CAPITAL APPRECIATION
INCOME
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1998
(Unaudited)
UTILITY
FUND
EQUITY
FUND
GROWTH/VALUE
FUND
AGGRESSIVE GROWTH
FUND
Countrywide Investments
<PAGE>
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
Howard J. Levine
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
================================================================================
Dear Shareholders:
As we approach our 30th anniversary, it is imperative to reflect upon the dreams
that have been realized since David Loeb and I founded Countrywide Credit
Industries, Inc. Countrywide has far exceeded our vision of a full-service
mortgage company that would provide homeownership opportunities for millions of
people across the country. Since our inception in 1969, Countrywide has
strategically broadened its scope to offer a complete line of finance-related
products and services that augment company profits, capitalize core competencies
and enhance customer retention. Today, Countrywide is highly regarded as a
skilled provider of diversified products and services.
We are committed to creating value for our shareholders by offering a variety of
investment opportunities. The Countrywide Family of Funds is comprised of an
innovative financial product line designed to meet the diverse needs of our
investors. There are currently 17 funds offered through Countrywide Investments.
Each fund is designed to fulfill specific financial needs. As the merger and
acquisition team continues to add new funds, shareholders will be provided with
an even broader range of investment choices. Countrywide continues to build
shareholder value by capitalizing on opportunities and pioneering innovative
strategies based on stable, long-term performance. 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 now has more than 2 million customers which represents a servicing
portfolio of over $200 billion. With 500 offices nationwide and nearly 11,000
employees, Countrywide remains focused on steady growth. The diverse line of
Countrywide funds continues to be a critical part of our mortgage lending and
servicing operations.
Countrywide is committed to the needs of our investors. As we look to the
future, Countrywide will continue to search for and offer financial products and
services that will increase shareholder value.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
Dear Fellow Shareholders:
We are pleased to present Countrywide Strategic Trust's semi-annual report for
the six months ended September 30, 1998. This report provides financial data and
performance information for the Utility Fund, Equity Fund, Growth/Value Fund and
Aggressive Growth Fund. These Funds represent the four equity products currently
offered among the 17 mutual funds which comprise the Countrywide Family of
Funds.
A variety of forces converged to influence market volatility in recent months
including the scandal in the White House, the ongoing economic crisis in Asia
and Latin America and the devaluation of Russia's ruble. Markets suffered
significant losses during the quarter ended September 30, 1998, although stocks
began to rebound near quarter end.
Utility stocks continued to be among the best performers in the equity market.
Considered "defensive" stocks, utilities can provide a safe haven during periods
of market volatility because they often experience less price fluctuation. In
fact, the Countrywide Utility Fund received national recognition for its
performance for the 12-month period ended September 30, 1998.
The bond market continued to see a powerful "flight to quality." Treasuries rose
sharply driving the yield on the 30-year bond to a record low. Some economists
forecasted the onset of a deflationary period, and the U.S. government announced
a record $70 billion surplus. These factors worked to keep a lid on the issuance
of new Treasuries and provided an additional boost to the rally.
We remain positive about the long-term prospects for domestic stocks and the
defensive nature of utility stocks, with their consistent and predictable
earnings and dividends. Because it is impossible to predict the short-term
direction of the market, however, we encourage investors to stay on course with
their financial plans. A good strategy in a volatile market is to maintain a
diversified portfolio. It also is important to consider investment time
horizons, to invest regularly and, most importantly, to remain focused on
financial goals.
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>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Utility Equity
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost................................................... $ 25,291,729 $ 33,546,712
============== ===============
At amortized cost..................................................... $ 25,276,546 $ 33,546,712
============== ===============
At market value (Note 2).............................................. $ 42,290,999 $ 41,033,796
Repurchase agreements (Note 2)........................................... -- 3,855,000
Cash..................................................................... 3,838 559
Dividends and interest receivable........................................ 163,163 30,602
Receivable for capital shares sold ...................................... 28,725 11,503
Other assets............................................................. 12,795 22,218
-------------- ---------------
TOTAL ASSETS.......................................................... 42,499,520 44,953,678
-------------- ---------------
LIABILITIES
Dividends payable........................................................ 30,463 303
Payable for capital shares redeemed...................................... 101,534 16,823
Payable to affiliates (Note 4)........................................... 42,394 44,433
Other accrued expenses and liabilities .................................. 6,744 17,217
-------------- ---------------
TOTAL LIABILITIES..................................................... 181,135 78,776
-------------- ---------------
NET ASSETS .............................................................. $ 42,318,385 $ 44,874,902
============== ===============
Net assets consist of:
Paid-in capital.......................................................... $ 24,825,178 $ 37,242,506
Undistributed net investment income...................................... 63 736
Accumulated net realized gains from security transactions................ 478,691 144,576
Net unrealized appreciation on investments .............................. 17,014,453 7,487,084
-------------- ---------------
Net assets .............................................................. $ 42,318,385 $ 44,874,902
============== ===============
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares ............................... $ 39,104,849 $ 42,112,116
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 2,410,079 2,401,575
============== ===============
Net asset value and redemption price per share (Note 2).................. $ 16.23 $ 17.54
============== ===============
Maximum offering price per share (Note 2)................................ $ 16.91 $ 18.27
============== ===============
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares ............................... $ 3,213,509 $ 2,762,786
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 198,311 158,615
============== ===============
Net asset value, offering price and redemption price per share (Note 2).. $ 16.20 $ 17.42
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Growth/ Aggressive
Value Growth
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment securities:
At acquisition cost................................................... $ 20,440,810 $ 11,159,466
============== ===============
At amortized cost..................................................... $ 20,440,846 $ 11,159,466
============== ===============
At market value (Note 2).............................................. $ 25,178,139 $ 12,422,713
Cash..................................................................... 1,916 --
Dividends receivable..................................................... 22,465 4,524
Receivable for capital shares sold....................................... 6,621 5,507
Receivable for securities sold........................................... -- 328,276
Organization costs, net (Note 2)......................................... 12,699 12,699
Other assets............................................................. 11,013 10,182
