97) (0.22)
- --------------------------------------------------------------------------------
Net increase (decrease) (0.08) (0.07) (0.09) (0.01) 0.99 (0.38)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $19.98 $20.06 $19.94 $20.03 $20.04 $19.05
- --------------------------------------------------------------------------------
Total return (d) 5.67% 4.05% 5.52% 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 1.09% 1.18% 1.24% 1.33% 1.48% 1.51%
Net investment income, net
of waivers and reimburse-
ments 5.63% 4.97% 5.50% 4.83% 5.08% 4.65%
Net investment income, be-
fore waivers and reim-
bursements 5.14% 4.39% 5.01% 4.25% 4.35% 3.89%
Portfolio turnover rate 95.73% 119.75% 95.73% 119.75% 141.14% 45.55%
Net assets at end of year
(in thousands) $3,118 $3,535 $ 312 $ 225 $ 67 $ 13
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period April 5, 1993 (commencement of operations) through November
30, 1993.
(b) For the period December 29, 1995 (Class C units issue date) through
November 30, 1996.
(c) For the period September 15, 1994 (Class D units issue date) through
November 30, 1994.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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.
37
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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 YEAR $ 20.60 $ 20.78 $ 18.77 $ 21.05 $ 20.00 $20.57 $20.75 $18.77 $18.80
Income (loss) from in-
vestment operations:
Net investment income 1.26 1.19 1.11 1.15 0.95 1.20 1.17 1.00 0.09
Net realized and
unrealized gain (loss) 0.20 (0.18) 2.01 (1.93) 1.02 0.18 (0.24) 2.03 (0.03)
- ---------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.46 1.01 3.12 (0.78) 1.97 1.38 0.93 3.03 0.06
- ---------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.25) (1.19) (1.11) (1.14) (0.92) (1.18) (1.11) (1.05) (0.09)
Net realized gain -- -- -- (0.36) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.25) (1.19) (1.11) (1.50) (0.92) (1.18) (1.11) (1.05) (0.09)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.21 (0.18) 2.01 (2.28) 1.05 0.20 (0.18) 1.98 (0.03)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 20.81 $ 20.60 $ 20.78 $ 18.77 $ 21.05 $20.77 $20.57 $20.75 $18.77
- ---------------------------------------------------------------------------------------------------------
Total return (c) 7.44% 5.10% 16.95% (3.80)% 9.94% 7.03% 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 0.82% 1.04% 0.89% 0.79% 0.83% 1.21% 1.43% 1.28% 1.18%
Net investment income,
net of waivers and
reimbursements 6.36% 5.93% 5.09% 5.60% 5.11% 6.07% 5.57% 5.41% 6.05%
Net investment income,
before waivers and
reimbursements 5.80% 5.15% 4.46% 5.07% 4.54% 5.51% 4.79% 4.78% 5.52%
Portfolio turnover rate 72.61% 42.49% 80.36% 52.80% 77.75% 72.61% 42.49% 80.36% 52.80%
Net assets at end of
year (in thousands) $33,839 $26,273 $17,674 $37,305 $71,456 $1,707 $ 848 $ 286 $ --
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period November 16, 1994 (Class D units issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the year. 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.
38
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
BALANCED PORTFOLIO
<C> <S> <C>
COMMON STOCKS--57.1%
BANKING--1.2%
13,200 Banc One Corp. $ 678
-------
BROKERAGE AND FINANCIAL SERVICES--1.4%
21,000 Schwab (Charles) Corp. 810
-------
COMMUNICATIONS--3.9%
20,600 Ameritech Corp. 1,587
4,000 Lucent Technologies 321
9,000 Snyder Communications Inc. 305
-------
2,213
-------
COMPUTERS AND OFFICE MACHINES--4.3%
11,300 Cisco Systems, Inc.* 975
6,600 Hewlett-Packard Co. 403
7,300 Microsoft Corp. 1,033
-------
2,411
-------
CONSUMER PRODUCTS--3.2%
4,500 Gillette Co. 415
9,800 Procter & Gamble Co. 748
22,700 Staples, Inc. 640
-------
1,803
-------
CREDIT INSTITUTIONS--0.7%
14,000 MBNA Corp. 371
-------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--6.0%
5,500 Emerson Electric Co. 303
19,400 General Electric Co. 1,430
9,700 Intel Corp. 753
10,300 Linear Technology Corp. 663
7,000 Solectron Corp. 255
-------
3,404
-------
FOOD AND BEVERAGE--2.8%
5,000 Coca-Cola (The) Co. 313
14,400 PepsiCo, Inc. 531
17,700 Philip Morris Cos., Inc. 770
-------
1,614
-------
HEALTH SERVICES--6.3%
6,000 Cardinal Health, Inc. 455
37,950 Health Management Associates, Inc., Class A* 930
11,000 Health South Rehabilitation Corp. 289
13,200 Johnson & Johnson Co. 831
15,400 Medtronic, Inc. 735
11,000 Omnicare, Inc. 318
-------
3,558
-------
INSURANCE SERVICES--2.9%
8,100 American International Group, Inc. 817
13,400 MBIA, Inc. 843
-------
1,660
-------
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ----------------------------------------------------------
<C> <S> <C>
MORTGAGE AGENCIES--1.7%
17,900 Fannie Mae $ 945
-------
OIL AND GAS--5.9%
6,600 Chevron Corp. 529
13,400 Exxon Corp. 817
14,800 Royal Dutch Petroleum Co. ADR 780
14,600 Schlumberger Ltd. ADR 1,202
-------
3,328
-------
PHARMACEUTICALS--3.5%
2,800 Bristol-Myers Squibb Co. 262
9,400 Merck & Co., Inc. 889
6,000 Warner-Lambert Co. 839
-------
1,990
-------
PROFESSIONAL SERVICE--4.8%
6,000 Accustaff 177
14,400 Cintas Corp. 560
6,800 Computer Sciences Corp.* 538
12,000 Newell Co. 490
19,050 Oracle Systems Corp.* 635
8,000 Paychex, Inc. 328
-------
2,728
-------
RECREATION AND LEISURE SERVICES--0.6%
6,500 Carnival Corp. Class A 351
-------
RETAIL--7.9%
13,400 Consolidated Stores Corp. 652
6,000 Fastenal 318
12,150 Home Depot (The), Inc. 680
20,400 Starbucks Corp.* 711
39,000 Walgreen Co. 1,255
20,000 Wal-Mart Stores, Inc. 799
-------
4,415
- ----------------------------------------------------------
TOTAL COMMON STOCKS (Cost $20,481) $32,279
- ----------------------------------------------------------
PREFERRED STOCK--1.8%
AGENCY--1.8%
1,000 Home Ownership Funding Corp. $ 994
- ----------------------------------------------------------
TOTAL PREFERRED STOCK (Cost $1,000) $ 994
- ----------------------------------------------------------
ASSET-BACKED SECURITIES--2.8%
AUTOMOTIVE--2.8%
Olympic Automobile Receivables Trust,
Series 1995-D, Class A-3
$ 132 5.950% Due 11/15/99 $ 132
Series 1996-D, Class A-4
600 6.050 Due 08/15/02 600
Premier Auto Trust,
Series 1994-1, Class A-3
26 4.750 Due 02/02/00 26
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Principal Amount Description Value
- -------------------------------------
BALANCED PORTFOLIO--CONTINUED
<S> <C> <C>
Western Financial Grantor Trust,
Series 1994-4, Class A-1
$ 73 7.100% Due 01/01/00 $ 73
Series 1995-5, Class A-1
349 5.875 Due 03/01/02 349
Western Financial Owner Trust,
Series 1997-A Class A-3
400 6.500 Due 09/20/01 403
- -----------------------------------------------------
TOTAL ASSET-BACKED SECURITIES (Cost $1,580) $1,583
- -----------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--2.1%
Donaldson, Lufkin & Jenrette
Mortgage Acceptance Corp.
Series 1994-Q8, Class 2-A1
$248 7.250% Due 05/25/24 $ 249
Financial Asset Securitization, Inc.
Series 1997-NAMC, Class FXA-3
900 7.350 Due 04/25/27 909
- -----------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $1,141) $1,158
- -----------------------------------------------------
CORPORATE AND FOREIGN GOVERNMENT BONDS--11.0%
FINANCIAL--5.1%
Finova Capital, Corp.
$500 6.190% Due 10/20/99 $ 499
Lehman Brothers Holdings, Inc.
570 7.375 Due 05/15/07 585
Lehman Brothers Holdings, Inc.
Medium Term Note
305 6.900 Due 01/29/01 309
Lumbermens Mutual Casualty Co.
115 9.150 Due 07/01/26 131
235 8.300 Due 12/01/37 240
Petrozvata Financial, Inc.,
Series: Class B
600 8.220 Due 04/01/17, putable 05/15/00 632
Salomon, Inc. Medium Term Note
500 5.500 Due 01/31/98 499
------
2,895
------
INDUSTRIAL--1.5%
Penney (J. C.), Inc.
830 6.900 Due 08/15/26, putable 08/15/03 854
------
SANITARY SERVICES--1.5%
WMX Technologies, Inc.
800 7.100 Due 08/01/26, putable 08/01/03 840
------
SOVEREIGN--1.1%
Quebec Province, Canada Medium Term Note
600 7.220 Due 07/22/36, putable 07/22/06 634
------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -----------------------------------------------------------
<C> <S> <C>
UTILITY--1.8%
Tenaga Nasional Berhad
$1,000 7.200% Due 04/29/07, putable 04/29/02 $ 997
- -----------------------------------------------------------
TOTAL CORPORATE AND FOREIGN GOVERNMENT BONDS
(Cost $6,087) $ 6,220
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCIES--2.3%
FANNIE MAE REMIC TRUST--2.3%
Series 1991-37, Class G
$ 243 8.150% Due 08/25/05 $ 245
Series 1992-200, Class E
490 6.250 Due 06/25/17 489
Series 1996-M4, Class A
554 7.750 Due 03/17/17 569
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES (Cost $1,273) $ 1,303
- -----------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--12.7%
U.S. TREASURY NOTES--12.7%
$1,435 6.750% Due 05/31/99 $ 1,455
175 6.250 Due 05/31/00 177
1,325 7.750 Due 02/15/01 1,398
1,550 6.625 Due 06/30/01 1,588
1,525 6.625 Due 07/31/01 1,563
200 6.250 Due 02/15/03 203
690 7.500 Due 02/15/05 754
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $7,069) $ 7,138
- -----------------------------------------------------------
FLOATING RATE BANK NOTES--3.3%
Lloyds Bank PLC
$1,000 6.188% Due 12/15/97 $ 899
National Westminster Bank
1,100 6.000 Due 02/27/98 974
- -----------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $1,850) $ 1,873
- -----------------------------------------------------------
SHORT-TERM INVESTMENT--6.2%
Banco Central Hispanoamericano,
Grand Cayman
$3,485 5.750% Due 12/01/97 $ 3,485
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $3,485) $ 3,485
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.3%
(Cost $43,966) $56,033
- -----------------------------------------------------------
Other assets, less liabilities--0.7% 351
- -----------------------------------------------------------
NET ASSETS--100.0% $56,384
- -----------------------------------------------------------
- -----------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--95.8%
BANKING--4.3%
36,940 Banc One Corp. $ 1,898
15,000 BankAmerica Corp. 1,095
11,000 Citicorp 1,319
8,200 Wells Fargo & Co. 2,519
--------
6,831
--------
BROKERAGE SERVICES--1.6%
64,000 Schwab (Charles) Corp. 2,468
--------
COMMUNICATIONS--3.5%
24,000 Ameritech Corp. 1,849
34,000 BellSouth Corp. 1,862
25,000 SBC Communications, Inc. 1,820
--------
5,531
--------
COMPUTERS AND OFFICE MACHINES--8.2%
26,300 Cisco Systems, Inc.* 2,268
21,000 Compaq Computer Corp. 1,311
14,000 International Business Machines Corp. 1,534
25,000 McAfee Associates, Inc.* 1,144
31,800 Microsoft Corp. 4,500
69,450 Oracle Systems Corp.* 2,313
--------
13,070
--------
CONSUMER PRODUCTS--5.8%
84,700 Newell Co. 3,457
78,000 Philip Morris Cos., Inc. 3,393
31,500 Procter & Gamble Co. 2,404
--------
9,254
--------
CREDIT INSTITUTIONS--1.0%
58,400 MBNA Corp. 1,551
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--10.0%
35,000 Emerson Electric Co. 1,925
71,000 General Electric Co. 5,236
44,800 Intel Corp. 3,478
39,900 Linear Technology Corp. 2,569
20,000 Motorola, Inc. 1,258
40,000 Solectron Corp. 1,458
--------
15,924
--------
FOOD AND BEVERAGES--2.4%
28,000 Coca-Cola (The) Co. 1,750
55,800 PepsiCo, Inc. 2,058
--------
3,808
--------
HEALTH SERVICES--7.3%
24,000 Cardinal Health Inc. 1,818
122,500 Health Management Associates, Inc., Class A* 3,001
86,000 HEALTHSOUTH Corp. 2,257
33,000 Johnson & Johnson Co. 2,077
85,000 Omnicare, Inc. 2,454
--------
11,607
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--1.4%
36,600 Hewlett-Packard Co. $ 2,235
--------
INSURANCE SERVICES--4.1%
35,850 American International Group, Inc. 3,614
46,800 MBIA, Inc. 2,942
--------
6,556
--------
MORTGAGE AGENCIES--3.2%
75,700 Fannie Mae 3,998
25,000 Freddie Mac 1,031
--------
5,029
--------
OIL AND GAS--11.4%
32,000 Chevron Corp. 2,566
72,800 Exxon Corp. 4,441
59,700 Mobil Corp. 4,295
54,800 Royal Dutch Petroleum Co. ADR 2,887
48,800 Schlumberger Ltd. ADR 4,017
--------
18,206
--------
PHARMACEUTICALS--7.2%
25,000 Abbott Laboratories 1,625
19,000 Bristol-Myers Squibb Co. 1,779
24,000 Lilly (Eli) & Co. 1,514
30,400 Merck & Co., Inc. 2,875
33,200 Pfizer, Inc. 2,415
9,000 Warner-Lambert Co. 1,259
--------
11,467
--------
PROFESSIONAL SERVICES--6.5%
50,000 AccuStaff, Inc.* 1,478
68,400 Cintas Corp. 2,659
22,400 Computer Sciences Corp.* 1,774
60,000 Paychex, Inc. 2,460
60,000 Snyder Communications, Inc. 2,036
--------
10,407
--------
RECREATION AND LEISURE SERVICES--2.7%
49,900 Carnival Corp., Class A 2,698
16,000 Disney (The Walt) Co. 1,519
--------
4,217
--------
RETAIL--13.4%
60,000 Consolidated Stores Corp.* 2,917
30,000 Fastenal Co. 1,590
57,050 Home Depot (The), Inc. 3,191
23,000 Kohl's Corp.* 1,665
95,850 Staples, Inc.* 2,702
59,000 Starbucks Corp.* 2,057
85,700 Wal-Mart Stores, Inc. 3,423
118,600 Walgreen Co. 3,817
--------
21,362
--------
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares and number of contracts)
<TABLE>
<CAPTION>
Shares/ Principal Amount Description Value
- ---------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO--CONTINUED
<C> <S> <C>
TELECOMMUNICATIONS--1.8%
22,000 Lucent Technologies, Inc. $ 1,763
20,000 Tellabs, Inc.* 1,040
--------
2,803
- -----------------------------------------------------
TOTAL COMMON STOCKS (Cost $101,155) $152,326
- -----------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 230 4.930% Due 01/02/98 $ 229
- -----------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $229) $ 229
- -----------------------------------------------------
SHORT-TERM INVESTMENT--5.2%
Banco Central Hispanoamericano,
Grand Cayman
$ 8,273 5.750% Due 12/01/97 $ 8,273
- -----------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $8,273) $ 8,273
- -----------------------------------------------------
TOTAL INVESTMENTS--101.1%
(Cost $109,657) $160,828
- -----------------------------------------------------
Liabilities, less other assets--(1.1)% (1,749)
- -----------------------------------------------------
NET ASSETS--100.0% $159,079
- -----------------------------------------------------
- -----------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Unrealized
Number of Contract Contract Contract Gain
Type Contracts Amount Position Expiration (Loss)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 14 $2,958 Long 12/19/97 $ 65
S&P MIDCAP 20 3,341 Long 12/19/97 (131)
- ---------------------------------------------------------------------------------
$ (66)
- ---------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
# Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--96.8%
AGRICULTURE--0.1%
8,200 Pioneer Hi-Bred International, Inc. $ 837
--------
APPAREL--0.1%
8,700 Liz Claiborne, Inc. 437
15,800 VF Corp. 730
--------
1,167
--------
BANKING--7.7%
12,200 Ahmanson (H. F.) & Co. 726
72,849 Banc One Corp. 3,743
47,500 Bank of New York Co., Inc. 2,553
87,352 BankAmerica Corp. 6,377
18,200 BankBoston Corp. 1,622
12,400 Bankers Trust New York Corp. 1,470
24,900 Barnett Banks, Inc. 1,752
52,946 Chase Manhattan Corp. 5,751
57,300 Citicorp 6,872
13,200 Comerica, Inc. 1,124
25,300 CoreStates Financial Corp. 1,956
19,250 Fifth Third Bancorp 1,357
37,007 First Chicago NBD Corp. 2,896
70,230 First Union Corp. 3,424
7,100 Golden West Financial Corp. 636
23,900 Huntington Bancshares, Inc. 813
27,200 KeyCorp 1,834
31,500 Mellon Bank Corp. 1,786
22,400 Morgan (J. P.) & Co., Inc. 2,558
26,900 National City Corp. 1,796
89,060 NationsBank Corp. 5,349
93,700 Norwest Corp. 3,508
38,400 PNC Bank Corp. 2,066
6,900 Republic New York Corp. 750
20,100 State Street Corp. 1,196
26,700 SunTrust Banks, Inc. 1,896
30,639 U.S. Bancorp 3,296
21,000 Wachovia Corp. 1,617
10,966 Wells Fargo & Co. 3,369
--------
74,093
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
35,718 Houston Industries, Inc. 846
1,000 NACCO Industries, Inc. 109
--------
955
--------
BROKERAGE AND FINANCIAL SERVICES--1.9%
58,600 American Express Co. 4,622
33,050 Charles Schwab Corp. 1,274
31,301 Fleet Financial Group, Inc. 2,068
17,000 Green Tree Financial Corp. 521
41,400 Merrill Lynch & Co., Inc. 2,906
73,349 Morgan Stanley, Dean Witter, Discover & Co. 3,984
21,900 Synovus Financial Corp. 699
31,290 Washington Mutual, Inc. 2,163
--------
18,237
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
CHEMICALS AND ALLIED PRODUCTS--10.5%
96,200 Abbott Laboratories $ 6,253
13,700 Air Products and Chemicals, Inc. 1,051
8,100 Allergan, Inc. 274
81,100 American Home Products Corp. 5,667
33,200 Amgen, Inc.* 1,697
34,900 Baxter International, Inc. 1,767
124,600 Bristol-Myers Squibb Co. 11,666
12,900 Clorox Co. 1,001
37,000 Colgate-Palmolive Co. 2,472
28,500 Dow Chemical Co. 2,814
141,400 du Pont (E. I.) de Nemours & Co. 8,564
9,775 Eastman Chemical Co. 590
8,100 Ecolab, Inc. 413
4,700 FMC Corp.* 343
6,800 Goodrich (B. F.) Co. 303
9,100 Grace (W. R.) & Co. 662
7,500 Great Lakes Chemical Corp. 337
12,400 Hercules, Inc. 602
13,700 International Flavors & Fragrances, Inc. 660
139,096 Lilly (Eli) & Co. 8,772
151,000 Merck & Co., Inc. 14,279
17,500 Morton International, Inc. 596
8,400 Nalco Chemical Co. 326
161,600 Pfizer, Inc. 11,756
63,520 Pharmacia & Upjohn, Inc. 2,144
22,400 PPG Industries, Inc. 1,298
19,800 Praxair, Inc. 870
7,700 Rohm & Haas Co. 708
91,600 Schering-Plough Corp. 5,742
21,600 Sherwin-Williams Co. 617
12,500 Sigma-Aldrich Corp. 452
15,500 Union Carbide Corp. 684
33,900 Warner-Lambert Co. 4,742
--------
100,122
--------
COMMUNICATIONS--8.3%
63,000 AirTouch Communications, Inc.* 2,473
23,400 Alltel Corp. 930
68,800 Ameritech Corp. 5,302
203,100 AT&T Corp. 11,348
97,080 Bell Atlantic Corp. 8,664
124,000 BellSouth Corp. 6,789
12,300 Clear Channel Communications, Inc.* 833
43,600 Comcast Corp., Class A 1,221
20,500 Frontier Corp. 502
119,600 GTE Corp. 6,047
24,800 HBO & Co. 1,113
80,264 Lucent Technologies, Inc. 6,431
9,200 Mallinckrodt, Inc. 340
86,500 MCI Communications Corp. 3,801
18,400 NextLevel Systems, Inc.* 244
11,700 Providian Corp. 516
114,256 SBC Communications, Inc. 8,319
53,800 Sprint Corp. 3,151
22,600 Tellabs, Inc.* 1,175
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
59,900 US West Communications Group $ 2,707
75,800 US West Media Group* 2,013
44,100 Viacom, Inc., Class B* 1,544
112,800 WorldCom, Inc.* 3,610
--------
79,073
--------
COMPUTERS AND OFFICE MACHINES--6.5%
9,100 Adobe Systems, Inc. 382
15,900 Apple Computer, Inc.* 282
26,300 Bay Networks, Inc.* 791
19,700 Cabletron Systems, Inc.* 453
10,100 Ceridian Corp.* 443
83,700 Cisco Systems, Inc.* 7,219
94,495 Compaq Computer Corp. 5,900
5,900 Data General Corp.* 106
41,400 Dell Computer Corp.* 3,485
19,100 Digital Equipment Corp.* 941
61,600 EMC Corp.* 1,867
122,800 International Business Machines Corp. 13,454
149,800 Microsoft Corp. 21,197
15,900 Parametric Technology Co.* 804
18,000 Pitney Bowes, Inc. 1,513
30,600 Seagate Technology, Inc.* 694
22,100 Silicon Graphics, Inc.* 290
13,300 Tandy Corp. 572
43,100 3Com Corp.* 1,562
21,900 Unisys Corp.* 313
--------
62,268
--------
CONSTRUCTION--0.2%
13,900 Dover Corp. 932
21,900 Dresser Industries, Inc. 819
--------
1,751
--------
CONSUMER PRODUCTS--5.0%
16,600 Avon Products, Inc. 960
21,400 Fortune Brands, Inc. 774
70,000 Gillette Co. 6,462
166,400 Johnson & Johnson 10,473
69,584 Kimberly-Clark Corp. 3,623
303,000 Philip Morris Cos., Inc. 13,181
168,900 Procter & Gamble Co. 12,889
--------
48,362
--------
CREDIT INSTITUTIONS--0.6%
6,600 Beneficial Corp. 512
13,400 Countrywide Credit Industries, Inc. 549
13,400 Household International, Inc. 1,688
62,687 MBNA Corp. 1,665
14,300 MGIC Investment Corp. 836
--------
5,250
--------
ELECTRONICS AND ELECTRICAL EQUIPMENT--7.4%
17,600 Advanced Micro Devices, Inc.* 384
27,456 AMP, Inc. 1,193
11,230 Andrew Corp.* 298
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
45,600 Applied Materials, Inc.* $ 1,505
15,300 Cooper Industries, Inc. 790
14,700 DSC Communications Corp.* 332
55,500 Emerson Electric Co. 3,053
409,400 General Electric Co. 30,193
10,000 Harris Corp. 474
204,200 Intel Corp. 15,851
14,600 ITT Corp.* 1,108
10,500 Kla-Tencor Corp.* 407
17,700 LSI Logic Corp.* 412
12,300 Maytag Corp. 397
26,300 Micron Technology, Inc.* 654
74,400 Motorola, Inc. 4,678
20,200 National Semiconductor Corp.* 669
5,600 National Service Industries, Inc. 262
32,800 Northern Telecom Ltd. 2,946
5,500 Raychem Corp. 520
9,700 Scientific-Atlanta, Inc. 194
63,300 Tele-Communications, Inc.* 1,450
48,000 Texas Instruments, Inc. 2,364
6,900 Thomas & Betts Corp. 313
9,300 Whirlpool Corp. 510
--------
70,957
--------
FOOD AND BEVERAGES--6.7%
61,500 Anheuser-Busch Cos., Inc. 2,656
70,029 Archer-Daniels-Midland Co. 1,497
8,600 Brown-Forman Corp., Class B 442
57,500 Campbell Soup Co. 3,220
310,200 Coca-Cola (The) Co. 19,387
59,100 ConAgra, Inc. 2,124
4,600 Coors (Adolph) Co., Class B 166
18,000 CPC International, Inc. 1,861
20,000 General Mills, Inc. 1,480
46,200 Heinz (H. J.) Co. 2,313
17,900 Hershey Foods Corp. 1,099
51,600 Kellogg Co. 2,393
86,000 McDonalds Corp. 4,171
191,400 PepsiCo, Inc. 7,058
17,200 Quaker Oats Co. 912
13,300 Ralston-Ralston Purina Group 1,237
60,100 Sara Lee Corp. 3,178
46,400 Seagram (The) Co. Ltd. 1,499
19,130 Tricon Global Restaurants* 647
80,000 Unilever N.V. 4,645
23,000 UST, Inc. 710
12,700 Whitman Corp. 334
14,500 Wrigley (Wm.) Jr. Co. 1,147
--------
64,176
--------
FURNITURE--0.1%
20,600 Masco Corp. 971
--------
GENERAL BUILDING CONTRACTORS--0.1%
3,600 Centex Corp. 228
15,900 Honeywell, Inc. 1,041
4,800 Kaufman & Broad Home Corp. 104
--------
1,373
--------
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
GLASS, CLAY AND STONE PRODUCTS--0.2%
28,900 Corning, Inc. $ 1,226
19,900 Newell Co. 812
--------
2,038
--------
HEALTH SERVICES--1.1%
10,600 ALZA Corp.* 283
13,800 Beverly Enterprises, Inc.* 235
81,795 Columbia/HCA Healthcare Corp. 2,413
18,500 Guidant Corp. 1,189
48,400 HEALTHSOUTH Corp.* 1,271
20,500 Humana, Inc.* 455
7,950 Manor Care, Inc. 280
58,500 Medtronic, Inc. 2,793
11,500 St. Jude Medical, Inc.* 341
37,900 Tenet Healthcare Corp.* 1,201
--------
10,461
--------
HEAVY CONSTRUCTION--0.2%
10,500 Fluor Corp. 377
5,100 Foster Wheeler Corp. 157
31,700 Halliburton Co. 1,710
--------
2,244
--------
INDUSTRIAL INSTRUMENTS--2.1%
7,200 Bard (C. R.), Inc. 216
6,900 Bausch & Lomb, Inc. 273
15,300 Becton, Dickinson & Co. 789
13,900 Biomet, Inc. 332
24,300 Boston Scientific Corp.* 1,098
40,700 Eastman Kodak Co. 2,467
130,100 Hewlett-Packard Co. 7,944
10,500 Johnson Controls, Inc. 481
5,400 Millipore Corp. 209
5,500 Perkin-Elmer Corp. 383
5,700 Polaroid Corp. 242
29,600 Raytheon Co. 1,656
6,200 Tektronix, Inc. 260
9,200 United States Surgical Corp. 243
40,700 Xerox Corp., Inc. 3,162
--------
19,755
--------
INSURANCE SERVICES--4.7%
18,757 Aetna, Inc. 1,414
54,365 Allstate Corp. 4,669
31,070 American General Corp. 1,674
87,712 American International Group, Inc. 8,842
20,900 Aon Corp. 1,106
21,600 Chubb Corp. 1,532
9,300 CIGNA Corp. 1,555
23,500 Conseco, Inc. 1,094
10,000 General Re Corp. 1,985
14,800 Hartford Financial Services Group, Inc. 1,240
8,825 Jefferson-Pilot Corp. 673
12,700 Lincoln National Corp. 906
14,400 Loews Corp. 1,528
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------
<C> <S> <C>
21,100 Marsh & McLennan Cos., Inc. $ 1,571
11,200 MBIA, Inc. 704
9,000 Progressive Corp. 918
17,400 SAFECO Corp. 850
10,500 St. Paul Cos., Inc. 840
24,400 SunAmerica, Inc. 988
17,300 Torchmark Corp. 706
7,900 Transamerica Corp. 858
143,037 Travelers Group, Inc. 7,223
23,500 United Healthcare Corp. 1,223
17,400 UNUM Corp. 825
13,900 USF&G Corp. 281
--------
45,205
--------
JEWELRY AND PRECIOUS METALS--0.0%
4,900 Jostens, Inc. 118
--------
LUMBER AND WOOD PRODUCTS--0.0%
13,700 Louisiana-Pacific Corp. 277
--------
MACHINERY--1.3%
21,100 Baker Hughes, Inc. 884
11,800 Black & Decker Corp. 434
3,200 Briggs & Stratton Corp. 164
12,400 Brunswick Corp. 415
9,300 Case Corp. 577
47,100 Caterpillar, Inc. 2,258
5,000 Cincinnati Milacron, Inc. 148
4,800 Cummins Engine Co., Inc. 309
31,500 Deere & Co. 1,727
6,300 General Signal Corp. 257
6,200 Harnischfeger Industries, Inc. 237
20,750 Ingersoll-Rand Co. 848
21,300 Tenneco, Inc. 923
18,800 Thermo Electron Corp.* 692
7,900 Timken (The) Co. 280
66,600 Tyco International Ltd. 2,614
--------
12,767
--------
MANUFACTURING--0.1%
3,500 Aeroquip-Vickers, Inc. 179
7,000 Alberto-Culver Co., Class B 218
14,800 ITT Industries, Inc. 470
2,600 Pulte Corp. 105
--------
972
--------
MERCHANDISE--GENERAL--0.1%
7,600 Snap-On, Inc. 334
