[FRONT COVER]
CITIZENS
TRUST
1995
SEMI-ANNUAL
REPORT
"Technology)
does not isolate
us from the
great problems
of nature, but
plunges us
more deeply
into them. . ."
Antoine de Saint-Exupery
Wind, Sand, and Stars
<PAGE>
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P R E S I D E N T ' S L E T T E R
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A Terrific Year...
Dear Shareholders:
This has really been a terrific year for the Fund and its shareholders. Our
investment approach of focusing on financial performance while maintaining our
high standards of corporate responsibility paid off in spades this year.
Two of our funds rank #1 in financial performance in their respective
categories, and all of our portfolios turned in strong positive performance.
Successful investing in high technology companies was an important strategy in
several portfolios, and the cover of our 1995 Semi-Annual Report reflects this
theme.
The Citizens Index is born. In the early part of the year the big news was the
shareholders' approval of merging the Citizens Growth Portfolio and the Citizens
Balanced Portfolio into the Citizens Index Portfolio.
The reason for the merger was to gain the twin benefits of indexing and
corporate screening. By investing in 300 of the country's most forward thinking
companies we believed we would position ourselves for strong returns, while
reducing risk. At the year end the Citizens Index Portfolio had assets of $123
million dollars and a return of 24.05% for the period from March 3 through
December 31, 1995--a good start that earned over $14 million dollars for the
shareholders of Citizens Index Portfolio.
#1 Fund. Citizens Emerging Growth Portfolio, which has the objective of
aggressive growth and focuses on small and medium sized domestic companies, had
a total return of 40.73% in 1995 (24.21% overall annual return since inception
on 2/8/94). This portfolio was ranked #1 overall in performance among the 43
socially responsible funds tracked by Morningstar for the year ended 12/31/95.
Our other #1 fund! In July of 1995 we introduced the E[bullet]fund, the
first and only money market fund with a debit card. At the end of the year it
had an annualized total return for the quarter of 6.13% which ranked it the #1
overall money market fund in America (of 266 General Purpose Funds, as reported
in IBC's Quarterly Report on Money Fund Performance, 4th Quarter 1995).
The E[bullet]fund, which is designed to replace the traditional bank
checking account, is available to people who use direct payroll deposit or
another automated investment program.
Fund Operations Update. Since my last report in June we have at last
completed the transition from our former transfer agency, Norwest Bank, to PFPC.
The reason we made the change was that Norwest, in a surprise change of
corporate strategy, decided to "exit" the transfer agency business in the middle
of its contract with us. As inconvenient as this was, Norwest did pay us a
settlement, so we did not suffer a financial loss as a result of the change.
There's no doubt that we are living in interesting times -- sometimes
terrifying, often wondrous. Our largest corporations are merging, consolidating
and restructuring to create enterprises of unprecedented size and scope. At the
same time, new information technologies are emerging which promise extraordinary
power to the individual.
In a recent New York Times editorial (December 18, 1995), Anthony Lewis
addressed the issue of "atomization" in American culture: a process he describes
as "becoming less engaged in our communities," a general decline in "social
trust."
While naming television and the electronic revolution in communications as
the general provocateurs of this fragmentation, Mr. Lewis also addresses the
limits of individual decision-making. "The individual cannot give a society
clean water or safe drugs," he says. This requires a community. A community that
votes -- and cares.
To this we might add the importance of investing responsibly, and joining
the ever-expanding community of successful shareholders at Citizens Trust.
Sincerely,
/s/ Sophia Collier
- -----------------------
Sophia Collier, President
December 31, 1995 Semi-Annual Report 1
<PAGE>
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M A N A G E R S ' C O M M E N T S
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E[bullet]fund
MANAGER:
Danita Wright
ASSETS:
$2.8 Million
Objective: Money market fund designed to replace a traditional checking account.
Results: This fund is the #1 money market fund in America (of 266 General
Purpose Funds, as reported in IBC's Quarterly Report on Money Fund Performance,
4th Quarter 1995).
The strategy: Our strong performance has two sources. First, we have invested in
loans to small businesses that are guaranteed as to interest and principal by
the U.S. Government. These are called "variable rate notes" because they are
over a year in maturity but have interest rates that "reset" on a monthly or
quarterly basis in the same manner as an adjustable rate mortgage. These small
business administration loans have caused controversy because they are unusual
for a money market fund and they have a higher yield than some of the ordinary
loans to big businesses that are the stock-in-trade of the money market world.
However, we have invested in these securities in our original money market
portfolio for almost 10 years, and we believe that it is important for small
businesses to gain the same access to the global money markets as large
companies have. The fact that these investments have helped us become the best
performer is the essence of good socially responsible investment practices.
But wait, there's more! The second source of strong performance in the
E[bullet]fund is an interesting feature called the E[bullet]fund Refund which is
totally unique to the E[bullet]fund. The E[bullet]fund is the only money market
fund to come with a debit card. When the card is used, 1% of the charges, up to
the IRS limit of 10% of the gross investment income, are returned to the fund as
part of the shared savings from reduced paperwork and other benefits from
electronic transactions. Although there is no guarantee, this has the potential
to increase the fund's total return by half a percent in today's interest rate
environment. It is already an important source of revenue for shareholders.
Outlook: It is likely that interest rates will be moving downward somewhatin
coming months. However, our two sources of strong performance are likely to
continue to make the E[bullet]fund an attractive alternative to a traditional
checking account.
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Citizens Index
Portfolio
MANAGER:
John Denney
ASSETS:
$123 Million
Objective: Capital appreciation
Results: Appreciate they did. Total return of 24.05% since inception on March 3,
1995.
The strategy: Like other index funds, the Citizens Index Portfolio's strategy is
full investment in a market weighted portfolio of a fixed group of companies.
However, unlike plain vanilla, unscreened index mutual funds which seek to
invest in the average company within each industry group, we have used our
unique screening process to identify what we believe are the best companies
within our target industries.
With this approach we avoid the risk of incorrect market timing and poor
stock picking and therefore seek to gain the benefit of full returns available
in the equity market. The Citizens Index Portfolio can form a core holding for
long term investors.
To carry out the strategy on a day to day basis, we buy and hold all of the
300 companies on the index list. An important technical measure of our
performance is how well our portfolio "tracks" with the performance of the
underlying index. Obviously the expenses of operation will always reduce the
2 Citizens Trust
<PAGE>
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M A N A G E R S ' C O M M E N T S
- --------------------------------------------------------------------------------
hypothetical performance of the portfolio. Another factor is cash. We always
have a small amount of cash on hand to pay expenses and handle shareholder
redemptions. In rising markets this cash reduces performance, although it does
help in falling markets.
The chart at right depicts performance over the last six months and shows
the impact that fees, transaction costs and cash have had on the performance of
the Citizens Index Portfolio. Both the Citizens Index and the S&P 500 are
unmanaged indices and direct investments cannot be made into them.
- --------------------------------------------------------------------------------
[Line Chart]
Index Tracking Comparison for 1995
Citizens Index Portfolio vs. Citizens Index vs. S&P 500
- -------------------------------------------------------
Citizens Citizens S&P
Index Portfolio Index 500
JULY 3.84 4.00 3.33
AUGUST 0.79 1.06 0.27
SEPTEMBER 3.58 3.71 4.19
OCTOBER 0.93 1.08 -0.35
NOVEMBER 3.01 3.17 4.4
DECEMBER 0.61 0.68 1.85
- --------------------------------------------------------------------------------
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be more or
less than the original cost. All returns shown above are overall returns for the
one month periods shown.
- --------------------------------------------------------------------------------
Citizens Income
Portfolio
MANAGER:
Gail Seneca
ASSETS:
$32 Million
Objective: Current income
Results: Total return for the twelve months of 17.38%
The strategy: Readers of the Citizens Income Portfolio's prospectus know that we
emphasize that bond prices "vary inversely with interest rates." This means that
when yields go down, value of the bonds go up. In 1995 we saw a significant
reduction in long term interest rates which meant that, in general, bond
investors did well in 1995.
While these benefits also accrue to us in the Citizens Income Portfolio, we
do not reach for long maturities to achieve higher than average return. Instead,
we use our credit research to identify companies whose financial strength is
improving so we have the potential to gain higher than average yields, without
taking on too much interest rate or credit risk. This research enabled us to
find attractive companies as well as to avoid the high profile disasters in
bonds last year, such as the bankruptcies and near bankruptcies in many
retailers.
The Income Portfolio further benefited from mortgage-backed securities and
various "structured" bond positions in which investors are securitized by
collateral such as lease obligations or real property. Analysis of such bonds
requires careful review of bond debentures, as well as credit research.
1996 promises to be another good year for bonds. The fundamental trends in
inflation, economic growth and fiscal policy suggest that rates could fall
further. We expect the Federal Reserve to cut short term rates at least once in
1996. These reductions are likely if economic momentum continues to weaken. The
fund has locked in a high current income return, which will continue even if the
general level of interest rates declines this year.
December 31, 1995 Semi-Annual Report 3
<PAGE>
Working Assets Money
Market Portfolio
MANAGER: ASSETS:
Danita Wright $96 Million
Objective: Current income with minimal credit risk
Results: Total return for the twelve months of 5.01%
The strategy: Money market yields fell over the last twelve months, consistent
with the general decline in interest rates. By year end, the Money Market
Portfolio yield was 4.7%, exceeding the current 3% level of inflation by 1.7%.
Historically, money fund yields barely match the inflation level, so investors
were well compensated in 1995 through "real" or inflation adjusted return.
We expect to see money fund rates decline further in 1996, and to trend
downward toward the general inflation rate. The pace of this decline will depend
on the Federal Reserve, which, under Chairman Greenspan, has pursued a
gradualist policy of small moves. Money fund investors should expect the decline
in yields to occur slowly, but surely, if inflation remains quiescent.
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Muir California
Tax-Free Income
Portfolio
MANAGER: ASSETS:
Gail Seneca $15 Million
Objective: Tax-free current income for California residents
Results: Total return for the twelve months of 12.76%
The Strategy: In 1995, municipal bond yields declined sharply as did taxable
bond yields. For investors in the portfolio, this translated into price
appreciation as well as the benefits of tax-free current income. This high level
of total return was achieved with very high AA credit quality, no derivatives
and with an average duration of less than five years. However, a conservative
posture such as we maintain in the Muir California Tax-Free Income Portfolio
means that we will not have as high a total return.
The major news in the municipal markets in 1995 was the ongoing prospect of
federal tax legislation. In the most extreme of the current proposals -- a flat
tax -- municipal bond income would lose its tax-exempt status, and this has
placed a cloud over tax-free bond offerings.
Since we do not believe radical tax reform will occur, the excellent values
in the municipal bond market represent excellent entry points for high tax
bracket investors.
We continue to have a conservative maturity posture because the current
yield differential between intermediate and long-term bonds is not large, and
the market is not "paying us" to assume additional risk.
Our current distribution rate of 4.09% in the fund translates into a very
attractive tax equivalent return of over 7.5%.
- ------------------------------------------------------------------------------
Citizens Emerging
Growth
Portfolio
MANAGER:
Rick Little
ASSETS:
$18 Million
Objective: Aggressive growth
Results: Total return for the twelve months of 40.73%
The strategy: The Emerging Growth Portfolio focuses on companies which are
demonstrating strong earnings momentum and which have the potential to produce
positive earnings surprises relative to investor expectations. Our investment
discipline requires that our portfolio companies consistently meet these
criteria. Disappointments in earnings or a plateauing in growth are signals that
the stock should be sold. Thus, the portfolio is managed actively in the search
for companies with superior and sustainable earnings momentum.
In 1995, we benefited from the excellent earnings growth of technology and
health care companies.
4 Citizens Trust
<PAGE>
Innovations in managed health care, technology for hospitals and other health
care providers, and the boom in spending on personal computers were themes in
which the portfolio successfully invested. Our focus was innovative, value added
products and technology, rather than commodity products such as semiconductor
chips.
Among the major contributors to the portfolio's robust return in 1995 was
Phycor, a physician practice management company. Phycor stock price surged 135%
from purchase in May 1995, as the company successfully acquired and integrated
physician practice groups into a single business organization, to effectively
deliver quality medical care within the "managed care" environment. As the
company gained greater recognition among investors, its share price appreciated
dramatically and approached our valuation target and we gradually sold it.
