<PAGE> 1
=====================================
BARTLETT & CO.
--------------------------------
REGISTERED INVESTMENT ADVISORS
BARTLETT
MUTUAL
FUNDS
ANNUAL
REPORT
=====================================
FOR THE YEAR ENDED
MARCH 31, 1995
BARTLETT
VALUE INTERNATIONAL FUND
-
BARTLETT
BASIC VALUE FUND
-
BARTLETT
FIXED INCOME FUND
-
BARTLETT
SHORT TERM BOND FUND
-
BARTLETT
CASH RESERVES FUND
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BARTLETT & CO.
PROFILE
=====================================
Bartlett & Co., headquartered in Cincinnati, Ohio, is a
privately owned, asset management firm which manages over $2
billion for individuals, family groups and institutions.
Established in 1898, Bartlett & Co. is the oldest independent investment
advisory firm registered with the Securities and Exchange Commission. For nearly
a century, the firm has built a reputation among individual and institutional
investors of strong performance and superior client service.
Bartlett & Co. offers its clients a diversity of services through five business
divisions:
- Mutual Funds
- Institutional Client Services
- Private Client Services
- Real Estate Programs
- Brokerage/Custody Services
Our tradition of excellence, the breadth of our services and the depth of our
experience give Bartlett & Co. the capabilities to serve as your financial
advisor.
<PAGE> 3
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Pages
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BARTLETT & CO. PROFILE Inside Cover
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CHAIRMEN'S LETTER 2
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REPORTS TO SHAREHOLDERS
Bartlett Value International Fund Report 3
Bartlett Basic Value Fund Report 4
Bartlett Fixed Income Fund Report 6
Bartlett Short Term Bond Fund Report 7
Bartlett Cash Reserves Fund Report 7
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GROWTH OF A $10,000 INVESTMENT
Bartlett Value International Fund 8
Bartlett Basic Value Fund 8
Bartlett Fixed Income Fund 9
Bartlett Short Term Bond Fund 9
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PORTFOLIOS OF INVESTMENTS
Bartlett Value International Fund 10
Bartlett Basic Value Fund 12
Bartlett Fixed Income Fund 13
Bartlett Short Term Bond Fund 15
Bartlett Cash Reserves Fund 16
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STATEMENTS OF ASSETS AND LIABILITIES 18
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STATEMENTS OF OPERATIONS 19
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STATEMENTS OF CHANGES IN NET ASSETS 20
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FINANCIAL HIGHLIGHTS
Bartlett Value International Fund 22
Bartlett Basic Value Fund 22
Bartlett Fixed Income Fund 23
Bartlett Short Term Bond Fund 24
Bartlett Cash Reserves Fund 24
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NOTES TO FINANCIAL STATEMENTS 25
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 29
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TRUSTEES AND OFFICERS Back Cover
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</TABLE>
This report is for the information of shareholders of the Bartlett Mutual Funds.
It may be used as sales literature if preceded or accompanied by a current
prospectus of the Bartlett Mutual Funds.
1
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===================================================
CHAIRMEN'S LETTER
===================================================
[PHOTO1]
Dale H. Rabiner, CFA
Chairman
Bartlett Capital Trust
[PHOTO2]
James B. Reynolds, CFA
Chairman
Bartlett Management Trust
Dear Fellow Shareholder,
GOOD-BYE TO 1994.
Most investors were not sorry to see 1994 come to an end. For the most part, the
stock and bond markets -- both domestically and abroad -- proved to be extremely
challenging. While many investors found the experience disquieting, the
movements of the markets during the calendar year served to reinforce the fact
that keeping a long-term perspective and holding a diversified portfolio remain
key to achieving investment success.
1995 -- A FRESH START.
Fortunately, the domestic stock markets have experienced an historically strong
first quarter, in many cases making up for all of last year's lackluster market
results. Although the bond market dropped initially in response to yet another
interest rate hike during the first quarter, it soon rebounded and produced very
favorable returns during the first quarter. Whether the Federal Reserve is
nearing the end of its credit tightening cycle remains yet to be seen. This
renewed optimism in the financial markets enabled the Bartlett Mutual Funds to
end their fiscal year on a strong note.
VALUE INVESTING CONTINUES TO PERFORM.
Value investing continues to work to the benefit of Bartlett investors despite
market volatility. In fact, the Bartlett Basic Value Fund ended the fiscal year
with a total one-year return of 12.7%. The value investing approach utilized by
the Bartlett Mutual Funds screens for seasoned, established companies whose
securities we believe are sound, but temporarily undervalued by the markets.
While no one can guarantee favorable returns, we believe value investing can
help us preserve and increase your wealth.
AN EYE TOWARD NEW OPPORTUNITIES.
Today there are more than 7,600 mutual funds (including money market funds) to
choose from. This exceeds the combined number of stocks traded on the New York
and American Stock Exchanges. As the mutual fund industry grows, it is changing.
New types of portfolios, additional services and innovative approaches continue
to appear. While Bartlett does not embrace change for its sake alone, we are
always evaluating fresh investment developments for our shareholders. During the
coming year we expect to offer you additional services and investment
opportunities that will enhance your investment experience with us.
Thank you for your continued investment in the Bartlett Mutual Funds. Please be
assured that your loyalty is valued highly and never taken for granted.
2
<PAGE> 5
======================
BARTLETT
VALUE INTERNATIONAL
FUND REPORT
======================
Currency movements played a significant role in the performance of
international investments during the fiscal year ended March 31, 1995.
The German mark and the Japanese yen moved up substantially in value
against the U.S. dollar, while the Canadian dollar moved down and the
Mexican peso collapsed.
During this period, the Europe, Australia and Far East (EAFE) Index*, when
measured in U.S. dollars, increased 6.1%. The investment return of the EAFE
Index, without the translation back into U.S. dollars, actually fell 9.6%,
showing the currency effects of the weak U.S. dollar. One of the major reasons
for this disparity was the 12% gain in the value of the Japanese yen against the
U.S. dollar during March 1995 alone. The EAFE Index -- because of its current
44% concentration in the Japanese market and, therefore, the Japanese yen --
overstates the fall in the dollar. In contrast, the share value of the Bartlett
Value International Fund fell 1.2%, reflecting its more diversified currency
exposure versus the EAFE Index's heavy weighting in the Japanese market and,
therefore, in the strong yen.
CURRENCY CONTINUES TO BE THE STORY
Overall, the share value of the Bartlett Value International Fund increased 0.5%
during the first quarter of 1995. Our low exposure to the weak Latin American
markets, along with our substantial investment in Europe, benefited performance.
This advantage was offset a bit by low exposure to the German and Japanese
markets and, therefore, to their very strong currencies, which helped boost the
performance of the EAFE Index. The EAFE Index increased 1.9% during the first
quarter of 1995 when measured in U.S. dollars. When measured in foreign currency
terms, the EAFE Index actually fell 8.2%.
NEUTRALIZING SOME EXPOSURE TO CURRENCY CHANGE
The Bartlett Value International Fund's portfolio is well diversified across 21
different currencies. As a result, fluctuations in currency values are muted.
The dollar actually has increased in value against a number of currencies, such
as the Danish krone, the Italian lira and the Spanish peseta, not to mention the
Mexican peso. Many of the companies held in the portfolio operate businesses
that benefit from a flat or rising dollar value, which also has the effect of
neutralizing currency movements.
Some of the headline news from overseas during the last three months actually
turned out to have a minimal effect on the markets. The Kobe earthquake was
deeply unsettling to the Japanese market for a short while, but different,
longer-term concerns are now souring that market. The collapse of Britain's
Barings Bank hit Asian markets for a short period, then quickly faded. The
fallout from Mexico's peso devaluation damaged Latin American markets. However,
the unique nature of that event became apparent to investors as the quarter
progressed, which led to some recovery in other parts of the Latin American
region. Unsettled foreign markets like those that we recently have experienced
are a bit unnerving to investors, but they actually provide new opportunities
for value hunters like the Bartlett Value International Fund to find companies
with attractive business prospects that are selling at prices without inflated
expectations built into them.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
Bartlett Value International Fund vs
Europe, Australia, Far East (EAFE) Index
March 31, 1995
Bar chart in which vertical axis is percent of total portfolio;
horizontal axis lists three geographic areas: Americas, Europe and Pacific. In
some cases, bars are broken down by country. Data points are:
Americas
Bartlett Value International Fund
Latin America 5%
Canada 4%
Cash Equivalents 5%
EAFE 0%
Europe
Bartlett Value International Fund 61%
EAFE 47%
Pacific
Bartlett Value International Fund
Japan 7%
Total 25%
EAFE
Japan 44%
Total 53%
--------------------------------------------------------------------------------
/S/ MADELYNN M. MATLOCK, CFA
---------------------------
Madelynn M. Matlock, CFA
Portfolio Manager
*The EAFE Index is an unmanaged index of common stocks of foreign companies. The
returns for the Index do not include any expenses or transaction costs. The
returns for the Fund include such expenses.
3
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======================
BARTLETT
BASIC VALUE
FUND REPORT
======================
The Bartlett Basic Value Fund completed its twelfth year of operations on
March 31, 1995. The cumulative total return since the Fund's inception on
May 5, 1983, through March 31, 1995, was 241%, which equates to an average
annual total return of 10.9% during this period. As the chart to the right
indicates, this double-digit return was achieved while undertaking 23% less
risk (as measured by standard deviation) than the Standard & Poor's 500 Index*.
For the fiscal year ended March 31, 1995, the Bartlett Basic Value Fund produced
a total return of 12.7%, compared to the 15.6% total return generated by the
Standard & Poor's 500 Index. During the first quarter of 1995, the Fund produced
a very strong return of 9.7%, matching the return of the Standard & Poor's 500
Index for the 3-month time period. Over a longer period of three years, the
Bartlett Basic Value Fund's average annual return was 10%, in line with the
Index's average annual return of 10.6%, despite the fact that the Index does not
include any expenses or transaction costs. In addition, to reduce volatility the
Bartlett Basic Value Fund was at times invested up to 15% in cash and other
short-term interest bearing investments.
BEARISH SENTIMENT WAS MISPLACED
At the end of 1994, stock investors faced a litany of fears, including an
economic slowdown, a weakening U.S. dollar and higher inflation. Moreover,
professional money managers hadn't been so pessimistic since March 1982 -- five
months before the start of the current bull market. But the bears were wrong, as
stock investors were handsomely rewarded during the first quarter of 1995.
The Bartlett Basic Value Fund has benefited from a number of positive events.
One was the acquisition of Chicago & Northwestern Transportation Corp., which
represented 2% of the Fund's portfolio when sold. In another case, Multimedia,
which represents 3.2% of the Fund's total portfolio and is its second largest
holding, announced that it is exploring alternatives to enhance shareholder
value. The stocks of these two companies advanced dramatically.
--------------------------------------------------------------------------------
MEASURING BOTH RISK AND RETURN
Bartlett Basic Value Fund vs Standard & Poor's 500 Index
May 1983 to March 1995
Bar chart in which vertical axis above horizontal axis shows return;
vertical axis below horizontal axis shows risk. Data points are:
Bartlett Basic Value Fund S&P 500
Return 10.9% Return 13.6%
Risk 11.3% Risk 14.7%
This chart compares the historical average annual total return and the risk (as
measured by the standard deviation) of the Bartlett Basic Value Fund and the
Standard & Poor's 500 Index from May 1983 to March 31, 1995. The S&P 500 Index
is an unmanaged index of common stocks widely used as a measure of stock market
activity.
Standard deviation is a statistical measure of volatility often used as a
measure of risk. In general, the greater the standard deviation, the greater the
tendency to vary from the average annual total return. By comparing the
magnitude of the standard deviations, the relative volatility of each investment
can be determined. A lower standard deviation reflects lower volatility.
The average annual total return figures assume the reinvestment of dividends.
Of course, past performance is no guarantee of future results. The principal
value and investment returns of the Fund fluctuate so that upon redemption you
may receive more or less than your original investment.
--------------------------------------------------------------------------------
4
<PAGE> 7
SEVERAL INDUSTRIES HAVE PERFORMED WELL
We've previously characterized banks as being one of the "safest" equity
investments for future generations. We continue to believe that well-positioned
regional banks are a great consumer franchise. The regional bank stocks held in
the portfolio contributed to the Fund's positive performance this year.
Additionally, several of the Fund's natural gas and crude oil companies have
reversed their declines experienced during the final two quarters of 1994. This
is not surprising, since we believe the cheapest place to buy oil and natural
gas seems to be the stock market.
We also believe foreign stocks offer some compelling investment opportunities
and, therefore, continue to hold some select foreign securities in the
portfolio. The Fund's strong returns of the last three months were achieved in
spite of the fact that the portfolio's foreign stocks essentially broke even,
while the Fund in total produced a return of 9.7%.
Many of the non-U.S. companies held in the portfolio produce products that are
used around the world: Potash produces fertilizers, Guinness produces beverages
and Nestle is known for its food products. A fluctuating U.S. dollar may not
hurt these companies, since portions of their earnings are dollar denominated,
even though their shares are priced in foreign currencies.
Thank you once again for your investment in the Bartlett Basic Value Fund and
your continued interest in our value approach to investing.