-------------- ---------------
TOTAL ASSETS.......................................................... 25,232,853 12,783,901
-------------- --------------
LIABILITIES
Bank overdraft........................................................... -- 74,668
Payable for capital shares redeemed...................................... 110,423 40,950
Payable for securities purchased......................................... -- 203,307
Payable to affiliates (Note 4)........................................... 23,440 12,980
Other accrued expenses and liabilities................................... 14,380 9,245
-------------- ---------------
TOTAL LIABILITIES..................................................... 148,243 341,150
-------------- ---------------
NET ASSETS .............................................................. $ 25,084,610 $ 12,442,751
============== ===============
Net assets consist of:
Paid-in capital.......................................................... $ 18,484,443 $ 10,689,752
Accumulated net investment loss.......................................... (106,733) (98,091)
Accumulated net realized gains from security transactions................ 1,969,607 587,843
Net unrealized appreciation on investments............................... 4,737,293 1,263,247
-------------- ---------------
Net assets............................................................... $ 25,084,610 $ 12,442,751
============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 5).......................... 1,652,702 927,175
============== ===============
Net asset value and redemption price per share (Note 2).................. $ 15.18 $ 13.42
============== ===============
Maximum offering price per share (Note 2)................................ $ 15.81 $ 13.98
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Utility Equity
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends ............................................................ $ 715,388 $ 216,860
Interest ............................................................. 100,934 161,127
-------------- ---------------
TOTAL INVESTMENT INCOME ............................................ 816,322 377,987
-------------- ---------------
EXPENSES
Investment advisory fees (Note 4) .................................... 159,703 176,060
Distribution expenses, Class A (Note 4)............................... 49,037 54,497
Distribution expenses, Class C (Note 4) .............................. 16,790 16,757
Transfer agent fees, Class A (Note 4)................................. 16,795 11,473
Transfer agent fees, Class C (Note 4)................................. 6,000 6,000
Accounting services fees (Note 4) .................................... 18,000 18,500
Professional fees .................................................... 9,641 9,041
Postage and supplies.................................................. 6,502 9,432
Trustees' fees and expenses .......................................... 5,028 5,028
Registration fees, Common ............................................ 1,067 717
Registration fees, Class A ........................................... 1,854 1,569
Registration fees, Class C ........................................... 1,615 1,450
Custodian fees ....................................................... 2,991 3,850
Reports to shareholders .............................................. 3,650 2,880
Insurance expense .................................................... 1,995 1,645
Other expenses ....................................................... 1,958 6,992
-------------- ---------------
TOTAL EXPENSES ..................................................... 302,626 325,891
-------------- ---------------
NET INVESTMENT INCOME ................................................... 513,696 52,096
-------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions ........................ 478,638 144,480
Net change in unrealized appreciation/depreciation on investments..... (1,985,715) (4,917,335)
-------------- ---------------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS ....................... (1,507,077) (4,772,855)
-------------- ---------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ............................. $ (993,381) $ (4,720,759)
============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Growth/ Aggressive
Value Growth
Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends............................................................. $ 111,312 $ 30,670
Interest 12,306 10,663
-------------- ---------------
TOTAL INVESTMENT INCOME............................................. 123,618 41,333
-------------- ---------------
EXPENSES
Investment advisory fees (Note 4)..................................... 138,766 71,499
Distribution expenses (Note 4)........................................ 34,691 17,875
Accounting services fees (Note 4)..................................... 12,000 12,000
Professional fees..................................................... 7,541 6,041
Trustees' fees and expenses........................................... 6,095 6,095
Transfer agent fees (Note 4).......................................... 6,000 6,000
Postage and supplies.................................................. 4,896 4,980
Custodian fees........................................................ 5,204 4,313
Amortization of organization costs (Note 2)........................... 3,177 3,177
Reports to shareholders............................................... 1,772 1,766
Insurance expense..................................................... 1,575 1,005
Registration fees..................................................... 722 493
Other expenses........................................................ 7,912 4,180
-------------- ---------------
TOTAL EXPENSES...................................................... 230,351 139,424
-------------- ---------------
NET INVESTMENT LOSS ..................................................... (106,733) (98,091)
-------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions ........................ 1,566,451 702,741
Net change in unrealized appreciation/depreciation on investments .... (3,374,936) (2,992,169)
-------------- ---------------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS ....................... (1,808,485) (2,289,428)
-------------- ---------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ............................. $(1,915,218) $ (2,387,519)
-------------- ---------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended September 30, 1998 and March 31, 1998
<TABLE>
<CAPTION>
====================================================================================================================================
Utility Equity
Fund Fund
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income....................... $ 513,696 $ 1,203,757 $ 52,096 $ 134,298
Net realized gains from security
transactions.............................. 478,638 396,431 144,480 131,522
Net change in unrealized appreciation/
depreciation on investments............... (1,985,715) 12,365,467 (4,917,335) 9,717,678
------------ -------------- ------------- -------------
Net increase (decrease) in net assets
from operations........................... (993,381) 13,965,655 (4,720,759) 9,983,498
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A......... (491,752) (1,131,462) (51,360) (134,305)
From net investment income, Class C......... (21,881) (72,537) -- --
From net realized gains on security
transactions, Class A..................... -- (598,344) -- (266,654)
From net realized gains on security
transactions, Class C..................... -- (49,575) -- (29,203)
------------ -------------- ------------- -------------
Decrease in net assets from distributions
to shareholders........................... (513,633) (1,851,918) (51,360) (430,162)
------------ -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5):
CLASS A
Proceeds from shares sold................... 1,624,003 6,395,680 10,037,319 27,157,778
Net asset value of shares issued in
reinvestment of distributions to
shareholders.............................. 435,831 1,560,076 50,631 393,608
Payments for shares redeemed................ (4,036,652) (12,764,160) (1,860,345) (12,645,062)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets from
Class A share transactions.................. (1,976,818) (4,808,404) 8,227,605 14,906,324
------------ -------------- ------------- -------------
CLASS C
Proceeds from shares sold................... 181,132 343,251 194,341 386,194
