CAPITAL APPRECIATION Countrywide Investments
INCOME
SEMI-ANNUAL
REPORT
September 30, 1999
(Unaudited)
Utility Fund
Equity Fund
Growth/Value Fund
Aggressive Growth Fund
LOGO: COUNTRYWIDE INVESTMENTS
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Letter from the President......................................................3
Statements of Assets and Liabilities.........................................4-5
Statements of Operations.....................................................6-7
Statements of Changes in Net Assets..........................................8-9
Financial Highlights.......................................................10-16
Notes to Financial Statements..............................................17-22
Portfolios of Investments:
Utility Fund..........................................................23-24
Equity Fund...........................................................25-26
Growth/Value Fund.....................................................27-28
Aggressive Growth Fund...................................................29
Results of Special Meeting of Shareholders....................................30
2 - Countrywide Investments
<PAGE>
LETTER FROM THE PRESIDENT
- --------------------------------------------------------------------------------
photo: Robert H. Leshner
Dear Fellow Shareholders:
We are pleased to present Countrywide Strategic Trust's Semi-Annual Report for
the six months ended September 30, 1999. 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 16 mutual funds which comprise the Countrywide Family of
Funds.
We are pleased to announce that on October 29, 1999, Fort Washington Investment
Advisors, Inc., a registered investment advisory firm and part of the
Western-Southern Enterprise, completed the acquisition of Countrywide Financial
Services, Inc. The Western-Southern Enterprise, a dynamic financial services
group, includes The Western and Southern Life Insurance Company,
Western-Southern Life Assurance Company, Columbus Life Insurance Company,
Touchstone Advisors, Capital Analysts and Eagle Realty Group. With this
acquisition, Western-Southern Enterprise assets owned or under management have
passed the $20 billion mark. In cooperation with Fort Washington Investment
Advisors, we look forward to offering shareholders enhanced flexibility,
responsiveness and product diversity.
The U.S. economy remains remarkably strong. We attribute this to increased
activity in the manufacturing sector, low unemployment, healthy sales in the
housing market, strong GDP growth, negligible inflation and unwavering consumer
confidence. Markets suffered losses during the quarter ended September 30, 1999,
but this was indicative of a market correction rather than a persistent trend.
In spite of this volatility, the Countrywide Growth/Value Fund received national
recognition for its overall performance as of September 30, 1999.
Recent interest rate increases put downward price pressure on bonds.
Consequently, the bond market endured its worst year since 1994 and the second
worst year on record. Nevertheless, attractive opportunities exist, especially
in the corporate, mortgage-backed and government agency sectors of the market.
Historically, higher interest rates have been negative for both stocks and
bonds. Although this was the case during the calendar third quarter, we are
positive for the U.S. stock market going forward. Recovery in Asian economies
will continue to create additional demand for U.S. products, and the expected
build-up in inventories will be a positive for manufacturing. In addition, the
U.S. is better prepared than other countries to deal with Y2K issues. As a
result, we feel that there will be a strong demand for dollar denominated
investments as investors, concerned about an international lack of Y2K
preparedness, search for a safe haven.
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 offering continued service to you in the future.
Sincerely,
/s/ Robert H. Leshner
Robert H. Leshner
President
Countrywide Investments - 3
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------------
UTILITY EQUITY
(000's) FUND FUND
- ------------------------------------------------------------------------------------
ASSETS
Investment securities:
<S> <C> <C>
At acquisition cost $ 27,337 $ 40,058
=============================
At amortized cost $ 27,318 $ 40,058
=============================
At market value (Note 2) $ 44,887 $ 57,358
Repurchase agreements (Note 2) -- 6,410
Cash 1 4
Dividends and interest receivable 123 29
Receivable for capital shares sold 13 14
Other assets 13 27
-----------------------------
TOTAL ASSETS 45,037 63,842
-----------------------------
LIABILITIES
Dividends payable 26 --
Payable for capital shares redeemed 97 6
Payable to affiliates (Note 4) 35 57
Other accrued expenses and liabilities 12 18
-----------------------------
TOTAL LIABILITIES 170 81
-----------------------------
NET ASSETS $ 44,867 $ 63,761
=============================
NET ASSETS CONSIST OF:
Paid-in capital $ 25,153 $ 45,949
Accumulated net investment loss -- (64)
Accumulated net realized gains
from security transactions 2,145 576
Net unrealized appreciation on investments 17,569 17,300
-----------------------------
NET ASSETS $ 44,867 $ 63,761
=============================
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 41,519 $ 60,517
=============================
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)
(Note 5) 2,437 2,803
=============================
Net asset value and redemption
price per share (Note 2) $ 17.03 $ 21.59
=============================
Maximum offering price per share (Note 2) $ 18.07 $ 22.91
=============================
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 3,348 $ 3,244
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) 197 153
=============================
Net asset value and redemption
price per share (Note 2) $ 17.02 $ 21.21
=============================
Maximum offering price per share (Note 2) $ 17.24 $ 21.48
=============================
</TABLE>
See accompanying notes to financial statements.
4 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------------
GROWTH/ AGGRESSIVE
VALUE GROWTH
(000's) FUND FUND
- -------------------------------------------------------------------------------------
ASSETS
Investment securities:
<S> <C> <C>
At acquisition cost $ 14,742 $ 6,108
=============================
At amortized cost $ 14,742 $ 6,108
=============================
At market value (Note 2) $ 25,241 $ 10,793
Dividends receivable 4 --
Receivable for capital shares sold 129 9
Organization costs, net (Note 2) 6 6
Other assets 8 8
-----------------------------
TOTAL ASSETS 25,388 10,816
-----------------------------
LIABILITIES
Bank overdraft 212 108
Payable for capital shares redeemed 12 --
Payable to affiliates (Note 4) 17 6
Other accrued expenses and liabilities 12 10
-----------------------------
TOTAL LIABILITIES 253 124
-----------------------------
NET ASSETS $ 25,135 $ 10,692
=============================
NET ASSETS CONSIST OF:
Paid-in capital $ 13,504 $ 6,029
Accumulated net investment loss (129) (91)
Accumulated net realized gains from
security transactions 1,261 69
Net unrealized appreciation on investments 10,499 4,685
-----------------------------
NET ASSETS $ 25,135 $ 10,692
=============================
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 24,692 $ 10,692
=============================
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) 1,291 593
=============================
Net asset value and redemption
price per share (Note 2) $ 19.12 $ 18.02
=============================
Maximum offering price per share (Note 2) $ 20.29 $ 19.12
=============================
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 443
============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) (Note 5) 23
============
Net asset value and redemption
price per share (Note 2) $ 19.11
============
Maximum offering price per share (Note 2) $ 19.35
============
</TABLE>
See accompanying notes to financial statements.
