President's Letter
[Picture of Sophia Collier]
Dear Shareholders:
Today in the Wall Street Journal's Mutual Fund Scorecard our very own Citizens
Emerging Growth Fund was reported to be #1 overall for total return among 143
mid-cap funds tracked by Lipper Analytical Services, Inc., for the one year
ended August 1, 1996. This is a very proud moment for the Fund and all its
shareholders. Our special vision of investing with responsibility has again been
tested and proven in some of the most challenging financial markets.
The E [bullet] fund, also known as our "other #1 fund," continues to reign
supreme in the money market area with the top total return of 282 funds for the
one year ended 7-31-96 according to Lipper Analytical Services, Inc.
As the individual managers' reports that follow will show, our five other
portfolios have also turned in strong, positive performances: Citizens Trust as
a whole enjoyed record earnings of $41,190,000 in fiscal 1996. This growth
reflects both ongoing improvement in investment results and other operations.
Our assets have grown to over $350 million dollars as an increasing number of
people join us in our special style of investing.
CORPORATE RESPONSIBILITY INITIATIVES
While we seek to build strong financial performance, we also have the important
obligation of considering the social impact of our investments. In 1996 we
concentrated our efforts in two areas: A campaign to eliminate sweatshops and a
divestment campaign focused on Burma.
"Sweatshops" are manufacturing facilities which do not pay the country's minimum
wage or maintain minimum legal safety standards. It is a common perception that
sweatshops are primarily a "third world" problem, yet this is not true.
According to the Department of Labor, more than half of our nation's 22,000
registered sewing contractors do not pay workers the federal minimum wage and
more than a third have workplace hazards.
At Citizens Trust we are encouraging the retail companies we have invested in to
stop purchasing goods produced with "sweated" labor. This campaign is
coordinated with Unite (Union of Needletrades, Industrial and Textile
Employees), Garment 2000, the National Labor Committee and the Department of
Labor.
BURMA
It was widely recognized that the South Africa Divestiture movement had a
great impact on bringing apartheid to an end in South Africa. We believe this
strategy can also work in restoring democracy to Burma. To this end we worked
closely with investors, activists and students throughout the country including
Progressive Asset Management and Franklin Research and Development in Boston.
Together, we have been successful at gaining the passage of selective purchasing
legislation in a number of cities and in the State of Massachusetts which
prohibit the purchase of goods from companies which do business in Burma. On the
day that our legislation passed in San Francisco, Pepsi announced that it would
divest of Burma operations.
Overall, we have had a very good year in fiscal 1996, but we won't rest on our
laurels. As market conditions change we will need to be vigilant to protect
shareholders assets during the inevitable "downdrafts" and "corrections" that
follow good years. In all that we do we will continue to emphasize the long term
in our financial strategy and its social impact.
Sincerely yours,
Sophia Collier
President
August 5, 1996
1
<PAGE>
Managers' Comments
[Picture of Edwin Ek]
CITIZENS INDEX PORTFOLIO
(Sub-Adviser: RhumbLine Advisers, Inc.)
The strategy for the Citizens Index Portfolio is always the same: Stay as fully
invested as possible in the securities that make up the Citizens Index, a
specially designed market-weighted index of 300 socially responsible companies.
The performance of the portfolio will, therefore, always be similar to the
performance of the Citizens Index itself, less the costs of operating the
portfolio and adjusted for the impact of any cash held in the portfolio. (Cash
will add to performance when the market is heading down and subtract when the
market is going up.)
[DATA FOR RETAIL AND INSTITUTIONAL LINE CHARTS]
Retail Class
15,000
14,500
14,000
13,500
13,000
12,500
12,000
11,500
11,000
10,500
10,000
Institutional Class
11,500
11,000
10,500
10,000
March 3, 1995 June 30, 1995 January 26, 1996 June 30, 1996
Citizens Index Portfolio (Retail Class)
S & P 500
Citizens Index
Citizens Index Portfolio (Institutional Class)
The information presented above reflects performance for the time period
beginning March 3, 1995 and ending June 30, 1996. Past performance is not
indicative of future results. Standardized total return: Citizens Index
Portfolio-Retail Class since inception 25.30%, for 1 year 23.41%. Portfolio
commenced operations March 3, 1995. Standardized total return: Citizens Index
Portfolio-Institutional Class since inception 10.00%. Portfolio commenced
operations January 25,1996.
