Capital Appreciation
Income
ANNUAL REPORT
MARCH 31, 1998
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UTILITY
FUND
.......
EQUITY
FUND
........
GROWTH/VALUE
FUND
.............
AGGRESSIVE GROWTH
FUND
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.
.
.
.
.
.
Countrywide
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Investments
<PAGE>
Countrywide Investments
........................
COUNTRYWIDE STRATEGIC TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
Nationwide: (Toll Free) 800-543-8721
Cincinnati: 629-2000
Rate Line: 579-0999
Shareholder Services
Nationwide: (Toll Free) 800-543-0407
Cincinnati: 629-2050
BOARD OF TRUSTEES
Angelo R. Mozilo, Chairman
Robert H. Leshner, President
Donald L. Bogdon, M.D.
H. Jerome Lerner
Fred A. Rappoport
Oscar P. Robertson
John F. Seymour, Jr.
Sebastiano Sterpa
INVESTMENT ADVISER
Countrywide Investments, Inc.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
TRANSFER AGENT
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only when it is accompanied or
preceded by a current prospectus of Countrywide Strategic Trust.
<PAGE>
LETTER FROM THE CHAIRMAN
================================================================================
[photograph]
Dear Shareholders:
Nearly 30 years ago David Loeb and I envisioned a full-service mortgage company
that would provide homeownership opportunities to people across the country.
Since our inception in 1969, Countrywide Credit Industries, Inc. has
strategically broadened its scope to offer a complete line of finance-related
products, and today, Countrywide is widely recognized as a highly skilled
provider of diversified products and services.
There are currently 17 funds offered through the Countrywide Family of Funds,
comprised of an innovative financial product line designed to meet the diverse
needs of our investors. As we continue to add new funds, shareholders will be
provided with an even broader range of investment choices. Our merger and
acquisition team at Countrywide Investments continually seeks out new
opportunities to grow the financial portfolio. By anticipating the needs of our
investors, Countrywide Investments also works diligently to provide numerous
shareholder services.
As the nation's largest independent residential mortgage lender and servicer,
Countrywide delivers the dream of homeownership to more than 1.8 million
customers. With 430 offices nationwide and more than 8,500 employees,
Countrywide remains focused on steady growth. The diverse line of Countrywide
funds is an important strategy which augments our mortgage lending and servicing
operations.
Countrywide is committed to the needs of our investors. We will continue to
search for and offer financial products and services that will grow shareholder
value. We look forward to the developing financial opportunities as we approach
the turn of the century.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman & Chief Executive Officer
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
[photograph]
Dear Fellow Shareholders:
We are pleased to present Countrywide Strategic Trust's audited annual report
for the fiscal year ended March 31, 1998. This report provides financial data
and performance information for the Utility Fund, Equity Fund, Growth/Value Fund
and Aggressive Growth Fund. These stock Funds represent the four equity products
currently offered among the 17 mutual funds which comprise the Countrywide
Family of Funds.
Financial markets performed well during most of 1997 and into 1998, thanks to a
growing U.S. economy and low inflation. Personal income, spending and saving
continued to increase, while consumer confidence remained near an all-time high.
The housing market, spurred by lower interest rates, experienced record
strength. Inflation stayed under control with the Consumer Price Index up just
1.4% in the past year. Global competition, combined with declining wholesale
costs led by oil and raw materials, kept consumer prices in check.
The stock market staged an impressive broad-based rally during most of the
fiscal year. Although the Asian financial crisis hurt the overall stock market
in the fourth quarter of 1997, U.S. Treasury securities and utility stocks
benefited from a "flight to quality." The bond market rallied in December as the
yield on the 30-year U.S. Treasury bond fell below 6%, providing additional
support for a stock market which surged to record highs in February and March.
Merger and acquisition activity also boosted equity prices across key market
sectors including banks, financial services, technology and telecommunications.
Corporate earnings, the direction of interest rates, the pace of the economy and
the crisis in Asia are likely to be key factors that will impact the financial
markets in the year ahead. While many of these factors remain favorably
positioned, some uncertainty still exists given the strength and persistency of
the economy's performance. We believe, however, that as long as economic
fundamentals remain in place, namely, sustainable growth and moderate inflation,
investors will continue to support both stock and bond markets.
For information on how each Fund performed during the fiscal year ended March
31, 1998, we direct your attention to the Management Discussion and Analyses
which follow on the next several pages.
Countrywide Investments remains committed to providing products and services
that help investors meet their financial goals. Our success has been built on
the confidence investors have extended to us. We thank you for your support and
look forward to continued service to you in the future.
Sincerely,
/s/ Robert H. Leshner
Robert H. Leshner
President
<PAGE>
UTILITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
The Utility Fund seeks a high level of current income by investing primarily in
securities of public utilities. The Fund's total returns for the fiscal year
ended March 31, 1998 (excluding the impact of applicable sales loads) were
40.92% and 39.91% for Class A shares and Class C shares, respectively.
During fiscal 1998, the continued strength in the U.S. economy and lack of
inflationary threats contributed to the strong performance of both the stock and
bond markets. Although most equity indices reached new record highs during the
fiscal year, the stock market's ascent was not without a fairly large setback
that occurred in October 1997 due to concerns over the Asian currency and
economic problems. These problems, while negative for the overall stock market,
were positive for utility stocks as investors flocked to stocks that were
defensive in nature and had very little international exposure. The powerful
rally in utility stocks in the last half of the fiscal year pushed the total
return of these stocks to levels almost equal to that of the overall equity
market. For the fiscal year, the S&P Utility Index returned 36.42%, compared to
the 36.05% return of the Dow Jones Industrial Average and the 48.00% return of
the S&P 500 Index.
While all utility sectors represented in the Fund performed well during the
fiscal year, especially strong performance was seen in the telecommunications
sector as consolidation swept through the industry and the regional bell
operating companies became more aggressive in addressing top line growth and
market share expansion. As a result, our holdings in BellSouth, Ameritech and
Bell Atlantic all enjoyed total returns in excess of 60%. Many of our electric
utility holdings also performed very well, as evidenced by the almost 50% return
of FPL Group. However, despite strong performance, utility funds again did not
participate in the record amounts of new money flowing into the equity markets.
As a result, very few new holdings were added and portfolio turnover has been
minimal over the past two fiscal years.
Our outlook for the utility sector remains optimistic. Favorable levels of
inflation and interest rates, additional industry consolidation and deregulation
should be positive for the industry. With dividend yields on the major indices
hitting record low levels, the higher yields available on utility stocks should
add to their relative attractiveness. The Fund will continue to include in its
portfolio those companies that are well-positioned to increase their revenues
and earnings during the upcoming period of deregulation, with strong management
teams and the ability to increase dividend payouts.
<PAGE>
Comparison of the Change in Value of a $10,000 Investment in the Utility
Fund* and the Standard & Poor's Utility Index
STANDARD & POOR'S UTILITY INDEX: UTILITY FUND (CLASS A):
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
08/16/89 10,000 08/16/89 9,600
09/30/89 2.43% 10,243 09/30/89 0.73% 9,671
12/31/89 11.42% 11,412 12/31/89 6.72% 10,320
03/31/90 -7.45% 10,562 03/31/90 -1.99% 10,115
06/30/90 0.53% 10,618 06/30/90 0.28% 10,144
09/30/90 -4.50% 10,140 09/30/90 -2.86% 9,854
12/31/90 9.67% 11,120 12/31/90 7.19% 10,562
03/31/91 2.22% 11,367 03/31/91 4.61% 11,049
06/30/91 -4.20% 10,889 06/30/91 0.60% 11,115
09/30/91 7.90% 11,749 09/30/91 9.26% 12,144
12/31/91 8.49% 12,746 12/31/91 6.72% 12,960
03/31/92 -9.34% 11,556 03/31/92 -4.66% 12,356
06/30/92 7.79% 12,457 06/30/92 4.44% 12,905
09/30/92 7.88% 13,438 09/30/92 3.82% 13,398
12/31/92 2.53% 13,777 12/31/92 4.14% 13,953
03/31/93 10.79% 15,264 03/31/93 6.84% 14,906
06/30/93 1.86% 15,548 06/30/93 1.50% 15,130
09/30/93 6.70% 16,589 09/30/93 2.82% 15,556
12/31/93 -5.76% 15,634 12/31/93 -3.11% 15,073
03/31/94 -8.50% 14,305 03/31/94 -3.20% 14,591
06/30/94 -0.00% 14,304 06/30/94 -0.83% 14,469
09/30/94 0.45% 14,369 09/30/94 1.32% 14,660
12/31/94 -0.10% 14,355 12/31/94 0.74% 14,769
03/31/95 6.93% 15,349 03/31/95 2.43% 15,128
06/30/95 7.44% 16,491 06/30/95 5.03% 15,890
09/30/95 11.28% 18,350 09/30/95 6.90% 16,986
12/31/95 11.22% 20,409 12/31/95 9.96% 18,677
03/31/96 -4.78% 19,434 03/31/96 -1.46% 18,404
06/30/96 5.01% 20,408 06/30/96 4.77% 19,283
09/30/96 -3.31% 19,732 09/30/96 -3.27% 18,651
12/31/96 6.62% 21,038 12/31/96 5.92% 19,755
03/31/97 -3.38% 20,326 03/31/97 -1.61% 19,437
06/30/97 5.89% 21,524 06/30/97 6.93% 20,784
09/30/97 4.87% 22,573 09/30/97 4.05% 21,626
12/31/97 16.28% 26,248 12/31/97 16.83% 25,266
03/31/98 5.64% 27,729 03/31/98 8.41% 27,390
Past performance is not predictive of future performance.
Utility Fund
Average Annual Total Returns
1 Year 5 Years Since Inception*
Class A 35.28% 12.02% 12.39%
Class C 39.91% -- 12.47%
*The chart above represents performance of Class A shares only, which will vary
from the performance of Class C shares based on the difference in loads and fees
paid by shareholders in the different classes. The initial public offering of
Class A shares commenced on August 15, 1989, and the initial public offering of
Class C shares commenced on August 2, 1993.
<PAGE>
EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
The Equity Fund seeks long-term growth of capital, current income and growth of
income by investing primarily in dividend-paying common stocks. The Fund's total
returns for the fiscal year ended March 31, 1998 (excluding the impact of
applicable sales loads) were 42.74% and 41.63% for Class A shares and Class C
shares, respectively.
The continued strength in the U.S. economy contributed to a powerful rally in
the stock market throughout the fiscal year. Record low levels of unemployment,
high consumer confidence and spending, rising wages and record low levels of
inflation led to a surge in the sales of both durable and non-durable items and
corresponding growth in Gross Domestic Product. As expected, the strong economic
growth led to higher corporate profits and stock prices.
