<PAGE>
- ---------------------------------------------------------------
mutual funds
- ---------------------------------------------------------------
Bartlett
Annual Report
December 31, 1999
BARTLETT
BASIC VALUE FUND
BARTLETT
VALUE INTERNATIONAL FUND
<PAGE>
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BARTLETT & CO. PROFILE
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[Bartlett Logo] Bartlett & Co., headquartered in Cincinnati, Ohio, is an asset
management firm which manages $2.8 billion for individuals,
family groups and institutions. Established in 1898, Bartlett &
Co. has built a reputation among individual and institutional investors of
strong performance and superior client service for the last century.
Bartlett & Co. offers its clients a diversity of services through four business
divisions:
. Mutual Funds
. Institutional Client Services
. Private Client Services
. Real Estate Programs
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>
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CONTENTS
Pages
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Bartlett & Co. Profile Inside Cover
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President's Letter 2
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Reports to Shareholders
Bartlett Basic Value Fund 4
Bartlett Value International Fund 9
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Growth of a $10,000 Investment 12
Bartlett Basic Value Fund 13
Bartlett Value International Fund 15
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Industry Diversification 17
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Statements of Net Assets
Bartlett Basic Value Fund 18
Bartlett Value International Fund 21
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Statements of Operations 25
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Statements of Changes in Net Assets
Bartlett Basic Value Fund 26
Bartlett Value International Fund 27
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Financial Highlights
Bartlett Basic Value Fund 28
Bartlett Value International Fund 30
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Notes to Financial Statements 32
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Report of Independent Accountants 42
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Trustees and Officers Back Cover
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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.
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<PAGE>
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PRESIDENT'S LETTER
-------------------------------------
Dear Shareholder,
We are pleased to provide you with the annual report for the Bartlett Capital
Trust, comprised of the Bartlett Basic Value Fund and the Bartlett Value
International Fund, covering the year ended December 31, 1999.
Value-oriented funds had one of their worst years in 1999, extending a period of
underperformance versus funds which have focused on growth or, in particular, on
technology. During 1999, a fund's relative over- or underperformance was
dependent on the fund's exposure to technology, as the market's return was
heavily skewed toward that sector. The NASDAQ, which includes many technology
stocks, returned 86% for the year and had the best return ever posted by an
index in the history of the market. However, this masks the concentration of
performance in just a few stocks. Half of the NASDAQ Composite's stocks were
down for the year, while the median return of the Composite was only slightly
positive. Similarly, although the S&P 500 was up 21% for the year, if technology
stocks were excluded, its return would have been only 2%. The performance of
Bartlett Basic Value, which is underweight technology stocks, suffered from its
underweighting this sector. We at Bartlett recognize the fundamental changes
that are occurring in the marketplace. We invest in technology stocks when we
find reasonable valuations and good prospects for future performance.
On the other hand, international stocks, in particular emerging markets stocks,
rebounded significantly from the lows reached during the fourth quarter of 1998.
Bartlett Value International performed well, with a total return for the year
ended December 31, 1999, of 32.02% (Class A shares, excluding the maximum 4.75%
sales charge), which exceeded the EAFE Index's return of +26.96% for the same
period.
On the following pages, Woody Uible and Jim Miller, portfolio managers for
Basic Value, and Madelynn Matlock, portfolio manager for Value International,
discuss each Fund's performance and the investment outlook.
PricewaterhouseCoopers LLP, the Funds' independent accountants, has completed
its annual examination, and audited financial statements for the year ended
December 31, 1999, are included in this report.
2
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We are pleased to report that Bartlett & Co., its parent Legg Mason, Inc., and
its broker affiliates have made a seamless transition into the new century. All
critical internal and external systems are operating free of Y2K disruptions.
Internal and external operations, including the Funds' custodian and transfer
agency, are also running smoothly, and Fund shareholders are receiving
uninterrupted account maintenance and transaction support.
The Board of Trustees approved the following dividends and distributions per
share, which were paid to shareholders of record on November 12th and November
26th for Basic Value:
<TABLE>
<CAPTION>
Class A Class C Class Y
<S> <C> <C> <C>
Ordinary Income Dividend $0.083 $0.005 $0.109
Long-Term Capital Gain Distribution $2.650 $2.650 $2.650
</TABLE>
As always, we appreciate your support and welcome your comments or questions.
Sincerely,
/s/ Edward A. Taber, III
------------------------
Edward A. Taber, III
President
3
<PAGE>
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BARTLETT BASIC VALUE FUND REPORT
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<TABLE>
<CAPTION>
Quarter Year
Ended Ended
12/31/99 12/31/99
-------- --------
<S> <C> <C>
Basic Value Fund/1/ 5.9% (5.7)%
S&P 500 Index (large-cap) 14.9% 21.0%
BARRA Value Index/2/ 9.0% 12.7%
BARRA Mid-Cap Value Index 7.3% 2.3%
Russell 2000 Value Index (small-cap) 1.5% (1.5)%
</TABLE>
[Bartlett Logo] The stock market averages ended the year at record high levels
following a fourth quarter rally. Thus, the twentieth century
ended with five consecutive years of 20% or greater market
appreciation as measured by the Standard & Poor's 500 Index (S&P 500). The
venerable Dow Jones Industrial Average tripled during this remarkable five-year
stretch, rising from 3,800 to 11,500! Unfortunately, we failed to keep pace with
the popular market indices during the past year as the gap in performance
between growth and value stocks continued at unprecedented levels.
While results of the major averages suggest another bullish year, the
statistics are misleading. Most stocks actually declined in 1999. As reported by
The New York Times, nearly two-thirds of stocks listed on the NYSE and NASDAQ
composites finished the year down 20% from their peak prices. The reported
market gains were driven by relatively few stocks, with technology companies and
a few blue chips in the vanguard. In fact, the largest fifty companies in the
S&P 500 had an average return of 106% while the smallest 200 averaged a loss of
5%. Meanwhile, rising interest rates pressured bond prices, which caused the
performance of long-maturity Treasury bonds to suffer their second worst annual
return since 1973.
We continue to maintain the same investment discipline as we have since the
Fund's inception. During this time, our Fund results stack up
- ---------------
/1/ Reflects return on Class A shares, excluding the 4.75% maximum sales charge
effective July 21, 1997. Return information for the other share classes may
be found on pages 13 and 14.
/2/ The BARRA Value Index is a capitalization-weighted index constructed by
dividing the stocks in the S&P 500 Index into two components (growth or
value) according to book-to-price ratios. The BARRA Value Index is
comprised of companies with higher book-to-price ratios, lower price-to-
earnings ratios, higher dividend yields, and lower historical and predicted
earnings growth.
4
<PAGE>
pretty well in spite of a challenging 1998 and 1999. As you know, we like to
purchase good companies at attractive prices, usually buying when industry
conditions are difficult or when fine companies are experiencing temporary
problems. We make decisions after careful analysis and assessment of a company's
intrinsic value. Recently, we have purchased Pharmacia & UpJohn, Johnson &
Johnson, Cintas, BroadWing, IBM and MCI WorldCom as we believe their solid
growth prospects can be acquired at a reasonable multiple of earnings. While the
projected and historical growth rate of stocks in our portfolios is slightly
below the market (S&P 500), the price/earnings ratio of these same companies is
about one-third lower. Once a position in a company is established, our strategy
is to wait for the market to recognize the gap between current market price and
our estimate of its intrinsic value. Assuming the gap between market price and
intrinsic value closes, stock positions are reduced and eventually eliminated
from the portfolio, to be replaced by better values. This focus on value can
lead to portfolios significantly different from the major indices. Our goal is
stay focused on our investment discipline -- not to replicate or shadow the
index. This approach, while rewarding from a risk and return standpoint over the
long term, can produce portfolio composition and results that are very different
from the indices over shorter periods of time. This past calendar year was an
example of how our short-term results can vary from the market. Currently we
find compelling values, and consequently overweightings, in financial services
and transportation stocks. Examples include Citigroup, Charter One Financial,
Fannie Mae, Union Pacific, and AMR.
One of our major industry underweightings over the past few years has been
technology, and this report would be deficient without addressing this sector.