11,100 Stanley Works (The) 489
--------
823
--------
METAL MINING--0.3%
46,600 Barrick Gold Corp. 772
28,700 Battle Mountain Gold Co. 145
11,650 Cyprus Amax Minerals Co. 213
17,200 Echo Bay Mines Ltd.* 40
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
24,900 Freeport-McMoRan Copper & Gold, Inc., Class B $ 521
18,300 Homestake Mining Co. 192
20,900 Inco, Ltd. 398
19,497 Newmont Mining Corp. 586
29,900 Placer Dome, Inc. 366
--------
3,233
--------
METAL PRODUCTS--0.2%
22,027 Allegheny Teledyne, Inc. 567
3,800 Ball Corp. 146
5,700 Crane Co. 240
6,900 McDermott International, Inc. 217
13,925 Parker-Hannifin Corp. 620
--------
1,790
--------
MORTGAGE AGENCIES--1.1%
132,700 Fannie Mae 7,008
86,900 Freddie Mac 3,585
--------
10,593
--------
NATURAL GAS--0.7%
11,300 Apache Corp. 415
13,300 Coastal Corp. 779
6,900 Columbia Gas System, Inc. 502
11,900 Consolidated Natural Gas Co. 718
2,500 Eastern Enterprises 101
38,300 Enron Corp. 1,484
6,100 NICOR, Inc. 246
3,500 ONEOK, Inc. 131
10,400 Pacific Enterprises 368
4,400 Peoples Energy Corp. 161
10,700 Sonat, Inc. 466
19,850 Williams (The) Cos., Inc. 1,061
--------
6,432
--------
OFFICE EQUIPMENT--0.1%
16,600 Ikon Office Solutions, Inc. 505
--------
OIL AND GAS--5.2%
7,500 Anadarko Petroleum Corp. 487
22,052 Burlington Resources, Inc. 981
81,900 Chevron Corp. 6,567
309,400 Exxon Corp. 18,873
3,100 Helmerich & Payne, Inc. 236
41,400 Occidental Petroleum Corp. 1,229
13,200 Oryx Energy Co.* 356
10,800 Rowan Cos., Inc.* 367
268,100 Royal Dutch Petroleum Co. 14,126
61,900 Schlumberger Ltd. 5,095
31,776 Union Pacific Resources Group, Inc. 790
6,700 Western Atlas, Inc.* 466
--------
49,573
--------
PACKAGING AND CONTAINER PRODUCTS--0.1%
16,000 Crown Cork & Seal Co., Inc. 781
17,500 Owens-Illinois, Inc.* 593
--------
1,374
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
PAPER PRODUCTS--1.4%
12,900 Avery Dennison Corp. $ 540
6,600 Bemis Co., Inc. 278
7,000 Boise Cascade Co. 236
12,000 Champion International Corp. 643
23,600 Fort James, Corp. 923
11,400 Georgia-Pacific Corp. 973
37,835 International Paper Co. 1,795
6,500 Mead Corp. 420
52,000 Minnesota Mining & Manufacturing Co. 5,067
12,404 Stone Container Corp.* 155
7,100 Temple-Inland, Inc. 406
8,700 Union Camp Corp. 523
12,750 Westvaco Corp. 416
24,900 Weyerhaeuser Co. 1,315
--------
13,690
--------
PERSONAL SERVICES--0.6%
13,000 Block (H&R), Inc. 533
19,900 HFS, Inc.* 1,366
31,300 Hilton Hotels Corp. 974
15,900 Marriot International, Inc. 1,152
31,500 Service Corp. International 1,152
13,900 Willamette Industries, Inc. 488
--------
5,665
--------
PETROLEUM--2.7%
11,500 Amerada Hess Corp. 644
61,400 Amoco Corp. 5,526
9,300 Ashland, Inc. 434
40,100 Atlantic Richfield Co. 3,268
6,000 Kerr-McGee Corp. 398
98,300 Mobil Corp. 7,071
5,900 Pennzoil Co. 393
32,900 Phillips Petroleum Co. 1,594
9,100 Sun Co., Inc. 368
66,000 Texaco, Inc. 3,729
30,900 Unocal Corp. 1,230
36,000 USX--Marathon Group 1,233
--------
25,888
--------
PRINTING AND PUBLISHING--1.3%
9,400 American Greetings Corp. 345
10,300 Deluxe Corp. 364
18,300 Donnelley (RR) & Sons Co. 645
12,000 Dow Jones & Co., Inc. 607
35,400 Gannett Co., Inc. 2,055
3,800 Harland (John H.) Co. 79
10,900 Knight-Ridder, Inc. 546
12,400 McGraw Hill Cos., Inc. 849
6,700 Meredith Corp. 234
11,100 Moore Corp. Ltd. 173
12,000 New York Times Co., Class A 713
70,000 Time Warner, Inc. 4,078
12,000 Times Mirror Co., Class A 713
15,300 Tribune Co. 863
--------
12,264
--------
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
PROFESSIONAL SERVICES--1.9%
6,000 Autodesk, Inc. $ 231
36,600 Automatic Data Processing, Inc. 2,059
68,325 Computer Associates International, Inc. 3,557
9,600 Computer Sciences Corp.* 760
51,225 CUC International, Inc.* 1,473
18,900 Equifax, Inc. 645
55,500 First Data Corp. 1,571
15,600 Interpublic Group of Cos., Inc. 748
43,700 Novell, Inc.* 404
122,500 Oracle Corp.* 4,081
9,700 Ryder System, Inc. 352
7,300 Safety-Kleen Corp. 203
3,100 Shared Medical Systems Corp. 198
46,100 Sun Microsystems, Inc.* 1,660
--------
17,942
--------
RECREATION AND LEISURE SERVICES--1.1%
84,400 Disney (The Walt) Co. 8,013
8,800 Harcourt General, Inc. 482
12,600 Harrah's Entertainment, Inc.* 253
4,600 King World Productions, Inc.* 250
36,345 Mattel, Inc. 1,456
22,400 Mirage Resorts, Inc.* 532
--------
10,986
--------
RESEARCH AND CONSULTING SERVICES--0.2%
20,500 Cognizant Corp. 879
21,300 Dun & Bradstreet (The) Corp. 596
5,700 EG&G, Inc. 112
--------
1,587
--------
RETAIL--5.0%
30,700 Albertson's, Inc. 1,362
34,000 American Stores Co. 674
18,900 Autozone, Inc.* 567
13,200 Charming Shoppes, Inc.* 65
12,300 Circuit City Stores, Inc. 404
26,603 Costco Companies, Inc.* 1,179
21,500 CVS Corp. 1,427
19,100 Darden Restaurants, Inc. 227
27,200 Dayton-Hudson Corp. 1,807
14,000 Dillard Department Stores, Inc., Class A 512
26,200 Federated Department Stores, Inc.* 1,194
33,500 Gap, Inc. 1,799
7,500 Giant Food, Inc., Class A 253
4,800 Great Atlantic & Pacific Tea Co., Inc. 148
15,875 Hasbro, Inc. 461
91,250 Home Depot (The), Inc. 5,104
60,900 Kmart Corp.* 765
31,800 Kroger Co.* 1,095
34,000 Limited, Inc. (The) 818
4,900 Longs Drug Stores, Inc. 143
21,700 Lowe's Cos., Inc. 997
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
29,100 May Department Stores Co. $ 1,564
4,600 Mercantile Stores Co., Inc. 297
36,100 Nike, Inc., Class B 1,758
9,700 Nordstrom, Inc. 572
31,100 Penney (J.C.) Co., Inc. 1,998
7,900 Pep Boys-Manny, Moe & Jack 198
7,000 Reebok International Ltd.* 275
15,400 Rite Aid Corp. 1,013
49,000 Sears, Roebuck & Co. 2,245
7,600 SUPERVALU , Inc. 299
20,400 TJX Cos., Inc. 704
35,700 Toys "R" Us, Inc.* 1,218
283,200 Wal-Mart Stores, Inc. 11,310
61,600 Walgreen Co. 1,983
16,500 Wendy's International, Inc. 347
18,600 Winn-Dixie Stores, Inc. 752
16,900 Woolworth Corp.* 365
--------
47,899
--------
RUBBER AND PLASTICS--0.6%
5,100 Armstrong World Industries, Inc. 352
9,800 Cooper Tire & Rubber Co. 219
19,500 Goodyear Tire & Rubber Co. 1,183
73,700 Monsanto Co. 3,220
18,700 Rubbermaid, Inc. 453
7,600 Tupperware Corp. 181
--------
5,608
--------
SANITARY SERVICES--0.3%
24,700 Browning-Ferris Industries, Inc. 881
41,100 Laidlaw, Inc. 534
56,680 Waste Management, Inc. 1,396
--------
2,811
--------
SERVICE INDUSTRY MACHINERY--0.3%
15,866 Pall Corp. 335
88,300 Westinghouse Electric Corp. 2,649
--------
2,984
--------
STEEL PRODUCTS--0.6%
28,400 Alcan Aluminum Ltd. 765
21,700 Aluminum Co. of America 1,459
13,200 Armco, Inc.* 70
5,300 ASARCO, Inc. 132
14,100 Bethlehem Steel Corp.* 145
18,087 Engelhard Corp. 322
6,100 Inland Steel Industries, Inc. 117
11,000 Nucor Corp. 550
6,700 Owens Corning 246
7,600 Phelps Dodge Corp. 504
9,200 Reynolds Metals Co. 524
10,700 USX--U.S. Steel Group 335
12,075 Worthington Industries, Inc. 219
--------
5,388
--------
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares and number of contracts)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
TEXTILES--0.0%
9,200 Fruit of the Loom, Inc., Class A* $ 214
4,500 Russell Corp. 138
2,500 Springs Industries, Inc., Class A 126
--------
478
--------
TRANSPORTATION PARTS AND EQUIPMENT--4.0%
70,800 AlliedSignal, Inc. 2,628
125,200 Boeing Co. 6,651
84,300 Chrysler Corp. 2,893
13,100 Dana Corp. 612
9,700 Eaton Corp. 916
7,900 Echlin, Inc. 250
4,500 Fleetwood Enterprises, Inc. 161
149,300 Ford Motor Co. 6,420
7,800 General Dynamics Corp. 676
91,200 General Motors Corp. 5,563
31,200 Illinois Tool Works, Inc. 1,710
24,254 Lockheed Martin Corp.* 2,366
9,120 Navistar International Corp.* 201
8,300 Northrop Grumman Corp. 936
9,720 PACCAR, Inc. 535
26,100 Rockwell International Corp. 1,272
20,600 Textron, Inc. 1,218
15,400 TRW, Inc. 874
29,400 United Technologies Corp. 2,203
--------
38,085
--------
TRANSPORTATION SERVICES--1.2%
11,500 AMR Corp.* 1,394
19,465 Burlington Northern Santa Fe Corp. 1,781
4,900 Caliber Systems, Inc. 262
27,200 CSX Corp. 1,423
9,200 Delta Air Lines, Inc. 1,025
14,400 Federal Express Corp.* 966
47,100 Norfolk Southern Corp. 1,498
27,450 Southwest Airlines Co. 671
30,900 Union Pacific Corp. 1,854
11,300 US Airways Group, Inc.* 623
--------
11,497
--------
UTILITIES--2.4%
23,700 American Electric Power Co. 1,175
18,500 Baltimore Gas & Electric Co. 568
18,900 Carolina Power & Light Co. 706
26,500 Central & South West Corp. 662
19,710 Cinergy Corp. 702
29,400 Consolidated Edison Co. of New York, Inc. 1,110
23,200 Dominion Resources, Inc. 902
18,100 DTE Energy Co. 594
45,043 Duke Energy Co. 2,342
49,600 Edison International 1,330
30,200 Entergy Corp. 785
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ---------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C> <C>
28,700 FirstEnergy Corp.* $ 775
22,800 FPL Group, Inc. 1,275
15,100 GPU, Inc. 596
18,100 Niagara Mohawk Power Corp.* 173
9,200 Northern States Power Co. 505
54,800 Pacific Gas & Electric Co. 1,548
37,000 PacifiCorp 863
27,800 Peco Energy Co. 676
20,600 PP&L Resources, Inc. 484
29,000 Public Service Enterprise Group, Inc. 846
85,600 Southern Co. 2,054
30,112 Texas Utilities Co. 1,204
27,000 Unicom Corp. 786
12,800 Union Electric Co. 510
--------
23,171
--------
WHOLESALE--0.4%
13,600 Cardinal Health, Inc. 1,030
4,700 Fleming Cos., Inc. 78
22,475 Genuine Parts Co. 719
6,200 Grainger (W.W.), Inc. 580
3,600 Potlatch Corp. 175
21,800 Sysco Corp. 971
--------
3,553
- ---------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $611,739) $927,248
- ---------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.2%
U.S. Treasury Bill #
$ 1,455 5.260%Due 01/02/98 $ 1,433
- ---------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,433) $ 1,433
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENT--3.0%
Banco Central Hispanoamericano,
Grand Cayman
$28,932 5.750%Due 12/01/97 $ 28,932
- ---------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $28,932) $ 28,932
- ---------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(Cost $642,104) $957,613
- ---------------------------------------------------------------------------
Other assets, less liabilities--0.0% 84
- ---------------------------------------------------------------------------
NET ASSETS--100.0% $957,697
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
</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 500 124 $29,401 Long 12/19/97 $201
- -------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
# Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
FOCUSED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--95.5%
BANKING--6.4%
15,000 BankAmerica Corp. $ 1,095
19,200 Chase Manhattan Corp. 2,086
9,500 Citicorp 1,139
50,000 MBNA Corp. 1,328
38,800 State Street Corp. 2,309
--------
7,957
--------
COMMUNICATIONS--3.5%
17,000 Ameritech Corp. 1,310
42,900 SBC Communications, Inc. 3,124
--------
4,434
--------
COMPUTERS AND OFFICE MACHINES--8.5%
23,700 Cisco Systems, Inc.* 2,044
15,000 Compaq Computer Corp. 936
20,700 Computer Sciences Corp.* 1,639
16,700 International Business Machines Corp. 1,830
21,700 Microsoft Corp. 3,071
33,300 Oracle Systems Corp.* 1,109
--------
10,629
--------
CONSUMER PRODUCTS--5.7%
10,300 Gillette Co. 951
43,000 Newell Co. 1,755
60,000 Philip Morris Cos., Inc. 2,610
23,400 Procter & Gamble Co. 1,786
--------
7,102
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--9.4%
20,000 Emerson Electric Co. 1,100
62,700 General Electric Co. 4,624
27,000 Intel Corp. 2,096
20,000 Linear Technology Corp. 1,288
14,000 Motorola, Inc. 880
48,500 Selectron Corp.* 1,767
--------
11,755
--------
FINANCIAL--1.9%
61,200 Charles Schwab (The) Corp. 2,360
--------
FOOD AND BEVERAGES--3.9%
46,100 Coca-Cola (The) Co. 2,881
52,900 PepsiCo, Inc. 1,951
--------
4,832
--------
HEALTH SERVICES--8.9%
27,000 Cardinal Health, Inc. 2,045
23,500 Guidant Corp. 1,510
97,500 Health Management Associates, Inc., Class A* 2,389
75,000 HEALTHSOUTH Corp.* 1,969
55,000 Medtronic, Inc. 2,626
20,000 Omnicare, Inc. 578
--------
11,117
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--1.6%
32,800 Hewlett-Packard Co. $ 2,003
--------
INSURANCE SERVICES--4.5%
25,950 American International Group, Inc. 2,616
25,000 MBIA, Inc. 1,572
25,000 MGIC Investment Corp. 1,461
--------
5,649
--------
MORTGAGE AGENCIES--2.9%
46,400 Fannie Mae 2,451
30,000 Freddie Mac 1,238
--------
3,689
--------
OIL AND GAS--5.8%
19,000 Chevron Corp. 1,523
41,000 Exxon Corp. 2,501
20,000 Mobil Corp. 1,439
34,400 Royal Dutch Petroleum Co. 1,812
--------
7,275
--------
OIL FIELD MACHINERY AND EQUIPMENT--2.7%
20,000 Dril-Quip, Inc.* 599
20,000 Halliburton Co. 1,079
20,400 Schlumberger Ltd. ADR 1,679
--------
3,357
--------
PHARMACEUTICALS--8.4%
24,400 Abbott Laboratories 1,586
19,500 Bristol Myers Squibb Co. 1,825
20,200 Lilly (Eli) & Co. 1,274
40,000 Pfizer, Inc. 2,910
25,200 Schering-Plough Corp. 1,580
10,000 Warner-Lambert Co. 1,399
--------
10,574
--------
PROFESSIONAL SERVICES--5.1%
65,000 AccuStaff, Inc.* 1,921
34,200 Cintas Corp. 1,330
40,000 Paychex, Inc. 1,640
45,000 Snyder Communications, Inc. 1,527
--------
6,418
--------
RECREATION AND LEISURE SERVICES--2.6%
37,300 Carnival Corp., Class A 2,016
13,000 Disney (The Walt) Co. 1,234
--------
3,250
--------
RETAIL--11.1%
47,000 Consolidated Stores Corp.* 2,285
20,000 Fastenal Co. 1,060
44,000 Home Depot (The) Inc. 2,461
19,700 Kohls Corp.* 1,426
70,000 Staples, Inc.* 1,973
30,000 Starbucks Corp.* 1,046
</TABLE>
See accompanying notes to financial statements.
49
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares and number of contracts)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ----------------------------------------------------------------------------
FOCUSED GROWTH PORTFOLIO--CONTINUED
<C> <S> <C>
70,000 Wal-Mart Stores, Inc. $ 2,796
28,000 Walgreen Co. 901
--------
13,948
--------
TELECOMMUNICATIONS EQUIPMENT--2.6%
21,700 Lucent Technologies, Inc. 1,739
30,000 Tellabs, Inc.* 1,560
--------
3,299
- ----------------------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $95,750) $119,648
- ----------------------------------------------------------------------------
OTHER INVESTMENTS--2.4%
12,500 Standard & Poor's 500 Depository Receipt
Unit Trust, Series 1 $ 1,195
30,000 Standard & Poor's 400 Mid-Cap Depository Receipt Unit
Trust, Series 1 1,892
- ----------------------------------------------------------------------------
TOTAL OTHER INVESTMENTS (Cost $2,956) $ 3,087
- ----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$85 4.930%Due 01/02/98 $ 85
- ----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $85) $ 85
- ----------------------------------------------------------------------------
SHORT-TERM INVESTMENT--2.3%
Banco Central Hispanoamericano,
Grand Cayman
$2,896 5.750%Due 12/01/97 $ 2,896
- ----------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $2,896) $ 2,896
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(Cost $101,687) $125,716
- ----------------------------------------------------------------------------
Liabilities, less other assets--(0.3)% (383)
- ----------------------------------------------------------------------------
NET ASSETS--100.0% $125,333
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Loss
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P MIDCAP 14 $2,294 Long 12/19/97 $47
- ----------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
# Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--82.3%
AUSTRALIA--1.9%
500 Aberfoyle Ltd. $ 1
3,000 Amcor Ltd. 13
1,300 Ashton Mining Ltd. 1
1,400 Australian Gas Light Co. Ltd. 9
3,700 Australian National Industries Ltd. 3
5,399 Boral Ltd. 14
1,000 Brambles Industries Ltd. 19
9,400 Broken Hill Proprietary Co. Ltd. 86
2,500 Burns Philp & Co. Ltd. 1
3,966 Coca-Cola Amatil Ltd. 30
5,485 Coles Myer Ltd. 27
1,500 CRA Ltd. 17
3,400 Crown Ltd. 2
4,700 CSR Ltd. 16
1,800 David Jones Ltd. 2
1,000 Delta Gold NL 1
1,400 Email Ltd. 3
607 Faulding (F.H.) & Co. Ltd. 3
9,200 Foster's Brewing Group Ltd. 17
2,237 Futuris Corp. Ltd. 2
5,400 General Property Trust Units 10
2,981 Gio Australia Holdings Ltd. 7
5,996 Goodman Fielder Ltd. 9
1,218 Great Central Mines Ltd. 1
1,900 Hardie (James) Industries Ltd. 5
1,300 Ici Australia Ltd. 9
1,200 Leighton Holdings Ltd. 5
1,150 Lend Lease Corp. Ltd. 24
7,767 M.I.M. Holdings Ltd. 6
900 Metal Manufactures Ltd. 1
6,900 National Australia Bank 91
1,100 Newcrest Mining Ltd. 1
9,400 News Corp. Ltd. 50
7,739 Normandy Mining Ltd. 7
3,400 North Ltd. 9
4,800 Pacific Dunlop Ltd. 10
4,200 Pioneer International Ltd. 11
900 Plutonic Resources Ltd. 1
1,781 QBE Insurance Group Ltd. 8
3,100 QCT Resources Ltd. 2
900 Resolute Ltd. 1
1,000 RGC Ltd. 1
500 Rothmans Holdings Ltd. 3
2,800 Santos Ltd. 12
1,900 Schroders Property Fund 2
900 Smith (Howard) Ltd. 7
400 Sons of Gwalia Ltd. 1
2,953 Southcorp Holdings Ltd. 9
1,500 Stockland Trust Group 4
1,400 TABCORP Holdings Ltd. 7
5,500 Westfield Trust 11
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------------
<C> <S> <C>
8,300 Westpac Banking Corp. Ltd. $ 52
5,363 WMC Ltd. 17
-------
661
-------
AUSTRIA--0.3%
11 Austria Mikro Systeme International A.G. 1
122 Austrian Airlines Osterreichische Luftverkehrs A.G.* 3
270 Bank Austria A.G. 13
33 Bank Austria A.G. (Partial Certificates) 1
16 Bau Holdings A.G. 1
52 Bohler-Uddeholm A.G. 3
8 BWT A.G. 1
136 Creditanstalt-Bankverein 7
32 EA-Generali A.G. 8
101 Flughafen Wien A.G. 4
18 Lenzing 1
52 Mayr-Melnhof Karton A.G. 3
38 Oesterreichische Brau-Beteiligungs A.G. 2
146 Oesterreichische Elektrizitaetswirtschafts A.G. 11
127 OMV A.G. 17
66 Radex-Heraklith Industriebeteiligungs A.G. 2
48 Steyr-Daimler-Puch A.G. 1
24 Universale-Bau A.G. 1
71 VA Technologies A.G. 10
41 Wienerberger Baustoffindustrie A.G. 8
-------
98
-------
BELGIUM--1.0%
100 Algemene Maatschappij voor Nijverheidskredit N.V. 4
50 Barco Industries 10
6 Bekaert N.V. 4
40 CBR Cementbedrisven 4
180 Delhaize-Le Lion 9
300 Electrabel S.A. 67
200 Fortis A.G. 40
100 Generale de Banque S.A. 41
100 Gevaert N.V. 4
100 Gevaert N.V. Warrants* 0
100 Groupe Bruxelles Lambert S.A. 15
56 Kredietbank N.V. 23
120 Petrofina S.A. 46
63 Royale Belge 17
500 Solvay S.A. 30
375 Tractebel 32
100 Union Miniere Group 7
-------
353
-------
DENMARK--0.9%
12 Aarhus Oliefabrik A/S, Class A 1
12 Aarhus Oliefabrik A/S, Class B, Limited Voting 1
20 Aktieselskabet Korn-OG Foderstof Kompagniet A/S 1
54 Bang & Olufsen Holdings A/S 3
</TABLE>
See accompanying notes to financial statements.
51
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
DENMARK--Continued
176 Carlsberg A/S, Class A $ 10
101 Carlsberg A/S, Class B 6
2 D/S 1912, Class B 80
275 Danisco A/S 15
300 Den Danske Bank 36
85 Det Ostasiatiske Kompagni A/S* 1
160 FLS Industries A/S, Class B 4
105 GN Store Nord A/S 2
124 International Service System A/S, Class B* 4
6 J. Lauritzen Holding A/S 1
29 NKT Holding A/S 3
340 Novo-Nordisk A/S, Class B 42
45 Radiometer A/S, Class B 2
154 SAS Danmark A/S 2
25 Sophus Berendsen A/S, Class A 4
97 Sophus Berendsen A/S, Class B 15
589 Tele Danmark A/S 35
254 Unidanmark A/S, Class A 18
-------
286
-------
FINLAND--0.6%
500 Kemira Oy 5
500 Kesko 7
3,000 Merita Ltd., Class A 15
100 Metra Oy, Class A 3
200 Metra Oy, Class B 5
800 Nokia AB, Class A 64
500 Nokia AB, Class K 40
500 Outokumpu Oy, Class A 7
200 Pohjola Insurance Group, Class A 7
100 Pohjola Insurance Group, Class B 4
16 Rauma Group 0
400 Sampo Insurance Co. Ltd., Class A 13
1,300 Upm-Kymmene Corp. 28
-------
198
-------
FRANCE--7.0%
200 Accor S.A.* 38
950 Alcatel Alsthom S.A. 119
1,850 AXA-UAP 134
1,200 Banque Nationale de Paris 59
10 Bongrain S.A. 4
125 Bouygues 13
210 Canal Plus 37
220 Carrefour S.A. 118
350 Casino Guichard-Perrachon S.A. 19
50 Chargeurs S.A. 3
750 Cie Generale des Eaux 99
300 Cie Generale des Eaux Warrants* 0
50 Club Mediterranee 4
175 Compagnie Bancaire S.A. 26
507 Compagnie de Saint Gobain 69
675 Compagnie Financiere de Paribas 49
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
50 Compagnie Generale de Geophysique S.A. $ 5
50 Compagnie Parisienne de Reescompte 4
30 Comptoirs Modernes 15
50 Credit National/Natexis 3
600 CSF 17
400 Danone 64
50 Dollfus-Mieg & Cie S.A. 1
1,400 Elf Aquitaine S.A. 163
150 Eridania Beghin-Say S.A. 23
50 Essilor International 14
25 Eurafrance S.A. 10
10 Europe 1 Communication 2
50 Groupe GTM 3
450 Havas S.A. 29
100 Imetal S.A. 12
400 L'Air Liquide 63
390 L'OREAL 149
500 Lafarage S.A. 33
650 Lagardere S.C.A. 19
160 Legrand S.A. 31
500 LVMH Moet Hennessy Louis Vuitton 86
942 Lyonnaise des Eaux S.A. 101
780 Michelin, Class B 42
150 Moulinex 4
100 Nord-Est S.A. 2
40 Pathe 8
350 Pernod-Ricard 18
300 Peugeot Citroen 34
125 Pinault Printemps-Redoute S.A. 64
100 Primagaz Cie 8
110 Promodes 40
2,050 Rhone-Poulenc, Class A 92
20 Sagem S.A. 9
100 Salomon 9
500 Sanofi S.A. 50
750 Schneider S.A. 40
100 SEFIMEG 5
250 SEITA 9
150 Sidel S.A. 9
75 Simco S.A. 5
50 Skis Rossignol S.A. 1
300 Societe BIC S.A. 21
550 Societe Generale 72
100 Societe Technip 10
50 Sodexho Alliance S.A. 27
100 Sommer-Allibert 3
1,250 Total S.A., Class B 131
50 Union du Credit-Bail Immobilier 5
50 Union Immobiliere de France 3
1,200 Usinor Sacilor 19
350 Valeo S.A. 23
80 Worms et Compagnie 6
------
2,407
------
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
GERMANY--7.3%
250 Adidas A.G. $ 35
1,060 Allianz A.G. 251
50 AMB Aachener & Muenchener Beteiligungs- A.G. 51
2,750 BASF A.G. 97
3,250 Bayer A.G. 120
1,350 Bayer Hypotheken-und Wechsel-Bank A.G. 59
1,500 Bayerische Vereinsbank A.G. 89
350 Beiersdorf A.G. 15
50 CKAG Colonia Konzern A.G. 4
350 Continental A.G. 9
2,300 Daimler-Benz A.G. 163
150 Degussa A.G. 7
2,400 Deutsche Bank A.G. 154
1,450 Deutsche Lufthansa A.G. 28
9,700 Deutsche Telekom A.G. 197
200 Deutz A.G.* 1
100 Douglas Holdings A.G. 4
2,150 Dresdner Bank A.G. 83
50 FAG Kugelfischer Georg Schaefer A.G. 1
220 Heidelbergerzement A.G. 17
250 Hochtief A.G. 10
40 Karstadt A.G. 14
40 Linde A.G. 25
100 Man A.G. 30
195 Mannesmann A.G. 91
750 Merck KGaA 27
1,010 Metro A.G. 46
500 Muenchener Ruckversicherungs-Gesellschaft A.G. 156
55 Preussag A.G. 16
1,550 RWE A.G. 76
300 SAP A.G. 87
300 Schering A.G. 29
100 SGL Carbon A.G. 13
2,000 Siemens A.G. 153
120 Thyssen A.G. 29
2,300 VEBA A.G. 137
150 Viag A.G. 76
160 Volkswagen A.G. 91
-------
2,491
-------
HONG KONG--2.2%
4,000 Applied International Holdings-Rights* 0
10,000 Applied International Holdings* 1
8,200 Bank of East Asia Ltd. 17
21,000 Cathay Pacific Airways 18
14,000 Cheung Kong Holdings Ltd. 99
15,500 China Light & Power Co. Ltd. 78
12,000 Chinese Estates Holdings 6
2,000 Dickson Concepts International Ltd 4
5,000 Elec & Eltek International Holdings Ltd. 2
4,000 Giordano International Ltd. 1
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
8,000 Hang Lung Development Co. $ 12
8,000 Hang Seng Bank Ltd. 70
4,000 Hong Kong & Shanghai Hotels Ltd. 4
15,200 Hong Kong China Gas Co. Ltd. 27
50,400 Hong Kong Telecommunications Ltd. 96
16,000 Hopewell Holdings Ltd. 4
17,000 Hutchinson Whampoa Ltd. 113
4,000 Hysan Development Co. Ltd. 8
2,400 Johnson Electric Holdings Ltd. 6
1,000 Kumagai Gum Ltd. 1
2,000 Miramar Hotel & Investment Ltd. 3
6,000 New World Development Co. Ltd. 22
4,000 Oriental Press Group 1
2,000 Peregrine Investments Holdings Ltd. 2
2,000 Playmates Toys Holdings 1
14,400 Regal Hotels International 2
5,000 Shangri-La Asia Ltd. 4
4,000 Shun Tak Holdings Ltd. 1
4,000 Sino Land Co. 2
6,000 South China Morning Post Holdings Ltd. 5
2,000 Stelux Holdings 1
10,000 Sun Hung Kai Properties Ltd. 76
7,000 Swire Pacific Ltd. 35
2,000 Tai Cheung Holdings Ltd. 1
2,000 Television Broadcasts Ltd. 5
9,000 Wharf Holdings Ltd. 18
1,000 Wing Lung Bank 4
-------
750
-------
IRELAND--0.4%
4,223 Allied Irish Banks PLC 37
217 Crean (James) PLC 1
1,906 CRH PLC 23
1,470 Fyffes PLC 2
933 Greencore Group PLC 4
1,238 Independent Newspapers PLC 7
1,574 Irish Life PLC 8
821 Kerry Group PLC 9
5,420 Smurfit (Jefferson) Group PLC 16
3,621 Waterford Wedgewood PLC 4
1,093 Woodchester Investments PLC 4
-------
115
-------
ITALY--3.3%
5,000 Assicurazioni Generali 112
9,000 Banca Commerciale Italiana 26
3,000 Banco Ambrosiano S.p.A. 10
1,000 Banco Ambrosiano Veneto S.p.A. 2
3,000 Banco Ambrosiano Veneto S.p.A.-Rights* 11
1,000 Banco Ambrosiano Veneto S.p.A.-Rights* 1
3,000 Banco Ambrosiano Veneto S.p.A.-Rights* 2
1,000 Banco Ambrosiano Veneto S.p.A.-Rights* 0
1,000 Banco Popolare di Milano 5
1,000 Benetton Group S.p.A. 15
1,000 Bulgari S.p.A. 5
</TABLE>
See accompanying notes to financial statements.