/s/ JAMES A. MILLER, CFA
------------------------
James A. Miller, CFA
Portfolio Manager
/s/ WOODROW H. UIBLE, CFA
-------------------------
Woodrow H. Uible, CFA
Portfolio Manager
*The Standard & Poor's 500 Index is an unmanaged index of common stocks. The
returns for the Index do not include any expenses or transaction costs. The
returns for the Fund include such expenses.
The average annual total returns of the Bartlett Basic Value Fund for the one,
three, five and ten year periods ended March 31, 1995 were 12.7%, 10.0%, 9.2%
and 10.8%, respectively.
--------------------------------------------------------------------------------
LARGEST INDUSTRY ALLOCATIONS
Bartlett Basic Value Fund vs Standard & Poor's 500 Index
March 31, 1995
Bar chart in which vertical axis shows percent of total equity
portfolio; horizontal axis shows six industry allocations for Bartlett Basic
Value Fund and Standard & Poor's 500 Index. Data points are:
Bartlett Basic Value Fund S&P 500
Financial 25% 13%
Basic Industry 19% 13%
Consumer Staples 13% 22%
Consumer Cyclical 10% 12%
Energy 10% 10%
Technology/Defense 6% 8%
--------------------------------------------------------------------------------
5
<PAGE> 8
===========================
BARTLETT
FIXED INCOME
FUND REPORT
===========================
The popular consensus isn't always wrong, but it seems that way lately.
After missing the mark by a wide margin with optimistic 1994 forecasts, the
overwhelming consensus forecast for the bond market in 1995 was decidedly
bearish. That wasn't surprising; after all, bond market returns in 1994 were
the worst in modern financial history.
BOND INVESTORS RECOUP 1994 LOSSES
As bad as 1994 was, however, the first quarter of 1995 was equally good for bond
market investors. First quarter 1995 returns for all major bond market indices
more than made up for most 1994 losses. For example, the Lehman Brothers
Intermediate Government/Corporate Bond Index returned 4.39% in the first quarter
of 1995 versus a loss of -1.93% in 1994.
For the 12-month period ended March 31, 1995, your investment in the Bartlett
Fixed Income Fund produced a total return of 2.4%. This compares to a one-year
annualized return of 4.5% as measured by the Lehman Brothers Intermediate
Government/Corporate Bond Index*. The return for the Bartlett Fixed Income Fund
was 3.9% during the first three months of 1995.
FORECASTING PITFALLS
To be fair to economists, predicting the future course of interest rates isn't
all that easy. Given the number of variables that influence interest rates, we
believe forecasting interest rates has many of the same limitations as
forecasting the weather.
This is not to say that we ignore the future course of interest rates. We
believe it is important to understand the risk/reward profile of a bond
portfolio with respect to a variety of possible future interest rate paths.
Without knowing what will happen to interest rates, we believe it is possible to
identify strategies that will add value to a portfolio in a majority of
scenarios. When we find an opportunity to implement such a strategy -- whether
it be a maturity structure strategy, a sector strategy or an individual security
strategy -- we will do so, particularly when such a strategy can be accompanied
by a reduction in overall portfolio risk.
RISK HAS MANY FACES
We believe managing risk is every bit as important as managing return. As many
investors have found out lately, risk comes in many guises. Owning a AAA rated
U.S. Government Agency security is not without risk if it is a leveraged
derivative. And while derivatives are neither good nor bad, not fully
understanding the risk inherent in any security is decidedly bad.
In implementing our current portfolio strategy, we added to the Fund's positions
in GNMA pass-through mortgages. We continue to believe that the yield spreads on
intermediate and longer-term corporate bonds are relatively tight and,
accordingly, we are lowering our positions in these corporate securities.
In late 1994 we changed the maturity structure of the Bartlett Fixed Income Fund
portfolio from a barbell structure (which concentrates the portfolio in short-
and long-term bond maturities) to a portfolio that puts more emphasis on
intermediate-term bonds. By year-end we believed we already had captured the
benefits that a barbell structure offers and adjusted the portfolio to reflect
the narrowing of the difference between short-and long-term interest rates.
As always, we will do our best to structure the portfolio of the Bartlett Fixed
Income Fund with what we believe to be the best blend of risk/reward
characteristics under the prevailing bond market conditions. Hopefully, after
navigating some rather choppy waters, we will be in for smoother sailing ahead.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
BARTLETT FIXED INCOME FUND
MARCH 31, 1995
Pie chart with the following percentages:
Mortgage Backed Securities 42%
U.S. Government & Government Agencies 41%
Corporate Bonds 13%
Cash Equivalents 4%
PORTFOLIO HIGHLIGHTS
<TABLE>
<S> <C>
Weighted Average Credit Quality AAA
Weighted Average Portfolio Maturity 4.4 Years
Weighted Average Portfolio Duration 3.3 Years
</TABLE>
--------------------------------------------------------------------------------
/S/ DALE H. RABINER, CFA /S/ R. STUART CRICKMER, CPA, CFA
------------------------ --------------------------------
Dale H. Rabiner, CFA R. Stuart Crickmer, CPA, CFA
Portfolio Manager Fixed Income Analyst
*The Lehman Brothers Intermediate Government/Corporate Bond Index is an
unmanaged index of intermediate-term bonds. The returns for the Index do not
include any expenses or transaction costs. The returns of the Fund include such
expenses.
6
<PAGE> 9
==================
BARTLETT
SHORT TERM BOND
FUND REPORT
==================
In stark contrast to 1994, bond yields declined during the first three months
of 1995, which was beneficial to the Bartlett Short Term Bond Fund's
performance. Two key events sparked a renewed enthusiasm for bonds (which
drove bond prices up and yields down). First, the Federal Reserve raised
interest rates one more time on February 1, 1995. Some believe this latest
increase was too restrictive and potentially recessionary. Second, a few key
economic indicators have begun to suggest that the economy may be cooling down.
Meanwhile, the value of the U.S. dollar has sunk to record lows against several
foreign currencies. We remain cautious on the markets in light of continued
uncertainty with Federal Reserve policy and a record weak dollar.
MORTGAGE BACKED BONDS OFFER VALUE
At March 31, 1995, the Bartlett Short Term Bond Fund held 50% of its assets in
mortgage backed securities, roughly similar to our allocation last quarter. We
believe that mortgage backed bonds represent superior value over corporate
bonds, and we've underweighted our exposure to corporate bonds as a result.
The Bartlett Short Term Bond Fund's total return was 2.6% for the three months
ended March 31, 1995. This compares to the Merrill Lynch 1-3 Year Government
Bond Index* return of 3.4% for the same period. For the twelve months ended
March 31, 1995, the Fund returned 2.6%, compared with 4.5% for the Merrill Lynch
Index.
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PORTFOLIO COMPOSITION
Bartlett Short Term Bond Fund
March 31, 1995
Pie chart with the following percentages:
Mortgage Backed Securities 50%
U.S. Government & Government Agencies 23%
Corporate Bonds 14%
Cash Equivalents 13%
PORTFOLIO HIGHLIGHTS
<TABLE>
<S> <C>
Weighted Average Credit Quality AAA
Weighted Average Portfolio Maturity 3.3 Years
Weighted Average Portfolio Duration 1.7 Years
</TABLE>
--------------------------------------------------------------------------------
*The Merrill Lynch 1-3 Year Government Bond Index is an unmanaged index of
short-term government bonds. The returns for the Index do not include any
expenses or transaction costs. The returns for the Fund include such expenses.
===================
BARTLETT
CASH RESERVES
FUND REPORT
===================
Rising short-term interest rates benefited the Bartlett Cash Reserves Fund
during 1994, enabling us to invest in progressively higher yielding money
market securities. Since the beginning of 1995, however, yields available on
money market instruments have begun to recede as a number of economic factors
suggest the economy may be losing some steam.
The Federal Reserve raised short-term interest rates to 6.0% on February 1,
1995, a move that some economists believe may be the last or next-to-last rate
hike for the current business cycle. We believe that a bigger concern for the
moment is the level of the dollar, which has fallen to postwar lows against some
major foreign currencies. Historically, the Federal Reserve avoids using
monetary policy for currency purposes. Nonetheless, the threat of further
interest rate hikes to support the weak U.S. dollar causes us to remain
cautious.
ADJUSTING PORTFOLIO MATURITIES
As a result of our concerns over further interest rate hikes in early 1995, we
favored a shorter portfolio structure. More recently, we have extended the
weighted average portfolio maturity of the Bartlett Cash Reserves Fund to 32
days at fiscal year end, well below the 90-day average maturity permitted for
money market funds. The Fund's weighted average portfolio maturity was 19 days
on December 31, 1994.
For the twelve months ended March 31, 1995, the Fund paid income dividends of
4.14 cents per share, which translates into a net annualized yield of 4.14%. If
all monthly dividends were reinvested, shareholders received an effective
annualized return of 4.22%. The Bartlett Cash Reserves Fund 7-day current yield
on March 31, 1995, was 5.24%.
/s/ DALE H. RABINER, CFA
----------------------
Dale H. Rabiner, CFA
Portfolio Manager
/s/ R. STUART CRICKMER, CPA, CFA /s/ TROY R. SNIDER, CFA
-------------------------------- ------------------------
R. Stuart Crickmer, CPA, CFA Troy R. Snider, CFA
Fixed Income Analyst Fixed Income Analyst
The Bartlett Cash Reserves Fund is neither insured nor guaranteed by the U.S.
Government and there can be no assurance that the Fund will be able to maintain
a stable net asset value of $1.00 per share.
7
<PAGE> 10
=============================
GROWTH OF A
$10,000
INVESTMENT
=============================
The following graphs compare each Fund's total return against that of the
most closely matched broad-based securities market index.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
BARTLETT VALUE INTERNATIONAL FUND
OCTOBER 31, 1989 THROUGH MARCH 31, 1995
AVERAGE ANNUAL TOTAL RETURNS*
For periods ended March 31, 1995
<TABLE>
<CAPTION>
----------------------------------------------------------
1 Year 3 Years 5 Years Life of the Fund
(since 10/06/89)
----------------------------------------------------------
<S> <C> <C> <C>
(1.2%) 8.1% 6.3% 5.8%
----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION> Bartlett Value International Fund
vs
Europe, Australia, Far East Index
DATE BVI EAFE
<S> <C> <C>
10/31/89 10,000 10,000
12/31/89 10,958 10,891
03/31/90 10,795 8,737
06/30/90 11,226 9,572
09/30/90 9,074 7,543
12/31/90 9,367 8,337
03/31/91 10,381 8,958
06/30/91 9,970 8,469
09/30/91 10,972 9,195
12/31/91 11,380 9,350
03/31/92 11,614 8,241
06/30/92 12,351 8,414
09/30/92 11,526 8,541
12/31/92 11,172 8,212
03/31/93 11,928 9,196
06/30/93 12,153 10,121
09/30/93 13,413 10,793
12/31/93 14,674 10,886
03/31/94 14,841 11,266
06/30/94 14,555 11,844
09/30/94 15,331 11,865
12/31/94 14,597 11,741
03/31/95 14,666 11,960
</TABLE>
--------------------------------------------------------------------------------
The lines illustrate the cumulative total return of an initial $10,000
investment for the period indicated. The line for each Bartlett Mutual Fund
represents the total return AFTER deducting all Fund investment management
expenses, operating expenses (such as legal and audit fees and shareholder and
Fund accounting expenses) and the transaction costs of buying and selling
securities. The line representing the securities market index (which is, in each
case, an unmanaged index) does not include any transaction costs associated with
buying and selling securities in the index or other administrative expenses.
The Bartlett Cash Reserves Fund is excluded from these graphs because it does
not have a variable share price.
The Europe, Australia, Far East (EAFE) Index is a broad-based index administered
by Morgan Stanley Capital International and is composed of select common stocks
of companies based outside the United States and including Europe, Australia,
and the Far East. It is often used to measure international stock market
activity. The index does not include any expenses or transaction costs
associated with buying and selling stocks within the index. The total returns
for the Bartlett Value International Fund are quoted after deducting Fund
expenses and transaction costs, and assume the reinvestment of all
distributions. The performance figures reflect the periodic absorption of some
expenses of the Fund through the waiver of management fees. Had a portion of
these fees not been waived, the Fund's total returns would have been slightly
lower.