As of year end, our technology weighting approximated 11%, versus 11% of the
BARRA Value Index and 29% of the S&P 500. This sector difference accounts for a
substantial part of our performance shortfall, given the fact that most of the
popular market indices have been largely influenced by a handful of strong
performing technology stocks. Our technology weighting is low by design because
when we buy companies we must feel secure in the knowledge that long-term growth
of revenues, earnings and cash flow will propel increasing valuations. We quite
frankly fail to understand how anyone could feel "secure" buying into relatively
unproven companies with little or no revenues, earnings or cash flow. As with
prior periods of speculation -- the "Nifty-Fifty" period of the early '70s,
energy stocks in the late '70s, or the biotech frenzy in the early '80s -- we
think the safest place is the sidelines. However, we do strongly believe in the
transforming power of technology and have long-term investments in fine
companies that we expect to participate. We simply believe that business
performance and stock valuation have to be reasonable.
5
<PAGE>
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BARTLETT BASIC VALUE FUND REPORT
(CONTINUED)
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As we look to 2000, we are heartened by the fundamental performance of our
portfolios. Many stocks are providing excellent dividend increases and
aggressively repurchasing stock, both of which are indicative of strong company
performance. Over long periods of time, stock prices parallel earnings and
dividend growth, so these business results are most encouraging. The
diversification of the portfolio is likewise reassuring, and we think the
comparatively lower valuations of these investments will help limit risk in the
event of any market setback. You can be assured that the investment team at
Bartlett continues to search for solid businesses at attractive valuations. We
believe our value-oriented investment style is very well positioned and we are
enthusiastic about the return potential of our holdings in the year ahead.
We certainly appreciate your trust, and will work hard to merit your
continuing confidence.
/s/ Woodrow H. Uible /s/ James A. Miller
- --------------------- --------------------
Woodrow H. Uible, CFA James A. Miller, CFA
6
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Measuring Both Risk and Return
Bartlett Basic Value Fund vs. Standard & Poor's 500 Index
May 31, 1983 to December 31, 1999
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Bartlett
Basic S&P
Value 500
Fund Index
Return 11.5%* 17.6%
Risk -12.1% -14.6%
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 31, 1983 to December 31, 1999. The S&P 500
Index is an unmanaged index of common stocks widely used as a measure of stock
market activity. The return for the Index does not include any expenses or
transaction costs. The return for the Fund includes such expenses and costs.
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 for both the Fund and the Index 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.
- --------------------------------------------------------------------------------
*Reflects return on Class A shares, excluding the 4.75% maximum sales charge
effective July 21, 1997. Return information for the other share classes may be
found on pages 13 and 14.
7
<PAGE>
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BARTLETT BASIC VALUE FUND REPORT
(CONTINUED)
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- ------------------------------------------------------------------------------
Largest Industry Allocations
Bartlett Basic Value Fund vs. Standard & Poor's 500 Index
December 31, 1999
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Percent of Total Portfolio Fund S&P 500
Finance 21% 13%
Transportation 11% 1%
Consumer Cyclical 9% 9%
Basic Industry 11% 11%
Health 9% 9%
Technology/Defense 22% 31%
- ------------------------------------------------------------------------------
8
<PAGE>
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BARTLETT VALUE INTERNATIONAL
FUND REPORT
--------------------------------------------------------
Quarter Year
Ended Ended
12/31/99 12/31/99
-------- --------
Value International Fund/1/ 11.6% 32.0%
MSCI EAFE Index/2/ 17.0% 27.0%
MSCI All-Country ex-U.S. Index/3/ 17.8% 29.7%
[Bartlett Logo] For overseas markets, 1999 was about as different from its
predecessor 1998 as it could be. Asian markets woke from their
bad dream of the previous two years, with strong market
performance that reflected the solid economic rebound across the Pacific region.
The utter confidence that accompanied Europe's daring monetary initiative as
1999 began was dented by a steady weakening of the new Euro currency as the year
progressed. Japan's slow but steady reorganization into a more modern economy
sparked a positive response in both stocks and the yen. Commodity stocks claimed
an unaccustomed spot as price leaders, along with other cyclical companies.
Across the globe, technology stock valuations grew to reflect the increasing
certainty that the tools are in place to radically change the way we live and do
business.
Asian stocks led the way in 1999 for the Europe, Australia and Far East Index,
which increased by 27% on a fourth quarter surge of 17%. European stocks just
paced the index, while Pacific and Japanese stocks did far better. Across all
markets, technology and telecommunications company shares posted the strongest
gains, while previous years' winners like pharmaceuticals, branded consumer
goods and financials suffered
- ------------------
/1/ Reflects return on Class A shares, excluding the 4.75% maximum sales charge
effective July 21, 1997. Return information for the other share classes may
be found on page 16.
/2/ The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE) Index is an unmanaged index of common stocks of foreign companies.
The returns for the Index do not include any transaction costs associated
with buying and selling securities in the Index or other administrative
expenses. The returns for the Fund include such expenses.
/3/ The Morgan Stanley Capital International (MSCI) All-Country ex-U.S. Index
is composed of 21 developed markets countries, 26 emerging markets
countries and the countries of Israel and Luxembourg. The index does not
include the United States.
9
<PAGE>
--------------------------------------------------------
BARTLETT VALUE INTERNATIONAL
FUND REPORT (CONTINUED)
--------------------------------------------------------
from neglect. Renewed demand for basic materials and rising oil prices boosted
earnings and share prices in commodity-related shares.
Bartlett Value International Fund has performed well versus the MSCI EAFE
Index, reflecting price increases in holdings of commodity-related companies, as
well as beneficiaries of the growth in technology. An exposure to Asian markets
that is higher than the index, as well as a significant weighting in Japan, also
boosted returns.
Rio Tinto, a British/Australian mining company, the Korean steel producer
Pohang, and TotalFina, the French oil giant, were among the commodity-oriented
stocks which produced gains for 1999. Japanese technology firms like Fujitsu and
Rohm, as well as Canadian-based Nortel Networks, were also very strong
contributors. Stocks that did not keep pace included National Australia Bank,
Cadbury Schweppes, the U.K. candy and beverage maker, and CNH Global, the result
of the merger of agricultural and construction equipment makers Case and New
Holland.
The U.S. economy continues to lead the way for the rest of the world in terms
of strong growth, but Europe and Asia are picking up the pace and still have
unrealized potential in an increasingly good global economic picture.
Restructuring, solid growth prospects and reasonable stock valuations are a firm
foundation for including non-U.S. investments in a diversified portfolio.
/s/ Madelynn M. Matlock
-----------------------
Madelynn M. Matlock, CFA
Portfolio Manager
10
<PAGE>
- ----------------------------------------------------------------------
Portfolio Composition
Bartlett Value International Fund vs.
MSCI EAFE Index*
December 31, 1999
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Percent of Total Portfolio Fund EAFE Index
Americas 14% 0%
Latin America 2%
Canada 6%
Cash Equivalents 5%
United States 1%
Europe 53% 67%
Pacific 33% 33%
Japan 22% 27%
- ----------------------------------------------------------------------
*The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE)Index is an unmanaged index of common stocks of foreign companies.
11
<PAGE>
---------------------------------------
GROWTH OF A $10,000 INVESTMENT
---------------------------------------
[Bartlett Logo] The following graphs compare each Fund's total return against
that of a closely matched, broad-based securities market index.
These performance tables and charts represent past performance
and are no guarantee of future results. The investment return and principal
value of the Funds will fluctuate so that upon redemption, you may receive more
or less than your original cost.
The charts illustrate the cumulative total return of an initial $10,000
investment in each Fund for the periods indicated. The returns reflected in the
chart for Class A shares reflect the maximum sales charge of 4.75% (the Average
Annual Total Return table within each Class A chart provides information both
including and excluding the effect of the maximum sales charge). A contingent
deferred sales charge may be imposed under certain circumstances on Class A and
C shares. Please refer to the prospectus for details. The performance tables and
charts assume all dividends and distributions are reinvested at the net asset
value on the reinvestment date and reflect the periodic absorption of some Fund
expenses through the waiver of management fees. Had a portion of these fees not
been waived, the Funds' total returns would have been slightly lower.
The lines representing the securities market indices (which is, in each case, an
unmanaged index) do not include any transaction costs or other administrative
expenses associated with buying and selling securities in the index.