For the year ended 6-30-96 the Citizens Index itself returned 26.2%,
outperforming the S&P 500 by a small amount. This resulted in performance for
the Citizens Index Portfolio of 23.41% for the year, above the average of 22.6%
recorded for Growth and Income funds tracked by Morningstar, the mutual fund
ranking service.
The largest industry within the Citizens Index is Food & Agriculture,
representing 11.2% of the index versus 6.5% for the S&P 500. The return for this
sector was 36.5%. The next largest industry is Telephone at 11.0% of the index
which returned an average of 24.9%. In both of these cases, the companies in the
Citizens Index outperformed their counterparts in the S&P 500.
Looking at individual companies, twenty-nine of the top thirty companies, ranked
by net contribution to overall index performance (function of both the total
return of the company as well as its relative size within the index) were also
members of the S&P 500 Index. In an environment where larger companies
outperformed smaller companies, this was to be expected. The best performing
smaller company, U.S. Robotics, only represented 0.2% of the index (as compared
to Coca Cola at 5.5%), but had a return of 214%! This company was a direct
beneficiary of the current interest in the Internet since they are the leading
supplier of modems, the piece of computer equipment required to connect onto the
Internet.
Over the past year the Portfolio has increased in size by over 36%. While cash
flows daily into and out of the Portfolio, trading of stocks is kept to a
minimum in order to reduce expenses. The trading techniques employed by
RhumbLine Advisers, the manager of the Citizens Index Portfolio, kept turnover
of stocks below 10% of the total Portfolio's value on an annualized basis. This
compares favorably with most equity mutual funds which average between 60% and
100% turnover.
There were five industries which effectively received no investments: oil
companies, liquor, tobacco, gold production, and aerospace. Combined, these
industries represent almost 10% of the investable equity universe in the United
States. As a group, these industries returned almost 25%, slightly
underperforming the overall market as well as the Citizens Index.
[Picture of Gail Seneca]
CITIZENS INCOME PORTFOLIO
(Sub-Adviser: GMG/Seneca Capital Management)
The Citizens Income Portfolio provided a total return of 5.48% for the year
ending 6-30-96. This return places the Portfolio in the top quartile of
comparable funds, and well above the bond market average. On July 3, 1996, the
Wall Street Journal listed the Citizens Income Portfolio with an "A" ranking.
This denotes the top 20% in performance amoung comparable funds. These
competitive results were achieved
<PAGE>
Managers' Comments
with a lower risk strategy, focused on intermediate maturity bonds with
relatively high income payouts.
The benefits of this careful, risk averse strategy are especially obvious during
periods of great volatility in the markets. This last year was such a period. In
fact, the price volatility of long maturity bonds actually exceeded the
volatility of common stocks during the year. Rather than attempting to time the
swings in the market, the Citizens Income Portfolio controls its maturity
exposure, and over long periods, realizes most of its return through current
income.
[DATA FOR LINE CHART]
13,000
12,500
12,000
11,500
11,000
10,500
10,000
June 30, 1992 June 30, 1993 June 30, 1994 June 30, 1995 June 30, 1996
Citizens Income Portfolio
Lehman Government/Corporate Intermediate
Past performance is not indicative of future results. Standardized total return:
Citizens Income, 1 year 5.48%, since inception 6.54%. Portfolio commenced
operations June 10, 1992.
The bulk of our analytic work is the identification of bonds which can provide a
steady, long term, and high income stream. During the last year, this led us to
emphasize corporate bonds and mortgage backed issues, especially collateralized
mortgage obligations. The issues in which we invested generally carried above
market coupons, which proved quite defensive during the price downturn in the
first half of 1996. As of 6-30-96, our top holdings in the Portfolio included a
number of corporate issues (such as Corporate Express and Time Warner) as well
as some government guaranteed collateralized mortgage obligations.