Countrywide Investments - 5
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------------
UTILITY EQUITY
(000's) FUND FUND
- ------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C>
Dividends $ 709 $ 264
Interest 81 89
-----------------------------
TOTAL INVESTMENT INCOME 790 353
-----------------------------
EXPENSES
Investment advisory fees (Note 4) 172 231
Distribution expenses, Class A (Note 4) 47 73
Distribution expenses, Class C (Note 4) 15 16
Transfer agent fees, Class A (Note 4) 18 16
Transfer agent fees, Class C (Note 4) 6 6
Accounting services fees (Note 4) 18 21
Professional fees 11 14
Registration fees, Common 2 2
Registration fees, Class A 5 5
Registration fees, Class C 5 5
Custodian fees 7 8
Postage and supplies 7 7
Trustees' fees and expenses 6 6
Reports to shareholders 4 4
Other expenses 3 3
-----------------------------
TOTAL EXPENSES 326 417
-----------------------------
NET INVESTMENT INCOME (LOSS) 464 ( 64)
-----------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 614 504
Net change in unrealized appreciation/
depreciation on investments 3,799 (1,996)
-----------------------------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS 4,413 (1,492)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 4,877 $ (1,556)
=============================
</TABLE>
See accompanying notes to financial statements.
6 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1999 (Unaudited)
- ------------------------------------------------------------------------------------
GROWTH/ AGGRESSIVE
VALUE GROWTH
(000's) FUND FUND
- ------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C>
Dividends $ 43 $ 3
Interest 20 1
-----------------------------
TOTAL INVESTMENT INCOME 63 4
-----------------------------
EXPENSES
Investment advisory fees (Note 4) 115 48
Custodian fees 10 18
Accounting services fees (Note 4) 14 12
Interest expense (Note 6) -- 20
Professional fees 10 8
Registration fees, Common 9 8
Transfer agent fees, Class A (Note 4) 9 6
Transfer agent fees, Class C (Note 4) 2 --
Trustees' fees and expenses 6 6
Postage and supplies 5 4
Distribution expenses, Class A (Note 4) 4 2
Amortization of organization costs (Note 2) 3 3
Reports to shareholders 2 2
Other expenses 3 2
-----------------------------
TOTAL EXPENSES 192 139
Fees waived and expenses reimbursed
by the Adviser (Notes 4, 6) -- (44)
-----------------------------
NET EXPENSES 192 95
-----------------------------
NET INVESTMENT LOSS (129) (91)
-----------------------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 1,261 69
Net change in unrealized appreciation/
depreciation on investments 949 1,366
-----------------------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,210 1,435
-----------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,081 $ 1,344
=============================
</TABLE>
See accompanying notes to financial statements.
Countrywide Investments - 7
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------
UTILITY FUND EQUITY FUND
- -------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(000's) (UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment income (loss) $ 464 $ 961 $ (64) $ 57
Net realized gains from
security transactions 614 2,009 504 73
Net change in unrealized appreciation/
depreciation on investments 3,799 (5,230) (1,996) 6,891
---------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM OPERATIONS 4,877 (2,260) (1,556) 7,021
---------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A (449) (923) -- (57)
From net investment income, Class C (15) (38) -- --
Return of capital, Class A -- -- -- (8)
From net realized gains on security
transactions, Class A -- (441) -- --
From net realized gains on security
transactions, Class C -- (37) -- --
---------------------------------------------------
DECREASE IN NET ASSETS FROM
DISTRIBUTIONS TO SHAREHOLDERS (464) (1,439) -- (65)
---------------------------------------------------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5)
CLASS A
Proceeds from shares sold 2,483 4,525 9,089 16,147
Reinvested distributions 398 1,225 -- 63
Payments for shares redeemed (3,808) (6,425) (2,679) (5,648)
---------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM CLASS A SHARE
TRANSACTIONS (927) (675) 6,410 10,562
---------------------------------------------------
CLASS C
Proceeds from shares sold 250 424 305 567
Reinvested distributions 14 70 -- --
Payments for shares redeemed (489) (573) (104) (1,577)
---------------------------------------------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM CLASS C SHARE
TRANSACTIONS (225) (79) 201 (1,010)
---------------------------------------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 3,261 (4,453) 5,055 16,508
---------------------------------------------------
NET ASSETS
Beginning of period 41,606 46,059 58,706 42,198
---------------------------------------------------
End of period $ 44,867 $ 41,606 $ 63,761 $ 58,706
===================================================
</TABLE>
See accompanying notes to financial statements.
8 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------
GROWTH/VALUE FUND AGGRESSIVE GROWTH FUND
- ------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
SEPT. 30, ENDED SEPT. 30, ENDED
1999 MARCH 31, 1999 MARCH 31,
(000's) (UNAUDITED) 1999 (UNAUDITED) 1999
- ------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment loss $ (129) $ (236) $ (91) $ (190)
Net realized gains from
security transactions 1,261 3,988 69 1,735
Net change in unrealized appreciation/
depreciation on investments 949 1,438 1,366 ( 937)
---------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS 2,081 5,190 1,344 608
---------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains on security
transactions, Class A -- (4,391) -- (1,620)
---------------------------------------------------
FROM CAPITAL SHARE
TRANSACTIONS (NOTE 5)
CLASS A
Proceeds from shares sold 5,456 4,556 1,826 3,397
Reinvested distributions -- 2,552 -- 978
Payments for shares redeemed (7,517) (11,892) (3,880) (7,456)
---------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CLASS A SHARE TRANSACTIONS (2,061) (4,784) (2,054) (3,081)
---------------------------------------------------
CLASS C
Proceeds from shares sold 460 --
Reinvested distributions -- --
Payments for shares redeemed (9) --
-----------------------
NET INCREASE IN NET ASSETS FROM
CLASS C SHARE TRANSACTIONS 451 --
-----------------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 471 (3,985) (710) (4,093)
---------------------------------------------------
NET ASSETS
Beginning of period 24,664 28,649 11,402 15,495
---------------------------------------------------
End of period $ 25,135 $ 24,664 $ 10,692 $ 11,402
===================================================
</TABLE>
See accompanying notes to financial statements.
Countrywide Investments - 9
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 15.42 $ 16.76 $ 12.44 $ 12.24 $ 10.47 $ 10.52
-------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.18 0.38 0.43 0.46 0.47 0.43
Net realized and unrealized gains
(losses) on investments 1.61 (1.16) 4.56 0.22 1.77 (0.05)
-------------------------------------------------------------------------------------------
Total from investment operations 1.79 (0.78) 4.99 0.68 2.24 0.38
-------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.18) (0.38) (0.43) (0.46) (0.47) (0.43)
Distributions from net realized gains -- (0.18) (0.24) (0.02) -- --
-------------------------------------------------------------------------------------------
Total distributions (0.18) (0.56) (0.67) (0.48) (0.47) (0.43)
-------------------------------------------------------------------------------------------
Net asset value at end of period $ 17.03 $ 15.42 $ 16.76 $ 12.44 $ 12.24 $ 10.47
===========================================================================================
Total return(A) 11.61% (4.79%) 40.92% 5.61% 21.65% 3.68%
===========================================================================================
Net assets at end of period (000's) $ 41,519 $ 38,391 $ 42,463 $ 36,087 $ 40,424 $ 40,012
===========================================================================================
Ratio of net expenses
to average net assets 1.33%(B) 1.33% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income
to average net assets 2.11%(B) 2.30% 3.03% 3.65% 3.97% 4.06%
Portfolio turnover rate 5%(B) 4% 0% 3% 11% 17%
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Annualized.
See accompanying notes to financial statements.