--------------------------------------------------------------------------------
The Standard & Poor's 500 Index is a broad-based unmanaged index of common
stocks commonly used to measure general stock market activity. The index does
not include any expenses or transaction costs associated with buying and selling
stocks within the index. The total returns for the Bartlett Basic Value Fund are
quoted after deducting Fund expenses and transaction costs, and assume the
reinvestment of all distributions.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
BARTLETT BASIC VALUE FUND
MAY 31, 1983 THROUGH MARCH 31, 1995
AVERAGE ANNUAL TOTAL RETURNS*
For Periods Ended March 31, 1995
<TABLE>
<CAPTION>
---------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS LIFE OF THE FUND
(since 05/05/83)
<S> <C> <C> <C> <C>
---------------------------------------------------------------
12.7% 10.0% 9.2% 10.8% 10.9%
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Bartlett Basic Value Fund
Vs
Standard and Poor's 500 Index
DATE BFIF LBIGC
<S> <C> <C>
05/05/83
05/31/83 10,000 10,000
06/30/83 10,070 10,379
09/30/83 10,250 10,362
12/31/83 10,534 10,407
03/31/84 10,657 10,156
06/30/84 10,636 9,892
09/30/84 11,078 10,847
12/31/84 11,419 11,042
03/31/85 12,189 12,059
06/30/85 12,705 12,935
09/30/85 12,987 12,400
12/31/85 14,304 14,529
03/31/86 16,177 16,572
06/30/86 16,793 17,518
09/30/86 16,259 16,300
12/31/86 16,259 17,178
03/31/87 18,019 20,840
06/30/87 18,811 21,913
09/30/87 19,596 23,360
12/31/87 15,648 18,067
03/31/88 17,795 19,105
06/30/88 18,667 20,355
09/30/88 19,201 20,429
12/31/88 19,761 21,047
03/31/89 20,572 22,524
06/30/89 21,555 24,503
09/30/89 22,680 27,113
12/31/89 22,066 27,656
03/31/90 21,908 26,812
06/30/90 22,707 28,502
09/30/90 18,441 24,568
12/31/90 19,947 26,776
03/31/91 23,286 30,674
06/30/91 22,769 30,610
09/30/91 24,149 32,248
12/31/91 25,126 34,948
03/31/92 25,599 34,056
06/30/92 26,549 34,715
09/30/92 26,913 35,795
12/31/92 27,698 37,624
03/31/93 29,239 39,268
06/30/93 28,883 39,458
09/30/93 29,978 40,476
12/31/93 30,926 41,417
03/31/94 30,238 39,848
06/30/94 30,543 40,015
09/30/94 31,950 41,972
12/31/94 31,052 41,966
03/31/95 34,069 46,052
</TABLE>
----------------------------------------------------------------------------
8
<PAGE> 11
The Lehman Brothers Intermediate Government/Corporate Bond Index is a
broad-based unmanaged index of intermediate-term bonds often used to measure
bond market activity. The index does not include any expenses or transaction
costs associated with buying and selling bonds within the index. The total
returns for the Bartlett Fixed Income Fund are quoted after deducting Fund
expenses and transaction costs, and assume the reinvestment of all
distributions.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
BARTLETT FIXED INCOME FUND
APRIL 22, 1986 THROUGH MARCH 31, 1995
AVERAGE ANNUAL TOTAL RETURNS*
For periods ended March 31, 1995
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
30-DAY YIELD 1 YEAR 3 YEARS 5 YEARS LIFE OF THE FUND
(Annualized) (since 04/22/86)
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
6.25% 2.4% 5.2% 7.2% 7.3%
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Bartlett Fixed Income Fund
vs
Lehman Brothers Intermediate Government/Corporate Bond Index
DATE BFIF LBIGC
<S> <C> <C>
04/22/86 10,000 10,000
06/30/86 10,151 10,134
09/30/86 10,473 10,381
12/31/86 10,799 10,652
03/31/87 11,059 10,793
06/30/87 10,949 10,699
09/30/87 10,800 10,557
12/31/87 11,096 11,042
03/31/88 11,546 11,407
06/30/88 11,714 11,518
09/30/88 11,935 11,711
12/31/88 11,962 11,779
03/31/89 12,104 11,904
06/30/89 12,879 12,696
09/30/89 13,024 12,850
12/31/89 13,463 13,283
03/31/90 13,323 13,263
06/30/90 13,711 13,689
09/30/90 13,739 13,928
12/31/90 14,276 14,499
03/31/91 14,636 14,864
06/30/91 14,879 15,129
09/30/91 15,569 15,859
12/31/91 16,325 16,620
03/31/92 16,168 16,468
06/30/92 16,836 17,120
09/30/92 17,520 17,875
12/31/92 17,456 17,812
03/31/93 18,077 18,518
06/30/93 18,362 18,917
09/30/93 18,752 19,343
12/31/93 18,664 19,375
03/31/94 18,385 18,982
06/30/94 18,137 18,868
09/30/94 18,197 19,022
12/31/94 18,130 19,001
03/31/95 18,828 19,833
</TABLE>
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
BARTLETT SHORT TERM BOND FUND
FEBRUARY 4, 1994 THROUGH MARCH 31, 1995
AVERAGE ANNUAL TOTAL RETURNS*
For periods ended March 31, 1995
<TABLE>
<CAPTION>
---------------------------------------------------
30-Day Yield 1 Year Life of the Fund
(Annualized) (since 02/04/94)
---------------------------------------------------
<S> <C> <C>
6.19% 2.6% 2.3%
---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Bartlett Short Term Bond Fund
vs
Merrill Lynch 1-3 Year Government Bond Index
Merrill
1-3 Yr
Short Term Bond Govt
<S> <C> <C>
02/04/94 10,000 10,000
03/31/94 10,004
06/30/94 10,028
09/30/94 10,089
12/31/94 10,000
03/31/95 10,263
</TABLE>
--------------------------------------------------------------------------------
The Merrill Lynch 1-3 Year Government Bond Index is a broad-based unmanaged
index of U.S. Treasury bonds with maturities of 1-3 years. The index does not
include any expenses or transaction costs associated with buying and selling
bonds within the index. The total returns for the Bartlett Short Term Bond Fund
are quoted after deducting Fund expenses and transaction costs and assume the
reinvestment of all distributions. The Fund also may invest in securities of
lower credit quality, which generally have greater yields than U.S. Treasury
securities of similar maturities.
--------------------------------------------------------------------------------
* The average annual total return numbers and line graphs on pages 8 and 9
represent only past performance and are not a guarantee of future results. As
the graphs illustrate, the share price of the Funds fluctuate and, upon
redemption, you may receive more or less than your original investment.
--------------------------------------------------------------------------------
9
<PAGE> 12
=========================
PORTFOLIOS OF INVESTMENTS
=========================
BARTLETT VALUE INTERNATIONAL FUND
As of March 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------------------------------------------------------------------------
COMMON STOCK -- 92.02%
-------------------------------------------------------------------------
<S> <C> <C>
Argentina -- 2.69%
YPF Sociedad Anonima SA (ADR)
(Energy, Oil & Gas) 81,600 $ 1,550,400
-------------------------------------------------------------------------
Australia -- 6.95%
Brambles Industries Ltd.
(Transport Services) 132,800 1,232,899
Burns Philp & Company Ltd.
(Food, Manufacturing) 580,190 1,363,649
National Australia Bank (ADR)
(Banking) 33,600 1,411,200
----------
4,007,748
-------------------------------------------------------------------------
Canada -- 2.59%
Hudson's Bay Co.
(Retailing) 75,000 1,493,517
-------------------------------------------------------------------------
Chile -- 2.73%
Sociedad Quimica
Minera de Chile (ADR)
(Chemicals) 52,400 1,572,000
-------------------------------------------------------------------------
Finland -- 1.97%
Tampella AB*
(Paper Products) 527,000 1,138,784
-------------------------------------------------------------------------
France -- 12.45%
Alcatel Althsom
(Capital Goods) 6,700 606,540
Alcatel Althsom (ADR)
(Capital Goods) 45,600 826,500
Essilor International
(Consumer Goods) 9,300 1,606,690
St. Gobain
(Glass/Building Materials) 11,634 1,449,856
Total Co. Francaise Petrole-B
(Energy) 11,200 669,408
Total SA (ADR)
(Energy) 23,100 693,000
Valeo
(Auto Components) 24,500 1,324,945
----------
7,176,939
-------------------------------------------------------------------------
Germany -- 2.62%
Bayer AG
(Chemicals) 6,130 1,509,817
-------------------------------------------------------------------------
Hong Kong -- 4.57%
Dairy Farm Intl. Holdings Ltd.
(Food Retailing) 1,296,000 $ 1,659,282
Hutchison Wampoa
(Real Estate/Communications) 222,000 979,011
----------
2,638,293
-------------------------------------------------------------------------
Ireland -- 2.51%
Allied Irish Banks PLC (ADR)
(Banking) 54,800 1,445,350
-------------------------------------------------------------------------
Italy -- 3.93%
Istituto Mobiliare SpA (ADR)
(Banking) 68,700 1,082,025
Sasib SpA - Savings Shares
(Capital Goods) 352,000 782,982
STET - Savings Shares
(Communications) 197,715 400,670
----------
2,265,677
-------------------------------------------------------------------------
Japan -- 7.06%
Canon Inc.
(Visual Image Equipment) 86,000 1,421,734
Ito-Yokado (ADR)
(Retailing) 6,700 1,309,431
Matsushita Electric Industries
(Consumer Electronics Equip.) 83,000 1,343,353
----------
4,074,518
-------------------------------------------------------------------------
Korea -- 1.93%
Korea Fund Inc.
(Closed-End Mutual Fund) 52,000 1,111,500
-------------------------------------------------------------------------
Netherlands -- 2.98%
AKZO Nobel NV
(Chemicals) 3,538 387,246
Koninklijke Ahold NV (ADR)
(Grocery Retailing) 38,281 1,330,265
----------
1,717,511
-------------------------------------------------------------------------
</TABLE>
10
<PAGE> 13
BARTLETT VALUE INTERNATIONAL FUND (Cont.)
As of March 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------------------------------------------------------------------------
<S> <C> <C>
Norway -- 4.93%
Hafslund Nycomed Cl.B (ADR)
(Health) 75,500 $1,500,563
Kvaerner Cl. A Free Shares
(Shipbuilding) 28,200 1,339,806
----------
2,840,369
-------------------------------------------------------------------------
Portugal -- 1.75%
Portugal Fund Inc.
(Closed-End Mutual Fund) 79,000 1,007,250
-------------------------------------------------------------------------
Singapore -- 2.48%
Jurong Shipyard, Ltd.
(Shipbuilding) 167,000 1,431,598
-------------------------------------------------------------------------
Spain -- 6.22%
Banco Santander SA Reg
(Banking) 20,518 723,132
Banco Santander SA Namen
(Banking) 6,839 239,950
Repsol SA (ADR)
(Energy) 46,200 1,339,800
Telefonica de Espana SA(ADR)
(Communications) 34,250 1,284,375
----------
3,587,257
-------------------------------------------------------------------------
Sweden -- 6.24%
AGA AB-"B" Free Shares
(Gas Supplier) 120,000 1,267,600
Atlas Copco AB-"A" Free Shares
(Construction/Mining
Manufacturer) 95,000 1,152,425
Frigoscandia AB-"B" Free Shs.
(Warehousing) 346,000 1,179,005
----------
3,599,030
-------------------------------------------------------------------------
Switzerland -- 6.21%
George Fischer, Bearer
(Capital Goods) 727 837,483
Nestle SA
(Food Manufacturer) 1,550 1,517,723
Sandoz AG
(Pharmaceuticals) 1,900 1,229,065
----------
3,584,271
-------------------------------------------------------------------------
Taiwan -- 1.81%
Taiwan Fund Inc.
(Closed-End Mutual Fund) 49,300 1,041,462
-------------------------------------------------------------------------
United Kingdom -- 7.40%
Cadbury Schweppes PLC (ADR)
(Beverages) 51,600 $ 1,480,275
Grand Metropolitan PLC (ADR)
(Consumer Goods) 52,300 1,346,725
Tomkins PLC (ADR)
(Diversified) 91,500 1,441,125
----------
4,268,125
-------------------------------------------------------------------------
TOTAL COMMON STOCK $53,061,416
-------------------------------------------------------------------------
(Cost-$49,361,706)
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
CONVERTIBLE BONDS -- 2.88%
-------------------------------------------------------------------------
<S> <C> <C>
Laidlaw, Inc. (Canada)
6.00%, 1/15/99 $ 700,000 $ 771,750
BCP Bank & Trust Co.
(Portugal)
8.75%, 5/21/02 650,000 887,471
-------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS $1,659,221
-------------------------------------------------------------------------
(Cost-$1,706,571)
-------------------------------------------------------------------------
COMMERCIAL PAPER -- 6.07%
-------------------------------------------------------------------------
Ford Motor Credit Corp.
5.74%, 4/12/95 $ 1,500,000 $ 1,500,000
General Electric Cap. Corp.
5.74%, 4/15/95 2,000,000 2,000,000
-------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $3,500,000
-------------------------------------------------------------------------
(Cost-$3,500,000)
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------------------------------------------------------------------------
INVESTMENT COMPANIES -- 0.78%
-------------------------------------------------------------------------
<S> <C> <C>
Highmark Government
Obligations Fund 452,853 $ 452,853
-------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES $452,853
-------------------------------------------------------------------------
(Cost-$452,853)
-------------------------------------------------------------------------
TOTAL INVESTMENTS
AT VALUE -- 101.75% $58,673,490
-------------------------------------------------------------------------
(Cost-$55,021,130)
-------------------------------------------------------------------------
ALL OTHER ASSETS LESS LIABILITIES -- (1.75%) (1,009,777)
-------------------------------------------------------------------------
NET ASSETS -- 100.00% $57,663,713
=========================================================================
</TABLE>
*Non-dividend paying investment.
See accompanying notes to financial statements.