Unlike the prior fiscal year, the current market rally has been broad-based. The
S&P's small, mid and large-cap indices all returned over 47%, with the S&P 500
Index up 48%. The Dow Jones Industrial Average, comprised strictly of large-cap
Blue Chip stocks, gained 36%, and the small-cap Russell 2000 Index was up over
40%. The fear of a slowdown in corporate profits resulting from the problems in
Asia, and the lack of pricing power among many companies and industries, has
redirected investors' interest to those stocks with the potential to provide
solid growth in revenues and earnings, regardless of the size of market
capitalization.
The Fund remained well-diversified throughout the fiscal year. Holdings in the
financial and health care sectors exhibited very strong performance. The
financial services industry benefited from low interest rates, consolidation,
cost cutting and the bull market in both the stock and bond markets. Health care
stocks enjoyed the positive fundamentals brought on by an aging population,
advances in drug therapies and the introduction of new treatments that showed
success in battling some of the most widespread diseases. Cyclical holdings also
performed well as they benefited from the strong economy and increased consumer
spending on items such as entertainment and clothing. The performance of
technology stocks was mixed due to concerns over Asian demand, a slowdown in the
growth rate of personal computer sales and excess inventory of many computer
components. Our holdings in the energy sector performed below expectations as
oil prices plunged over 30% on concerns of excess supply and weakening demand
resulting from the Asian economic crisis. However, longer-term favorable
supply/demand fundamentals and recent technology gains allowing for lower cost
exploration and production should have a positive impact on the energy industry.
We remain optimistic on the longer-term fundamentals facing the market --
falling inflation, accommodating interest rates and moderating economic growth
and corporate profits. Management continues to focus on companies that are
leaders in their industries and can offer growth in revenues, cash flows and
earnings. Emphasis will be placed on those companies that are low cost
producers, as the lack of pricing power, brought on by lower rates of inflation,
global competition and excess capacity, should remain a key concern facing the
stock market.
<PAGE>
Comparison of the Change in Value of a $10,000 Investment in the Equity Fund*
and the Standard & Poor's 500 Index
STANDARD & POOR'S 500 INDEX: EQUITY FUND (CLASS C):
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
06/07/93 10,000 06/07/93 10,000
06/30/93 0.78% 10,078 06/30/93 0.10% 10,010
09/30/93 2.58% 10,338 09/30/93 1.20% 10,130
12/31/93 2.32% 10,578 12/31/93 -1.34% 9,994
03/31/94 -3.79% 10,177 03/31/94 -2.85% 9,709
06/30/94 0.42% 10,220 06/30/94 -4.04% 9,317
09/30/94 4.88% 10,718 09/30/94 5.05% 9,787
12/31/94 -0.02% 10,716 12/31/94 -0.37% 9,751
03/31/95 9.74% 11,760 03/31/95 6.86% 10,419
06/30/95 9.55% 12,883 06/30/95 6.48% 11,095
09/30/95 7.95% 13,907 09/30/95 7.19% 11,893
12/31/95 6.02% 14,744 12/31/95 7.43% 12,776
03/31/96 5.37% 15,535 03/31/96 3.49% 13,222
06/30/96 4.49% 16,232 06/30/96 4.35% 13,797
09/30/96 3.09% 16,734 09/30/96 2.23% 14,105
12/31/96 8.34% 18,129 12/31/96 2.74% 14,491
03/31/97 2.68% 18,615 03/31/97 1.29% 14,678
06/30/97 17.46% 21,865 06/30/97 14.09% 16,746
09/30/97 7.49% 23,503 09/30/97 6.30% 17,801
12/31/97 2.87% 24,178 12/31/97 4.50% 18,603
03/31/98 13.95% 27,550 03/31/98 11.75% 20,788
Past performance is not predictive of future performance.
Equity Fund
Average Annual Total Returns
1 Year Since Inception*
Class A 37.03% 16.80%
Class C 41.63% 16.42%
*The chart above represents performance of Class C shares only, which will
vary from the performance of Class A shares based on the differences in loads
and fees paid by shareholders in the different classes. The initial public
offering of Class C shares commenced on June 7, 1993, and the initial
public offering of Class A shares commenced on August 2, 1993.
<PAGE>
GROWTH/VALUE FUND
AGGRESSIVE GROWTH FUND
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
The Growth/Value Fund seeks long-term capital appreciation primarily through
equity investments in companies whose valuations may not yet reflect the
prospects for accelerated earnings/cash flow growth. For the seven months ended
March 31, 1998, the Fund's total return (excluding the impact of applicable
sales loads) was 6.43%, as compared to 23.64% for the S&P 500 Index. For the
twelve months ended August 31, 1997, the Fund's total return was 47.11% versus
40.65% for the S&P 500 Index.
The Aggressive Growth Fund seeks long-term capital appreciation primarily
through equity investments. The Fund will seek growth opportunities among
companies of various sizes. For the seven months ended March 31, 1998, the
Fund's total return (excluding the impact of applicable sales loads) was
(2.95)%, as compared to 15.95% for the NASDAQ Composite Index. For the twelve
months ended August 31, 1997, the Fund's total return was 49.09% versus 39.54%
for the NASDAQ Composite Index.
The fundamentals of the U.S. economy continue to support a positive long-term
outlook for the equity market. The strength of the European and North American
economies appears to have largely offset the negative implications of the weak
Asian economies. Investor focus on corporate earnings supported by a strong U.S.
economy continued to attract capital to domestic equity markets, leading several
stock market indices to new highs during the period ended March 31, 1998.
Our concentrated sectors each have distinct characteristics supporting long-term
growth. Health care is bolstered by the aging population and productivity gains
stemming from enlightened government reforms. Technology continues to alter
fundamental production and service delivery systems that increase productivity
significantly. Energy demand continues to grow faster than new found reserves
and technological advances are making vast headway in finding and servicing new
oil and gas reserves at costs never imagined even four or five years ago.
Financial services continues to restructure itself with new technology-enabled
systems and the gradual unfolding of regulatory freedoms that allow more
competition and greater responsiveness to fulfilling consumer needs.
We attempt to position the Growth/Value Fund to participate in the bull market
and simultaneously limit the risk profile in such a way as to minimize relative
market losses during downturns. The Aggressive Growth Fund also emphasizes
buying growth at value, but the average capitalization size is much smaller than
that of the Growth/Value Fund. The smaller, and usually younger, aggressive
growth companies add somewhat to the risk/return profile of the Aggressive
Growth Fund.
For the seven month period ended March 31, 1998, our health care and financial
services investments performed strongly. Health care was buoyed by
pharmaceuticals which are continuing to launch new products at an increased pace
in order to meet the growing demands of an aging population. Profit growth and
increased consolidation have bolstered the performance of the financial services
sector. Unfortunately, the energy and technology sectors significantly
underperformed the market indices during this period as both sectors were
plagued by fears stemming from the Asian currency crisis. The energy sector also
dealt with falling oil prices which peaked in October 1997. Since March 31,
1998, these sectors have recovered much of their losses as it appears the market
exaggerated the impact of Asia's problems on U.S. companies. In addition, oil
prices have recovered and stabilized above their recent lows.
Asia's economic slowdown has yet to show a significant impact on the world's
end-user demand. The U.S. economy and financial markets continue to benefit from
low inflation and sustainable moderate growth as corporations remain driven by
competitive forces to innovate and to implement new technologies designed to
enhance productivity. We continue to invest in U.S.-based equities, attempting
to buy quality growth companies at reasonable valuations.
<PAGE>
GROWTH/VALUE FUND
AGGRESSIVE GROWTH FUND
MANAGEMENT DISCUSSION AND ANALYSIS (continued)
================================================================================
Comparison of the Change in Value of a $10,000 Investment in the Growth/Value
Fund and the Standard & Poor's 500 Index
S&P 500 INDEX: (w/ reinvested divds) GROWTH/VALUE FUND:
MONTHLY MONTHLY
DATE RETURN BALANCE DATE RETURN BALANCE
09/29/95 10,000 09/29/95 9,600
12/31/95 5.76% 10,576 12/31/95 5.20% 10,099
03/31/96 5.37% 11,143 03/31/96 8.84% 10,992
06/30/96 4.49% 11,643 06/30/96 0.96% 11,098
09/30/96 3.09% 12,003 09/30/96 1.73% 11,290
12/31/96 8.34% 13,004 12/31/96 7.93% 12,185
03/31/97 2.68% 13,352 03/31/97 0.87% 12,291
06/30/97 17.46% 15,684 06/30/97 17.46% 14,437
09/30/97 7.49% 16,858 09/30/97 13.15% 16,335
12/31/97 2.87% 17,342 12/31/97 -7.67% 15,083
03/31/98 13.95% 19,762 03/31/98 11.41% 16,805
Past performance is not predictive of future performance.
Growth/Value Fund
Average Annual Total Returns
1 Year Since Inception*
31.26% 23.11%
*Fund inception was September 29, 1995.
Comparison of the Change in Value of a $10,000 Investment in the Aggressive
Growth Fund and the NASDAQ Index
NASDAQ: (w/ reinvested divds) AGGRESSIVE GROWTH FUND:
MONTHLY MONTHLY
DATE RETURN BALANCE DATE RETURN BALANCE
09/29/95 10,000 09/29/95 9,600
12/31/95 0.64% 10,064 12/31/95 -0.50% 9,552
03/31/96 4.78% 10,545 03/31/96 8.94% 10,406
06/30/96 7.66% 11,353 06/30/96 3.41% 10,762
09/30/96 3.59% 11,761 09/30/96 2.05% 10,982
12/31/96 5.28% 12,382 12/31/96 7.92% 11,853
03/31/97 -5.32% 11,723 03/31/97 -3.90% 11,391
06/30/97 18.23% 13,860 06/30/97 17.99% 13,440
09/30/97 17.00% 16,216 09/30/97 24.55% 16,740
12/31/97 -6.73% 15,125 12/31/97 -17.13% 13,873
03/31/98 17.02% 17,700 03/31/98 9.64% 15,210
Past performance is not predictive of future performance.