Net asset value of shares issued in
reinvestment of distributions to
shareholders.............................. 19,631 112,220 -- 29,105
Payments for shares redeemed................ (457,937) (887,840) (972,921) (429,754)
------------ -------------- ------------- -------------
Net decrease in net assets from Class C
share transactions........................ (257,174) (432,369) (778,580) (14,455)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets from
capital share transactions................ (2,233,992) (5,240,773) 7,449,025 14,891,869
------------ -------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....... (3,741,006) 6,872,964 2,676,906 24,445,205
NET ASSETS:
Beginning of period......................... 46,059,391 39,186,427 42,197,996 17,752,791
------------ -------------- ------------- -------------
End of period............................... $ 42,318,385 $ 46,059,391 $44,874,902 $42,197,996
============ ============== ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME ......... $ 63 $ -- $ 736 $ --
============ ============== ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended September 30, 1998, March 31,1998 and August 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Growth/Value Fund Aggressive Growth Fund
Six Months Six Months
Ended Seven Months Year Ended Seven Months Year
September 30, Ended Ended September 30, Ended Ended
1998 March 31, August 31, 1998 March 31, August 31,
(Unaudited) 1998(A) 1997 (Unaudited) 1998(A) 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment loss..................... $ (106,733) $ (146,022) $ (214,624) $ (98,091) $ (142,331) $ (148,879)
Net realized gains (losses) from
security transactions................. 1,566,451 1,566,803 894,909 702,741 241,580 (356,478)
Net change in unrealized appreciation/
depreciation on investments.......... (3,374,936) 437,753 7,431,395 (2,992,169) (458,321) 4,653,168
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from operations...................... (1,915,218) 1,858,534 8,111,680 (2,387,519) (359,072) 4,147,811
----------- ----------- ----------- ----------- ----------- -----------
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 .............. 2,250,350 6,013,814 9,367,824 2,009,982 4,724,918 5,211,479
Net asset value of shares issued in
reinvestment of distributions to
shareholders.......................... -- 348,462 260,810 -- -- 4,532
Payments for shares redeemed ......... (3,899,775) (5,328,293) (5,181,368) (2,675,076) (2,854,217) (1,913,821)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from capital share transactions (1,649,425) 1,033,983 4,447,266 (665,094) 1,870,701 3,302,190
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS .. (3,564,643) 1,871,184 11,670,404 (3,052,613) 1,511,629 7,433,821
NET ASSETS:
Beginning of period..................... 28,649,253 26,778,069 15,107,665 15,495,364 13,983,735 6,549,914
----------- ----------- ----------- ----------- ----------- -----------
End of period........................... $25,084,610 $28,649,253 $26,778,069 $12,442,751 $15,495,364 $13,983,735
=========== =========== =========== =========== =========== ===========
</TABLE>
(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.
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended
September 30, Years Ended March 31,
1998
(Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 16.76 $ 12.44 $ 12.24 $ 10.47 $ 10.52 $ 11.34
---------- ---------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income................... 0.20 0.43 0.46 0.47 0.43 0.37
Net realized and unrealized gains
(losses) on investments (0.53) 4.56 0.22 1.77 (0.05) (0.59)
---------- ---------- --------- --------- --------- ---------
Total from investment operations........... (0.33) 4.99 0.68 2.24 0.38 (0.22)
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.... (0.20) (0.43) (0.46) (0.47) (0.43) (0.37)
Distributions from net realized gains... -- (0.24) (0.02) -- -- (0.23)
---------- ---------- --------- --------- --------- ---------
Total distributions........................ (0.20) (0.67) (0.48) (0.47) (0.43) (0.60)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 16.23 $ 16.76 $ 12.44 $ 12.24 $ 10.47 $ 10.52
========== ========== ========= ========= ========= =========
Total return(A) ........................... (1.93)% 40.92% 5.61% 21.65% 3.68% (2.11)%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)........ $ 39,105 $ 42,463 $ 36,087 $ 40,424 $40,012 $40,373
========== ========== ========= ========= ========= =========
Ratio of expenses to average net assets.... 1.33%(B) 1.25% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income to average
net assets............................ 2.51%(B) 3.03% 3.65% 3.97% 4.06% 3.32%
Portfolio turnover rate ................... 0%(B) 0% 3% 11% 17% 91%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B)Annualized.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended Period
September 30, Years Ended March 31, Ended
1998 March 31,
(Unaudited) 1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 16.74 $ 12.43 $ 12.23 $ 10.46 $ 10.51 $ 11.55
---------- ---------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income................... 0.11 0.31 0.35 0.37 0.35 0.23
Net realized and unrealized gains
(losses) on investments............... (0.54) 4.57 0.24 1.78 (0.04) (0.81)
---------- ---------- --------- --------- --------- ---------
Total from investment operations........... (0.43) 4.88 0.59 2.15 0.31 (0.58)
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.... (0.11) (0.33) (0.37) (0.38) (0.36) (0.23)
Distributions from net realized gains... -- (0.24) (0.02) -- -- (0.23)
---------- ---------- --------- --------- --------- ---------
Total distributions........................ (0.11) (0.57) (0.39) (0.38) (0.36) (0.46)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 16.20 $ 16.74 $ 12.43 $ 12.23 $ 10.46 $ 10.51
========== ========== ========= ========= ========= =========
Total return(B) ........................... (2.58)% 39.91% 4.82% 20.78% 3.00% (7.89)%(C)
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)........ $ 3,214 $ 3,597 $ 3,099 $ 3,686 $ 3,599 $ 1,742
========== ========== ========= ========= ========= =========
Ratio of expenses to average net assets ... 2.50%(C) 2.00% 2.00% 2.00% 2.00% 2.00%(C)
Ratio of net investment income to
average net assets 1.34%C) 2.28% 2.89% 3.19% 3.41% 2.19%(C)
Portfolio turnover rate.................... 0%(C) 0% 3% 11% 17% 91%(C)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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) Annualized.
See accompanying notes to financial statements.
<PAGE>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
<TABLE>
<CAPTION>
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended Period
September 30, Years Ended March 31, Ended
1998 March 31,
(Unaudited) 1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 19.38 $ 13.76 $ 12.45 $ 9.84 $ 9.26 $ 10.02
---------- ---------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income................... 0.03 0.09 0.12 0.13 0.15 0.08
Net realized and unrealized gains
(losses) on investments (1.85) 5.76 1.35 2.60 0.59 (0.34)
---------- ---------- --------- --------- --------- ---------
Total from investment operations........... (1.82) 5.85 1.47 2.73 0.74 (0.26)
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.... (0.02) (0.08) (0.12) (0.12) (0.16) (0.08)
Distributions from net realized gains... -- (0.15) (0.04) -- -- (0.42)
---------- ---------- --------- --------- --------- ---------
Total distributions........................ (0.02) (0.23) (0.16) (0.12) (0.16) (0.50)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 17.54 $ 19.38 $ 13.76 $ 12.45 $ 9.84 $ 9.26
========== ========== ========= ========= ========= =========
Total return(B) ........................... (9.44)% 42.74% 11.82% 27.90% 8.07% (3.98)%(D)
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)........ $ 42,112 $ 38,336 $ 14,983 $ 8,502 $ 4,300 $ 3,346
========== ========== ========= ========= ========= =========
Ratio of net expenses to average
net assets(C)......................... 1.31%(D) 1.25% 1.25% 1.25% 1.25% 1.24%(D)
Ratio of net investment income to
average net assets.................... 0.30%(D) 0.53% 0.91% 1.06% 1.57% 0.82%(D)
Portfolio turnover rate.................... 5%(D) 7% 38% 38% 159% 109%(D)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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%(D) for the periods ended March 31, 1997, 1996, 1995 and 1994,
respectively.