11
<PAGE> 14
BARTLETT BASIC VALUE FUND
As of March 31, 1995
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
-------------------------------------------------------------------------
COMMON STOCK -- 85.62%
-------------------------------------------------------------------------
<S> <C> <C>
Aerospace/Defense -- 5.40%
Lockheed Martin Corp 65,000 $ 3,436,875
Raytheon Co. 29,000 2,113,375
----------
5,550,250
-------------------------------------------------------------------------
Air Transportation -- 1.71%
AMR Corp.* 27,150 1,757,963
-------------------------------------------------------------------------
Apparel -- 2.27%
Kellwood Co. 125,000 2,328,125
-------------------------------------------------------------------------
Automobiles &
Auto Parts -- 2.68%
General Motors Corp. 62,275 2,755,669
-------------------------------------------------------------------------
Broadcasting -- 5.30%
Multimedia, Inc. 86,000 3,251,875
Time Warner, Inc. 58,000 2,189,500
----------
5,441,375
-------------------------------------------------------------------------
Chemicals -- 2.18%
Bayer AG (ADR) 90,500 2,239,875
-------------------------------------------------------------------------
Communications -- 1.47%
Telefonica de Espana SA (ADR) 40,200 1,507,500
-------------------------------------------------------------------------
Diversified -- 9.87%
Canadian Pacific Ltd.(ADR) 107,050 1,605,750
Hanson PLC (ADR) 103,750 1,958,281
ITT Corp. 22,125 2,270,578
Loews Corp. 24,000 2,370,000
Tenneco, Inc. 41,000 1,932,125
----------
10,136,734
-------------------------------------------------------------------------
Energy -- 8.66%
Cabot Oil & Gas Corp., Class A 140,700 2,198,437
Phillips Petroleum Co. 65,000 2,380,625
Plains Petroleum Co. 26,000 607,750
Southwestern Energy Co. 125,000 1,875,000
Total SA (ADR) 61,000 1,830,000
----------
8,891,812
-------------------------------------------------------------------------
Financial Services -- 18.64%
Federal National Mortgage Assn. 25,000 2,034,375
First America Bank Corp. 43,650 1,467,731
First Tennessee National Corp. 30,469 1,264,464
PMC Capital, Inc. 40,000 465,000
Regions Financial Corp. 49,185 1,792,178
Salomon, Inc. 30,000 1,016,250
Security Capital Bancorp 114,400 2,102,100
Star Banc Corp. 32,000 1,340,000
State Auto Financial Corp. 79,800 1,306,725
Student Loan Marketing Assn. 48,000 1,674,000
Torchmark Corp. 50,500 2,095,750
U.S. Trust Corp. 20,000 1,380,000
Washington Fed. Svg. & Loan 60,000 1,207,500
----------
19,146,073
-------------------------------------------------------------------------
Food & Beverage -- 2.47%
Guinness PLC (ADR) 45,000 $ 1,698,750
Nestle SA (ADR) 17,260 837,110
------------
2,535,860
-------------------------------------------------------------------------
Health Care -- 2.85%
Bristol Myers-Squibb Co. 16,000 1,008,000
Merck & Co., Inc. 45,000 1,918,125
----------
2,926,125
-------------------------------------------------------------------------
Housewares -- 1.98%
National Presto Ind., Inc. 50,000 2,031,250
-------------------------------------------------------------------------
Machinery -- 2.29%
Kaydon Corp. 40,000 1,055,000
York International 33,000 1,295,250
----------
2,350,250
-------------------------------------------------------------------------
Metals & Mining -- 2.81%
Potash Corp of
Saskatchewan (ADR) 65,000 2,892,500
-------------------------------------------------------------------------
Paper -- 1.35%
Wausau Paper Mills Co. 61,721 1,388,723
-------------------------------------------------------------------------
Retailing -- 1.73%
Federated Dept. Stores 75,000 1,659,375
Grossman's, Inc.* 55,000 115,159
----------
1,774,534
-------------------------------------------------------------------------
Security Services -- 1.31%
ADT, Ltd. (ADR) 110,000 1,347,500
-------------------------------------------------------------------------
Steel Products -- 1.74%
British Steel PLC (ADR) 68,000 1,785,000
-------------------------------------------------------------------------
Tobacco -- 1.90%
Philip Morris Cos., Inc. 30,000 1,957,500
-------------------------------------------------------------------------
Utilities -- 3.20%
KU Energy, Inc. 51,300 1,417,162
NIPSCO Ind., Inc. 60,000 1,867,500
----------
3,284,662
-------------------------------------------------------------------------
Other Common Stock -- 3.81%
ROC Communities (REIT) 50,000 1,012,500
Royce Value Trust, Inc.
(Closed-End Mutual Fund) 255,568 2,907,086
----------
3,919,586
-------------------------------------------------------------------------
TOTAL COMMON STOCK $87,948,866
-------------------------------------------------------------------------
(Cost $69,829,993)
-------------------------------------------------------------------------
PREFERRED STOCK -- 0.78%
-------------------------------------------------------------------------
J.P. Morgan Co., Adj. Rate Pfd. "A" 12,000 $ 801,000
-------------------------------------------------------------------------
TOTAL PREFERRED STOCK $ 801,000
-------------------------------------------------------------------------
(Cost $738,250)
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
CONVERTIBLE BONDS -- 1.03%
-------------------------------------------------------------------------
<S> <C> <C>
Rite Aid Corp.
0.00%, 7/24/06 $ 2,250,000 $ 1,061,775
-------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS $ 1,061,775
-------------------------------------------------------------------------
(Cost $991,406)
</TABLE>
12
<PAGE> 15
BARTLETT BASIC VALUE FUND(Cont.)
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
CORPORATE BONDS -- 1.93%
-------------------------------------------------------------------------
<S> <C> <C>
Merrill Lynch
6.14%, 1/26/00 $ 2,000,000 $ 1,985,000
-------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 1,985,000
-------------------------------------------------------------------------
(Cost $1,977,980)
-------------------------------------------------------------------------
COMMERCIAL PAPER -- 11.19%
-------------------------------------------------------------------------
Associates Corp.
5.88%, 4/4/95 $ 2,000,000 $ 1,999,020
Chevron Oil Financial Corp.
5.95%, 4/5/95 2,000,000 1,998,678
IBM Comm. Credit Corp.
5.88%, 4/3/95 2,000,000 1,999,347
John Deere Capital Corp.
6.00%, 4/7/95 2,000,000 1,998,000
Texaco Capital Corp.
5.90%, 4/4/95 3,500,000 3,498,279
-------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $11,493,324
-------------------------------------------------------------------------
(Cost $11,484,557)
-------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.03%
-------------------------------------------------------------------------
The Provident Bank,
6.15%, issued 3/31/95, due
4/3/95, collateralized by
U.S. Treasury Notes, 4.125%
(par value $1,070,000,
due 6/30/95) (repurchase
proceeds $1,054,540) $1,054,000 $ 1,054,000
-------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 1,054,000
-------------------------------------------------------------------------
(Cost $1,054,000)
-------------------------------------------------------------------------
TOTAL INVESTMENTS
AT VALUE -- 101.58% $104,343,965
-------------------------------------------------------------------------
(Cost $86,076,186)
-------------------------------------------------------------------------
ALL OTHER ASSETS
LESS LIABILITIES -- (1.58)% ($1,623,047)
-------------------------------------------------------------------------
NET ASSETS -- 100.00% $102,720,918
=========================================================================
</TABLE>
*Non-dividend paying investment.
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
BARTLETT FIXED INCOME FUND
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
U.S. GOVERNMENT AND
AGENCIES OBLIGATIONS
-- 81.78%
-------------------------------------------------------------------------
U.S. Treasury Obligations
-- 35.34%
-------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Note
7.250%, 11/30/96 $ 4,200,000 $ 4,233,470
U.S. Treasury Note
7.875%, 04/15/98 11,950,000 12,252,490
U.S. Treasury Note
6.875%, 08/31/99 5,000,000 4,965,625
U.S. Treasury Note
7.500%, 10/31/99 6,175,000 6,276,307
U.S. Treasury Note
5.875%, 02/15/04 5,000,000 4,560,155
------------
32,288,047
-------------------------------------------------------------------------
U.S. Government Agency Obligations
-- 5.24%
-------------------------------------------------------------------------
Federal Home Loan Banks
Inverse French Franc
Pibor-Indexed
Consolidated Bonds
5.729%, 02/09/96 1,200,000 1,182,600
Federal Home Loan Banks
Inverse French Franc
Pibor-Indexed
Consolidated Bonds
3.000%, 06/29/98 $ 4,000,000 $ 3,602,800
------------
4,785,400
-------------------------------------------------------------------------
Mortgage-Backed Obligations
-- 41.20%
-------------------------------------------------------------------------
Federal National Mortgage
Assn.-REMIC CMO
6.500%, 09/25/08 $ 664,526 $ 644,798
Federal National Mortgage
Assn.-REMIC CMO
6.650%, 01/25/17 5,000,000 4,801,565
Federal Home Loan Mortgage
Corp.-REMIC CMO
6.250%, 04/15/19 2,067,247 1,984,557
Federal National Mortgage
Assn.-REMIC CMO
7.000%, 09/25/20 2,250,000 2,171,250
Federal National Mortgage
Assn.-REMIC CMO
Floating Rate Note
6.625%, 12/25/20 5,075,000 4,957,641
</TABLE>
13
<PAGE> 16
BARTLETT FIXED INCOME FUND (Cont.)
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
<S> <C> <C>
Government National
Mortgage Assn.
9.000%, 06/15/16-3/15/25 $15,395,490 $ 15,939,150
Government National
Mortgage Assn.
6.000%, 10/15/23-3/15/24 8,182,449 7,136,634
------------
37,635,595
-------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCIES OBLIGATIONS $74,709,042
-------------------------------------------------------------------------
(Cost-$75,237,617)
-------------------------------------------------------------------------
CORPORATE OBLIGATIONS
-- 12.89%
-------------------------------------------------------------------------
Associates Corp. of N. Amer.
6.750%, 07/15/97 $ 5,250,000 $ 5,198,550
Merrill Lynch
6.140%, 01/26/00 1,350,000 1,339,875
Pepsico Corp.
Step Up Rate Note
7.000%, 10/14/99 5,250,000 5,240,025
-------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS $11,778,450
-------------------------------------------------------------------------
(Cost-$11,827,463)
-------------------------------------------------------------------------
COMMERCIAL PAPER -- 2.74%
-------------------------------------------------------------------------
Deere & Co.
6.00%, 04/17/95 $ 2,500,000 $ 2,497,500
-------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $ 2,497,500
-------------------------------------------------------------------------
(Cost $2,497,083)
-------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 1.01%
-------------------------------------------------------------------------
The Provident Bank,
6.15%, issued 3/31/95,
due 4/3/95, collateralized
by U.S. Treasury Notes,
4.125% (par value $935,000,
due 6/30/95) (repurchase
proceeds $919,471) $ 919,000 $ 919,000
-------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 919,000
-------------------------------------------------------------------------
(Cost-$919,000)
-------------------------------------------------------------------------
TOTAL INVESTMENTS AT VALUE
-- 98.42% $ 89,903,992
-------------------------------------------------------------------------
(Cost $90,481,163)
-------------------------------------------------------------------------
ALL OTHER ASSETS LESS LIABILITIES
-- 1.58% $ 1,445,466
-------------------------------------------------------------------------
NET ASSETS -- 100.00% $ 91,349,458
=========================================================================
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 17
BARTLETT SHORT TERM BOND FUND
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCIES OBLIGATIONS -- 72.48%
-------------------------------------------------------------------------
U.S. Treasury Obligations -- 10.13%
-------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Note
7.250%, 11/30/96 $1,000,000 $ 1,007,969
U.S. Treasury Note
6.500%, 08/15/97 1,000,000 992,500
------------
2,000,469
-------------------------------------------------------------------------
U.S. Government Obligations -- 13.11%
-------------------------------------------------------------------------
Federal Home Loan Banks
Inverse French Franc
Pibor-Indexed
Consolidated Bonds
5.729%, 02/09/96 $ 600,000 $ 591,300
Federal Home Loan Banks
Libor-Indexed
Consolidated Bonds
6.856%, 04/15/98 1,500,000 1,435,050
Federal Home Loan Banks
Inverse French Franc
Pibor-Indexed
Consolidated Bonds
3.000%, 06/29/98 625,000 562,937
------------
2,589,287
-------------------------------------------------------------------------
Mortgage-Backed Obligations -- 49.24%
-------------------------------------------------------------------------
Federal National Mortgage
Assn.-REMIC CMO
6.500%, 09/25/08 $ 531,621 $ 515,838
Federal National Mortgage
Assn.-REMIC CMO
6.650%, 01/25/17 750,000 720,235
Federal National Mortgage
Assn.-REMIC CMO
7.000%, 03/25/19 475,000 461,344
Federal Home Loan Mortgage
Corp.-REMIC CMO
6.250%, 04/15/19 849,868 815,873
Federal National Mortgage
Assn.-REMIC CMO
7.000%, 10/25/19 750,000 720,938
Federal National Mortgage
Assn.-REMIC CMO
7.000%, 09/25/20 750,000 723,750
Federal National Mortgage
Assn.-REMIC CMO
Floating Rate Note
6.625%, 12/25/20 1,000,000 976,875
Government National
Mortgage Assn.