12
<PAGE>
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Bartlett Basic Value Fund Class A Shares
December 31, 1989 through December 31, 1999
-----------------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
-----------------------------------------------------------
1 Year 3 Years 5 Years 10 Years
-----------------------------------------------------------
(5.73)%* 8.19%* 14.55%* 10.75%*
(10.19)% 6.45% 13.45% 10.21%
-----------------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Basic Value Fund
S&P 500 Class A Shares
Index 9,500**
12/31/89 $10,000.00 $ 9,525.00
12/31/90 $ 9,690.00 $ 8,610.19
12/31/91 $12,642.00 $10,845.61
12/31/92 $13,605.00 $11,956.12
12/31/93 $14,976.00 $13,349.56
12/31/94 $15,174.00 $13,403.58
12/31/95 $20,876.00 $17,633.15
12/31/96 $25,669.00 $20,880.32
12/31/97 $34,233.00 $27,032.23
12/31/98 $44,016.00 $28,048.18
12/31/99 $53,278.00 $26,436.00
- ------------------------------------------------------------------------------
*This line reflects return information on Class A shares excluding the maximum
4.75% sales charge which became effective July 21, 1997. The second line in the
table reflects return information including the sales charge.
**The initial investment for Basic Value Fund Class A shares is net of the 4.75%
sales charge.
- ------------------------------------------------------------------------------
Bartlett Basic Value Fund Class C Shares
September 12, 1997 through December 31, 1999
- ----------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
- ----------------------------------------------------
1 Year Life of the Fund
(since 9/12/97)
- ----------------------------------------------------
(6.44)% 0.94%
- ----------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Basic Value Fund
S&P 500 Index* Class C Shares
9/12/97 10,000.00 10,000.00
9/30/97 10,548.00 10,381.00
12/31/97 10,850.00 10,607.00
3/31/98 12,364.00 11,654.00
6/30/98 12,772.00 11,224.00
9/30/98 11,502.00 9,501.00
12/31/98 13,951.00 10,921.00
3/31/99 14,647.00 10,485.00
6/30/99 15,681.00 11,101.00
9/30/99 14,700.00 9,672.00
12/31/99 16,887.00 10,218.00
- ------------------------------------------------------------------------------
* Index returns are for the periods beginning August 31, 1997.
The Standard & Poor's 500 Index is a broad-based, unmanaged index of common
stocks commonly used to measure general stock market activity.
13
<PAGE>
------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
(CONTINUED)
------------------------------------------------
- -----------------------------------------------------------------------------
Bartlett Basic Value Fund Class Y Shares
August 15, 1997 through December 31, 1999
- -----------------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
- -----------------------------------------------------------
1 Year Life of the Fund
(since 8/15/97)
- -----------------------------------------------------------
(5.51)% 3.02%
- -----------------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Basic Value Fund
S&P 500 Index Class Y Shares
8/15/97 $10,000.00 $10,000.00
9/30/97 $ 9,957.00 $10,651.00
12/31/97 $10,242.00 $10,922.00
3/31/98 $11,671.00 $12,022.00
6/30/98 $12,057.00 $11,623.00
9/30/98 $10,857.00 $ 9,860.00
12/31/98 $13,170.00 $11,359.00
3/31/99 $13,826.00 $10,937.00
6/30/99 $14,802.00 $11,605.00
9/30/99 $13,876.00 $10,136.00
12/31/99 $15,941.00 $10,733.00
- -----------------------------------------------------------------------------
The Standard & Poor's 500 Index is a broad-based, unmanaged index of common
stocks commonly used to measure general stock market activity. Index returns are
for the periods beginning July 31, 1997.
14
<PAGE>
- -----------------------------------------------------------------------------
Bartlett Value International Fund Class A Shares
December 31, 1989 through December 31, 1999
---------------------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
---------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years
---------------------------------------------------------------
32.02%* 10.82%* 11.51%* 8.67%*
25.79% 9.03% 10.43% 8.15%
---------------------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Value International Fund
Class A Shares
MSCI EAFE Index $9,500**
12/31/89 $10,000.00 $ 9,525.00
12/31/90 $ 7,655.00 $ 8,142.03
12/31/91 $ 8,584.00 $ 9,891.94
12/31/92 $ 7,539.00 $ 9,710.72
12/31/93 $ 9,993.00 $12,754.91
12/31/94 $10,771.00 $12,687.92
12/31/95 $11,978.00 $13,849.23
12/31/96 $12,702.00 $16,072.23
12/31/97 $12,928.00 $17,059.17
12/31/98 $15,513.00 $16,568.63
12/31/99 $19,696.00 $21,883.00
- -----------------------------------------------------------------------------
*This line reflects return information on Class A shares excluding the maximum
4.75% sales charge which became effective July 21, 1997. The second line in the
table reflects return information including the sales charge.
**The initial investment for Value International Fund Class A shares is net of
the 4.75% sales charge.
The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE) Index is a broad-based, unmanaged index 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.
15
<PAGE>
---------------------------------------------
GROWTH OF A $10,000 INVESTMENT
(CONTINUED)
---------------------------------------------
- ------------------------------------------------------------------------------
Bartlett Value International Fund Class C Shares
July 23, 1997 through December 31, 1999
------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
------------------------------------------------
1 Year Life of the Fund
(since 7/23/97)
------------------------------------------------
31.04% 4.95%
------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
Value International Fund
MSCI EAFE Index* Class C Shares
7/23/97 $10,000.00 $10,000.00
9/30/97 $ 9,772.00 $10,070.00
12/31/97 $ 9,006.00 $ 8,913.00
3/31/98 $10,331.00 $ 9,601.00
6/30/98 $10,441.00 $ 9,130.00
9/30/98 $ 8,957.00 $ 7,618.00
12/31/98 $10,807.00 $ 8,588.00
3/31/99 $10,958.00 $ 8,755.00
6/30/99 $11,236.00 $ 9,568.00
9/30/99 $11,729.00 $10,101.00
12/31/99 $13,721.00 $11,254.00
- ------------------------------------------------------------------------------
* Index returns are for the periods beginning July 31, 1997.
- ------------------------------------------------------------------------------
Bartlett Value International Fund Class Y Shares
August 15, 1997 through December 31, 1999
----------------------------------------------------
Average Annual Total Returns
For periods ended December 31, 1999
----------------------------------------------------
1 Year Life of the Fund
(since 8/15/97)
----------------------------------------------------
32.25% 5.91%
----------------------------------------------------
[CHART APPEARS HERE -- SEE PLOT POINTS BELOW]
MSCI EAFE Index* Value International Fund
8/15/97 $10,000.00 $10,000.00
9/30/97 $ 9,772.00 $10,045.00
12/31/97 $ 9,006.00 $ 8,906.00
3/31/98 $10,331.00 $ 9,621.00
6/30/98 $10,441.00 $ 9,173.00
9/30/98 $ 8,957.00 $ 7,671.00
12/31/98 $10,807.00 $ 8,670.00
3/31/99 $10,958.00 $ 8,860.00
6/30/99 $11,236.00 $ 9,701.00
9/30/99 $11,729.00 $10,268.00
12/31/99 $13,721.00 $11,466.00
- ------------------------------------------------------------------------------
*Index returns are for the periods beginning July 31, 1997.
The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE) Index is a broad-based, unmanaged index 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.
16
<PAGE>
--------------------------------------
INDUSTRY DIVERSIFICATION
--------------------------------------
Bartlett Value International Fund
December 31, 1999
<TABLE>
<CAPTION>
% of Net Assets Market Value
- ----------------------------------------------------------------------------
(000)
<S> <C> <C>
Automotive 4.4% $ 2,161
Banking 10.5 5,130
Chemicals 2.7 1,310
Computer Services 3.7 1,824
Construction 6.5 3,173
Consumer Durable Goods 11.7 5,714
Diversified 8.1 3,972
Electronics 7.6 3,690
Investment Companies 0.9 463
Media/Broadcast 1.1 539
Metals & Mining 5.6 2,722
Miscellaneous Services 3.8 1,843
Oil & Gas 6.9 3,374
Pharmaceuticals 1.5 720
Real Estate 1.9 935
Retail Sales 6.1 2,960
Telecommunications 7.3 3,544
Transportation 4.9 2,370
Short-Term Investments 4.8 2,331
----- -------
Total Investment Portfolio 100.0 48,775
Other Assets Less Liabilities N.M. 10
----- -------
Net Assets 100.0% $48,785
----- -------
</TABLE>
________
N.M. -- Not meaningful.