In absolute terms, the overall bond market's return over the last year was below
average. This return reflects a drop in bond prices in 1996, caused by a rise in
interest rates. Rates jumped over one percentage point in the first half of 1996
in response to stronger than expected economic news. We expect a more benign
trend in interest rates going forward, as the economy slows a bit and inflation
remains tame. This will benefit bond investors. Our approach will remain focused
on providing above market returns through the disciplined, lower-risk strategy
which has proven beneficial for the Portfolio thus far.
THE MUIR CALIFORNIA TAX FREE INCOME PORTFOLIO
(Sub-Adviser: GMG/Seneca Capital Management)
The Muir Portfolio provides tax free income for California residents, through
investment in a high quality portfolio of municipal issues which has positive
social and environmental impact.
The Portfolio provided investors a one year total return of 4.71% as of 6-30-96,
consisting mostly of tax free income. At 6-30-96, the current distribution rate
for the Portfolio was 3.95%, which translates into a very attractive tax
equivalent return of over 7.2%. (Assuming a combined Federal and California
income tax bracket of 45%.)
Volatile conditions prevailed in the California municipal market over the year.
Late in 1995, municipal bond yields fell sharply as the overall economy
softened. 1996 saw an abrupt reversal of the downtrend in rates. By mid year,
interest rates had risen again, completely reversing the prior decline.
In addition to the swings in the general level of interest rates, municipal
bonds experienced additional volatility due to the changing prospects for tax
reform. In 1995, a change in the tax-free status of municipal bond income was
proposed in Congress. Fears that such a change might be enacted into law
dampened investor demand
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
February 8, 1994 June 30, 1994 June 30, 1995 June 30, 1996
Muir California Tax-Free Income Portfolio
Lehman 7 Year Municipal Index
Past performance is not indicative of future results. Standardized total return:
Muir Portfolio, 1 year 4.71%, since inception 6.22%. Portfolio commenced
operations June 10, 1991.
3
<PAGE>
Managers' Comments
for municipals. By early 1996, prospects for tax reform faded, and the tone in
the municipal bond market improved. Also contributing to the firmer tone was the
long awaited emergence of Orange County from bankruptcy and a rebound in the
California economy.
Looking through the volatility, we see good value in California municipals for
high tax bracket investors. At current yields, investors are adequately
compensated for inflation. Credit trends are improving in California, to the
benefit of bond investors. Finally, investor demand is likely to pick up in
response to recent stock market turmoil.
Stable, tax free return, produced by a risk averse strategy focused on
intermediate rather than long maturity bonds, remains our objective.
[Picture of Danita Wright]
WORKING ASSETS MONEY MARKET PORTFOLIO
(Sub-Adviser: GMG/Seneca Capital Management)
Money market yields fell over the last twelve months, in contrast with the
overall rise in longer term interest rates. The Working Assets Money Market
Portfolio yield also declined through the year, but consistently provided a
strong 'real' (inflation adjusted) return. Investors in the Portfolio for the
year outperformed the inflation rate and escaped the volatility of the stock and
bond markets.
The decline in short term rates over the last twelve months reflects the Federal
Reserve's gradual easing of short term rates. By 1996, the long bond market
anticipated that the Fed would reverse its easing policy, in response to a
firming economy. By mid year, long term interest rates had indeed reversed
course and moved higher. But short term rates, which are largely controlled by
the Federal Reserve, did not rise.
We expect stability in short term rates going forward. Further decline is
unlikely. Even though inflation remains quite low, the economy is strong, the
business cycle is quite extended, and the capacity bottlenecks have developed,
especially in labor. The Federal Reserve cannot be expected to lower rates until
the economy softens, and wage pressures are relieved.
Money fund investors are likely to earn strong 'real' returns in the year ahead.