9.000%, 06/15/16-3/15/25 4,625,053 4,788,377
------------
9,723,230
-------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
AGENCIES OBLIGATIONS $14,312,986
-------------------------------------------------------------------------
(Cost-$14,580,889)
-------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- 14.13%
-------------------------------------------------------------------------
Merrill Lynch
6.140%, 01/26/00 $ 1,150,000 $ 1,141,375
Merrill Lynch
Step Up Rate Note
8.230%, 04/30/02 150,000 151,313
Pepsico Corp.
Step Up Rate Note
7.000%, 10/14/99 1,500,000 1,497,150
-------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS $ 2,789,838
-------------------------------------------------------------------------
(Cost-$2,793,906)
-------------------------------------------------------------------------
COMMERCIAL PAPER -- 5.06%
IBM Comm. Credit Corp.
5.88%, 4/3/95 $ 1,000,000 $ 999,673
-------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $ 999,673
-------------------------------------------------------------------------
(Cost $998,203)
-------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.22%
The Provident Bank,
6.15%, issued 3/31/95,
due 4/3/95, collateralized
by U.S. Treasury Notes,
4.125% (par value $1,450,000,
due 6/30/95) (repurchase
proceeds $1,426,731) $ 1,426,000 $ 1,426,000
-------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 1,426,000
-------------------------------------------------------------------------
(Cost-$1,426,000)
-------------------------------------------------------------------------
TOTAL INVESTMENTS AT VALUE -- 98.89% $19,528,497
-------------------------------------------------------------------------
(Cost-$19,798,998)
-------------------------------------------------------------------------
FUTURES CONTRACTS
SOLD -- 0.00% Contracts
-------------------------------------------------------------------------
2 Yr. Treasury Note Futures
June Expiration 20 $ (1,761)
5 Yr. Treasury Note Futures
June Expiration 10 915
10 Yr. Treasury Note Futures
June Expiration 2 230
-------------------------------------------------------------------------
TOTAL FUTURES CONTRACTS SOLD $ (616)
-------------------------------------------------------------------------
ALL OTHER ASSETS LESS LIABILITIES
-- 1.11% $ 220,220
-------------------------------------------------------------------------
NET ASSETS -- 100.00% $19,748,101
=========================================================================
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 18
BARTLETT CASH RESERVES FUND
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
COMMERCIAL PAPER -- 89.26%
-------------------------------------------------------------------------
<S> <C> <C>
Abbott Laboratories
5.94%, 04/13/95 $1,581,000 $1,577,791
Abbott Laboratories
5.95%, 04/19/95 1,500,000 1,495,515
Anheuser-Busch
5.96%, 04/11/95 1,000,000 998,308
Anheuser-Busch
5.95%, 05/05/95 2,000,000 1,988,704
Associates Corp. of N. Amer.
6.02%, 05/31/95 1,000,000 990,033
Associates Corp. of N. Amer.
6.00%, 06/05/95 2,000,000 1,978,405
AT&T Capital Corp.
6.00%, 04/06/95 3,000,000 2,997,462
Bell Atlantic Financial Corp.
5.95%, 04/04/95 3,000,000 2,998,478
Bellsouth Capital Funding Corp.
5.93%, 04/18/95 3,000,000 2,991,528
Beneficial Corporation
6.02%, 05/30/95 3,000,000 2,970,598
Chevron Oil Finance Co.
6.00%, 05/18/95 1,500,000 1,488,289
Chevron Oil Finance Co.
6.00%, 05/23/95 1,500,000 1,487,043
Coca-Cola Co.
5.92%, 04/03/95 3,000,000 2,998,985
CPC International
6.03%, 05/26/95 3,000,000 2,972,591
Deere & Co. Capital Corp.
5.95%, 04/11/95 1,500,000 1,497,463
Deere & Co. Capital Corp.
5.95%, 04/12/95 1,500,000 1,497,209
Ford Motor Credit Co.
5.95%, 04/05/95 1,500,000 1,498,985
Ford Motor Credit Co.
6.02%, 05/15/95 1,500,000 1,489,037
General Electric Capital Corp.
6.00%, 05/22/95 1,500,000 1,487,293
General Electric Capital Corp.
6.00%, 05/30/95 1,500,000 1,485,299
General Mills Co.
5.96%, 04/04/95 1,000,000 999,493
H.J. Heinz Co.
5.98%, 04/03/95 1,000,000 999,662
H.J. Heinz Co.
5.98%, 04/13/95 500,000 498,985
H.J. Heinz Co.
5.94%, 04/20/95 1,500,000 1,495,266
IBM Corporation
5.95%, 04/05/95 $ 1,000,000 $ 999,323
IBM Corporation
6.03%, 04/10/95 2,000,000 1,996,955
J.C. Penny Funding Corp.
5.95%, 04/28/95 1,500,000 1,493,273
Kellog Co.
5.93%, 04/20/95 1,000,000 996,844
Kimberly Clark
5.95%, 04/24/95 1,500,000 1,494,269
Lilly, Eli & Co.
5.93%, 04/06/95 2,000,000 1,998,308
Lilly, Eli & Co.
6.03%, 04/13/95 1,000,000 997,970
Motorola Inc.
5.96%, 04/03/95 2,000,000 1,999,323
Norwest Financial Inc.
5.95%, 04/25/95 2,000,000 1,992,027
Norwest Financial Inc.
6.03%, 06/29/95 1,000,000 985,167
Pepsico, Inc.
5.93%, 04/12/95 1,000,000 998,139
R.R. Donnelley
5.93%, 04/04/95 1,000,000 999,493
R.R. Donnelley
6.02%, 04/13/95 1,960,000 1,956,021
Raytheon Corp.
5.94%, 04/21/95 1,500,000 1,495,017
Sears Roebuck Acc. Corp.
6.02%, 05/22/95 3,000,000 2,974,585
Shell Oil Company
5.96%, 05/10/95 3,000,000 2,980,565
Smithkline Beecham
5.96%, 04/28/95 1,300,000 1,294,170
Smithkline Beecham
6.00%, 05/30/95 1,500,000 1,485,299
Southwest Bell Capital Corp.
6.00%, 05/23/95 2,500,000 2,478,406
U.S. West Comm. Corp.
5.97%, 04/03/95 2,000,000 1,999,323
U.S. West Comm. Corp.
5.98%, 05/08/95 1,000,000 993,854
Wal-Mart Corp
5.95%, 04/07/95 3,000,000 2,996,955
-------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $80,487,708
-------------------------------------------------------------------------
(Cost-$80,119,250)
</TABLE>
16
<PAGE> 19
BARTLETT CASH RESERVES FUND (Cont.)
As of March 31, 1995
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
-------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.52%
-------------------------------------------------------------------------
<S> <C> <C>
The Provident Bank, 6.15%,
issued 3/31/95, due 4/3/95,
collateralized by U.S. Treasury
Notes, 4.125% (par value
$480,000, due 6/30/95)
(repurchase proceeds
$468,240) $ 468,000 $ 468,000
-------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT $ 468,000
-------------------------------------------------------------------------
(Cost-$468,000)
-------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 8.01%
-------------------------------------------------------------------------
Federal Farm Credit Corp.
5.95%, 06/27/95 $3,000,000 $2,956,500
Federal National Mortgage
Assn. Agency Note
5.96%, 06/26/95 1,335,000 1,315,865
Federal National Mortgage
Assn. Agency Note
5.98%, 06/30/95 3,000,000 2,955,000
-------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS $ 7,227,365
-------------------------------------------------------------------------
(Cost-$7,225,076)
-------------------------------------------------------------------------
TOTAL INVESTMENTS
AT VALUE -- 97.79% $88,183,073
-------------------------------------------------------------------------
(Cost-$87,812,326)
-------------------------------------------------------------------------
ALL OTHER ASSETS LESS
LIABILITIES -- 2.21% 1,989,213
-------------------------------------------------------------------------
NET ASSETS -- 100.00% $90,172,286
=========================================================================
</TABLE>
REIT-Real Estate Investment Trust.
REMIC-Real Estate Mortgage Investment Conduit.
CMO-Collateralized Mortgage Obligation.
Inverse French Franc Pibor-Indexed Consolidated Bonds-Represent structured
securities that pay interest at a rate that increases (decreases) with a
decline (increase) in the Pibor (Paris InterBank Offered Rate). Interest rates
disclosed are in effect at March 31, 1995.
Libor-Indexed Consolidated Bonds-Represents a structured security that pays
interest at a rate that increases (decreases) with an increase (decrease) in
the Libor (London InterBank Offered Rate). Interest rates disclosed are in
effect at March 31, 1995.
See accompanying notes to financial statements.
17
<PAGE> 20
====================================
STATEMENTS OF ASSETS AND LIABILITIES
As of March 31, 1995
====================================
<TABLE>
<CAPTION>
BARTLETT
BARTLETT BARTLETT BARTLETT SHORT BARTLETT
VALUE BASIC FIXED TERM CASH
INTERNATIONAL VALUE INCOME BOND RESERVES
FUND FUND FUND FUND FUND
================================================================================================================
ASSETS:
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment securities,
at original cost
(Note 1) $ 55,021,130 $ 86,076,186 $ 90,481,163 $ 19,798,998 $ 87,812,326
================================================================================================================
Investment securities,
at value (Note 1) $ 58,673,490 $104,343,965 $ 89,903,992 $ 19,528,497 $ 88,183,073
Dividends and interest
receivable 224,842 188,154 1,281,142 207,138 80
Receivable for share
purchases 41,499 49,048 334,090 41,132 2,117,395
Cash -- 9 472 485 823
----------------------------------------------------------------------------------------------------------------
Total Assets 58,939,831 104,581,176 91,519,696 19,777,252 90,301,371
----------------------------------------------------------------------------------------------------------------
LIABILITIES:
----------------------------------------------------------------------------------------------------------------
Shareholder
distributions payable 19,154 21,842 65,338 29,068 16,218
Payable for securities
purchased 1,237,483 -- -- -- --
Shareholder
redemptions payable 19,481 1,838,416 104,900 83 112,867
----------------------------------------------------------------------------------------------------------------
Total Liabilities 1,276,118 1,860,258 170,238 29,151 129,085
----------------------------------------------------------------------------------------------------------------
NET ASSETS $ 57,663,713 $102,720,918 $ 91,349,458 $ 19,748,101 $ 90,172,286
================================================================================================================
Net Assets Consist of:
Capital shares $ 54,245,228 $ 83,024,401 $ 95,941,365 $ 20,493,427 $ 90,269,413
Accumulated
undistributed net
investment income 11,126 22,163 -- -- --
Accumulated net realized
gains (losses) from
security transactions (253,272) 1,499,998 (4,047,747) (510,375) (96,522)
Net unrealized
appreciation/(depreciation)
on investments 3,660,631 18,174,356 (544,160) (234,951) (605)
----------------------------------------------------------------------------------------------------------------
Net Assets $ 57,663,713 $102,720,918 $ 91,349,458 $ 19,748,101 $ 90,172,286
================================================================================================================
Shares of beneficial
interest outstanding
(unlimited number
of shares authorized,
no par value) (Note 4) 4,952,364 6,673,071 9,418,434 2,043,270 90,269,413
================================================================================================================
Net asset value,
offering and redemption
price per share (Note 1) $ 11.64 $15.39 $9.70 $9.66 $1.00
================================================================================================================
</TABLE>
See accompanying notes to financial statements.