53
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
ITALY--Continued
1,000 Burgo (Cartiere) S.p.A. $ 6
1,000 Cementir S.p.A. 2
11,000 Credito Italiano 30
3,000 Edison S.p.A. 16
41,000 ENI S.p.A. 239
1,000 Falck Acciaierie & Ferriere Lombarde 4
18,400 Fiat S.p.A. 53
4,300 Fiat-RNC S.p.A. 7
2,000 Impregilo S.p.A. 1
4,000 Istituto Bancario San Paolo di Torino 33
3,000 Istituto Mobiliare Italiano S.p.A. 31
20,000 Istituto Nationale Assicurazioni 35
1,000 Italcementi S.p.A. 6
4,000 Italgas S.p.A. 15
1,000 La Rinascente S.p.A. 8
2,000 Magneti Marelli 3
6,000 Mediaset S.p.A.* 30
2,000 Mediobanca S.p.A.* 14
1,000 Mondadori (Arnoldo) Editore S.p.A. 8
3,000 Montedison S.p.A. 2
26,000 Montedison-RNC S.p.A. 21
11,240 Olivetti Group* 6
8,000 Parmalat Finanziaria S.p.A. 12
8,000 Pirelli S.p.A. 20
2,000 Riunione Adriatica di Sicurta S.p.A. 19
1,000 Riunione Adriatica di Sicurta-RNC S.p.A. 6
1,000 Sirti S.p.A. 6
3,000 Snia BPD S.p.A. 3
1,000 Societa Assicuratrice Industriale S.p.A. 10
34,000 Telecom Italia Mobile S.p.A. 138
8,000 Telecom Italia Mobile-RNC S.p.A. 17
19,111 Telecom Italia S.p.A. 119
4,488 Telecom Italia-RNC S.p.A. 18
-------
1,127
-------
JAPAN--21.2%
2,000 77 Bank 16
1,000 Acom Co. Ltd. 54
3,000 Ajinomoto Co. 27
1,000 Alps Electric Co. Ltd. 11
2,000 Amada Co. Ltd. 10
2,000 Aoki Corp.* 0
300 Arabian Oil Co. 6
10,000 Asahi Bank Ltd. 42
3,000 Asahi Breweries Ltd. 42
8,000 Asahi Chemical Industry Co. Ltd. 34
6,000 Asahi Glass Co. Ltd. 38
3,000 Ashikaga Bank Ltd. 4
200 Autobacs Seven Co. Ltd. 7
25,000 Bank of Tokyo-Mitsubishi Ltd. 362
5,000 Bank of Yokohama Ltd. 16
4,000 Bridgestone Corp. 87
1,000 Brother Industries Ltd. 2
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
5,000 Canon, Inc. $ 121
1,000 Casio Computer Co. Ltd. 8
4,000 Chiba Bank Ltd. 16
2,000 Chichibu Onoda Cement Corp. 5
1,000 Chiyoda Corp.* 2
1,000 Chugai Pharmaceutical Co. Ltd. 6
2,000 Citizen Watch Co. Ltd. 13
3,000 Cosmo Oil Co. Ltd. 6
400 CSK Corp. 12
4,000 Dai Nippon Ink & Chemicals, Inc. 14
4,000 Dai Nippon Printing Co. Ltd. 79
1,000 Dai Nippon Screen MFG Co. Ltd. 6
2,000 Daicel Chemical Industry Ltd. 4
2,000 Daido Steel Co. Ltd. 3
4,000 Daiei, Inc. 17
1,000 Daifuku Co. Ltd. 6
1,000 Daiichi Pharmaceutical 12
1,000 Daikin Industries Ltd. 5
1,000 Daikyo, Inc. 1
1,000 Daimaru, Inc. 3
800 Daito Trust Construction Co. 5
3,000 Daiwa House Industry Co. Ltd. 24
7,000 Daiwa Securities Co. Ltd. 24
2,000 Denki Kagaku Kogyo Kabushiki Kaisha 4
4,000 Denso Corp. 73
22 East Japan Railway Co. 100
1,000 Ebara Corp. 11
1,000 Eisai Co. Ltd. 15
1,000 Ezaki Glico Co. Ltd. 7
1,100 Fanuc 41
15,000 Fuji Bank Ltd. 81
3,000 Fuji Photo Film Co. 108
2,000 Fujikura Ltd. 14
3,000 Fujita Corp. 1
1,000 Fujita Kanko, Inc. 11
9,000 Fujitsu Ltd. 101
3,000 Furukawa Electric Co. Ltd. 15
2,000 Gunma Bank 15
1,000 Gunze Ltd. 2
4,000 Hankyu Corp. 19
1,000 Hankyu Department Stores, Inc. 7
2,000 Haseko 1
2,000 Hazama Corp. 1
1,000 Higo Bank 6
18,000 Hitachi Ltd. 128
5,000 Hitachi Zosen Corp. 10
3,000 Hokuriku Bank 5
5,000 Honda Motor Co. Ltd. 181
1,000 House Foods Corp. 13
1,000 Hoya Corp. 31
1,000 Inax 4
12,000 Industrial Bank of Japan 107
1,000 Isetan 6
2,000 Ishihara Sangyo Kaisha 3
2,000 Ito-Yokado Co. 90
</TABLE>
See accompanying notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
7,000 Itochu Corp. $ 18
1,000 Itoham Foods 4
1,000 Iwataini International Corp. 2
1,000 Jaccs Co. Ltd. 6
8,000 Japan Airlines* 25
5,000 Japan Energy Corp. 7
1,000 Japan Metals & Chemicals 1
2,000 Japan Steel Works* 2
1,000 JGC Corp. 2
4,000 Joyo Bank 16
2,000 JUSCO Co. 34
4,000 Kajima Corp. 13
1,000 Kamigumi Co. Ltd. 4
1,000 Kandenko Co. Ltd. 6
2,000 Kanebo Ltd. 2
2,000 Kaneka Corp. 11
4,600 Kansai Electric Power Co., Inc. 78
1,000 Kansai Paint 3
3,000 Kao Corp. 40
6,000 Kawasaki Heavy Industries Ltd. 15
2,000 Kawasaki Kisen Kaisha Ltd. 3
14,000 Kawasaki Steel Corp. 23
2,000 Keihin Electric Express Railway Co. Ltd. 8
1,000 Kikkoman Corp. 6
1,000 Kinden Corp. 11
7,000 Kinki Nippon Railway 39
5,000 Kirin Brewery Co. Ltd. 39
5,000 Komatsu Ltd. 30
200 Konami Co. Ltd. 5
2,000 Konica Corp. 11
1,000 Koyo Seiko Co. 6
1,000 Kuarabo Industries 1
6,000 Kubota Corp. 21
3,000 Kumagai Gumi Co. Ltd. 2
2,000 Kuraray Co. Ltd. 17
1,000 Kureha Chemical Industry 2
1,000 Kyocera Corp. 48
2,000 Kyowa Hakko Kogyo 10
1,000 Lion Corp. 3
6,000 Marubeni Corp. 15
1,000 Maruha Corp. 1
2,000 Marui Co. Ltd. 31
9,000 Matsushita Electric Industrial Co. Ltd. 140
1,000 Meiji Milk Products Co. Ltd. 3
2,000 Meiji Seika 8
2,000 Minebea Co. Ltd. 22
9,000 Mitsubishi Chemical Corp. 18
7,000 Mitsubishi Corp. 55
9,000 Mitsubishi Electric Corp. 25
5,000 Mitsubishi Estate Co. Ltd. 58
2,000 Mitsubishi Gas Chemical Go. 5
15,000 Mitsubishi Heavy Industries Ltd. 59
5,000 Mitsubishi Materials Corp. 11
2,000 Mitsubishi Oil Co. Ltd. 4
2,000 Mitsubishi Paper Mills 4
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
3,000 Mitsubishi Rayon Co. $ 9
5,000 Mitsubishi Trust & Banking Corp. 67
7,000 Mitsui & Co. 49
1,800 Mitsui Chemicals, Inc. 5
3,000 Mitsui Engineering & Shipbuilding Co. Ltd. 3
3,000 Mitsui Fudosan Co. Ltd. 32
3,000 Mitsui Marine & Fire Insurance Co. Ltd. 15
2,000 Mitsui Mining & Smelting 8
5,000 Mitsui O.S.K. Lines Ltd.* 8
5,000 Mitsui Trust & Banking Co. Ltd. 8
2,000 Mitsukoshi Ltd. 6
1,000 Murata Manufacturing Co. Ltd. 30
1,000 Mycal Corp. 8
3,000 Nagoya Railroad Co. Ltd. 11
2,000 Nankai Electric Railway 9
7,000 NEC Corp. 74
2,000 NGK Insulators Ltd. 19
1,000 NGK Spark Plug Co. 7
2,000 Nichido Fire & Marine Insurance 11
1,000 Nichirei Corp. 3
2,000 Nihon Cement Co. Ltd. 6
2,000 Niigata Engineering Co. Ltd.* 1
2,000 Nikon Corp. 22
5,000 Nippon Express Co. Ltd. 26
2,000 Nippon Fire & Marine Insurance 6
2,000 Nippon Light Metal Co. 4
1,000 Nippon Meat Packers, Inc. 13
5,000 Nippon Oil Co. Ltd. 18
4,000 Nippon Paper Industries Co. 20
2,000 Nippon Sheet Glass Co. Ltd. 4
1,000 Nippon Shinpan Co. 1
1,000 Nippon Shokubai K.K. Co. 5
31,000 Nippon Steel Corp. 57
1,000 Nippon Suisan Kaisha Ltd.* 1
63 Nippon Telegraph & Telephone Corp. 518
5,000 Nippon Yusen Kabushiki Kaisha 15
1,000 Nishimatsu Construction 4
11,000 Nissan Motor Co. Ltd. 48
1,000 Nisshinbo Industries, Inc. 6
15,000 NKK Corp. 15
1,000 NOF Corp. 2
8,000 Nomura Securities Co. Ltd. 99
2,000 NSK Ltd. 8
2,000 NTN Corp. 7
3,000 Obayashi Corp. 14
3,000 Odakyu Electric Railway 14
5,000 Oji Paper Co. Ltd. 21
1,000 Okumura Corp. 3
1,000 Olympus Optical Co. Ltd. 7
1,000 Omron Corp. 17
1,000 Onward Kasiyama Co. Ltd. 14
2,000 Orient Corp. 4
11,000 Osaka Gas Co. Ltd. 25
200 Oyo Corp. 4
2,000 Penta-Ocean Construction 3
</TABLE>
See accompanying notes to financial statements.
55
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
JAPAN--Continued
1,000 Renown, Inc.* $ 1
1,000 Rohm Co. Ltd. 99
15,000 Sakura Bank Ltd. 52
1,000 Sankyo Aluminium Industry Co. 1
2,000 Sankyo Co. Ltd. 64
1,000 Sanwa Shutter Corp. 6
8,000 Sanyo Electric Co. 23
2,000 Sapporo Breweries Ltd. 11
1,000 Sato Kogyo 1
500 Sega Enterprises 11
1,000 Seiyu Ltd. 4
2,000 Sekisui Chemical Co. Ltd. 15
3,000 Sekisui House Ltd. 22
5,000 Sharp Corp. 34
3,000 Shimizu Corp. 10
2,000 Shin-Etsu Chemical Co. Ltd. 48
2,000 Shionogi & Co. 11
2,000 Shiseido Co. Ltd. 27
3,000 Shizuoka Bank 28
5,000 Showa Denko K.K. 7
2,000 Snow Brand Milk Products 5
1,900 Sony Corp. 162
17,000 Sumitomo Bank Ltd. 216
7,000 Sumitomo Chemicals Co. 23
5,000 Sumitomo Corp. 32
3,000 Sumitomo Electric Industries 40
1,000 Sumitomo Forestry Co. Ltd. 7
3,000 Sumitomo Heavy Industries Ltd. 9
3,000 Sumitomo Marine & Fire Insurance 15
14,000 Sumitomo Metal Industries 29
2,000 Sumitomo Metal Mining Co. 8
2,000 Sumitomo Osaka Cement Co. Ltd. 4
5,000 Taisei Corp. 12
2,000 Taisho Pharmaceutical Co. 50
1,000 Takara Shuzo 4
1,000 Takashimaya Co. Ltd. 8
4,000 Takeda Chemical Industries 117
4,000 Teijin Ltd. 11
1,000 Teikoku Oil Co. Ltd. 3
1,000 Toa Corp. 2
4,000 Tobu Railway Co. 14
200 Toho Co. 22
2,400 Tohoku Electric Power 36
9,000 Tokai Bank 48
7,000 Tokio Marine & Fire Insurance 66
6,100 Tokyo Electric Power Co. 110
1,000 Tokyo Electron Ltd. 38
12,000 Tokyo Gas Co. Ltd. 29
700 Tokyo Steel Manufacturing 4
1,000 Tokyo Tatemono Co. Ltd. 3
1,000 Tokyotokeiba 2
5,000 Tokyu Corp. 21
3,000 Toppan Printing Co. Ltd. 41
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
6,000 Toray Industries, Inc. $ 27
3,000 Tosoh Corp. 6
1,000 Tostem Corp. 11
2,000 Toto Ltd. 18
1,000 Toyo Engineering Corp. 1
1,000 Toyo Seikan Kaisha 17
3,000 Toyobo Ltd. 5
1,000 Toyoda Automatic Loom Works 19
19,000 Toyota Motor Corp. 548
1,000 Tsubakimoto Chain 5
3,000 Ube Industries Ltd. 5
2,000 Unitika Ltd.* 1
1,000 Yamaguchi Bank 13
1,000 Yamaha Corp. 14
5,000 Yamaichi Securities Co. Ltd. 0
2,000 Yamanouchi Pharmaceutical Co. Ltd. 49
2,000 Yamato Transport Co. Ltd. 25
1,000 Yamazaki Baking Co. Ltd. 12
5,000 Yasuda Trust & Banking 4
1,000 Yokogawa Electric 7
-------
7,261
-------
MALAYSIA--0.8%
1,000 Aluminium Co. of Malaysia Berhad 0
2,000 AMMB Holdings Berhad 2
6,000 Amsteel Corp. Berhad 2
1,000 Antah Holdings Berhad 0
1,000 Aokam Perdana Berhad* 0
4,000 Berjaya Group Berhad 1
3,000 Berjaya Leisure Berhad 2
4,000 Commerce Asset Holdings Berhad 2
7,000 DCB Holdings Berhad 4
2,000 Edaran Otomobil Nasional Berhad 5
3,000 Ekran Berhad 2
5,000 Golden Hope Plantations Berhad 6
1,000 Golden Plus Holdings Berhad 0
2,000 Guinness Anchor Berhad 2
3,000 Highlands & Lowlands Berhad 3
1,000 Hong Leong Industries Berhad 1
3,000 Hong Leong Properties Berhad 1
2,000 Hume Industries Berhad 2
3,000 Idris Hydraulic Berhad* 1
3,000 IGB Corp. Berhad 1
4,000 IOI Corp. Berhad 2
2,000 Jaya Tiasa Holdings Berhad 4
2,000 Johan Holdings Berhad 1
2,000 Kedah Cement Holdings Berhad 1
1,000 Kelanamas Industries Berhad 0
2,000 Kemayan Corp. Berhad 1
1,000 Kian Joo Can Factory Berhad 1
3,000 Kuala Lumpur Kepong Berhad 7
3,000 Land and General Berhad 1
2,000 Landmarks 1
2,000 Leader Universal Holdings Berhad 1
7,000 Magnum Corp. Berhad 5
</TABLE>
See accompanying notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
5,400 Malayan Banking Berhad $ 14
2,000 Malayan Cement Berhad 1
6,000 Malayan United Industries Berhad 2
1,500 Malayawata Steel Berhad 0
8,000 Malaysia International Shipping Berhad 9
4,000 Malaysia Mining Corp. Berhad 2
4,000 Malaysian Airline System Berhad 3
2,000 Malaysian Mosaics Berhad 1
1,000 Malaysian Oxygen Berhad 3
1,000 Malaysian Pacific Industries 3
4,666 Malaysian Resources Corp. Berhad 2
4,000 MBF Capital Berhad 2
4,000 Metroplex Berhad 1
5,000 Mulpha International Berhad 1
4,000 Multi-Purpose Holdings 1
2,000 Mycom Berhad 1
2,000 Nestle Berhad 10
1,000 New Straits Times Press Berhad 1
1,600 Oriental Holdings Berhad 2
1,000 Palmco Holdings Berhad 0
3,000 Pan-Malaysia Cement Works Berhad 1
2,000 Perlis Plantations Berhad 4
3,000 Perusahaan Otomolbil Nasional Berhad 4
1,000 Petaling Garden Berhad 1
1,000 Pilecon Engineering Berhad 0
3,000 Promet Berhad* 1
3,000 Public Bank Berhad 1
6,000 Public Bank Berhad (Foreign Market) 4
2,000 R.J. Reynolds Berhad 3
2,000 Rashid Hussain Berhad 2
5,000 Resorts World Berhad 7
2,400 Roghmans of Pall Mall Berhad 21
2,000 Selangor Properties Berhad 1
2,000 Shell Refining Co. Berhad 4
11,000 Sime Darby Berhad 11
2,000 Sungei Way Holdings Berhad 1
3,000 Ta Enterprise Berhad 1
3,000 Tan Chong Motor Holdings Berhad 2
3,000 Technology Resources Industries Berhad* 2
13,500 Telekom Malaysia Berhad 30
14,000 Tenaga Nasional Berhad 26
3,000 Time Engineering Berhad 1
2,000 UMW Holdings Berhad 2
4,000 United Engineers Malaysia Ltd. 4
4,000 YTL Corp. Berhad 4
2,000 YTL Corp. Berhad, Class A 2
-------
261
-------
NETHERLANDS--5.0%
6,879 ABN AMRO Holdings N.V. 131
384 Akzo Nobel 68
181 Assurantieconcern Stad Rotterdam anno 1720N.V. 9
3,515 Elsevier N.V. 59
453 Getronics N.V. 16
265 Heineken N.V. 45
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
162 Hollandsche Beton Groep N.V. $ 3
141 IHC Caland N.V. 7
4,282 ING Groep N.V. 174
389 KLM Royal Dutch Airlines N.V. 14
2,537 Koninklijke Ahold N.V. 68
188 Koninklijke Hoogovens N.V. 8
546 Koninklijke KNP BT N.V. 12
119 Koninklijke Nedlloyd N.V. 3
167 Koninklijke Pakhoed N.V. 4
2,479 Koninklijke PTT Nederland N.V. 100
106 Oce-Van Der Grinten N.V. 12
1,866 Philips Electronics N.V. 123
12,110 Royal Dutch Petroleum Co. 630
160 Stork N.V. 6
3,208 Unilever N.V. 187
360 Wolters Kluwer N.V. 48
-------
1,727
-------
NEW ZEALAND--0.3%
12,500 Brierley Investments Ltd. 9
7,600 Carter Holt Harvey Ltd. 11
200 Fisher & Paykel Industries Ltd. 1
1,218 Fletcher Challenge Building 4
1,622 Fletcher Challenge Energy 7
3,817 Fletcher Challenge Forests 3
3,200 Fletcher Challenge Paper 4
2,200 Lion Nathan Ltd. 5
8,400 Telecom Corp. of New Zealand Ltd. 43
-------
87
-------
NORWAY--0.5%
400 Aker RGI ASA 7
40 Aker RGI ASA, Class B 1
300 Bergesen d.y. ASA, Class A 8
100 Bergesen d.y. ASA, Class B 3
3,000 Christiania Bank Og Kreditkasse 11
100 Dyno Industrier ASA 2
200 Elkem ASA 3
200 Hafslund ASA 1
100 Hafslund ASA, Class B 0
200 Kvaerner ASA 10
100 Kvaerner ASA, Class B 5
100 Leif Hoegh & Co. ASA 2
100 NCL Holdings ASA Rights* 0
900 NCL Holdings ASA* 3
1,200 Norsk Hydro ASA 61
200 Norske Skogindustrier ASA 6
130 Nycomed ASA, Class A 4
65 Nycomed ASA, Class B 2
200 Orkla ASA, Class A 17
100 Orkla ASA, Class B 8
200 Petroleum Geo-Services ASA* 13
1,400 Storebrand ASA* 9
100 Unitor ASA 1
-------
177
-------
</TABLE>
See accompanying notes to financial statements.
57
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
PORTUGAL--0.3%
700 Banco Comercial Portugues S.A. (BCP) $ 15
400 Banco Espirito Santo e Comercial de Lisboa S.A. 11
1,800 EDP-Electricidade de Portugal S.A. 32
900 Portugal Telecom S.A. (Registered) 42
-------
100
-------
SINGAPORE--0.9%
1,000 Chuan Hup Holdings Ltd. 0
4,000 City Developments Ltd. 20
2,000 Comfort Group Ltd. 1
2,000 Cycle & Carriage Ltd. 9
5,000 DBS Land Ltd. 9
6,000 Development Bank of Singapore Ltd. 57
1,000 First Capital Corp. Ltd. 1
2,000 Fraser & Neave Ltd. 10
2,000 Goldtron Ltd. 0
2,000 Hai Sun Hup Group Ltd. 1
1,000 Haw Par Brothers International Ltd. 1
2,000 Hotel Properties Ltd. 1
1,000 Inchcape Berhad 3
6,000 IPC Corp. 1
4,250 Keppel Corp. Ltd. 15
2,000 Lum Chang Holdings Ltd. 1
2,000 NatSteel Ltd. 4
4,000 Neptune Orient Lines Ltd. 2
9,600 Overseas Chinese Banking Corp. Ltd. 58
1,000 Overseas Union Enterprise Ltd. 2
2,000 Parkways Holdings Ltd. 5
1,000 Sembawang Co. Ltd. 3
1,000 Sembawang Marine and Logistics 2
3,000 Singapore Airlines Ltd. 20
2,000 Singapore Press Holdings Ltd. 27
2,000 Singapore Technologies Industrial Corp. 2
23,000 Singapore Telecommunications Ltd. 44
1,000 Straits Trading Co. Ltd. 1
4,000 United Industrial Corp. Ltd. 2
2,000 United Overseas Bank Ltd. 12
2,000 United Overseas Land Ltd. 2
-------
316
-------
SPAIN--2.3%
75 Acerinox S.A. 12
1,250 Autopistas Concesionaria ESP 17
3,477 Banco Bilbao Vizcaya S.A. 105
1,680 Banco Central Hispanoamericano 32
2,442 Banco Santander S.A. 74
625 Corporacion Bancaria de Espana S.A. 39
75 Corporacion Financiera Alba 8
155 Corporacion Mapfre 8
295 Dragados & Construcciones S.A. 6
250 Ebro Agricolas Compania de Alimentacion S.A. 4
100 Empresa Nacional de Celulosas S.A. 2
5,350 Empresa Nacional de Electricidad S.A. 101
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------------
<C> <S> <C>
800 Ercros S.A. $ 1
300 Fomenta de Construcciones S.A. 12
775 Gas Natural SDG S.A., Class E 38
4,618 Iberdrola S.A. 59
125 Inmobiliaria Metropolitana Vasco Central S.A. 5
200 Inmobiliaria Urbis S.A. 2
25 Portland Valderrivas S.A. 2
250 Prosegur CIA de Seguridad S.A. 2
1,550 Repsol S.A. 67
205 Sarrio S.A. 1
225 Sociedade General de Aguas de Barcelona S.A. 9
225 Sociedade General de Aguas de Barcelona S.A.--Rights* 0
205 Tabacalera S.A. 15
4,812 Telefonica de Espana 139
1,561 Union Electrica Fenosa S.A. 16
200 Uralita S.A. 2
200 Vallehermoso S.A. 6
100 Viscofan Industria Navarra de Envolturas Celulosicas S.A. 2
50 Zardoya Otis S.A. 6
5 Zardoya Otis S.A.--Bonus Shares 0
-------
792
-------
SWEDEN--2.0%
3,300 ABB AB, Class A 42
1,400 ABB AB, Class B 17
500 AGA AB, Class A 7
400 AGA AB, Class B 5
6,066 Astra AB, Class A 105
1,500 Astra AB, Class B 25
500 Atlas Copco AB, Class A 15
200 Atlas Copco AB, Class B 6
316 Electrolux AB, Class B 25
92 Granges AB* 1
900 Hennes & Mauritz AB, Class B 42
200 Scancem AB, Class A 8
300 Securitas AB, Class B 9
408 Skandia Forsakrings AB 22
2,400 Skandinaviska Enskilda Banken, Class A 28
500 Skanska AB, Class B 21
100 SKF AB, Class A 2
200 SKF AB, Class B 5
1,100 Stora Kopparbergs Bergslags Aktiebolag, Class A 15
100 Stora Kopparbergs Bergslags Aktiebolag, Class B 1
800 Svenska Cellulosa AB, Class B 17
1,000 Svenska Handelsbanken, Class A 35
1,700 Swedish Match AB 6
4,300 Telefonaktiebolaget LM Ericsson, Class B 175
400 Trelleborg AB, Class B 6
500 Volvo AB, Class A 13
1,600 Volvo AB, Class B 43
-------
696
-------
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------------------
<C> <S> <C>
SWITZERLAND--5.7%
35 ABB A.G. (Bearer)* $ 47
55 Adecco S.A. 16
10 Alusuisse-Lonza Holdings A.G. (Registered) 9
1,450 Credit Suisse Group (Registered) 212
3 Fischer (Georg) A.G. 4
25 Holderbank Financiere Glarus A.G. (Registered) 4
10 Holderbank Financiere Glarus A.G., Class B 9
190 Nestle S.A. (Registered) 280
30 Novartis A.G. (Bearer) 48
290 Novartis A.G. (Registered) 463
8 Roche Holdings A.G. (Bearer) 122
33 Roche Holdings A.G. (Genusss) 295
350 Schweizerischer Bankverein (Registered)* 101
5 SGS Societe Generale de Surveillance Holdings S.A., Class B 9
20 SMH A.G. (Bearer) 11
70 Swiss Re (Registered) 114
100 Union Bank of Switzerland (Bearer) 127
75 Union Bank of Switzerland (Registered) 19
170 Zurich Versicherungsgesellschaft (Registered) 72
-------
1,962
-------
UNITED KINGDOM--18.4%
8,000 Abbey National PLC 127
1,000 AMEC PLC 2
439 Amstrad PLC 0
1,000 Anglian Water PLC 14
2,000 Argos PLC 21
4,000 Arjo Wiggins Appleton PLC 11
5,000 Associated British Foods PLC 46
16,662 B.A.T. Industries PLC 149
8,205 Barclays PLC 197
1,000 Barratt Developments PLC 4
4,753 Bass PLC 68
2,000 BBA Group PLC 13
21,294 BG PLC 102
2,000 BICC Group PLC 5
4,000 Blue Circle Industries PLC 23
2,608 BOC Group PLC 42
4,889 Boots Co. PLC 72
1,000 Bowthorpe PLC 7
3,000 BPB PLC 17
2,000 British Aerospace PLC 55
5,000 British Airways PLC 45
2,000 British Land Co. PLC 22
29,172 British Petroleum Co. PLC 398
9,000 British Sky Broadcasting Group PLC 67
10,000 British Steel PLC 23
32,469 British Telecommunications PLC 250
21,948 BTR PLC 76
1,000 Burmah Castrol PLC 17
12,000 Cable & Wireless PLC 109
5,116 Cadbury Schweppes PLC 53
2,900 Caradon PLC 9
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
3,000 Carlton Communications PLC $ 23
23,000 Centrica PLC* 33
3,000 Coats Viyella PLC 5
4,000 Commercial Union PLC 55
2,079 Courtaulds PLC 10
1,000 Courtaulds Textiles PLC 6
1,000 De La Rue PLC 7
1,000 Delta PLC 5
2,000 Electrocomponents PLC 14
4,137 EMI Group PLC 31
2,000 English China Clays PLC 9
3,000 FKI PLC 9
14,190 General Electric Co. PLC 92
1,806 GKN PLC 39
18,000 Glaxo Wellcome PLC 394
5,017 Granada Group PLC 72
11,000 Grand Metropolitan PLC 100
2,000 Great Portland Estates PLC 8
5,000 Great Universal Stores PLC 59
5,000 Guardian Royal Exchange PLC 24
9,866 Guiness PLC 89
1,008 Hammerson PLC 8
3,000 Hanson PLC 15
4,000 Harrisons & Crosfield PLC 8
1,000 Hepworth PLC 4
9,000 HSBC Holdings PLC 219
4,000 HSBC Holdings PLC (75P) 102
1,000 Hyder PLC 16
2,000 IMI PLC 12
4,000 Imperial Chemical Industries PLC 59
1,000 Johnson Matthey PLC 9
3,000 Kingfisher PLC 41
6,000 Ladbroke Group PLC 27
1,000 Laird Group PLC 7
2,646 Land Securities Group PLC 43
5,000 LASMO PLC 22
6,000 Legal & General Group PLC 51
1,000 Lex Service PLC 7
26,082 Lloyds TSB Group PLC 297
4,001 Lonrho PLC 6
7,000 LucasVarity PLC 22
14,522 Marks & Spencer PLC 149
2,000 Marley PLC 4
2,142 MEPC PLC 19
1,000 Mercury Asset Management Group PLC 28
1,000 Meyer International PLC 7
9,000 National Grid Group PLC 45
6,000 National Power PLC 57
2,000 Next PLC 25
1,000 Ocean Group PLC 10
2,920 Pearson PLC 41
3,112 Peninsular and Oriental Steam Navigation Co. 34
5,290 Pilkington PLC 12
1,000 Provident Financial PLC 12
10,000 Prudential Corp. PLC 107
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------------
INTERNATIONAL EQUITY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
UNITED KINGDOM--Continued
1,000 Racal Electronics PLC $ 4
3,000 Railtrack Group PLC (Partial Paid) 50
4,000 Rank Group PLC 23
3,000 Redland PLC 17
4,832 Reed International PLC 51
8,000 Reuters Holdings PLC 90
3,000 Rexam PLC 15
1,000 RMC Group PLC 15
7,000 Rolls-Royce PLC 28
7,000 Royal & Sun Alliance Insurance Group PLC 63
4,000 Royal Bank Scotland Group PLC 46
5,474 RTZ Corp. PLC 66
3,000 Rugby Group PLC 6
6,000 Safeway PLC 33
8,953 Sainsbury (J) PLC 73
1,000 Schroders PLC 29
3,000 Scottish & Newcastle PLC 35
5,000 Scottish Power PLC 40
7,410 Sears PLC 6
3,000 Sedgwick Group PLC 6
2,000 Slough Estates PLC 12
28,000 SmithKline Beecham PLC 260
1,000 Smiths Industries PLC 13
2,000 Southern Electric PLC 15
2,000 St. James Place Capital PLC 5
2,000 T&N PLC 8
4,529 Tarmac PLC 9
2,000 Tate & Lyle PLC 16
2,000 Taylor Woodrow PLC 6
10,583 Tesco PLC 85
2,000 Thames Water PLC 30
1,714 Thorn PLC 4
2,000 TI Group PLC 16
1,000 Transport Development Group PLC 3
1,162 Unigate PLC 11
15,868 Unilever PLC 125
2,579 United Biscuits Holdings PLC 9
3,000 United Utilities PLC 39
2,000 Vickers PLC 8
1,000 Viglen Technology Letters of Entitlement to Litigation Notes 0
1,000 Viglen Technology PLC 1
1,630 Viglen Technology PLC 4
16,000 Vodafone Group PLC 107
2,666 Williams PLC 14
2,000 Willis Corroon 4
1,000 Wilson (Connolly) Holdings PLC 3
2,000 Wimpey (George) PLC 4
3,000 Wolseley PLC 26
4,000 Zeneca Group PLC 127
-------
6,313
- -------------------------------------------------------------------------------
TOTAL COMMON STOCK (Cost $28,982) $28,178
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
PREFERRED STOCK--0.5%
AUSTRALIA--0.1%
7,100 News Corp. Ltd. $ 35
2,600 Sydney Harbour Casino Holdings Ltd.* 2
-------
37
-------
AUSTRIA--0.0%
4 Bau Holdings A.G.--Vorzug 0
75 Bank Austria A.G.--Vorzug 3
74 Creditanstalt-Bankverein--Vorzug 4
4 EA-Generali A.G.--Vorzug 1
-------
8
-------
FRANCE--0.0%
100 Casino Guichard--Perrachon S.A. 4
-------
GERMANY--0.4%
950 RWE A.G.--Non Voting 38
200 SAP A.G.--Vorzug 61
50 Volkswagen A.G.--Non Voting 23
-------
122
-------
ITALY--0.0%
5,300 Fiat S.p.A. 8
- -------------------------------------------------------
TOTAL PREFERRED STOCK (Cost $145) $ 179
- -------------------------------------------------------
OTHER--8.9%
AUSTRALIA--0.4%
15,000 WEBS Index Series--Australia $ 138
-------
GERMANY--1.1%
23,000 WEBS Index Series--Germany 388
-------
HONG KONG--0.2%
7,400 WEBS Index Series--Hong Kong 82
-------
ITALY--0.0%
800 WEBS Index Series--Italy 15
-------
JAPAN--3.6%
115,800 WEBS Index Series--Japan 1,216
-------
SPAIN--0.5%
7,400 WEBS Index Series--Spain 149
-------
SWEDEN--0.4%
7,500 WEBS Index Series--Sweden 141
-------
SWITZERLAND--1.1%
25,100 WEBS Index Series--Switzerland 373
-------
UNITED KINGDOM--1.6%
30,800 WEBS Index Series--United Kingdom 534
- -------------------------------------------------------
TOTAL OTHER (Cost $3,514) $ 3,036
- -------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ----------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT--0.5%
Banco Central Hispanoamericano,
Grand Cayman
$ 163 5.750%Due 12/01/97 $ 163
- ----------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $163) $ 163
- ----------------------------------------------------
TOTAL INVESTMENTS--92.2%
(Cost $32,804) $31,556
- ----------------------------------------------------
Other assets, less liabilities--7.8% 2,688
- ----------------------------------------------------
NET ASSETS--100.0% $34,244
- ----------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
*Non-income producing security.