Corporate Express, an office supply company, was another major contributor
to the portfolio's return. Corporate Express grew revenues and earnings in 1995
through acquisitions within the fragmented office supply market and through
extremely efficient operations. In just four years, Corporate Express has become
a dominant player in the office supply market, and has distinguished itself in
the breadth of its product line and ability to deliver products quickly to its
customers.
Though the portfolio's overall result was extremely strong, some positions
hurt our return. Softkey, a maker of low price computer software, declined
markedly after it announced intentions to acquire two other software companies.
Though Softkey's fundamental business trends were excellent, investors feared
that the company would overpay for its acquisitions and dilute future earnings.
We remain convinced that Softkey's fundamental product meets an important need
for PC users, and we continue to hold the stock. International Imaging, a
manufacturer of color thermal transfer ribbons for the bar code industry, also
detracted from return. While we were optimistic about the company's growth
prospects, a difficult ramp up in capacity expansion and new product technology
cost the company more than we anticipated and eroded earnings momentum. We sold
the company and will reestablish a position only after we are convinced that its
manufacturing transition is complete.
Citizens Global Equity
Portfolio
Manager:
Tom Prappas
Assets:
$11 Million
Objective: Capital appreciation
Results: Total return for the twelve months of 13.74%
Our charter requires that the Citizens Global Equity Portfolio invest in a
minimum of three countries, one of which can be the United States. However, in
practice we will usually invest in a significantly greater number of countries
in search of appreciation and diversification. In 1995 the United States equity
markets offered the best returns among all the markets in the world.
In the first quarter the Mexican currency crisis produced plunging
worldwide markets and a sharply depreciating dollar roiled the markets in Europe
and Japan.
As the year progressed, however, developments in the United States began to
support global equity markets, not only through a sharp rally led by technology
stocks, but also through the dollar's rebound and the first easing of Federal
Reserve policy in over two years.
Japan's rally in the second half of the year offset the earlier losses in
the year, but when adjustment is made for the currency movements the net dollar
gains just about wipe out the modest advance of the local index (0.02% vs
3.41%).
The emerging markets of Asia and Latin America were not able to fully
overcome either their early year struggles or the bouts of uncertainty to which
they were prone in 1995.
Although its performance was volatile, Europe returned higher local equity
market gains (12.3%) and higher dollar returns (18.7%) than Japan.
In this volatile climate we used an active style to target attractive
markets. Our strong overweighting of the European markets and reduced weighting
in the Latin American and Asian emerging markets allowed us to bring in an
overall positive return without due risk.
December 31, 1995 Semi-Annual Report 5
<PAGE>
Working Assets Money Market Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Commercial Paper: 73.33%
$ 5,500,000 American Express Co. 5.68%-5.76% 1/6/95-2/12/96 $ 5,478,520 Diversified financial
services
4,200,000 Bank of New York 5.87% 1/5/96 4,197,261 Regional banking
300,000 Bankers Trust New York 5.61% 3/13/96 2,966,340 Wholesale banking
4,500,000 Barnett Banks, Inc. 5.80% 1/16/96 4,489,125 Regional banking
3,100,000 BellSouth Corp. 5.77% 1/12/96 3,094,535 Telephone/Regional Bell
Company
2,700,000 Cooperative Assoc. of Tractor Dealers 5.62%-5.74% 1/17/96-1/18/96 2,692,915 Tractor dealer
4,700,000 Countrywide Funding Corp. 5.84% 1/4/96 4,697,730 Commercial finance
2,000,000 CPC International 5.85% 1/8/96 1,997,725 Food processing
4,000,000 Dean Witter Discover Co. 5.72%-5.77% 1/8/96-1/23/96 3,993,138 Consumer finance
4,450,000 Fleetwood Corp. 5.76%-5.77% 1/4/96-1/23/96 4,435,096 Commercial finance
4,400,000 Harley Davidson 5.73% 2/15/96 4,368,485 Motorcycles
4,000,000 HJ Heinz 5.73% 1/18/96 3,989,177 Packaged food
2,800,000 Home Depot 5.70% 1/5/96 2,798,227 Retail store
4,300,000 Idaho Power 5.82% 1/11/96 4,293,048 Energy
1,725,000 John Hancock 5.73% 1/11/96 1,722,254 Insurance
4,800,000 Lehman Holdings 5.77%-5.80% 1/23/96-1/25/96 4,782,053 Commercial finance
700,000 New Jersey Natural Gas 5.95% 1/3/96 699,769 Natural gas
900,000 Nordstrom 5.77% 1/16/96 897,836 Department stores
4,000,000 PNC Funding 5.75% 2/5/96 3,977,639 Regional banking
3,000,000 U.S. Central Credit Union 5.68% 1/19/96 2,991,480 Credit union
2,000,000 Whirlpool Corp. 5.72% 2/6/96 1,988,560 Consumer finance
--------------
Total Commercial Paper 70,550,913
--------------
(Cost $ 70,550,913)
Certificates of Deposit: 0.52%
100,000 Boston Bank of Commerce 5.00% 10/18/96 100,000 Community bank
100,000 City National Bank of New Jersey 4.74% 10/18/96 100,000 Community bank
100,000 Community Capital Bank 5.34% 10/18/96 100,000 Community bank
100,000 Independence Bank of Chicago 5.00% 12/26/96 100,000 Community bank
100,000 Self Help Credit Union 5.60% 7/24/96 100,014 Community bank
--------------
Total Certificates of Deposit 500,014
--------------
(Cost $ 500,014)
U.S. Government Agencies: 19.95%
4,600,000 Federal Home Loan Bank 5.45% 1/2/96 4,599,304 Mortgage lending
14,599,000 Student Loan Marketing Assn. (b) 5.20% - 5.75% 1/16/96 - 11/20/97 14,598,368 Student lending
--------------
Total U.S. Government Agencies 19,197,672
--------------
(Cost $ 19,197,672)
Farmers Home Administration (b)(c): 0.21%
207,591 Variable Rate Notes (Cost $ 204,989) 6.25% 8/1/96-12/1/96 204,989 Farm lending
--------------
Small Business Administration (b)(d): 5.52%
5,225,670 Variable Rate Notes (Cost $ 5,307,477 )5.07% - 9.73% 1/1/96 5,307,477 Small business lending
--------------
</TABLE>
6 See accompanying notes to financial statements.
<PAGE>
Working Assets Money Market Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest-Bearing Deposit Account: 0.37%
$ 354,510 Norwest Interest-Bearing Demand Deposit Account $ 354,510
(Cost $ 354,510) -----------
Total Investments 99.90% 96,115,575
(Cost $ 96,115,575) (e)
Other assets, less liabilities 0.10% 96,211
------ -----------
NET ASSETS 100.00% $96,211,786
====== ===========
</TABLE>
Key: (a) Investments are based upon amortized cost method. (b) Variable
interest rates are subject to change every 7 to 90 days. (c) Includes a total of
2 notes. (d) Includes a total of 13 notes. (e) Cost for federal income tax
purposes is the same.
Citizens Income Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Rate Maturity Date Value Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Corporate Bonds 70.61%
Advertising & Publishing 4.96%
$1,400,000 Time Warner, Inc. 9.125% 1/15/13 $1,585,500 Media/Production
----------
Amusements 6.50%
1,000,000 J.Q. Hammons Hotel 8.875% 2/15/04 982,500 Hotels
1,000,000 Royal Caribbean 11.375% 5/15/02 1,092,500 Cruise / Leisure
--------------
2,075,000
--------------
Broadcasting & Communications 5.70%
750,000 Act III Broadcasting 10.250% 12/15/05 765,000 Broadcasting
1,000,000 Comcast Corp 9.38% 5/15/05 1,055,000 Cable networks
--------------
1,820,000
--------------
Computer, Office & Business Equipment 3.17%
1,000,000 Corporate Express, Inc. 9.13% 3/15/04 1,012,500 Office products
------------
Financial Services & Insurance 22.78%
775,000 Countrywide Funding Corporation 6.875%-8.25% 7/15/02-9/15/05 822,625 Mortgage lending
1,597,268 DLJ Mortgage Acceptance Corp. 6.62%-6.875% 11/1/05-5/25/09 1,600,188 Mortgage lending
1,500,000 First Union Corporation 6.550% 10/15/35 1,539,375 Regional banking
582,533 Green Tree Financial Corp. 5.600% 4/15/19 582,387 Consumer lending
1,500,000 Lehman Brothers, Inc. 5.04%-8.05% 12/15/96-1/15/19 1,568,959 Financial services
50,000 MBIA Inc. 9.00% 2/15/01 56,562 Municipal bond insurance
100,000 NBD Bancorp Inc. 7.25% 8/15/04 106,625 Regional banking
1,000,000 Property Trust of America 6.875% 2/15/08 1,000,000 Regional banking
--------------
7,276,721
--------------
</TABLE>
See accompanying notes to financial statements. 7
<PAGE>
Citizens Income Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Rate Maturity Date Value Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Healthcare 11.41%
$ 800,000 American Medical International 0.00% 8/12/97 $ 714,720 Hospital management
1,000,000 Columbia/HCA Healthcare 7.69% 6/15/25 1,092,500 Hospital management
850,000 Community Healthcare Systems 10.25% 11/30/03 910,562 Hospital management
50,000 Kaiser Foundation Hospitals 9.00% 11/01/01 57,813 Hospitals
800,000 Quorum Health Group 8.75%-11.875% 12/15/02-11/01/05 870,000 Hospital management
--------------
3,645,595
--------------
Industrial 2.39%
750,000 MVE, Inc. 12.50% 2/15/02 765,000 Insulated containers
--------------
Real Estate 5.71%
500,000 Merry Land & Investment, Inc. 6.875% 11/01/03 1,021,250 Real estate
800,000 Weingarten Realty 6.620% 12/11/07 804,000 Real estate
--------------
1,825,250
--------------
Retailers 7.99%
750,000 Hook Super X, Inc. 10.125% 6/1/02 825,000 Drugstores
1,000,000 Kroger Corp. 9.05% 12/15/04 1,195,000 Supermarkets
500,000 Vons Companies, Inc. 9.625% 4/01/02 531,250 Supermarkets
--------------
2,551,250
--------------
Total Corporate Bonds 22,556,816
--------------
(Cost $ 21,556,789)
Long Term U.S. Government Agencies 25.65%
1,725,000 Federal Home Loan Mortgage Corp. 6.80% - 8.75% 1/29/03-4/15/18 1,765,842 Mortgage lending
6,936,592 Federal National Mortgage Assn. 5.61% - 8.00% 7/25/06-1/25/24 4,358,097 Mortgage lending
2,014,711 Government National Mortgage Assn. 6.00% - 9.50% 4/15/07-6/15/23 2,072,505 Mortgage lending
--------------
Total Long Term U.S. Government Agencies 8,196,444
--------------
(Cost $ 7,983,635)
Short Term Investments 0.93%
Interest-Bearing Deposit Account
297,032 Norwest Interest-Bearing Demand Deposit Account 297,032
--------------
(Cost $ 297,032)
Total Investments 97.19% 31,050,292
(Cost $ 29,837,456)(a)
Other assets, less liabilities 2.81% 896,585
---------- --------------
NET ASSETS 100.00% $31,946,877
========== ==============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same.