(D) Annualized.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended Period
September 30, Years Ended March 31, Ended
1998 March 31,
(Unaudited) 1998 1997 1996 1995 1994(A)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 19.34 $ 13.77 $ 12.46 $ 9.86 $ 9.26 $ 10.00
---------- ---------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss)............ (0.08) (0.03) 0.02 0.05 0.10 0.03
Net realized and unrealized gains
(losses) on investments............... (1.84) 5.75 1.35 2.60 0.57 (0.32)
---------- ---------- --------- --------- --------- ---------
Total from investment operations........... (1.92) 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........... $ 17.42 $ 19.34 $ 13.77 $ 12.46 $ 9.86 $ 9.26
========== ========== ========= ========= ========= =========
Total return(B) ........................... (9.93)% 41.63% 11.01% 26.90% 7.32% (3.58)%(D)
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)........ $ 2,763 $ 3,862 $ 2,770 $ 2,436 $ 1,995 $ 5,857
========== ========== ========= ========= ========= =========
Ratio of net expenses to average
net assets(C)......................... 2.41%(D) 2.00% 2.00% 2.00% 2.00% 1.94%(D)
Ratio of net investment income (loss) to
average net assets.................... (0.82)%(D) (0.18)% 0.15% 0.38% 0.68% 0.58%(D)
Portfolio turnover rate.................... 5%(D) 7% 38% 38% 159% 109%(D)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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%(D) for the periods ended March 31, 1997, 1996, 1995 and 1994,
respectively.
(D) Annualized.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended Seven Months Year Period
September 30, Ended Ended Ended
1998 March 31, August 31, August 31,
(Unaudited) 1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......... $ 16.30 $ 15.90 $ 11.18 $ 10.00
------------ -------------- ------------- -------------
Income (loss) from investment operations:
Net investment loss......................... (0.06) (0.08) (0.13) (0.06)(C)
Net realized and unrealized gains
(losses) on investments................... (1.06) 1.05 5.39 1.24
------------ -------------- ------------- -------------
Total from investment operations............... (1.12) 0.97 5.26 1.18
------------ -------------- ------------- -------------
Less distributions:
Distributions from net realized gains....... -- (0.57) (0.54) --
------------ -------------- ------------- -------------
Net asset value at end of period............... $ 15.18 $ 16.30 $ 15.90 $ 11.18
============ ============== ============= =============
Total return(D) ............................... (6.87)% 6.43% 47.11% 11.80%
============ ============== ============= =============
Net assets at end of period (000's)............ $ 25,085 $ 28,649 $ 26,778 $ 15,108
============ ============== ============= =============
Ratio of net expenses to average
net assets(E)............................. 1.66%(F) 1.66%(F) 1.95% 1.95%(F)
Ratio of net investment loss to average
net assets................................ (0.77)%(F) (0.91)%(F) (1.03)% (0.62)%(F)
Portfolio turnover rate........................ 85%(F) 62%(F) 52% 21%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE>
<TABLE>
<CAPTION>
See accompanying notes to financial statements.
AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
====================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
====================================================================================================================================
Six Months
Ended Seven Months Year Period
September 30, Ended Ended Ended
1998 March 31, August 31, August 31,
(Unaudited) 1998(A) 1997 1996(B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......... $ 15.81 $ 16.29 $ 10.95 $ 10.00
------------ -------------- ------------- -------------
Income (loss) from investment operations:
Net investment loss......................... (0.11) (0.15) (0.17) (0.11)(C)
Net realized and unrealized gains
(losses) on investments................... (2.28) (0.33) 5.54 1.06
------------ -------------- ------------- -------------
Total from investment operations............... (2.39) (0.48) 5.37 0.95
------------ -------------- ------------- -------------
Less distributions:
Distributions from net realized gains....... -- -- (0.03) --
------------ -------------- ------------- -------------
Net asset value at end of period............... $ 13.42 $ 15.81 $ 16.29 $ 10.95
============ ============== ============= =============
Total return(D) ............................... (15.12)% (2.95)% 49.09% 9.50%
============ ============== ============= =============
Net assets at end of period (000's)............ $ 12,443 $ 15,495 $ 13,984 $ 6,550
============ ============== ============= =============
Ratio of net expenses to average
net assets(E)............................. 1.95%(F) 1.95%(F) 1.94% 1.95%(F)
Ratio of net investment loss to average
net assets................................ (1.37)%(F) (1.66)%(F) (1.57)% (1.26)%(F)
Portfolio turnover rate........................ 116%(F) 40%(F) 51% 16%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 (Unaudited)
================================================================================
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.
(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.
<PAGE>
2. Significant Accounting Policies
The following is a summary of the Funds' significant accounting policies:
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.
<PAGE>
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
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.
The following information is based upon the federal income tax cost of portfolio
investments (excluding repurchase agreements) as of September 30, 1998:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Growth/ Aggressive
Utility Equity Value Growth
Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation.................. $ 17,106,343 $ 10,970,245 $ 6,190,802 $ 2,199,982
Gross unrealized depreciation.................. (91,890) (3,483,161) (1,453,509) (936,735)
------------ -------------- ------------- -------------
Net unrealized appreciation.................... $ 17,014,453 $ 7,487,084 $ 4,737,293 $ 1,263,247
============ ============== ============= =============
Federal income tax cost........................ $ 25,276,546 $ 33,546,712 $20,440,846 $11,159,466
============ ============== ============= =============
- -------------------------------------------------------------------------------------------------------------
</TABLE>
As of March 31, 1998, the Aggressive Growth Fund had capital loss carryforwards
for federal income tax purposes of $114,898. These capital loss carryforwards
may be utilized in the current and future years to offset net realized capital
gains prior to distributing such gains to shareholders.