17
<PAGE>
-------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------
Bartlett Basic Value Fund
December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Common Stocks and Equity Interests -- 96.7%
- ----------------------------------------------------------------------------
Advertising/Media -- 3.1%
Time Warner, Inc. 32 $ 2,318
- ----------------------------------------------------------------------------
Aerospace/Defense -- 2.0%
Lockheed Martin Corporation 68 1,488
- ----------------------------------------------------------------------------
Automotive -- 3.6%
Ford Motor Company 50 2,672
- ----------------------------------------------------------------------------
Banking -- 2.3%
Mellon Financial Corporation 50 1,703
- ----------------------------------------------------------------------------
Computer Services and Systems -- 6.7%
Intel Corporation 34 2,782
International Business Machines Corporation 20 2,138
-------
4,920
- ----------------------------------------------------------------------------
Construction and Building Materials -- 2.2%
Martin Marietta Materials, Inc. 40 1,640
- ----------------------------------------------------------------------------
Consumer Services -- 2.2%
Cintas Corporation 30 1,594
- ----------------------------------------------------------------------------
Energy -- 5.3%
Total Fina SA ADR 35 2,424
Unocal Corporation 45 1,510
-------
3,934
- ----------------------------------------------------------------------------
Entertainment -- 2.0%
The Walt Disney Company 50 1,462
- ----------------------------------------------------------------------------
Financial Services -- 13.3%
Citigroup Inc. 60 3,334
Fannie Mae 72 4,495
Marshall & Ilsley Corporation 32 2,010
-------
9,839
- ----------------------------------------------------------------------------
Food, Beverage and Tobacco -- 4.7%
Anheuser-Busch Companies, Inc. 30 2,112
McDonald's Corporation 35 1,391
-------
3,503
- ----------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Health Care -- 4.9%
Abbott Laboratories 60 $ 2,179
Johnson & Johnson 16 1,462
-------
3,641
- ----------------------------------------------------------------------------
Manufacturing -- 6.3%
Dover Corporation 45 2,042
Kaydon Corporation 56 1,501
Tyco International Ltd. 28 1,089
-------
4,632
- ----------------------------------------------------------------------------
Metals -- 2.2%
Potash Corporation of Saskatchewan, Inc. ADR 33 1,590
- ----------------------------------------------------------------------------
Pharmaceuticals -- 3.8%
Merck & Co., Inc. 26 1,744
Pharmacia & Upjohn, Inc. 24 1,080
-------
2,824
- ----------------------------------------------------------------------------
Real Estate Investment Trusts (REITs) -- 4.6%
Chateau Communities, Inc. 130 3,359
- ----------------------------------------------------------------------------
Savings and Loan -- 4.3%
Charter One Financial, Inc. 166 3,178
- ----------------------------------------------------------------------------
Telecommunications -- 12.5%
AT&T Corporation 65 3,299
BroadWing, Inc. 35 1,291/A/
MCI WorldCom, Inc. 30 1,592/A/
Nortel Networks Corporation 31 3,080
-------
9,262
- ----------------------------------------------------------------------------
Transportation -- 10.7%
AMR Corporation 32 2,144/A/
GATX Corporation 59 1,991
Kansas City Southern Industries, Inc. 30 2,239
Union Pacific Corporation 35 1,527
-------
7,901
- ----------------------------------------------------------------------------
</TABLE>
19
<PAGE>
-------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------
Bartlett Basic Value Fund (Continued)
December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Total Common Stocks and
Equity Interests $71,460
- ----------------------------------------------------------------------------
(Identified Cost -- $50,466)
- ----------------------------------------------------------------------------
Repurchase Agreements -- 4.0%
- ----------------------------------------------------------------------------
State Street Bank & Trust Company
2.50%, dated 12/31/99, to be repurchased at $2,946
on 1/3/00 (Collateral: $3,010 U.S. Treasury
Notes, 5.625%, due 5/15/01, value $3,028) $2,945 2,945
- ----------------------------------------------------------------------------
Total Repurchase Agreements 2,945
- ----------------------------------------------------------------------------
(Identified Cost -- $2,945)
- ----------------------------------------------------------------------------
Total Investments -- 100.7% 74,405
- ----------------------------------------------------------------------------
(Identified Cost -- $53,411)
- ----------------------------------------------------------------------------
Other Liabilities Less Assets -- (0.7)% (518)
- ----------------------------------------------------------------------------
Net Assets Consisting of:
Capital shares 49,664
Distributions in excess of net investment income (183)
Accumulated net realized gain/(loss)
on investments and currency transactions 3,412
Net unrealized appreciation/(depreciation)
of investments and currency transactions 20,994
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $73,887
============================================================================
Net asset value and redemption price per share --
Class A ($71,843 / 5,044 shs) $14.24
============================================================================
Maximum offering price per share -- Class A (net
asset value plus sales charge of 4.75% of offering price) $14.95
============================================================================
Net asset value, offering price and redemption price
per share -- Class C ($1,181 / 84 shs) $14.05
============================================================================
Net asset value, offering price and redemption price
per share -- Class Y ($863/ 61 shs) $14.21
============================================================================
</TABLE>
/A/Non-income producing.
See notes to financial statements.
20
<PAGE>
-------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------
Bartlett Value International Fund
December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Common Stocks and Equity Interests -- 93.2%
- ----------------------------------------------------------------------------
Argentina -- 1.9%
IRSA Inversiones y Representaciones S.A. GDR 29 $ 935
- ----------------------------------------------------------------------------
Australia -- 5.8%
Brambles Industries Limited 43 1,195
National Australia Bank Limited ADR 14 1,085
The News Corporation Limited ADR 14 539
-------
2,819
- ----------------------------------------------------------------------------
Canada -- 4.0%
Nortel Networks Corporation 20 1,969
- ----------------------------------------------------------------------------
France -- 14.5%
Alcatel SA ADR 35 1,575
Aventis S.A. ADR 18 1,028
Cie de Saint Gobain 6 1,201
Compagnie Generale des Etablissements Michelin 27 1,065
Groupe Danone 21 978
Total Fina SA ADR 18 1,232
-------
7,079
- ----------------------------------------------------------------------------
Germany -- 7.1%
Buderus AG 67 1,136
DaimlerChrysler AG 15 1,164
Deutsche Lufthansa AG 51 1,175
-------
3,475
- ----------------------------------------------------------------------------
Hong Kong -- 0.8%
Jardine Strategic Holdings Limited 200 398
- ----------------------------------------------------------------------------
India -- 0.2%
Morgan Stanley Dean Witter India Investment Fund 7 120/A/
- ----------------------------------------------------------------------------
Ireland -- 1.8%
Allied Irish Banks plc ADR 42 879
- ----------------------------------------------------------------------------
Italy -- 2.2%
San Paolo-Imi SpA ADR 40 1,089
- ----------------------------------------------------------------------------
</TABLE>
21
<PAGE>
-------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------
Bartlett Value International Fund (Continued)
December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Japan -- 22.4%
Canon, Inc. 37 $ 1,470
Fujitsu Limited 40 1,824
Ito-Yokado Co., Ltd. ADR 11 1,120
Matsumotokiyoshi 17 1,278
Matsushita Electric Industrial Company Ltd. 59 1,634
Rohm Company Ltd. 5 2,055
Secom Co., Ltd. 14 1,542
-------
10,923
- ----------------------------------------------------------------------------
Netherlands -- 2.2%
CNH Global N.V. 79 1,048
- ----------------------------------------------------------------------------
Norway -- 2.1%
Elkem ASA 31 726
Norsk Hydro ASA ADR 7 282
-------
1,008
- ----------------------------------------------------------------------------
Portugal -- 1.9%
Banco Comercial Portugues, SA ADR 34 902
- ----------------------------------------------------------------------------
Singapore -- 1.2%
Dairy Farm International Holdings Limited 626 563
- ----------------------------------------------------------------------------
South Korea -- 2.2%
Korea Electric Power Corporation ADR 18 302
Korea Fund, Inc. 20 342/A/
Pohang Iron & Steel Company Ltd. ADR 12 424
-------
1,068
- ----------------------------------------------------------------------------
Spain -- 4.4%
Endesa S. A. ADR 35 707
Repsol- YPF, S.A. ADR 62 1,434
-------
2,141
- ----------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
Shares/Par Market Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Sweden -- 3.9%
AssiDoman AB 15 $ 241
Cardo AB 46 924
Pharmacia & Upjohn, Inc. 16 720
-------
1,885
- ----------------------------------------------------------------------------
Switzerland -- 2.4%
Novartis AG 1 1,175