10 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 15.40 $ 16.74 $ 12.43 $ 12.23 $ 10.46 $ 10.51
-------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.08 0.18 0.31 0.35 0.37 0.35
Net realized and unrealized gains
(losses) on investments 1.62 (1.16) 4.57 0.24 1.78 (0.04)
-------------------------------------------------------------------------------------------
Total from investment operations 1.70 (0.98) 4.88 0.59 2.15 0.31
-------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.08) (0.18) (0.33) (0.37) (0.38) (0.36)
Distributions from net realized gains -- (0.18) (0.24) (0.02) -- --
-------------------------------------------------------------------------------------------
Total distributions (0.08) (0.36) (0.57) (0.39) (0.38) (0.36)
-------------------------------------------------------------------------------------------
Net asset value at end of period $ 17.02 $ 15.40 $ 16.74 $ 12.43 $ 12.23 $ 10.46
===========================================================================================
Total return(A) 11.01% (5.92%) 39.91% 4.82% 20.78% 3.00%
===========================================================================================
Net assets at end of period (000's) $ 3,348 $ 3,215 $ 3,597 $ 3,099 $ 3,686 $ 3,599
===========================================================================================
Ratio of net expenses
to average net assets 2.50%(B) 2.50% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income
to average net assets 0.94%(B) 1.13% 2.28% 2.89% 3.19% 3.41%
Portfolio turnover rate 5%(B) 4% 0% 3% 11% 17%
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Annualized.
See accompanying notes to financial statements.
Countrywide Investments - 11
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS A
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 22.12 $ 19.38 $ 13.76 $ 12.45 $ 9.84 $ 9.26
-------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (0.02) 0.04 0.09 0.12 0.13 0.15
Net realized and unrealized gains
(losses) on investments (0.51) 2.73 5.76 1.35 2.60 0.59
-------------------------------------------------------------------------------------------
Total from investment operations (0.53) 2.77 5.85 1.47 2.73 0.74
-------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income -- (0.03) (0.08) (0.12) (0.12) (0.16)
Distributions from net realized gains -- -- (0.15) (0.04) -- --
-------------------------------------------------------------------------------------------
Total distributions -- (0.03) (0.23) (0.16) (0.12) (0.16)
-------------------------------------------------------------------------------------------
Net asset value at end of period $ 21.59 $ 22.12 $ 19.38 $ 13.76 $ 12.45 $ 9.84
===========================================================================================
Total return(A) (2.40%) 14.30% 42.74% 11.82% 27.90% 8.07%
===========================================================================================
Net assets at end of period (000's) $ 60,517 $ 55,561 $ 38,336 $ 14,983 $ 8,502 $ 4,300
===========================================================================================
Ratio of net expenses
to average net assets(B) 1.29%(C) 1.31% 1.25% 1.25% 1.25% 1.25%
Ratio of net investment income (loss)
to average net assets (0.15%)(C) 0.18% 0.53% 0.91% 1.06% 1.57%
Portfolio turnover rate 2%(C) 10% 7% 38% 38% 159%
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B) 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% and 1.94%
for the years ended March 31, 1997, 1996 and 1995, respectively.
(C) Annualized.
See accompanying notes to financial statements.
12 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
FINANCIAL HIGHLIGHTS - CLASS C
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
SEPT. 30, YEARS ENDED MARCH 31,
1999 -------------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 21.86 $ 19.34 $ 13.77 $ 12.46 $ 9.86 $ 9.26
-------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) (0.14) (0.19) (0.03) 0.02 0.05 0.10
Net realized and unrealized gains
(losses) on investments (0.51) 2.71 5.75 1.35 2.60 0.57
-------------------------------------------------------------------------------------------
Total from investment operations (0.65) 2.52 5.72 1.37 2.65 0.67
-------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income -- -- -- (0.02) (0.05) (0.07)
Distributions from net realized gains -- -- (0.15) (0.04) -- --
-------------------------------------------------------------------------------------------
Total distributions -- -- (0.15) (0.06) (0.05) (0.07)
-------------------------------------------------------------------------------------------
Net asset value at end of period $ 21.21 $ 21.86 $ 19.34 $ 13.77 $ 12.46 $ 9.86
===========================================================================================
Total return(A) (2.97%) 13.03% 41.63% 11.01% 26.90% 7.32%
===========================================================================================
Net assets at end of period (000's) $ 3,244 $ 3,146 $ 3,862 $ 2,770 $ 2,436 $ 1,995
===========================================================================================
Ratio of net expenses
to average net assets(B) 2.39%(C) 2.41% 2.00% 2.00% 2.00% 2.00%
Ratio of net investment income (loss)
to average net assets (1.25%)(C) (0.92%) (0.18%) 0.15% 0.38% 0.68%
Portfolio turnover rate 2%(C) 10% 7% 38% 38% 159%
</TABLE>
(A) Total returns shown exclude the effect of applicable sales loads.
(B) 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% and 2.50%
for the years ended March 31, 1997, 1996 and 1995, respectively.
(C) Annualized.
See accompanying notes to financial statements.
Countrywide Investments - 13
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND
FINANCIAL HIGHLIGHTS - CLASS A
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR SEVEN MONTHS YEAR PERIOD
SEPT. 30, ENDED ENDED ENDED ENDED
1999 MARCH 31, MARCH 31, AUGUST 31, AUGUST 31,
(UNAUDITED) 1999 1998(A) 1997 1996(B)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 17.50 $ 16.30 $ 15.90 $ 11.18 $ 10.00
--------------------------------------------------------------------------------
Income from investment operations:
Net investment loss (0.10) (0.17) (0.08) (0.13) (0.06)(C)
Net realized and unrealized
gains on investments 1.72 4.84 1.05 5.39 1.24
--------------------------------------------------------------------------------
Total from investment operations 1.62 4.67 0.97 5.26 1.18
--------------------------------------------------------------------------------
Distributions from net realized gains -- (3.47) (0.57) (0.54) --
--------------------------------------------------------------------------------
Net asset value at end of period $ 19.12 $ 17.50 $ 16.30 $ 15.90 $ 11.18
================================================================================
Total return(D) 9.26% 29.89% 6.43% 47.11% 11.80%
================================================================================
Net assets at end of period (000's) $ 24,692 $ 24,664 $ 28,649 $ 26,778 $ 15,108
================================================================================
Ratio of net expenses
to average net assets(E) 1.66%(F) 1.66% 1.66%(F) 1.95% 1.95%(F)
Ratio of net investment loss
to average net assets (1.11%)(F) (0.93%) (0.91%)(F) (1.03%) (0.62%)(F)
Portfolio turnover rate 36%(F) 59% 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.
(B) Represents the period from the commencement of operations (September 29,
1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Total returns shown exclude the effect of applicable sales loads.
(E) Absent fee waivers and/or expense reimbursements, the ratio of expenses to
average net assets would have been 2.83%(F) for the period ended August 31,
1996.
(F) Annualized.
See accompanying notes to financial statements.
14 - Countrywide Investments
<PAGE>
GROWTH/VALUE FUND
FINANCIAL HIGHLIGHTS - CLASS C
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
PERIOD
ENDED
SEPT. 30,
1999(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 18.65
----------
Income from investment operations:
Net investment loss (0.03)
Net realized and unrealized gains on investments 0.49
----------
Total from investment operations 0.46
----------
Net asset value at end of period $ 19.11
==========
Total return(B) 2.47%
==========
Net assets at end of period (000's) $ 443
==========
Ratio of net expenses to average net assets 2.41%(C)
Ratio of net investment loss to average net assets (2.03%)(C)
Portfolio turnover rate 36%(C)
(A) Represents the period from the initial public offering of Class C shares
(August 2, 1999) through September 30, 1999.