18
<PAGE> 21
===================================
STATEMENTS OF OPERATIONS
===================================
For The Year Ended March 31, 1995
<TABLE>
<CAPTION>
BARTLETT
BARTLETT BARTLETT BARTLETT SHORT BARTLETT
VALUE BASIC FIXED TERM CASH
INTERNATIONAL VALUE INCOME BOND RESERVES
FUND FUND FUND FUND FUND
==================================================================================================================================
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
----------------------------------------------------------------------------------------------------------------------------------
Interest $ 322,960 $ 710,815 $ 6,590,664 $ 1,383,918 $ 3,890,626
Dividends 1,300,281 2,231,163 -- -- --
Less foreign taxes withheld (148,644) -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,474,597 2,941,978 6,590,664 1,383,918 3,890,626
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
----------------------------------------------------------------------------------------------------------------------------------
Management Fee (Note 3) 1,025,125 1,173,808 998,750 190,629 614,397
----------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,025,125 1,173,808 998,750 190,629 614,397
----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 449,472 1,768,170 5,591,914 1,193,289 3,276,229
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains (losses) from
security transactions 2,425,836 4,359,075 (3,280,414) (497,579) (81,479)
Net change in net unrealized
appreciation (depreciation)
on investments (3,917,520) 5,759,310 (407,515) (127,141) 13,459
----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS (1,491,684) 10,118,385 (3,687,929) (624,720) (68,020)
----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ($1,042,212) $11,886,555 $ 1,903,985 $ 568,569 $ 3,208,209)
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements
19
<PAGE> 22
=====================================
STATEMENTS OF CHANGES IN NET ASSETS
=====================================
<TABLE>
<CAPTION>
BARTLETT BARTLETT
VALUE INTERNATIONAL FUND BASIC VALUE FUND
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
3/31/95 3/31/94 3/31/95 3/31/94
==============================================================================================================
FROM OPERATIONS:
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income $ 449,472 $ 214,296 $ 1,768,170 $ 1,481,651
Net realized gains (losses) from
security transactions 2,425,836 659,154 4,359,075 4,762,276
Net change in net unrealized
appreciation (depreciation)
on investments (3,917,520) 7,020,730 5,759,310 (2,745,345)
--------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS (1,042,212) 7,894,180 11,886,555 3,498,582
--------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
--------------------------------------------------------------------------------------------------------------
From net investment income (438,346) (214,296) (1,765,417) (1,522,408)
From net realized gains from
security transactions (2,727,131) (12,949) (6,700,292) (926,246)
--------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (3,165,477) (227,245) (8,465,709) (2,448,654)
--------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS (NOTE 4):
--------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 41,462,779 20,288,986 88,106,512 89,413,590
Net asset value of shares issued
in reinvestment of shareholder
distributions 2,650,327 154,573 8,073,721 2,356,958
Payment for shares redeemed (31,848,784) (8,075,630) (91,168,817) (102,038,558)
--------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) FROM FUND
SHARE TRANSACTIONS 12,264,322 12,367,929 5,011,416 (10,268,010)
--------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 8,056,633 20,034,864 8,432,262 (9,218,082)
NET ASSETS:
Beginning of period 49,607,080 29,572,216 94,288,656 103,506,738
--------------------------------------------------------------------------------------------------------------
End of period $ 57,663,713 $49,607,080 $102,720,918 $ 94,288,656
==============================================================================================================
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME $ 11,126 $ -- $ 22,163 $ 19,410
==============================================================================================================
</TABLE>
(a) From the start of business (February 4, 1994) through March 31, 1994.
See accompanying notes to financial statements.
20
<PAGE> 23
<TABLE>
<CAPTION>
BARTLETT
BARTLETT SHORT TERM BARTLETT
FIXED INCOME FUND BOND FUND CASH RESERVES FUND
YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/95 3/31/94 3/31/95 3/31/94(A) 3/31/95 3/31/94
====================================================================================================================================
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 5,591,914 $ 5,769,139 $ 1,193,289 $ 117,373 $ 3,276,229 $ 1,901,641
Net realized gains (losses) from
security transactions (3,280,414) 855,388 (497,579) (12,796) (81,479) (8,622)
Net change in net unrealized
appreciation (depreciation)
on investments (407,515) (4,109,034) (127,141) (107,810) 13,459 (133,776)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS 1,903,985 2,515,493 568,569 (3,233) 3,208,209 1,759,243
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
------------------------------------------------------------------------------------------------------------------------------------
From net investment income (5,591,914) (5,769,139) (1,193,289) (117,373) (3,276,229) (1,901,641)
From net realized gains from
security transactions -- (1,977,803) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (5,591,914) (7,746,942) (1,193,289) (117,373) (3,276,229) (1,901,641)
------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS (NOTE 4):
------------------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 32,641,620 55,815,622 34,220,058 24,268,104 367,680,400 378,988,776
Net asset value of shares issued
in reinvestment of shareholder
distributions 4,778,669 6,771,929 838,351 82,427 3,115,274 1,752,947
Payment for shares redeemed (53,796,673) (81,429,392) (36,973,689) (1,941,824) (358,112,926) (369,003,477)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) FROM FUND
SHARE TRANSACTIONS (16,376,384) (18,841,841) (1,915,280) 22,408,707 12,682,748 11,738,246
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS (20,064,313) (24,073,290) (2,540,000) 22,288,101 12,614,728 11,595,848
NET ASSETS:
Beginning of period 111,413,771 135,487,061 22,288,101 0 77,557,558 65,961,710
------------------------------------------------------------------------------------------------------------------------------------
End of period $ 91,349,458 $111,413,771) $ 19,748,101 $ 22,288,101 $ 90,172,286 $ 77,557,558
====================================================================================================================================
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME $ -- $ -- $ -- $ -- $ -- $ --
====================================================================================================================================
</TABLE>
21
<PAGE> 24
=========================
FINANCIAL HIGHLIGHTS
=========================
<TABLE>
<CAPTION>
BARTLETT VALUE INTERNATIONAL FUND
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR ENDED MARCH 31,
1995 1994 1993 1992 1991
===================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.46 $ 10.08 $ 9.93 $ 9.09 $ 9.79
---------------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income .09 .07 .12 .18 .30
Net Realized and Unrealized Gains
(Losses) on Securities (.21) 2.38 .15 .88 (.70)
---------------------------------------------------------------------------------------------------
Total From Investment Operations (.12) 2.45 .27 1.06 (.40)
---------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment
Income (.09) (.07) (.10) (.22) (.28)
Distributions From Realized Gains (.61) -- (.02) -- (.02)
---------------------------------------------------------------------------------------------------
Total Distributions (.70) (.07) (.12) (.22) (.30)
---------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.64 $ 12.46 $ 10.08 $ 9.93 $ 9.09
===================================================================================================
Total Return (1.18%) 24.42% 2.71% 11.88% (3.84%)
===================================================================================================
Ratios / Supplemental Data:
---------------------------
Net Assets, End of Period (000's) $57,664 $49,607 $29,572 $22,042 $23,661
Ratio of Net Expenses to Average
Net Assets (a) 1.83% 1.88% 2.00% 2.00% 1.99%
Ratio of Net Investment Income
to Average Net Assets (a) .80% .55% 1.13% 1.79% 3.31%
Portfolio Turnover Rate 24% 19% 19% 27% 39%
---------------------------------------------------------------------------------------------------
BARTLETT BASIC VALUE FUND
===================================================================================================
Net Asset Value, Beginning of Period $ 14.89 $ 14.76 $ 13.47 $ 12.60 $ 12.34
---------------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income .27 .22 .30 .36 .46
Net Realized and Unrealized Gains
on Securities 1.53 .28 1.57 .87 .26
---------------------------------------------------------------------------------------------------
Total From Investment Operations 1.80 .50 1.87 1.23 .72
---------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment
Income (.27) (.23) (.30) (.36) (.46)
Distributions From Realized Gains (1.03) (.14) (.28) -- --
---------------------------------------------------------------------------------------------------
Total Distributions (1.30) (.37) (.58) (.36) (.46)
---------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 15.39 $ 14.89 $ 14.76 $ 13.47 $ 12.60
===================================================================================================
Total Return 12.67% 3.42% 14.22% 9.91% 6.29%
===================================================================================================
Ratios / Supplemental Data:
---------------------------
Net Assets, End of Period (000's) $102,721 $94,289 $103,507 $88,536 $96,165
Ratio of Expenses to Average
Net Assets 1.20% 1.20% 1.21% 1.22% 1.21%
Ratio of Net Investment Income
to Average Net Assets 1.81% 1.48% 2.14% 2.77% 3.87%
Portfolio Turnover Rate 26% 33% 43% 49% 92%
---------------------------------------------------------------------------------------------------
</TABLE>
(a) The Advisor has periodically absorbed expenses of the Bartlett Value
International Fund through management fee waiver. If the Advisor had not waived
any fees, the ratio of net expenses to average net assets would have been 1.94%
and the ratio of net investment income to average net assets would have been
.49% for the period ended March 31, 1994.
See accompanying notes to financial statements.
22
<PAGE> 25
BARTLETT FIXED INCOME FUND
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR ENDED MARCH 31,
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.02 $10.48 $ 9.93 $ 9.63 $9.46
--------------------------------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income .54 .48 .59 .67 .73
Net Realized and Unrealized Gains
(Losses) on Securities (.32) (.30) .55 .31 .17
--------------------------------------------------------------------------------------------------------------------
Total From Investment Operations .22 .18 1.14 .98 .90
--------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment
Income (.54) (.48) (.59) (.68) (.73)
Distributions From Realized Gains -- (.16) -- -- --
--------------------------------------------------------------------------------------------------------------------
Total Distributions (.54) (.64) (.59) (.68) (.73)
--------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.70 $10.02 $10.48 $ 9.93 $9.63
====================================================================================================================
Total Return 2.41% 1.70% 11.81% 10.46% 9.86%
====================================================================================================================
Ratios / Supplemental Data:
---------------------------
Net Assets, End of Period (000's) $91,349 $111,414 $135,487 $147,992 $159,218
Ratio of Expenses to Average
Net Assets (a) 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of Net Investment Income
to Average Net Assets 5.60% 4.58% 5.81% 6.85% 7.68%
Portfolio Turnover Rate 118% 163% 175% 126% 165%
Amount of Debt Outstanding
at End of Period $ -- $ -- $ -- $ -- $ --
Average Amount of Debt
Outstanding During the
Period (b) (000's) $ 255 $ 2,550 $ 12,627 $ 6,601 $ --
Average Number of Shares
Outstanding During the
Period (c) (000's) 10,270 12,095 13,689 15,577 --
Average Amount of Debt Per
Share During the Period $ 0.02 $ 0.21 $ 0.92 $ 0.42 $ --
--------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Ratios do not include interest paid on reverse repurchase agreements.
(b) The average amount of debt outstanding during the period was calculated by
aggregating borrowings at the end of each day and dividing that sum by the
number of days in the period.
(c) The average number of shares outstanding during the period was calculated by
averaging the number of shares outstanding at the end of each month in the
period.
See accompanying notes to financial statements.
23
<PAGE> 26
===========================
FINANCIAL HIGHLIGHTS
===========================
BARTLETT SHORT TERM BOND FUND
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR ENDED MARCH 31,
<TABLE>
<CAPTION>
1995 1994(A) 1993 1992 1991
======================================================================================================================
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $9.94 $10.00
----------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income .53 .06
Net Realized and Unrealized Gains
(Losses) on Securities (.28) (.06)
----------------------------------------------------------------------------------------
Total From Investment Operations .25 .00
----------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income (.53) (.06)
----------------------------------------------------------------------------------------
Total Distributions (.53) (.06)
----------------------------------------------------------------------------------------
Net Asset Value, End of Period $9.66 $9.94
========================================================================================
Total Return 2.58% .04%(b)
========================================================================================
Ratios / Supplemental Data:
-----------------------------
Net Assets, End of Period (000's) $19,748 $22,288
Ratio of Expenses to Average
Net Assets .85% .85%(d)
Ratio of Net Investment Income
to Average Net Assets 5.38% 4.55%(d)
Portfolio Turnover Rate 158% 202%(d)
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
BARTLETT CASH RESERVES FUND
======================================================================================================================
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
----------------------------------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income .04 .03 .03 .05 .07
----------------------------------------------------------------------------------------------------------------------
Total From Investment Operations .04 .03 .03 .05 .07
----------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income (.04) (.03) (.03) (.05) (.07)
----------------------------------------------------------------------------------------------------------------------
Total Distributions (.04) (.03) (.03) (.05) (.07)
----------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00 $1.00
======================================================================================================================
Total Return 4.22% 2.69% 3.26% 5.07% 7.32%
======================================================================================================================
Ratios / Supplemental Data:
---------------------------
Net Assets, End of Period (000's) $90,172 $77,558 $65,962 $75,867 $130,250
Ratio of Net Expenses
to Average Net Assets (c) .78% .77% .72% .67% .73%
Ratio of Net Investment Income
to Average Net Assets (c) 4.16% 2.71% 3.26% 5.05% 7.08%
----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Except for the Bartlett Short Term Bond Fund which is from the date of
public offering (February 4, 1994) through March 31, 1994.
(b) Total return is for the period February 4, 1994 through March 31, 1994.
(c) The Advisor has periodically absorbed expenses of the Bartlett Cash Reserves
Fund through management fee waiver. If the Advisor had not waived any
fees, the ratios of net expenses to average net assets would have been
.88%, .90%, .90% and .90%, and the ratios of net investment income to
average net assets would have been 2.60%, 3.07%, 4.82%, and 6.91%, for the
periods ended March 31, 1994 through 1991, respectively.
(d) Annualized.
See accompanying notes to financial statements.
24
<PAGE> 27
========================================
NOTES TO FINANCIAL STATEMENTS
========================================
As of March 31, 1995
1. Significant Accounting Policies
Bartlett Capital Trust and Bartlett Management Trust are registered under
the Investment Company Act of 1940, as amended, as no-load, diversified,
open-end management investment companies. Bartlett Capital Trust was established
as a Massachusetts business trust under a Declaration of Trust dated October 31,
1982. The Declaration of Trust, as amended, permits the Trustees to issue an
unlimited number of shares of the Bartlett Value International Fund, Bartlett
Basic Value Fund, Bartlett Fixed Income Fund and the Bartlett Short Term Bond
Fund. The Bartlett Short Term Bond Fund started business and commenced the
public offering of shares on February 4, 1994. Bartlett Management Trust was
established as an Ohio business trust under a Declaration of Trust dated July
16, 1984. The Declaration of Trust, as amended, permits the Trustees to issue an
unlimited number of shares of the Bartlett Cash Reserves Fund, the only series
of the Trust presently authorized by the Trustees.