At November 30, 1997 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<S> <C>
Industry/Sector
- -----------------------------------
Banks 13.5%
Capital Goods 5.5
Consumer Goods 17.3
Energy/Utilities 12.8
Financial Services 7.9
Pharmaceuticals/Health Care 7.5
Multi-Industry 12.8
Raw Materials 6.8
Retail 3.8
Technology 3.5
Transportation 2.1
Other 6.5
- -----------------------------------
Total 100.0%
- -----------------------------------
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--94.0%
ARGENTINA--0.3%
25,000 Banco Rio de la Plata S.A. $ 314
--------
AUSTRALIA--1.9%
75,000 National Australia Bank 994
185,000 News (The) Corp. Ltd. 990
--------
1,984
--------
AUSTRIA--0.7%
5,000 VA Technologie A.G. 753
--------
CZECH REPUBLIC--0.5%
90,000 Czechoslovakia & Slovak Investment Corp.* 540
12,000 Czechoslovakia & Slovak Investment Corp. Warrants* 8
--------
548
--------
FRANCE--9.5%
7,000 Accor S.A.* 1,323
8,000 Alcatel Alsthom 1,003
27,000 Axa-UAP 1,959
6,000 Castorama Dubois Investisse 708
9,000 Cie Generale des Eaux 1,189
25,000 Credit Commercial de France 1,482
12,000 Elf Aquitaine S.A. 1,392
17,000 Lafarge S.A. 1,123
--------
10,179
--------
GERMANY--8.7%
3,000 Allianz A.G. 712
25,000 Deutsche Bank A.G. 1,603
20,000 Commerzbank A.G. 695
15,000 Deutsche Telekom A.G. 304
30,000 Deutsche Telekom A.G. ADR 613
4,000 Karstadt A.G. 1,390
27,000 Siemens A.G. 1,585
40,000 VEBA A.G. 2,377
--------
9,279
--------
ITALY--5.6%
80,000 Assicurazioni Generali 1,794
600,000 Credito Italiano 1,642
110,000 ENI S.p.A. 642
435,000 Pirelli S.p.A. 1,080
140,000 Telecom Italia S.p.A. 873
--------
6,031
--------
JAPAN--21.9%
80,000 Bank Of Tokyo-Mitsubishi Ltd. 1,160
115,000 Daiwa House Industry Co. Ltd. 928
100,000 Fujitsu Ltd. 1,120
140,000 Industrial Bank of Japan Ltd. 1,251
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
425,000 Itochu Corp. $ 1,102
25,000 Jafco Co. Ltd. 901
130,000 Kirin Brewery Co. Ltd. 1,001
17,000 Matsumotokiyoshi 599
70,000 Mitsubishi Estate Co. Ltd. 812
185,000 Mitsui & Co. 1,286
7,000 Nintendo Co. Ltd. 724
110,000 Nippon Compys Corp. 1,439
235 Nippon Telegraph & Telephone Corp. 1,933
60,000 Nomura Securities Co. Ltd. 743
230,000 Obayashi Corp. 1,081
10,000 Promise Co. Ltd. 552
70,000 Ricoh Co. Ltd. 845
110,000 Sanwa Bank (The) Ltd. 1,207
15,000 Secom Co. Ltd. 940
140,000 Sumitomo Realty & Development Co. Ltd. 938
60,000 Takashimaya Co. Ltd. 480
115,000 Tokio Marine & Fire Insurance 1,090
40,000 Xebio Co. Ltd. 483
55,000 Uny Co. Ltd. 811
--------
23,426
--------
NETHERLANDS--5.3%
25,000 ING Groep N.V. 1,016
35,000 Koninklijke PTT Nederland N.V. 1,405
28,000 Vendex International N.V. 1,462
75,000 VNU 1,796
--------
5,679
--------
NORWAY--0.9%
55,000 Saga Petroleum ASA, Class A 979
--------
PORTUGAL--1.8%
35,000 Cimpor S.A. 887
22,000 Portugal Telecom S.A. 1,009
--------
1,896
--------
SOUTH AFRICA--0.6%
30,000 Nedcor Ltd. 680
--------
SOUTH KOREA--0.0%
368 Daewoo Corp. 1
--------
SPAIN--2.5%
30,000 Banco Bilbao Vizcaya S.A. 906
20,000 Repsol S.A. ADR 863
10,000 Telefonica de Espana ADR 865
--------
2,634
--------
SWEDEN--3.1%
35,000 Autoliv, Inc. 1,325
25,000 Electrolux AB, Series B 1,969
--------
3,294
--------
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C>
SWITZERLAND--7.5%
1,100 Nestle S.A. $ 1,619
1,100 Novartis A.G. 1,758
155 Roche Holding A.G. 1,387
1,200 Union Bank of Switzerland 1,528
4,000 Zurich Versicherungs-Gesellschaft A.G. 1,683
--------
7,975
--------
UNITED KINGDOM--23.2%
175,000 Baa PLC 1,473
19,000 British Pertroleum Co. PLC ADR 1,577
130,000 CRH PLC 1,528
240,000 General Electric Co. PLC 1,559
35,000 Glaxo Wellcome PLC ADR 1,599
165,000 Grand Metropolitan PLC 1,498
320,000 Ladbroke Group PLC 1,450
160,000 Lloyds TSB Group PLC 1,820
280,000 National Grid Group PLC 1,387
110,000 National Westminster Bank PLC 1,664
125,000 Pearson PLC 1,737
245,000 Shell Transport & Trading Co. 1,663
32,000 SmithKline Beecham PLC ADR 1,588
270,000 Tomkins PLC 1,369
115,000 United Utilities PLC 1,474
22,000 Vodafone Group PLC ADR 1,452
--------
24,838
- -------------------------------------------------------------
TOTAL COMMON STOCKS (Cost $96,129) $100,490
- -------------------------------------------------------------
SHORT-TERM INVESTMENT--6.5%
Banco Central Hispanoamericano,
Grand Cayman
$ 7,006 5.750% Due 12/01/97 $ 7,006
- -------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $7,006) $ 7,006
- -------------------------------------------------------------
TOTAL INVESTMENTS--100.5%
(Cost $103,135) $107,496
- -------------------------------------------------------------
Liabilities, less other assets--(0.5)% (488)
- -------------------------------------------------------------
NET ASSETS--100.0% $107,008
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
*Non-income producing security.
At November 30, 1997 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<CAPTION>
Industry/Sector
- -----------------------------------
<S> <C>
Banks 11.3%
Basic Industry 16.0
Capital Goods 10.3
Consumer Goods 17.9
Financial Services 16.3
Pharmaceuticals/Health Care 6.3
Real Estate 1.7
Retail 2.9
Technology 1.9
Telecommunications 8.4
Other 7.0
- -----------------------------------
Total 100.0%
- -----------------------------------
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--92.9%
AGRICULTURE--0.5%
4,800 DeKalb Genetics Corp. $ 187
6,053 Delta & Pine Land Co. 160
6,400 Dimon, Inc. 160
8,300 Longview Fibre Co. 134
1,400 Tejon Ranch Co. 41
--------
682
--------
APPAREL--0.5%
2,900 Converse, Inc.* 21
5,200 Designer Holdings, Ltd.* 49
2,100 Donna Karan Intl, Inc.* 25
900 Fossil, Inc.* 20
1,400 Gadzooks, Inc.* 39
4,000 Genesco, Inc.* 52
1,100 Guess ?, Inc.* 9
3,900 Hartmarx Corp.* 32
3,450 Kellwood Co. 118
5,500 Nautica Enterprises, Inc.* 154
1,500 Oshkosh B' Gosh, Inc. 49
1,100 Oxford Industries, Inc. 39
2,700 St. John Knits, Inc. 103
4,800 Tultex Corp.* 22
1,450 Unitog Co. 33
--------
765
--------
BANKING--7.0%
3,750 Aames Financial Corp. 51
1,880 Albank Financial Corp. 87
3,750 Amcore Financial, Inc. 89
1,500 Anchor Bancorp, Inc. 47
1,200 Area Bancshares Corp. 24
8,054 Associated Banc-Corp. 401
500 Bancfirst Corp. 17
3,200 BancorpSouth, Inc. 122
1,402 Bank Granite Corp. Club, Inc. 43
1,700 BankAtlantic Bancorp, Inc. 24
1,300 Banknorth Group, Inc. 79
2,000 Bay View Capital Corp. 68
989 Brenton Banks, Inc. 32
1,300 BSB Bancorp, Inc. 40
980 BT Financial Corp. 46
1,200 Capital Bancorp of Miami, Florida 62
200 Capital City Bank Group, Inc. 7
1,000 CBT Corp. 30
1,599 Chemical Financial Corp. 64
2,087 Chittenden Corp. 92
1,350 CitFed Bancorp, Inc. 68
900 Citizens Bancshares of Ohio 56
2,550 Citizens Banking Corp. of Michigan 75
2,901 CNB Bancshares, Inc. 121
3,000 Coast Savings Financial, Inc.* 180
4,900 Colonial BancGroup, Inc. 149
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
2,661 Commerce Bancorp, Inc. $ 112
2,754 Commonwealth Bancorp 56
1,200 Community Bank System, Inc. 34
3,000 Community First Bankshares 142
1,330 Community Trust Bancorp, Inc. 40
1,500 CPB, Inc. 31
3,580 Cullen/Frost Bankers, Inc. 190
1,000 CVB Financial Corp. 29
3,163 Downey Financial Corp. 87
1,388 F & M Bancorp 51
3,255 F & M National Corp. 104
1,767 Fidelity National Corp. 46
1,500 First Citizens Bankshares, Class A.* 164
1,800 First Commerce Bankshares, Inc. 47
3,600 First Commonwealth Financial Corp. 92
700 First Federal Financial Corp. 31
1,381 First Financial Bankshares, Inc. 62
902 First Financial Corp. of Indiana 39
2,375 First Midwest Bancorp, Inc. of Illinois 94
1,422 First Source Corporation 41
1,050 First United Bancshares of Ark 40
1,832 First Western Bancorp 52
2,450 Firstbank of Illinois Co. 78
2,025 Firstbank Puerto Rico 68
2,236 FNB Corp. 74
2,825 Fort Wayne National Corp. 107
6,424 Fulton Financial Corp. 197
1,100 GBC Bancorp 60
2,300 Great Financial Corp. 110
1,100 Hamilton Bancorp, Inc* 31
1,210 Hancock Holding Co. 72
1,168 Harleysville National Corp. 43
1,650 Heritage Financial Services, Inc. 42
3,429 Hubco, Inc. 119
3,621 Imperial Bancorp* 169
3,764 Imperial Credit Industries, Inc.* 90
1,000 Investors Financial Services Corp. 42
1,000 Irwin Financial Corp. 40
8,409 Keystone Financial, Inc. 313
1,500 Klamath First Bancorp 33
1,900 Liberty Corp. 86
5,294 Magna Group, Inc. 212
1,800 Mainstreet Bankgroup, Inc. 49
1,200 Merchants New York Bancorp 35
3,974 Mid Am, Inc. 83
1,236 Mid-America Bancorp 37
500 Mississippi Valley Bancshares, Inc. 29
1,800 ML Bancorp, Inc. 52
600 National Bancorp of Alaska, Inc. 72
1,610 National City Bancshares, Inc. 77
1,468 National Penn Bancshares, Inc. 46
1,470 NBT Bancorp, Inc. 38
1,300 Ocean Financial Corp. 48
4,295 Old National Bancorp 199
1,400 Omega Financial Corp. 48
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
2,095 ONBANCorp, Inc. $ 141
4,431 One Valley Bancorp, Inc. 168
1,950 Oriental Financial Group 59
1,100 Park National Corp. 97
4,400 Peoples Heritage Financial Group, Inc. 188
1,494 Provident Bankshares Corp. 89
2,610 Republic Bancorp, Inc. 45
3,200 Riggs National Corp. 78
2,000 S & T Bancorp, Inc. 80
1,100 Santa Barbara Bancorp 50
2,800 Security Capital Corp. 61
1,600 Silicon Valley Bancshares* 84
1,500 Southwest Bancorporation of Texas* 45
14,343 Sovereign Bancorp, Inc. 272
5,519 St. Paul Bancorp, Inc. 135
1,900 Sterling Bancshares, Inc. of Texas 37
4,400 Stratus Computer, Inc.* 143
600 Student Loan Corp. 30
400 Sumitomo Bank of California 14
3,562 Susquehanna Bancshares, Inc. 116
2,500 T.R. Financial Corp. 82
2,150 Texas Regional Bancshares, Class A 59
1,700 Triangle Bancorp, Inc. 47
2,600 Trust Co. of Jersey City 57
3,730 Trustco Bank Corp. 91
5,200 Trustmark Corp. 194
2,532 UMB Financial Corp. 132
1,033 Un Planters Corp. 64
2,400 United Bankshares, Inc. 113
3,100 Us Trust Corp 183
800 USBancorp, Inc. 52
4,000 UST Corp. 106
2,100 Vermont Financial Services Corp. 58
2,200 Webster Financial Corp. 138
2,550 Wesbanco, Inc. 77
1,900 West Coast Bancorp of Oregon 50
2,300 Westamerica Bancorp 210
1,618 Westcorp, Inc. 28
3,400 Weternbank Puerto Rico 63
3,375 Whitney Holding Corp. 169
--------
10,362
--------
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
3,800 Arch Coal, Inc. 100
1,100 Nacco Industries, Inc. 120
--------
220
--------
BROKERAGE AND FINANCIAL SERVICES--3.2%
400 American Financial Enterprises, Inc. 16
400 Ameritrade Holdings Corp., Class A* 13
5,800 Amresco, Inc.* 162
6,100 Arcadia Financial, Ltd.* 51
2,900 Bank Plus Corporation* 32
4,600 Bank United Corp., Class A 193
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
787 BOK Financial Corp.* $ 32
400 Capital Factors Holdings, Inc.* 7
2,100 CapMAC Holdings, Inc. 71
2,100 CFX Corporation 58
95 Charter One Financial, Inc. 6
2,400 Cityscape Financial Corp.* 4
3,600 CMAC Investment Corp. 187
3,450 Commercial Federal Corp. 166
5,750 Crawford & Co., Class B 119
3,500 Credit Acceptance Corp.* 18
6,000 Crimmi Mae, Inc. 89
800 Delta Financial Corp.* 13
2,100 Dime Community Bancorp, Inc. 49
2,300 Doral Financial Corp. 50
900 Everen Capital Corp. 36
1,550 Financial Federal Corp.* 33
2,700 First Colorado Bancorp, Inc. 61
1,300 First Federal Capital Corp. 36
1,600 First Federal Financial Corp.* 58
2,667 First Financial Bancorp 126
1,000 First Financial Holdings, Inc. 43
1,198 First Indiana Corp. 31
1,500 First Republic Bank* 41
1,700 First Savings Bank of Washington 43
1,300 First Savings Bank, SLA 50
3,700 Firstplus Financial Group* 141
800 Flagstar Bancorp, Inc.* 15
1,000 Fund American Enterprise Holdings, Inc. 123
1,600 Grand Premier Financial, Inc. 23
2,800 Hambrecht & Quist Group* 107
700 Harbor Florida Bancorp, Inc. 46
100 Harbor Florida Bancorp, Inc. 7
1,300 Harris Financial, Inc. 25
2,800 HFNC Financial Corp. 42
3,700 Homeside, Inc.* 102
4,000 IMC Mortgage Company* 54
3,400 Insignia Financial Group, Inc., Class A* 67
2,000 Interra Financial, Inc. 110
1,300 Interwest Bancorp, Inc. 51
500 Investment Technology Group, Inc.* 15
1,600 Jefferies Group, Inc. 113
3,433 Legg Mason, Inc.* 166
1,600 Life Bancorp, Inc. 50
3,500 Long Beach Financial Corp.* 38
3,900 Long Island Bancorp, Inc. 184
2,880 McDonald & Co. Investments, Inc. 78
24,600 Mercury Finance Co. 18
500 Metris Companies, Inc. 19
3,737 Morgan Keegan, Inc. 75
2,734 New York Bancorp, Inc. 97
4,200 Ocwen Financial Corp.* 102
3,000 Pff Bancorp, Inc. * 55
7,150 Phoenix Duff & Phelps Corp. 54
3,500 Pioneer Group, Inc. 110
1,800 Piper Jaffray Cos., Inc. 50
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
BROKERAGE AND FINANCIAL SERVICES--Continued
2,100 Queens County Bancorp, Inc. $ 74
3,285 Quick & Reilly Group, Inc. 123
3,850 Raymond James Financial, Inc. 137
1,400 Reliance Bancorp, Inc. 46
1,997 Resource Bancshares Mortgage Group, Inc. 27
7,000 Roslyn Bancorp, Inc. 152
1,900 SEI Corp. 79
2,250 Source Services Corp.* 47
1,200 Southern Pacific Funding Corp.* 15
800 St Francis Capital Corp. 31
300 Value Line, Inc. 11
770 WFS Financial, Inc.* 9
1,700 WSFS Financial Corp.* 33
--------
4,815
--------
CHEMICALS, ALLIED PRODUCTS AND PHARMACEUTICALS--
3.5%
3,600 Affymetrix, Inc.* 124
3,600 Albermarle Corp. 90
2,600 Alberto-Culver Co., Class B 81
1,900 Algos Pharmeceuticals Corp.* 49
5,100 Alliance Pharmaceutical Corporation* 49
76 Alpha 1 Biomedicals, Inc. 0
2,300 Alpharma, Inc., Class A 53
1,900 American Safety Razor Co.* 36
4,600 Amylin Pharmaceuticals, Inc.* 31
1,300 Andrx Corp. * 51
1,100 Aphton Corp.* 13
2,400 Arris Pharmaceutical Corp.* 23
1,000 Bush Boake Allen, Inc.* 28
1,100 Cadus Pharmaceutical Corp.* 14
5,600 Calgon Carbon Corp. 62
3,900 Capstone Pharmacy Services, Inc.* 43
1,400 Carbide/Graphite Group * 54
900 Cardinal Health ,Inc. 68
3,700 Carter-Wallace, Inc. 61
1 Cell Genesys, Inc. 0
4,000 Cephalone, Inc.* 41
1,400 Chemed Corp. 55
3,300 Chemfirst, Inc. 88
3,000 Cygnus, Inc.* 68
500 Del Laboratories, Inc. 18
3,700 Dexter Corp. 147
1,700 Diagnostic Products Corp. 47
1,500 Emisphere Technologies, Inc.* 30
2,300 Fuller (H.B.) Co. 113
2,200 GelTex Pharmaceuticals, Inc.* 62
1,700 General Chemical Group, Inc. 47
3,700 Geon Co. 87
5,500 Georgia Gulf Corp. 171
2,500 Guilford Pharmaceuticals, Inc.* 56
7,200 Hanna (M.A) Co. 178
2,000 Herbalife International, Inc. 40
6,101 ICN Pharmaceuticals, Inc. 302
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
5,400 ICOS Corp.* $ 75
3,600 Immunomedics, Inc.* 18
4,700 Interneuron Pharamaceuticals* 56
4,200 Isis Pharmaceuticals, Inc.* 62
3,600 Jones Medical Industries, Inc. 119
800 Kos Pharmaceuticals, Inc.* 13
1,300 Kronos, Inc.* 41
1,200 KV Pharmaceutical Co., Class B* 26
5,100 Lawter International, Inc. 59
1,500 Learonal, Inc. 40
1,771 Life Technologies, Inc. 54
3,575 Lilly Industrial, Inc. 66
1,000 MacDermid, Inc. 72
1,000 McWhorter Technologies, Inc.* 24
3,500 Medimmune, Inc.* 134
4,400 Millennium Pharmaceuticals* 88
3,600 Mineral Technologies, Inc. 158
1,000 Miravant Medical Technologies* 47
4,468 Mississippi Chemical Corp. 87
2,500 NBTY, Inc.* 54
500 NCH Corp. 34
4,300 Nexstar Pharmeceuticals, Inc.* 59
3,800 NL Industries* 62
3,700 Noeprobe Corp.* 30
3,600 OM Group, Inc. 138
3,400 Regeneron Pharmaceuticals, Inc.* 34
3,300 Roberts Pharmaceutical Corp.* 34
5,900 Schulman (A.), Inc. 132
3,000 Scotts Co.* 88
4,400 Sepracor, Inc.* 162
4,900 Sequus Pharmaceuticals, Inc.* 38
900 Sonus Pharmaceuticals, Inc.* 35
1,400 Stepan Co. 39
2,900 Techne Corp.* 54
6,500 Terra Industries, Inc. 79
2,635 Tetra Tech, Inc.* 67
1,800 Tetra Technologies, Inc.* 42
3,000 Transkaryotic Therapies, Inc.* 104
1,100 USA Detergents, Inc.* 12
1,700 Valhi, Inc. 16
4,000 Vertex Pharmaceuticals, Inc.* 111
2,230 WD-40 Co. 60
4,400 Wellman, Inc. 93
--------
5,296
--------
COMMUNICATIONS--5.1%
2,700 ACC Corp.* 126
1,500 Ackerley Communications, Inc. 24
900 Aerial Communications, Inc.* 8
5,800 Aliant Communications, Inc. 175
2,990 American Radio Systems Corp. 149
2,600 American Mobile Satellite Corp.* 20
4,300 ANTEC Corp.* 66
1,000 BET Holdings, Inc.* 54
2,700 Black Box Corp.* 96
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
1,120 Block Drug Co., Inc. $ 51
2,900 Bowne & Co., Inc. 111
7,824 Brightpoint, Inc.* 126
6,100 Brooks Fiber Properties* 334
2,650 Cable Design Technologies Corp.* 107
2,500 Cablevision Sytems, Class A* 205
2,400 California Microwave* 44
2,100 Cellstar Corp.* 54
1,600 Cellular Communications International, Inc.* 70
3,680 Cellular Technical Services, Inc.* 10
5,200 Century Communications Corp., Class A* 36
2,100 CFW Communications Co. 48
2,300 CIDCO, Inc.* 47
2,200 Commnet Cellular, Inc.* 78
1,667 Commonwealth Telephone Enterprise * 48
7,950 Comsat Corp. 182
1,300 Consolidated Graphics, Inc.* 62
2,100 Corecomm, Inc.* 28
1,400 Cox Radio, Inc., Class A* 47
1,500 Data Transmission Network Corp.* 41
1,250 Davox Corp.* 41
7,200 DSP Communications, Inc.* 115
1,500 Echostar Communications, Class A* 27
1,300 Emmis Broadcasting Corp., Class A* 59
400 Forrester Research, Inc.* 9
1,600 General Communications, Inc.* 11
4,950 Hawaiian Electric Industries 193
1,700 Heftel Broadcasting Corp., Class A* 126
4,000 HighwayMaster Communications, Inc.* 26
1,900 Integrated Circuit Systems* 53
2,700 Intermedia Communications, Inc.* 134
2,600 IXC Communications, Inc.* 90
7,200 Jacor Communications, Inc.* 315
2,500 Jones Intercable, Inc., Class A* 35
7,800 Journal Register Co.* 132
2,200 Lamar Advertising Co.* 68
3,300 Level One Communications, Inc.* 138
2,400 Mail-Well, Inc.* 78
3,200 Marvel Entertainment Group* 4
1,800 Mastec, Inc.* 46
5,100 Mcleodusa, Inc., Class A* 189
1,900 Media General, Inc. 81
1,300 Metro Networks, Inc.* 40
6,957 Metromedia International Group, Inc.* 68
8,000 Mobile Telecommunications Technologies Corp.* 139
4,633 NTL, Inc.* 130
1,500 Ods Networks, Inc.* 13
4,800 Omnipoint Corp.* 101
1,900 On Command Corp.* 24
2,600 Outdoor Systems, Inc.* 80
6,000 P-COM, Inc.* 106
1,300 Pacific Gateway Exchange, Inc.* 51
1,598 Park Electrochemical Corp. 42
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
2,600 Paxson Communications Corp.* $ 22
2,200 Periphonics Corp.* 21
57 Perspective Biosystems, Inc. 0
2,900 Plantronics, Inc.* 108
2,400 Powertel, Inc.* 47
800 Precision Response Corporation* 6
2,200 Primus Telecommunications Group* 31
3,700 RCN Corporation* 121
1,600 SAGA Communications, Inc.* 31
1,100 Sawtek, Inc.* 32
1,100 SFX Broadcasting, Inc., Class A* 83
1,400 Sinclair Broadcast Group A* 52
1,500 Smartalk Teleservices, Inc.* 32
2,400 Snyder Communications, Inc.* 81
2,700 TCA Cable TV, Inc. 112
8,300 TCI Satellite Entertainment, Class A* 56
5,400 Tel-Save Holdings, Inc.* 117
4,100 Telespectrum Worldwide, Inc. 16
1,200 TMP Worldwide, Inc.* 22
1,350 Transaction Network Services, Inc.* 24
3,200 True North Communications, Inc. 82
6,300 U.S. Satellite Broadcasting Systems 53
4,200 United International Holdings, Inc., Class A* 44
600 United Television, Inc. 62
1,900 United Video Satellite Group, Inc.* 49
2,600 Universal Outdoor Holdings* 116
2,400 Usld Communications Corp.* 50
5,800 Vanguard Cellular Systems, Inc.* 81
4,100 Waters Corp.* 176
2,900 West Teleservices Corp.* 34
11,300 Western Wireless Corp., Class A 210
3,700 Westwood One, Inc.* 109
5,300 WinStar Communications, Inc.* 140
1,400 Woodward Governor Co. 46
1,800 Young Broadcasting Corp.* 65
--------
7542
--------
COMPUTERS AND OFFICE MACHINES--5.0%
600 Act Manufacturing, Inc.* 9
2,900 Actel Corp.* 43
3,900 Alliance Semiconductor Corp.* 25
3,100 Amati Communications Corp.* 61
3,900 American Business Info., Class B* 43
6,600 American Management Systems* 154
800 Apex Pc Solutions, Inc.* 18
1,000 Applied Graphics Technologies* 47
1,700 Arqule, Inc.* 35
1,100 Aspect Development, Inc.* 47
1,200 Atmi, Inc.* 39
4,000 Auspex Systems, Inc.* 45
3,700 Avid Technology, Inc.* 108
2,300 Aware, Inc.* 23
800 BA Merchants Services, Inc.* 13
3,466 BancTec, Inc.* 86
1,700 BEA Systems, Inc.* 24
</TABLE>
See accompanying notes to financial statements.