(B) Total return shown excludes the effect of applicable sales loads.
(C) Annualized.
See accompanying notes to financial statements.
Countrywide Investments - 15
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR SEVEN MONTHS YEAR PERIOD
SEPT. 30, ENDED ENDED ENDED ENDED
1999 MARCH 31, MARCH 31, AUGUST 31, AUGUST 31,
(UNAUDITED) 1999 1998(A) 1997 1996(B)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period $ 15.73 $ 15.81 $ 16.29 $ 10.95 $ 10.00
--------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.14) (0.27) (0.15) (0.17) (0.11)(C)
Net realized and unrealized gains
(losses) on investments 2.43 2.67 (0.33) 5.54 1.06
--------------------------------------------------------------------------------
Total from investment operations 2.29 2.40 (0.48) 5.37 0.95
--------------------------------------------------------------------------------
Distributions from net realized gains -- (2.48) -- (0.03) --
--------------------------------------------------------------------------------
Net asset value at end of period $ 18.02 $ 15.73 $ 15.81 $ 16.29 $ 10.95
================================================================================
Total return(D) 14.56% 15.46% (2.95%) 49.09% 9.50%
================================================================================
Net assets at end of period (000's) $ 10,692 $ 11,402 $ 15,495 $ 13,984 $ 6,550
================================================================================
Ratio of net expenses
to average net assets(E) 1.95%(F) 1.95% 1.95%(F) 1.94% 1.95%(F)
Ratio of net investment loss
to average net assets (1.74%)(F) (1.52%) (1.66%)(F) (1.57%) (1.26%)(F)
Portfolio turnover rate 17%(F) 93% 40%(F) 51% 16%
Amount of debt outstanding at
end of period $ -- $ -- n/a n/a n/a
Average daily amount of debt
outstanding during the
period (000's) $ 550 $ 80 n/a n/a n/a
Average daily number of capital shares
outstanding during the
period (000's) 593 818 n/a n/a n/a
Average amount of debt per share
during the period $ 0.93 $ 0.10 n/a n/a n/a
</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.
(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 2.86%(F), 2.00%, 2.62% and 5.05%(F) for
the periods ended September 30, 1999, March 31, 1999, August 31, 1997 and
August 31, 1996, respectively (Note 6).
(F) Annualized.
See accompanying notes to financial statements.
16 - Countrywide Investments
<PAGE>
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Utility Fund, Equity Fund, Growth/Value Fund and Aggressive Growth Fund
(individually, a Fund, and 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 Utility Fund seeks current income and capital appreciation by investing
primarily in common stocks of public utilities. The Fund invests in a
diversified portfolio of common, preferred and convertible preferred stocks of
domestic public utilities that currently pay dividends and which have been
operating for at least three years. Public utilities are those companies that
are involved in the production, supply or distribution of electricity, natural
gas, telecommunications and water.
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 invests
in a diversified portfolio of dividend-paying common stocks of mid and large
capitalization domestic companies having at least three years operating history.
The Growth/Value Fund seeks long-term capital appreciation primarily through
equity investments in companies whose valuations may not yet reflect the
prospects for accelerated earnings/cash flow growth. The Fund invests primarily
in domestic stocks of large-cap growth companies which are believed to have a
demonstrated record of achievement with excellent prospects for earnings and/or
cash flow growth over a three to five year period.
The Aggressive Growth Fund seeks long-term capital appreciation primarily
through equity investments. The Fund seeks growth opportunities among companies
of various sizes whose valuation may not yet reflect the prospects for
accelerated earnings/cash flow growth. The Fund invests primarily in common
stocks of domestic companies which are likely to benefit from new or innovative
products, services or processes.
The Utility Fund, Equity Fund and, effective August 1, 1999, Growth/Value Fund
each offer two classes of shares: Class A shares (currently sold subject to a
maximum front-end sales load of 5.75% and a distribution fee of up to 0.25% of
average daily net assets) and Class C shares (currently sold subject to a 1.25%
front-end sales load, a 1% contingent deferred sales load for a one-year period
and a distribution fee of up to 1% of average daily net assets). Each Class A
and Class C share of a Fund represents identical interests in the investment
portfolio of such Fund and has the same rights, except that (i) Class C shares
bear the expenses of higher distribution fees, which is expected to cause Class
C shares to have a higher expense ratio and to pay lower dividends than Class A
shares; (ii) certain other class specific expenses will be borne solely by the
class to which such expenses are attributable; and (iii) each class has
exclusive voting rights with respect to matters relating to its own distribution
arrangements.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
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.
Countrywide Investments - 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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, Equity Fund and Growth/Value Fund is calculated daily by dividing
the total value of a Fund's assets attributable to that class, less liabilities
attributable to that class, by the number of shares of that class outstanding.
The net asset value per share of the Aggressive Growth Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding.
Effective August 1, 1999, the maximum offering price per share of Class A shares
of the Utility Fund, Equity Fund and Growth/Value Fund and shares of the
Aggressive Growth Fund is equal to the net asset value per share plus a sales
load equal to 6.10% of the net asset value (or 5.75% of the offering price). The
maximum offering price per share of Class C shares of the Utility Fund, Equity
Fund and Growth/Value Fund is equal to the net asset value per share plus a
sales load equal to 1.27% of the net asset value (or 1.25% of the offering
price).
Prior to August 1, 1999, the maximum offering price per share of Class A shares
of the Utility Fund and Equity Fund and shares of the Growth/Value Fund and
Aggressive Growth Fund was 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 the Utility Fund and Equity Fund was equal
to the net asset value per share.
The redemption price per share of a Fund, or of each class of shares of a Fund,
is equal to the net asset value per share. However, Class C shares of the
Utility Fund, Equity Fund and Growth/Value 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 to shareholders quarterly for the Utility Fund and
Equity Fund and annually for 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,
Equity Fund and Growth/Value Fund are allocated daily to each class of shares
based upon its proportionate share of total net assets of the Fund. Class
specific expenses are charged directly to the class incurring the expense.
Common expenses which are not attributable to a specific class are allocated
daily to each class of shares based upon its proportionate share of total net
assets of the Fund.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are determined 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.