- ----------------------------------------------------------------------------
United Kingdom -- 12.2%
Cadbury Schweppes plc ADR 45 1,088
Diageo plc ADR 27 872
Invensys plc 263 1,392
Rio Tinto plc ADR 17 1,573
Tomkins plc ADR 71 1,047
-------
5,972
- ----------------------------------------------------------------------------
Total Common Stocks and
Equity Interests 45,448
- ----------------------------------------------------------------------------
(Identified Cost -- $31,415)
- ----------------------------------------------------------------------------
Convertible Bonds -- 2.0%
- ----------------------------------------------------------------------------
Canada -- 2.0%
Magna International Inc. $1,050 996
- ----------------------------------------------------------------------------
Total Convertible Bonds 996
- ----------------------------------------------------------------------------
(Identified Cost -- $1,299)
- ----------------------------------------------------------------------------
Repurchase Agreements -- 4.8%
- ----------------------------------------------------------------------------
State Street Bank & Trust Company
2.50%, dated 12/31/99, to be repurchased at $2,331
on 1/3/00 (Collateral: $2,030 U.S. Treasury
Bonds, 8.125%, due 8/15/19, value $2,439) 2,331 2,331
- ----------------------------------------------------------------------------
Total Repurchase Agreements $ 2,331
- ----------------------------------------------------------------------------
(Identified Cost -- $2,331)
- ----------------------------------------------------------------------------
</TABLE>
23
<PAGE>
-------------------------------------------
STATEMENT OF NET ASSETS
-------------------------------------------
Bartlett Value International Fund (Continued)
December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Market Value
- ----------------------------------------------------------------------------
<S> <C>
Total Investments -- 100.0% $48,775
- ----------------------------------------------------------------------------
(Identified Cost -- $35,045)
- ----------------------------------------------------------------------------
Other Assets Less Liabilities -- N.M. 10
- ----------------------------------------------------------------------------
Net Assets Consisting of:
Capital shares 36,552
Distributions in excess of net investment income (1,374)
Accumulated net realized gain/(loss)
on investments and currency transactions (123)
Net unrealized appreciation/(depreciation)
of investments and currency transactions 13,730
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $48,785
============================================================================
Net asset value and redemption price per
share -- Class A ($41,292 / 2,846 shs) $14.51
============================================================================
Maximum offering price per share -- Class A
(net asset value plus sales charge of 4.75% of
offering price) $15.23
============================================================================
Net asset value, offering price and redemption
price per share -- Class C ($4,063 / 285 shs) $14.24
============================================================================
Net asset value, offering price and redemption
price per share -- Class Y ($3,430 / 237 shs) $14.46
============================================================================
</TABLE>
/A/Non-income producing.
N.M.- Not meaningful.
See notes to financial statements.
24
<PAGE>
-------------------------------------------
STATEMENTS OF OPERATIONS
-------------------------------------------
For the Year Ended December 31, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Bartlett Value
Bartlett Basic International
Value Fund Fund
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
- --------------------------------------------------------------------------------------------
Dividends $ 1,816 $ 1,189
Less foreign taxes withheld (9) (87)
Interest 68 564
- --------------------------------------------------------------------------------------------
Total Investment Income 1,875 1,666
- --------------------------------------------------------------------------------------------
Expenses:
- --------------------------------------------------------------------------------------------
Investment advisory fees 707 598
Distribution and service fees 245 138
Custodian fees 88 131
Legal and audit fees 52 66
Trustees' fees 33 33
Registration fees 32 28
Reports to shareholders 18 24
Transfer agent and shareholder
servicing expense 22 18
Other expenses 2 8
Less expenses waived (106) (165)
- --------------------------------------------------------------------------------------------
Total Expenses 1,093 879
- --------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 782 787
- --------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain/(Loss):
Realized gain/(loss) on:
Investments 15,221 5,614
Foreign currency transactions -- (1,522)
Change in unrealized appreciation of:
Investments (21,827) 7,988
Assets and liabilities denominated
in foreign currencies -- (1)
- --------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) (6,606) 12,079
- --------------------------------------------------------------------------------------------
Change in Net Assets Resulting From
Operations $ (5,824) $12,866
============================================================================================
</TABLE>
See notes to financial statements.
25
<PAGE>
-------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
-------------------------------------------
Bartlett Basic Value Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Year Year
Ended Ended
12/31/99 12/31/98
- --------------------------------------------------------------------------------------
<S> <C> <C>
From operations:
- --------------------------------------------------------------------------------------
Net investment income/(loss) $ 782 $ 1,372
Net realized gain/(loss) on investments and
foreign currency transactions 15,221 4,845
Change in unrealized appreciation/(depreciation)
of investments and assets and liabilities
denominated in foreign currencies (21,827) (1,760)
- --------------------------------------------------------------------------------------
Change in net assets resulting
from operations (5,824) 4,457
- --------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------
From net investment income:
Class A shares (1,297) (889)
Class C shares (3) (8)
Class Y shares (27) (16)
From net realized gains on security transactions:
Class A shares (12,107) (7,398)
Class C shares (231) (128)
Class Y shares (148) (144)
- --------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (13,813) (8,583)
- --------------------------------------------------------------------------------------
Change in net assets from Fund share
transactions (30,726) (7,482)
- --------------------------------------------------------------------------------------
Change in net assets (50,363) (11,608)
Net assets:
Beginning of year 124,250 135,858
- --------------------------------------------------------------------------------------
End of year $ 73,887 $124,250
- --------------------------------------------------------------------------------------
Under/(over) distributed net investment
income $ (183) $ 362
======================================================================================
</TABLE>
See notes to financial statements.
26
<PAGE>
-------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
-------------------------------------------
Bartlett Value International Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Year Year
Ended Ended
12/31/99 12/31/98
- --------------------------------------------------------------------------------------
<S> <C> <C>
From operations:
- --------------------------------------------------------------------------------------
Net investment income/(loss) $ 787 $ 265
Net realized gain/(loss) on investments and
foreign currency transactions 4,092 (2,640)
Change in unrealized appreciation/(depreciation)
of investments and assets and liabilities
denominated in foreign currencies 7,987 (467)
- --------------------------------------------------------------------------------------
Change in net assets resulting
from operations 12,866 (2,842)
- --------------------------------------------------------------------------------------
Distributions to shareholders:
- --------------------------------------------------------------------------------------
From net investment income:
Class A shares (1,809) (947)
Class C shares (148) (46)
Class Y shares (176) (94)
From net realized gains on
security transactions:
Class A shares -- (1,860)
Class C shares -- (128)
Class Y shares -- (260)
- --------------------------------------------------------------------------------------
Decrease in net assets from distributions
to shareholders (2,133) (3,335)
- --------------------------------------------------------------------------------------
Change in net assets from Fund share
transactions (19,130) (19,268)
- --------------------------------------------------------------------------------------
Change in net assets (8,397) (25,445)
Net assets:
Beginning of year 57,182 82,627
- --------------------------------------------------------------------------------------
End of year $ 48,785 $ 57,182
- --------------------------------------------------------------------------------------
Under/(over) distributed net investment
income $ (1,374) $ (822)
======================================================================================
</TABLE>
See notes to financial statements.