67
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
COMPUTERS AND OFFICE MACHINES--CONTINUED
400 BGS Systems, Inc. $ 13
2,884 Boole & Babbage, Inc.* 85
6,000 Borland International, Inc.* 61
1,600 BT Office Products International, Inc.* 16
1,600 CACI International, Inc., Class A* 32
1,796 Cambrex Corp. 81
3,200 CCC Information Services Group.* 61
900 CFM Technologies, Inc.* 17
3,500 Chips & Technologies, Inc.* 54
9,500 Cirrus Logic, Inc.* 126
1,300 Claremont Technology Group* 24
1,100 CNET, Inc.* 23
500 Complete Business Solutions* 17
3,000 Compserve Corp.* 38
4,000 Comverse Technology, Inc.* 135
7,800 Copytele, Inc.* 28
1,300 Cybermedia, Inc.* 29
2,600 Cylink Corp.* 29
1,500 Data Dimensions, Inc.* 27
6,200 Data General Corp.* 111
800 Day Runner, Inc.* 31
1,000 Deltek Systems, Inc.* 17
1,400 Dialogic Corp.* 59
5,500 Diamond Multimedia Systems, Inc.* 54
800 Digital Link Corp.* 18
700 Dupont Photomasks, Inc.* 27
2,500 Dynatech Corp.* 91
5,300 E* Trade Group, Inc. 133
1,900 Edify Corp.* 32
1,800 Encad, Inc.* 70
1,500 Evans & Sutherland Computer Corp.* 47
3,300 Exabyte Corp.* 32
1,500 Exar Corp.* 38
800 Factset Research Systems, Inc.* 20
2,500 Filenet Corp.* 69
2,400 Fonix Corp.* 14
3,100 Forte Software, Inc.* 31
4,900 FTP Software, Inc.* 11
800 General Binding Corp. 24
4,100 GT Interactive Software Corp.* 34
1,550 HBO & Co. 70
5,900 HMT Technology Corp.* 77
2,800 Hyperion Software Corp.* 121
800 I2 Technologies, Inc. 36
1,300 Indus International, Inc.* 18
3,600 Industri-Matematik Intl. Corp.* 98
1,700 Infinity Financial Tech., Inc.* 29
1,500 Information Management Resources* 39
4,500 Information Resources, Inc.* 67
6,700 Intergraph Corp.* 71
3,100 International Network Services* 56
8,200 International Rectifier Corp.* 116
2,100 Interpool, Inc. 29
1,900 Itron, Inc.* 34
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
6,100 Learning Company, Inc.* $ 111
1,000 LHS Group, Inc.* 43
2,175 Lycos, Inc.* 66
5,100 Macromedia, Inc.* 51
900 Mastech Corporation 26
200 Medic Computer Systems, Inc.* 7
1,400 Medical Manager Corp.* 26
2,600 Mercury Interactive Corp.* 63
800 Metro Information Services, Inc.* 21
2,100 Metromail Corp.* 38
1,900 Micro Linear Corp.* 14
4,600 Microprobe, Inc.* 22
1,300 Micros Systems, Inc.* 68
1,300 Microtouch Systems, Inc.* 27
800 Midway Games, Inc.* 16
3,400 Mylex Corp.* 27
2,200 National Computer Systems, Inc. 80
2,600 National Techteam, Inc.* 28
1,600 Neomagic Corp.* 27
2,300 Network Data Process Corp.* 116
2,500 Network Computing Devices* 21
6,900 Network General Corp.* 130
3,800 Object Design, Inc.* 36
1,500 Objective Systems Integrator* 14
2,800 Open Market, Inc.* 29
700 Pegasystems, Inc.* 13
2,600 Phoenix Technologies Ltd.* 38
9,998 Platinum Technology, Inc.* 260
2,400 Plexus Corp. 64
4,700 PMC-Sierra, Inc. 129
1,600 Proxim, Inc.* 19
1,000 Radiant Systems, Inc.* 20
1,000 Radisys, Inc.* 45
1,900 Rambus, Inc.* 106
12,385 Rational Software Corp.* 125
7,100 Read-Rite Corp.* 136
8,000 S3, Inc.* 51
4,400 Safeguard Scientifics, Inc.* 139
2,600 Sandisk Corp.* 64
3,100 Santa Cruz Operation, Inc.* 18
900 Seachange International, Inc.* 9
700 Semtech Corp.* 34
6,500 Sequent Computer Systems, Inc.* 151
4,500 Shiva Corp.* 40
3,200 Siebel Systems, Inc.* 133
1,900 SMART Modular Technologies, Inc.* 118
1,800 Splash Technology Holdings, Inc.* 59
600 Sunquest Information Systems * 5
1,500 Sykes Enterprises, Inc.* 35
3,050 Sylvan Learning Systems, Inc.* 124
2,800 Synetic, Inc.* 114
3,950 Technology Solutions Co.* 122
3,000 Transition Systems, Inc,* 63
2,920 Triarc Cos., Inc., Class A* 70
1,800 Trident Microsystems, Inc.* 21
3,100 USCS International, Inc.* 59
</TABLE>
See accompanying notes to financial statements.
68
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
2,100 Walker Interactive Systems* $ 27
1,500 Wall Data, Inc.* 24
6,100 Wang Labs, Inc.* 135
2,300 Wonderware Corp.* 42
5,200 Xylan Corp.* 107
2,900 Zebra Technologies Corp.* 92
2,500 Zitel Corp.* 28
--------
7,486
--------
CREDIT INSTITUTIONS--0.3%
3,972 Astoria Financial Corp. 219
1,800 IBS Financial Corp. 31
1,300 JSB Financial, Inc. 61
2,000 National Auto Credit, Inc.* 13
2,300 Ryland Group, Inc. 50
--------
374
--------
ELECTRICAL SERVICES--2.1%
1,500 Advanced Lighting Technologies, Inc.* 32
8,500 Atlantic Energy, Inc. 171
2,300 Black Hills Corp. 73
6,800 Checkfree Corp.* 178
2,200 CILCORP, Inc. 97
3,300 Eastern Utilities Association 79
9,700 El Paso Electric Co.* 65
2,900 Electroglas, Inc.* 55
2,700 Empire District Electric Co. 51
2,600 Envoy Corp.* 80
4,900 IES Industries, Inc. 172
1,600 Interstate Power Co. 53
2,550 Madison Gas & Electric Co. 52
5,300 Minnesota Power & Light Co. 205
8,000 Nevada Power Co. 186
2,200 Orange & Rockland Utilities, Inc. 88
1,900 Otter Tail Power Co. 66
6,100 PMT Services, Inc.* 96
6,700 Public Service Co. of New Mexico 137
6,300 Rochester Gas & Electric Corp. 173
5,000 Sierra Pacific Resources 169
3,850 SIGCORP, Inc. 103
1,600 TNP Enterprises, Inc. 44
5,180 Tucson Electric Power Co.* 90
2,200 United Illuminating Co. 90
8,950 Washington Water Power Co. 191
5,000 WPL Holdings, Inc. 153
3,800 WPS Resources Corp. 115
1,650 Yankee Energy System, Inc. 39
2,000 Zurn Industries, Inc. 69
--------
3,172
--------
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--6.1%
1,000 ADE Corp.* 23
3,000 Adtran, Inc.* 108
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
700 Advanced Energy Industries, Inc.* $ 14
1,075 AFC Cable Systems, Inc.* 29
3,800 Allen Telecom, Inc. * 77
2,900 Alpine Group, Inc. * 57
2,100 Altron, Inc.* 33
9,800 Ametek, Inc. 233
6,300 Ampex Corp.* 16
2,800 Amphenol Corp., Class A* 142
2,300 ANADIGICS, Inc.* 76
5,700 Anixter International, Inc.* 102
4,022 Applied Magnetics Corp.* 68
7,900 Aspect Telecommunications, Inc.* 177
2,400 Associated Group, Inc.* 78
3,575 Avant! Corp.* 86
3,220 Baldor Electric Co. 100
3,900 Belden, Inc. 129
1,900 Benchmark Electronics, Inc. 53
3,000 Berg Electronics Corp.* 69
4,400 BMC Industries, Inc. 82
4,100 Boston Technology, Inc.* 88
3,850 Burr-Brown Corp.* 116
1,000 C & D Technologies, Inc. 46
5,200 C-Cube Microsystems, Inc.* 110
3,200 Calpine Corporation* 47
5,400 Cellnet Data Systems, Inc.* 45
2,800 Central Hudson Gas & Electric 108
3,600 Central Lousiana Electric 105
5,200 Central Maine Power Co. 73
5,500 Checkpoint Systems, Inc.* 89
1,450 Chicago Miniature Lamp, Inc.* 49
1,500 Coherent Communications Systems Corp.* 41
1,500 Cohu, Inc. 53
2,900 Commonwealth Energy System 83
3,800 Computer Products, Inc.* 75
3,500 Credence Systems Corp.* 94
3,009 CTS Corp. 102
4,500 Cymer, Inc.* 86
9,850 Delmarva Power & Light 208
1,000 Digital Lightwave, Inc.* 21
6,000 Digital Microwave Corp.* 95
3,900 DII Group* 87
7,400 EG&G, Inc. 145
1,284 Electro Rent Corp.* 48
1,400 Electro Scientific Industries, Inc.* 58
1,000 Eltron International, Inc.* 31
1,300 Encore Wire Corp. * 45
2,400 ESS Technology, Inc.* 24
1,800 Essex International, Inc.* 58
1,400 Esterline Technologies Corp.* 50
2,300 FEI Company* 38
6,578 Flowserve Corporation 177
2,800 General Cable Corp. 96
3,100 General DataComm Industries, Inc.* 16
1,500 Geotel Communications Co.* 27
9,700 Glenayre Technologies, Inc.* 105
</TABLE>
See accompanying notes to financial statements.
69
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--CONTINUED
<C> <S> <C>
4,900 Griffon Corp.* $ 76
1,400 HADCO Corp.* 87
3,010 Harman International Industries, Inc. 152
1,800 Holophane Corp.* 41
3,200 Hutchinson Technologies, Inc.* 76
1,600 Imnet Systems, Inc.* 26
12,900 Integrated Device Technology, Inc.* 131
3,000 Inter-Tel, Inc.* 63
7,800 Interdigital Communications Corp.* 34
2,600 Intervoice, Inc.* 25
500 JPM Company 12
3,000 Juno Lighting, Inc. 58
2,600 Kuhlman Corp. 92
900 Lecroy Corp.* 34
4,000 Lincoln Electric Co. 149
3,000 Littelfuse, Inc.* 83
3,100 Lojack Corp.* 43
5,700 LTX Corp.* 32
3,400 Magnetek, Inc.* 71
4,550 Methode Electronics, Inc., Class A 74
1,900 Micrel, Inc.* 66
1,100 Moog, Inc., Class A* 40
3,100 MRV Communications, Inc.* 88
800 National Presto Industries, Inc. 31
1,700 Natural Microsystems Corp.* 81
2,400 North Pittsburgh Systems 42
2,878 Northwestern Public Service Co. 60
2,840 Oak Industries, Inc.* 79
400 Optical Cable Corp.* 4
5,800 Pagemart Wireless, Inc., Class A* 57
16,500 Paging Network, Inc.* 199
1,300 Perceptron, Inc.* 29
5,600 Picturetel Corp.* 49
4,237 Pioneer Standard Electronics, Inc. 70
700 Powerwave Technologies, Inc.* 17
4,100 Premisys Communications, Inc.* 113
2,475 PriCellular Corp.* 27
4,900 Ramtron International Corp.* 32
3,200 Robotic Vision Systems, Inc.* 44
1,800 Rofin-Sinar Technologies, Inc.* 27
2,800 Sammina Corp.* 190
2,100 SDL, Inc.* 35
1,400 Sheldahl, Inc.* 21
5,000 Silicon Valley Group, Inc.* 119
1,600 Siliconix, Inc.* 77
1,100 Sipex Corporation* 34
1,700 Spectrian Corp.* 35
1,000 Speedfam International, Inc.* 26
1,100 SPS Transaction Services, Inc.* 24
1,300 Standard Motor Products, Inc. 26
1,700 Stanford Telecommunications, Inc.* 38
1,000 Superior Telecom, Inc.* 38
2,000 Supertex, Inc.* 25
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
2,600 Symetricon, Inc.* $ 33
2,300 Technitrol, Inc. 73
1,600 Tekelec* 61
500 Thermedics Detection, Inc.* 5
2,900 Thermedics, Inc.* 46
500 Thermo Optek Corp.* 9
600 Thermoquest Corporation * 10
500 ThermoSpectra Corp.* 5
1,700 Thomas Industries, Inc. 54
1,300 Triquint Semiconductor, Inc.* 26
1,600 Triumph Group, Inc.* 52
3,000 Ultratech Stepper, Inc.* 74
5,400 Uniphase Corp.* 217
3,800 Unitrode Corp.* 71
2,900 Valence Technology, Inc.* 19
1,300 Veeco Instruments, Inc.* 52
5,100 Vicor Corp.* 144
2,400 Westell Technologies, Inc., Class A* 40
2,800 Windmere Corp. 68
1,700 Woodhead Industries, Inc. 33
3,000 World Access, Inc.* 74
1,000 Yurie Systems, Inc.* 25
4,547 Zenith Electronics Corp.* 35
3,250 Zilog, Inc.* 62
1,500 Zygo Corp.* 32
1,200 Zytec Corp.* 31
--------
9,044
--------
FOOD AND BEVERAGES--2.0%
5,000 Applebee's International, Inc. 106
6,700 Bob Evans Farms, Inc. 134
2,000 Boston Beer Co., Inc.* 19
963 California Water Service Co. 52
2,400 Canandaigua Brands, Inc., Class A* 115
2,400 Canandaigua Wine Company, Inc.* 113
1,600 Cheesecake Factory, Inc.* 49
400 Coca-Cola Bottling Co. 25
6,000 Coors (Adolph) Co., Class B 216
3,600 Dreyer's Grand Ice Cream, Inc. 87
3,300 Earthgrains Co. 143
1,100 Fine Host Corp.* 32
6,100 Fleming Companies, Inc. 101
2,800 Great Atlantic & Pac Tea Co. 86
5,600 Host Marriott Services Corp.* 82
3,500 Hudson Foods, Inc. 66
1,500 IHOP Corp.* 51
2,700 International Multifoods Corp. 73
2,800 Lance, Inc. 71
3,400 Landry's Seafood Restaurants, Inc.* 96
5,700 Lone Star Steakhouse Saloon, Inc.* 106
3,800 Luby's Cafeterias, Inc. 75
2,100 Michael Foods, Inc. 46
600 Mondavi (Robert) Corp., Class A* 28
700 National Beverage Corp.* 7
3,050 Papa Johns International, Inc.* 101
2,400 Rainforest Cafe, Inc.* 86
</TABLE>
See accompanying notes to financial statements.
70
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
1,400 Rare Hospitality Intl, Inc.* $ 15
7,600 Richfoods Holdings, Inc. 208
1,200 Riviana Foods, Inc. 23
2,600 Ruby Tuesday, Inc.* 68
7,600 Ryan's Family Steak Houses, Inc.* 67
2,050 Sbarro, Inc. 57
7,000 Shoney's Inc.* 31
5,000 Smithfield Foods, Inc.* 177
3,160 Suiza Foods Corp.* 184
600 United Natural Foods, Inc.* 14
1,200 Worthington Foods, Inc. 28
--------
3,038
--------
FOOD AND MANUFACTURING--0.4%
2,000 Dominick's Supermarkets, Inc.* 78
98 Farmer Bros. Co. 15
1,950 Performance Food Group Co.* 41
5,300 Ralcorp Holding, Inc.* 90
1,000 Sanderson Farms, Inc. 12
3,887 Savannah Foods & Industries, Inc. 69
100 Seaboard Corp. 36
3,700 Smucker (J.M.) Co. 92
900 TurboChef, Inc.* 9
4,100 Universal Foods Corp. 170
--------
612
--------
FURNITURE AND FIXTURES--0.6%
2,100 Bassett Furniture Industries, Inc. 62
1,300 Bush Industries, Inc. 34
2,100 CORT Business Services Corp.* 70
4,400 Ethan Allen Interiors, Inc.* 169
9,200 Heilig-Meyers Co. 119
2,900 Kimball International, Inc. 116
1,800 Knoll, Inc.* 54
2,500 La-Z-Boy Chair Co. 108
3,800 Royal Appliance Manufacturing Co.* 26
2,400 Triangle Pacific Corp.* 77
--------
835
--------
GENERAL BUILDING CONTRACTORS--1.0%
1,700 ABT Building Products Corp.* 31
2,700 AMCOL International Co. 65
1,700 Blount, Inc. 86
3,158 D. R. Horton, Inc. 56
3,900 Eagle Hardware & Garden, Inc.* 66
2,750 Fairfield Communities, Inc. * 127
4,600 Fleetwood Enterprises 164
6,300 Kaufman & Broad Home Corp. 137
1,700 N V R, Inc. * 38
1,000 NCI Building Systems, Inc.* 38
7,450 Oakwood Homes 224
2,356 Palm Harbor Homes, Inc.* 68
2,400 Pulte Corp. 97
4,800 Standard Pacific Corp. 65
3,600 Toll Brothers, Inc.* 87
1,879 U.S. Home Corp.* 70
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,400 Webb (Del E.) Corp. $ 52
--------
1,471
--------
GLASS, CLAY AND STONE PRODUCTS--0.6%
600 Ameron, Inc. 39
4,900 Ball Corp. 189
1,700 Centex Construction Products, Inc.* 52
5,600 Gentex Corp.* 139
2,700 Medusa Corp. 110
1,390 Mikasa, Inc. 19
1,400 Photronics, Inc.* 67
700 Puerto Rican Cement Co. 30
3,600 Southdown, Inc. 208
--------
853
--------
HEALTH SERVICES--4.4%
2,900 Access Health Marketing, Inc.* 86
1,600 Alternative Living Services * 43
1,700 American HomePatient, Inc.* 35
4,500 Apogee, Inc. 100
8,300 Apria Healthcare Group, Inc. * 131
5,000 Arterial Vascular Engineer * 277
2,300 ATL Ultrasound, Inc. 99
1,300 Atria Communities, Inc. * 22
1,300 Barr Labs, Inc.* 47
1,400 Bio-Rad Labs, Inc.* 35
1,800 Cardiothoracic Systems, Inc. * 11
1,400 Carematrix Corporation * 37
4,200 Cerner Corp.* 101
1,000 Closure Medical Corporation * 25
1,600 Compdent Corp.* 33
2,000 Cooper Companies, Inc. * 78
3,700 COR Therapeutics, Inc.* 84
9,250 Covance, Inc. * 168
5,300 Creative BioMolecules, Inc.* 41
2,000 Curative Health Services, Inc.* 57
3,223 Enzo Biochem, Inc.* 52
2,100 Fuisz Technologies, Ltd.* 19
12,000 Gensia, Inc.* 61
3,500 Graham Field Health PDS * 52
2,400 Gulf South Medical Supply, Inc.* 78
3,700 Haemonetics Corp.* 54
2,021 Healthdyne Technologies, Inc.* 39
1,943 HealthPlan Services Corp.* 38
2,400 Heartport, Inc. * 54
1,600 Henry Schein, Inc. 56
3,600 Human Genome Sciences, Inc.* 148
1,900 I-STAT Corp.* 35
2,900 IDEC Pharmaceuticals Corp.* 101
5,600 Idexx Laboratories, Inc. * 89
800 IDX Systems Corp.* 24
12,700 Imatron, Inc. * 43
3,200 Incyte Pharmaceuticals, Inc.* 129
2,200 Inhale Therapeutic Systems* 68
6,448 Integrated Health Services 196
</TABLE>
See accompanying notes to financial statements.
71
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
HEALTH SERVICES--Continued
4,500 Invacare Corp. $ 104
800 Lab Holdings, Inc. 19
400 Labone, Inc. 7
7,600 Laboratory Corp. of American Holdings * 16
1,400 Landauer, Inc. 37
4,458 Ligand Pharmaceuticals, Inc.* 57
4,700 Magellan Health Services, Inc.* 112
3,700 Mariner Health Group, Inc.* 54
2,200 Martek Biosciences Corp.* 25
2,800 Maxicare Health Plans, Inc.* 36
1,700 Medical Resources, Inc. * 15
2,200 Medicis Pharmaceutical, Class A * 94
2,100 Mediq, Inc * 21
1,100 MiniMed, Inc.* 41
1,800 MMI Cos., Inc. 43
1,633 Morrison Health Care, Inc. 29
1,500 Myriad Genetics, Inc.* 41
5,300 Nabi, Inc. * 23
2,500 National Surgery Centers, Inc.* 63
2,900 NCS Healthcare, Inc., Class A * 77
2,800 Neurex Corp.* 44
1,900 Neurogen Corp.* 37
5,000 Neuromedical Systems, Inc.* 19
9,800 Novacare, Inc. * 121
3,200 Nova Corp.* 86
3,200 Oakley, Inc. * 30
2,100 Oec Medical Systems, Inc. * 45
2,900 OIS Optical Imaging Systems, Inc.* 5
900 Oxigene, Inc. * 16
4,000 Paracelsus Healthcare Corp. * 22
2,810 Paragon Health Network, Inc. * 146
2,600 PathoGenesis Corp.* 92
1,600 Pediatrix Medical Group* 71
900 Perclose, Inc.* 18
10,700 Perrigo Co.* 152
1,100 PHP Healthcare Corp.* 18
6,200 Physician Sales & Service * 141
2,600 Prime Medical Services, Inc.* 34
2,300 Psychemedics Corp. 14
4,800 Quest Diagnostics, Inc. * 78
3,600 Renal Care Group, Inc. * 114
3,700 Renal Treatment Centers, Inc. * 123
1,200 RES-CARE, Inc.* 28
5,200 Rexall Sundown, Inc.* 124
600 RightChoice Managed Care, Inc., Class A* 6
1,900 Rural/Metro Corp.* 64
1,400 Sabratek Corp. * 37
2,700 Safeskin Corp.* 129
2,400 Serologicals Corp.* 53
6,880 Sun Healthcare Group, Inc.* 148
1,500 Sunrise Assisted Living, Inc. * 54
3,000 Thermo Cardiosystems, Inc. * 58
2,300 Thermolase Corp. * 32
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
6,333 Total Renal Care Holdings * $ 164
1,000 Trex Medical Corp. * 14
2,200 Triangle Pharmaceuticals, Inc. * 40
3,000 Twinlab Corporation * 55
1,400 Universal Health Realty Income Trust 29
3,100 Veterinary Centers of America, Inc.* 39
2,300 Vical, Inc.* 32
2,221 Vitalink Pharmacy Services, Inc.* 53
5,300 Vivus, Inc.* 119
4,500 Zila, Inc.* 28
--------
6,492
--------
HEAVY CONSTRUCTION--0.5%
2,300 American Residential Services 31
5,900 Dal-Tile International, Inc. * 64
2,150 Elcor Corp. 52
2,100 Florida Rock Industries, Inc. 55
1,500 Giant Cement Holdings, Inc. * 37
1,950 Granite Construction, Inc. 45
7,003 Lennar Corp. 146
1,800 Lone Star Industries, Inc. 94
400 Mestek, Inc. * 7
2,091 Morrison Knudsen Corp.* 21
1,500 Nortek, Inc. * 37
1,500 Republic Group, Inc. 29
1,400 Synthetic Industries, Inc. * 41
2,500 TJ International, Inc. 62
300 Watsco, Inc. 8
--------
729
--------
INDUSTRIAL INSTRUMENTS--2.6%
3,500 Acuson Corp.* 67
3,000 ADAC Laboratories * 63
3,300 Alkermes, Inc.* 65
1,100 Analogic Corp. 41
2,200 Arrow International, Inc.* 77
4,600 Ballard Medical Products 106
2,600 Barnett, Inc.* 53
1,700 Biomatrix, Inc.* 50
2,300 Buckeye Cellulose Corp.* 101
5,800 Cincinnati Milacron, Inc.* 171
1,800 Circon Corp.* 27
3,100 CNS, Inc. * 24
5,400 Cognex Corp.* 144
1,800 Coherent, Inc.* 68
2,150 Commercial Intertech Corp. 38
2,450 CONMED Corp.* 58
976 Cubic Corp. 29
2,500 Cytyc Corp.* 54
2,400 Daniel Industries, Inc. 45
2,200 Datascope Corp.* 56
1,900 Dionex Corp.* 95
3,400 Etec Systems, Inc. * 156
4,100 Ferro Corp. 157
3,300 Fisher Scientific International, Inc. 158
2,300 Fluke (John) Manufacturing Co., Inc.* 55
</TABLE>
See accompanying notes to financial statements.
72
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
4,300 Genrad, Inc.* $ 114
4,700 Gilead Sciences, Inc.* 162
875 Hach Co. 10
1,800 Hologic, Inc.* 47
4,200 Kennametal, Inc. 221
900 Lunar Corp.* 20
2,300 Marquette Medical Systems, Inc.* 52
3,300 Mascotech, Inc. 57
3,964 Mentor Corp. 135
600 Mine Safety Appliances Co. 40
1,500 MTS Systems Corp. 58
2,800 Physio-Control International Corp.* 44
1,900 Possis Corp.* 27
3,200 Respironics, Inc.* 86
2,600 SangStat Medical Corp.* 91
1,600 Spine-Tech, Inc. * 53
1,800 Staar Surgical Co.* 31
1,100 Starrett (L.S.) Co. 42
2,800 Sunrise Medical, Inc.* 44
1,000 Tech-Sym Corp.* 30
2,650 TECNOL Medical Products, Inc.* 58
1,800 Theragenics Corp.* 72
2,500 Theratech, Inc.* 26
3,600 Trimble Navigation, Ltd.* 76
900 Vital Signs, Inc. 18
1,296 Watkins-Johnson Co. 41
2,500 Watsco, Inc. 65
2,400 X-Rite, Inc. 46
1,700 Zoltek Companies, Inc.* 63
---------
3,787
---------
INSURANCE SERVICES--3.8%
2,000 Acceptance Insurance Cos., Inc.* 49
3,000 Alfa Corp. 49
2,375 Allied Group, Inc. 97
1,424 American Annuity Group, Inc.* 30
1,450 American Heritage Life Investment Corp. 53
3,700 Amerin Corp.* 86
800 Amerus Life Holdings, Class A 26
2,200 Amvestors Financial Corp. 48
3,100 Argonaut Group, Inc. 103
1,900 Baldwin & Lyons, Inc. 46
3,700 Berkley (W.R.) Corp. 154
1,700 Blanch (E.W.) Holdings, Inc. 59
1,700 Capital RE Corp. 95
1,400 Capitol Transamerica Corp. 33
1,300 Chartwell Re Corporation 44
1,100 Citizens Corporation 32
2,000 CNA Surety Corporation * 29
3,200 Commerce Group, Inc. 100
5,300 Coventry Corp.* 79
2,399 Delphi Financial Group, Inc.* 96
2,100 Enhance Financial Services Group, Inc. 117
1,700 Executive Risk, Inc. 111
2,700 FBL Financial Group, Inc., Class A 107
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
4,974 FINL Security Assurance Holdings, Inc. $ 218
1,600 First American Financial, Corp. 98
1,200 Foremost Corp. of America 73
3,612 Fremont General Corp. 166
4,068 Frontier Insurance Group, Inc. 98
3,085 Gainsco, Inc. 26
2,600 Gallagher (Arthur J.) & Co. 93
1,500 Guarantee Life Companies, Inc. 37
500 Guaranty National Corp. 18
2,000 Harleysville Group, Inc. 46
4,200 Hartford Life, Class A 161
4,900 HCC Insurance Holdings, Inc.* 92
2,400 Highlands Insurance Group, Inc.* 68
2,100 Hilb, Rogal & Hamilton Co. 40
3,200 HSB Group, Inc. 166
3,300 International Alliance Services, Inc.* 48
4,100 John Alden Financial Corp. 110
600 Kansas City Life Insurance Co. 50
1,400 Life Reinsurance Corp. 80
2,800 Life USA Holding, Inc.* 47
700 Markel Corp.* 108
900 Meadowbrook Insurance Group, Inc. 21
3,300 Medical Assurance, Inc.* 94
2,300 NAC Re Corp. 103
300 National Western Life Insurance Co.* 28
600 Nationwide Financial Services, Class A 21
700 Nymagic, Inc. 18
4,480 Orion Capital Corp. 202
900 Penn Treaty American Corp.* 29
4,300 Penncorp Financial Group, Inc. 145
900 Philadelphia Consolidated Holding Corporation 15
1,050 Poe & Brown, Inc. 44
4,000 Presidential Life Corp. 81
1,951 PXRE Corp. 58
6,100 Reinsurance Group of America, Inc. 260
1,914 Reliastar Financial Corp. 71
2,700 Risk Capital Holdings, Inc.* 62
1,165 RLI Corp. 51
2,100 Scpie Holdings, Inc. 59
2,300 Selective Insurance Group, Inc. 116
2,500 Sierra Health Services, Inc.* 91
1,650 State Auto Financial Corp. 41
1,200 Titan Holdings, Inc. 25
1,950 Trenwick Group, Inc. 72
2,100 Triad Guaranty, Inc. 62
4,120 United Cos. Financial Corp. 91
1,150 United Fire & Casualty Co. 50
1,300 United Wisconsin Services, Inc. 32
2,000 Vesta Insurance Group, Inc. 110
1,800 Washington National Corp. 60
1,600 Zenith National Insurance Corp. 43
--------
5,641
--------
JEWELRY AND PRECIOUS METALS--0.0%
1,500 Oneida Ltd. 56
--------
</TABLE>
See accompanying notes to financial statements.