The following is a summary of the significant accounting policies of
Bartlett Capital Trust and Bartlett Management Trust:
Security Valuation - Equity securities, options and commodities listed on
exchanges are valued at the last sale price as of the close of business on the
day the securities are being valued. Listed securities not traded on a
particular day and securities traded in the over-the-counter market are valued
at the mean between closing bid and ask prices quoted by brokers or dealers that
make markets in the securities. Portfolio securities which are traded both in
the over-the-counter market and on an exchange are valued according to the
broadest and most representative market.
Fixed income securities generally are valued by using market quotations, or
independent pricing services which use prices provided by market makers or
estimates of market values. However, if Bartlett & Co. (the Advisor) believes
the market value of a security will be more accurately reflected thereby, it
will use market value estimates obtained from yield spreads relating to
securities with similar characteristics as to credit quality, coupon rate,
maturity and other factors. Fixed income securities having a maturity of less
than 60 days (except for those in Bartlett Cash Reserves Fund) are valued at
amortized cost, which approximates market value.
Securities, primarily fixed income securities, of a Fund for which market
quotations or estimates are not readily available are valued at fair value as
determined in good faith by the Advisor, subject to review of the Board of
Trustees.
The values of international securities are generally based upon market
quotations converted to U.S. dollar equivalents at 4:00 p.m. Eastern Standard
time which, depending upon the exchange or market, may be last sale price, last
bid price, or the mean between the last bid and asked prices as of, in each
case, the close of the appropriate exchange or another designated time. Trading
in securities on European and Far Eastern securities exchanges and
over-the-counter markets is normally completed at various times before the close
of business on each day on which the New York Stock Exchange (NYSE) is open.
Trading of these securities may not take place on every NYSE business day. In
addition, trading may take place in various foreign markets on Saturdays or on
other days when the NYSE is not open and on which the Fund's share price is not
calculated. Therefore, the value of Bartlett Value International Fund's
portfolio may be significantly affected on days when shares may not be purchased
or redeemed.
Repurchase agreements are valued at cost which approximates market. It is
the policy of each of the Funds that their custodian take possession of the
underlying collateral securities. Collateral is marked-to-market daily to ensure
that the market value of the underlying assets equals or exceeds the value of
the seller's repurchase obligation. In the event of a bankruptcy or other
default of the seller of a repurchase agreement, a Fund could experience both
delays in liquidating the underlying securities and losses. The loss would equal
the amount by which the carrying value of the repurchase agreement(s) exceeded
the proceeds received in liquidation of the underlying collateral securities. To
minimize the possibility of loss, the Funds enter into repurchase agreements
only with institutions deemed to be creditworthy by the Advisor, including banks
that serve as custodian for the Funds, banks having assets in excess of $1
billion or primary government securities dealers.
Structured Securities - Bartlett Basic Value Fund, Bartlett Fixed Income
Fund and Bartlett Short Term Bond Fund may invest in structured securities, a
type of
25
<PAGE> 28
=======================================
NOTES TO FINANCIAL STATEMENTS
=======================================
derivative security, which are derived from securities issued by U.S. government
agencies, or other issuers, and are denominated in U.S. dollars. Structured
securities are privately issued securities. These short maturity notes differ
from traditional debt securities in that the return (principal and/or interest)
is linked to the performance of a diversified array of financial indices.
The Funds use structured securities to add to portfolio diversification to
protect the portfolio against rising interest rates. An investment in structured
securities entails risks not associated with investments in conventional debt
securities. The secondary market for such securities will be affected by factors
independent of the creditworthiness of the issuer and the value of the index,
such as the volatility of the index, time remaining to maturity and the amount
of such securities outstanding.
Foreign Currency Translation - The books and records of each Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) market value of investment securities, other assets and
liabilities--at the daily rate of exchange as reported by a major New York
City bank at 4:00 p.m. Eastern Standard time;
(ii) purchases and sales of investment securities, income and
expenses--at the rate of exchange prevailing on the respective dates of
such transactions.
Futures and Options Accounting Principles - Premiums received from put or
call options written are recorded as an asset with an equal liability which is
marked-to-market daily with any difference between the option's current market
value and premiums received recorded as an unrealized gain or loss. If the
option is not exercised, premiums received are realized as a gain at the
expiration date. If the position is closed prior to expiration, a gain or loss
is realized based on premiums received less the cost of the closing transaction.
When an option is exercised, premiums received are added to the proceeds from
the sale of the underlying securities and a gain or loss is realized
accordingly.
Put and call options purchased are accounted for in the same manner as
portfolio securities. The cost of securities acquired through the exercise of
call options is increased by premiums paid. The proceeds from securities sold
through the exercise of put options are decreased by the premiums paid.
Futures contracts are marked-to market daily with fluctuations in value
settled daily in cash through a margin account. Gains or losses are realized at
the time the contract is closed out or the contract expires.
The primary risks associated with the use of futures contracts and options
are imperfect correlation between the change in market value of securities held
by the Funds and the prices of futures contracts and options, in addition to the
possibility of an illiquid market.
Reverse Repurchase Agreements - Bartlett Basic Value Fund, Bartlett Fixed
Income Fund, Bartlett Short Term Bond Fund and Bartlett Cash Reserves Fund may
enter into reverse repurchase agreements whereby the Funds transfer possession
of a security for cash with the intent to repay cash plus interest in exchange
for the return of the same security at a later date. A Fund's primary objective
in such a transaction would be to obtain funds to pursue additional investment
opportunities whose yield would exceed the cost of the reverse repurchase
transaction.
It is the policy of each of the Funds that their custodian place cash or
U.S. government obligations in a separate account in an amount equal to the
reverse repurchase agreement obligation. When a separate account is maintained
in connection with a reverse repurchase agreement, the securities deposited in
the separate account are valued daily at market for the purpose of determining
the adequacy of the securities in the account. If the market value of such
securities declines, additional cash or securities are placed in the account
daily to maintain the market value of the account equal to the amount of the
reverse repurchase agreement obligation.
Share Valuation - The net asset value per share is calculated daily by
dividing the total value of each Fund's investments and other assets, less
liabilities, by the total number of shares outstanding.
Investment Income and Distributions to Shareholders - Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Distributions to shareholders arising from net investment income for Bartlett
Fixed Income Fund, Bartlett Cash Reserves Fund and Bartlett Short Term Bond Fund
are declared daily and paid to shareholders monthly. Distributions to
shareholders from net investment income for Bartlett Basic Value Fund and
Bartlett Value International Fund are declared and paid quarterly and are
recorded on the ex-dividend date. Net realized capital gains, if any, are
distributed to shareholders at least once a year.
Security Transactions - Security transactions are accounted for on a trade
date basis, which is the date the order to buy or sell is executed. Securities
sold are valued on a specific identification basis.
26
<PAGE> 29
As of March 31, 1995
Securities Purchased on a When-Issued Basis - Securities purchased on a
when-issued or delayed delivery basis may be settled a month or more after the
transaction date. Such securities are subject to market fluctuation during this
period. In the event that the seller fails to deliver the securities, a Fund
could experience a loss to the extent of any appreciation, or a gain to the
extent of any depreciation, in the price of the securities. A Fund will
maintain, in a segregated account with its custodian, cash or U.S. government
securities having an aggregate value at least equal to the amount of such
purchase commitments.
Federal Income Taxes - It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies,
and distributes at least 90% of its taxable net income, the Fund (but not its
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes is made.
In order to avoid imposition of the excise tax created by the Tax Reform
Act of 1986, as amended by the Revenue Act of 1987, it is each Fund's intention
to declare as dividends in each calendar year at least 98% of its net investment
income (earned during the calendar year) and 98% of its net realized capital
gains (earned during the twelve months ended October 31 of the calendar year)
plus undistributed amounts from prior years. Subsequent to October 31, 1994, the
Bartlett Value International Fund recognized net capital losses of $253,272
which, for tax purposes, have been deferred to fiscal 1996 and can be used to
offset future capital gains.
Capital loss carryovers for tax purposes as of March 31, 1995 are as
follows: Bartlett Cash Reserves Fund $96,522, Bartlett Fixed Income Fund
$4,047,747 and Bartlett Short Term Bond Fund $510,375. Such carryovers expire
over varying periods through March 31, 2003. The following amounts are based
upon cost for both financial reporting and federal income tax purposes as of
March 31, 1995:
<TABLE>
<CAPTION>
BARTLETT
BARTLETT BARTLETT BARTLETT SHORT BARTLETT
VALUE BASIC FIXED TERM CASH
INTERNATIONAL VALUE INCOME BOND RESERVES
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Unrealized
appreciation $6,560,827 $20,568,433 $634,642 $78,631 $1,177
Unrealized
depreciation (2,900,196) (2,394,077) (1,178,802) (313,582) (1,782)
-----------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation) $3,660,631 $18,174,356 $(544,160) $(234,951) $(605)
===================================================================================
Federal income
tax cost of
investments $55,012,859 $86,169,609 $90,448,152 $19,763,448 $88,183,678
===================================================================================
</TABLE>
2. Investment Transactions
Investment transactions (excluding short-term securities) are as follows
for the year ended March 31, 1995:
<TABLE>
<CAPTION>
BARTLETT
BARTLETT BARTLETT BARTLETT SHORT BARTLETT
VALUE BASIC FIXED TERM CASH
INTERNATIONAL VALUE INCOME BOND RESERVES
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Purchases of
investment
securities $21,323,235 $23,708,244 $115,838,735 $32,618,920 $1,969,688
===================================================================================
Proceeds
from sales
and maturities
of investment
securities $12,386,134 $31,145,456 $134,547,439 $33,833,833 $12,877,633
===================================================================================
</TABLE>
Information regarding borrowings by the Bartlett Fixed Income Fund under reverse
repurchase agreements during the year ended March 31, 1995 is as follows:
<TABLE>
<S> <C>
Balance outstanding
at March 31, 1995 $ --
Maximum amount outstanding
during the year $11,765,000
Average amount outstanding
during the year $ 255,000
Weighted average interest rate
during the year 4.73%
</TABLE>
The average amount outstanding during the year was calculated by aggregating
borrowings at the end of each day and dividing that sum by the number of days in
the year ended March 31, 1995. The weighted average interest rate during the
year was calculated by dividing the interest on reverse repurchase agreements
for the year by the average amount of borrowings outstanding during the year.
3. Transactions with Affiliates and Related Parties
The Chairman of the Board, President, Secretary, Treasurer, Assistant
Treasurer and Vice-Presidents of the Trusts are shareholders or employees of the
Advisor, registered investment advisor to the Trusts. Bartlett Capital Trust's
and Bartlett Management Trust's investments are managed by the Advisor under the
terms of Management Agreements. Under the Management Agreements, the Advisor
pays all of the expenses of each Fund except brokerage, taxes, interest and
extraordinary expenses. As compensation for investment advisory services and
agreement to pay the above Fund
27
<PAGE> 30
=======================================
NOTES TO FINANCIAL STATEMENTS
=======================================
expenses, each Fund pays the Advisor a fee computed and accrued daily and paid
monthly. The fee for Bartlett Basic Value Fund and Bartlett Fixed Income Fund is
computed at an annual rate of 2% of the average daily net assets of Bartlett
Basic Value Fund and Bartlett Fixed Income Fund up to and including $10,000,000,
1.50% of such assets from $10,000,000 up to and including $30,000,000 and 1% of
such assets in excess of $30,000,000. The fee for Bartlett Basic Value Fund is
determined by applying the above rates to its average daily net assets, and the
remainder of the fee is allocated to Bartlett Fixed Income Fund. The fee for
Bartlett Cash Reserves Fund is computed at an annual rate of .78% of the average
daily net assets of Bartlett Cash Reserves Fund up to and including $500,000,000
and .75% of such assets in excess of $500,000,000. The fee for Bartlett Value
International Fund is computed at an annual rate of 2% of the average daily net
assets of Bartlett Value International Fund up to and including $20,000,000 and
1.75% of such assets from $20,000,000 up to and including $200,000,000 and 1.25%
of such assets in excess of $200,000,000. The fee for Bartlett Short Term Bond
Fund is computed at an annual rate of .85% of the average daily net assets of
Bartlett Short Term Bond Fund. The Advisor earned commissions as broker on
trades of portfolio securities in the following amounts for the year ended March
31, 1995: Bartlett Basic Value Fund $900.
States in which shares of each Fund are offered may impose an expense
limitation based upon net assets. The Management Agreements between Bartlett
Capital Trust and Bartlett Management Trust and the Advisor allow for the
accrual and payment of the investment advisory services expenses not to exceed
the lowest of the applicable expense limitations imposed.