27
<PAGE>
-------------------------------------------
FINANCIAL HIGHLIGHTS
-------------------------------------------
Bartlett Basic Value Fund
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Investment Operations Distributions
--------------------------------------- ---------------------------------------
Net Asset Net Realized Total From From Net Asset
Value, Net and Unrealized From Net Net Value,
Beginning Investment Gains on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gains Distributions Period
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares
Year Ended Dec. 31,
1999 $18.34 $0.18/B/ $(1.25) $(1.07) $(0.26) $(2.77) $(3.03) $14.24
1998 18.95 0.20/B/ 0.48 0.68 (0.14) (1.15) (1.29) 18.34
Nine Months Ended
Dec. 31, 1997/C/ 18.33 0.19/B/ 5.59 5.78 (0.22) (4.94) (5.16) 18.95
Years Ended March 31,
1997 17.94 0.22 1.82 2.04 (0.26) (1.39) (1.65) 18.33
1996 15.39 0.30 3.32 3.62 (0.24) (0.83) (1.07) 17.94
1995 14.89 0.27 1.53 1.80 (0.27) (1.03) (1.30) 15.39
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Net
Investment Net Assets,
Expenses Income (Loss) Portfolio End of
Total to Average to Average Turnover Period
Return/A/ Net Assets Net Assets Rate (in thousands)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares
Year Ended Dec. 31,
1999 (5.73)% 1.15%/B/ 0.93%/B/ 46% $ 71,843
1998 3.76% 1.08%/B/ 1.05%/B/ 28% 119,626
Nine Months Ended
Dec. 31, 1997/C/ 33.14%/H/ 1.13%/B,I/ 1.15%/B,I/ 42%/I/ 133,076
Years Ended March 31,
1997 11.30% 1.16% 1.18% 23% 119,208
1996 24.05% 1.17% 1.79% 25% 125,636
1995 12.67% 1.20% 1.81% 26% 102,721
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Investment Operations Distributions
--------------------------------------- ---------------------------------------
Net Asset Net Realized Total From From Net Asset
Value, Net and Unrealized From Net Net Value,
Beginning Investment Gains on Investment Investment Realized Total End of
of Period Income Investments Operations Income Gains Distributions Period
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class C Shares
Years Ended Dec. 31,
1999 $18.03 0.02/D/ $(1.20) $(1.18) $(0.03) $(2.77) $(2.80) $14.05
1998 18.75 0.10/D/ 0.41 0.51 (0.08) (1.15) (1.23) 18.03
1997/E/ 22.84 0.24/D/ 0.88 1.12 (0.27) (4.94) (5.21) 18.75
Class Y Shares
Years Ended Dec. 31,
1999 $18.31 0.21/F/ $(1.24) $(1.03) $(0.30) $(2.77) $(3.07) $14.21
1998 18.87 0.25/F/ 0.47 0.72 (0.13) (1.15) (1.28) 18.31
1997/G/ 21.92 0.18/F/ 1.94 2.12 (0.23) (4.94) (5.17) 18.87
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Net
Investment Net Assets,
Expenses Income (Loss) Portfolio End of
Total to Average to Average Turnover Period
Return/A/ Net Assets Net Assets Rate (in thousands)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class C Shares
Years Ended Dec. 31,
1999 (6.44)% 1.90%/D/ 0.18%/D/ 46% $ 1,181
1998 2.96% 1.90%/D/ 0.29%/D/ 28% 2,228
1997/E/ 6.07%/H/ 1.90%/D,I/ 1.11%/D,I/ 42%/I/ 395
Class Y Shares
Years Ended Dec. 31,
1999 (5.51)% 0.90%/F/ 1.14%/F/ 46% $ 863
1998 3.99% 0.82%/F/ 1.31%/F/ 28% 2,396
1997/G/ 10.97%/H/ 0.86%/F,I/ 1.51%/F,I/ 42%/I/ 2,387
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
/A/ Excluding sales charge on Class A shares.
/B/ Net of fees waived pursuant to a voluntary expense limitation of 1.15%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 1.26%; 1998,
1.20%; 1997, 1.19%.
/C/ The year end for Bartlett Basic Value Fund was changed from March 31 to
December 31.
/D/ Net of fees waived pursuant to a voluntary expense limitation of 1.90%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 2.06%; 1998,
2.02%; 1997, 2.00%.
/E/ For the period September 12, 1997 (commencement of operations of this
class) to December 31, 1997.
/F/ Net of fees waived pursuant to a voluntary expense limitation of 0.90%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 0.99%; 1998,
0.94%; 1997, 0.96%.
/G/ For the period August 15, 1997 (commencement of operations of this class)
to December 31, 1997.
/H/ Not annualized.
/I/ Annualized.
See notes to financial statements.
29
<PAGE>
FINANCIAL HIGHLIGHTS
Bartlett Value International Fund
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Investment Operations Distributions
--------------------------------------- ---------------------------------------------------
Net Asset Net Realized Total From In Excess From
Value, Net and Unrealized From Net of Net Net
Beginning Investment Gains on Investment Investment Investment Realized Total
of Period Income Investments Operations Income Income Gains Distributions
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A Shares
Year Ended Dec. 31,
1999 $11.50 0.21/B,C/ $ 3.36 $ 3.57 $(0.56) $ -- $ -- $(0.56)
1998 12.45 (0.02)/C/ (0.35) (0.37) (0.20) -- (0.38) (0.58)
Nine Months Ended
Dec. 31, 1997/D/ 13.64 0.05/C/ 0.31 0.36 (0.17) -- (1.38) (1.55)
Years Ended March 31,
1997 12.59 0.08 1.81 1.89 (0.08) (0.01) (0.75) (0.84)
1996 11.64 0.13 1.33 1.46 (0.13) (0.01) (0.37) (0.51)
1995 12.46 0.09 (0.21) (0.12) (0.09) -- (0.61) (0.70)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Net Asset
Value
End of
Period
- -------------------------------------------
<S> <C>
Class A Shares
Year Ended Dec. 31,
1999 $ 14.51
1998 11.50
Nine Months Ended
Dec. 31, 1997/D/ 12.45
Years Ended March 31,
1997 13.64
1996 12.59
1995 11.64
- -------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------------------------
Net
Investment Net Assets,
Expenses Income (Loss) Portfolio End of
Total to Average to Average Turnover Period
Return/A/ Net Assets Net Assets Rate (in thousands)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares
Year Ended Dec. 31,
1999 32.02% 1.80%/C/ 1.69%/C/ 23% $ 41,292
1998 (2.88)% 1.73%/C/ 0.37%/C/ 27% 47,856
Nine Months Ended
Dec. 31, 1997/D/ 2.79%/I/ 1.78%/C,J/ 0.49%/C,J/ 44%/J/ 68,648
Years Ended March 31,
1997 15.45% 1.81% 0.62% 31% 83,973
1996 12.76% 1.83% 1.06% 38% 72,041
1995 (1.18)% 1.83% 0.80% 24% 57,664
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
Investment Operations Distributions
------------------------------------- -----------------------------------------------------
Net Asset Net Realized Total From In Excess From
Value, Net and Unrealized From Net of Net Net
Beginning Investment Gains on Investment Investment Investment Realized Total
of Period Income Investments Operations Income Income Gains Distributions
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class C Shares
Years Ended Dec. 31,
1999 $11.34 0.15/B,E/ $ 3.27 $ 3.42 $(0.52) $ -- $ -- $(0.52)
1998 12.30 0.10/E/ (0.55) (0.45) (0.13) -- (0.38) (0.51)
1997/F/ 15.70 0.08/E/ (1.82) (1.74) (0.28) -- (1.38) (1.66)
Class Y Shares
Years Ended Dec. 31,
1999 $11.46 0.24/B,G/ $ 3.34 $ 3.58 $(0.58) $ -- $ -- $(0.58)
1998 12.33 (0.37)/G/ 0.04 (0.33) (0.16) -- (0.38) (0.54)
1997/H/ 15.27 (0.11)/G/ (1.21) (1.32) (0.24) -- (1.38) (1.62)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Net Asset
Value
End of
Period
- ------------------------------------------
<S> <C>
Class C Shares
Years Ended Dec. 31,
1999 $ 14.24
1998 11.34
1997/F/ 12.30
Class Y Shares
Years Ended Dec. 31,
1999 $ 14.46
1998 11.46
1997/H/ 12.33
- ------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------------------
Net
Investment Net Assets,
Expenses Income (Loss) Portfolio End of
Total to Average to Average Turnover Period
Return/A/ Net Assets Net Assets Rate (in thousands)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class C Shares
Years Ended Dec. 31,
1999 31.04% 2.55%/E/ 1.00%/E/ 23% $ 4,063
1998 (3.64)% 2.55%/E/ (0.55)%/E/ 27% 3,916
1997/F/ (10.87)%/I/ 2.55%/E,J/ (1.68)%/E,J/ 44%/J/ 895
Class Y Shares
Years Ended Dec. 31,
1999 32.25% 1.55%/G/ 1.79%/G/ 23% $ 3,430
1998 (2.65)% 1.47%/G/ 0.61%/G/ 27% 5,410
1997/H/ (8.38)%/I/ 1.44%/G,J/ (0.75)%/G,J/ 44%/J/ 13,084
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
/A/ Excluding sales charge on Class A shares.
/B/ Net income per share is calculated using monthly average shares.