THE E [bullet] FUND MONEY MARKET PORTFOLIO
On the investment side, the E [bullet] fund had a similar strategy to the
Working Assets Money Market Portfolio. However, our innovative "E-fund Refund"
helped counter sliding yields and resulted in the E [bullet] fund becoming the
top performing overall money market fund for total return for the one year
ending 7-31-96 of the 282 funds tracked by Lipper Analytical Services, Inc. The
"E [bullet] fund Refund" puts 1% of all the fund's debit card purchases back
into the fund up to a limit of 9.75% of the fund's gross investment income. This
synergy of convenience and performance set the Eofund apart from the rest last
year.
Along with free checking and no minimum balance, the "E [bullet] fund Refund" is
one of several features that make the Eofund a unique financial tool for
everyday money management. Citizens Trust has also dropped the direct deposit
requirement (though we still recommend it for convenience) in hopes that the
E [bullet] fund's advantages will be accessible to a greater number of people.
[Picture of Rick Little]
CITIZENS EMERGING GROWTH PORTFOLIO
(Sub-Adviser: GMG/Seneca Capital Management)
The Citizens Emerging Growth Portfolio rose 42.43% in total return over the last
year as of 6-30-96. This return exceeded the return of all broad stock market
indices, and placed the Portfolio in the top tier of the competitive universe.
The fund was 10th of 89 aggressive growth funds for the period ending 6-30-96,
according to Morningstar. The Portfolio's excellent return outperformed the
broad market, as represented by the S&P 500, over 17 percentage points.
The 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 leveling off of 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.
Over the last year, the Portfolio benefited from excellent corporate earnings
growth, particularly in technology, health care and business outsourcing firms.
Some of these companies do not have a long history as publicly traded firms.
Therefore, our analytic work must be quite
<PAGE>
Managers' Comments
[DATA FOR LINE CHART]
16,000
15,000
14,000
13,000
12,000
11,000
10,000
9,000
February 8, 1994 June 30, 1994 June 30, 1995 June 30, 1996
Citizens Emerging Growth Portfolio
Russell 2000 Index
Past performance is not indicative of future results. Standardized total return:
Citizens Emerging Growth, 1 year 42.43%, since inception 26.15%. Portfolio
commenced operations February 8, 1994.
thorough, and always includes management as well as financial review. Management
credibility is a key element of our portfolio decisions. Over the last year, our
analytic disciplines have served Portfolio shareholders well.
At June 30, 1996, the Portfolio's top ten holdings were:
PMT Services Inc.
BMC Industries
Checkpoint Systems
Envoy Corp.
Amisys Managed Care
Cadence Designs
Cincinnati Bell
Gucci
Sun Microsystems
Corporate Express
We believe the fundamentals for investment in mid-to-smaller capitalization
companies are quite compelling. Business innovation is essential in a world of
intense global competition. Even in service industries, which tend to be purely
domestic, such as health care delivery, greater efficiency is very much in
demand. The Citizens Emerging Growth Portfolio is positioned to capitalize on
these trends, and to continue to provide competitive returns.
Among the major contributors to the Portfolio's robust return over the last
twelve months was Cincinnati Bell, a diversified company providing local access
telephony in its service area and a host of other marketing services. Among its
fastest growing product lines are its billing services, used by many wireless
phone service providers, and its telemarketing services used by firms such as
Direct T.V. The company has grown earnings almost 50% over the last twelve
months, and the stock price has doubled. The Portfolio maintains a position in
this company, because we believe its strategy will result in continued strong
growth.
Though the Portfolio's overall result was extremely strong, some positions hurt
our return. Medpartners/Mulliken, a physician practice management company
declined markedly after it announced an unexpected acquisition of a large health
care company. The targeted company had a history of operating and regulatory
problems. Many investors, including ourselves, concluded that the acquisition
would drain profitability for an uncertain and perhaps extended time period. We
sold the stock at a loss. It has continued its decline.