8 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equities 98.71%
Apparel & Textiles 0.67%
1,300 Brown Group Inc $ 18,525 Footwear
1,800 Gymboree Corp (b) 37,125 Children's Clothing Retailer
2,300 Hartmarx Corp (b) 10,063 Men's and Women's Clothing
5,900 Liz Claiborne 163,725 Women's Clothing
100 Oshkosh B'gosh 1,750 Adult and Children's Clothing
5,900 Reebok International 166,675 Footwear
1,300 Springs Industries Inc 53,787 Fabric
3,700 Stride Rite Corp 27,750 Footwear
5,000 VF Corp 263,750 Clothing
3,200 Warnaco Group Inc 80,000 Clothing
-------
823,150
-------
Banks 8.66%
8,200 Bank of Boston Corp 379,250 Regional Banking
6,000 Bankers Trust New York 399,000 Wholesale Banking
7,400 Barnett Banks Inc. 436,600 Regional Banking
9,800 Boatmens Bancshares 400,575 Regional Banking
10,500 Corestates Financial Corp 397,688 Regional Banking
23,884 First Chicago Corp 943,418 Regional Banking
5,800 First Fidelity Bancorp 437,175 Regional Banking
12,800 First Union Corp 712,000 Regional Banking
18,000 Keycorp 652,500 Regional Banking
10,600 Mellon Bank Corp 569,750 Regional Banking
10,600 National City Corp 351,125 Regional Banking
20,100 Nationsbank Corp 1,399,462 Regional Banking
26,100 Norwest Corp 861,300 Regional Banking
16,700 PNC Financial Corp 538,575 Regional Banking
8,400 Suntrust Banks Inc 575,400 Regional Banking
7,500 U.S. Bancorp 252,188 Regional Banking
13,100 Wachovia Corp 599,325 Regional Banking
3,600 Wells Fargo & Co 777,600 Regional Banking
----------
10,682,931
----------
Computer, Hardware &
Business Equipment 6.14%
7,000 Amdahl Corp (b) 59,500 Computers
9,300 Apple Computer Inc 296,438 Computers
20,000 Cisco Systems Inc. (b) 1,492,500 Computer Networks
19,100 Compaq Computer Corp (b) 916,800 Computers
9,800 Dell Computer Corp (b) 339,325 Computers
11,200 Digital Equipment Corp (b) 718,200 Computers
5,500 Gateway 2000 Inc. (b) 134,750 Computers
14,800 Micron Technology Inc 586,450 Computers
27,500 Novell Inc (b) 391,875 Computer Networks
11,100 Pitney-Bowes Inc 521,700 Office Equipment
11,000 Silicon Graphics Inc (b) 302,500 Visual Computing Systems
14,600 Sun Microsystems Inc (b) 666,125 Computers
8,800 Tandem Computers Inc (b) 93,500 Computers
7,700 Xerox Corp 1,054,900 Office Equipment
---------
7,574,563
---------
</TABLE>
See accompanying notes to financial statements 9
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Construction and Housing 0.80%
1,000 Apogee Enterprises $ 17,000 Window Systems
2,800 Armstrong World 173,600 Interior Furnishings
2,100 Centex Corp 72,975 Homebuilder
12,200 Masco Corp 382,775 Interior Furnishings
2,100 Pulte Corp 70,612 Home Construction
3,500 Rouse Company 71,312 Property Management
3,400 Stanley Works 175,100 Hardware
1,300 TJ International Inc. 24,050 Composite Wood
---------
987,424
---------
Consumer Durables 0.48%
1,155 Harman International Industries 46,344 Audio and Video Products
8,100 Maytag Co 164,025 Appliances
2,800 Toro Co 92,050 Lawn Maintenance
5,500 Whirlpool Corp 292,875 Appliances
---------
595,294
---------
Electronics 7.52%
4,200 ADC Telecommunications (b) 153,300 Telecommunications Networks
8,300 Advanced Micro Devices (b) 136,950 Semiconductors
3,200 Altera Corp (b) 159,200 Semiconductors
7,000 American Power Conversion (b) 66,500 Electronic Connection Devices
16,100 AMP Inc 617,838 Electronic Connection Devices
1,600 Antec Corp (b) 28,800 Optical Transmission Equipment
3,000 Avnet Inc 134,250 Electric Components
1,800 Belden Inc 46,350 Electronic Connection Devices
10,100 General Instrument Corp (b) 236,088 Cable Supplier
3,700 Global Village Communication (b) 71,688 Modems
37,900 Hewlett Packard Co 3,174,125 Electronic Equipment
61,000 Intel Corp 3,461,750 Microprocessors
7,475 Molex Inc 237,331 Electronic Connection Devices
3,700 National Service Industries 119,788 Lighting Equipment
3,100 Perkin-Elmer Corp 117,025 Analytical Instruments
2,200 Tektronix Inc 108,075 Electronic Equipment
1,500 Thomas & Betts Corp. 110,625 Electronic/Electrical Connectors
2,800 U S Robotics Corp (b) 245,700 Communications Equipment
2,700 VLSI Technology (b) 48,937 Semiconductors
---------
9,274,320
---------
Energy & Utilities 2.19%
3,700 California Energy Co (b) 72,150 Geothermal Power
7,100 Consolidated Natural Gas 322,163 Natural Gas
71,429 Energia Global (b)(c) 250,000 Energy prod. & conservation
18,400 Enron Corp 701,500 Natural Gas
2,700 Kenetech Corp (b) 4,387 Alternative Energy
3,100 Landmark Graphics Co (b) 72,075 Geoscience Software
2,700 Nicor Inc 74,250 Natural Gas
9,300 Noram Energy Corp 82,538 Natural Gas
2,000 Oneok Inc 45,750 Natural Gas
6,500 Pacific Enterprises 183,625 Natural Gas
2,600 Peoples Energy Corp 82,550 Natural Gas
</TABLE>
10 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Energy & Utilities (continued)
6,600 Sonat Inc $235,125 Natural Gas
120,000 Vulcan Power Co (b)(c) 25,000 Geothermal energy
4,000 Western Atlas Inc (b) 202,000 Oil Field Services
7,600 Williams Companies 333,450 Natural Gas
700 Yankee Energy Systems Inc 17,675 Natural Gas
---------
2,704,238
---------
Financial Services 5.97%
8,900 Ahmanson & Co 235,850 Savings and Loan
35,800 American Express Co 1,481,225 Diversified Financial Services
3,900 Beneficial Corp 181,838 Consumer Finance
12,200 Dean Witter Discover 573,400 Consumer Finance
4,500 Edwards (A.G.) Inc 107,437 Brokerage
13,000 Federal Home Ln Mortgage Corp 1,085,500 Mortgage Lending
20,200 Federal Natl Mtg Assn 2,507,325 Mortgage Lending
4,600 Golden West Financial 254,150 Savings and Loan
10,100 Great Western Financial 257,550 Savings and Loan
11,400 MBNA Corp 420,375 Credit Cards
13,000 Charles Schwab Corp 261,625 Discount Broker
---------
7,366,275
---------
Food & Agriculture 11.29%
4,200 Ben & Jerry's Homemade (b) 61,950 Ice cream
18,100 Campbell Soup Co 1,086,000 Food
100 Celestial Seasonings, Inc. (b) 1,875 Herbal Teas
93,400 Coca Cola Co 6,934,950 Beverages
10,700 CPC International 734,287 Food Processing
7,000 Dial Corp 207,375 Food Services
11,500 General Mills Inc 664,125 Packaged Food
26,400 H J Heinz Co 874,500 Packaged Food
5,700 Hershey Foods Corp 370,500 Packaged Food
2,200 J M Smucker Co 48,400 Packaged Food
16,200 Kellogg Co 1,251,450 Packaged Food
150 Odwalla Inc (b) 2,475 Fresh juices
9,600 Quaker Oats Co 331,200 Food and Beverage
700 Ringer Corp (b) 1,137 Organic Pesticides
5,400 Supervalu Inc 170,100 Supermarkets/Food Dist.
13,100 Sysco Corp 425,750 Food Distributor
1,600 Tootsie Roll Inds 63,400 Packaged Food
8,000 Whitman Corp 186,000 Food and Beverage
500 Wholesome & Hearty Foods (b) 3,812 Vegetarian Foods
5,000 Worthington Foods Inc 70,000 Vegetarian Food
8,400 Wrigley Co 441,000 Chewing Gum
---------
13,930,286
---------
Health & Personal Care 10.15%
6,200 Alza Corp (b) 153,450 Drug Delivery Systems
1,400 American Medical Response (b) 45,500 Ambulance Service
5,400 Avon Products Inc 407,025 Personal Care Products
2,900 Bergen Brunswig Corp 72,138 Pharmaceutical Distribution
8,500 Biomet Inc (b) 151,938 Medical Equipment and Supplies
1,400 Church & Dwight Inc 25,900 Baking Soda Products
</TABLE>
See accompanying notes to financial statements. 11
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Health & Personal Care (continued)
32,900 Columbia/HCA Healthcare $ 1,669,675 Hospital Management
3,300 Community Psychiatric
Centers (b) 40,425 Psychiatric Hospitals
2,400 Idexx Laboratories Corp (b) 112,800 Animal Health
2,200 Invacare Corp 55,550 Medical Equipment and Supplies
4,700 Manor Care Inc 164,500 Healthcare Facilities
16,800 Medtronic Inc 938,700 Pacemakers
91,600 Merck & Co Inc 6,022,700 Pharmaceuticals
100 Natures Sunshine Products 2,525 Herbs and Vitamins
2,300 Owens & Minor Inc 29,325 Medical Supplies Distributor
2,900 Physician Corp of America (b) 49,300 HMO
1,300 R.P. Scherer Corp (b) 63,862 Drug Delivery Systems
27,300 Schering-Plough Corp 1,494,675 Pharmaceuticals
1,800 Sofamor/Danek Group (b) 51,075 Spinal Implants
5,250 St Jude Medical Inc 225,750 Medical Equipment and Supplies
2,700 Sun Healthcare Group (b) 36,450 Long Term Healthcare
1,300 Sunrise Medical Inc (b) 24,050 Medical Equipment and Supplies
1,000 Target Therapeutics (b) 42,750 Medical Equipment and Supplies
11,700 U.S. Healthcare 544,050 HMO
1,500 Ventritex Inc (b) 26,063 Biomedical Devices
2,550 Vivra Inc (b) 64,069 Home Healthcare
---------
12,514,245
---------
Industrial Products 2.67%
8,200 Air Products & Chemicals 432,550 Industrial Gases
2,100 Betz Laboratories Inc 86,100 Water Treatment
30,800 Minnesota Mining &
Manufacturing 2,040,500 Multi-Industry
5,000 Nalco Chemical Co 150,625 Water Treatment
10,400 Praxair Inc 349,700 Industrial Gases
3,700 Sigma Aldrich Corp 183,150 Specialty Chemicals
2,500 Wellman Inc 56,875 Recycled Plastics
---------
3,299,500
---------
Insurance 3.08%
15,500 American General Corp 540,562 Multi-Line Insurance
6,300 Chubb Corp 609,525 Property and Casualty Insurance
5,900 General Re Inc 914,500 Property and Casualty Insurance
5,400 Jefferson-Pilot Corp 251,100 Life Insurance
7,400 Providian Corp 301,550 Life Insurance
9,200 Safeco Corp 317,400 Property and Casualty Insurance
6,500 St Paul Cos 361,562 Property and Casualty Insurance
5,700 Unum Corp 313,500 Multi-Line Insurance
7,000 USF&G Corp 118,125 Property and Casualty Insurance
2,550 USLIFE Corp 76,181 Life Insurance
---------
3,804,005
---------
Media 4.96%
11,400 Capital Cities ABC 1,406,475 Television Network
17,500 Comcast Corp 318,281 Cable Networks
7,500 Dow Jones & Co 299,063 Publishing/Newspaper
2,700 King World Productions (b) 104,963 Media/Production
3,700 Knight Ridder Inc 231,250 Publishing/Newspaper
</TABLE>
12 See accompanying notes to financial statements
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Media (continued)
3,800 McGraw-Hill Inc $331,075 Publishing
2,000 Meredith Corp 83,750 Publishing/Magazines
7,500 New York Times Co 222,188 Publishing/Newspapers
1,200 Scholastic Corp (b) 93,300 Publishing/Educational
28,600 Time Warner Inc 1,083,225 Media/Production
8,500 Times Mirror Co 287,938 Publishing/Newspapers
14,900 Turner Broadcast Sys-Cl B 387,400 Television Network
26,700 Viacom Inc-Cl B (b) 1,264,912 Media
---------
6,113,820
---------
Motor Vehicles 0.68%
3,000 Cummins Engine 111,000 Diesel Engines
800 Envirotest Systems Corp (b) 2,100 Vehicle Emissions Testing
2,700 Federal-Mogul Corp 52,987 Engine/Transmission Products
3,500 Fleetwood Enterprises 90,125 Mobile Homes
9,400 Genuine Parts Inc 385,400 Auto Parts Distribution
5,800 Harley Davidson Inc 166,750 Motorcycles
900 SPX Corp 14,288 Auto Service Tools
1,200 Standard Products Co 21,150 Auto Parts
---------
843,800
---------
Non-Ferrous Metals 0.22%
900 Castech Aluminum Group (b) 12,150 Aluminum
10,950 Engelhard Corp 238,163 Engineered materials
800 IMCO Recycling Inc 19,600 Aluminum Recycling
---------
269,913