3. Investment Transactions
Investment transactions (excluding short-term investments) were as follows for
the six months ended September 30, 1998:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Growth/ Aggressive
Utility Equity Value Growth
Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases of investment securities............. $ -- $ 10,076,760 $ 11,435,368 $ 8,050,615
============ ============== ============= =============
Proceeds from sales and maturities
of investment securities.................. $ 1,363,062 $ 1,005,885 $ 13,251,629 $ 8,666,939
============ ============== ============= =============
</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
$1,907, $3,038, $326 and $155 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 six months ended September 30,
1998. In addition, the Adviser collected $397 and $432 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.
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:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Utility Equity
Fund Fund
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.................................... 102,200 441,718 519,825 1,675,833
Shares issued in reinvestment of distributions
to shareholders............................. 27,236 105,777 2,744 22,496
Shares redeemed................................ (252,836) (914,263) (99,063) (808,858)
------------ -------------- ------------- -------------
Net increase (decrease) in shares outstanding.. (123,400) (366,768) 423,506 889,471
Shares outstanding, beginning of period........ 2,533,479 2,900,247 1,978,069 1,088,598
------------ -------------- ------------- -------------
Shares outstanding, end of period.............. 2,410,079 2,533,479 2,401,575 1,978,069
============ ============== ============= =============
CLASS C
Shares sold.................................... 11,382 23,316 10,273 23,254
Shares issued in reinvestment of distributions
to shareholders............................. 1,229 7,595 -- 1,642
Shares redeemed................................ (29,188) (65,381) (51,343) (26,402)
------------ -------------- ------------- -------------
Net decrease in shares outstanding............. (16,577) (34,470) (41,070) (1,506)
Shares outstanding, beginning of period........ 214,888 249,358 199,685 201,191
------------ -------------- ------------- -------------
Shares outstanding, end of period.............. 198,311 214,888 158,615 199,685
============ ============== ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Growth/Value Aggressive Growth
Fund Fund
Six Months Six Months
Ended Seven Months Year Ended Seven Months Year
September 30, Ended Ended September 30, Ended Ended
1998 March 31, Aug. 31, 1998 March 31, Aug. 31,
(Unaudited) 1998 1997 (Unaudited) 1998 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................................ 139,252 392,494 751,684 135,201 304,821 418,585
Shares issued in reinvestment of
distributions to shareholders......... -- 23,529 16,584 -- -- 376
Shares redeemed............................ (243,943) (343,315) (434,401) (188,131) (183,404) (158,580)
---------- ---------- --------- --------- --------- ---------
Net increase (decrease) in shares
outstanding........................... (104,691) 72,708 333,867 (52,930) 121,417 260,381
Shares outstanding, beginning of period.... 1,757,393 1,684,685 1,350,818 980,105 858,688 598,307
---------- ---------- --------- --------- --------- ---------
Shares outstanding, end of period.......... 1,652,702 1,757,393 1,684,685 927,175 980,105 858,688
---------- ---------- --------- --------- --------- ---------
</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>
UTILITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Market
COMMON STOCKS -- 94.4% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES -- 46.8%
Baltimore Gas & Electric Co.............................................. 50,050 $ 1,670,419
Cinergy Corp............................................................. 50,000 1,912,500
Cleco Corp............................................................... 30,000 1,010,625
CMS Energy Corp.......................................................... 60,000 2,613,750
DPL, Inc................................................................. 75,000 1,471,875
Duke Power Co............................................................ 42,000 2,779,875
FPL Group, Inc........................................................... 45,000 3,135,938
Kansas City Power & Light Co............................................. 50,000 1,521,875
Northern States Power Co................................................. 60,000 1,683,750
Scana Corp............................................................... 60,000 2,013,750
---------------
$ 19,814,357
---------------
TELECOMMUNICATIONS -- 34.8%
Ameritech Corp........................................................... 62,500 $ 2,960,937
AT&T Corp................................................................ 30,000 1,753,125
Bell Atlantic Corp....................................................... 50,000 2,421,875
BellSouth Corp........................................................... 50,000 3,762,500
GTE Corp................................................................. 45,000 2,475,000
Lucent Technologies, Inc................................................. 19,444 1,342,851
---------------
$ 14,716,288
---------------
GAS COMPANIES -- 7.6%
MCN Corp................................................................. 70,000 $ 1,194,375
Oneok, Inc............................................................... 25,000 850,000
Wicor, Inc............................................................... 50,000 1,193,750
---------------
$ 3,238,125
---------------
WATER COMPANIES -- 5.2%
American Water Works, Inc................................................ 70,000 $ 2,196,250
---------------
TOTAL COMMON STOCKS (Cost $23,062,956)................................... $ 39,965,020
---------------
====================================================================================================================================
Par Market
CORPORATE BONDS -- 5.2% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Dayton Power & Light Co., 8.40%, 12/01/22................................ $ 1,000,000 $ 1,055,423
New York Telephone Co., 9.375%, 7/15/31.................................. 1,000,000 1,143,556
-------------- ---------------
TOTAL CORPORATE BONDS (Amortized Cost $2,086,590)........................ $ 2,000,000 $ 2,198,979
============== ---------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND (continued)
====================================================================================================================================
Par Market
U. S. GOVERNMENT AGENCY ISSUES-- 0.3% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Federal Home Loan Bank Discount Note, 10/01/98 (Amortized Cost $127,000). $ 127,000 $ 127,000
============== ---------------
TOTAL INVESTMENT SECURITIES-- 99.9% (Amortized Cost $25,276,546)......... $ 42,290,999
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.1% ............................ 27,386
---------------
NET ASSETS-- 100.0% ..................................................... $ 42,318,385
===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
EQUITY FUND
PORTFOLIO OF INVESTMENTS
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Market
COMMON STOCKS -- 91.4% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER, NON-CYCLICAL -- 31.6%
Albertson's, Inc......................................................... 15,000 $ 811,875
American Home Products Corp.............................................. 20,000 1,047,500
Johnson & Johnson........................................................ 22,000 1,721,500