/C/ Net of fees waived pursuant to a voluntary expense limitation of 1.80%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 2.15%; 1998,
1.87%; 1997, 1.95%.
/D/ The year end for Bartlett Value International Fund was changed from March
31 to December 31.
/E/ Net of fees waived pursuant to a voluntary expense limitation of 2.55%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 2.90%; 1998,
2.69%; 1997, 2.70%.
/F/ For the period July 23, 1997 (commencement of operations of this class) to
December 31, 1997.
/G/ Net of fees waived pursuant to a voluntary expense limitation of 1.55%. If
no fees had been waived, the annualized ratio of expenses to average daily
net assets for each period would have been as follows: 1999, 1.85%; 1998,
1.61%; 1997, 1.59%.
/H/ For the period August 15, 1997 (commencement of operations of this class)
to December 31, 1997.
/I/ Not annualized.
/J/ Annualized.
See notes to financial statements.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Amounts in Thousands)
[1] Significant Accounting Policies
Bartlett Capital Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. 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 Basic Value Fund and Bartlett Value International Fund (each a
"Fund").
Each Fund consists of three classes of shares: Class A, offered since 1983 for
Basic Value and since 1989 for Value International; Class C, offered since 1997
for both Basic Value Fund and Value International Fund; and Class Y, offered to
certain institutional investors since 1997 for both Basic Value Fund and Value
International Fund.
The income and expenses of each of these Funds are allocated proportionately
to the three classes of shares based on daily net assets, except for Rule 12b-1
distribution fees, which are charged only on Class A and Class C shares, and
transfer agent and shareholder servicing expenses, which are determined
separately for each class.
The following is a summary of the investment objectives followed by the Funds:
Bartlett Basic Value Fund seeks capital appreciation by investing primarily in
common stocks or securities convertible into common stocks that are believed by
Bartlett & Co. ("Adviser") to be attractively priced relative to their intrinsic
value. Income is a secondary consideration.
Bartlett Value International Fund seeks capital appreciation by investing
primarily in foreign equity securities believed by the Adviser to be
attractively priced relative to their intrinsic value. Income is a secondary
consideration.
The following is a summary of the significant accounting policies of Bartlett
Capital Trust:
Security Valuation - Securities owned by each Fund for which market quotations
are readily available are valued at current market value. In the absence of
readily available market quotations, securities are valued at fair value as
determined by Bartlett, under authority delegated by the Board of Trustees.
Equity securities and options listed on exchanges are valued at the last sale
price as of the close of business on the day the securities are being
32
<PAGE>
valued. Listed securities not traded on a particular day and securities traded
in the over-the-counter market are valued at the mean between the 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 that use prices provided by market makers or
estimates of market values. Fixed income securities having a maturity of less
than 60 days are valued at amortized cost.
Foreign Currency Translation - The books and records of the Funds 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, assets and liabilities at the
closing daily rate of exchange; and
(ii) purchases and sales of investment securities, interest income and
expenses at the rate of exchange prevailing on the respective date of
such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains or losses is reflected as a component of such gains or losses.
Investment Income and Distributions to Shareholders - Interest income and
expenses are recorded on the accrual basis. Bond premiums are amortized for
financial reporting and federal income tax purposes. Bond discounts, other than
original issue and zero-coupon bonds, are not amortized for financial reporting
and federal income tax purposes. Dividend income and distributions to
shareholders are allocated at the class level and are recorded on the ex-
dividend date. Dividends from net investment income, if available, will be paid
quarterly by the Funds. Net capital gain distributions, which are calculated at
the composite level, are declared and paid after the end of the tax year in
which the gain is realized. Distributions are determined in accordance with
federal income tax regulations, which may differ from those determined in
accordance with generally accepted accounting principles; accordingly, periodic
reclassifications are made within the Funds' capital accounts to reflect income
and gains available for distribution under federal income tax regulations.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Security Transactions - Security transactions are recorded on the trade date.
Realized gains and losses from security transactions are reported on an
identified cost basis for both financial reporting and federal income tax
purposes.
At December 31, 1999, there were no receivables for securities sold or
payables for securities purchased for the Funds.
Federal Income Taxes - No provision for federal income or excise taxes is
required since each Fund intends to continue to qualify as a regulated
investment company and distribute substantially all of its taxable income to its
shareholders. Value International has unused capital loss carryforwards for
federal income tax purposes of $41 which will expire in 2006.
Use of Estimates - Preparation of the financial statements in accordance with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
[2] Investment Transactions
For the year ended December 31, 1999, investment transactions (excluding
short-term securities) were as follows:
<TABLE>
<CAPTION>
Basic Value
Value International
- -----------------------------------------------------------------------
<S> <C> <C>
Purchases of investment securities $42,500 $10,198
- -----------------------------------------------------------------------
Proceeds from sales and maturities
of investment securities $86,494 $29,083
- -----------------------------------------------------------------------
</TABLE>
34
<PAGE>
At December 31, 1999, cost, aggregate gross unrealized appreciation and gross
unrealized depreciation based on the cost of securities for federal income tax
purposes for each Fund were as follows:
<TABLE>
<CAPTION>
Basic Value
Value International
- -------------------------------------------------------------------------
<S> <C> <C>
Unrealized appreciation $23,284 $16,693
Unrealized depreciation (2,290) (3,056)
- -------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $20,994 $13,637
- -------------------------------------------------------------------------
Federal income tax cost of investments $53,489 $35,138
- -------------------------------------------------------------------------
</TABLE>
[3] Repurchase Agreements
All repurchase agreements are fully collateralized by obligations issued by
the U.S. Government or its agencies, and such collateral is in the possession of
the Funds' custodian. The value of such collateral includes accrued interest.
Risks arise from the possible delay in recovery or potential loss of rights in
the collateral should the issuer of the repurchase agreement fail financially.
The Funds' investment adviser reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Funds enter into
repurchase agreements to evaluate potential risks.
[4] Options and Futures
As part of their investment programs, the Funds may utilize options and
futures. Options may be written (sold) or purchased by the Funds. When a Fund
purchases a put or call option, the premium paid is recorded as an investment
and its value is marked-to-market daily. When a Fund writes a call or put
option, an amount equal to the premium received by the Fund is recorded as a
liability and its value is marked-to-market daily.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
The risk associated with purchasing options is limited to the premium
originally paid. Options written by a Fund involve, to varying degrees, risk of
loss in excess of the option value reflected in the statement of net assets. The
risk in writing a call option is that a Fund may forego the opportunity of
profit if the market price of the underlying security increases and the option
is exercised. The risk in writing a put option is that a Fund may incur a loss
if the market price of the underlying security decreases and the option is
exercised. In addition, there is the risk a Fund may not be able to enter into a
closing transaction because of an illiquid secondary market or, for over-the-
counter options, because of the counterparty's inability to perform.
There were no options written during the year ended December 31, 1999.
Upon entering into a futures contract, the Fund is required to deposit with
the broker cash or cash equivalents in an amount equal to a certain percentage
of the contract amount. This is known as the "initial margin." Subsequent
payments ("variation margin") are made or received by the Fund each day,
depending on the daily fluctuation in the value of the contract. The daily
changes in contract value are recorded as unrealized gains or losses and the
Fund recognizes a realized gain or loss when the contract is closed. Futures
contracts are valued daily at the settlement price established by the board of
trade or exchange on which they are traded.
The Funds enter into futures contracts as a hedge against currency risks.
There are several risks in connection with the use of futures contracts as a
hedging device. Futures contracts involve, to varying degrees, the risk of loss
in excess of amounts reflected in the financial statements. The change in the
value of futures contracts primarily corresponds with the value of their
underlying instruments, which may not correlate with the change in the value of
the hedged instruments. In addition, there is the risk that a Fund may not be
able to enter into a closing transaction because of an illiquid secondary
market.
For the year ended December 31, 1999, the Funds had not entered into any
futures contracts.
36
<PAGE>
[5] Financial Instruments
Emerging Market Securities - Value International may invest in securities
denominated in the currencies of emerging market countries, as well as in
securities issued by companies located in emerging market countries. Future
economic or political developments could adversely affect the liquidity or
value, or both, of such securities.