18 - Countrywide Investments
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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, 1999:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
GROWTH/ AGGRESSIVE
UTILITY EQUITY VALUE GROWTH
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation $ 17,684 $ 20,760 $ 10,931 $ 4,908
Gross unrealized depreciation (115) (3,460) (432) (223)
---------------------------------------------------
Net unrealized appreciation $ 17,569 $ 17,300 $ 10,499 $ 4,685
===================================================
Federal income tax cost $ 27,318 $ 40,058 $ 14,742 $ 6,108
===================================================
- -------------------------------------------------------------------------------------
</TABLE>
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments) were as follows for
the six months ended September 30, 1999:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
GROWTH/ AGGRESSIVE
UTILITY EQUITY VALUE GROWTH
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------
Purchases of investment
<S> <C> <C> <C> <C>
securities $ 1,017 $ 5,638 $ 3,982 $ 822
===================================================
Proceeds from sales and
maturities of investment
securities $ 1,775 $ 603 $ 4,408 $ 2,592
===================================================
- -------------------------------------------------------------------------------------
</TABLE>
4. TRANSACTIONS WITH AFFILIATES
The President and certain other officers of the Trust are also officers of
Countrywide Financial Services, Inc., or its subsidiaries which include
Countrywide Investments, Inc. (CII), the Trust's investment adviser or manager
and principal underwriter, and Countrywide Fund Services, Inc. (CFS), the
Trust's administrator, transfer agent and accounting services agent. Countrywide
Financial Services, Inc. is a wholly-owned subsidiary of Fort Washington
Investment Advisors, Inc., which is a wholly-owned subsidiary of The Western and
Southern Life Insurance Company.
MANAGEMENT AGREEMENTS
CII manages the investments of the Utility Fund and Equity Fund and provides
general investment supervisory services for the Growth/Value Fund and Aggressive
Growth Fund under the terms of separate Management Agreements. Under the
Management Agreements, the Utility Fund and Equity Fund each pay CII 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 CII 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.
Countrywide Investments - 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Mastrapasqua and Associates, Inc. (Mastrapasqua) has been retained by CII to
manage the investments of the Growth/Value Fund and Aggressive Growth Fund. CII
(not the Funds) pays Mastrapasqua a fee for these services.
In order to voluntarily reduce operating expenses of the Aggressive Growth Fund,
CII waived $24,155 of its investment advisory fees during the six months ended
September 30, 1999.
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 CFS 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 net asset levels, of $3,000 from each of the Utility Fund and
Growth/Value Fund, $3,500 from the Equity Fund and $2,000 from the Aggressive
Growth Fund. In addition, each Fund pays CFS certain out-of-pocket expenses
incurred by CFS in obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
CII 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 CII, CII earned $4,721, $2,640, $3,654 and $581
from underwriting and broker commissions on the sale of shares of the Utility
Fund, Equity Fund, Growth/Value Fund and Aggressive Growth Fund, respectively,
during the six months ended September 30, 1999. In addition, CII collected $159
and $150 of contingent deferred sales loads on the redemption of Class C shares
of the Utility Fund and Equity Fund, respectively.
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 CII 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
CII 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.
CUSTODIAN AGREEMENTS
Firstar Bank, N.A., which serves as the custodian for the Growth/Value Fund and
Aggressive Growth Fund, was a significant shareholder of record of each Fund as
of September 30, 1999. Under the terms of its Custodian Agreements, Firstar Bank
receives from each Fund an asset-based fee plus certain transaction charges.
20 - Countrywide Investments
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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 FUND EQUITY FUND
- --------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MARCH 31, SEPT. 30, MARCH 31,
1999 1999 1999 1999
- --------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C>
Shares sold 144 276 411 818
Shares reinvested 23 75 -- 3
Shares redeemed (219) (395) (119) (288)
---------------------------------------------------
Net increase (decrease) in shares
outstanding (52) (44) 292 533
Shares outstanding, beginning
of period 2,489 2,533 2,511 1,978
===================================================
Shares outstanding, end
of period 2,437 2,489 2,803 2,511
===================================================
CLASS C
Shares sold 15 26 14 29
Shares reinvested 1 4 -- --
Shares redeemed (28) (36) (5) (85)
---------------------------------------------------
Net increase (decrease) in shares
outstanding (12) (6) 9 (56)
Shares outstanding, beginning
of period 209 215 144 200
---------------------------------------------------
Shares outstanding, end of period 197 209 153 144
===================================================
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
GROWTH/VALUE FUND AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MARCH 31, SEPT. 30, MARCH 31,
1999 1999 1999 1999
- --------------------------------------------------------------------------------------
CLASS A
Shares sold 296 264 112 216
Shares reinvested -- 150 -- 64
Shares redeemed (415) (761) (244) (535)
---------------------------------------------------
Net decrease in shares
outstanding (119) (347) (132) (255)
Shares outstanding, beginning
of period 1,410 1,757 725 980
---------------------------------------------------
Shares outstanding, end of period 1,291 1,410 593 725
===================================================
CLASS C
Shares sold 24 --
Shares reinvested -- --
Shares redeemed (1) --
------------------------
Net increase in shares outstanding 23 --
Shares outstanding, beginning
of period -- --
------------------------
Shares outstanding, end of period 23 --
========================
- ------------------------------------------------------------------------------------
</TABLE>
Countrywide Investments - 21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
6. BORROWINGS
The Growth/Value Fund and Aggressive Growth Fund each have a Loan Agreement with
Firstar Bank, N.A., to be used for temporary or emergency purposes, including
the financing of capital share redemption requests that might otherwise require
the untimely disposition of securities. The Loan Agreements permit borrowings up
to a maximum principal amount outstanding not to exceed the lesser of $1,500,000
for the Growth/Value Fund and $3,000,000 for the Aggressive Growth Fund or
certain other amounts which are calculated based upon the amounts and
composition of assets in each Fund as defined in the Loan Agreement. Each Fund
agrees to pay interest on any unpaid principal balance at prevailing market
rates as defined in the Loan Agreement.
As of September 30, 1999, neither Fund had outstanding borrowings under the Loan
Agreement. The maximum amount outstanding during the six months ended September
30, 1999 for the Aggressive Growth Fund was $1,400,000 at a weighted average
interest rate of 7.82%. For the six months ended September 30, 1999, the
Aggressive Growth Fund incurred, and CII reimbursed, $19,835 of interest expense
on such borrowings.