Aggressive Growth Fund
Average Annual Total Returns
1 Year Since Inception*
28.19% 18.29%
*Fund inception was September 29, 1995.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1998
<TABLE>
====================================================================================================================================
Utility Equity
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost................................................... $ 26,049,170 $ 29,760,506
============== ===============
At amortized cost..................................................... $ 26,035,278 $ 29,761,358
============== ===============
At market value (Note 2).............................................. $ 45,035,446 $ 42,165,777
Repurchase agreements (Note 2)........................................... 925,000 --
Cash .................................................................... 2,389 5,731
Receivable for capital shares sold ...................................... 77,589 57,788
Dividends and interest receivable........................................ 147,453 27,320
Other assets............................................................. 3,010 2,091
-------------- ---------------
TOTAL ASSETS.......................................................... 46,190,887 42,258,707
-------------- ---------------
LIABILITIES
Distributions payable.................................................... 39,526 1,936
Payable for capital shares redeemed...................................... 38,419 15,623
Payable to affiliates (Note 4)........................................... 41,692 31,594
Other accrued expenses and liabilities .................................. 11,859 11,558
-------------- ---------------
TOTAL LIABILITIES..................................................... 131,496 60,711
-------------- ---------------
NET ASSETS .............................................................. $ 46,059,391 $ 42,197,996
-------------- ---------------
Net assets consist of:
Paid-in capital.......................................................... $ 27,059,170 $ 29,793,481
Accumulated net realized gains from security transactions................ 53 96
Net unrealized appreciation on investments .............................. 19,000,168 12,404,419
-------------- ---------------
Net assets .............................................................. $ 46,059,391 $ 42,197,996
============== ===============
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares ............................... $ 42,462,857 $ 38,336,423
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 2,533,479 1,978,069
============== ===============
Net asset value and redemption price per share (Note 2).................. $ 16.76 $ 19.38
============== ===============
Maximum offering price per share (Note 2)................................ $ 17.46 $ 20.19
============== ===============
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares ............................... $ 3,596,534 $ 3,861,573
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 214,888 199,685
============== ===============
Net asset value, offering price and redemption price per share (Note 2).. $ 16.74 $ 19.34
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1998
====================================================================================================================================
Growth/ Aggressive
Value Growth
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost................................................... $ 20,435,726 $ 11,208,129
============== ===============
At amortized cost..................................................... $ 20,435,726 $ 11,208,150
============== ===============
At market value (Note 2).............................................. $ 28,547,955 $ 15,463,566
Cash .................................................................... -- 3,403
Receivable for capital shares sold....................................... 89,684 40,607
Receivable for securities sold........................................... 935,800 --
Dividends and interest receivable........................................ 14,488 1,990
Organization costs, net (Note 2)......................................... 15,876 15,876
Other assets............................................................. 2,068 1,230
-------------- ---------------
TOTAL ASSETS.......................................................... 29,605,871 15,526,672
-------------- --------------
LIABILITIES
Bank overdraft........................................................... 914,312 --
Payable for capital shares redeemed...................................... 675 2,990
Payable to affiliates (Note 4)........................................... 32,558 23,326
Other accrued expenses and liabilities................................... 9,073 4,992
-------------- ---------------
TOTAL LIABILITIES..................................................... 956,618 31,308
-------------- ---------------
NET ASSETS .............................................................. $ 28,649,253 $ 15,495,364
============== ===============
Net assets consist of:
Paid-in capital.......................................................... $ 20,133,868 $ 11,354,846
Accumulated net realized gains (losses) from security transactions....... 403,156 (114,898 )
Net unrealized appreciation on investments............................... 8,112,229 4,255,416
-------------- ---------------
Net assets............................................................... $ 28,649,253 $ 15,495,364
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 1,757,393 980,105
============== ===============
Net asset value and redemption price per share (Note 2).................. $ 16.30 $ 15.81
============== ===============
Maximum offering price per share (Note 2)................................ $ 16.98 $ 16.47
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Year Ended March 31, 1998
====================================================================================================================================
Utility Equity
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends ............................................................ $ 1,492,949 $ 291,509
Interest ............................................................. 240,402 237,569
-------------- ---------------
TOTAL INVESTMENT INCOME ............................................ 1,733,351 529,078
-------------- ---------------
EXPENSES
Investment advisory fees (Note 4) .................................... 303,151 221,798
Accounting services fees (Note 4) .................................... 40,500 40,500
Distribution expenses, Class A (Note 4)............................... 45,189 27,099
Distribution expenses, Class C (Note 4) .............................. 12,633 14,470
Transfer agent fees, Class A (Note 4)................................. 34,182 15,011
Transfer agent fees, Class C (Note 4)................................. 12,000 12,000
Postage and
supplies................................................................. 22,868 11,857
Professional fees .................................................... 16,027 15,238
Registration fees, Common ............................................ 3,462 2,539
Registration fees, Class A ........................................... 5,604 8,060
Registration fees, Class C ........................................... 4,544 4,150
Trustees' fees
and expenses ............................................................ 7,868 7,868
Custodian fees ....................................................... 5,926 4,418
Reports to shareholders .............................................. 5,832 2,721
Insurance expense .................................................... 4,670 2,826
Other expenses ....................................................... 5,138 4,225
-------------- ---------------
TOTAL EXPENSES ..................................................... 529,594 394,780
-------------- ---------------
NET INVESTMENT INCOME ................................................... 1,203,757 134,298
-------------- ---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions ........................ 396,431 131,522
Net change in unrealized appreciation/depreciation on investments..... 12,365,467 9,717,678
-------------- ---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ........................ 12,761,898 9,849,200
-------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............................. $ 13,965,655 $ 9,983,498
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Periods Ended March 31, 1998 and August 31, 1997
====================================================================================================================================
Growth/Value Fund Aggressive Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seven Months Year Seven Months Year
Ended Ended Ended Ended
March 31, August 31, March 31, August 31,
1998(A) 1997 1998(A) 1997
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends................................... $ 108,061 $ 153,095 $ 16,540 $ 14,849
Interest.................................... 12,255 36,676 8,332 19,827
------------ -------------- ------------- -------------
TOTAL INVESTMENT INCOME................... 120,316 189,771 24,872 34,676
------------ -------------- ------------- -------------
EXPENSES
Investment advisory fees (Note 4)........... 160,090 206,612 85,703 94,159
Accounting services fees (Note 4)........... 16,000 36,000 16,000 36,000
Shareholder service fees (Note 4)........... -- 51,654 -- 23,540
Professional fees........................... 11,477 25,081 8,477 24,383
Transfer agent fees (Note 4)................ 6,450 28,000 6,725 27,079
Distribution expenses (Note 4).............. 38,951 -- 17,888 --
Administration fees (Note 4)................ -- 30,995 -- 24,866
Registration fees........................... 10,007 2,666 13,709 2,522
Custodian fees.............................. 8,636 5,121 4,785 3,192
Amortization of organization costs (Note 2). 3,708 6,351 3,708 6,351
Trustees' fees and expenses................. 3,498 1,646 3,498 734
Reports to shareholders..................... 542 2,885 605 1,282
Insurance expense........................... 1,076 1,619 794 686
Other expenses.............................. 5,903 5,765 5,311 2,838
------------ -------------- ------------- -------------
TOTAL EXPENSES............................ 266,338 404,395 167,203 247,632
Fees waived by the Adviser (Note 4)......... -- -- -- (64,077 )
------------ -------------- ------------- -------------
NET EXPENSES.............................. 266,338 404,395 167,203 183,555
------------ -------------- ------------- -------------
NET INVESTMENT LOSS ........................... (146,022) (214,624) (142,331) (148,879)
------------ -------------- ------------- -------------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from
security transactions 1,566,803 894,909 241,580 (356,478 )
Net change in unrealized appreciation/
depreciation on investments .............. 437,753 7,431,395 (458,321 ) 4,653,168
------------ -------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES) ON INVESTMENTS ............. 2,004,556 8,326,304 (216,741 ) 4,296,690
------------ -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ........................... $ 1,858,534 $ 8,111,680 $ (359,072 ) $ 4,147,811
============ ============== ============= =============
A)Effective as of the close of business on August 29, 1997, the Growth/Value Fund and Aggressive Growth Fund
were reorganized and the fiscal year-end of each Fund, subsequent to August 31, 1997, was changed to March 31 (Note 6).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET
ASSETS For the Years Ended March 31, 1998 and 1997
====================================================================================================================================
Utility Equity
Fund Fund
Year Year Year Year
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income....................... $ 1,203,757 $ 1,528,551 $ 134,298 $ 116,042
Net realized gains from security transactions 396,431 349,605 131,522 482,875
Net change in unrealized appreciation/
depreciation on investments............... 12,365,467 517,054 9,717,678 952,569
------------ -------------- ------------- -------------
Net increase in net assets from operations..... 13,965,655 2,395,210 9,983,498 1,551,486
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A......... (1,131,462) (1,429,043) (134,305 ) (112,251)
From net investment income, Class C......... (72,537) (99,266) -- (3,811)
From net realized gains on security
transactions, Class A (598,344) (62,089) (266,654) (43,452)
From net realized gains on security
transactions, Class C (49,575) (5,448) (29,203) (9,121)
------------ -------------- ------------- -------------
Decrease in net assets from distributions
to shareholders (1,851,918) (1,595,846) (430,162 ) (168,635)
------------ -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
CLASS A
Proceeds from shares sold................... 6,395,680 3,695,972 27,157,778 7,488,016
Net asset value of shares issued in
reinvestment of distributions to shareholders 1,560,076 1,310,464 393,608 149,729
Payments for shares redeemed................ (12,764,160) (10,075,932) (12,645,062) (2,279,007)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets from
Class A share transactions.................. (4,808,404) (5,069,496) 14,906,324 5,358,738
------------ -------------- ------------- -------------
CLASS C
Proceeds from shares sold................... 343,251 978,844 386,194 665,009
Net asset value of shares issued in
reinvestment of distributions to shareholders 112,220 90,743 29,105 12,637
Payments for shares redeemed................ (887,840) (1,723,275) (429,754) (604,567)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets from
Class C share transactions.................. (432,369) (653,688) (14,455 ) 73,079
------------ -------------- ------------- -------------
Net increase (decrease) from capital share
transactions (5,240,773) (5,723,184) 14,891,869 5,431,817
------------ -------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....... 6,872,964 (4,923,820) 24,445,205 6,814,668
NET ASSETS:
Beginning of year........................... 39,186,427 44,110,247 17,752,791 10,938,123
------------ -------------- ------------- -------------
End of year................................. $ 46,059,391 $ 39,186,427 $42,197,996 $17,752,791
============ ============== ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME ......... $ -- $ 242 $ -- $ 7
============ ============== ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1998 and August 31, 1997 and 1996
====================================================================================================================================
Growth/Value Fund Aggressive Growth Fund
Seven Months Year Period Seven Months Year Period
Ended Ended Ended Ended Ended Ended
March 31, August 31, August 31, March 31, August 31, August 31,
1998(A) 1997 1996(B) 1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment loss..................... $(146,022) $(214,624) $(50,747) $(142,331) $(148,879) $(39,525)
Net realized gains (losses) from
security transactions 1,566,803 894,909 89,352 241,580 (356,478) 43,284
Net change in unrealized appreciation/
depreciation on investments........... 437,753 7,431,395 243,081 (458,321) 4,653,168 60,569
---------- ---------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from operations 1,858,534 8,111,680 281,686 (359,072) 4,147,811 64,328
---------- ---------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
From net realized gains on security
transactions (1,021,333) (888,542) -- -- (16,180) --
---------- ---------- --------- --------- --------- ---------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
Proceeds from shares sold .............. 6,013,814 9,367,824 15,471,301 4,724,918 5,211,479 7,269,024
Net asset value of shares issued in
reinvestment of distributions to
shareholders 348,462 260,810 -- -- 4,532 --
Payments for shares redeemed .............. (5,328,293) (5,181,368) (645,322) (2,854,217) (1,913,821) (783,438)
---------- ---------- --------- --------- ---------- ---------
Net increase in net assets from capital
share transactions 1,033,983 4,447,266 14,825,979 1,870,701 3,302,190 6,485,586
---------- ---------- ---------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS ............. 1,871,184 11,670,404 15,107,665 1,511,629 7,433,821 6,549,914
NET ASSETS:
Beginning of period..................... 26,778,069 15,107,665 -- 13,983,735 6,549,914 --
---------- ---------- --------- --------- --------- ---------
End of period........................... $28,649,253 $26,778,069 $15,107,665 $15,495,364 $13,983,735 $6,549,914
============ =========== =========== =========== =========== ===========
(A)Effective as of the close of business on August 29, 1997, the Growth/Value Fund and Aggressive Growth Fund were reorganized
and the fiscal year-end of each Fund, subsequent to August 31, 1997, was changed to March 31 (Note 6).