73
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
LEATHER PRODUCTS--0.2%
2,900 Brown Group, Inc. $ 47
2,700 Justin Industries, Inc. 39
800 Timberland Co.* 62
2,300 Wolverine Tube, Inc.* 73
--------
221
--------
LUMBER AND WOOD PRODUCTS--0.1%
850 Halter Marine Group, Inc.* 24
5,600 Newport News Shipbuilding* 136
2,200 Pope & Talbot, Inc. 36
--------
196
--------
MACHINERY--2.6%
2,800 Aftermarket Technology Corp.* 57
600 Ag-Chem Equipment Co., Inc.* 10
1,300 Alamo Group, Inc. 27
1,700 Allied Products Corp. 41
1,400 Asyst Technologies, Inc.* 43
1,800 Avondale Industries, Inc.* 51
1,800 Brown & Sharpe Mfg. Co., Class A * 18
1,600 Cascade Corp. 29
1,300 Chart Industries, Inc. 30
1,800 Columbus Mckinnon Corp. 42
2,266 Commercial Metals Co. 75
3,200 Donaldson Co., Inc. 154
1,100 DT Industries, Inc. 31
1,500 Excel Industries, Inc. 29
3,000 Figgie International Holdings, Inc.* 41
668 Franklin Electric Co., Inc. 37
3,600 FSI International, Inc.* 55
1,200 Gardner Denver Machinery, Inc. * 45
1,400 Gleason Corp. 36
3,600 Global Industrial Technologies, Inc.* 64
1,997 Graco, Inc. 71
4,800 Hayes Wheels Intl., Inc. * 143
2,700 Helix Technology Corp. 64
1,000 Hirsch International Corp., Class A * 20
4,725 IDEX Corp. 157
6,800 Imation Corp. * 119
3,000 Indentix, Inc. 30
2,700 Integrated Process Equipment Corp.* 58
2,600 Ionics, Inc.* 96
7,000 JLG Industries, Inc. 90
5,300 Kaydon Corp. 175
3,600 Kulicke & Soffa Industries, Inc.* 99
1,500 Lindsay Manufacturing Co.* 61
2,825 Manitowoc Co., Inc. 94
8,300 Marine Drilling Co., Inc.* 189
9,600 Mentor Graphics Corp. * 91
3,600 Modine Manufacturing Co. 122
3,450 Mohawk Industries, Inc.* 104
2,300 Nordson Corp. 121
2,300 Omniquip International, Inc. 44
1,600 Osmonics, Inc.* 23
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
599 Pilgrims Pride Corp. $ 10
3,400 Regal-Beloit Corp. 92
2,300 Rexel, Inc.* 52
1,248 Robbins & Myers, Inc. 48
5,000 Roper Industries, Inc. 144
1,800 Specialty Equipment Cos., Inc.* 28
2,200 SPX Corp. 150
3,800 TBC Corp. * 38
1,800 Terex Corp. * 37
1,200 Thermadyne Holdings Corp. * 36
1,900 Thermo Fibertek, Inc. * 22
3,125 Titan International, Inc. 63
1,900 Toro Co. 84
700 Tractor Supply Co.* 11
2,700 Varco International, Inc.* 138
--------
3,839
--------
MANUFACTURING--GENERAL--1.0%
700 Bacou U.S.A., Inc.* 12
3,280 Brady (W.H.) Co. 101
1,000 Consolidated Cigar Holdings, Inc. * 28
2,550 Cuno, Inc. * 43
1,100 DBT Online, Inc. * 28
6,500 First Brands Corp. 167
9,000 Furniture Brands International, Inc.* 176
2,800 General Cigar Holdings, Inc. 66
1 General Cigar Holdings, Inc., Class B * 0
3,000 Hexcel Corp.* 76
2,300 Innovex, Inc. 53
1,300 Insilico Corp.* 45
2,000 Jabil Circuit, Inc.* 96
6,300 Kemet Corp.* 149
1,000 Matthews International Corp., Class A 43
4,600 Polymer Group, Inc. * 45
1,500 Rockshox, Inc. * 13
2,600 Samsonite Corp.* 94
2,400 Seattle Filmworks, Inc.* 24
800 Simpson Manufacturing Co.* 28
1,700 Toy Biz, Inc.* 15
2,600 Tracor, Inc.* 73
700 Tremont Corp.* 40
700 Trigen Energy Corp. 16
1,800 U. S. Can Corporation * 30
500 Wesley Jessen Visioncare * 15
2,400 Westinghouse Air Brake Co. 55
2,800 Wireless Telecom Group, Inc. 20
--------
1,551
--------
MERCHANDISE--GENERAL--0.8%
2,100 Action Performance Companies, Inc.* 61
500 Aep Industries, Inc. * 15
4,700 American Pad & Paper Co. * 68
3,900 Amerisource Corp.* 253
800 Amscan Holdings, Inc. * 13
3,000 Central Garden & Pet Co. * 85
3,000 Church & Dwight Co., Inc. 87
</TABLE>
See accompanying notes to financial statements.
74
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
1,600 Cross (A.T.) Co. $ 17
3,100 Department 56, Inc.* 90
1,400 Hunt Corp. 30
6,300 Jostens, Inc. 151
2,500 Libbey, Inc. 99
4,400 Playtex Products, Inc.* 43
3,000 Silgan Holdings, Inc. * 104
--------
1,116
--------
METAL MINING--0.3%
1,700 Cleveland Cliffs, Inc. 73
3,500 Coeur D'Alene Mines Corp. * 30
3,900 Freeport-McMoran Copper and Gold, Inc. 123
4,317 Getchell Gold Corp.* 113
8,900 Hecla Mining Co.* 44
2,900 Stillwater Mining Co. * 53
--------
436
--------
METAL PRODUCTS--1.1%
1,200 Alltrista Corp.* 35
7,800 Amax Gold, Inc.* 17
3,000 Applied Industrial Tech, Inc. 85
2,900 Aptargroup, Inc. 165
1,700 Barnes Group, Inc. 44
1,050 Butler Manufacturing Co. 36
3,200 Century Aluminum Company 47
1,400 Chase Brass Industries, Inc.* 34
1,100 Citation Corp.* 19
2,600 Clarcor, Inc. 77
2,300 Commonwealth Industrial, Inc. 38
5,600 Equitable Resources 181
2,500 Material Sciences Corp.* 37
1,400 Maverick Tube Corp. * 40
4,700 Miller Industries, Inc.* 46
1,900 NN Ball & Roller, Inc. 16
2,600 Oregon Metallurgical Corp.* 84
700 Penn Engineering & Manufacturing Corp. 18
2,200 Quanex Corp. 65
800 Ryerson Tull, Inc., Class A * 12
1,500 Shaw Group, Inc. * 37
600 Special Metals Corp. * 11
1,628 SPS Technologies, Inc.* 71
2,700 Titanium Metals Corporation * 83
2,900 TriMas Corp. 90
2,900 Watts Industries, Inc., Class A 74
3,100 Wyman-Gordon Co.* 66
2,000 Zero Corp. 56
--------
1,584
--------
MINING, QUARRYING OF NONMETALLIC MINERAL--0.2%
2,500 Cliff's Drilling Co.* 139
2,300 RMI Titanium Corp.* 55
2,600 Zeigler Coal Holding Co. 41
--------
235
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
MISCELLANEOUS INVESTING INSTITUTIONS--1.6%
5,524 BRE Properties, Inc. $ 159
3,800 Burnham Pacific Properties, Inc. 54
8,375 Capstead Mortgage Corp. 211
7,804 Champion Enterprises, Inc.* 150
1,300 Corus Bankshares, Inc. 45
6,600 Franchise Finance Corp. 175
9,600 Geotek Communications, Inc.* 19
2,808 Horizon Group, Inc. * 33
3,700 Hospital Properties Trust 132
4,800 IRT Property Co. 58
800 John Nuveen and Company, Inc. 29
3,000 Koger Equity, Inc. 63
3,600 LTC Properties, Inc. 74
2,559 MAF Bancorp, Inc. 83
2,200 Meridian Industrial Trust, Inc. 51
6,100 Merry Land & Investment Co., Inc. 143
2,200 MGI Properties, Inc. 51
7,800 Mid Atlantic Medical Services, Inc.* 104
6,199 Patriot American Hospitality, Inc. 194
900 PEC Israel Economic Corp.* 18
1,604 Peoples First Corp. 58
4,800 Reckson Associates Realty Corp. 128
2,400 Redwood Trust, Inc. 61
2,200 Seacor Holdings, Inc.* 123
4,300 Smith, (Charles E.)
Residential Realty, Inc. 148
1,800 Trans Financial Bancorp, Inc. 62
--------
2,426
--------
NATURAL GAS TRANSMISSION--1.2%
4,750 Atmos Energy Corp. 126
2,200 Bay State Gas Co. 65
1,400 Colonial Gas Co. 35
1,500 Connecticut Energy Corp. 39
1,700 CTG Resources, Inc. 41
3,100 Eastern Enterprises 125
2,000 Energen Corp. 76
15,800 Kelley Oil and Gas Corp.* 46
2,800 Laclede Gas Co. 72
1,600 NUI Corp. 39
3,800 Oneok, Inc. 142
4,776 Piedmont Natural Gas Co. 156
4,200 Primark Corp.* 142
3,150 Public Service Co. of North Carolina, Inc. 64
2,757 Tejas Gas Corp.* 169
5,300 UGI Corp. 147
7,000 Washington Gas Light Co. 188
3,000 Wicor, Inc. 138
--------
1,810
--------
OIL AND GAS--2.9%
9,100 AGL Resources, Inc. 179
900 Aquila Gas Pipeline Corp. 13
1,700 Atwood Oceanics, Inc.* 84
5,040 Barrett Resources Corp.* 149
</TABLE>
See accompanying notes to financial statements.
75
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
OIL AND GAS--Continued
1,400 Belco Oil & Gas Corp.* $ 29
5,000 Benton Oil & Gas Co.* 72
2,900 Berry Petroleum Co. 54
4,200 Brown (Tom), Inc.* 92
3,300 Cabot Oil & Gas Corp. 68
3,100 Calmat Co. 81
800 Carbo Ceramics, Inc. 26
7,500 Chesapeake Energy Corp. 58
4,100 Coho Energy, Inc.* 42
3,900 Comstock Resources, Inc.* 51
3,600 Cross Timbers Oil Co. 83
3,600 Devon Energy Corp. 140
500 DLB Oil & Gas, Inc.* 6
2,000 Forcenergy, Inc.* 62
4,500 Forest Oil Corp.* 72
11,400 Grey Wolf, Inc.* 71
16,300 Harken Energy Corp.* 91
1,300 Houston Exploration Company* 28
2,400 HS Resources, Inc.* 38
1,100 Hugoton Energy Corp.* 11
3,600 Indiana Energy, Inc. 101
6,500 Input/ Output, Inc.* 168
3,800 KCS Energy, Inc. 90
1,900 Key Energy Group, Inc.* 46
5,176 Meridian Resource Corp.* 55
5,800 National-Oilwell, Inc.* 184
2,900 New Jersey Resources 101
1,100 North Carolina Natural Gas 36
3,600 Northwest Natural Gas Co. 101
3,200 Nuevo Energy Co.* 133
1,800 Ocean Energy, Inc.* 101
3,700 Oceaneering International, Inc.* 76
11,000 Parker Drilling Co.* 145
1,800 Patterson Energy, Inc.* 66
1,500 Pennsylvania Enterprises, Inc. 38
2,700 Plains Resources, Inc.* 45
3,100 Pool Energy Services Co.* 80
6,900 Pride International, Inc.* 191
5,700 Quaker State Corp. 88
1,000 Rutherford-Moran Oil Corp.* 20
2,093 Semco Energy, Inc. 36
4,200 Snyder Oil Corp. 83
1,220 South Jersey Industries 31
1,380 Southern Union Company* 35
4,400 Southwest Gas Corp. 82
4,000 Southwestern Energy Company 47
1,800 St Mary Land & Exploration 74
2,720 Swift Energy Co.* 59
5,200 Titan Exploration, Inc.* 62
7,000 Tuboscope Vetco International Corp.* 172
3,900 Unit Corp.* 43
5,200 Vintage Petroleum, Inc. 101
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
3,300 Western Gas Resources, Inc. 75
--------
4,365
--------
ORDNANCE AND ACCESSORIES--0.0%
3,100 Sturm Ruger & Co., Inc. $ 56
--------
OTHER SERVICES--1.8%
1,300 Abacus Direct Corp.* 54
3,700 ADR Information Services, Inc.* 89
9,150 Acnielsen Corp.* 205
800 Administaff, Inc. 18
2,600 Apac Teleservices, Inc.* 36
1,400 Applied Analytical Industries, Inc.* 17
3,000 Budget Group, Inc., Class A* 107
1,400 Caribiner Intl., Inc.* 59
800 Central Parking Corp. 46
400 Christiana Companies* 15
1,000 CKS Group, Inc.* 13
1,600 Coinmach Laundry Corp.* 32
800 Computer Learning Centers* 44
5,307 Concentra Managed Care, Inc.* 180
1,400 Education Management Corp.* 35
1,000 Firearms Training Systems* 6
3,500 FPA Medical Management, Inc.* 90
4,100 Franklin Covey Co.* 87
2,650 Kelly Services, Inc., Class A 77
1,600 McGrath Rentcorp 35
11,700 Medaphis Corp.* 59
1,700 Medquist, Inc.* 44
1,600 Memberworks, Inc.* 29
600 Metzler Group, Inc.* 23
2,300 Moneygram Payment Systems, Inc.* 30
1,100 National Processing, Inc.* 11
700 NCO Group, Inc.* 27
8,100 Ogden Corp. 216
3,800 Physicians Reliance Network* 37
1,400 Pixar, Inc.* 32
1,300 Profit Recovery Group International* 20
1,100 Quick Response Services, Inc.* 39
1,180 Registry, Inc.* 52
1,400 Rental Service Corp.* 35
3,300 Rollins, Inc. 67
24 Score Board, Inc. 0
1,500 Service Experts, Inc.* 41
1,200 Sovran Self Storage, Inc. 37
2,200 Staffmark, Inc.* 77
850 Strayer Education, Inc. 29
500 Superior Consultant Holdings* 15
2,500 Trico Marine Services, Inc.* 70
6,800 Trigon Healthcare, Inc.* 174
1,600 U S Rentals, Inc.* 41
400 Vincam Group, Inc.* 14
1,600 Wackenhut Corrections Corp.* 45
5,800 Walter Industries, Inc.* 115
1,500 Whittman-Hart, Inc.* 49
--------
2,673
--------
</TABLE>
See accompanying notes to financial statements.
76
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
PAPER PRODUCTS--0.6%
3,400 Chesapeake Corp. $ 116
1,900 Deltic Timber Corp. 55
8,500 Gaylord Container Corp.* 58
2,200 Greif Bros. Corp. 73
2,179 Mosinee Paper Corp. 65
1,700 Paragon Trade Brands, Inc. * 38
4,932 Paxar Corp.* 74
5,570 Rock-Tenn Co. 113
2,600 Schweitzer-Mauduit International, Inc. 92
2,300 Shorewood Packaging Corp.* 55
1,900 Universal Forest Products, Inc. 29
4,500 Wausau Paper Mills Co. 96
--------
864
--------
PERSONAL SERVICES--0.4%
4,150 Bristol Hotel Co.* 103
2,900 Catalina Marketing Corp.* 134
1,900 CPI Corp. 35
1,500 Equity Corp. International * 32
3,050 G & K Services, Inc. 112
4,100 Glatfelter (P.H) Co. 78
1,973 Marcus Corp. 56
4,600 Red Roof Inns, Inc.* 73
1,400 Unifirst Corp. 36
--------
659
--------
PETROLEUM PRODUCTS--0.4%
3,300 Lomak Petroleum, Inc. 57
2,956 Louis Dreyfus Natural Gas Corp.* 61
5,200 Newfield Exploration, Inc.* 121
10,160 Newpark Resources, Inc.* 203
900 RPC, Inc. 24
1,800 Seitel, Inc.* 69
1,800 Stone Energy Corp.* 52
4,300 Tesoro Petroleum Corp.* 71
--------
658
--------
PRINTING AND PUBLISHING--1.0%
1,950 American Business Products, Inc. 40
6,700 American Media, Inc., Class A * 52
2,600 Big Flower Press Holdings, Inc.* 57
900 CSS Industries, Inc.* 30
1,000 Devon Group, Inc.* 42
1,400 Express Scripts, Inc.* 83
2,600 Gibson Greetings, Inc.* 61
4,200 Golden Books Family Entertainment, Inc.* 39
5,000 Harland (John H.) Co. 103
4,800 Houghton Mifflin Co. * 179
2,575 McClatchy Newspapers, Inc., Class A 74
2,108 Merrill Corp. 42
1,750 Nelson (Thomas), Inc. 20
1,900 New England Business Service, Inc. 60
2,800 Playboy Enterprises, Inc.* 38
1,666 Pulitzer Publishing Co. 91
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,000 Scholastic Corp.* $ 76
2,100 Standard Register Co. 72
400 Steck-Vaughn Publishing Corp.* 6
7,500 Topps, Inc.* 19
400 Waverly, Inc.* 17
2,100 Wiley (John) & Sons, Inc. 96
6,100 World Color Press, Inc.* 163
--------
1,460
--------
PROFESSIONAL SERVICES--5.5%
2,620 ABM Industries, Inc. 73
6,600 Acclaim Entertainment, Inc.* 27
1,900 Activision, Inc.* 30
5,800 Acxiom Corp.* 100
600 Advent Software, Inc.* 14
3,925 Advo, Inc. * 85
5,800 Affiliated Computer Services, Inc.* 136
2,300 Alternative Resources Corp.* 56
2,600 AMERCO* 73
5,300 American Oncology Resources, Inc.* 72
2,374 Analysts International Corp. 113
1,800 Arbor Software Corp.* 54
3,400 Aspen Technologies, Inc.* 130
5,000 Banta Corp. 125
1,600 Barra, Inc.* 45
4,700 BDM International* 137
3,500 BE Aerospace, Inc.* 111
2,100 Bell & Howell Co.* 50
2,500 Billing Information Concepts* 111
4,100 Bisys Group, Inc.* 131
900 BRC Holdings, Inc.* 37
3,300 Broderbund Software, Inc.* 96
1,600 CDI Corp.* 66
1,200 Ciber, Inc.* 53
4,100 Citrix Systems, Inc.* 294
3,300 Clarify, Inc.* 35
2,100 ClinTrials Research, Inc.* 18
4,400 Computer Horizons Corp.* 145
2,400 Computer Task Group, Inc. 76
10,200 Computervision Corp.* 37
4,500 COREStaff, Inc.* 121
4,100 CSG Systems International, Inc.* 152
1,500 Documentum, Inc.* 47
4,200 Employee Solutions, Inc.* 23
1,500 Fair Isaac & Co. 64
3,200 Gerber Scientific, Inc. 64
8,500 Global Industries, Ltd.* 136
100 Grey Advertising, Inc. 36
2,600 HA-LO Industries, Inc.* 66
2,850 Harbinger Corp.* 86
1,900 HCIA, Inc.* 23
1,850 Henry (Jack) & Associates, Inc. 47
2,600 HNC Software, Inc. * 82
878 Holly Corp. 24
2,500 HPR, Inc.* 66
1,400 IKOS Systems, Inc.* 11
</TABLE>
See accompanying notes to financial statements.
77
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
PROFESSIONAL SERVICES--Continued
1,700 Inacom Corp.* $ 48
1,700 Infocus Systems* 56
1,500 Inso Corp.* 16
2,500 Integrated Systems Consulting Group, Inc.* 39
6,400 Interim Services, Inc.* 181
3,300 Intersolv, Inc.* 53
500 Intevac, Inc.* 5
900 Iron Mountain, Inc.* 34
750 ITT Educational Services, Inc.* 16
1,400 JDA Software Group, Inc.* 43
2,000 Landstar Systems, Inc.* 52
1,400 Layne Christensen Company* 24
1,600 Learning Tree International, Inc.* 40
2,800 Legato Systems, Inc.* 107
2,600 Manugistics Group, Inc.* 91
2,100 May & Speh, Inc.* 28
4,650 MDU Resources Group, Inc. 139
3,700 National Health Investors, Inc. 147
2,150 National Instruments Corp.* 58
3,400 Network Equipment Technologies, Inc.* 50
1,100 NHP, Inc.* 32
1,550 Nichols Research Corp.* 36
2,200 Nimbus CD International, Inc.* 22
2,200 Norrell Corp. 54
6,000 Oak Technology, Inc.* 50
1,700 On Assignment, Inc.* 40
5,400 Orthodontic Centers of America, Inc.* 98
1,900 Personnel Group of America, Inc.* 69
2,400 PhyMatrix Corp.* 35
4,900 Physician Computer Network, Inc.* 24
4,900 Physician Resource Group, Inc.* 28
1,250 Pinkertons, Inc.* 29
2,500 Policy Management Systems Corp.* 162
3,600 Pre-Paid Legal Services, Inc.* 102
3,400 Premiere Technologies, Inc.* 81
1,900 Progress Software Corp.* 39
1,600 Project Software & Development, Inc.* 31
2,500 Protein Design Labs, Inc.* 105
5,400 PSINET, Inc.* 36
900 Raptor Systems, Inc.* 14
3,300 Remedy Corp.* 144
2,700 Romac International, Inc.* 53
500 Sapient Corp.* 26
3,250 Scopus Technologies, Inc.* 39
7,500 Sitel Corp.* 70
6,600 Sotheby's Holdings, Inc., Class A 113
1,000 SPSS, Inc.* 25
5,400 Structural Dynamics Research Corp.* 90
4,750 System Software Associates, Inc.* 63
2,600 Systems & Computer Technology Corp.* 122
3,300 Systemsoft Corp.* 24
2,500 Telxon Corp. 61
750 Thermo Ecotek Corporation* 10
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
565 Thermo TerraTech, Inc.* $ 5
1,550 Thermotrex Corp.* 38
6,900 Vanstar Corp.* 95
1,500 Vantive Corp. * 36
3,500 Veritas DGC, Inc.* 140
4,275 Veritas Software Corp.* 187
3,000 Viasoft, Inc.* 110
2,100 VideoServer, Inc.* 32
2,700 Viewlogic Systems, Inc.* 72
3,700 Visio Corp.* 139
1,700 VISX Corp.* 42
1,300 Volt Information Sciences, Inc.* 83
2,097 Wackenhut Corp. 45
3,125 Wind River Systems* 121
3,600 Xircom, Inc.* 38
3,700 Yahoo!, Inc.* 189
1,500 Zoran Corp.* 26
--------
8,130
--------
REAL ESTATE--6.3%
1,100 Alexandria Real Estate 34
2,300 Allied Capital Commercial 74
1,500 Ambassador Apartments, Inc. 30
2,400 Amercian General Hospitality Corporation 65
3,400 American Health Properties, Inc. 88
1,812 American Homestar Corp.* 25
2,500 AMLI Residential Properties 58
5,700 Apartment Investment & Management Co. 202
5,400 Arden Realty Group, Inc. 164
1,800 Associated Estates Realty Corp. 41
5,800 Avalon Properties, Inc. 178
1,100 Avatar Holdings, Inc.* 31
4,000 Bay Apartment Communities, Inc. 160
1,800 Bedford Property Investors 37
4,200 Berkshire Realty, Inc. 48
1,400 Boykin Lodging Company 36
3,503 Bradley Real Estate Trust 71
8,000 California Realty Corp. 318
5,064 Camden Property Trust 166
2,500 Capstone Capital Corp. 59
2,500 Castle & Cooke, Inc.* 42
1,700 CB Community Real Estate Services* 57
3,500 CBL & Associates Properties, Inc. 84
2,700 Centerpoint Properties Corp. 89
4,100 Chateau Communities, Inc. 125
2,300 Chelsea GCA Realty, Inc. 87
8,100 Choice Hotels Intl., Inc.* 141
4,000 Colonial Property Trust* 115
3,800 Commercial Net Lease Realty 61
7,500 Cornerstone Properties, Inc. 145
5,200 Cornerstone Realty Income Trust 59
3,700 Cousins Properties, Inc. 112
4,500 Crown American Realty Trust 40
3,100 Developers Diversified Realty Corp. 121
6,700 Dynex Capital, Inc. 93
</TABLE>
See accompanying notes to financial statements.
78
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
2,600 Eastgroup Properties $ 56
5,300 Equity Inns, Inc. 80
2,000 Essex Property Trust, Inc. 72
3,300 Evans Withycombe Residential, Inc. 82
3,400 Excel Realty Trust, Inc. 104
6,300 Federal Realty Investment Trust 159
5,000 FelCor Suite Hotel, Inc. 182
5,800 First Industrial Realty Trust 205
4,400 First Union Real Estate 65
1,000 Forest City Enterprises, Inc. 57
3,100 Gables Residential Trust 84
5,600 General Growth Properties, Inc. 207
1,262 Getty Realty Corp. 24
3,300 Glenborough Realty Trust, Inc. 89
3,500 Glimcher Realty Trust 77
2,000 Great Lakes REIT, Inc. 38
3,100 Grubb & Ellis Co. * 39
4,600 Health Care Property Investors, Inc. 182
3,600 Health Care REIT, Inc. 92
2,700 Healthcare Realty Trust 79
7,300 Highwoods Properties, Inc. 262
1,300 Home Properties of New York, Inc. 35
2,100 Imperial Credit Mortgage Holdings 37
8,300 INMC Mortgage Holdings, Inc. 188
5,100 Innkeepers USA Trust 82
2,800 Irvine Apartment Communities, Inc. 87
2,500 JDN Realty Co. 78
2,500 JP Realty, Inc. 63
3,300 Kilroy Realty Corp. 87
6,600 Liberty Property Trust 184
4,200 LNR Property, Inc. 98
3,800 Macerich Co. 103
3,700 Manufactured Home Communities, Inc. 101
900 Maxxam, Inc.* 42
2,000 Mid-America Apartment Communities, Inc. 55
3,600 Mills Corp. 100
2,000 National Golf Properties, Inc. 64
6,700 Nationwide Health Properties, Inc. 158
2,500 Oasis Residential, Inc. 55
3,100 Ocwen Asset Investment Corp.* 56
1,900 Pacific Gulf Properties, Inc. 43
1,200 Pennsylvania Real Estate Investmentt Trust 29
4,868 Post Properties, Inc. 188
3,700 Prentiss Properties Trust 96
2,000 PRI Automation, Inc.* 68
2,000 Price Enterprises, Inc. 36
1,700 Price REIT, Inc. 67
4,200 Prime Retail, Inc. 61
4,100 Realty Income Corporation 107
3,500 Regency Realty Corp. 93
3,300 RFS Hotel Investors, Inc. 63
1,600 Saul Centers, Inc. 28
4,500 Shurguard Storage Centers, Inc. 124
2,400 Storage Trust Realty 60
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
4,400 Storage USA, Inc. $ 172
3,300 Summit Property, Inc. 68
2,600 Sun Communities, Inc. 95
5,000 Sunstone Hotel Investors, Inc. 88
1,200 Tanger Factory Outlet Center 35
5,600 Taubman Centers, Inc. 69
3,100 Thornburg Mortgage Asset Corp. 61
2,500 Town & Country Trust 44
2,900 Trinet Corporate Realty Trust 112
2,700 Urban Shopping Centers, Inc. 90
2,400 Walden Residential Properties, Inc. 59
5,800 Washington Real Estate Investment Trust 95
2,800 Weeks Corp. 90
700 Wellsford Residential Property Trust 11
2,800 Western Investment Real Estate Trust 39
2,600 Winston Hotels, Inc. 36
--------
9,391
--------
RECREATIONAL AND LEISURE SERVICES--1.6%
700 AMC Entertainment, Inc.* 15
1,000 Anchor Gaming* 80
4,800 Ascent Entertainment Group, Inc.* 52
3,000 Authentic Fitness Corp. 49
737 Autotote Corp. Class A 2
7,300 Aztar Corp.* 51
300 Bally's Grand, Inc.* 15
5,700 Boyd Gaming Corp.* 41
3,900 Capstar Hotel Company* 146
1,600 Carmike Cinemas, Inc.* 50
1,500 Coleman Co., Inc.* 20
600 Dover Downs Entertainment 13
1,400 Family Golf Centers, Inc.* 40
5,500 Florida Panthers Holdings, Inc.* 103
2,900 Galoob (Lewis) Toys, Inc.* 34
900 GC Cos., Inc.* 39
5,300 Grand Casinos* 70
2,200 Hollywood Park, Inc.* 43
2,000 Homestead Village, Inc.* 31
3,500 Interstate Hotels Company* 130
2,317 K2, Inc. 64
2,700 Lydall, Inc.* 55
7,800 Malibu Entertainment Worldwide* 28
1,800 North Face, Inc.* 39
2,900 Panavision, Inc.* 67
1,100 Penn National Gaming, Inc.* 13
900 Penske Motorsports, Inc.* 24
1,800 Premier Parks, Inc.* 70
1,200 Primadonna Resorts, Inc.* 20
6,500 Prime Hospitality Corp.* 124
700 Quintel Entertainment, Inc.* 4
2,600 Rio Hotel & Casino, Inc.* 54
3,800 Sabre Group Holdings, Inc.* 98
1,400 Scientific Games Holdings Corp.* 29
2,600 Showboat, Inc. 50
2,400 Signature Resorts, Inc.* 64
1,300 Skyline Corp. 35
</TABLE>
See accompanying notes to financial statements.