---------
Optical & Photo 0.25%
2,200 C-Cube Microsystems (b) 137,500 Digital Imaging Circuits
3,500 Polaroid Corp 165,812 Photography Products
---------
303,312
---------
Paper & Forest Products 1.40%
8,400 Alco Standard Corp 383,250 Paper Distribution
1,900 Caraustar Industries Inc 38,000 Recycled Paperboard
3,300 Consolidated Papers Inc 185,213 Printing paper
4,800 Fort Howard Corp (b) 108,000 Tissue Paper Products
8,970 Kimberly-Clark 742,268 Paper products
3,000 Sealed Air Corp (b) 84,375 Packaging
6,910 Sonoco Products Co 181,388 Recycled Paper Products
---------
1,722,494
---------
Producer Goods 3.17%
4,000 Avery-Dennison Corp 200,500 Office Products
2,500 Cincinnati Milacron Inc 65,625 Machine Tools
19,800 Deere & Co 697,950 Agricultural Equipment
1,400 Duriron Inc 32,725 Pumps and Valves
16,500 Emerson Electric Co 1,348,875 Commercial/Industrial Components
2,400 Fedders Corp 13,800 Air Conditioners
800 ICC Technologies Inc. (b) 8,800 Air Conditioners
1,400 Idex Corp 57,400 Pumps and Valves
</TABLE>
See accompanying notes to financial statements. 13
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Producer Goods (continued)
8,700 Illinois Tool Works $513,300 Metal Components and Assemblies
1,000 Ionics Inc (b) 43,500 Water Purification
2,600 Keystone International Inc 52,000 Pumps and Valves
1,800 Miller (Herman) Inc 54,000 Office Furniture
3,400 Millipore Corp 139,825 Fluid Analysis Products
1,300 Nordson Corp 73,125 Adhesive Application Systems
3,300 Raychem Corp 187,687 Electronic Components
300 Recovery Engineering Inc (b) 4,575 Water Purification
3,200 Snap-On Tools Corp 144,800 Tools
1,600 Tecumseh Products 82,800 Compressors
200 Tennant Co 4,775 Floor Maintenance
2,300 Timken Co 87,975 Steel Bearings
3,000 Trinity Industries Inc 94,500 Metal Components
---------
3,908,537
---------
Recreation & Entertainment 1.43%
5,400 American Greetings Corp. 149,175 Greeting Cards
600 Bell Sports Corp (b) 4,800 Bicycle Helmets
5,200 Callaway Golf Company 117,650 Golf Clubs
2,000 Coleman Inc (b) 70,250 Camping Products
400 Fresh Choice Inc (b) 2,500 Restaurants
2,500 Handleman Company 14,375 Entertainment Distribution
5,500 Harcourt General Inc 230,312 Publishing/Entertainment
6,600 Hasbro Inc 204,600 Toys
1,000 Huffy Corp 10,125 Bicycles
3,400 Jostens Inc 82,450 School Products
1,800 Luby's Cafeterias Inc 40,050 Restaurants
17,100 Mattel Inc 525,825 Toys
12,300 Rubbermaid Inc 313,650 Household Products
---------
1,765,762
---------
Retail 6.11%
2,200 Barnes & Nobles Inc (b) 63,800 Bookstores
5,700 Bruno's Inc (b) 60,563 Supermarkets
11,800 Charming Shoppes Inc 33,925 Apparel Retailer
7,300 Circuit City Stores 201,662 Electronics Retailer
11,100 Gap Inc 466,200 Apparel Retailer
4,400 Giant Food Inc 138,600 Supermarkets
2,900 Great Atlantic & Pacific Tea 66,700 Supermarkets
3,100 Hannaford Brothers Co 76,338 Supermarkets
8,900 Kroger Corp (b) 333,750 Supermarkets
26,100 Limited Inc 453,488 Apparel Retailer
1,500 Longs Drug Stores 71,812 Drug Stores
12,000 Lowe's Companies Inc 402,000 Retail/Hardware
18,100 May Department Stores 764,725 Department Stores
8,100 Melville Corp 249,075 Drug Stores
6,200 Nordstrom Inc 251,100 Department Stores
17,000 J.C. Penney Co 809,625 Department Stores
14,200 Price/Costco Inc (b) 216,550 Wholesale Stores
6,400 Rite Aid Corp 219,200 Drug Stores
28,700 Sears Roebuck & Co 1,119,300 Department Stores
</TABLE>
14 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Retail (continued)
5,600 Tandy Corp $ 232,400 Electronics Retailer
5,300 TJX Companies Inc 100,037 Apparel Retailer
21,200 Toys R Us (b) 461,100 Toy Stores
18,200 Walgreen Co 543,725 Drug Stores
5,400 Whole Foods Market Inc (b) 74,925 Natural Food Supermarket
9,700 Woolworth Corp (b) 126,100 General/Specialty Retailer
---------
7,536,700
---------
Software & Data Processing 7.15%
5,300 Adobe Systems Inc 328,600 Desktop Publishing Systems
5,000 America Online Inc (b) 187,500 On-Line Computer Services
3,500 Autodesk Inc 119,875 Design Automation Software
10,500 Automatic Data Processing 779,625 Data Processing
8,000 Block H & R Inc 324,000 Information processing
1,500 Broderbund Software (b) 91,125 Educational and Business Software
17,550 Computer Associates
International 998,156 Business Software
2,600 Davidson & Associates Inc (b) 57,200 Educational Software
6,200 Deluxe Check Corp. 179,800 Data Processing
1,100 Dialogic Corp (b) 42,350 Call Processing
13,000 Dun & Bradstreet Corp 802,900 Information Services
2,300 Harland John H Company 48,012 Check Printing
500 Learning Company (b) 33,750 Educational Software
43,100 Microsoft Corp (b) 3,782,025 Computer Software
7,500 Moore Corp Limited 139,688 Business Forms
1,600 Network General Corp (b) 53,400 Business Software
4,300 Parametric Technology (b) 285,950 Design Software
3,900 Qualcomm Inc (b) 167,700 Wireless Communication Software
1,700 Shared Medical Systems Corp 92,437 Data Processing
1,800 Stratus Computer Inc (b) 62,325 On-Line Computer Services
5,100 Sybase Inc (b) 183,600 Business Software
2,800 Symantec Corp (b) 65,100 Programming Utilities
---------
8,825,118
---------
Steel 0.48%
3,300 Inland Steel Industries 82,912 Steel
6,400 Nucor Corp 365,600 Steel
6,700 Worthington Industries Inc 139,444 Steel
587,956
Telephone 12.25%
37,800 Airtouch Communications (b) 1,067,850 Cellular Telephone
13,800 Alltel Corp 407,100 Telecommunications
40,600 Ameritech Corp 2,395,400 Telephone Regional Bell Company
32,300 Bell Atlantic Corp 2,160,063 Telephone Regional Bell Company
73,400 Bellsouth Corp 3,192,900 Telephone Regional Bell Company
3,200 Mobile Telecommunications
Technical Corp (b) 68,400 Wireless Data Communications
32,800 Pacific Telesis Group 1,102,900 Telephone Regional Bell Company
44,900 SBC Communications Inc 2,581,750 Telephone Regional Bell Company
6,300 Tellabs Inc (b) 233,100 Voice and Data Networking Products
69,400 U.S. West Inc (b) 1,899,825 Telephone Regional Bell Company
---------
15,109,288
---------
</TABLE>
See accompanying notes to financial statements. 15
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Tires & Rubber 0.21%
2,000 Bandag Inc $108,250 Tire Retread Equipment
6,200 Cooper Tire & Rubber 152,675 Tires
---------
260,925
---------
Transportation 0.78%
4,200 Federal Express Corp (b) 310,275 Overnight Delivery
3,100 Illinois Central Corp 118,963 Regional Railroad
2,900 Roadway Services Inc 141,737 Trucking
5,800 Ryder System Inc 143,550 Truck Rental
10,900 Southwest Airlines 253,425 Regional Airline
---------
967,950
---------
Total Equities
(Cost $ 103,823,329) 121,771,806
-----------
Short-Term Investment 1.12%
Principal
Amount
Interest-Bearing Deposit Account
$1,383,950 Norwest Interest-Bearing
Demand Deposit Account 1,383,950
-----------
(Cost $ 1,383,950)
Total Investments 99.83% 123,155,756
-----------
(Cost $ 105,207,279)(a)
Other assets, less
liabilities 0.17% 212,049
---- ----------
NET ASSETS 100.00% $123,367,805
====== ============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Non-income
producing security. (c) Restricted security, see Note 4.
16 See accompanying notes to financial statements.
<PAGE>
Citizens Emerging Growth Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equities 90.29%
Broadcasting & Communications 19.23%
8,000 America Online Inc (b) $ 300,000 On-line service provider
6,840 Ascend Communications (b) 554,895 Network access products
4,000 Cascade Communications Corp. (b) 341,000 Network switches
13,700 Cincinnati Bell Inc. 476,075 Telephone company
8,500 Clear Channel Communication (b) 375,062 Broadcasting
10,600 Evergreen Media Corp. (b) 339,200 Radio stations
7,800 Glenayre Technologies (b) 485,550 Telecommunication equipment
5,500 HBO & Co 421,438 Information systems &
technology
5,000 IPC Informations Systems Inc (b) 82,500 Telecommunications systems
--------------
3,375,720
--------------
Computer, Office & Business Equipment 29.05%
11,250 Bay Networks Inc (b) 462,656 Networking products &
services
27,700 Borland International (b) 457,050 Computer software
7,100 Computer Associates International 403,812 Computer software
17,700 Corporate Express Inc. (b) 533,212 Office products supplier
25,000 Data Documents (b) 215,625 Business forms
7,600 Digital Equipment Corp. (b) 487,350 Computers
18,600 Novadigm, Inc. (b) 527,775 Software
7,500 Premenos Technology Corp (b) 197,813 Electronic commerce software
10,000 Softkey International (b) 231,250 Software
6,000 Stratacom (b) 441,000 Networking systems
11,500 Sun Microsystems (b) 524,688 Computers
4,000 U.S. Robotics Corp. (b) 351,000 Data communications products
12,050 Visioneer, Inc. (b) 268,113 Paper input systems
-----------
5,101,344
-----------
Construction & Housing 2.74%
16,540 U.S. Home Corp. (b) 481,727 Homebuilder
------------
Food & Consumer Products 2.06%
9,400 Department 56 Inc. (b) 360,725 Collectibles & gifts
------------
Financial Services & Insurance 10.71%
10,000 BHC Financial Inc. 180,000 Brokerage support services
20,000 Checkfree Corp. (b) 430,000 Electronic commerce services
11,000 Commerical Federal Corp (b) 415,250 Thrift
10,600 Mid Ocean Ltd. 393,525 Reinsurance
18,500 Transaction Network Services Inc (b) 462,500 Data services
-----------
1,881,275
-----------
</TABLE>
See accompanying notes to financial statements. 17
<PAGE>
Citizens Emerging Growth Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
(Note 1) Line of Trade
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Healthcare 24.73%
13,100 Amerisource Health Co. (b) $ 432,300 Drug wholesaler
40,000 Amisys Managed Care Systems (b) 760,000 Healthcare software
12,000 Healthsource Inc (b) 432,000 Healthcare management
25,000 National Surgery Centers (b) 575,000 Surgery centers
30,000 Physio-Control International (b) 536,250 Rejected/Sold from portfolio
8,450 Phycor Inc. (b) 427,253 Medical clinic management
4,000 Sofamor Danek Group (b) 113,500 Spinal implant devices
20,000 Vital Signs 527,500 Medical products
11,000 Watson Pharmaceuticals (b) 539,000 Pharmaceuticals
--------------
4,342,803
--------------
Industrial 1.77%
13,400 BMC Industries 311,550 Multi-industry
--------------
Total Equities 15,855,144
-------------
(Cost $ 13,516,011)
Short-Term Investments 9.29%
Principal
Amount
---------
Interest-Bearing Deposit Account
$631,561 Norwest Interest-Bearing Demand Deposit Account 631,561
--------------
Short-Term U.S. Government Agencies
1,000,000 Federal Home Loan Mortgage Corp,5.60%,1/3/96 999,689 Mortgage lending
--------------
Total Short-Term Investments 1,631,250
--------------
(Cost $ 1,630,628)
Total Investments 99.58% 17,486,394
(Cost $ 15,146,639) (a)
Other assets, less liabilities 0.42% 73,214
---------- --------------
NET ASSETS 100.00% $17,559,608
========== ==============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Non-income
producing security.