Merck & Co., Inc......................................................... 10,000 1,295,625
Newell Co................................................................ 30,000 1,381,875
PepsiCo, Inc............................................................. 35,000 1,030,313
Pfizer, Inc.............................................................. 20,000 2,118,750
Procter & Gamble Co...................................................... 25,000 1,773,437
Sara Lee Corp............................................................ 17,000 918,000
Schering-Plough Corp..................................................... 12,000 1,242,750
United Healthcare Corp................................................... 24,000 840,000
---------------
$ 14,181,625
---------------
FINANCIAL SERVICES -- 17.4%
AFLAC, Inc............................................................... 40,000 $ 1,142,500
American International Group............................................. 16,500 1,270,500
Bank of New York Co., Inc................................................ 60,000 1,642,500
Freddie Mac.............................................................. 30,000 1,483,125
Horace Mann Educators Corp............................................... 40,000 1,200,000
Norwest Corp............................................................. 30,000 1,074,375
---------------
$ 7,813,000
---------------
TECHNOLOGY -- 13.3%
Compaq Computer Corp. ................................................... 40,000 $ 1,265,000
Hewlett-Packard Co....................................................... 17,500 926,406
Intel Corp............................................................... 20,000 1,715,000
Loral Space & Communications* ........................................... 11,000 162,250
Lucent Technologies, Inc................................................. 3,888 268,515
Motorola, Inc............................................................ 9,000 384,188
Sun Microsystems, Inc.*.................................................. 25,000 1,245,312
---------------
$ 5,966,671
---------------
CONSUMER, CYCLICAL -- 11.3%
Gap, Inc................................................................. 30,000 $ 1,582,500
Mattel, Inc.............................................................. 40,000 1,120,000
McDonald's Corp.......................................................... 23,000 1,372,812
The Walt Disney Co....................................................... 39,000 987,188
---------------
$ 5,062,500
---------------
ENERGY -- 6.7%
Apache Corp.............................................................. 35,000 $ 938,438
Baker Hughes, Inc........................................................ 35,000 732,812
Enron Corp............................................................... 25,000 1,320,312
---------------
$ 2,991,562
---------------
INDUSTRIAL -- 5.0%
Deere & Co............................................................... 18,000 $ 544,500
Diebold, Inc............................................................. 30,000 660,000
Emerson Electric Co...................................................... 17,000 1,058,250
---------------
$ 2,262,750
---------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND (continued)
====================================================================================================================================
Market
COMMON STOCKS -- 91.4% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BASIC MATERIALS -- 3.1%
duPont (E.I.) de Nemours & Co............................................ 25,000 $ 1,403,125
---------------
CONGLOMERATES -- 3.0%
General Electric Co...................................................... 17,000 $ 1,352,563
---------------
TOTAL COMMON STOCKS (Cost $33,546,712)................................... $ 41,033,796
---------------
====================================================================================================================================
Face Market
REPURCHASE AGREEMENTS (1)-- 8.6% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Bank One, N.A., 5.62%, dated 9/30/98, due 10/01/98,
repurchase proceeds $3,855,602...................................... $ 3,855,000 $ 3,855,000
-------------- ---------------
TOTAL COMMON STOCKS AND REPURCHASE AGREEMENTS-- 100.0% .................. $ 44,888,796
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.0%) ......................... (13,894)
---------------
NET ASSETS-- 100.0% ..................................................... $ 44,874,902
===============
* Non-income producing security.
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
GROWTH/VALUE FUND
PORTFOLIO OF INVESTMENTS
September 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
Market
COMMON STOCKS -- 99.4% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY -- 31.1%
Compaq Computer Corp..................................................... 19,000 $ 600,875
Compuware Corp.*......................................................... 10,000 588,750
EMC Corp.*............................................................... 16,000 915,000
Intel Corp............................................................... 11,000 943,250
International Business Machines Corp..................................... 7,000 896,000
Lexmark International Group, Inc. - Class A*............................. 9,500 658,469
Novell, Inc.*............................................................ 89,000 1,090,250
Oracle Corp.*............................................................ 38,500 1,121,312
Sun Microsystems, Inc.*.................................................. 20,000 996,250
---------------
$ 7,810,156
---------------
HEALTH CARE -- 26.3%
Allegiance Corp.......................................................... 12,000 $ 357,000
Amgen, Inc.*............................................................. 8,000 604,500
Baxter International, Inc................................................ 11,000 654,500
Becton, Dickinson and Co................................................. 10,000 411,250
Bristol-Myers Squibb Co.................................................. 8,000 831,000
Columbia/HCA Healthcare Corp............................................. 17,000 341,062
Health Management Associates, Inc. - Class A*............................ 16,875 307,969
Integrated Health Services, Inc.......................................... 12,000 201,750
Pharmacia & Upjohn, Inc.................................................. 16,000 803,000
Schering-Plough Corp..................................................... 20,000 2,071,250
---------------
$ 6,583,281
---------------
RETAIL -- 12.3%
Consolidated Stores Corp.*............................................... 25,000 $ 490,625
CVS Corp................................................................. 20,000 876,250
Safeway, Inc.*........................................................... 15,000 695,625
Walgreen Co.............................................................. 4,600 202,688
Wal-Mart Stores, Inc..................................................... 15,000 819,375
---------------
$ 3,084,563
---------------
FINANCIAL SERVICES -- 9.0%
Ace, Ltd................................................................. 30,000 $ 900,000
Concord EFS, Inc.*....................................................... 29,700 766,631
National Data Corp....................................................... 19,000 586,625
---------------
$ 2,253,256
---------------
CONGLOMERATES -- 3.6%
Philip Morris Companies, Inc............................................. 19,500 $ 898,219
---------------
ENERGY -- 3.5%
McDermott International, Inc............................................. 10,000 $ 269,375
Schlumberger, Ltd........................................................ 12,000 603,750