79
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
RECREATIONAL AND LEISURE SERVICES--Continued
1,700 Sodak Gaming, Inc.* $ 15
2,000 Speedway Motorsports, Inc.* 44
3,500 Spelling Entertainment Group, Inc.* 30
3,400 Station Casinos, Inc.* 23
1,600 Suburban Lodges of America* 39
2,633 Sunburst Hospitality Corp.* 26
1,600 Ticketmaster Group, Inc.* 36
3,600 Trump Hotels and Casino Resorts, Inc.* 31
4,200 Vail Resorts, Inc.* 111
900 Vistana, Inc.* 20
1,300 West Marine, Inc.* 27
600 White River Corp.* 41
2,900 WMS Industries, Inc.* 67
--------
2,372
--------
RESEARCH AND CONSULTING SERVICES--1.0%
5,400 Advance Tissue Science, Inc.* 69
4,800 Agouron Pharmaceuticals, Inc.* 184
7,400 Bio-Technology General Corp.* 93
4,600 Columbia Laboratories, Inc.* 63
275 Computer Management Sciences, Inc.* 4
7,300 Cytogen Corp.* 23
2,100 Dames & Moore, Inc. 26
700 Data Processing Resources Corp.* 16
3,400 Jacobs Engineering Group, Inc.* 90
6,000 Liposome Technology, Inc.* 36
2,600 Mycogen Corp.* 51
2,300 NeoPath, Inc.* 38
3,350 NFO Research, Inc.* 59
1,900 OHM Corp.* 16
2,900 Organogenesis, Inc.* 99
3,200 Parexel International Corp.* 110
2,745 Pharmaceutical Product Development, Inc.* 42
5,900 Scios-Nova, Inc.* 45
1,500 Spacelabs Medical, Inc.* 32
1,100 Stone & Webster, Inc. 52
5,050 Summit Technology, Inc.* 33
9,000 Symantec Corp.* 225
3,900 U.S. Bioscience, Inc.* 36
--------
1,442
--------
RETAIL--4.9%
800 99 Cents Only Stores 28
2,500 Aaron Rents, Inc. 42
1,100 Abercrombie & Fitch Co., Class A* 33
470 Alexander's, Inc.* 43
900 Amazon Com., Inc.* 45
4,700 Americredit Corp.* 130
3,600 Ames Department Stores, Inc.* 61
4,100 AnnTaylor Stores, Inc.* 58
4,812 Apple South, Inc. 88
4,500 Arbor Drugs, Inc. 122
5,500 Best Buy, Inc.* 160
6,000 BJ'S Wholesale Club, Inc. 175
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
12,550 Brinker International, Inc.* $ 185
900 Brylane, Inc.* 47
600 Buckle, Inc.* 20
7,340 Buffets, Inc.* 65
3,180 Burlington Coat Factory Warehouse* 59
2,600 Carson Pirie Scott & Co.* 134
3,900 Cash America International, Inc. 49
17,000 Charming Shoppes, Inc.* 83
2,500 Circuit City Stores, Inc.* 30
6,800 CKE Restaurants, Inc. 255
7,250 Claire's Stores, Inc. 164
2,300 Cole National Corp.* 79
2,523 Consolidated Products, Inc.* 49
1,400 Cost Plus, Inc. of California* 46
800 Cross-Continent Auto Retailer* 7
268 Dart Group Corp. 31
400 Delia*s, Inc.* 9
2,600 Dress Barn, Inc* 67
2,100 Einstein/Noah Bagel Corp.* 15
2,600 Fabri-Centers of America, Inc., Class A* 54
4,900 Fedders Corp. 28
7,400 Fingerhut Cos., Inc. 154
6,400 Foodmaker, Inc.* 99
4,900 Footstar, Inc.* 147
1,800 Friedmans, Inc., Class A* 26
2,900 Garden Ridge Corp.* 44
1,300 Genovese Drug Stores, Class A 24
2,400 Global Directmail Corp.* 43
1,000 Goody's Family Clothing, Inc.* 33
2,300 Guitar Center, Inc.* 50
4,000 Gymboree Corp.* 116
3,500 Hancock Fabrics, Inc. 49
4,000 Hollywood Entertainment Corp.* 35
5,400 Homebase, Inc.* 45
1,100 Ingles Markets, Inc. 15
1,900 International Dairy Queen, Inc., Class A* 50
3,550 Just For Feet, Inc.* 60
1,200 Kenneth Cole Productions, Class A 20
2,400 Lands' End, Inc.* 85
2,100 Linens 'N Things, Inc.* 72
4,900 Longs Drug Stores, Inc. 143
4,000 Mac Frugal's Bargains Close-Outs, Inc.* 172
2,175 Men's (The) Warehouse, Inc.* 76
3,900 Michael's Stores, Inc.* 126
5,500 Micro Warehouse, Inc.* 80
3,600 National Media Corp.* 15
2,323 Natures Sunshine Products, Inc. 51
1,500 NPC International, Inc.* 20
1,900 Nu Skin Asia Pacific, Class A* 38
2,000 O'Reilly Automotive, Inc.* 47
2,150 Pacific Sunwear California* 70
1,800 Paul Harris Stores* 38
3,050 Petco Animal Supplies, Inc.* 90
10,852 Pier I Imports, Inc. 243
7,300 Proffitt's, Inc.* 223
</TABLE>
See accompanying notes to financial statements.
80
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,000 Quality Food Centers, Inc.* $ 126
2,500 Regis Corp. 59
2,400 Renters Choice, Inc.* 54
16,100 Service Merchandise Co., Inc.* 54
2,500 Shopko Stores, Inc.* 53
2,450 Showbiz Pizza Time, Inc.* 53
1,900 Sonic Corp.* 53
2,600 Spiegel, Inc., Class A* 14
5,100 Sports Authority, Inc.* 100
4,400 Stage Stores, Inc.* 185
2,800 Stanhome, Inc. 72
1,450 Stein Mart, Inc.* 43
7,800 Stride Rite Corp. 93
8,800 Sunglass Hut International* 56
1,100 Syms Corp.* 13
1,900 Talbots, Inc. 40
2,600 The Finish Line, Class A* 49
1,300 Tuesday Morning Corp.* 32
20,484 U S Office Products Co.* 407
1,400 Ugly Duckling Corp.* 13
2,300 United Auto Group, Inc.* 32
1,500 Urban Outfitters, Inc.* 26
3,300 Valmont Industries, Inc. 72
1,500 Value City Department Stores, Inc.* 11
1,800 Wet Seal, Inc.* 53
3,200 Whole Foods Market, Inc.* 147
3,100 Williams-Sonoma, Inc.* 118
1,700 Wilmar Industries, Inc.* 45
5,600 Zale Corp.* 125
--------
7,258
--------
RUBBER AND PLASTICS--0.5%
2,100 ACX Technologies, Inc.* 56
4,300 Carlisle Cos., Inc. 183
2,300 Foamex International, Inc.* 25
1,500 Furon Co. 59
700 Liqui-Box Corp. 26
2,194 Myers Industries, Inc. 38
2,400 O'Sullivan Corp.* 31
1,200 Rogers Corp.* 49
3,900 Sola International, Inc.* 118
2,200 Spartech Corp. 36
1,100 Tredegar Industries, Inc. 72
2,100 West Co., Inc. 67
--------
760
--------
SANITARY SERVICES--0.5%
15,500 Allied Waste Industries, Inc.* 338
2,700 Centennial Cellular Corp.* 52
9,600 Laidlaw Environment Services, Inc.* 43
9,400 Safety-Kleen Corp. 261
3,100 Superior Services, Inc.* 73
--------
767
--------
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
SERVICE INDUSTRY MACHINERY--0.2%
2,000 Applied Power, Inc.* $ 122
1,700 Scotsman Industries, Inc. 43
1,400 Tennant Co. 53
2,062 Wynn's International, Inc. 67
--------
285
--------
SOCIAL SERVICES--0.2%
447 Berlitz International, Inc.* 12
4,400 DeVry, Inc.* 118
3,118 Omega Healthcare Investors, Inc. 113
--------
243
--------
STEEL PRODUCTS--1.2%
1,900 Acme Metals, Inc.* 24
7,200 AK Steel Holdings, Inc. 142
1,400 Amcast Industrial Corp. 35
15,200 Armco, Inc.* 81
4,700 Birmingham Steel Corp. 72
2,500 Brush Wellman, Inc. 59
3,100 Carpenter Technology Corp. 146
700 Chaparral Steel Co. 11
400 Curtiss Wright Corp. 31
500 Gibraltar Steel Corp.* 10
1,900 Handy & Harman 43
1,800 IMCO Recycling, Inc. 28
3,000 Intermet Corp.* 56
2,900 J & L Specialty Steel, Inc. 28
3,500 Kaiser Aluminum Corp.* 36
3,300 Lone Star Technologies, Inc.* 96
2,400 Lukens, Inc. 40
2,800 Mueller Industries, Inc.* 130
3,400 National Steel Corp., Class B* 51
3,500 Oregon Steel Mills, Inc. 69
1,350 Reliance Steel & Aluminum Co. 38
1,100 Rouge Industries, Inc., Class A 17
700 Shiloh Industries, Inc.* 13
1,900 Standex International Corp. 67
5,900 Steel Dynamics, Inc.* 109
3,400 Texas Industries, Inc. 158
3,500 Transmontaigne Oil Co.* 53
3,700 UNR Industries, Inc. 19
--------
1,662
--------
TEXTILES--0.5%
3,000 Albany International Corp. 73
9,900 Burlington Industries, Inc.* 144
3,900 Cone Mills Corp.* 31
1,200 Culp, Inc. 22
700 Fab Industries, Inc. 21
1,900 Galey & Lord, Inc.* 34
3,097 Guilford Mills, Inc. 78
3,400 Interface, Inc. 102
3,900 Phillips-Van Heusen 54
800 Pillowtex Corp. 21
</TABLE>
See accompanying notes to financial statements.
81
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1997
(All amounts in thousands, except shares and number of contracts)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--CONTINUED
<C> <S> <C>
TEXTILES--Continued
1,100 Quiksilver, Inc.* $ 29
4,500 Ruddick Corp. 92
2,000 Springs Industries, Inc. 101
--------
802
--------
TRANSPORTATION PARTS AND EQUIPMENT--1.7%
2,700 AAR Corp. 104
1,500 Alliant Techsystems, Inc.* 89
3,550 Arctic Cat, Inc. 37
3,500 Arvin Industries, Inc. 121
2,500 Aviall, Inc.* 35
1,500 Banner Aerospace, Inc.* 14
2,000 Borg Warner Automotive, Inc.* 36
2,200 Breed Technologies, Inc. 44
1 Chancellor Corp.* 0
2,500 Coachmen Industries, Inc. 56
9,800 Collins & Aikman Corp.* 87
1,200 Copart, Inc.* 21
1,400 Detroit Diesel Corp.* 32
900 Ducommun, Inc.* 29
2,500 Eaton Vance Corp. 87
2,700 Exide Corp. 64
2,200 Fairchild Corp.* 50
5,700 Federal-Mogul Corp. 234
5,200 Gencorp, Inc. 130
2,000 Huffy Corp. 30
2,600 OEA, Inc. 81
5,200 Orbital Sciences Corp.* 133
4,200 Polaris Industries, Inc. 127
1,700 Remec, Inc.* 40
3,600 Rohr, Inc.* 110
5,700 Rollins Truck Leasing Corp. 96
1,300 Sequa Corp.* 74
2,600 Simpson Industries, Inc. 30
1,900 Smith (A.O.) Corp. 81
2,725 Standard Products Co. 68
5,000 Stewart & Stevenson Services, Inc. 108
3,300 Superior Industries International, Inc. 86
689 Thor Industries, Inc. 22
2,600 Tower Automotive, Inc.* 102
3,200 Wabash National Corp. 91
1,400 Walbro Corp. 20
2,400 Winnebago Industries, Inc. 18
--------
2,587
--------
TRANSPORTATION SERVICES--1.9%
4,950 Air Express International Corp. 141
3,400 Airborne Freight Corp. 216
1,300 Airnet Systems, Inc.* 26
5,400 Airtran Holdings, Inc.* 27
2,300 Alaska Air Group, Inc.* 86
3,400 American Freightways, Inc.* 49
6,430 American West Holdings Corp. 101
3,300 Arnold Industries, Inc. 59
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
3,600 Asa Holdings, Inc. $ 105
1,400 Atlas Air, Inc.* 37
1,900 Circle International Corp., Inc. 48
2,500 Coach USA, Inc.* 70
3,500 Consolidated Freightways Corp.* 55
1,700 Covenant Transportation, Inc., Class A* 27
1,200 Eagle USA Airfreight, Inc.* 37
3,900 Expeditors International of Washington, Inc. 151
400 Florida East Coast Industries 38
3,500 Fritz Companies, Inc.* 46
7,400 Greyhound Lines, Inc.* 29
2,539 Heartland Express, Inc.* 60
3,500 Hunt (J.B.) Transportation Services, Inc. 57
1,900 Hvide Marine, Inc., Class A* 54
3,900 Kirby Corp.* 72
600 Kitty Hawk, Inc.* 11
600 Knight Transportation, Inc.* 16
1,400 M.S. Carriers, Inc.* 34
1,200 Mesaba Holdings, Inc.* 26
1,550 Midwest Express Holdings, Inc.* 53
2,800 Motivepower Industries, Inc.* 74
3,400 Offshore Logistics, Inc.* 77
6,200 OMI Corp.* 64
4,300 Overseas Shipholding Group, Inc. 104
3,300 Pittston Burlington Group 91
2,000 Roadway Express, Inc. 54
2,100 Swift Transportation Co., Inc.* 58
7,900 Trans World Airlines, Inc.* 60
4,150 US Freightways Corporation 127
3,450 Werner Enterprises, Inc. 74
1,600 Wyndham Hotel Corp.* 68
2,500 Xtra Corp. 131
4,300 Yellow Corp.* 112
--------
2,825
--------
WATER SUPPLY--0.3%
1,100 Aquarion Co. 33
4,025 Culligan Water Technologies, Inc.* 180
1,300 E'Town Corp. 46
2,700 Philadelphia Suburban Corp. 67
1,460 Southern California Water Co. 33
4,252 United Water Resources, Inc. 77
--------
436
--------
WHOLESALE--1.1%
1,000 Aviation Sales Company* 36
1,400 Bindley Western Industries, Inc. 43
4,000 Caraustar Industries, Inc. 128
4,200 Casey's General Stores, Inc. 99
1,756 Castle (A. M.) & Co. 41
1,100 CDW Computer Centers, Inc.* 65
5,100 CHS Electronics, Inc.* 96
3,500 Compucom Systems, Inc.* 36
700 Daisytek International Corp.* 27
1,400 Discount Auto Parts, Inc.* 26
</TABLE>
See accompanying notes to financial statements.
82
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
5,400 Handleman Co.* $ 36
2,000 Hughes Supply, Inc. 66
2,200 JP Foodservice, Inc.* 65
2,900 Kaman Corp. 54
4,500 Kent Electronics Corp.* 150
1,000 Lawson Products, Inc. 30
2,700 Marshall Industries* 93
2,450 Microage, Inc.* 49
1,800 Nash-Finch Co. 34
4,000 Owens & Minor, Inc. Holdings Co. 56
2,200 Patterson Dental Co.* 90
1,600 Russ Berrie & Co., Inc. 48
4,475 Rykoff-Sexton, Inc.* 99
1,700 Smart & Final, Inc. 31
2,400 United Stationers, Inc.* 102
1,900 VWR Corp.* 50
--------
1,650
- --------------------------------------------------------
TOTAL COMMON STOCKS (Cost $111,753) $138,031
- --------------------------------------------------------
RIGHTS--0.0%
1,650 Metrocall, Inc. Variable Rights $ 0
- --------------------------------------------------------
TOTAL RIGHTS (Cost $0) $ 0
- --------------------------------------------------------
WARRANTS--0.0%
248 Coram Healthcare Corp., Exp. 7/11/99 $ 0
350 Millicom American Satellite Corp.,
Exp. 06/30/99 0
- --------------------------------------------------------
TOTAL WARRANTS (Cost $0) $ 0
- --------------------------------------------------------
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
1,420 Escrow Strawbridge & Clothier 0
1,700 Escrow Takecare, Inc.* 0
- --------------------------------------------------------
TOTAL OTHER INVESTMENTS (Cost $0) $ 0
- --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -----------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 250 5.126% Due 01/02/98 $ 248
- -----------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $250) $ 248
- -----------------------------------------------------
SHORT-TERM INVESTMENT--6.3%
Banco Central Hispanoamericano,
Grand Cayman
$ 9,315 5.750% Due 12/01/97 $ 9,315
- -----------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost $9,315) $ 9,315
- -----------------------------------------------------
TOTAL INVESTMENTS--99.3%
(Cost $121,318) $147,594
- -----------------------------------------------------
Other assets, less liabilities--0.7% 983
- -----------------------------------------------------
NET ASSETS--100.0% $148,577
- -----------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
OPEN FUTURES CONTRACTS:
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Loss
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 34 $7,593 Long 12/19/97 $159
- ---------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
83
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1997
(All amounts in thousands, except net asset value per unit)
<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 securi-
ties, at cost $43,966 $109,657 $642,104 $101,687 $32,804 $103,135 $121,318
- ---------------------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $56,033 $160,828 $957,613 $125,716 $31,556 $107,496 $147,594
Cash and foreign curren-
cies 55 1 8 1 245 88 1
Receivables:
Dividends and interest 299 160 1,671 97 45 143 102
Foreign tax reclaims -- -- -- -- 20 151 --
Fund units sold 77 -- 222 8 2,501 1 2,509
Investment securities
sold -- 2,260 -- 1,194 -- 1,875 6
Administrator 7 8 43 7 -- 8 13
Deferred organization
costs, net 7 1 1 10 13 19 1
Other assets 1 1 49 1 55 1 48
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSETS 56,479 163,259 959,607 127,034 34,435 109,782 150,274
- ---------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed -- 102 958 41 -- 6 3
Investment securities
purchased 55 3,948 704 1,535 100 2,639 1,632
Accrued expenses:
Advisory fees 23 71 77 81 6 70 22
Administration fees 5 13 77 10 4 13 11
Custodian fees 3 2 18 1 5 11 21
Transfer agent fees 1 1 17 2 -- 1 1
Other liabilities 8 43 59 31 76 34 7
- ---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 95 4,180 1,910 1,701 191 2,774 1,697
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $56,384 $159,079 $957,697 $125,333 $34,244 $107,008 $148,577
- ---------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $42,065 $88,814 $572,024 $79,032 $35,186 $100,142 $111,888
Accumulated undistrib-
uted net investment in-
come 60 1,072 465 304 314 880 1,272
Accumulated net realized
gains (losses) on
investments, options,
futures and foreign
currency transactions 2,192 18,088 69,498 22,015 (5) 1,631 9,300
Net unrealized apprecia-
tion (depreciation) on
investments, options,
futures and foreign
currency transactions 12,067 51,105 315,710 23,982 (1,248) 4,361 26,117
Net unrealized losses on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- -- -- (3) (6) --
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $56,384 $159,079 $957,697 $125,333 $34,244 $107,008 $148,577
- ---------------------------------------------------------------------------------------------------------
Total units outstanding
(no par value),
unlimited units
authorized
Class A 3,787 9,774 42,022 7,148 3,245 10,154 9,827
Class C 338 -- 4,139 515 -- -- --
Class D 24 44 1,532 75 -- 23 46
- ---------------------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption
price per unit
Class A $ 13.59 $ 16.20 $ 20.09 $ 16.20 $ 10.55 $ 10.52 $ 15.05
Class C $ 13.56 -- $ 20.05 $ 16.16 -- -- --
Class D $ 13.54 $ 16.03 $ 20.00 $ 16.01 -- $ 10.39 $ 15.01
- ---------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
84
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1997
(All amounts in thousands)
<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:
Dividend $ 390 $ 1,906 $ 14,703 $ 1,319 $ 374 $2,211 $ 1,666
Interest 1,561 150 952 99 28 313 200
- ----------------------------------------------------------------------------------------------------------
TOTAL INCOME 1,951 2,056 15,655 1,418 402(b) 2,524(c) 1,866
- ----------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 433 1,157 2,493 1,284 89 1,241 484
Administration fees 86 213 883 180 27 228 186
Custodian fees 24 28 143 23 50 158 67
Registration fees 22 24 64 24 9 23 26
Amortization of deferred
organization costs 13 14 14 17 2 14 13
Transfer agent fees 11 15 172 20 2 13 13
Unitholder servicing
fees 9 1 152 13 -- -- 1
Professional fees 4 7 32 4 4 7 7
Trustee fees and ex-
penses 2 4 19 2 2 4 4
Other 10 22 127 17 7 14 23
- ----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 614 1,485 4,099 1,584 192 1,702 824
Less voluntary waivers
of:
Investment advisory
fees (163) (362) (1,662) (350) (45) (248) (242)
Administration fees (32) (68) (52) (64) (1) (69) (65)
Less: Expenses reimburs-
able by Administrator (74) (89) (304) (79) (56) (67) (129)
- ----------------------------------------------------------------------------------------------------------
Net expenses 345 966 2,081 1,091 90 1,318 388
- ----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,606 1,090 13,574 327 312 1,206 1,478
Net realized gains
(losses) on:
Investment transactions 2,227 18,208 68,839 23,248 (5) 4,391 9,472
Futures transactions -- (73) 4,094 62 -- -- 496
Foreign currency trans-
actions -- -- -- -- 2 (23) --
Written options trans-
actions -- -- -- 86 -- -- --
Net change in unrealized
appreciation (deprecia-
tion) on investments,
options, futures, and
foreign currency
transactions 4,839 14,940 119,879 4,216 (1,248) 138 13,285
Net change in unrealized
losses on translation
of other assets and
liabilities denominated
in foreign currencies -- -- -- -- (3) (21) --
- ----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $8,672 $34,165 $206,386 $27,939 $ (942) $5,691 $24,731
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
(b) Net of $33 in non-reclaimable foreign withholding taxes.
(c) Net of $227 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
85
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1997 and 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 $ 1,606 $ 1,366 $ 1,090 $ 1,372
Net realized gains (losses) on
investments, options, futures and
foreign currency transactions 2,227 1,834 18,135 14,453
Net change in unrealized appreciation
(depreciation) on investments, options,
futures, and foreign currency
transactions 4,839 2,874 14,940 10,529
Net change in unrealized losses on
translations of other assets and
liabilities denominated in foreign
currencies -- -- -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 8,672 6,074 34,165 26,354
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (1,436) (1,231) (1,369) (1,750)
Net realized gains (1,132) -- (14,420) (1,919)
- --------------------------------------------------------------------------------
Total distributions to Class A
unitholders (2,568) (1,231) (15,789) (3,669)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS
FROM:
Net investment income (151) (132) -- --
Net realized gains (152) -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class C
unitholders (303) (132) -- --
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS
FROM:
Net investment income (8) (2) (4) (2)
Net realized gains (6) -- (45) (3)
- --------------------------------------------------------------------------------
Total distributions to Class D
unitholders (14) (2) (49) (5)
- --------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 7,638 11,431 13,555 14,860
Reinvested distributions 2,538 1,076 14,520 3,424
Cost of units redeemed (9,103) (10,419) (29,982) (45,585)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A unit transactions 1,073 2,088 (1,907) (27,301)
- --------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 1,106 6,132 -- --
Reinvested distributions 303 132 -- --
Cost of units redeemed (3,329) (797) -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class C unit transactions (1,920) 5,467 -- --
- --------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 140 232 215 227
Reinvested distributions 14 2 49 5
Cost of units redeemed (96) (9) (93) (75)
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
Class D unit transactions 58 225 171 157
- --------------------------------------------------------------------------------
Net increase (decrease) 4,998 12,489 16,591 (4,464)
Net assets--beginning of year 51,386 38,897 142,488 146,952
- --------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $56,384 $51,386 $159,079 $142,488
- --------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVESTMENT
INCOME $ 60 $ 49 $ 1,072 $ 1,355
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
See accompanying notes to financial statements.
86
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
International
Equity
Equity Index Focused Growth Index International Small Company
Portfolio Portfolio Portfolio Growth Index Portfolio
- -------------------- ------------------ ------------- Portfolio ------------------
------------------
<CAPTION>
1997 1996 1997 1996 1997 (a) 1997 1996 1997 1996
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 13,574 $ 12,697 $ 327 $ 110 $ 312 $ 1,206 $ 989 $ 1,478 $ 1,443
72,933 36,012 23,396 11,548 (3) 4,368 8,942 9,968 12,846
119,879 100,945 4,216 5,017 (1,248) 138 3,186 13,285 976
-- -- -- -- (3) (21) (22) -- --
- ------------------------------------------------------------------------------------------------
206,386 149,654 27,939 16,675 (942) 5,691 13,095 24,731 15,265
- ------------------------------------------------------------------------------------------------
(12,212) (11,982) (130) (317) -- (1,022) (2,919) (1,364) (1,002)
(32,814) (15,194) (12,039) (1,293) -- (5,790) -- (13,019) (5,764)
- ------------------------------------------------------------------------------------------------
(45,026) (27,176) (12,169) (1,610) -- (6,812) (2,919) (14,383) (6,766)
- ------------------------------------------------------------------------------------------------
(1,052) (603) (4) -- -- -- -- -- --
(2,679) (570) (811) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------
(3,731) (1,173) (815) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------
(313) (60) -- (2) -- (1) (1) (1) (1)
(399) (26) (79) (8) -- (4) -- (13) (2)
- ------------------------------------------------------------------------------------------------
(712) (86) (79) (10) -- (5) (1) (14) (3)
- ------------------------------------------------------------------------------------------------
340,805 338,095 21,470 32,348 36,436 11,482 28,193 46,673 28,946
41,881 24,880 11,306 1,413 -- 5,984 2,297 13,462 6,297
(354,580) (279,296) (37,017) (27,923) (1,250) (47,748) (51,182) (35,376) (25,770)
- ------------------------------------------------------------------------------------------------
28,106 83,679 (4,241) 5,838 35,186 (30,282) (20,692) 24,759 9,473
- ------------------------------------------------------------------------------------------------
41,164 52,571 171 6,934 -- -- -- -- --
3,733 1,029 814 -- -- -- -- -- --
(28,213) (25,869) (623) (598) -- -- -- -- --
- ------------------------------------------------------------------------------------------------
16,684 27,731 362 6,336 -- -- -- -- --
- ------------------------------------------------------------------------------------------------
22,852 6,392 491 168 -- 200 71 583 223
561 86 79 10 -- 4 -- 14 3
(5,161) (332) (133) (96) -- (64) (2) (238) (13)
- ------------------------------------------------------------------------------------------------
18,252 6,146 437 82 -- 140 69 359 213
- ------------------------------------------------------------------------------------------------
219,959 238,775 11,434 27,311 34,244 (31,268) (10,448) 35,452 18,182
737,738 498,963 113,899 86,588 -- 138,276 148,724 113,125 94,943
- ------------------------------------------------------------------------------------------------
$ 957,697 $737,738 $125,333 $113,899 $34,244 $107,008 $138,276 $148,577 $113,125
- ------------------------------------------------------------------------------------------------
$ 465 $ 468 $ 304 $ 111 $ 314 $ 880 $ 720 $ 1,272 $ 1,159
- ------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
87
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
BALANCED PORTFOLIO
<TABLE>
<CAPTION>
Class A
--------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
YEAR $ 12.24 $ 11.05 $ 9.50 $ 10.22 $ 10.00
Income (loss) from investment op-
erations:
Net investment income 0.38 0.34 0.34 0.24 0.09
Net realized and unrealized gain
(loss) 1.66 1.19 1.55 (0.72) 0.22
- --------------------------------------------------------------------------------
Total income (loss) from invest-
ment operations 2.04 1.53 1.89 (0.48) 0.31
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.38) (0.34) (0.34) (0.22) (0.09)
Net realized gain (0.31) -- -- (0.02) --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (0.69) (0.34) (0.34) (0.24) (0.09)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.35 1.19 1.55 (0.72) 0.22
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 13.59 $ 12.24 $ 11.05 $ 9.50 $ 10.22
- --------------------------------------------------------------------------------
Total return (d) 17.29% 14.07% 20.22% (4.76)% 3.12%
Ratio to average net assets of
(e):
Expenses, net of waivers and re-
imbursements 0.61% 0.61% 0.61% 0.61% 0.61%
Expenses, before waivers and re-
imbursements 1.11% 1.20% 1.28% 1.50% 1.62%
Net investment income, net of
waivers and reimbursements 2.99% 3.03% 3.36% 2.56% 2.20%
Net investment income, before
waivers and reimbursements 2.49% 2.44% 2.69% 1.68% 1.19%
Portfolio turnover rate 59.06% 104.76% 93.39% 75.69% 35.03%
Average commission rate per share $0.0652 $0.0718 NA NA NA
Net assets at end of year (in
thousands) $51,475 $45,157 $38,897 $31,462 $15,928
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
---------------- ----------------
1997 1996 (b) 1997 1996 (c)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 12.24 $ 11.12 $ 12.23 $ 11.34
Income from investment operations:
Net investment income 0.36 0.29 0.34 0.22
Net realized and unrealized gain 1.64 1.12 1.64 0.96
- ------------------------------------------------------------------------------
Total income from investment operations 2.00 1.41 1.98 1.18
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.37) (0.29) (0.36) (0.29)
Net realized gain (0.31) -- (0.31) --
- ------------------------------------------------------------------------------
Total distributions to unitholders (0.68) (0.29) (0.67) (0.29)
- ------------------------------------------------------------------------------
Net increase 1.32 1.12 1.31 0.89
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 13.56 $ 12.24 $ 13.54 $ 12.23
- ------------------------------------------------------------------------------
Total return (d) 17.00% 12.72% 16.82% 10.55%
Ratio to average net assets of (e):
Expenses, net of waivers and reimburse-
ments 0.85% 0.85% 1.00% 1.00%
Expenses, before waivers and reimburse-
ments 1.35% 1.44% 1.50% 1.59%
Net investment income, net of waivers and
reimbursements 2.75% 2.80% 2.60% 2.78%
Net investment income, before waivers and
reimbursements 2.25% 2.21% 2.10% 2.19%
Portfolio turnover rate 59.06% 104.76% 59.06% 104.76%
Average commission rate per share $0.0652 $0.0718 $0.0652 $0.0718
Net assets at end of year (in thousands) $ 4,587 $ 5,997 $ 322 $ 232
- ------------------------------------------------------------------------------
</TABLE>
(a) For the period July 1, 1993 (commencement of operations) through November
30, 1993.