18 See accompanying notes to financial statements.
<PAGE>
Citizens Global Equity Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equities 76.08%
Belgium 2.25%
2,186 Barco N.V. (Barco Industries) $ 252,181 Technologies
--------------
Canada 3.25%
25,200 Royal Plastics 364,925 Building materials
--------------
France 8.25%
2,000 Legrand 309,179 Misc. manufacturing
2,770 SEB SA 337,019 Household goods
899 Sidel FP 280,525 Bottle molding machines
--------------
926,723
--------------
Germany 2.17%
445 Wella Aktiengesellscaft 244,065 Personal care products
--------------
Great Britain 5.07%
16,000 Reed International 243,944 Publishing
35,500 Reuters Holdings 325,192 Media
--------------
569,136
--------------
Finland 4.16%
4,400 Nokia AB OY 173,284 Telecommunications
7,133 Metra OY "B" Shares 294,059 Misc. manufacturing
--------------
467,343
--------------
Ireland 5.14%
45,000 Bank of Ireland 325,282 Banking
39,450 Independent Newspapers PLC 251,652 Media
--------------
576,934
--------------
Italy 3.31%
224,000 Telecom Italia 371,710 Telecommunications
--------------
Japan 8.89%
16,000 Canon Inc 290,058 Business equipment
5,000 Ito-Yokado Co 308,284 Retail stores
16,000 NEC Corporation 195,440 Electronic products
4,000 TDK Corporation 204,359 Electronic components
--------------
998,141
--------------
Netherlands 4.57%
6,927 Aegon NV 306,812 Insurance
1,500 Ver Ned Uitgevers 206,146 Media
--------------
512,958
--------------
Norway 3.88%
55,000 Tomra Systems 435,274 Recycling vending machines
--------------
</TABLE>
See accompanying notes to financial statements. 19
<PAGE>
Citizens Global Equity Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Philippines 4.62%
370,000 C&P Homes, Inc. $ 271,549 Home builder
22,300 Philippine National Bank 246,558 Commercial bank
--------------
518,107
--------------
Singapore 2.77%
25,000 Development Bank of Singapore, Ltd. 311,071 Development bank
--------------
Spain 3.18%
3,670 Banco Intercontinental 356,968 Commercial bank
--------------
Thailand 1.10%
7,000 Advanced Info Services 123,942 Cellular phone service
--------------
United States 13.47%
3,500 Columbia/HCA Healthcare Corp. 177,625 Hospital management
4,700 Enron Corp 179,187 Natural gas
3,600 Home Depot, Inc. 172,350 Home supply retailer
4,300 Intel Corp 244,025 Microprocessors
6,500 Merck & Co., Inc. 427,375 Pharmaceuticals
2,500 Suntrust Banks Inc. 171,250 Commercial bank
4,000 Worldcom Inc. 141,000 Telecommunications
--------------
1,512,812
--------------
Total Equities 8,542,290
--------------
(Cost $ 7,123,139)
Short-Term Investments 26.04%
Principal
Amount
- --------------
Commercial Paper 9.91%
$1,032 Austria Mikro Systems International 167,555 Telecommunications
1,200 Gas Natural SDG 186,950 Natural gas
4,500 Polygram 239,178 Entertainment
3,000 Newbridge Networks Corp. 124,125 Digital networking products
6,000 PT Indosat-ADR 219,000 Telecommunications
3,700 Telecomunicacoes Brasileiras 175,290 Telecommunications
--------------
1,112,098
--------------
Interest-Bearing Deposit Account 16.13%
1,811,154 Norwest Interest-Bearing Demand Deposit Account 1,811,154
--------------
Total Short-Term Investments 2,923,252
--------------
(Cost $ 2,907,225 )
Total Investments 102.12% 11,465,542
(Cost $ 10,030,364)(a)
Liabilities in excess of other assets (2.12%) (237,760)
---------- --------------
NET ASSETS 100.00% $11,227,782
========== ==============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same.
20 See accompanying notes to financial statements.
<PAGE>
Muir California Tax Free Income Portfolio
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Value Purpose Rating
Amount Date (Note 1) (b)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Municipal Securities 97.64%
Environmental 53.65%
$455,000 California State, General Obligation 5.10% 10/1/08 $ 456,162 General obligation A
540,000 East Bay, California, Regional Park District,
Series C, FGIC 5.50% 9/1/08 561,727 Parks AAA
440,000 Kings County, California,
Waste Management, AMT 6.00% 10/1/99 459,908 Resource recovery BBB
700,000 Los Angeles County, California,
Public Works Financing Revenue,
Regional Park & Open Space 6.00% 10/1/15 729,795 Parks AA
250,000 Los Angeles County, California,
Transportation Sales Tax Revenue,
Proposition C 6.75% 7/1/19 286,998 Public transit AAA
500,000 Los Angeles, California, Department
of Water,Power & Electricity, MBIA 5.10% 2/15/14 490,121 Electric AAA
500,000 Metropolitan Water District, Southern
California Refunding, Series A1 5.50% 3/1/10 515,576 Water AAA
300,000 Ontario, California, Redevelopment
Financing Authority, Project No. 1,MBIA 6.95% 8/1/11 356,659 Redevelopment AAA
515,000 Pasadena, California, Water Revenue 5.00% 7/1/18 490,281 Water AA
500,000 Rancho, California, Water District
Financing Authority, FGIC 6.50% 11/1/05 567,257 Water AAA
500,000 San Diego, Open Space Park Facilities 5.75% 1/1/07 533,647 Parks AAA
600,000 Santa Margarita, Dana Point Authority,
California Refunding, AMBAC 5.375% 7/1/14 602,788 Sewer AAA
500,001 Southern California Public Power, AMBAC-2 5.50% 7/1/12 506,645 Electric AAA
650,000 Southern California Rapid Transit Revenue,
AMBAC 5.75% 9/1/05 693,138 Public transit AAA
625,000 Vista, California, Community Development,
MBIA 6.00% 9/1/10 677,836 Redevelopment AAA
--------------
7,928,538
--------------
Affordable Housing: 15.61%
5,000 Barstow, California, Multi-family
Housing Revenue, Villa Vista 9.875% 12/1/96 5,058 Multi-family housing A
745,000 California Housing Finance
Agency Revenue 6.00% 2/1/05 785,486 Single-family housing AA
405,000 California Housing Finance
Agency Revenue 7.35% 2/1/00 427,081 Single-family housing AA
500,000 California Housing Finance
Agency Revenue, Home Mortgage Series E-1 5.40% 8/1/00 522,240 Single-family housing AA
10,000 Los Angeles, California,
Single Family Home Mortgage Revenue 6.75% 6/1/05 10,769 Single-family housing AAA
45,000 Riverside County, California,
Single Family Revenue 6.85% 10/1/16 47,249 Single-family housing AAA
500,000 Thousand Oaks, California,
Redevelopment Agency 5.50% 12/1/10 509,174
--------------
2,307,057
--------------
</TABLE>
See accompanying notes to financial statements. 21
<PAGE>
Muir California Tax Free Income Portfolio (continued)
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Value Purpose Rating
Amount Date (Note 1) (b)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Education and Health: 28.38%
$220,000 Arcadia, California,
Unified School District, FGIC 5.45% 7/1/08 $ 229,168 Schools AAA
500,000 Cupertino, California,
Unified School District, FGIC 5.40% 8/1/08 519,918 Schools AAA
675,000 John C. Fremont Hospital District 6.00% 6/1/04 712,832 Hospital A
250,000 Madera County, California,
Common Trust Funds,
Valley Childrens Hospital, MBIA 6.50% 3/15/10 278,199 Hospital AAA
275,000 Oak Park, California,
School District, MBIA 5.35% 5/1/09 278,120 Schools AAA
500,000 Oakland California Museum,
COP, AMBAC 6.25% 4/1/05 551,565 Museum AAA
500,000 University of California Revenue Bonds,
Multiple Purpose Projects, C-AMBAC 5.25% 9/1/16 495,604 University AAA
500,000 University of California Revenue Bonds,
Multiple Purpose Projects, MBIA 6.875% 9/1/16 578,178 University AAA
500,000 William S. Hart, Caledonia,
JT School Financing Authority, CAF,GTY 6.30% 9/1/09 550,164 Schools AAA
----------------
4,193,748
----------------
Total Municipal Securities (Cost $ 13,916,455) 14,429,343
----------------
Short Term Investments 0.01%
442 Goldman Sachs ITA California 442 Mutual fund
384 Provident California Money Market Fund 384 Mutual fund
----------------
Total Short Term Investments (Cost $ 826) 826
----------------
Total Investments 97.65% 14,430,169
(Cost $ 13,917,281) (a)
Other assets, less liabilities 2.35% 347,351
--------- ---------------
NET ASSETS 100.00% $14,777,520
========= ===============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Source of ratings
is Standard & Poors, Moody's, or Fitch Investor Services.
22 See accompanying notes to financial statements.
<PAGE>
E[bullet]fund
Statement of Investments - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Commercial Paper: 49.54%
$100,000 Allergan, Inc. 5.80% 1/17/96 $ 99,742 Pharmaceuticals
100,000 American General Finance Corp. 5.78% 1/8/96 99,888 Insurance
100,000 Bank of New York 5.87% 1/5/96 99,935 Regional banking
100,000 Barnett Banks Inc. 5.80% 1/16/96 99,758 Regional banking
100,000 BellSouth Corp. 5.77% 1/12/96 99,824 Telephone Company
100,000 Cooperative Assoc. of Tractor Dealers 5.80% 1/3/96 99,968 Tractor dealer
100,000 Harley Davidson Inc. 5.73% 2/15/96 99,284 Motorcycles
100,000 Hewlett Packard Co. 5.60% 2/20/96 99,222 Electronic equipment
100,000 Home Depot 5.70% 1/5/96 99,937 Retail stores
100,000 Idaho Power 5.82% 1/11/96 99,838 Energy
100,000 John Hancock 5.73% 1/11/96 99,841 Insurance
100,000 New Jersey Natural Gas 5.95% 1/3/96 99,967 Natural gas
100,000 Pacific Bell 5.65% 1/9/96 99,874 Telecommunications
100,000 Student Loan Corp. 5.75% 1/16/96 99,760 Student lending
------------
Total Commercial Paper 1,396,838
------------
(Cost $1,396,838 )
Certificates of Deposit: 3.55%
100,000 South Shore Bank (Cost $100,000) 5.35% 12/15/96 100,000 Community bank
------------
U.S. Government Agencies: 22.33%
160,000 Federal Home Loan Bank 5.45% 1/2/96 159,976 Mortgage lending
470,000 Federal Home Loan Mortgage Corp. 5.60% - 5.63% 1/3/96 - 1/8/96 469,642 Student lending
------------
Total U.S. Government Agencies 629,618
------------
(Cost $ 629,618)
Small Business Administration (b)(c): 22.30%
620,652 Variable Rate Notes (Cost $ 628,603)6.88% - 9.38% 1/1/96 628,603 Small business lending
------------
Interest-Bearing Deposit Account: 1.77%
49,918 Norwest Interest-Bearing Demand Deposit Account 49,918
------------
(Cost $ 49,918)
Total Investments 99.49% 2,804,977
(Cost $ 2,804,977) (d)
Other assets, less liabilities 0.51% 14,348
---------- -----------
NET ASSETS 100.00% $2,819,325
========== ============
</TABLE>
Key: (a) Investments are based upon amortized cost method. (b) Variable interest
rates are subject to change every 7 to 90 days. (c) Includes a total of 9 notes.
(d) Cost for federal income tax purposes is the same.