---------------
$ 873,125
---------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND (continued)
====================================================================================================================================
Market
COMMON STOCKS -- 99.4% (continued) Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES -- 3.4%
The Williams Companies, Inc.............................................. 30,000 $ 862,500
---------------
ENTERTAINMENT -- 3.2%
Carnival Corp. - Class A................................................. 25,000 $ 795,312
---------------
TELECOMMUNICATIONS -- 3.0%
Sprint Corp.............................................................. 10,500 $ 756,000
---------------
CONSUMER PRODUCTS -- 1.9%
Rubbermaid, Inc.......................................................... 20,000 $ 478,750
---------------
ENVIRONMENTAL -- 1.2%
U.S. Filter Corp.*....................................................... 7,500 $ 120,000
Waste Management, Inc.*.................................................. 3,625 174,227
---------------
$ 294,227
---------------
TRANSPORTATION -- 0.9%
MotivePower Industries, Inc.*............................................ 10,000 $ 233,750
---------------
TOTAL COMMON STOCKS (Cost $20,185,846)................................... $ 24,923,139
---------------
====================================================================================================================================
Par Market
U. S. GOVERNMENT AGENCY ISSUES-- 1.0% Value Value
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank Discount Note, 10/01/98 (Amortized Cost $255,000). $ 255,000 $ 255,000
-------------- ---------------
TOTAL INVESTMENT SECURITIES--100.4% (Amortized Cost $20,440,846) ........ $ 25,178,139
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.4%) .......................... (93,529)
---------------
NET ASSETS-- 100.0% ..................................................... $ 25,084,610
---------------
* Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
September 30, 1998 (Unaudited)
====================================================================================================================================
Market
COMMON STOCKS -- 98.8% Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TECHNOLOGY -- 39.6%
Compuware Corp.*......................................................... 7,500 $ 441,563
EMC Corp.*............................................................... 10,000 571,875
Gateway 2000, Inc.*...................................................... 8,000 417,000
Intel Corp............................................................... 4,500 385,875
Lexmark International Group, Inc. - Class A*............................. 4,500 311,906
Micron Electronics, Inc.*................................................ 25,000 437,500
Novell, Inc.*............................................................ 55,000 673,750
Oracle Corp.*............................................................ 11,250 327,656
SCI Systems, Inc.*....................................................... 9,000 242,438
SMART Modular Technologies, Inc.*........................................ 30,000 616,875
Sun Microsystems, Inc.*.................................................. 10,000 498,125
---------------
$ 4,924,563
---------------
HEALTH CARE -- 27.7%
Allegiance Corp.......................................................... 14,000 $ 416,500
Alternative Living Services, Inc.*....................................... 10,000 267,500
Amgen, Inc.*............................................................. 6,200 468,488
Capital Senior Living Corp.*............................................. 14,800 151,700
Columbia/HCA Healthcare Corp............................................. 12,000 240,750
Elan Corp. plc - ADR*.................................................... 5,000 360,313
Forest Laboratories, Inc.*............................................... 10,000 343,750
Health Management Associates, Inc. - Class A*............................ 22,500 410,625
Integrated Health Services, Inc.......................................... 8,000 134,500
Pharmacia & Upjohn, Inc.................................................. 9,000 451,687
Sunrise Assisted Living, Inc.*........................................... 6,000 205,875
---------------
$ 3,451,688
---------------
FINANCIAL SERVICES -- 9.7%
Ace, Ltd................................................................. 18,000 $ 540,000
Concord EFS, Inc.*....................................................... 15,000 387,187
National Data Corp....................................................... 9,000 277,875
---------------
$ 1,205,062
---------------
RETAIL -- 9.6%
Consolidated Stores Corp.*............................................... 12,500 $ 245,312
CVS Corp................................................................. 10,500 460,031
Food Lion, Inc. - Class A................................................ 15,000 159,375
Walgreen Co.............................................................. 7,400 326,063
---------------
$ 1,190,781
---------------
TELECOMMUNICATIONS -- 3.0%
Sprint Corp.............................................................. 5,200 $ 374,400
---------------
ENTERTAINMENT -- 2.6%
Carnival Corp. - Class A................................................. 10,000 $ 318,125
---------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND (continued)
====================================================================================================================================
Market
COMMON STOCKS -- 98.8% (continued) Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 2.5%
McDermott International, Inc............................................. 7,000 $ 188,563
Schlumberger, Ltd........................................................ 2,500 125,781
---------------
.................................................................... $ 314,344
---------------
UTILITIES -- 2.3%
The Williams Companies, Inc.............................................. 10,000 $ 287,500
---------------
CONSUMER PRODUCTS -- 1.9%
Rubbermaid, Inc.......................................................... 10,000 $ 239,375
--------------
TRANSPORTATION -- 0.9%
MotivePower Industries, Inc.*............................................ 5,000 $ 116,875
---------------
TOTAL COMMON STOCKS (Cost $11,159,466) .................................. $ 12,422,713
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.2% ............................ 20,038
---------------
NET ASSETS-- 100.0% ..................................................... $ 12,442,751
===============
</TABLE>
* Non-income producing security.
ADR - American depositary receipt.
See accompanying notes to financial statements.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 51
<NAME> UTILITY FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 25,276,546
<INVESTMENTS-AT-VALUE> 42,290,999
<RECEIVABLES> 191,888
<ASSETS-OTHER> 3,838
<OTHER-ITEMS-ASSETS> 12,795
<TOTAL-ASSETS> 42,499,520
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181,135
<TOTAL-LIABILITIES> 181,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24,825,178
<SHARES-COMMON-STOCK> 2,410,079
<SHARES-COMMON-PRIOR> 2,533,479
<ACCUMULATED-NII-CURRENT> 63
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 478,691
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,014,453
<NET-ASSETS> 39,104,876
<DIVIDEND-INCOME> 715,388
<INTEREST-INCOME> 100,934
<OTHER-INCOME> 0
<EXPENSES-NET> 302,626
<NET-INVESTMENT-INCOME> 513,696
<REALIZED-GAINS-CURRENT> 478,638
<APPREC-INCREASE-CURRENT> (1,985,715)
<NET-CHANGE-FROM-OPS> (993,381)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 491,752