22 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
- ---------------------------------------------------------------------------------------
MARKET
VALUE
COMMON STOCKS -- 95.1% SHARES (000's)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 42.1%
Ameritech Corp. 40,000 $ 2,687
AT&T Corp. 45,000 1,958
Bell Atlantic Corp. 50,000 3,366
BellSouth Corp. 75,000 3,375
GTE Corp. 45,000 3,459
Lucent Technologies, Inc. 38,888 2,523
Nortel Networks Corp. 30,000 1,530
----------
$ 18,898
----------
ELECTRIC UTILITIES -- 40.9%
AES Corp.* 45,000 $ 2,655
Cinergy Corp. 50,000 1,416
Cleco Corp. 30,000 973
CMS Energy Corp. 60,000 2,036
Constellation Energy Group 50,050 1,408
DPL, Inc. 75,000 1,322
Duke Power Co. 42,000 2,315
FPL Group, Inc. 45,000 2,267
Kansas City Power & Light Co. 50,000 1,209
Northern States Power Co. 60,000 1,294
Scana Corp. 60,000 1,451
----------
$ 18,346
----------
GAS COMPANIES -- 7.6%
MCN Corp. 70,000 $ 1,203
Oneok, Inc. 25,000 758
Wicor, Inc. 50,000 1,453
----------
$ 3,414
----------
WATER COMPANIES -- 4.5%
American Water Works, Inc. 70,000 $ 2,025
----------
Total Common Stocks (Cost $25,121) $ 42,683
----------
- ---------------------------------------------------------------------------------------
PAR MARKET
VALUE VALUE
CORPORATE BONDS -- 2.4% (000's) (000's)
- ---------------------------------------------------------------------------------------
New York Telephone Co., 9.375%, 7/15/31
(Amortized Cost $1,087) $ 1,000 $ 1,094
========== ----------
</TABLE>
Countrywide Investments - 23
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND (CONTINUED)
- ---------------------------------------------------------------------------------------
PAR MARKET
VALUE VALUE
COMMERCIAL PAPER -- 2.5% (000's) (000's)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
BP America, 10/01/99 (Amortized Cost $1,110) $ 1,110 $ 1,110
========== ----------
TOTAL INVESTMENT SECURITIES-- 100.0% (Amortized Cost $27,318) $ 44,887
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.0%) (20)
----------
NET ASSETS-- 100.0% $ 44,867
==========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
24 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
- ---------------------------------------------------------------------------------------
MARKET
VALUE
COMMON STOCKS -- 89.9% SHARES (000's)
- ---------------------------------------------------------------------------------------
CONSUMER, NON-CYCLICAL -- 25.6%
<S> <C> <C>
Abbott Laboratories 45,000 $ 1,654
Albertson's, Inc. 30,000 1,187
American Home Products Corp. 20,000 830
Johnson & Johnson 22,000 2,021
Medtronic, Inc. 60,000 2,130
Merck & Co., Inc. 20,000 1,296
Newell Rubbermaid, Inc. 30,000 857
PepsiCo, Inc. 35,000 1,059
Pfizer, Inc. 60,000 2,156
Procter & Gamble Co. 25,000 2,344
Sara Lee Corp. 34,000 797
----------
$ 16,331
----------
TECHNOLOGY -- 24.4%
Compaq Computer Corp. 40,000 $ 918
Hewlett-Packard Co. 17,500 1,610
Intel Corp. 40,000 2,973
Lucent Technologies, Inc. 7,776 504
MCI WorldCom, Inc.* 22,000 1,581
Motorola, Inc. 9,000 792
Nortel Networks Corp. 50,000 2,550
Sun Microsystems, Inc.* 50,000 4,650
----------
$ 15,578
----------
FINANCIAL SERVICES -- 14.5%
AFLAC, Inc. 40,000 $ 1,675
American International Group 20,625 1,793
Bank of New York Co., Inc. 60,000 2,006
Freddie Mac 30,000 1,560
Horace Mann Educators Corp. 40,000 1,032
Wells Fargo Co. 30,000 1,189
----------
$ 9,255
----------
CONSUMER, CYCLICAL -- 11.5%
Gap, Inc. 67,500 $ 2,160
Mattel, Inc. 55,000 1,045
McDonald's Corp. 46,000 1,978
The TJX Companies, Inc. 40,000 1,123
The Walt Disney Co. 39,000 1,009
----------
$ 7,315
----------
ENERGY -- 5.6%
Apache Corp. 35,000 $ 1,512
Enron Corp. 50,000 2,062
----------
$ 3,574
----------
CONGLOMERATES -- 3.1%
General Electric Co. 17,000 $ 2,015
----------
</TABLE>
Countrywide Investments - 25
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND (CONTINUED)
- ---------------------------------------------------------------------------------------
MARKET
VALUE
COMMON STOCKS -- 89.9% (CONTINUED) SHARES (000's)
- ---------------------------------------------------------------------------------------
INDUSTRIAL -- 2.8%
<S> <C> <C>
Diebold, Inc. 30,000 $ 694
Emerson Electric Co. 17,000 1,074
----------
$ 1,768
----------
BASIC MATERIALS -- 2.4%
duPont (E.I.) de Nemours & Co. 25,000 $ 1,522
----------
TOTAL COMMON STOCKS (Cost $40,058) $ 57,358
----------
- ---------------------------------------------------------------------------------------
FACE MARKET
VALUE VALUE
REPURCHASE AGREEMENTS(1) -- 10.1% (000's) (000's)
- ---------------------------------------------------------------------------------------
Nesbitt Burns Securities, Inc., 5.05%, dated 9/30/99,
due 10/01/99, repurchase proceeds $6,411 (Cost $6,410) $ 6,410 $ 6,410
========== ----------
TOTAL COMMON STOCKS AND REPURCHASE AGREEMENTS-- 100.0% $ 63,768
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.0%) (7)
----------
NET ASSETS-- 100.0% $ 63,761
==========
</TABLE>
* Non-income producing security.
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
See accompanying notes to financial statements.
26 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
- ---------------------------------------------------------------------------------------
MARKET
VALUE
COMMON STOCKS -- 97.8% SHARES (000's)
- ---------------------------------------------------------------------------------------
TECHNOLOGY -- 57.9%
<S> <C> <C>
Applied Materials, Inc.* 21,000 $ 1,635
Compuware Corp.* 20,000 521
EMC Corp.* 22,000 1,572
Intel Corp. 12,000 892
International Business Machines Corp. (IBM) 7,000 850
Novell, Inc.* 89,000 1,841
Oracle Corp.* 57,750 2,628
Sun Microsystems, Inc.* 40,000 3,720
Teradyne, Inc.* 11,600 409
Texas Instruments, Inc. 6,000 494
----------
$ 14,562
----------
HEALTH CARE -- 20.6%
Amgen, Inc.* 10,000 $ 815
Bristol-Myers Squibb Co. 16,000 1,080
IDEC Pharmaceuticals Corp.* 4,700 442
Merck & Co., Inc. 7,000 454
PE Corp. - PE Biosystems Group 10,000 722
Pharmacia & Upjohn, Inc. 16,000 794
Schering-Plough Corp. 20,000 873
----------
$ 5,180
----------
AEROSPACE/DEFENSE -- 4.8%
General Dynamics Corp. 11,200 $ 699
Northrop Grumman Corp. 8,000 509
----------
$ 1,208
----------
ENTERTAINMENT -- 4.3%
Carnival Corp. - Class A 25,000 $ 1,087
----------
FINANCIAL SERVICES -- 3.7%
Concord EFS, Inc.* 44,550 $ 919
----------
RETAIL -- 2.4%
CVS Corp. 15,000 $ 612
----------
UTILITIES -- 1.8%
Montana Power Co. 15,000 $ 456
----------
TELECOMMUNICATIONS -- 1.6%
Broadcom Corp. - Class A* 3,600 $ 392
----------
TRANSPORTATION -- 0.7%
MotivePower Industries, Inc.* 15,000 $ 165
----------
TOTAL COMMON STOCKS (Cost $14,082) $ 24,581
----------
</TABLE>
Countrywide Investments - 27
<PAGE>
<TABLE>
<CAPTION>
GROWTH/VALUE FUND (CONTINUED)
- ---------------------------------------------------------------------------------------
PAR MARKET
VALUE VALUE
U. S. GOVERNMENT AGENCY ISSUES-- 2.6% (000's) (000's)
- ---------------------------------------------------------------------------------------
<S> <C> <C>
FNMA Discount Note, 10/01/99 (Amortized Cost $660) $ 660 $ 660
========== ----------
TOTAL INVESTMENT SECURITIES-- 100.4% (Amortized Cost $14,742) $ 25,241
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.4%) (106)
----------
NET ASSETS-- 100.0% $ 25,135
==========
</TABLE>
* Non-income producing security.