(B)Represents the period from the commencement of operations (September 29, 1995) through August 31, 1996.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Year
====================================================================================================================================
Years Ended March 31,
1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 12.44 $ 12.24 $ 10.47 $ 10.52 $ 11.34
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income........................ 0.43 0.46 0.47 0.43 0.37
Net realized and unrealized gains (losses) on
investments 4.56 0.22 1.77 (0.05 ) (0.59 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 4.99 0.68 2.24 0.38 (0.22 )
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income......... (0.43) (0.46) (0.47) (0.43 ) (0.37 )
Distributions from net realized gains........ (0.24) (0.02) -- -- (0.23 )
---------- --------- ---------- --------- ----------
Total distributions............................. (0.67) (0.48) (0.47) (0.43 ) (0.60 )
---------- --------- ---------- --------- ----------
Net asset value at end of year.................. $ 16.76 $ 12.44 $ 12.24 $ 10.47 $ 10.52
========== ========= ========== ========= ==========
Total return(A) ................................ 40.92% 5.61% 21.65% 3.68% (2.11% )
========== ========= ========== ========= ==========
Net assets at end of year (000's)............... $ 42,463 $ 36,087 $ 40,424 $ 40,012 $40,373
========== ========= ========== ========= ==========
Ratio of expenses to average net assets......... 1.25% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income to average net assets 3.03% 3.65% 3.97% 4.06% 3.32%
Portfolio turnover rate ........................ 0% 3% 11% 17% 91%
Average commission rate per share(B) ........... $ 0.0985 $ 0.1200 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Beginning with the year ended March 31, 1997, the Fund is required to disclose its average commission rate per share for
security trades on which commissions are charged.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Period
Years Ended March 31, Ended
March 31,
1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 12.43 $ 12.23 $ 10.46 $ 10.51 $ 11.55
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income........................ 0.31 0.35 0.37 0.35 0.23
Net realized and unrealized gains (losses) on
investments 4.57 0.24 1.78 (0.04 ) (0.81 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 4.88 0.59 2.15 0.31 (0.58 )
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income......... (0.33) (0.37) (0.38) (0.36 ) (0.23 )
Distributions from net realized gains........ (0.24) (0.02) -- -- (0.23 )
---------- --------- ---------- --------- ----------
Total distributions............................. (0.57) (0.39) (0.38) (0.36 ) (0.46 )
---------- --------- ---------- --------- ----------
Net asset value at end of period................ $ 16.74 $ 12.43 $ 12.23 $ 10.46 $ 10.51
========== ========= ========== ========= ==========
Total return(B) ................................ 39.91% 4.82% 20.78% 3.00% (7.89%)(D)
========== ========= ========== ========= ==========
Net assets at end of period (000's)............. $ 3,597 $ 3,099 $ 3,686 $ 3,599 $ 1,742
========== ========= ========== ========= ==========
Ratio of expenses to average net assets ........ 2.00% 2.00% 2.00% 2.00% 2.00% (D)
Ratio of net investment income to average net assets 2.28% 2.89% 3.19% 3.41% 2.19% (D)
Portfolio turnover rate......................... 0% 3% 11% 17% 91% (D)
Average commission rate per share(C) .......... $ 0.0985 $ 0.1200 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Represents the period from date of public offering (August 2, 1993) through March 31, 1994.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Beginning with the year ended March 31, 1997, the Fund is required to disclose its average commission rate per share
for security trades on which commissions are charged.
(D) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Period
Years Ended March 31, Ended
March 31,
1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 13.76 $ 12.45 $ 9.84 $ 9.26 $ 10.02
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income........................ 0.09 0.12 0.13 0.15 0.08
Net realized and unrealized gains (losses) on
investments 5.76 1.35 2.60 0.59 (0.34 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 5.85 1.47 2.73 0.74 (0.26 )
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income......... (0.08) (0.12) (0.12) (0.16 ) (0.08 )
Distributions from net realized gains........ (0.15) (0.04) -- -- (0.42 )
---------- --------- ---------- --------- ----------
Total distributions............................. (0.23) (0.16) (0.12) (0.16 ) (0.50 )
---------- --------- ---------- --------- ----------
Net asset value at end of period................ $ 19.38 $ 13.76 $ 12.45 $ 9.84 $ 9.26
========== ========= ========== ========= ==========
Total return(B) ................................ 42.74% 11.82% 27.90% 8.07% (3.98%)(E)
========== ========= ========== ========= ==========
Net assets at end of period (000's)............. $ 38,336 $ 14,983 $ 8,502 $ 4,300 $ 3,346
========== ========= ========== ========= ==========
Ratio of net expenses to average net assets(C) 1.25% 1.25% 1.25% 1.25% 1.24% (E)
Ratio of net investment income to average net assets 0.53% 0.91% 1.06% 1.57% 0.82% (E)
Portfolio turnover rate......................... 7% 38% 38% 159% 109% (E)
Average commission rate per share(D) ........... $ 0.1017 $ 0.1199 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Represents the period from date of public offering (August 2, 1993) through March 31, 1994.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Absent fee waivers and/or expense reimbursements by the Adviser, the ratios of expenses to average net assets would have been
1.43%, 2.02%, 1.94% and 2.04%(E) for the periods ended March 31, 1997, 1996, 1995 and 1994, respectively.
(D) Beginning with the year ended March 31, 1997, the Fund is required to disclose its average commission rate per share for
security trades on which commissions are charged.
(E) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Period
Years Ended March 31, Ended
March 31,
1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 13.77 $ 12.46 $ 9.86 $ 9.26 $ 10.00
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income (loss)................. (0.03 ) 0.02 0.05 0.10 0.03
Net realized and unrealized gains (losses) on
investments 5.75 1.35 2.60 0.57 (0.32 )
---------- --------- ---------- --------- ----------
Total from investment operations................ 5.72 1.37 2.65 0.67 (0.29 )
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income......... -- (0.02) (0.05) (0.07 ) (0.03 )
Distributions from net realized gains........ (0.15) (0.04) -- -- (0.42 )
---------- --------- ---------- --------- ----------
Total distributions............................. (0.15) (0.06) (0.05) (0.07 ) (0.45 )
---------- --------- ---------- --------- ----------
Net asset value at end of period................ $ 19.34 $ 13.77 $ 12.46 $ 9.86 $ 9.26
========== ========= ========== ========= ==========
Total return(B) ................................ 41.63% 11.01% 26.90% 7.32% (3.58%)(E)
========== ========= ========== ========= ==========
Net assets at end of period (000's)............. $ 3,862 $ 2,770 $ 2,436 $ 1,995 $ 5,857
========== ========= ========== ========= ==========
Ratio of net expenses to average net assets(C) 2.00% 2.00% 2.00% 2.00% 1.94% (E)
Ratio of net investment income (loss) to average
net assets (0.18% ) 0.15% 0.38% 0.68% 0.58% (E)
Portfolio turnover rate......................... 7% 38% 38% 159% 109% (E)
Average commission rate per share(D) ........... $ 0.1017 $ 0.1199 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Represents the period from date of public offering (June 7, 1993) through March 31, 1994.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Absent fee waivers and/or expense reimbursements by the Adviser, the ratios of expenses to average net assets would have been
2.14%, 2.70%, 2.50% and 2.33%(E) for the periods ended March 31, 1997, 1996, 1995 and 1994, respectively.
(D) Beginning with the year ended March 31, 1997, the Fund is required to disclose its average commission rate per share for
security trades on which commissions are charged.
(E) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Seven Months Year Period
Ended Ended Ended
March 31, August 31, August 31,
1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................. $ 15.90 $ 11.18 $ 10.00
-------------- -------------- ---------------
Income from investment operations:
Net investment loss.................................. (0.08) (0.13 ) (0.06)(C)
Net realized and unrealized gains on investments..... 1.05 5.39 1.24
-------------- -------------- ---------------
Total from investment operations........................ 0.97 5.26 1.18
-------------- -------------- ---------------
Less distributions:
Distributions from net realized gains................ (0.57) (0.54 ) --
-------------- -------------- ---------------
Net asset value at end of period........................ $ 16.30 $ 15.90 $ 11.18
============== ============== ===============
Total return(D) ........................................ 6.43% 47.11% 11.80%
============== ============== ===============
Net assets at end of period (000's)..................... $ 28,649 $ 26,778 $ 15,108
============== ============== ===============
Ratio of net expenses to average net assets(E) ......... 1.66%(F) 1.95% 1.95% (F)
Ratio of net investment loss to average net assets...... (0.91%)(F) (1.03% ) (0.62%) (F)
Portfolio turnover rate................................. 62% (F) 52% 21%
Average commission rate per share....................... $ 0.0600 $ 0.0554 $ 0.0700
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Effective as of the close of business on August 29, 1997, the Fund was reorganized and its fiscal year-end, subsequent to
August 31, 1997, was changed to March 31 (Note 6).
(B) Represents the period from the commencement of operations (September 29, 1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Total returns shown exclude the effect of applicable sales loads.
(E) Absent fee waivers and/or expense reimbursements, the ratio of expenses to average net assets would have been 2.83%(F) for
the period ended August 31, 1996.