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 102,200
<NUMBER-OF-SHARES-REDEEMED> 252,836
<SHARES-REINVESTED> 27,236
<NET-CHANGE-IN-ASSETS> (3,357,981)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 53
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 159,703
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 302,626
<AVERAGE-NET-ASSETS> 39,104,248
<PER-SHARE-NAV-BEGIN> 16.76
<PER-SHARE-NII> .20
<PER-SHARE-GAIN-APPREC> (.53)
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.23
<EXPENSE-RATIO> 1.33
<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> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 25,276,546
<INVESTMENTS-AT-VALUE> 42,290,999
<RECEIVABLES> 191,888
<ASSETS-OTHER> 3,838
<OTHER-ITEMS-ASSETS> 12,795
<TOTAL-ASSETS> 42,499,520
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 181,135
<TOTAL-LIABILITIES> 181,135
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24,825,178
<SHARES-COMMON-STOCK> 198,311
<SHARES-COMMON-PRIOR> 214,888
<ACCUMULATED-NII-CURRENT> 63
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 478,691
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,014,453
<NET-ASSETS> 3,213,509
<DIVIDEND-INCOME> 715,388
<INTEREST-INCOME> 100,934
<OTHER-INCOME> 0
<EXPENSES-NET> 302,626
<NET-INVESTMENT-INCOME> 513,696
<REALIZED-GAINS-CURRENT> 478,638
<APPREC-INCREASE-CURRENT> (1,985,715)
<NET-CHANGE-FROM-OPS> (993,381)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 21,881
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 11,382
<NUMBER-OF-SHARES-REDEEMED> 29,188
<SHARES-REINVESTED> 1,229
<NET-CHANGE-IN-ASSETS> (383,025)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 53
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 159,703
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 302,626
<AVERAGE-NET-ASSETS> 3,346,687
<PER-SHARE-NAV-BEGIN> 16.74
<PER-SHARE-NII> .11
<PER-SHARE-GAIN-APPREC> (.54)
<PER-SHARE-DIVIDEND> .11
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.20
<EXPENSE-RATIO> 2.50
<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> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 37,401,712
<INVESTMENTS-AT-VALUE> 44,888,796
<RECEIVABLES> 42,105
<ASSETS-OTHER> 559
<OTHER-ITEMS-ASSETS> 22,218
<TOTAL-ASSETS> 44,953,678
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78,776
<TOTAL-LIABILITIES> 78,776
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,242,506
<SHARES-COMMON-STOCK> 2,401,575
<SHARES-COMMON-PRIOR> 1,978,069
<ACCUMULATED-NII-CURRENT> 736
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 144,576
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,487,084
<NET-ASSETS> 42,112,116
<DIVIDEND-INCOME> 216,860
<INTEREST-INCOME> 161,127
<OTHER-INCOME> 0
<EXPENSES-NET> 325,891
<NET-INVESTMENT-INCOME> 52,096
<REALIZED-GAINS-CURRENT> 144,480
<APPREC-INCREASE-CURRENT> (4,917,335)
<NET-CHANGE-FROM-OPS> (4,720,759)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 51,360
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 519,825
<NUMBER-OF-SHARES-REDEEMED> 99,063
<SHARES-REINVESTED> 2,744
<NET-CHANGE-IN-ASSETS> 3,775,693
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 96
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 176,060
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 325,891
<AVERAGE-NET-ASSETS> 43,499,330
<PER-SHARE-NAV-BEGIN> 19.38
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> (1.85)
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.54
<EXPENSE-RATIO> 1.31
<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> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 37,401,712
<INVESTMENTS-AT-VALUE> 44,888,796
<RECEIVABLES> 42,105
<ASSETS-OTHER> 559
<OTHER-ITEMS-ASSETS> 22,218
<TOTAL-ASSETS> 44,953,678
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78,776
<TOTAL-LIABILITIES> 78,776
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,242,506
<SHARES-COMMON-STOCK> 158,615
<SHARES-COMMON-PRIOR> 199,685
<ACCUMULATED-NII-CURRENT> 736
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 144,576
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,487,084
<NET-ASSETS> 2,762,786
<DIVIDEND-INCOME> 216,860
<INTEREST-INCOME> 161,127
<OTHER-INCOME> 0
<EXPENSES-NET> 325,891
<NET-INVESTMENT-INCOME> 52,096
<REALIZED-GAINS-CURRENT> 144,480
<APPREC-INCREASE-CURRENT> (4,917,335)
<NET-CHANGE-FROM-OPS> (4,720,759)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,273
<NUMBER-OF-SHARES-REDEEMED> 51,343
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1,098,787)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 96
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 176,060
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 325,891
<AVERAGE-NET-ASSETS> 3,336,310
<PER-SHARE-NAV-BEGIN> 19.34
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> (1.84)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.42
<EXPENSE-RATIO> 2.41
<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> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 20,440,846
<INVESTMENTS-AT-VALUE> 25,178,139
<RECEIVABLES> 29,086
<ASSETS-OTHER> 1,916
<OTHER-ITEMS-ASSETS> 23,712
<TOTAL-ASSETS> 25,232,853
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 148,243
<TOTAL-LIABILITIES> 148,243
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18,484,443
<SHARES-COMMON-STOCK> 1,652,702
<SHARES-COMMON-PRIOR> 1,757,393
<ACCUMULATED-NII-CURRENT> (106,733)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,969,607
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,737,293
<NET-ASSETS> 25,084,610
<DIVIDEND-INCOME> 111,312
<INTEREST-INCOME> 12,306
<OTHER-INCOME> 0
<EXPENSES-NET> 230,351
<NET-INVESTMENT-INCOME> (106,733)
<REALIZED-GAINS-CURRENT> 1,566,451
<APPREC-INCREASE-CURRENT> (3,374,936)
<NET-CHANGE-FROM-OPS> (1,915,218)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 139,252
<NUMBER-OF-SHARES-REDEEMED> 243,943
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (3,564,643)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 403,156
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 138,766
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 230,351
<AVERAGE-NET-ASSETS> 27,657,782
<PER-SHARE-NAV-BEGIN> 16.30
<PER-SHARE-NII> (.06)
<PER-SHARE-GAIN-APPREC> (1.06)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.18
<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> 9
<NAME> AGGRESSIVE GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 11,159,466
<INVESTMENTS-AT-VALUE> 12,422,713
<RECEIVABLES> 338,307
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 22,881
<TOTAL-ASSETS> 12,783,901
<PAYABLE-FOR-SECURITIES> 203,307
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 137,843
<TOTAL-LIABILITIES> 341,150
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,689,752
<SHARES-COMMON-STOCK> 927,175
<SHARES-COMMON-PRIOR> 980,105
<ACCUMULATED-NII-CURRENT> (98,091)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 587,843
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,263,247
<NET-ASSETS> 12,442,751
<DIVIDEND-INCOME> 30,670
<INTEREST-INCOME> 10,663
<OTHER-INCOME> 0
<EXPENSES-NET> 139,424
<NET-INVESTMENT-INCOME> (98,091)
<REALIZED-GAINS-CURRENT> 702,741
<APPREC-INCREASE-CURRENT> (2,992,169)
<NET-CHANGE-FROM-OPS> (2,387,519)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 135,201
<NUMBER-OF-SHARES-REDEEMED> 188,131
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (3,052,613)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (114,898)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 71,499
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 139,424
<AVERAGE-NET-ASSETS> 14,244,094
<PER-SHARE-NAV-BEGIN> 15.81
<PER-SHARE-NII> (.11)
<PER-SHARE-GAIN-APPREC> (2.28)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.42
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