For the year, the Portfolio's major contributors to return were:
Ascend Communications
Phycor
PMT Services
Cincinnati Bell
Corporate Express
As we move ahead, earnings comparisons may become quite difficult for many
companies because profit momentum appears to have peaked. In this environment,
our investment discipline will become even more critical. In our opinion, the
current portfolio of companies will continue to grow their earnings and provide
excellent returns to their shareholders in the long term.
[Picture of Tom Prappas]
CITIZENS GLOBAL EQUITY PORTFOLIO
(Sub-Adviser: Clemente Capital, Inc.)
Citizens Global Equity Portfolio had a slow start this year and trailed its
benchmark through 12/31/95. However, our strategy began to work well in the
second half and we finished the year with a total return of 12.52% for the
fiscal year ended June 30, 1996.
Our underperformance in the first half was due primarily to the fact that we
underweighted the United States during a time when the United States was
enjoying very strong financial markets. Our hesitation was caused by our concern
for the strength of the U.S. economic rebound and its implications for monetary
policy: If the U.S. Federal Reserve had chosen to raise rates, the stock
5
<PAGE>
Managers' Comments
market would have fallen sharply. Fortunately this did not happen - but our
caution caused us to miss out on some appreciation potential in the first part
of the year.
With the United States underweighted, we focused elsewhere in the world. The
core currency markets of Germany, the Netherlands and Belgium were most
overweighted. We underweighted the other markets, with the exception of Norway,
and overweighted Italy and Spain. The focus was on defensive stocks such as
telecom, media companies and interest rates sensitive issues.
[DATA OF LINE CHART]
12,500
12,000
11,500
11,000
10,500
10,000
9,500
9,000
February 8, 1994 June 30, 1994 June 30, 1995 June 30, 1996
Citizens Global Equity Portfolio
FT World US Dollar
Past performance is not indicative of future results. Standardized total return:
Citizens Global Equity, 1 year 12.52%, since inception 8.32%. Portfolio
commenced operations February 8, 1994.
This strategy paid off with some of our European picks displaying the best
performance over the period. Our top performers were Telecom Italia Mobile in
Italy (+90%), a provider of cellular communications, which was spun off from
Telecom Italia, the parent company, in July 1995. Barco NV (+75%), an
electronics component producer in Belgium, operating in niche markets in
visualization, automation and graphic systems. VNU (+59%) in the Netherlands, a
leading media company which was selling at a steep discount to its peer group
with strong earnings prospects. Bankinter, a very efficient medium size bank in
Spain with leading position in mortgage lending which we sold after a 48% gain.
We were less fortunate with some of our European holdings in France and Austria.
In France, Sidel, a producer of PET packaging equipment came short of market
expectations due to a sharp rise in PET prices in the lst quarter of 1995 which
reduced its order book by 30%.
In Asia we selected Japan (although not to the extent we would have liked due to
the lack of approved companies in our universe) as the weakening yen, fiscal
stimulus, and lower interest rates promised economic recovery and a pick up of
profits. Economically sensitive issues were pursued, along with beneficiaries of
the lower yen, and participants in Japan's retail sector restructuring.
Elsewhere in Asia we also found value: One of our best performing stocks was
found in the Philippines. Philippine National Bank, a restructuring story, gave
us a handsome return of 58%.
Looking to the new year we are striving to continue to build our list of
approved companies with an emphasis in Japan. Maintaining the flexibility to
move in and out of markets - as well as picking the right ones - remain the key
to our success.