(F) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Seven Months Year Period
Ended Ended Ended
March 31, August 31, August 31,
1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................. $ 16.29 $ 10.95 $ 10.00
-------------- -------------- ---------------
Income from investment operations:
Net investment loss.................................. (0.15) (0.17 ) (0.11)(C)
Net realized and unrealized gains on investments..... (0.33) 5.54 1.06
-------------- -------------- ---------------
Total from investment operations........................ (0.48) 5.37 0.95
-------------- -------------- ---------------
Less distributions:
Distributions from net realized gains................ -- (0.03 ) --
-------------- -------------- ---------------
Net asset value at end of period........................ $ 15.81 $ 16.29 $ 10.95
============== ============== ===============
Total return(D) ........................................ (2.95%) 49.09% 9.50%
============== ============== ===============
Net assets at end of period (000's)..................... $ 15,495 $ 13,984 $ 6,550
============== ============== ===============
Ratio of net expenses to average net assets(E) ......... 1.95% (F) 1.94% 1.95% (F)
Ratio of net investment loss to average net assets...... (1.66%)(F) (1.57% ) (1.26%)(F)
Portfolio turnover rate................................. 40% (F) 51% 16%
Average commission rate per share....................... $ 0.0600 $ 0.0534 $ 0.0800
- ------------------------------------------------------------------------------------------------------------------------------------
(A) Effective as of the close of business on August 29, 1997, the Fund was reorganized and its fiscal year-end, subsequent to
August 31, 1997, was changed to March 31 (Note 6).
(B) Represents the period from the commencement of operations (September 29, 1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Total returns shown exclude the effect of applicable sales loads.
(E) Absent fee waivers and/or expense reimbursements, the ratios of expenses to average net assets would have been 2.62% and
5.05%(F) for the periods ended August 31, 1997 and 1996, respectively.
(F) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
================================================================================
1. ORGANIZATION
The Utility Fund, Equity Fund, Growth/Value Fund and Aggressive Growth Fund
(collectively, the Funds) are each a series of Countrywide Strategic Trust (the
Trust). The Trust is registered under the Investment Company Act of 1940 as an
open-end management investment company. The Trust was established as a
Massachusetts business trust under a Declaration of Trust dated November 18,
1982. The Declaration of Trust, as amended, permits the Trustees to issue an
unlimited number of shares of each Fund.
The Growth/Value Fund and Aggressive Growth Fund were originally organized as
series of Trans Adviser Funds, Inc. The periods ended March 31, 1998, referred
to within the Notes to Financial Statements, represent the year then ended,
except for the Growth/Value Fund and Aggressive Growth Fund which represent the
seven months then ended (Note 6).
The Utility Fund seeks a high level of current income. Capital appreciation is a
secondary objective. The Fund invests primarily in common, preferred and
convertible preferred stocks of public utilities that currently pay dividends.
The Fund also invests in investment grade bonds of public utilities. The public
utilities industry includes companies that produce or supply electric power,
natural gas, water, sanitary services, telecommunications and other
communications services (but not radio or television broadcasters) for public
use or consumption.
The Equity Fund seeks long-term growth of capital, current income and growth of
income by investing primarily in dividend-paying common stocks. The Fund's
investment adviser, in selecting securities for purchase, employs a quantitative
screening strategy, searching for securities believed to offer above market
growth at below market pricing.
The Growth/Value Fund seeks long-term capital appreciation primarily through
equity investments in companies whose valuations may not reflect the prospect
for accelerating earnings/cash flow growth. The Fund seeks to achieve its
objective by investing primarily in common stocks but also in preferred stocks,
convertible bonds and warrants of companies which, in the opinion of the Fund's
investment adviser, are expected to achieve growth of investment principal over
time. Investments are largely made in companies of greater than $750 million
capitalization.
The Aggressive Growth Fund seeks long-term capital appreciation primarily
through equity investments. The Fund seeks growth opportunities among companies
of various sizes. The Fund seeks to achieve its objective by investing primarily
in common stocks, but also in preferred stocks, convertible bonds, options and
warrants of companies which, in the opinion of the Fund's investment adviser,
are expected to achieve growth of investment principal over time. Many of these
companies are in the small to medium-sized category (companies with market
capitalizations of less than $750 million at the time of purchase).
The Utility Fund and Equity Fund each offer two classes of shares: Class A
shares (sold subject to a maximum front-end sales load of 4% and a distribution
fee of up to 0.25% of average daily net assets) and Class C shares (sold subject
to a maximum contingent deferred sales load of 1% if redeemed within a one-year
period from purchase and a distribution fee of up to 1% of average daily net
assets). Each Class A and Class C share of a Fund represents identical interests
in the investment portfolio of such Fund and has the same rights, except that
(i) Class C shares bear the expenses of higher distribution fees, which is
expected to cause Class C shares to have a higher expense ratio and to pay lower
dividends than Class A shares; (ii) certain other class specific expenses will
be borne solely by the class to which such expenses are attributable; and (iii)
each class has exclusive voting rights with respect to matters relating to its
own distribution arrangements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
<PAGE>
Security valuation -- The Funds' portfolio securities are valued as of the close
of the regular session of trading on the New York Stock Exchange (currently 4:00
p.m., Eastern time). Portfolio securities traded on stock exchanges and
securities traded in the over-the-counter market are valued at their last sales
price as of the close of the regular session of trading on the day the
securities are being valued. Securities not traded on a particular day, or for
which the last sale price is not readily available, are valued at their last
broker-quoted bid prices as obtained from one or more of the major market makers
for such securities by an independent pricing service. Securities for which
market quotations are not readily available are valued at their fair value as
determined in good faith in accordance with consistently applied procedures
established by and under the general supervision of the Board of Trustees.
Repurchase agreements -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian, at the Federal
Reserve Bank of Cleveland. At the time each Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying securities,
including accrued interest, will at all times be equal to or exceed the face
amount of the repurchase agreement.
Share valuation -- The net asset value per share of each class of shares of the
Utility Fund and Equity Fund is calculated daily by dividing the total value of
the Fund's assets attributable to that class, less liabilities attributable to
that class, by the number of shares of that class outstanding. The maximum
offering price per share of Class A shares of each Fund is equal to the net
asset value per share plus a sales load equal to 4.17% of the net asset value
(or 4% of the offering price). The offering price of Class C shares of each Fund
is equal to the net asset value per share.
The net asset value per share of the Growth/Value Fund and Aggressive Growth
Fund is calculated daily by dividing the total value of each Fund's assets, less
liabilities, by the number of shares outstanding. The maximum offering price per
share of the Growth/Value Fund and Aggressive Growth Fund is equal to the net
asset value per share plus a sales load equal to 4.17% of the net asset value
(or 4% of the offering price).
The redemption price per share of each Fund, including each class of shares with
respect to the Utility Fund and Equity Fund, is equal to the net asset value per
share. However, Class C shares of the Utility Fund and Equity Fund are subject
to a contingent deferred sales load of 1% of the original purchase price if
redeemed within a one-year period from the date of purchase.
Investment income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date. Discounts and premiums on securities purchased
are amortized in accordance with income tax regulations which approximate
generally accepted accounting principles.
Distributions to shareholders -- Dividends arising from net investment income,
if any, are declared and paid quarterly to shareholders of the Utility Fund and
Equity Fund and annually to shareholders of the Growth/Value Fund and Aggressive
Growth Fund. With respect to each Fund, net realized short-term capital gains,
if any, may be distributed throughout the year and net realized long-term
capital gains, if any, are distributed at least once each year. Income dividends
and capital gain distributions are determined in accordance with income tax
regulations.
Allocations between classes -- Investment income earned, realized capital gains
and losses, and unrealized appreciation and depreciation for the Utility Fund
and Equity Fund are allocated daily to each class of shares based upon its
proportionate share of total net assets of the Fund. Class specific expenses are
charged directly to the class incurring the expense. Common expenses which are
not attributable to a specific class are allocated daily to each class of shares
based upon its proportionate share of total net assets of the Fund.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
<PAGE>
Organization costs -- Costs incurred by the Growth/Value Fund and Aggressive
Growth Fund in connection with their organization and registration of shares,
net of certain expenses, have been capitalized and are being amortized on a
straight-line basis over a five year period beginning with each Fund's
commencement of operations.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable 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 the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also 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 ending October 31) plus undistributed amounts from prior years.
<TABLE>
<CAPTION>
The following information is based upon the federal income tax cost of portfolio
investments (excluding repurchase agreements) as of March 31, 1998:
- ------------------------------------------------------------------------------------------------------------------------------------
Growth/ Aggressive
Utility Equity Value Growth
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation.................. $ 19,000,168 $ 12,718,395 $ 9,124,199 $ 4,708,202
Gross unrealized depreciation.................. -- (313,976) (1,011,970 ) (452,786 )
------------ -------------- ------------- -------------
Net unrealized appreciation.................... $ 19,000,168 $ 12,404,419 $ 8,112,229 $ 4,255,416
------------ -------------- ------------- -------------
Federal income tax cost........................ $ 26,035,278 $ 29,761,358 $20,435,726 $11,208,150
------------ -------------- ------------- -------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
As of March 31, 1998, the Aggressive Growth Fund had capital loss carryforwards
for federal income tax purposes of $114,898. The Fund intends to utilize these
capital loss carryforwards in future years to offset net realized capital gains
prior to distributing such gains to shareholders.
Reclassification of capital accounts -- For the period ended March 31, 1998, the
Growth/Value Fund reclassified $142,314 of its $146,022 net investment loss
against accumulated net realized gains from security transactions and $3,708
against paid-in capital on the Statements of Assets and Liabilities. The
Aggressive Growth Fund reclassified its entire $142,331 net investment loss
against paid-in capital. Such reclassifications, the result of permanent
differences between financial statement and income tax reporting requirements,
have no effect on each Fund's net assets or net asset value per share.
<TABLE>
<CAPTION>
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) were as follows for the periods ended March 31, 1998:
- ------------------------------------------------------------------------------------------------------------------------------------
Growth/ Aggressive
Utility Equity Value Growth
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases of investment securities............. $ -- $ 15,209,475 $ 9,782,142 $ 5,177,534
============ ============== ============= =============
Proceeds from sales and maturities of investment
securities $ 4,177,640 $ 1,678,969 $10,444,800 $ 3,361,596
============ ============== ============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
4. TRANSACTIONS WITH AFFILIATES
The Chairman and the President of the Trust are also officers of Countrywide
Financial Services, Inc., whose subsidiaries include Countrywide Investments,
Inc. (the Adviser), the Trust's investment adviser and principal underwriter,
and Countrywide Fund Services, Inc. (CFS), the Trust's transfer agent,
shareholder service agent and accounting services agent. Countrywide Financial
Services, Inc. is a wholly-owned subsidiary of Countrywide Credit Industries,
Inc., a New York Stock Exchange listed company principally engaged in the
business of residential mortgage lending.
MANAGEMENT AGREEMENTS
Each Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, the Utility Fund and
Equity Fund each pay the Adviser a fee, which is computed and accrued daily and
paid monthly, at an annual rate of 0.75% of its respective average daily net
assets up to $200 million; 0.70% of such net assets from $200 million to $500
million; and 0.50% of such net assets in excess of $500 million. The
Growth/Value Fund and Aggressive Growth Fund each pay the Adviser a fee, which
is computed and accrued daily and paid monthly, at an annual rate of 1.00% of
its respective average daily net assets up to $50 million; 0.90% of such net
assets from $50 million to $100 million; 0.80% of such net assets from $100
million to $200 million; and 0.75% of such net assets in excess of $200 million.