See accompanying notes to financial statements. 23
<PAGE>
Citizens Trust
Statement of Assets and Liabilities - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Working Assets Citizens Citizens Citizens
Money Market Income Index Emerging Growth
Portfolio Portfolio Portfolio Portfolio
--------------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $ 96,115,575; $
29,837,456; $ 105,207,279
and $ 15,146,639 respectively) (Note 1) $96,115,575 $31,050,292 $123,155,756 $17,486,394
Cash 217,248 7,175 88,330 97,634
Receivable for:
Interest 240,877 419,233 3,530 8,704
Dividends _ _ 187,104 4,705
Fund shares sold _ _ _ 15,901
Investment securities sold _ 676,000 _ _
SBA principal paydowns 220,042 _ _ _
Deferred organization costs (Note 1) _ 17,198 20,710 14,160
Prepaid expenses and others 112,067 _ _ -
--------------- ------------ --------------- -------------
Total Assets 96,905,809 32,169,898 123,455,430 17,627,498
--------------- ------------ --------------- -------------
LIABILITIES
Payables:
Investment securities purchased 137 _ _ 37,304
Capital shares redeemed 43,620 _ _ 7,107
Distributions 376,638 172,393 _ _
Accrued expenses 273,628 50,628 87,625 23,479
Due to investment adviser _ _ _ _
--------------- ------------ --------------- -------------
Total Liabilities 694,023 223,021 87,625 67,890
--------------- ------------ --------------- -------------
NET ASSETS
Applicable to 96,211,786; 2,987,533; 10,012,556
1,365,272 outstanding shares, respectively $96,211,786 $31,946,877 $123,367,805 $17,559,608
=============== ============ =============== =============
Net asset value and redemption price per share $1.00 $10.69 $12.32 $12.86
=============== ============ =============== =============
Maximum offering price per share $1.00 $10.69 $12.32 $12.86
=============== ============ =============== =============
NET ASSETS
At December 31, 1995 net assets consisted of:
Paid-in capital $96,211,786 $31,109,501 $105,518,769 $15,201,510
Undistributed net investment income _ _ _ _
Accumulated realized gain (loss) _ (375,460) (99,441) 18,343
Net unrealized appreciation of investments _ 1,212,836 17,948,477 2,339,755
--------------- ------------ --------------- -------------
$96,211,786 $31,946,877 $123,367,805 $17,559,608
=============== ============ =============== =============
</TABLE>
24 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Assets and Liabilities - December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Muir California
Citizens Tax-Free
Global Equity Income
Portfolio Portfolio E[bullet]fund
-------------- ------------ -------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $ 10,030,364; $ 13,917,281;
and $ 2,804,977 respectively) (Note 1) $11,465,542 $14,430,169 $2,804,977
Cash 253,801 3,244 _
Receivable for:
Interest 8,257 254,089 16,037
Dividends 14,808 _ _
Interchange income _ _ 685
Fund shares sold 5,264 _ _
Investment securities sold _ 514,245 _
SBA principal paydowns _ _ 24,924
Due from investment adviser _ _ _
Deferred organization costs (Note 1) 14,160 75,493 23,057
-------------- ------------ -----------
Total Assets 11,761,832 15,277,240 2,869,680
-------------- ------------ -----------
LIABILITIES
Payables:
Investment securities purchased 490,060 388,873 35,176
Capital shares redeemed _ _ _
Distributions _ 50,948 11,929
Accrued expenses 43,990 59,899 3,250
Due to investment adviser _ _ _
-------------- ------------ -----------
Total Liabilities 534,050 499,720 50,355
-------------- ------------ -----------
NET ASSETS
Applicable to 1,033,083; 916,113 and
2,819,325 outstanding shares, respectively $11,227,782 $14,777,520 $2,819,325
============== ============ ===========
Net asset value and redemption price per share $10.87 $16.13 $1.00
============== ============ ===========
Maximum offering price per share $10.87 $16.13 $1.00
============== ============ ===========
NET ASSETS
At December 31, 1995 net assets consisted of:
Paid-in capital $10,370,103 $14,813,619 $2,819,325
Undistributed net investment income _ _ _
Accumulated realized gain (loss) of
investments and foreign currencies (577,499) (548,987) _
Net unrealized appreciation of
investments and foreign currencies 1,435,178 512,888 _
-------------- ------------ -----------
$11,227,782 $14,777,520 $2,819,325
============== ============ ===========
</TABLE>
See accompanying notes to financial statements. 25
<PAGE>
Citizens Trust
Statement of Operations - Period Ended December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Working Assets Citizens Citizens Citizens
Money Market Income Index Emerging Growth
Portfolio Portfolio Portfolio Portfolio
--------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Investment Income
Interest $2,903,956 $1,197,647 $20,579 $49,740
Dividends _ _ 1,164,990 10,929
--------------- ------------ ------------- -------------
Total investment income 2,903,956 1,197,647 1,185,569 60,669
--------------- ------------ ------------- -------------
Expenses
Investment management fees (Note 2) 244,860 101,537 407,067 68,660
Transfer agent fees 90,375 3,138 76,155 4,598
Custody and accounting fees 10,152 4,752 13,675 4,719
Distribution expense (Note 2) 97,944 54,674 145,381 24,031
Administration expense (Note 2) 43,887 20,771 155,017 7,172
Legal and audit fees 12,855 4,177 18,887 1,999
Registration fees 10,082 6,553 18,139 6,553
Trustees' fees and expenses 3,348 3,348 3,348 3,348
Printing and postage 20,839 6,932 33,091 6,453
Dues 3,116 1,051 3,911 462
Insurance 964 661 2,422 274
Amortization of organization costs _ 3,277 3,277 2,268
--------------- ------------ ------------- -------------
Total expenses 538,422 210,871 880,370 130,537
Reimbursement by Adviser (Note 2) _ _ _ _
--------------- ------------ ------------- -------------
Net expenses 538,422 210,871 880,370 130,537
--------------- ------------ ------------- -------------
Net investment income (loss) 2,365,534 986,776 305,199 (69,868)
--------------- ------------ ------------- -------------
Realized and Unrealized Gain (Loss) on Investments
Realized gain (loss) on investments _ 109,205 (99,622) 1,218,971
Increase in unrealized
appreciation on investments _ 928,180 14,102,164 1,649,261
--------------- ------------ ------------- -------------
Net realized and unrealized gain
on investments resulting from operations _ 1,037,385 14,002,542 2,868,232
Net increase in net assets
--------------- ------------ ------------- -------------
resulting from operations $2,365,534 $2,024,161 $14,307,741 $2,798,364
=============== ============ ============= =============
</TABLE>
26 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Operations - Period Ended December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Muir California
Citizens Tax-Free
Global Equity Income
Portfolio Portfolio E[bullet]fund
-------------- --------------- --------------
<S> <C> <C> <C>
Investment Income
Interest $44,548 $411,303 $55,923
Dividends 44,170 _ _
Interchange _ _ 942
-------------- --------------- --------------
Total investment income 88,718 411,303 56,865
-------------- --------------- --------------
Expenses
Investment management fees (Note 2) 52,226 49,214 923
Transfer agent fees 14,531 0 1,443
Custody and accounting fees 17,049 0 600
Distribution expense (Note 2) 18,279 26,500 0
Administration expense (Note 2) 6,532 4,572 500
Legal and audit fees 4,285 544 500
Registration fees 6,553 1,260 500
Trustees' fees and expenses 3,349 3,349 75
Printing and postage 5,131 3,967 75
Dues 351 509 0
Insurance 219 157 0
Amortization of organization costs 2,268 11,998 0
-------------- --------------- --------------
Total expenses 130,773 102,070 4,616
Reimbursement by Adviser (Note 2) _ (7,424) (4,616)
-------------- --------------- --------------
Net expenses 130,773 94,646 0
-------------- --------------- --------------
Net investment income (loss) (42,055) 316,657 56,865
-------------- --------------- --------------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions
Realized gain (loss) on investments
and foreign currency transactions (562,524) 162,947 0
Increase in unrealized
appreciation on investments and
foreign currencies 890,083 406,849 0
-------------- --------------- --------------
Net realized and unrealized gain on
investments and foreign currencies 327,559 569,796 0
Net increase in net assets
-------------- --------------- --------------
resulting from operations $285,504 $886,453 $56,865
============== =============== ==============
</TABLE>
See accompanying notes to financial statements. 27
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Working Assets
Money Market Portfolio Citizens Income Portfolio
---------------------------------------- ---------------------------------------
For the For the For the For the
six months ended year ended six months ended year ended
December 31, 1995 June 30, 1995 December 31, 1995 June 30, 1995
--------------------- ---------------- ------------------- ---------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income $2,365,534 $4,479,491 $986,776 $1,674,276
Realized gain (loss) on investments _ _ 109,205 (484,665)
Unrealized appreciation of investments _ _ 928,180 1,405,185
---------------- ---------------- ---------------- ---------------
Change in net assets from
investment activities 2,365,534 4,479,491 2,024,161 2,594,796
---------------- ---------------- ---------------- ---------------
Distributions to shareholders from:
Net investment income (2,365,534) (4,479,491) (1,000,107) (1,674,963)
Net realized gain on investments _ _ _ (43,006)
---------------- ---------------- ---------------- ---------------
Total distributions (2,365,534) (4,479,491) (1,000,107) (1,717,969)
---------------- ---------------- ---------------- ---------------
Capital Share Transactions
Value of shares sold 50,000,237 102,295,056 4,476,502 10,836,296
Value of shares repurchased (53,318,202) (112,804,920) (4,403,425) (7,512,032)
Value of shares issued upon
reinvestment of distributions 1,918,442 4,354,760 727,391 1,511,014
---------------- ---------------- ---------------- ---------------
Increase (decrease) in net assets resulting
from capital share transactions (1,399,523) (6,155,104) 800,468 4,835,278
---------------- ---------------- ---------------- ---------------
Total increase (decrease) in net assets (1,399,523) (6,155,104) 1,824,522 5,712,105
Net Assets
Beginning of period 97,611,309 103,766,413 30,122,355 24,410,250
---------------- ---------------- ---------------- ---------------
End of period $96,211,786 $97,611,309 $31,946,877 $30,122,355
================ ================ ================ ===============
Capital Share Transactions
Number of shares sold 50,000,237 102,295,056 434,663 1,069,820
Number of shares repurchased (53,318,202) (112,804,920) (419,502) (750,267)
Number of shares issued upon reinvestment
of distributions 1,918,442 4,354,760 70,629 151,011
---------------- ---------------- ---------------- ---------------
Increase (decrease) in capital shares (1,399,523) (6,155,104) 85,790 470,564
================ ================ ================ ===============
</TABLE>
28 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Citizens Index Portfolio Citizens Emerging Growth Portfolio
----------------------------------------- ---------------------------------------
For the For the For the For the
six months ended year ended six months ended year ended
December 31, 1995 June 30, 1995* December 31, 1995 June 30, 1995
--------------------- ---------------- ------------------- ---------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 305,199 $ 95,086 $ (69,868) $ 36,416
Realized gain (loss) on investments (99,622) 535,007 1,218,971 825,127
Unrealized appreciation of investments 14,102,164 3,615,754 1,649,261 686,690
---------------- ---------------- ---------------- ---------------
Change in net assets from investment
activities 14,307,741 4,245,847 2,798,364 1,548,233
---------------- ---------------- ---------------- ---------------
Distributions to shareholders from:
Net investment income (290,108) _ - (41,305)
Net realized gain on investments (534,826) _ (1,851,855) (151,326)
---------------- ---------------- ---------------- ---------------
Total distributions (824,934) _ (1,851,855) (192,631)
---------------- ---------------- ---------------- ---------------
Capital Share Transactions
Value of shares sold 11,413,440 7,841,137 5,208,310 6,159,563
Value of shares issued in connection with
acquisition of Citizens Growth Portfolio
and Citizens Balanced Portfolio _ 95,798,428 _ _
Value of shares repurchased (8,432,890) (1,789,605) (1,033,911) (817,778)
Value of shares issued upon reinvestment
of distributions 808,641 _ 1,801,001 186,209
---------------- ---------------- ---------------- ---------------
Increase in net assets resulting
from capital share transactions 3,789,191 101,849,960 5,975,400 5,527,994
---------------- ---------------- ---------------- ---------------
Total increase in net assets 17,271,998 106,095,807 6,921,909 6,883,596
Net Assets
Beginning of period 106,095,807 _ 10,637,699 3,754,103
---------------- ---------------- ---------------- ---------------
End of period $123,367,805 $106,095,807 $17,559,608 $10,637,699
================ ================ ================ ===============
Undistributed net investment income
End of period _ $95,086 _ _
================ ================ ================ ===============
Capital Share Transactions
Number of shares sold 966,023 758,284 375,873 575,120
Number of shares issued in connection with
acquisition of Citizens Growth Portfolio
and Citizens Balanced Portfolio _ 9,106,314 _ _
Number of shares repurchased (720,007) (166,230) (78,298) (75,450)
Number of shares issued upon reinvestment
of distributions 68,171 _ 171,524 18,455
---------------- ---------------- ---------------- ---------------
Increase in capital shares 314,187 9,698,368 469,099 518,125