See accompanying notes to financial statements.
28 - Countrywide Investments
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1999 (UNAUDITED)
- ---------------------------------------------------------------------------------------
MARKET
VALUE
COMMON STOCKS -- 100.9% SHARES (000's)
- ---------------------------------------------------------------------------------------
TECHNOLOGY -- 58.7%
<S> <C> <C>
Compuware Corp.* 25,000 $ 652
EMC Corp.* 10,000 714
Intel Corp. 9,000 669
Novell, Inc.* 50,000 1,034
Oracle Corp.* 16,875 768
SMART Modular Technologies, Inc.* 30,000 1,022
Sun Microsystems, Inc.* 10,000 930
Teradyne, Inc.* 14,000 493
----------
$ 6,282
----------
HEALTH CARE -- 25.5%
Amgen, Inc.* 6,000 $ 489
Biogen, Inc.* 8,000 631
Elan Corp. plc - ADR* 6,000 201
Genentech, Inc.* 3,500 512
IDEC Pharmaceuticals Corp.* 1,800 169
PE Corp. - PE Biosystems Group 3,800 275
Pharmacia & Upjohn, Inc. 9,000 447
----------
$ 2,724
----------
TELECOMMUNICATIONS -- 6.2%
JDS Uniphase Corp.* 5,800 $ 660
----------
ENTERTAINMENT -- 4.0%
Carnival Corp. - Class A 10,000 $ 435
----------
RETAIL -- 3.8%
CVS Corp. 5,500 $ 224
Shop at Home, Inc.* 20,000 180
----------
$ 404
----------
TRANSPORTATION -- 2.7%
MotivePower Industries, Inc.* 7,500 $ 83
Southwest Airlines Co. 13,500 205
----------
$ 288
----------
TOTAL COMMON STOCKS-- 100.9% (COST $6,108) $ 10,793
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.9%) (101)
----------
NET ASSETS-- 100.0% $ 10,692
==========
</TABLE>
* Non-income producing security.
ADR - American depository receipt.
See accompanying notes to financial statements.
Countrywide Investments - 29
<PAGE>
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
OCTOBER 27, 1999
- --------------------------------------------------------------------------------
On October 27, 1999, a Special Meeting of Shareholders of Countrywide Strategic
Trust (the Trust) was held (1) to approve or disapprove new investment advisory
agreements with Countrywide Investments, Inc., (2) to approve or disapprove new
subadvisory agreements with Mastrapasqua & Associates, Inc. with respect to the
Growth/Value Fund and Aggressive Growth Fund, (3) to elect nine trustees and (4)
to ratify or reject the selection of Arthur Andersen LLP as the Trust's
independent public accountants for the fiscal year ending March 31, 2000. The
total number of shares of the Trust present by proxy represented 68.0% of the
shares entitled to vote at the meeting. Each of the matters submitted to
shareholders was approved.
The results of the voting for or against the approval of the new investment
advisory agreements by each Fund was as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
NUMBER OF SHARES
---------------------------------------------------
FOR AGAINST ABSTAIN
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utility Fund 1,419,359.227 10,442.268 31,261.879
Equity Fund 2,024,821.656 2,420.277 27,228.625
Growth/Value Fund 974,237.511 1,312.205 6,067.362
Aggressive Growth Fund 459,393.774 599.476 335.120
- ------------------------------------------------------------------------------------
</TABLE>
The results of the voting for or against the approval of the new subadvisory
agreements by the Growth/Value Fund and Aggressive Growth Fund was as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
NUMBER OF SHARES
---------------------------------------------------
FOR AGAINST ABSTAIN
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth/Value Fund 973,087.560 2,386.459 6,143.059
Aggressive Growth Fund 459,313.695 599.476 415.199
- ------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
The results of the voting for the election of trustees was as follows:
- ------------------------------------------------------------------------------------
WITHHOLD
NOMINEES FOR ELECTION AUTHORITY STATUS
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
William O. Coleman 4,916,862.312 40,617.068 New Trustee
Phillip R. Cox 4,916,658.805 40,820.575 New Trustee
H. Jerome Lerner 4,916,063.001 41,416.379 Incumbent
Robert H. Leshner 4,916,862.312 40,617.068 Incumbent
Jill T. McGruder 4,916,648.817 40,830.563 New Trustee
Oscar P. Robertson 4,907,373.918 50,105.462 Incumbent
Nelson Schwab, Jr. 4,915,206.854 42,272.526 New Trustee
Robert E. Stautberg 4,916,862.312 40,617.068 New Trustee
Joseph S. Stern, Jr. 4,907,945.634 49,533.746 New Trustee
- ------------------------------------------------------------------------------------
</TABLE>
The results of the voting for or against the ratification of Arthur Andersen LLP
as independent public accountants by each Fund was as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
NUMBER OF SHARES
FOR AGAINST ABSTAIN
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utility Fund 1,430,679.854 2,814.237 27,569.283
Equity Fund 2,029,342.815 1,044.546 24,083.197
Growth/Value Fund 975,459.363 3,725.603 2,432.112
Aggressive Growth Fund 457,754.758 2,176.928 396.684
- ------------------------------------------------------------------------------------
</TABLE>
30 - Countrywide Investments
<PAGE>
This Page Intentionally Left Blank.
Countrywide Investments - 31
<PAGE>
COUNTRYWIDE STRATEGIC TRUST
- --------------------------------------------------------------------------------
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
www.countrywideinvestments.com
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
- --------------------------------------------------------------------------------
William O. Coleman
Phillip R. Cox
H. Jerome Lerner
Robert H. Leshner
Jill T. McGruder
Oscar P. Robertson
Nelson Schwab, Jr.
Robert E. Stautberg
Joseph S. Stern, Jr.
INVESTNEMT ADVISER/MANAGER
- --------------------------------------------------------------------------------
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.