Mastrapasqua and Associates, Inc. (Mastrapasqua) has been retained by the
Adviser to manage the investments of the Growth/Value Fund and Aggressive Growth
Fund. The Adviser (not the Funds) pays Mastrapasqua a fee, which is computed and
accrued daily and paid monthly, at an annual rate of 0.60% of each Fund's
respective average daily net assets up to $50 million; 0.50% of such net assets
from $50 million to $100 million; 0.40% of such net assets from $100 million to
$200 million; and 0.35% of such net assets in excess of $200 million.
The Adviser has agreed, until at least August 31, 1999, to waive fees and
reimburse expenses to the extent necessary to limit total operating expenses of
the Growth/Value Fund and Aggressive Growth Fund to 1.95% of each Fund's average
daily net assets.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and CFS, CFS maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, CFS receives a monthly fee at an annual
rate of $17 per shareholder account from each Fund, subject to a $1,000 minimum
monthly fee for each Fund, or for each class of shares of a Fund, as applicable.
In addition, each Fund pays out-of-pocket expenses including, but not limited
to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and CFS,
CFS calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, CFS receives a monthly fee,
based on current asset levels, of $3,000 from each of the Utility Fund and
Equity Fund and $2,000 from each of the Growth/Value Fund and Aggressive Growth
Fund. In addition, each Fund pays certain out-of-pocket expenses incurred by CFS
in obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
The Adviser is the Funds' principal underwriter and, as such, acts as the
exclusive agent for distribution of the Funds' shares. Under the terms of the
Underwriting Agreement between the Trust and the Adviser, the Adviser earned
$3,922, $2,156, $6,482 and $6,558 from underwriting and broker commissions on
the sale of shares of the Utility Fund, Equity Fund, Growth/Value Fund and
Aggressive Growth Fund, respectively, for the periods ended March 31, 1998. In
addition, the Adviser collected $1,756 and $957 of contingent deferred sales
loads on the redemption of Class C shares of the Utility Fund and Equity Fund,
respectively.
<PAGE>
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which shares of each
Fund having one class of shares and Class A shares of each Fund having two
classes of shares may directly incur or reimburse the Adviser for expenses
related to the distribution and promotion of shares. The annual limitation for
payment of such expenses under the Class A Plan is 0.25% of average daily net
assets attributable to such shares.
The Trust also has a Plan of Distribution (Class C Plan) under which Class C
shares of each Fund having two classes of shares may directly incur or reimburse
the Adviser for expenses related to the distribution and promotion of shares.
The annual limitation for payment of such expenses under the Class C Plan is 1%
of average daily net assets attributable to Class C shares.
PRIOR AFFILIATE AGREEMENTS
Prior to August 30, 1997, the investment adviser of the Growth/Value Fund and
Aggressive Growth Fund was Trans Financial Bank, N.A.; Forum Financial Corp.
served as the transfer agent and dividend disbursing agent and performed
portfolio accounting services; Forum Financial Services, Inc. acted as
distributor of each Fund's shares; and Forum Administrative Services, LLC
supervised the administration of all aspects of each Fund's operations.
Contractual amounts paid by the Funds for the performance of these services are
reflected in each Fund's Statement of Operations for the year ended August 31,
1997. As of March 31, 1998, Trans Financial Bank, N.A. was a significant
shareholder of record of the Growth/Value Fund and Aggressive Growth Fund.
<TABLE>
<CAPTION>
5. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares as shown in the Statements of Changes in
Net Assets are the result of the following capital share transactions for the
periods shown:
- ------------------------------------------------------------------------------------------------------------------------------------
Utility Equity
Fund Fund
Year Year Year Year
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.................................... 441,718 295,396 1,675,833 562,866
Shares issued in reinvestment of distributions
to shareholders............................. 105,777 104,692 22,496 11,085
Shares redeemed................................ (914,263) (802,704) (808,858 ) (168,288)
------------ -------------- ------------- -------------
Net increase (decrease) in shares outstanding.. (366,768) (402,616) 889,471 405,663
Shares outstanding, beginning of year.......... 2,900,247 3,302,863 1,088,598 682,935
------------ -------------- ------------- -------------
Shares outstanding, end of year................ 2,533,479 2,900,247 1,978,069 1,088,598
============ ============== ============= =============
CLASS C
Shares sold.................................... 23,316 79,210 23,254 50,018
Shares issued in reinvestment of distributions
to shareholders............................. 7,595 7,261 1,642 930
Shares redeemed................................ (65,381) (138,592) (26,402) (45,330)
------------ -------------- ------------- -------------
Net increase (decrease) in shares outstanding.. (34,470) (52,121) (1,506) 5,618
Shares outstanding, beginning of year.......... 249,358 301,479 201,191 195,573
------------ -------------- ------------- -------------
Shares outstanding, end of year................ 214,888 249,358 199,685 201,191
============ ============== ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Growth/Value Aggressive Growth
Fund Fund
Seven Months Year Period Seven Months Year Period
Ended Ended Ended Ended Ended Ended
March 31, Aug. 31, Aug. 31, March 31, Aug. 31, Aug. 31,
1998 1997 1996 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold................................ 392,494 751,684 1,408,416 304,821 418,585 668,440
Shares issued in reinvestment of
distributions to shareholders........... 23,529 16,584 -- -- 376 --
Shares redeemed............................ (343,315 ) (434,401) (57,598 ) (183,404 )(158,580 ) (70,133)
---------- ---------- --------- --------- --------- ---------
Net increase in shares outstanding......... 72,708 333,867 1,350,818 121,417 260,381 598,307
Shares outstanding, beginning of period.... 1,684,685 1,350,818 -- 858,688 598,307 --
---------- ---------- --------- --------- --------- ---------
Shares outstanding, end of period.......... 1,757,393 1,684,685 1,350,818 980,105 858,688 598,307
---------- ---------- --------- --------- --------- ---------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6. AGREEMENT AND PLAN OF REORGANIZATION
The Growth/Value Fund and Aggressive Growth Fund were originally organized as
series of Trans Adviser Funds, Inc. (Trans Adviser), an open-end management
investment company incorporated under the laws of the State of Maryland.
Pursuant to an Agreement and Plan of Reorganization dated May 31, 1997, each
Fund, on August 29, 1997, succeeded to the assets and liabilities of a series of
Trans Adviser with the same name (the Predecessor Fund). The investment
objective, policies and restrictions of each Fund and its Predecessor Fund are
substantially identical.
For federal income tax purposes, the reorganization of the Growth/Value Fund and
Aggressive Growth Fund qualifies as a tax-free reorganization with no tax
consequences to either Fund, its Predecessor Fund or their shareholders. In
connection with the reorganization, the fiscal year-end of each Fund, subsequent
to August 31, 1997 has been changed from August 31 to March 31.
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
Market
COMMON STOCKS -- 93.0% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES -- 44.5%
Baltimore Gas & Electric Co.............................................. 50,050 $ 1,636,009
Central Louisiana Electric............................................... 30,000 1,027,500
Cinergy Corp............................................................. 50,000 1,850,000
CMS Energy Corp.......................................................... 60,000 2,816,250
DPL, Inc................................................................. 75,000 1,462,500
Duke Power Co............................................................ 42,000 2,501,625
FPL Group, Inc........................................................... 45,000 2,891,250
Kansas City Power & Light Co............................................. 60,000 1,890,000
Northern States Power Co................................................. 38,000 2,242,000
Scana Corp............................................................... 70,000 2,165,625
---------------
$ 20,482,759
---------------
TELECOMMUNICATIONS -- 33.2%
Ameritech Corp........................................................... 70,000 $ 3,460,625
AT&T Corp................................................................ 30,000 1,968,750
Bell Atlantic Corp....................................................... 25,000 2,562,500
BellSouth Corp........................................................... 50,000 3,378,125
GTE Corp................................................................. 45,000 2,694,375
Lucent Technologies, Inc................................................. 9,722 1,243,201
---------------
$ 15,307,576
---------------
GAS COMPANIES -- 10.5%
MCN Corp................................................................. 70,000 $ 2,616,250
Oneok, Inc............................................................... 25,000 1,018,750
Wicor, Inc............................................................... 25,000 1,209,375
---------------
$ 4,844,375
---------------
WATER COMPANIES -- 4.8%
American Water Works, Inc................................................ 70,000 $ 2,209,375
---------------
TOTAL COMMON STOCKS (Cost $23,947,380)................................... $ 42,844,085
---------------
====================================================================================================================================
Par Market
CORPORATE BONDS -- 4.8% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Dayton Power & Light Co., 8.40%, 12/01/22................................ $ 1,000,000 $ 1,067,646
New York Telephone Co., 9.375%, 7/15/31.................................. 1,000,000 1,123,715
-------------- ---------------
TOTAL CORPORATE BONDS (Amortized Cost $2,087,898)........................ $ 2,000,000 $ 2,191,361
============== ---------------
TOTAL INVESTMENT SECURITIES-- 97.8% (Amortized Cost $26,035,278)......... $ 45,035,446
-------------
<PAGE>
UTILITY FUND (continued)
====================================================================================================================================
Face Market
REPURCHASE AGREEMENTS(1) -- 2.0% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Dean Witter Reynolds, Inc., 5.50%, dated 3/31/98, due 4/01/98,
repurchase proceeds $925,141.......................................... $ 925,000 $ 925,000
============= ---------------
TOTAL INVESTMENT SECURITIES AND REPURCHASE
AGREEMENTS-- 99.8% ................................................... $ 45,960,446
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.2% ............................ 98,945
---------------
NET ASSETS-- 100.0% ..................................................... $ 46,059,391
===============
(1) Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
Market
COMMON STOCKS -- 87.0% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER, NON-CYCLICAL -- 29.6%
Albertson's, Inc......................................................... 15,000 $ 789,375
Johnson & Johnson........................................................ 12,000 879,750
Merck & Co., Inc......................................................... 10,000 1,283,750
Newell Co................................................................ 25,000 1,210,937
PepsiCo, Inc............................................................. 25,000 1,067,188
Pfizer, Inc.............................................................. 20,000 1,993,750
Procter & Gamble Co...................................................... 20,000 1,687,500
Sara Lee Corp............................................................ 17,000 1,047,625
Schering-Plough Corp..................................................... 12,000 980,250
United Healthcare Corp................................................... 24,000 1,554,000
---------------
$ 12,494,125
---------------
FINANCIAL SERVICES -- 16.2%
AFLAC, Inc............................................................... 20,000 $ 1,265,000
American General Corp.................................................... 8,600 556,313
American International Group............................................. 11,000 1,385,312
Bank of New York Co., Inc................................................ 22,000 1,381,875
Freddie Mac.............................................................. 30,000 1,423,125
Norwest Corp............................................................. 20,000 831,250
---------------
$ 6,842,875
---------------
CONSUMER, CYCLICAL -- 12.6%
Gap, Inc................................................................. 30,000 $ 1,350,000
Mattel, Inc.............................................................. 30,000 1,188,750
McDonald's Corp.......................................................... 23,000 1,380,000
The Walt Disney Co....................................................... 13,000 1,387,750
---------------
$ 5,306,500
---------------
INDUSTRIAL -- 8.6%
Deere & Co............................................................... 18,000 $ 1,114,875
Diebold, Inc............................................................. 20,000 880,000
Emerson Electric Co...................................................... 17,000 1,108,188
Millipore Corp........................................................... 15,000 521,250
---------------
$ 3,624,313
---------------
TECHNOLOGY -- 8.4%
Compaq Computer Corp. ................................................... 40,000 $ 1,035,000
Hewlett-Packard Co....................................................... 10,000 633,750
Intel Corp............................................................... 10,000 780,625