================ ================ ================ ===============
</TABLE>
* Commencement of operations March 3, 1995
See accompanying notes to financial statements. 29
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Muir California
Citizens Global Equity Portfolio Tax-Free Income Portfolio
----------------------------------------- ---------------------------------------
For the For the For the For the
six months ended year ended six months ended year ended
December 31, 1995 June 30, 1995 December 31, 1995 June 30, 1995
--------------------- ---------------- ------------------- ---------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) $ (42,055) $ (252) $ 316,657 $ 712,288
Realized gain (loss) on investments
and foreign currencies (562,524) 155,508 162,947 (185,122)
Unrealized appreciation
of investments and foreign currencies 890,083 652,979 406,849 236,452
--------------- ---------------- ----------------
Change in net assets from investment
activities 285,504 808,235 886,453 763,618
--------------- ---------------- ----------------
Distributions to shareholders from:
Net investment income _ _ (316,657) (712,288)
Net realized gain on investments (126,084) (47,352) _ _
--------------- ---------------- ---------------- --------------
Total distributions (126,084) (47,352) (316,657) (712,288)
--------------- ---------------- ---------------- --------------
Capital Share Transactions
Value of shares sold 2,306,710 4,299,560 272,119 1,530,379
Value of shares repurchased (863,350) (1,241,778) (1,523,539) (4,190,408)
Value of shares issued upon reinvestment
of distributions 121,840 45,930 218,099 574,206
--------------- ---------------- ---------------- --------------
Increase (decrease) in net assets resulting
from capital share transactions 1,565,200 3,103,712 (1,033,321) (2,085,823)
--------------- ---------------- ---------------- --------------
Total increase (decrease) in net assets 1,724,620 3,864,595 (463,525) (2,034,493)
Net Assets
Beginning of period 9,503,162 5,638,567 15,241,045 17,275,538
--------------- ---------------- ---------------- ---------------
End of period $11,227,782 $9,503,162 $14,777,520 $15,241,045
--------------- ---------------- ---------------- ---------------
--------------- ---------------- ---------------- ---------------
Capital Share Transactions
Number of shares sold 211,701 433,721 17,063 99,429
Number of shares repurchased (79,147) (124,638) (96,433) (274,731)
Number of shares issued upon reinvestment of
distributions 11,162 4,818 13,832 37,451
--------------- ---------------- ---------------- ----------------
Increase (decrease) in capital shares 143,716 313,901 (65,538) (137,851)
--------------- ---------------- ---------------- ----------------
--------------- ---------------- ---------------- ----------------
</TABLE>
30 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
E[bullet]fund
----------------------
For the
six months ended
December 31, 1995 *
----------------------
(Unaudited)
Operations
Net investment income $ 56,865
Realized gain (loss) on investments -
Unrealized appreciation (depreciation)
of investments -
----------------------
Change in net assets from investment activities 56,865
----------------------
Distributions to shareholders from:
Net investment income (56,865)
Net realized gain on investments _
----------------------
Total distributions (56,865)
----------------------
Capital Share Transactions
Value of shares sold 3,698,997
Value of shares repurchased (924,664)
Value of shares issued upon reinvestment of
distributions 44,992
----------------------
Increase in net assets resulting
from capital share transactions 2,819,325
----------------------
Total increase in net assets 2,819,325
Net Assets
Beginning of period -
----------------------
End of period $2,819,325
======================
Capital Share Transactions
Number of shares sold 3,698,997
Number of shares repurchased (924,664)
Number of shares issued upon reinvestment of
distributions 44,992
----------------------
Increase in capital shares 2,819,325
======================
* Commencement of operations July 1, 1995
See accompanying notes to financial statements 31
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Working Assets Money Market Portfolio
------------------------------------------------------------------------------------------
For the six For the years ended June 30,
months ended ---------------------------------------------------------------------
December 31, 1995 1995 1994 1993 1992 1991
Selected Per-Share Data (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------ ------ ------ -------
Income from investment operations
Net investment income 0.024 0.044 0.023 0.024 0.041 0.065
Less distributions
Dividends (from net
investment income) (0.024) (0.044) (0.023) (0.024) (0.041) (0.065)
------- ------- ------ ------ ------ -------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------- ------- ------ ------ ------ -------
Total return 4.82%* 4.51% 2.35% 2.43% 4.16% 6.67%
Ratios and Supplemental Data
Net assets, end of period (000's) $96,212 $97,611 $103,766 $152,625 $223,951 $243,194
Ratio of expenses to average
net assets 1.10%* 1.16% 1.16% 1.11% 1.07% 1.02%
Ratio of net income to
average net assets 4.83%* 4.39% 2.31% 2.41% 4.09% 6.47%
* Annualized.
</TABLE>
32 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Income Portfolio Citizens Index Portfolio
--------------------------------------------------------- -------------------------
For the For the For the For the For the For the For the
six months year year year period* six months period**
months ended ended ended ended ended ended ended
December 31, June 30, June 30, June 30, June 30, December 31, June 30,
1995 1995 1994 1993 1992 1995 1995
Selected Per-Share Data (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets value,
beginning of period $10.38 $10.04 $10.60 $10.07 $10.00 $10.94 $10.00
------- ------ ------ ------ ------ ------ ------
Income (loss) from
investment operations
Net investment income (loss) 0.33 0.65 0.55 0.46 0.01 0.03 0.01
Net gain (loss) on securities
(both realized and
unrealized) 0.32 0.36 (0.56) 0.54 0.07 1.43 0.93
------- ------ ------ ------ ------ ------ ------
Total from investment operations 0.65 1.01 (0.01) 1.00 0.08 1.46 0.94
------- ------ ------ ------ ------ ------ ------
Less distributions
Dividends
(from net investment income) (0.34) (0.65) (0.55) (0.47) (0.01) (0.03) -
Distributions
(from net realized gains) - (0.02) - - - (0.05) -
------- ------ ------ ------ ------ ------ ------
Total distributions (0.34) (0.67) (0.55) (0.47) (0.01) (0.08) -
Net asset value, end of period $10.69 $10.38 $10.04 $10.60 $10.07 $12.32 $10.94
------- ------ ------ ------ ------ ------ ------
Total Return 12.99%*** 10.45% 0.04% 10.08% 14.60%*** 28.31%*** 9.40%
------- ------ ------ ------ ------ ------ ------
Ratios and Supplemental Data
Net assets,
end of period (thousands) $31,947 $30,122 $24,410 $12,601 $1,030 $123,368 $106,096
Ratio of expenses to
average net assets 1.35%*** 1.35% 1.25% 1.42% 1.75%*** 1.51%*** 1.75%***
Ratio of expenses to
average net assets
prior to reimbursement N/A 1.48% 2.01% 2.38% N/A N/A N/A
Ratio of net income
(loss) to average net assets 6.32%*** 6.47% 5.43% 4.98% 4.38%*** 0.52%*** 0.98%***
Ratio of net income (loss)
to average net assets
prior to reimbursement N/A 6.34% 4.68% 4.02% N/A N/A N/A
Portfolio turnover rate 33.73% 46.03% 52.62% 22.35% 0.00% 2.11% 64.95%
</TABLE>
* Commencement of operations June 10, 1992
** Commencement of operations March 3, 1995
*** Annualized.
See accompanying notes to financial statements. 33
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Emerging Growth Portfolio Citizens Global Equity Portfolio
For the six For the year For the period* For the six For the year For the period*
months ended ended ended months ended ended ended
December 31, June 30, June 30, December 31, June 30, June 30,
1995 1995 1994 1995 1995 1994
------------ ------------ --------------- ------------ ------------- ---------------
Selected Per-Share Data (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net assets value,
beginning of period $11.87 $9.93 $10.00 $10.69 $9.80 $10.00
------- ------ ------ ------ ------ -------
Income (loss) from investment
operations
Net investment income (loss) (0.06) 0.07 0.01 (0.01) (0.01) 0.01
Net gain (loss) on
securities (both
realized and unrealized) 2.64 2.18 (0.08) 0.32 0.96 (0.21)
------- ------ ------ ------ ------ ------ ------
Total from investment
operations 2.58 2.25 (0.07) 0.31 0.95 (0.20)
------- ------ ------ ------ ------ ------ ------
Less distributions
Dividends (from net investment
income) - (0.09) - - - -
Distributions (from net realized
gains) (1.59) (0.22) - (0.13) (0.06) -
------- ------ ------ ------ ------ ------ ------
Total distributions (1.59) (0.31) - (0.13) (0.06) -
------- ------ ------ ------ ------ ------ ------
Net asset value, end of period $12.86 $11.87 $9.93 $10.87 $10.69 $9.80
------- ------ ------ ------ ------ ------ ------
Total Return 51.22%** 23.24% (1.80%)** 5.81%** 9.77% (5.14%)**
------- ------ ------ ------ ------ ------ ------
Ratios and Supplemental Data
Net assets,
end of period (thousands) $17,560 $10,638 $3,754 $11,228 $9,503 $5,639
Ratio of expenses to
average net assets 1.90%** 1.90% 1.89%** 2.50%** 2.50% 2.50%**
Ratio of expenses to average
net assets prior to reimbursement N/A 2.93% 3.81%** N/A 2.99% 3.16%**
Ratio of net income (loss)
to average net assets (1.02%)** 0.53% 0.63%** (0.80%)** (0.00%) 0.25%**
Ratio of net income (loss)
to average net assets
prior to reimbursement N/A (0.50%) (1.29%)** N/A (0.49%) (0.41%)**
Portfolio turnover rate 172.65% 231.30% 33.35% 54.05% 22.10% 0.00%
</TABLE>
* Commencement of operations February 8, 1994
** Annualized
34 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Muir California Tax-Free Income Portfolio
-----------------------------------------------------------------------------------------
For the six For the year For the For the year For the year For the period
months ended ended period April 1, ended ended ended
December 31, June 30, 1994 to March 31, March 31, March 31,
1995 1995 June 30, 1994 1994 1993 1992*
------------ ------------- --------------- ------------ ------------ -------------
Selected Per-Share Data (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net assets value, beginning of period $15.53 $15.43 $15.71 $16.67 $15.76 $15.00
------- ------ ------ ------ ------ ------
Income (loss) from investment operations
Net investment income 0.32 0.67 0.18 0.84 0.90 0.67
Net gain (loss) on securities (both
realized and unrealized) 0.60 0.10 0.01 (0.79) 1.00 0.53
------- ------ ------ ------ ------ ------
Total from investment operations 0.92 0.77 0.19 0.05 1.90 1.20
------- ------ ------ ------ ------ ------
Less distributions
Dividends (from net investment income) (0.32) (0.67) (0.32) (0.86) (0.91) (0.44)
Distributions (from net realized gains) - - (0.15) (0.15) (0.08) -
------- ------ ------ ------ ------ ------
Total distributions (0.32) (0.67) (0.47) (1.01) (0.99) (0.44)
------- ------ ------ ------ ------ ------
Net asset value, end of period $16.13 $15.53 $15.43 $15.71 $16.67 $15.76
------- ------ ------ ------ ------ ------
Total Return 12.27%** 5.15% 5.09%** 0.04% 12.58% 10.24%**
------- ------ ------ ------ ------ ------
Ratios and Supplemental Data
Net assets, end of period (thousands) $14,778 $15,241 $17,276 $17,532 $15,455 $6,135
Ratio of expenses to average net assets 1.25%** 1.25% 1.25%** 0.75% 0.46% 0.27%**
Ratio of expenses to average net assets
prior to reimbursement 1.35%** 1.74% 1.86%** 1.62% 1.87% 5.83%**
Ratio of net income (loss) to
average net assets 4.18%** 4.37% 4.70%** 4.98% 5.59% 6.90%**
Ratio of net income (loss) to
average net assets prior to reimbursement 4.08%** 3.88% 4.09%** 4.11% 4.18% 1.34%**
Portfolio turnover rate 63.78% 74.94% 38.29% 31.04% 36.24% 28.97%
</TABLE>
* Commencement of operations June 10, 1991
** Annualized
See accompanying notes to financial statements. 35
<PAGE>
Citizens Trust
Financial Highlights
E.fund
------------------
For the six
months ended
December 31, 1995*
------------------
Selected Per-Share Data (Unaudited)
Net asset value, beginning of period $1.00
------
Income from investment operations
Net investment income 0.026
------
Less distributions
Dividends (from net investment income) (0.026)
------
Net asset value, end of period $1.00
======
Total return 5.16%**
------
Ratios and Supplemental Data
Net assets, end of period (000's) $2,819
Ratio of expenses to average net assets 0.00%**
Ratio of expenses to average net assets
prior to reimbursement 0.50%**
Ratio of net income (loss) to average net assets 6.16%**
Ratio of net income (loss) to average net assets
prior to reimbursement 5.66%**
* Commencement of operations July 1, 1995
** Annualized.
36 See accompanying notes to financial statements
<PAGE>
Citizens Trust
Notes to Financial Statements
December 31, 1995
NOTE 1 - Summary of Significant Accounting Policies
Organization
Working Assets Money Market Portfolio, Citizens Income Portfolio, Citizens
Index Portfolio, Citizens Emerging Growth Portfolio, Citizens Global Equity
Portfolio, Muir California Tax-Free Income Portfolio and E[bullet]fund(the
"Portfolios") are each a series of shares of beneficial interest of Citizens
Investment Trust ("Citizens Trust" or the "Trust"), formerly known as Working
Assets Common Holdings. The Trust is registered as an open-end management
company under the Investment Company Act of 1940, as amended. The Trust was
organized as a Massachusetts business trust on November 24, 1982, and is
authorized to issue an unlimited number of no par value shares in one or more
series. The following is a summary of significant accounting policies followed
by the Portfolios.