<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-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 27,318,226
<INVESTMENTS-AT-VALUE> 44,887,567
<RECEIVABLES> 136,296
<ASSETS-OTHER> 595
<OTHER-ITEMS-ASSETS> 12,620
<TOTAL-ASSETS> 45,037,078
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170,458
<TOTAL-LIABILITIES> 170,458
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,152,105
<SHARES-COMMON-STOCK> 2,437,345
<SHARES-COMMON-PRIOR> 2,488,896
<ACCUMULATED-NII-CURRENT> (81)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,145,255
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,569,341
<NET-ASSETS> 41,518,330
<DIVIDEND-INCOME> 708,679
<INTEREST-INCOME> 81,067
<OTHER-INCOME> 0
<EXPENSES-NET> 326,111
<NET-INVESTMENT-INCOME> 463,635
<REALIZED-GAINS-CURRENT> 614,475
<APPREC-INCREASE-CURRENT> 3,798,882
<NET-CHANGE-FROM-OPS> 4,876,992
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 448,395
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 144,235
<NUMBER-OF-SHARES-REDEEMED> 218,645
<SHARES-REINVESTED> 22,859
<NET-CHANGE-IN-ASSETS> 3,127,394
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,530,780
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 172,305
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 326,111
<AVERAGE-NET-ASSETS> 42,335,336
<PER-SHARE-NAV-BEGIN> 15.42
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> 1.61
<PER-SHARE-DIVIDEND> (.18)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.03
<EXPENSE-RATIO> 1.33
</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-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 27,318,226
<INVESTMENTS-AT-VALUE> 44,887,567
<RECEIVABLES> 136,296
<ASSETS-OTHER> 595
<OTHER-ITEMS-ASSETS> 12,620
<TOTAL-ASSETS> 45,037,078
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 170,458
<TOTAL-LIABILITIES> 170,458
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,152,105
<SHARES-COMMON-STOCK> 196,782
<SHARES-COMMON-PRIOR> 208,694
<ACCUMULATED-NII-CURRENT> (81)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,145,255
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,569,341
<NET-ASSETS> 3,348,290
<DIVIDEND-INCOME> 708,679
<INTEREST-INCOME> 81,067
<OTHER-INCOME> 0
<EXPENSES-NET> 326,111
<NET-INVESTMENT-INCOME> 463,635
<REALIZED-GAINS-CURRENT> 614,475
<APPREC-INCREASE-CURRENT> 3,798,882
<NET-CHANGE-FROM-OPS> 4,876,992
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 15,321
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 15,446
<NUMBER-OF-SHARES-REDEEMED> 28,173
<SHARES-REINVESTED> 815
<NET-CHANGE-IN-ASSETS> 133,400
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,530,780
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 172,305
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 326,111
<AVERAGE-NET-ASSETS> 3,505,032
<PER-SHARE-NAV-BEGIN> 15.40
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 1.62
<PER-SHARE-DIVIDEND> (.08)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.02
<EXPENSE-RATIO> 2.50
</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-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 46,468,129
<INVESTMENTS-AT-VALUE> 63,767,991
<RECEIVABLES> 43,072
<ASSETS-OTHER> 3,865
<OTHER-ITEMS-ASSETS> 27,559
<TOTAL-ASSETS> 63,842,487
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 81,100
<TOTAL-LIABILITIES> 81,100
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 45,948,938
<SHARES-COMMON-STOCK> 2,803,188
<SHARES-COMMON-PRIOR> 2,511,439
<ACCUMULATED-NII-CURRENT> (63,724)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 576,311
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,299,862
<NET-ASSETS> 60,517,010
<DIVIDEND-INCOME> 263,973
<INTEREST-INCOME> 88,700
<OTHER-INCOME> 0
<EXPENSES-NET> 416,397
<NET-INVESTMENT-INCOME> (63,724)
<REALIZED-GAINS-CURRENT> 503,530
<APPREC-INCREASE-CURRENT> (1,995,892)
<NET-CHANGE-FROM-OPS> (1,556,086)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 411,221
<NUMBER-OF-SHARES-REDEEMED> 119,472
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 4,956,307
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 72,781
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 230,827
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 416,397
<AVERAGE-NET-ASSETS> 58,107,732
<PER-SHARE-NAV-BEGIN> 22.12
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> (.51)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.59
<EXPENSE-RATIO> 1.29
</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-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 46,468,129
<INVESTMENTS-AT-VALUE> 63,767,991
<RECEIVABLES> 43,072
<ASSETS-OTHER> 3,865
<OTHER-ITEMS-ASSETS> 27,559
<TOTAL-ASSETS> 63,842,487
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 81,100
<TOTAL-LIABILITIES> 81,100
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 45,948,938
<SHARES-COMMON-STOCK> 152,951
<SHARES-COMMON-PRIOR> 143,890
<ACCUMULATED-NII-CURRENT> (63,724)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 576,311
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 17,299,862
<NET-ASSETS> 3,244,377
<DIVIDEND-INCOME> 263,973
<INTEREST-INCOME> 88,700
<OTHER-INCOME> 0
<EXPENSES-NET> 416,397
<NET-INVESTMENT-INCOME> (63,724)
<REALIZED-GAINS-CURRENT> 503,530
<APPREC-INCREASE-CURRENT> (1,995,892)
<NET-CHANGE-FROM-OPS> (1,556,086)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 13,754
<NUMBER-OF-SHARES-REDEEMED> 4,693
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 98,841
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 72,781
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 230,827
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 416,397
<AVERAGE-NET-ASSETS> 3,305,727
<PER-SHARE-NAV-BEGIN> 21.86
<PER-SHARE-NII> (.14)
<PER-SHARE-GAIN-APPREC> (.51)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.21
<EXPENSE-RATIO> 2.39
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 6,107,585
<INVESTMENTS-AT-VALUE> 10,792,825
<RECEIVABLES> 9,638
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 14,305
<TOTAL-ASSETS> 10,816,768
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 124,362
<TOTAL-LIABILITIES> 124,362
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,028,564
<SHARES-COMMON-STOCK> 593,265
<SHARES-COMMON-PRIOR> 724,665
<ACCUMULATED-NII-CURRENT> (90,590)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 69,192
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,685,240
<NET-ASSETS> 10,692,406
<DIVIDEND-INCOME> 3,212
<INTEREST-INCOME> 860
<OTHER-INCOME> 0
<EXPENSES-NET> 94,662
<NET-INVESTMENT-INCOME> (90,590)
<REALIZED-GAINS-CURRENT> 69,192
<APPREC-INCREASE-CURRENT> 1,366,508
<NET-CHANGE-FROM-OPS> 1,345,110
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 112,343
<NUMBER-OF-SHARES-REDEEMED> 243,743
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (709,704)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 48,493
<INTEREST-EXPENSE> 19,835
<GROSS-EXPENSE> 138,651
<AVERAGE-NET-ASSETS> 9,668,132
<PER-SHARE-NAV-BEGIN> 15.73
<PER-SHARE-NII> (.14)
<PER-SHARE-GAIN-APPREC> 2.43
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.02
<EXPENSE-RATIO> 1.95
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 81
<NAME> GROWTH/VALUE FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
<INVESTMENTS-AT-COST> 14,741,332
<INVESTMENTS-AT-VALUE> 25,240,766
<RECEIVABLES> 133,398
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 13,939
<TOTAL-ASSETS> 25,388,103
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 253,115
<TOTAL-LIABILITIES> 253,115
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 13,503,718
<SHARES-COMMON-STOCK> 1,291,242
<SHARES-COMMON-PRIOR> 1,409,641
<ACCUMULATED-NII-CURRENT> (128,832)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,260,668
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,499,434
<NET-ASSETS> 24,692,097
<DIVIDEND-INCOME> 43,421
<INTEREST-INCOME> 19,589
<OTHER-INCOME> 0
<EXPENSES-NET> 191,842
<NET-INVESTMENT-INCOME> (128,832)
<REALIZED-GAINS-CURRENT> 1,260,668
<APPREC-INCREASE-CURRENT> 949,198
<NET-CHANGE-FROM-OPS> 2,081,034
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 296,634
<NUMBER-OF-SHARES-REDEEMED> 415,033
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 28,370
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 115,445
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 191,842
<AVERAGE-NET-ASSETS> 22,970,086
<PER-SHARE-NAV-BEGIN> 17.50
<PER-SHARE-NII> (.10)
<PER-SHARE-GAIN-APPREC> 1.72
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> COUNTRYWIDE STRATEGIC TRUST
<SERIES>
<NUMBER> 83
<NAME> GROWTH/VALUE FUND - CLASS C
<S> <C>
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</TABLE>