4. Fund Share Transactions
Proceeds and payments on shares of the Funds as shown in the Statements of
Changes in Net Assets are the result of the following share transactions:
<TABLE>
<CAPTION>
BARTLETT BARTLETT BARTLETT
VALUE BASIC FIXED
INTERNATIONAL VALUE INCOME
FUND FUND FUND
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
3/31/95 3/31/94 3/31/95 3/31/94 3/31/95 3/31/94
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Shares sold 3,417,760 1,723,622 5,942,584 5,951,160 3,365,364 5,342,974
Shares issued in
reinvestment of
distributions 217,711 14,206 552,366 158,853 492,992 652,110
-----------------------------------------------------------------------------------------------
3,635,471 1,737,828 6,494,950 6,110,013 3,858,356 5,995,084
Less shares
redeemed (2,663,521) (691,204) (6,153,807) (6,791,433) (5,556,676) (7,807,298)
-----------------------------------------------------------------------------------------------
Net increase
(decrease)
in shares
outstanding 971,950 1,046,624 341,143 (681,420) (1,698,320) (1,812,214)
===============================================================================================
</TABLE>
<TABLE>
<CAPTION>
BARTLETT
SHORT BARTLETT
TERM CASH
BOND RESERVES
FUND FUND
YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED
3/31/95 3/31/94(a) 3/31/95 3/31/94
==========================================================================
<S> <C> <C> <C> <C>
Shares sold 3,502,434 2,428,925 367,680,400 378,988,776
Shares issued in
reinvestment of
distributions 85,957 8,279 3,115,274 1,752,947
--------------------------------------------------------------------------
3,588,391 2,437,204 370,795,674 380,741,723
Less shares
redeemed (3,787,573) (194,752) (358,112,926) (369,003,477)
--------------------------------------------------------------------------
Net increase
(decrease)
in shares
outstanding (199,182) 2,242,452 12,682,748 11,738,246
==========================================================================
</TABLE>
(a) From the start of business (February 4, 1994) through March 31, 1994.
28
<PAGE> 31
========================================
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
========================================
To the Shareholders and Boards of Trustees of the
Bartlett Capital Trust and the Bartlett Management Trust:
We have audited the accompanying statements of assets and liabilities of the
Bartlett Value International Fund, Bartlett Basic Value Fund, Bartlett Fixed
Income Fund and Bartlett Short Term Bond Fund of the Bartlett Capital Trust (a
Massachusetts business trust) and the Bartlett Cash Reserves Fund of the
Bartlett Management Trust (an Ohio business trust), including the portfolios of
investments, as of March 31, 1995, and the related statements of operations, the
statements of changes in net assets, and the financial highlights for the
periods indicated thereon. These financial statements and financial highlights
are the responsibility of the Trusts' 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 audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1995, by correspondence with the custodians 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
Bartlett Value International Fund, Bartlett Basic Value Fund, Bartlett Fixed
Income Fund and Bartlett Short Term Bond Fund of the Bartlett Capital Trust and
the Bartlett Cash Reserves Fund of the Bartlett Management Trust as of March 31,
1995, the results of their operations, the changes in their net assets, and the
financial highlights for the periods indicated thereon in conformity with
generally accepted accounting principles.
Cincinnati, Ohio, ARTHUR ANDERSEN LLP
April 25, 1995
29
<PAGE> 32
========================================
TRUSTEES AND OFFICERS
========================================
<TABLE>
<S> <C>
Dale H. Rabiner, CFA Chairman of the Board,
Bartlett Capital Trust
James B. Reynolds, CFA Chairman of the Board,
Bartlett Management Trust
Lorrence T. Kellar Trustee
Group Vice President,
The Kroger Co.
Philip J. Ringo Trustee
Chairman/CEO,
Morgan Drive Away, Inc.
Alan R. Schriber Trustee
President, ARS Broadcasting Corp.
William P. Sheehan Trustee
Member, State of Ohio
Employment Relations Board
George J. Wile Trustee
CEO, Planet Products Corp.
Carol D. Hard President
James F. Lummanick, Esq. Secretary
Thomas A. Steele, CPA Treasurer
Kenneth L. Schlachter, CFA Assistant Treasurer
R. Stuart Crickmer, CFA, CPA Vice President
Madelynn M. Matlock, CFA Vice President
James A. Miller, CFA Vice President
Donna M. Prieshoff Vice President
Troy R. Snider Vice President
Woodrow H. Uible, CFA Vice President
--------------------------------------------------------------------------------
Investment Advisor Bartlett & Co.
36 East Fourth Street,
Cincinnati, Ohio 45202
Custodians Provident Bank
One East Fourth Street,
Cincinnati, Ohio 45202
Mitsubishi Global Custody, a division of
the Bank of California
475 Sansome Street,
San Francisco, California 94111
Transfer Agent Bartlett & Co.
36 East Fourth Street,
Cincinnati, Ohio 45202
Auditors Arthur Andersen & Co.
425 Walnut Street,
Cincinnati, Ohio 45202
Legal Counsel Brown, Cummins & Brown Co., LPA
3500 Carew Tower,
Cincinnati, Ohio 45202
--------------------------------------------------------------------------------
</TABLE>
BARTLETT & CO.
------------------------------
REGISTERED INVESTMENT ADVISORS
36 East Fourth Street, Cincinnati, OH 45202-3896
- 513-621-4612 - 800-800-4612 - FAX 513-621-6462
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BARTLETT
CAPITAL TRUST AND BARTLETT MANAGEMENT TRUST ANNUAL REPORT FOR THE YEAR ENDED
MARCH 31,1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000750006
<NAME> BARTLETT MANAGEMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> BARTLETT CASH RESERVES FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 87,812,326
<INVESTMENTS-AT-VALUE> 88,183,073
<RECEIVABLES> 2,117,475
<ASSETS-OTHER> 823
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 90,301,371
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 129,085
<TOTAL-LIABILITIES> 129,085
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 90,269,413
<SHARES-COMMON-STOCK> 90,269,413
<SHARES-COMMON-PRIOR> 77,586,665
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (96,522)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (605)
<NET-ASSETS> 90,172,286
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,890,626
<OTHER-INCOME> 0
<EXPENSES-NET> 614,397
<NET-INVESTMENT-INCOME> 3,276,229
<REALIZED-GAINS-CURRENT> (81,479)
<APPREC-INCREASE-CURRENT> 13,459
<NET-CHANGE-FROM-OPS> 3,208,209
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,276,229
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 367,680,400
<NUMBER-OF-SHARES-REDEEMED> 358,112,926
<SHARES-REINVESTED> 3,115,274
<NET-CHANGE-IN-ASSETS> 12,614,728
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (15,043)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 614,397
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 614,397
<AVERAGE-NET-ASSETS> 78,768,846
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.78
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BARTLETT
CAPITAL TRUST AND BARTLETT MANAGEMENT TRUST ANNUAL REPORT FOR THE YEAR ENDED
MARCH 31,1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000710434
<NAME> BARTLETT CAPITAL TRUST
<SERIES>
<NUMBER> 1
<NAME> BARTLETT BASIC VALUE FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 86,076,186
<INVESTMENTS-AT-VALUE> 104,343,965
<RECEIVABLES> 237,202
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 104,581,176
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,860,258
<TOTAL-LIABILITIES> 1,860,258
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 83,024,401
<SHARES-COMMON-STOCK> 6,673,071
<SHARES-COMMON-PRIOR> 6,331,928
<ACCUMULATED-NII-CURRENT> 22,163
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,499,998
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,174,356
<NET-ASSETS> 102,720,918
<DIVIDEND-INCOME> 2,231,163
<INTEREST-INCOME> 710,815
<OTHER-INCOME> 0
<EXPENSES-NET> 1,173,808
<NET-INVESTMENT-INCOME> 1,768,170
<REALIZED-GAINS-CURRENT> 4,359,075
<APPREC-INCREASE-CURRENT> 5,759,310
<NET-CHANGE-FROM-OPS> 11,886,555
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,765,417
<DISTRIBUTIONS-OF-GAINS> 6,700,292
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,942,584
<NUMBER-OF-SHARES-REDEEMED> 6,153,807
<SHARES-REINVESTED> 552,366
<NET-CHANGE-IN-ASSETS> 8,432,262
<ACCUMULATED-NII-PRIOR> 19,410
<ACCUMULATED-GAINS-PRIOR> 3,841,215
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,173,808
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,173,808
<AVERAGE-NET-ASSETS> 97,753,000
<PER-SHARE-NAV-BEGIN> 14.89
<PER-SHARE-NII> .27
<PER-SHARE-GAIN-APPREC> 1.53
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> 1.03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.39
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BARTLETT
CAPITAL TRUST AND BARTLETT MANAGEMENT TRUST ANNUAL REPORT FOR THE YEAR ENDED
MARCH 31,1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000710434
<NAME> BARTLETT CAPITAL TRUST
<SERIES>
<NUMBER> 2
<NAME> BARTLETT FIXED INCOME FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 90,481,163
<INVESTMENTS-AT-VALUE> 89,903,992
<RECEIVABLES> 1,615,232
<ASSETS-OTHER> 472
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 91,519,696
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170,238
<TOTAL-LIABILITIES> 170,238
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 95,941,365
<SHARES-COMMON-STOCK> 9,418,434
<SHARES-COMMON-PRIOR> 11,116,754
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,047,747)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (544,160)
<NET-ASSETS> 91,349,458
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 6,590,664
<OTHER-INCOME> 0
<EXPENSES-NET> 998,750
<NET-INVESTMENT-INCOME> 5,591,914
<REALIZED-GAINS-CURRENT> (3,280,414)
<APPREC-INCREASE-CURRENT> (407,515)
<NET-CHANGE-FROM-OPS> 1,903,985
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,591,914
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,365,364
<NUMBER-OF-SHARES-REDEEMED> 5,556,676
<SHARES-REINVESTED> 492,992
<NET-CHANGE-IN-ASSETS> (20,064,313)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (767,333)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 998,750
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 998,750
<AVERAGE-NET-ASSETS> 99,875,000
<PER-SHARE-NAV-BEGIN> 10.02
<PER-SHARE-NII> .54
<PER-SHARE-GAIN-APPREC> (.32)
<PER-SHARE-DIVIDEND> .54
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.70
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 255,000
<AVG-DEBT-PER-SHARE> 0.02
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BARTLETT
CAPITAL TRUST AND BARTLETT MANAGEMENT TRUST ANNUAL REPORT FOR THE YEAR ENDED
MARCH 31,1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000710434
<NAME> BARTLETT CAPITAL TRUST
<SERIES>
<NUMBER> 3
<NAME> BARTLETT VALUE INTERNATIONAL FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 55,021,130
<INVESTMENTS-AT-VALUE> 58,673,490
<RECEIVABLES> 266,341
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 58,939,831
<PAYABLE-FOR-SECURITIES> 1,237,483
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 38,635
<TOTAL-LIABILITIES> 1,276,118
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54,245,228
<SHARES-COMMON-STOCK> 4,952,364
<SHARES-COMMON-PRIOR> 3,980,414
<ACCUMULATED-NII-CURRENT> 11,126
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 253,272
<ACCUM-APPREC-OR-DEPREC> 3,660,631
<NET-ASSETS> 57,663,713
<DIVIDEND-INCOME> 1,151,637
<INTEREST-INCOME> 322,960
<OTHER-INCOME> 0
<EXPENSES-NET> 1,025,125
<NET-INVESTMENT-INCOME> 449,472
<REALIZED-GAINS-CURRENT> 2,425,836
<APPREC-INCREASE-CURRENT> (3,917,520)
<NET-CHANGE-FROM-OPS> (1,042,212)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 438,346
<DISTRIBUTIONS-OF-GAINS> 2,727,131
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,417,760
<NUMBER-OF-SHARES-REDEEMED> 2,663,521
<SHARES-REINVESTED> 217,711
<NET-CHANGE-IN-ASSETS> 8,056,633
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 48,023
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,025,125
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,025,125
<AVERAGE-NET-ASSETS> 56,100,880
<PER-SHARE-NAV-BEGIN> 12.46
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> (.21)
<PER-SHARE-DIVIDEND> .09
<PER-SHARE-DISTRIBUTIONS> .61
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.64
<EXPENSE-RATIO> 1.83
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BARTLETT
CAPITAL TRUST AND BARTLETT MANAGEMENT TRUST ANNUAL REPORT FOR THE YEAR ENDED
MARCH 31,1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000710434
<NAME> BARTLETT CAPITAL TRUST
<SERIES>
<NUMBER> 4
<NAME> BARTLETT SHORT TERM BOND FUND
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1994
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 19,798,998
<INVESTMENTS-AT-VALUE> 19,528,497
<RECEIVABLES> 248,270
<ASSETS-OTHER> 485
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,777,252
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29,151
<TOTAL-LIABILITIES> 29,151
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,493,427
<SHARES-COMMON-STOCK> 2,043,270
<SHARES-COMMON-PRIOR> 2,242,452
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (510,375)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (234,951)
<NET-ASSETS> 19,748,101
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,383,918
<OTHER-INCOME> 0
<EXPENSES-NET> 190,629
<NET-INVESTMENT-INCOME> 1,193,289
<REALIZED-GAINS-CURRENT> (497,579)
<APPREC-INCREASE-CURRENT> (127,141)
<NET-CHANGE-FROM-OPS> 568,569
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,193,289
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,502,434
<NUMBER-OF-SHARES-REDEEMED> 3,787,573
<SHARES-REINVESTED> 85,957
<NET-CHANGE-IN-ASSETS> (2,540,000)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (12,796)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 190,629
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 190,629
<AVERAGE-NET-ASSETS> 22,300,000
<PER-SHARE-NAV-BEGIN> 9.94
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> (.28)
<PER-SHARE-DIVIDEND> .53
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.66
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