Loral Space & Communications* ........................................... 11,000 307,312
Lucent Technologies, Inc................................................. 1,944 248,589
Motorola, Inc............................................................ 9,000 545,625
---------------
$ 3,550,901
---------------
ENERGY -- 8.2%
Apache Corp.............................................................. 35,000 $ 1,286,250
Baker Hughes, Inc........................................................ 25,000 1,006,250
Enron Corp............................................................... 25,000 1,159,375
---------------
$ 3,451,875
---------------
CONGLOMERATES -- 3.4%
General Electric Co...................................................... 17,000 $ 1,465,188
---------------
TOTAL COMMON STOCKS (Cost $24,331,358)................................... $ 36,735,777
---------------
<PAGE>
EQUITY FUND (continued)
====================================================================================================================================
Par Market
U.S. GOVERNMENT AGENCY ISSUES-- 12.9% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Discount Note, 4/01/98
(Amortized Cost $5,430,000) $ 5,430,000 $ 5,430,000
-------------- ---------------
TOTAL INVESTMENT SECURITIES-- 99.9% (Amortized Cost $29,761,358)......... $ 42,165,777
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.1% ........................... 32,219
---------------
NET ASSETS-- 100.0% ..................................................... $ 42,197,996
===============
* Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
Market
COMMON STOCKS -- 99.6% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE -- 28.2%
AmeriSource Health Corp. - Class A*...................................... 10,000 $ 601,250
Amgen, Inc.*............................................................. 8,000 487,000
Becton, Dickinson and Co................................................. 5,000 340,313
Beverly Enterprises, Inc.*............................................... 20,000 266,250
Bristol-Myers Squibb Co.................................................. 8,000 834,500
Columbia/HCA Healthcare Corp............................................. 17,000 548,250
Health Management Associates, Inc. - Class A*............................ 11,250 322,031
Integrated Health Services, Inc.......................................... 12,000 471,750
Manor Care, Inc.......................................................... 15,000 555,000
PharMerica, Inc.*........................................................ 34,702 516,192
PhyCor, Inc.*............................................................ 15,000 338,438
Quorum Health Group, Inc.*............................................... 11,250 378,281
Schering-Plough Corp..................................................... 20,000 1,633,750
Sybron International Corp.*.............................................. 30,000 783,750
---------------
$ 8,076,755
---------------
FINANCIAL SERVICES -- 20.6%
Ace, Ltd................................................................. 30,000 $ 1,130,625
Capital One Financial Corp............................................... 24,500 1,932,437
Centura Banks, Inc....................................................... 10,000 712,500
Chase Manhattan Corp..................................................... 7,500 1,011,563
First Republic Bank*..................................................... 7,500 270,000
Mid Ocean Ltd............................................................ 7,000 542,500
Penncorp Financial Group, Inc............................................ 11,000 317,625
---------------
$ 5,917,250
---------------
TECHNOLOGY -- 16.2%
EMC Corp.*............................................................... 14,000 $ 529,375
International Business Machines Corp..................................... 7,000 727,125
Novell, Inc.*............................................................ 50,000 535,938
Oracle Corp.*............................................................ 22,500 710,156
QLogic Corp.*............................................................ 12,500 443,750
Sun Microsystems, Inc.*.................................................. 20,000 834,375
VERITAS Software Corp.*.................................................. 4,000 236,500
Western Digital Corp.*................................................... 35,000 614,687
---------------
$ 4,631,906
---------------
ENERGY -- 15.1%
Anadarko Petroleum Corp.................................................. 10,600 $ 731,400
Baker Hughes, Inc........................................................ 15,000 603,750
Barrett Resources Corp.*................................................. 10,000 349,375
Halter Marine Group, Inc.*............................................... 21,000 333,375
McDermott International, Inc............................................. 10,000 413,125
Pride International, Inc.*............................................... 24,500 584,937
Schlumberger, Ltd........................................................ 12,000 909,000
Stone Energy Corp.*...................................................... 10,000 390,625
---------------
$ 4,315,587
---------------
<PAGE>
GROWTH/VALUE FUND (continued)
====================================================================================================================================
Market
COMMON STOCKS -- 99.6% (continued) Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
RETAIL -- 5.7%
International Home Foods, Inc.*.......................................... 5,000 $ 166,250
Safeway, Inc.*........................................................... 15,000 554,063
Walgreen Co.............................................................. 4,600 161,863
Wal-Mart Stores, Inc..................................................... 15,000 762,187
---------------
$ 1,644,363
---------------
ENTERTAINMENT -- 5.5%
Carnival Corp. - Class A................................................. 12,500 $ 871,875
Host Marriott Corp.*..................................................... 15,000 284,063
Promus Hotel Corp.*...................................................... 9,250 441,687
---------------
$ 1,597,625
---------------
UTILITIES -- 3.3%
The Williams Companies, Inc.............................................. 30,000 $ 960,000
---------------
TELECOMMUNICATIONS -- 2.5%
Sprint Corp.............................................................. 10,500 $ 710,719
---------------
ENVIRONMENTAL -- 1.5%
U.S. Filter Corp.*....................................................... 7,500 $ 263,438
Waste Management, Inc.................................................... 5,000 154,062
---------------
$ 417,500
---------------
TRANSPORTATION -- 1.0%
MotivePower Industries, Inc.*............................................ 10,000 $ 276,250
---------------
TOTAL COMMON STOCKS (Cost $20,435,726)................................... $ 28,547,955
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.4% ............................ 101,298
---------------
NET ASSETS-- 100.0% ..................................................... $ 28,649,253
---------------
* Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
March 31, 1998
====================================================================================================================================
Market
COMMON STOCKS -- 98.9% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTH CARE -- 31.8%
Alternative Living Services, Inc.*....................................... 10,000 $ 331,250
AmeriSource Health Corp. - Class A*...................................... 7,500 450,937
Amgen, Inc.*............................................................. 6,200 377,425
Atria Communities, Inc.*................................................. 20,000 385,000
Captial Senior Living Corp.*............................................. 17,000 235,875
Columbia/HCA Healthcare Corp............................................. 12,000 387,000
Health Management Associates, Inc. - Class A*............................ 15,000 429,375
Integrated Health Services, Inc.......................................... 8,000 314,500
Manor Care, Inc.......................................................... 10,000 370,000
PharMerica, Inc.*........................................................ 31,850 473,769
PhyCor, Inc.*............................................................ 1,500 33,844
Quorum Health Group, Inc.*............................................... 7,500 252,188
Sun Healthcare Group, Inc.*.............................................. 5,000 93,125
Sunrise Assisted Living, Inc.*........................................... 6,000 268,500
Sybron International Corp.*.............................................. 20,000 522,500
---------------
$ 4,925,288
---------------
TECHNOLOGY -- 24.1%
EMC Corp.*............................................................... 6,000 $ 226,875
Novell, Inc.*............................................................ 55,000 589,531
Oracle Corp.*............................................................ 11,250 355,078
QLogic Corp.*............................................................ 12,500 443,750
Semtech Corp.*........................................................... 24,000 612,000
SMART Modular Technologies, Inc.*........................................ 30,000 684,375
Sun Microsystems, Inc.*.................................................. 10,000 417,188
VERITAS Software Corp.*.................................................. 1,000 59,125
Western Digital Corp.*................................................... 20,000 351,250
---------------
$ 3,739,172
---------------
ENERGY -- 13.8%
Anadarko Petroleum Corp.................................................. 4,600 $ 317,400
Domain Energy Corp.*..................................................... 10,000 140,000
Halter Marine Group, Inc.*............................................... 9,750 154,781
McDermott International, Inc............................................. 7,000 289,187
Pride International, Inc.*............................................... 15,000 358,125
St. Mary Land & Exploration Co........................................... 5,000 191,094
Stone Energy Corp.*...................................................... 7,500 292,969
Tuboscope, Inc.*......................................................... 10,000 190,000
Vintage Petroleum, Inc................................................... 10,000 210,000
---------------
$ 2,143,556
---------------
FINANCIAL SERVICES -- 12.4%
Ace, Ltd................................................................. 18,000 $ 678,375
Capital One Financial Corp............................................... 10,000 788,750
First Republic Bank*..................................................... 3,000 108,000
Horace Mann Educators Corp............................................... 5,000 175,625
Penncorp Financial Group, Inc............................................ 6,000 173,250
---------------
$ 1,924,000
<PAGE>
---------------
AGGRESSIVE GROWTH FUND (continued)
====================================================================================================================================
Market
COMMON STOCKS -- 98.9% (continued) Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
ENTERTAINMENT -- 6.9%
Carnival Corp. - Class A................................................. 5,000 $ 348,750
Host Marriott Corp.*..................................................... 15,000 284,063
Promus Hotel Corp.*...................................................... 9,250 441,687
---------------
$ 1,074,500
---------------
RETAIL -- 3.8%
Food Lion, Inc. - Class A................................................ 15,000 $ 160,312
International Home Foods, Inc.*.......................................... 5,000 166,250
Walgreen Co.............................................................. 7,400 260,388
---------------
$ 586,950
---------------
UTILITIES -- 2.9%
Hagler Bailly, Inc.*..................................................... 5,000 $ 125,000
The Williams Companies, Inc.............................................. 10,000 320,000
---------------
$ 445,000
---------------
TELECOMMUNICATIONS -- 2.3%
Sprint Corp.............................................................. 5,200 $ 351,975
---------------
TRANSPORTATION -- 0.9%
MotivePower Industries, Inc.*............................................ 5,000 $ 138,125
---------------
TOTAL COMMON STOCKS (Cost $11,073,150) .................................. $ 15,328,566
---------------
====================================================================================================================================
Par Market
U.S. GOVERNMENT AGENCY ISSUES-- 0.9% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp. Discount Note, 4/01/98
(Amortized Cost $135,000) $ 135,000 $ 135,000
-------------- ---------------
TOTAL INVESTMENT SECURITIES-- 99.8% (Amortized Cost $11,208,150)......... $ 15,463,566
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.2% ............................ 31,798
---------------
NET ASSETS-- 100.0% ..................................................... $ 15,495,364
---------------
* Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- -----------------------------------------
ARTHUR ANDERSEN LLP
To the Shareholders and Board of Trustees of Countrywide Strategic Trust:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments of Countrywide Strategic Trust (comprising,
respectively, the Utility Fund, Equity Fund, Growth/Value Fund and Aggressive
Growth Fund) as of March 31, 1998, and (i) for the Utility Fund and Equity
Fund the related statements of operations, statements of changes in net assets
and the financial highlights for the periods indicated thereon and (ii) for the
Growth/Value Fund and Aggressive Growth Fund the related statements of
operations, statements of changes in net assets and the financial highlights
for the seven-month period ended March 31, 1998 and the year ended August 31,
1997. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial statements and financial highlights of the Growth/Value
Fund and Aggressive Growth Fund for the period ended August 31, 1996 were
audited by other auditors whose report dated October 18, 1996, expressed an
unqualified opinion on those financial statements and financial highlights.