(b) For the period December 29, 1995 (Class C units issue date) through
November 30, 1996.
(c) For the period February 20, 1996 (Class D units issue date) through
November 30, 1996.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
88
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
DIVERSIFIED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
-------------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF YEAR $ 14.36 $ 12.20 $ 9.88 $ 10.65 $ 10.00
Income (loss) from invest-
ment operations:
Net investment income 0.11 0.14 0.15 0.09 0.09
Net realized and unrealized
gain (loss) 3.33 2.33 2.26 (.83) 0.65
- --------------------------------------------------------------------------------
Total income (loss) from in-
vestment operations 3.44 2.47 2.41 (.74) 0.74
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.14) (0.15) (0.09) (0.01) (0.09)
Net realized gain (1.46) (0.16) -- (0.02) --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.60) (0.31) (0.09) (0.03) (0.09)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.84 2.16 2.32 (0.77) 0.65
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 16.20 $ 14.36 $ 12.20 $ 9.88 $ 10.65
- --------------------------------------------------------------------------------
Total return (c) 27.06% 20.83% 24.55% (6.98)% 7.38%
Ratio to average net assets
of (d):
Expenses, net of waivers
and reimbursements 0.67% 0.66% 0.69% 0.67% 0.71%
Expenses, before waivers
and reimbursements 1.03% 1.10% 1.12% 1.08% 1.13%
Net investment income, net
of waivers and reimburse-
ments 0.76% 0.98% 1.16% 0.77% 1.04%
Net investment income, be-
fore waivers and reim-
bursements 0.40% 0.54% 0.73% 0.35% 0.62%
Portfolio turnover rate 45.53% 59.99% 81.65% 78.94% 140.88%
Average commission rate per
share $ 0.0669 $ 0.0655 NA NA NA
Net assets at end of year
(in thousands) $158,383 $142,055 $146,731 $164,963 $199,053
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
----------------------------------
1997 1996 1995 1994 (b)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 14.26 $ 12.16 $ 9.88 $10.41
Income (loss) from investment operations:
Net investment income 0.09 0.11 0.11 0.01
Net realized and unrealized gain (loss) 3.27 2.29 2.25 (0.54)
- -------------------------------------------------------------------------------
Total income (loss) from investment opera-
tions 3.36 2.40 2.36 (0.53)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.13) (0.14) (0.08) --
Net realized gain (1.46) (0.16) -- --
- -------------------------------------------------------------------------------
Total distributions to unitholders (1.59) (0.30) (0.08) --
- -------------------------------------------------------------------------------
Net increase (decrease) 1.77 2.10 2.28 (0.53)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 16.03 $ 14.26 $12.16 $ 9.88
- -------------------------------------------------------------------------------
Total return (c) 26.60% 20.39% 24.19% (5.14)%
Ratio to average net assets of (d):
Expenses, net of waivers and reimburse-
ments 1.06% 1.05% 1.08% 1.05%
Expenses, before waivers and reimburse-
ments 1.42% 1.49% 1.51% 1.46%
Net investment income, net of waivers and
reimbursements 0.37% 0.59% 0.73% 0.94%
Net investment income, before waivers and
reimbursements 0.01% 0.15% 0.30% 0.53%
Portfolio turnover rate 45.53% 59.99% 81.65% 78.94%
Average commission rate per share $0.0669 $0.0655 NA NA
Net assets at end of year (in thousands) $ 696 $ 433 $ 221 $ 40
- -------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 14, 1994 (Class D units issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
89
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For 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, BEGIN-
NING OF YEAR $ 16.79 $ 13.86 $ 10.60 $ 10.78 $ 10.00
Income (loss) from in-
vestment operations:
Net investment income 0.30 0.31 0.30 0.27 0.22
Net realized and
unrealized gain (loss) 4.13 3.36 3.47 (0.18) 0.78
- ---------------------------------------------------------------------------------
Total income from in-
vestment operations 4.43 3.67 3.77 0.09 1.00
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.30) (0.31) (0.30) (0.27) (0.22)
Net realized gain (0.83) (0.43) (0.21) -- --
- ---------------------------------------------------------------------------------
Total distributions to
unitholders (1.13) (0.74) (0.51) (0.27) (0.22)
- ---------------------------------------------------------------------------------
Net increase (decrease) 3.30 2.93 3.26 (0.18) 0.78
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 20.09 $ 16.79 $ 13.86 $ 10.60 $ 10.78
- ---------------------------------------------------------------------------------
Total return (d) 27.93% 27.53% 36.60% 0.87% 10.08%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.22% 0.22% 0.22% 0.23% 0.21%
Expenses, before waiv-
ers and reimbursements 0.46% 0.50% 0.54% 0.59% 0.66%
Net investment income,
net of waivers and re-
imbursements 1.66% 2.12% 2.54% 2.62% 2.62%
Net investment income,
before waivers and re-
imbursements 1.42% 1.84% 2.22% 2.25% 2.17%
Portfolio turnover rate 18.96% 18.02% 15.27% 71.98% 2.06%
Average commission rate
per share $ 0.0264 $ 0.0228 NA NA NA
Net assets at end of
year (in thousands) $844,065 $675,804 $479,763 $281,817 $219,282
- ---------------------------------------------------------------------------------
</TABLE>
<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, BEGIN-
NING OF YEAR $ 16.79 $ 13.86 $ 13.43 $ 16.77 $ 13.83 $10.60 $10.96
Income (loss) from in-
vestment operations:
Net investment income 0.26 0.28 0.05 0.26 0.27 0.25 0.02
Net realized and
unrealized gain (loss) 4.11 3.35 0.45 4.07 3.36 3.47 (0.31)
- ----------------------------------------------------------------------------------------
Total income (loss) from
investment operations 4.37 3.63 0.50 4.33 3.63 3.72 (0.29)
- ----------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.28) (0.27) (0.07) (0.27) (0.26) (0.28) (0.07)
Net realized gain (0.83) (0.43) -- (0.83) (0.43) (0.21) --
- ----------------------------------------------------------------------------------------
Total distributions to
unitholders (1.11) (0.70) (0.07) (1.10) (0.69) (0.49) (0.07)
- ----------------------------------------------------------------------------------------
Net increase (decrease) 3.26 2.93 0.43 3.23 2.94 3.23 (0.36)
- ----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 20.05 $ 16.79 $ 13.86 $ 20.00 $ 16.77 $13.83 $10.60
- ----------------------------------------------------------------------------------------
Total return (d) 27.64% 27.24% 3.94% 27.45% 27.20% 36.20% (2.68)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.46% 0.46% 0.46% 0.61% 0.61% 0.61% 0.60%
Expenses, before waiv-
ers and reimbursements 0.70% 0.74% 0.78% 0.85% 0.89% 0.93% 0.96%
Net investment income,
net of waivers and re-
imbursements 1.42% 1.89% 2.29% 1.27% 1.78% 2.07% 2.67%
Net investment income,
before waivers and re-
imbursements 1.18% 1.61% 1.97% 1.03% 1.50% 1.75% 2.31%
Portfolio turnover rate 18.96% 18.02% 15.27% 18.96% 18.02% 15.27% 71.98%
Average commission rate
per share $0.0264 $0.0228 NA $0.0264 $0.0228 NA NA
Net assets at end of
year (in thousands) $82,982 $53,929 $18,390 $30,650 $ 8,005 $ 810 $ 3
- ----------------------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period September 28, 1995 (Class C units issue date) through
November 30, 1995.
(c) For the period September 14, 1994 (Class D units issue date) through
November 30, 1994.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
90
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
FOCUSED GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
-----------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF YEAR $ 14.48 $ 12.53 $ 9.79 $ 10.43 $ 10.00
Income (loss) from invest-
ment operations:
Net investment income 0.05 0.02 0.05 0.02 0.01
Net realized and
unrealized gain (loss) 3.37 2.17 2.71 (0.66) 0.43
- --------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.42 2.19 2.76 (0.64) 0.44
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.02) (0.05) (0.02) -- (0.01)
Net realized gain (1.68) (0.19) -- -- --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.70) (0.24) (0.02) -- (0.01)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.72 1.95 2.74 (0.64) 0.43
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $ 16.20 $ 14.48 $ 12.53 $ 9.79 $ 10.43
- --------------------------------------------------------------------------------
Total return (d) 27.05% 17.82% 28.38% (6.15)% 4.33%
Ratio to average net assets
of (e):
Expenses, net of waivers
and reimbursements 0.92% 0.91% 0.91% 0.91% 0.91%
Expenses, before waivers
and reimbursements 1.34% 1.43% 1.47% 1.55% 1.88%
Net investment income, net
of waivers and reimburse-
ments 0.30% 0.12% 0.46% 0.24% 0.14%
Net investment loss, be-
fore waivers and reim-
bursements (0.12)% (0.40)% (0.10)% (0.39)% (0.83)%
Portfolio turnover rate 108.29% 116.78% 85.93% 74.28% 27.48%
Average commission rate per
share $ 0.0681 $ 0.0730 NA NA NA
Net assets at end of year
(in thousands) $115,802 $106,250 $86,099 $57,801 $32,099
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class C Class D
----------------
---------------
1997 1996 (b) 1997 1996 1995 (c)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF YEAR $ 14.47 $ 13.46 $ 14.37 $ 12.48 $ 9.55
Income (loss) from invest-
ment operations:
Net investment income
(loss) 0.01 (0.01) 0.03 (0.03) 0.02
Net realized and unrealized
gain 3.37 1.02 3.30 2.15 2.93
- --------------------------------------------------------------------------------
Total income from investment
operations 3.38 1.01 3.33 2.12 2.95
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.01) -- (0.01) (0.04) (0.02)
Net realized gain (1.68) -- (1.68) (0.19) --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.69) -- (1.69) (0.23) (0.02)
- --------------------------------------------------------------------------------
Net increase 1.69 1.01 1.64 1.89 2.93
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 16.16 $ 14.47 $ 16.01 $ 14.37 $12.48
- --------------------------------------------------------------------------------
Total return (d) 26.75% 7.51% 26.52% 17.42% 30.97%
Ratio to average net assets
of (e):
Expenses, net of waivers
and reimbursements 1.16% 1.15% 1.31% 1.30% 1.30%
Expenses, before waivers
and reimbursements 1.58% 1.67% 1.73% 1.82% 1.86%
Net investment income
(loss), net of waivers and
reimbursements 0.06% (0.12)% (0.09)% (0.28)% (0.11)%
Net investment loss, before
waivers and reimbursements (0.36)% (0.64)% (0.51)% (0.80)% (0.67)%
Portfolio turnover rate 108.29% 116.78% 108.29% 116.78% 85.93%
Average commission rate per
share $0.0681 $0.0730 $0.0681 $0.0730 NA
Net assets at end of year
(in thousands) $ 8,325 $ 6,993 $ 1,206 $ 656 $ 489
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period July 1, 1993 (commencement of operations) through November
30, 1993.
(b) For the period June 14, 1996 (Class C units issue date) through November
30, 1996.
(c) For the period December 8, 1994 (Class D units issue date) through
November 30, 1995.
(d) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
91
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Year Ended November 30,
INTERNATIONAL EQUITY INDEX
<TABLE>
<CAPTION>
Class A
--------
1997 (a)
- ------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 10.00
Income from investment operations:
Net investment income 0.10
Net realized and unrealized gain 0.45
- ------------------------------------------------------------------
Total income from investment operations 0.55
- ------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income --
Net realized gain --
- ------------------------------------------------------------------
Total distributions to unitholders --
- ------------------------------------------------------------------
Net increase 0.55
- ------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 10.55
- ------------------------------------------------------------------
Total return(b) 5.45%
Ratio to average net assets of (c):
Expenses, net of waivers and reimbursements 0.51%
Expenses, before waivers and reimbursements 1.08%
Net investment income, net of waivers and reimbursements 1.75%
Net investment income, before waivers and reimbursements 1.18%
Portfolio turnover rate 8.16%
Average commission rate per share $0.0207
Net assets at end of year (in thousands) $34,244
- ------------------------------------------------------------------
</TABLE>
(a) For the period April 1, 1997 (commencement of operations) through November
30, 1997.
(b) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. Total
return is not annualized for periods less than one year.
(c) Annualized.
See accompanying notes to financial statements.
92
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
INTERNATIONAL GROWTH PORTFOLIO
<TABLE>
<CAPTION>
Class A
----------------------------------------
1997 1996 1995 1994 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 10.63 $ 9.88 $ 10.21 $ 10.00
Income (loss) from investment opera-
tions:
Net investment income 0.11 0.10 0.12 0.05
Net realized and unrealized gain
(loss) 0.31 0.87 (0.36) 0.16
- --------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.42 0.97 (0.24) 0.21
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.08) (0.22) (0.05) --
Net realized gain (0.45) -- (0.04) --
- --------------------------------------------------------------------------------
Total distributions to unitholders (0.53) (0.22) (0.09) --
- --------------------------------------------------------------------------------
Net increase (decrease) (0.11) 0.75 (0.33) 0.21
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 10.52 $ 10.63 $ 9.88 $ 10.21
- --------------------------------------------------------------------------------
Total return (c) 4.21% 9.96% (2.32)% 2.11%
Ratio to average net assets of (d):
Expenses, net of waivers and reim-
bursements 1.06% 1.06% 1.06% 1.04%
Expenses, before waivers and reim-
bursements 1.37% 1.43% 1.38% 1.47%
Net investment income, net of waiv-
ers and reimbursements 0.97% 0.73% 1.22% 0.76%
Net investment income, before waiv-
ers and reimbursements 0.66% 0.36% 0.90% 0.33%
Portfolio turnover rate 154.62% 202.47% 215.31% 77.79%
Average commission rate per share $ 0.0265 $ 0.0292 NA NA
Net assets at end of year (in thou-
sands) $106,774 $138,182 $148,704 $133,212
- --------------------------------------------------------------------------------
<CAPTION>
Class D
----------------------------------------
1997 1996 1995 1994 (b)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 10.54 $ 9.83 $ 10.21 $ 10.47
Income (loss) from investment opera-
tions:
Net investment income 0.09 0.01 0.19 --
Net realized and unrealized gain
(loss) 0.29 0.92 (0.48) (0.26)
- --------------------------------------------------------------------------------
Total income (loss) from investment
operations 0.38 0.93 (0.29) (0.26)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.08) (0.22) (0.05) --
Net realized gain (0.45) -- (0.04) --
- --------------------------------------------------------------------------------
Total distributions to unitholders (0.53) (0.22) (0.09) --
- --------------------------------------------------------------------------------
Net increase (decrease) (0.15) 0.71 (0.38) (0.26)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 10.39 $ 10.54 $ 9.83 $ 10.21
- --------------------------------------------------------------------------------
Total return (c) 3.79% 9.59% (2.78)% (2.56)%
Ratio to average net assets of (d):
Expenses, net of waivers and reim-
bursements 1.45% 1.45% 1.45% 1.35%
Expenses, before waivers and reim-
bursements 1.76% 1.82% 1.77% 1.78%
Net investment income, net of waiv-
ers and reimbursements 0.58% 0.44% 2.01% --
Net investment income (loss), be-
fore waivers and reimbursements 0.27% 0.07% 1.69% (0.43)%
Portfolio turnover rate 154.62% 202.47% 215.31% 77.79%
Average commission rate per share $ 0.0265 $ 0.0292 NA NA
Net assets at end of year (in thou-
sands) $ 234 $ 94 $ 20 --
- --------------------------------------------------------------------------------
</TABLE>
(a) For the period March 28, 1994 (commencement of operations) through
November 30, 1994.
(b) For the period November 16, 1994 (Class D units issue date) through
November 30, 1994.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
93
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
SMALL COMPANY INDEX PORTFOLIO
<TABLE>
<CAPTION>
Class A
-----------------------------------------------
1997 1996 1995 1994 1993 (a)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
YEAR $ 13.97 $ 12.98 $ 10.86 $ 11.29 $ 10.00
Income (loss) from investment
operations:
Net investment income 0.15 0.19 0.16 0.14 0.11
Net realized and unrealized
gain (loss) 2.69 1.75 2.67 (0.30) 1.29
- --------------------------------------------------------------------------------
Total income (loss) from in-
vestment operations 2.84 1.94 2.83 (0.16) 1.40
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.17) (0.14) (0.15) (0.02) (0.11)
Net realized gain (1.59) (0.81) (0.56) (0.25) --
- --------------------------------------------------------------------------------
Total distributions to
unitholders (1.76) (0.95) (0.71) (0.27) (0.11)
- --------------------------------------------------------------------------------
Net increase (decrease) 1.08 0.99 2.12 (0.43) 1.29
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 15.05 $ 13.97 $ 12.98 $ 10.86 $ 11.29
- --------------------------------------------------------------------------------
Total return (c) 23.06% 15.96% 27.76% (1.54)% 14.09%
Ratio to average net assets of
(d):
Expenses, net of waivers and
reimbursements 0.32% 0.32% 0.32% 0.33% 0.31%
Expenses, before waivers and
reimbursements 0.68% 0.79% 0.81% 0.86% 1.02%
Net investment income, net of
waivers and reimbursements 1.22% 1.36% 1.31% 1.27% 1.25%
Net investment income, before
waivers and reimbursements 0.86% 0.89% 0.82% 0.74% 0.54%
Portfolio turnover rate 42.66% 46.26% 38.46% 98.43% 26.31%
Average commission rate per
share $ 0.0319 $ 0.0257 NA NA NA
Net assets at end of year (in
thousands) $147,887 $112,856 $94,899 $ 77,120 $54,763
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
-------------------------
1997 1996 1995 (b)
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR $ 13.96 $ 12.95 $10.51
Income from investment operations:
Net investment income 0.17 0.13 0.18
Net realized and unrealized gain 2.62 1.83 2.96
- ---------------------------------------------------------------------------
Total income from investment operations 2.79 1.96 3.14
- ---------------------------------------------------------------------------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (0.15) (0.14) (0.14)
Net realized gain (1.59) (0.81) (0.56)
- ---------------------------------------------------------------------------
Total distributions to unitholders (1.74) (0.95) (0.70)
- ---------------------------------------------------------------------------
Net increase 1.05 1.01 2.44
- ---------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 15.01 $ 13.96 $12.95
- ---------------------------------------------------------------------------
Total return (c) 22.68% 16.20% 31.62%
Ratio to average net assets of (d):
Expenses, net of waivers and reimbursements 0.71% 0.71% 0.71%
Expenses, before waivers and reimbursements 1.07% 1.18% 1.20%
Net investment income, net of waivers and reim-
bursements 0.76% 1.02% 0.90%
Net investment income, before waivers and reim-
bursements 0.40% 0.55% 0.41%
Portfolio turnover rate 42.66% 46.26% 38.46%
Average commission rate per share $0.0319 $0.0257 NA
Net assets at end of year (in thousands) $ 690 $ 269 $ 44
- ---------------------------------------------------------------------------
</TABLE>
(a) For the period January 11, 1993 (commencement of operations) through
November 30, 1993.
(b) For the period December 8, 1994 (Class D units issue date) through
November 30, 1995.
(c) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year. 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 these periods.
See accompanying notes to financial statements.
94
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
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 may issue four separate classes: Class A, B, C and D.
Each class is distinguished by the level of administrative support and
transfer agent service provided. As of November 30, 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) Investment Transactions and Investment Income
Investment transactions are recorded as of 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. The interest rates reflected in the Statements of
Investments represent either the stated coupon rate, annualized yield on date
of purchase for discount notes, the current reset rate for floating rate
securities or, for interest only or principal only securities, the current
effective yield. 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.
(c) 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.
(d) 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 reflect gains and losses as realized for closed
futures contracts and as unrealized for open futures contracts.
At November 30, 1997, the Diversified Growth, Equity Index, Focused Growth
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 November 30, 1997 was approximately
$229,000, $1,433,000, $85,000, and $248,000 for the Diversified Growth, Equity
Index, Focused Growth and Small Company Index Portfolios, respectively.
(e) Options Contracts
Each Portfolio may purchase and write (sell) put and call options on foreign
and domestic stock indices, foreign
95
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
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 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 year ended November
30, 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 November 30, 1997 $ --
- -------------------------------------------------------------------
</TABLE>
The Portfolios did not write put options during the year ended November 30,
1997.
(f) Stripped Securities
Stripped securities represent the right to receive 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 securities and the value of principal only stripped
securities vary inversely with changes in interest rates.
(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 a Portfolio's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Portfolio's foreign currency denominated securities will decline in
value due to changes in foreign currency exchange rates. All forward foreign
currency contracts are "marked-to-market" daily at the applicable exchange
rates and any resulting unrealized gains or losses are recorded in the
financial statements. The Portfolio records realized gains or losses when the
forward contract is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
The contractual amounts of forward foreign currency exchange contracts do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
At November 30, 1997, there were no outstanding forward foreign currency
exchange contracts.
(h) 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.
(i) 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, 1997, the Portfolios had approximately the following amounts
of capital loss carryforwards for U.S. federal tax purposes:
96
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Amount Year(s) of Expiration
- ----------------------------------------------------------------
(in thousands)
<S> <C> <C>
Intermediate Bond $ 21 2005
Short-Intermediate Bond 10 2005
U.S. Government Securities 130 2001 to 2003
U.S. Treasury Index 1,046 2002 to 2005
International Equity Index 4 2005
- ----------------------------------------------------------------
</TABLE>
These amounts are available to be carried forward to offset future capital
gains to the extent permitted by applicable laws or regulations.
(j) Deferred Organization Costs
Organization related costs are being amortized on a straight-line basis over
five years.
(k) 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.
(l) Distributions
Dividends from net investment income are declared and paid as follows:
<TABLE>
- -------------------------------------
<S> <C>
Bond Monthly
Intermediate Bond Monthly
International Bond Quarterly
Short-Intermediate Bond Monthly
U.S. Government Securities Monthly
U.S. Treasury Index Monthly
Balanced Quarterly
Diversified Growth Annually
Equity Index Quarterly
Focused Growth Annually
International Equity Index Annually
International Growth Annually
Small Company Index 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.
Distributions of short-term and long-term capital gains were declared and paid
December 22, 1997 to unitholders of record on December 19, 1997, as follows:
<TABLE>
<CAPTION>
Short-Term Long-Term
Capital Capital
Gain Gain Total
- --------------------------------------------------------
<S> <C> <C> <C>
Bond $ -- $0.1211 $0.1211
Intermediate Bond -- -- --
International Bond 0.0741 0.2214 0.2955
Short-Intermediate Bond 0.0270 -- 0.0270
U.S. Government Securities -- -- --
U.S. Treasury Index -- -- --
Balanced 0.1368 0.3764 0.5132
Diversified Growth 0.0441 1.8151 1.8592
Equity Index 0.0387 1.3993 1.4380
Focused Growth 0.9226 1.9313 2.8539
International Equity Index -- -- --
International Growth 0.5737 -- 0.5737
Small Company Index 0.0924 0.7969 0.8893
- --------------------------------------------------------
</TABLE>
(m) Reclassifications
At November 30, 1997, 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 $(660) $660
International Bond (208) 208
Short-Intermediate Bond (614) 614
U.S. Government Securities (60) 60
International Growth (23) 23
International Equity Index 2 (2)
- ---------------------------------------------------------
</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
year ended November 30, 1997, are as follows:
97
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
<TABLE>
<CAPTION>
Net
Advisory Less: Advisory
Fee Waiver Fee
- ----------------------------------------------------
<S> <C> <C> <C>
Bond .60% .35% .25%
Intermediate Bond .60 .35 .25
International Bond .90 .20 .70
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.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust has an administration agreement (as amended May 1, 1997) with Goldman
Sachs whereby each Portfolio pays the Administrator a fee, computed daily and
payable monthly, at an annual rate of .10% of the Portfolio's average daily net
assets, except the International Bond, International Equity Index and
International Growth Portfolios which pay the Administrator a fee, computed
daily and payable monthly, at an annual rate of .15% of their respective
average 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, servicing fees, and extraordinary expenses (such as taxes, interest and
indemnification expenses), exceeds on an annualized basis .10% of a Portfolio's
average daily 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 daily 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. In
addition, Goldman Sachs agreed to waive a portion of its administrative fees
should overall administration fees earned during the preceding year exceed
certain specified levels. No waiver was required under this agreement during
the year ended November 30, 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, 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 year ended
November 30, 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.
98
<PAGE>
- --------------------------------------------------------------------------------
6. INVESTMENT TRANSACTIONS
Investment transactions for the year ended November 30, 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 $281,135 $171,611 $237,619 $75,350
Intermediate Bond 11,040 5,326 4,809 725
International Bond -- 8,089 -- 12,141
Short-Intermediate Bond 54,397 74,510 65,113 13,725
U.S. Government Securities 77,111 -- 124,791 --
U.S. Treasury Index 28,902 -- 21,070 --
Balanced 18,477 11,557 18,201 14,525
Diversified Growth -- 64,396 -- 86,524
Equity Index -- 166,567 -- 153,926
Focused Growth -- 123,991 -- 140,804
International Equity Index -- 34,737 -- 2,191
International Growth -- 180,012 -- 212,909
Small Company Index -- 59,604 -- 50,315
- -------------------------------------------------------------------------
</TABLE>
As of November 30, 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 $15,391 $1,662 $13,729 $489,781
Intermediate Bond 35 96 (61) 11,885
International Bond 990 1,209 (219) 25,752
Short-Intermediate Bond 2,134 2,077 57 206,201
U.S. Government Securities 376 114 262 49,532
U.S. Treasury Index 945 15 930 34,174
Balanced 12,223 158 12,065 43,968
Diversified Growth 52,083 1,077 51,006 109,822
Equity Index 327,384 14,006 313,378 644,235
Focused Growth 25,541 1,524 24,017 101,699
International Equity Index 2,089 3,371 (1,282) 32,838
International Growth 8,543 4,975 3,568 103,928
Small Company Index 34,383 8,122 26,261 121,333
- -----------------------------------------------------------------------------
</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 year ended November 30, 1997 was approximately
$1,000, $9,000, $90,000, $7,000, $2,000, and $10,000 for the International
Bond, Diversified Growth, Equity Index, Focused Growth, International Growth
and Small Company Index Portfolios, respectively. These amounts are included in
"Other Expenses" on the Statements of Operations.
As of November 30, 1997, there were no outstanding borrowings.
8. UNIT TRANSACTIONS
Transactions in Class A units for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 7,554 1,111 4,475 4,190
Intermediate Bond 594 9 -- 603
International Bond 56 74 363 (233)
Short-Intermediate Bond 5,953 572 4,056 2,469
U.S. Government Securities 3,473 227 6,148 (2,448)
U.S. Treasury Index 1,031 59 740 350
Balanced 609 205 717 97
Diversified Growth 939 1,144 2,201 (118)
Equity Index 18,925 2,547 19,705 1,767
Focused Growth 1,481 905 2,575 (189)
International Equity Index 3,356 -- 111 3,245
International Growth 1,116 606 4,566 (2,844)
Small Company Index 3,221 1,087 2,562 1,746
- -----------------------------------------------------------------------
</TABLE>
99
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1997
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-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>
Transactions in Class C units for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 2,988 104 1,045 2,047
U.S. Government Securities 67 10 97 (20)
Balanced 89 25 266 (152)
Equity Index 2,220 226 1,520 926
Focused Growth 12 65 45 32
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class C units for the year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 214 13 51 176
U.S. Government Securities 234 8 66 176
Balanced 548 11 69 490
Equity Index 3,499 70 1,685 1,884
Focused Growth 529 -- 46 483
- --------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the year ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 32 1 15 18
International Bond 3 -- -- 3
Short-Intermediate Bond 31 1 5 27
U.S. Government
Securities 6 -- 1 5
U.S. Treasury Index 55 2 16 41
Balanced 12 1 8 5
Diversified Growth 16 4 6 14
Equity Index 1,302 34 281 1,055
Focused Growth 32 6 9 29
International Growth 19 -- 5 14
Small Company
Index 43 1 17 27
- -------------------------------------------------------------------
</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>
100
<PAGE>
The Benchmark Funds
Fixed Income and Equity Portfolios
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Unitholders and Trustees of
The Benchmark Funds
Fixed Income and Equity Portfolios
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of the Bond, Intermediate Bond, International
Bond, Short-Intermediate Bond, U.S. Government Securities, U.S. Treasury Index,
Balanced, Diversified Growth, Equity Index, Focused Growth, International Equity
Index, International Growth and Small Company Index Portfolios, comprising the
Fixed Income and Equity Portfolios of The Benchmark Funds, as of November 30,
1997, and the related statements of operations, changes in net assets and
financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Portfolios'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of the investments owned at
November 30, 1997 by physical examination of the securities held by the
custodian and by correspondence with central depositories, unaffiliated
subcustodian banks and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Bond, Intermediate Bond, International Bond, Short-Intermediate Bond, U.S.
Government Securities, U.S. Treasury Index, Balanced, Diversified Growth, Equity
Index, Focused Growth, International Equity Index, International Growth and
Small Company Index Portfolios, comprising the Fixed Income and Equity
Portfolios of The Benchmark Funds, at November 30, 1997, the results of their
operations, the changes in their net assets and financial highlights for the
periods indicated therein, in conformity with generally accepted accounting
principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 16, 1998
101
<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
Richard Gordon Cline
Edward J. Condon, Jr.
John W. English
Sandra Polk Guthman
Frederick T. Kelsey
Richard P. Strubel
Officers
Frank Polefrone, President
James Fitzpatrick, Vice President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Scott M. Gilman, Treasurer
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Deborah Farrell, Assistant Secretary
Steven Hartstein, Assistant Secretary
Howard B. Surloff, Assistant Secretary
Valerie A. Zondorak, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Dr.
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath LLP
1345 Chestnut Street
Philadelphia, PA 19107
This Annual Report is authorized for distribution to prospective investors
only when preceded or accompanied by a Prospectus which contains facts
concerning the objectives and policies, management expenses and other
information.