Security Valuation
Working Assets Money Market Portfolio's and E[bullet]fund's securities are
valued at amortized cost (premiums and discounts are amortized on a
straight-line basis), which has been determined by the Board of Trustees to
represent fair value. With respect to the other Portfolios, securities for which
market quotations are readily available are valued at the most recent closing
sale price or, if there is no closing sale price, at the bid price except for
municipal bonds which are valued at the mean between the bid and asked price.
Fixed income securities maturing within sixty days are normally valued at cost,
plus or minus any amortized discount or premium, provided that the Board of
Trustees determines that amortized cost equals market value. All securities for
which market quotations are not readily available will be fairly valued by the
Adviser in good faith under the supervision of the Board of Trustees.
The Muir California Tax-Free Income Portfolio invests in debt instruments
of municipal issuers. The issuers' abilities to meet their obligations may be
affected by economic developments in the state of California.
Security Transactions, Investment Income and Other
Security transactions are recorded on the trade date. Interest income is
recorded on an accrual basis. Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Realized gains and losses are recorded on
the identified cost basis. The Money Market Portfolio and E[bullet]fund seek to
maintain a continuous net asset value per share of $1.00 and intend to comply
with the maturity, diversification and quality requirements of Rule 2a-7 under
the Investment Company Act of 1940, in order to be considered a money market
fund. If net asset value per share using available market information deviates
from $1.00 by $.005 or more, the Board of Trustees would consider what steps, if
any, should be taken to restore net asset value per share to $1.00.
Distributions
Citizens Income Portfolio distributes net investment income to shareholders
monthly and net capital gains, if any, annually. With respect to Citizens Index
Portfolio, Citizens Emerging Growth Portfolio and Citizens Global Equity
Portfolio, distributions to shareholders from net investment income and net
capital gains, if any, are distributed annually. With respect to the Working
Assets Money Market Portfolio, E[bullet]fund and the Muir California Tax-Free
Income Portfolio, dividends from net investment income are accrued daily and are
reinvested in additional shares or paid in cash monthly. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for net operating
losses and deferral of post-October losses.
Federal Income Taxes
No provision has been made for Federal taxes on the Portfolios'
income since it is the policy of the Portfolios to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of their taxable income to their shareholders.
Deferred Organization Costs
All costs incurred in connection with the organization, registration
and/or reorganization of the Portfolios have been paid by the Portfolios. These
costs are being amortized on a straight line basis over a period not to exceed
sixty months.
37
<PAGE>
NOTE 2 - Investment Advisory Fee and Other Transactions with Affiliates
Citizens Advisers (the "Adviser"), formerly known as Working Assets
Management Company, serves as Adviser to each of the Portfolios. Citizens
Securities (the "Distributor'), formerly known as Working Assets Capital
Management , is a wholly owned subsidiary of the Adviser and serves as the
Distributor of each of the Portfolios' shares. Under the terms of the management
contract, the Adviser is paid a monthly fee based on an annual rate of each
Portfolio's average net assets. Those rates are a follows: Working Assets Money
Market Portfolio, .50%; Citizens Income Portfolio and Muir California Tax-Free
Income Portfolio, .65%; Citizens Index Portfolio, .70%; Citizens Emerging Growth
Portfolio and Citizens Global Equity Portfolio, 1.00%; and E[bullet]fund .10%.
The Adviser has agreed to reduce or eliminate its fee to the extent that the
total expenses of a Portfolio for any fiscal year (exclusive of taxes, interest,
brokerage commissions and extraordinary expenses) exceed the following
limits: Working Assets Money Market Portfolio, 1.50% of the first $40 million of
average net assets and 1% thereafter; Citizens Income Portfolio, 1.75% of the
first $75 million of average net assets and 1.25% thereafter; Citizens Emerging
Growth Portfolio, Citizens Global Equity Portfolio and Muir California Tax-Free
Income Portfolio, 1.90%, 2.50% and 1.25%, respectively, of average net assets.
The Adviser may also voluntarily reduce its fee or waive reimbursement of
distribution costs so that the total expenses of a Portfolio are below such
limits. The Adviser is currently waiving all expenses of E[bullet]fund. Such
voluntary reimbursements may cease at any time. Reimbursements for the period
ended December 31, 1995 were $7,424 and $ 4,616 for the Muir California Tax-Free
Income and E[bullet]fund Portfolios, respectively.
GMG/Seneca Capital Management serves as the Sub-Adviser for Working Assets
Money Market Portfolio, Citizens Income Portfolio, Citizens Emerging Growth
Portfolio, Muir California Tax-Free Income Portfolio and E[bullet]fund. Clemente
Capital, Inc. serves as the Sub-Adviser for Citizens Global Equity Portfolio and
RhumbLine Advisers serves as the Sub-Adviser for Citizens Index Portfolio. For
their services, the Sub-Advisers receive fees, paid by the Adviser as follows:
Percent of average Percent of management
net assets fee paid Adviser
------------------ ---------------------
Money Market Portfolio .08% _
Income Portfolio .165% _
Index Portfolio .10% _
Emerging Growth Portfolio _ 35%
Global Equity Portfolio .35% _
Muir[bullet}California Tax-Free Portfolio .175% _
E.fund .08% _
The Trust has a distribution agreement with the Adviser which allows the
Adviser to be reimbursed for distribution-related expenses up to .25% of the
average daily net assets of the Working Assets Money Market Portfolio and the
Citizens Index Portfolio and up to .35% of the average daily net assets of the
other Portfolios, with the exception of E[bullet]fund, which has no
distribution-related expenses. The Adviser in its capacity as underwriter for
the Trust collects any sales charges imposed on purchases of the Portfolios'
shares and reallows a portion of such charges to dealers through whom sales are
made. Citizens Trust eliminated all sales charges on the sale of Portfolio
shares on July 17, 1995. For the period from July 1 to July 17, 1995, the
Adviser retained sales charges of $7,482 on sales of the Portfolios' shares.
Pursuant to an Administrative Services Agreement, the Adviser assumes a
number of general administrative services for each Portfolio relating primarily
to shareholder communications for which the Adviser is reimbursed the cost of
providing such service.
Certain officers and trustees of the Trust are "affiliated persons," as
defined in the Act, of the Adviser. Currently, each trustee who is not an
"affiliated person" receives an annual retainer of $2,000 and $500 for each day
there is a trustee's meeting.
NOTE 3 - Investment Securities
Purchases of investments, other than short-term securities, aggregated
$11,819,778, $4,585,046, $23,764,874, $3,088,150, and $9,452,279 for the
Citizens Income Portfolio, Citizens Index Portfolio, Citizens Emerging Growth
Portfolio, Citizens Global Equity Portfolio, and Muir California Tax-Free Income
Portfolio, respectively, for the period ended December 31, 1995. Sales of
investments, other than short term securities, aggregated $9,558,553,
$2,412,044, $20,400,873, $4,227,478, and $9,875,109 for the Citizens Income
Portfolio, Citizens Index Portfolio, Citizens Emerging Growth Portfolio,
Citizens Global Equity Portfolio, and Muir California Tax-Free Income Portfolio,
respectively, for the period ended December 31, 1995.
38
<PAGE>
The amount of unrealized appreciation (depreciation) of investments as of
December 31, 1995 is as follows:
Income Index Emerging Growth
Portfolio Portfolio Portfolio
--------- --------- ---------------
Gross Appreciation $ 1,236,115 $20,394,704 $2,822,629
Gross Depreciation (23,279) (2,446,227) (482,874)
----------- ------------ ---------------
Net Appreciation $1,212,836 $17,948,477 $2,339,755
----------- ------------ ---------------
Global Equity Muir California
Portfolio Tax-Free Income Portfolio
------------- -------------------------
Gross Appreciation $1,698,410 $515,972
Gross Depreciation (263,232) (3,084)
--------
Net Appreciation $1,435,178 $512,888
=========
Investments have the same cost for tax and financial statement purposes.
NOTE 4 - Restricted Securities
On December 31, 1995 the Citizens Index Portfolio held restricted
securities (i.e., securities which may not be publicly sold without registration
under the Federal Securities Act of 1933 ( the `33 Act") or without an exemption
under the `33 Act). These securities are valued at fair value as determined by
the Board of Trustees. On December 31, 1995, and on the acquisition dates of the
restricted securities, there were no market quotations available for
unrestricted securities of the same class. Dates of acquisition and costs of
restricted securities are as follows:
Date of Acquisition Cost
Energia Global, Series A Conv. Pfd. April 1, 1993 $250,000
Vulcan Power Co., Class A June 1, 1993 300,000
Total $550,000
At December 31, 1995, the cost and market value of Energia Global were the
same. Vulcan Power had a market value on December 31, 1995 of $25,000. Total
restricted securities represented 0.22% of net assets.
NOTE 5 - Reorganization - Citizens Growth Portfolio and Citizens Balanced
Portfolio into Citizens Index Portfolio
On May 30, 1995, a majority of the shareholders of the Citizens Growth
Portfolio and the Citizens Balanced Portfolio approved a plan of reorganization
with Citizens Index Portfolio effective May 30, 1995. The reorganization was
accomplished by a tax-free exchange of all the assets and liabilities of the
Citizens Balanced Portfolio and Citizens Growth Portfolio including combined
unrealized appreciation of $230,559 for shares of the Citizens Index Portfolio.
The Citizens Index is a non-diversified series of shares of beneficial interest
of Citizens Trust. Shareholders of the Citizens Growth Portfolio and the
Citizens Balanced Portfolio received shares of the Index Portfolio with a value
equal to the value of the assets (minus the liabilities) of the Citizens Growth
and Balanced Portfolios. The aggregate net assets of the Citizens Index
Portfolio immediately after the reorganization was $101,963,087.
39
CITIZENS
TRUST
Distributor
Citizens Securities
One Harbour Place[bullet]Portsmouth, NH 03801
800-223-7010[bullet]603-436-5152
Manager
Citizens Advisers
111 Pine Street[bullet]San Francisco, CA 94111
One Harbour Place[bullet]Portsmouth, NH 03801
800-223-7010[bullet]603-436-5152
Trustees
William D. Glenn II, Chair
Aileen Hernandez, Chair Emerita
Sophia Collier, Juliana Eades, Wilma Mankiller,
Azie Taylor Morton, J. D. Nelson, Ada Sanchez
Custodian
State Street Bank and Trust Company
Boston, MA
Transfer Agent & Dividend Disbursing Agent
PFPC Inc.
Wilmington, DE
Legal Counsel
Morrison & Foerster
San Francisco, CA
Independent Auditors
Tait, Weller & Baker
Philadelphia, PA
World Wide Web Address http://www.efund.com
(c) 1996 Citizens Advisers
(logo) Printed on recycled paper with soy-based ink.