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 suppporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
March 31, 1998, by correspondence with the custodian. 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 audited by us
and referred to above present fairly, in all material respects, the financial
position of each of the respective portfolios constituting the Countrywide
Strategic Trust as of March 31, 1998, the results of their operations, the
changes in their net assets, and their financial highlights for the periods
referred to above, in conformity with generally accepted accounting principles.
/s/ Arthur Andersen LLP
Cincinnati, Ohio,
April 24, 1998
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 9
<NAME> AGGRESSIVE GROWTH FUND
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 11,208,150
<INVESTMENTS-AT-VALUE> 15,463,566
<RECEIVABLES> 42,597
<ASSETS-OTHER> 3,403
<OTHER-ITEMS-ASSETS> 17,106
<TOTAL-ASSETS> 15,526,672
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 31,308
<TOTAL-LIABILITIES> 31,308
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,354,846
<SHARES-COMMON-STOCK> 980,105
<SHARES-COMMON-PRIOR> 858,688
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (114,898)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,255,416
<NET-ASSETS> 15,495,364
<DIVIDEND-INCOME> 16,540
<INTEREST-INCOME> 8,332
<OTHER-INCOME> 0
<EXPENSES-NET> 167,203
<NET-INVESTMENT-INCOME> (142,331)
<REALIZED-GAINS-CURRENT> 241,580
<APPREC-INCREASE-CURRENT> (458,321)
<NET-CHANGE-FROM-OPS> (359,072)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 304,821
<NUMBER-OF-SHARES-REDEEMED> 183,404
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,511,629
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (356,478)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 85,703
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 167,203
<AVERAGE-NET-ASSETS> 14,762,670
<PER-SHARE-NAV-BEGIN> 16.29
<PER-SHARE-NII> (.15)
<PER-SHARE-GAIN-APPREC> (.33)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.81
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 71
<NAME> EQUITY FUND CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 29,761,358
<INVESTMENTS-AT-VALUE> 42,165,777
<RECEIVABLES> 85,108
<ASSETS-OTHER> 5,731
<OTHER-ITEMS-ASSETS> 2,091
<TOTAL-ASSETS> 42,258,707
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 60,711
<TOTAL-LIABILITIES> 60,711
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,793,481
<SHARES-COMMON-STOCK> 1,978,069
<SHARES-COMMON-PRIOR> 1,088,598
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 96
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,404,419
<NET-ASSETS> 38,336,423
<DIVIDEND-INCOME> 291,509
<INTEREST-INCOME> 237,569
<OTHER-INCOME> 0
<EXPENSES-NET> 394,780
<NET-INVESTMENT-INCOME> 134,298
<REALIZED-GAINS-CURRENT> 131,522
<APPREC-INCREASE-CURRENT> 9,717,678
<NET-CHANGE-FROM-OPS> 9,983,498
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 134,305
<DISTRIBUTIONS-OF-GAINS> 266,654
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,675,833
<NUMBER-OF-SHARES-REDEEMED> 808,858
<SHARES-REINVESTED> 22,496
<NET-CHANGE-IN-ASSETS> 23,353,785
<ACCUMULATED-NII-PRIOR> 7
<ACCUMULATED-GAINS-PRIOR> 164,431
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 221,798
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 394,780
<AVERAGE-NET-ASSETS> 26,360,854
<PER-SHARE-NAV-BEGIN> 13.76
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> 5.76
<PER-SHARE-DIVIDEND> .08
<PER-SHARE-DISTRIBUTIONS> .15
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.38
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 73
<NAME> EQUITY FUND CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 29,761,358
<INVESTMENTS-AT-VALUE> 42,165,777
<RECEIVABLES> 85,108
<ASSETS-OTHER> 5,731
<OTHER-ITEMS-ASSETS> 2,091
<TOTAL-ASSETS> 42,258,707
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 60,711
<TOTAL-LIABILITIES> 60,711
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,793,481
<SHARES-COMMON-STOCK> 199,685
<SHARES-COMMON-PRIOR> 201,191
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 96
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 12,404,419
<NET-ASSETS> 3,861,573
<DIVIDEND-INCOME> 291,509
<INTEREST-INCOME> 237,569
<OTHER-INCOME> 0
<EXPENSES-NET> 394,780
<NET-INVESTMENT-INCOME> 134,298
<REALIZED-GAINS-CURRENT> 131,522
<APPREC-INCREASE-CURRENT> 9,717,678
<NET-CHANGE-FROM-OPS> 9,983,498
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 29,203
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,254
<NUMBER-OF-SHARES-REDEEMED> 26,402
<SHARES-REINVESTED> 1,642
<NET-CHANGE-IN-ASSETS> 1,091,420
<ACCUMULATED-NII-PRIOR> 7
<ACCUMULATED-GAINS-PRIOR> 164,431
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 221,798
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 394,780
<AVERAGE-NET-ASSETS> 3,279,246
<PER-SHARE-NAV-BEGIN> 13.77
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> 5.75
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .15
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.34
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 8
<NAME> GROWTH/VALUE FUND
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 20,435,726
<INVESTMENTS-AT-VALUE> 28,547,955
<RECEIVABLES> 1,039,972
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 17,944
<TOTAL-ASSETS> 29,605,871
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 956,618
<TOTAL-LIABILITIES> 956,618
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,133,868
<SHARES-COMMON-STOCK> 1,757,393
<SHARES-COMMON-PRIOR> 1,684,685
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 403,156
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,112,229
<NET-ASSETS> 28,649,253
<DIVIDEND-INCOME> 108,061
<INTEREST-INCOME> 12,255
<OTHER-INCOME> 0
<EXPENSES-NET> 266,338
<NET-INVESTMENT-INCOME> (146,022)
<REALIZED-GAINS-CURRENT> 1,566,803
<APPREC-INCREASE-CURRENT> 437,753
<NET-CHANGE-FROM-OPS> 1,858,534
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 1,021,333
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 392,494
<NUMBER-OF-SHARES-REDEEMED> 343,315
<SHARES-REINVESTED> 23,529
<NET-CHANGE-IN-ASSETS> 1,871,184
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (142,314)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 160,090
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 266,338
<AVERAGE-NET-ASSETS> 27,571,527
<PER-SHARE-NAV-BEGIN> 15.90
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> 1.05
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .57
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.30
<EXPENSE-RATIO> 1.66
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 51
<NAME> UTILITY FUND CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 26,960,278
<INVESTMENTS-AT-VALUE> 45,960,446
<RECEIVABLES> 225,042
<ASSETS-OTHER> 2,389
<OTHER-ITEMS-ASSETS> 3,010
<TOTAL-ASSETS> 46,190,887
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 131,496
<TOTAL-LIABILITIES> 131,496
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 27,059,170
<SHARES-COMMON-STOCK> 2,533,479
<SHARES-COMMON-PRIOR> 2,900,247
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 53
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,000,168
<NET-ASSETS> 42,462,857
<DIVIDEND-INCOME> 1,492,949
<INTEREST-INCOME> 240,402
<OTHER-INCOME> 0
<EXPENSES-NET> 529,594
<NET-INVESTMENT-INCOME> 1,203,757
<REALIZED-GAINS-CURRENT> 396,431
<APPREC-INCREASE-CURRENT> 12,365,467
<NET-CHANGE-FROM-OPS> 13,965,655
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,131,462
<DISTRIBUTIONS-OF-GAINS> 598,344
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 441,718
<NUMBER-OF-SHARES-REDEEMED> 914,263
<SHARES-REINVESTED> 105,777
<NET-CHANGE-IN-ASSETS> 6,375,617
<ACCUMULATED-NII-PRIOR> 242
<ACCUMULATED-GAINS-PRIOR> 251,541
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 303,151
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 529,594
<AVERAGE-NET-ASSETS> 37,424,466
<PER-SHARE-NAV-BEGIN> 12.44
<PER-SHARE-NII> .43
<PER-SHARE-GAIN-APPREC> 4.56
<PER-SHARE-DIVIDEND> .43
<PER-SHARE-DISTRIBUTIONS> .24
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.76
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 53
<NAME> UTILITY FUND CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 26,960,278
<INVESTMENTS-AT-VALUE> 45,960,446
<RECEIVABLES> 225,042
<ASSETS-OTHER> 2,389
<OTHER-ITEMS-ASSETS> 3,010
<TOTAL-ASSETS> 46,190,887
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 131,496
<TOTAL-LIABILITIES> 131,496
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 27,059,170
<SHARES-COMMON-STOCK> 214,888
<SHARES-COMMON-PRIOR> 249,358
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 53
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,000,168
<NET-ASSETS> 3,596,534
<DIVIDEND-INCOME> 1,492,949
<INTEREST-INCOME> 240,402
<OTHER-INCOME> 0
<EXPENSES-NET> 529,594
<NET-INVESTMENT-INCOME> 1,203,757
<REALIZED-GAINS-CURRENT> 396,431
<APPREC-INCREASE-CURRENT> 12,365,467
<NET-CHANGE-FROM-OPS> 13,965,655
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 72,537
<DISTRIBUTIONS-OF-GAINS> 49,575
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 23,316
<NUMBER-OF-SHARES-REDEEMED> 65,381
<SHARES-REINVESTED> 7,595
<NET-CHANGE-IN-ASSETS> 497,347
<ACCUMULATED-NII-PRIOR> 242
<ACCUMULATED-GAINS-PRIOR> 251,541
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 303,151
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 529,594
<AVERAGE-NET-ASSETS> 3,101,704
<PER-SHARE-NAV-BEGIN> 12.43
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> 4.57
<PER-SHARE-DIVIDEND> .33
<PER-SHARE-DISTRIBUTIONS> .24
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.74
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