Forward Foreign Currency Contracts - Forward foreign currency contracts are
marked-to-market daily using foreign currency exchange rates supplied by an
independent pricing service. The change in a contract's market value is recorded
by a Fund as an unrealized gain or loss. When the contract is closed or delivery
is taken, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
The use of forward foreign currency contracts does not eliminate fluctuations
in the underlying prices of the Fund's securities, but it does establish a rate
of exchange that can be achieved in the future. These forward foreign currency
contracts involve market risk in excess of amounts reflected in the financial
statements. Although forward foreign currency contracts used for hedging
purposes limit the risk of loss due to a decline in the value of the hedged
currency, they also limit any potential gain that might result should the value
of the currency increase. In addition, the Funds could be exposed to risks if
the counterparties to the contracts are unable to meet the terms of their
contracts. Each Fund's adviser will enter into forward foreign currency
contracts only with parties approved by the Board of Trustees because there is a
risk of loss to the Funds if the counterparties do not complete the transaction.
For the year ended December 31, 1999, the Funds had not entered into any
forward currency contracts.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
[6] Line of Credit
The Funds, along with certain funds distributed by Legg Mason Wood Walker,
Incorporated ("LMWW"), an affiliate of the Adviser, participate in a $200
million line of credit ("Credit Agreement") to be utilized as an emergency
source of cash in the event of unanticipated, large redemption requests by
shareholders. Pursuant to the Credit Agreement, each participating Fund is
liable only for principal and interest payments related to borrowings made by
that Fund. Borrowings under the line of credit bear interest at prevailing
short-term interest rates. For the year ended December 31, 1999, the Funds had
no borrowings under the line of credit.
[7] Transactions With Affiliates and Related Parties
The officers of the Trust are shareholders or employees of the Adviser or
LMWW. LMWW is affiliated with the Adviser through their common parent company,
Legg Mason, Inc. The Adviser became a wholly owned subsidiary of Legg Mason,
Inc. in January 1996. Bartlett Capital Trust's investments were managed by the
Adviser under the terms of a Management Agreement. Under the Management
Agreement that was effective through July 20, 1997, the Adviser paid all Fund
expenses except brokerage, taxes, interest and extraordinary expenses. As
compensation for investment advisory services and the agreement to pay the above
Fund expenses, each Fund paid the Adviser a fee computed and accrued daily and
paid monthly. The fee for Basic Value was computed at an annual rate of 2.00% of
the average daily net assets of the Fund up to and including $10,000, 1.50% of
such assets from $10,000 up to and including $30,000, and 1.00% of such assets
in excess of $30,000. The fee for Value International was computed at an annual
rate of 2.00% of the average daily net assets of the Fund up to and including
$20,000, 1.75% of such assets from $20,000 up to and including $200,000, and
1.25% of such assets in excess of $200,000.
38
<PAGE>
On July 15, 1997, the shareholders of the Trust approved an Investment
Management and Administration Agreement ("Agreement"). Under the Agreement, the
Adviser receives for its services an advisory fee from each Fund, computed daily
and payable monthly at annual rates of each Fund's average daily net assets.
The Adviser has agreed to waive its fees in any month (exclusive of taxes,
interest, brokerage and extraordinary expenses) as shown in the following chart:
<TABLE>
<CAPTION>
Basic Value
Value International
- ---------------------------------------------------
<S> <C> <C>
Advisory Fee 0.75% 1.25%
- ---------------------------------------------------
Expense Limitation
Class A 1.15% 1.80%
Class C 1.90% 2.55%
Class Y 0.90% 1.55%
- ---------------------------------------------------
</TABLE>
Fees in excess of these limits will be waived through May 1, 2000. For all
classes of the Funds, advisory fees waived for the year ended December 31, 1999,
and amounts due to the Adviser at December 31, 1999, were as follows:
<TABLE>
<CAPTION>
Basic Value
Value International
- ------------------------------------------------------
<S> <C> <C>
Advisory Fees Waived $88 $144
- ------------------------------------------------------
Advisory Fees Payable $41 $ 36
- ------------------------------------------------------
</TABLE>
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
LM Financial Partners, Inc., distributor of the Funds and an affiliate of the
Adviser, receives from each Fund an annual service fee of 0.25% of the average
daily net assets of each Fund's Class A shares and distribution and service fees
at an annual rate of 0.75% and 0.25%, respectively, of average daily net assets
of each Fund's Class C shares. These fees are calculated daily and paid monthly.
At December 31, 1999, distribution and service fees waived were $18 and $21 for
Basic Value and Value International, respectively.
LMWW has an agreement with the funds' transfer agent to assist it with some of
its duties. For this assistance, the transfer agent paid LMWW the following
amounts for the year ended December 31, 1999: Basic Value, $6; and Value
International, $4.
[8] Fund Share Transactions
The Trust is authorized to issue an unlimited number of shares of beneficial
interest of separate series, all without par value. Shares of two series,
consisting of the Funds, have been authorized. The shares of beneficial interest
of each Fund are divided into three classes, designated Class A, Class C and
Class Y shares. Share transactions are shown on the following page.
40
<PAGE>
<TABLE>
<CAPTION>
Reinvestment
Sold of Distributions Repurchased Net Change
------------------- ----------------- ----------------- ------------------
Shares Amount Shares Amount Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Basic Value
- -- Class A Shares
Year Ended
December 31, 1999 289 $ 4,669 898 $13,049 (2,667) $(46,524) (1,480) $(28,806)
December 31, 1998 602 11,170 447 8,032 (1,547) (28,706) (498) (9,504)
- -- Class C Shares
Year Ended
December 31, 1999 28 $ 497 17 $ 232 (84) $ (1,393) (39) $ (664)
December 31, 1998 124 2,334 7 135 (29) (526) 102 1,943
- -- Class Y Shares
Year Ended
December 31, 1999 2 $ 29 12 $ 175 (84) $ (1,460) (70) $ (1,256)
December 31, 1998 7 153 9 160 (12) (234) 4 79
Value International
- -- Class A Shares
Year Ended
December 31, 1999 398 $ 4,823 127 $ 1,538 (1,840) $(21,988) (1,315) $(15,627)
December 31, 1998 583 7,184 220 2,519 (2,158) (25,562) (1,355) (15,859)
- -- Class C Shares
Year Ended
December 31, 1999 40 $ 499 12 $ 146 (112) $ (1,350) (60) $ (705)
December 31, 1998 313 3,966 15 163 (56) (639) 272 3,490
- -- Class Y Shares
Year Ended
December 31, 1999 3 $ 38 10 $ 123 (248) $ (2,959) (235) $ (2,798)
December 31, 1998 20 328 18 203 (627) (7,430) (589) (6,899)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Bartlett Capital Trust and to the Shareholders of Bartlett
Basic Value Fund and Bartlett Value International Fund:
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Bartlett Basic Value Fund and Bartlett Value International Fund (comprising
Bartlett Capital Trust, hereafter referred to as the "Funds") at December 31,
1999, and the results of each of their operations, the changes in their net
assets and the financial highlights for each of the fiscal periods presented, in
conformity with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999, by correspondence with the custodian,
provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 10, 2000
42
<PAGE>
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<PAGE>
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<PAGE>
TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Lorrence T. Kellar Chairman of the Board and Trustee
Edward A. Taber, III President and Trustee
A. John W. Campbell Trustee
Edmund J. Cashman, Jr. Trustee
Henri Deegenaar Trustee
Ian F. H. Grant Trustee
William P. Sheehan Trustee
Prinz Wolfgang Ysenburg Trustee
Marie K. Karpinski, CPA Vice President, Treasurer and Secretary
Madelynn M. Matlock, CFA Vice President
James A. Miller, CFA Vice President
Donna M. Prieshoff Vice President
James B. Reynolds, CFA Vice President
Woodrow H. Uible, CFA Vice President
Thomas A. Steele, CPA Assistant Treasurer and Assistant Secretary
- --------------------------------------------------------------------------------
Investment Adviser Bartlett & Co.
Cincinnati, Ohio
Custodian State Street Bank & Trust Company
Boston, Massachusetts
Transfer Agent Boston Financial Data Services
Boston, Massachusetts
Independent Accountants PricewaterhouseCoopers LLP
Baltimore, Maryland
Legal Counsel Kirkpatrick & Lockhart LLP
Washington, DC
- --------------------------------------------------------------------------------
Bartlett & Co.
------------------------------
REGISTERED INVESTMENT ADVISORS
36 East Fourth Street, Cincinnati, OH 45202-3896
o 513-345-6212 o 800-800-3609 o FAX 513-621-6462