<PAGE>
Working Assets Money Market Portfolio
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Bankers Acceptance: 4.28%
$4,000,000 American Express (Cost $ 3,978,760) 5.31% 8/6/96 $3,978,760 Consumer finance
----------
Commercial Paper: 80.55%
1,785,000 Allergan, Inc. 5.35% 8/13/96 1,773,593 Ophthalmic products
2,300,000 Allergan, Inc. 5.38% 8/20/96 2,282,814 Ophthalmic products
4,000,000 Aristar 5.42% 7/26/96 3,984,944 Banking
4,500,000 Banc One Corp 5.28% 7/19/96 4,488,120 Banking
1,200,000 Barnett Banks Inc. 5.37% 7/09/96 1,198,568 Banking
4,000,000 B.I. Funding Inc. 5.42% 7/31/96 3,981,933 Apparel
700,000 Consolidated Natural Gas Co. 5.32% 7/11/96 698,966 Natural gas
1,000,000 Cooperative Assoc. of Tractor Dealers 5.35% 8/06/96 994,650 Tractor dealer
3,000,000 Cooperative Assoc. of Tractor Dealers 5.37% 8/28/96 2,974,045 Tractor dealer
4,500,000 Countrywide Funding Corp. 5.43% 9/06/96 4,454,524 Mortgage lending
1,300,000 CPC International Inc. 5.30% 9/05/96 1,287,368 Food processing
2,000,000 CPC International Inc. 5.37% 9/24/96 1,974,642 Food processing
2,000,000 Dean Witter Discover Co. 5.33% 7/31/96 1,991,117 Consumer finance
2,500,000 John Hancock 5.33% 7/25/96 2,491,117 Insurance
4,600,000 Lehman Holdings 5.37% 7/08/96 4,595,197 Commercial finance
1,800,000 McGraw Hill Inc. 5.42% 10/16/96 1,771,003 Publishing
3,500,000 Nordstrom Cr Inc. 5.37% 7/11/96 3,494,779 Department stores
3,500,000 Pitney Bowes Cr Corp. 5.28% 9/13/96 3,462,013 Office equipment
4,000,000 Providian Corporation 5.35% 7/15/96 3,991,678 Life insurance
4,000,000 Rubbermaid Inc. 5.32% 7/16/96 3,991,133 Household products
3,600,000 Sonoco Prods. Co. 5.33% 7/16/96 3,592,005 Packaging products
2,300,000 Student Loan Corp. 5.26% 8/23/96 2,282,189 Student lending
4,500,000 Toys R Us Inc. 5.30% 7/26/96 4,483,438 Toy stores
600,000 US West Capital Fdg. Inc. 5.28% 7/17/96 598,592 Telecommunications
4,000,000 Whirlpool Corp. 5.30% 8/13/96 3,974,678 Household appliances
4,000,000 Xerox Credit Corp. 5.28% 7/26/96 3,985,333 Office equipment
----------
Total Commercial Paper 74,798,439
----------
(Cost $ 74,798,438)
Certificates of Deposit: 0.54%
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 5.07% 12/27/96 100,000 Community bank
100,000 Self Help Credit Union CD 5.60% 7/24/96 100,000 Credit union
----------
Total Certificates of Deposit 500,000
----------
(Cost $ 500,000)
U.S. Government Agencies: 7.46%
1,100,000 Federal National Mortgage Assn. 5.31% 8/26/96 1,090,923 Mortgage lending
5,835,000 Student Loan Marketing Assn. (b) 5.360% - 5.498% 7/19/96 - 11/20/97 5,833,618 Student lending
----------
Total U.S. Government Agencies 6,924,541
----------
(Cost $ 6,924,541)
Farmers Home Administration (b)(c): 0.22%
204,855 Variable Rate Notes (Cost $ 203,015) 7.520% - 7.647% (b) 203,015 Farm lending
----------
Small Business Administration (b)(d): 5.75%
5,267,595 Variable Rate Notes (Cost $5,342,874) 6.999%-9.725% (b) 5,342,874 Small business
---------- lending
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Working Assets Money Market Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Investments $98.80% $91,747,629
(Cost $ 91,747,629) (e)
Other assets, less liabilities 1.20% 1,117,384
------ -----------
NET ASSETS 100.00% $92,865,013
====== ===========
</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 11 notes. (e) Cost for federal income tax purposes is
the same.
Citizens Income Portfolio
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Principal Security Description Rate Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Corporate Bonds 76.47%
Amusements 10.77%
$1,000,000 J.Q. Hammons Hotel 8.875% 2/15/04 $943,750 Hotels
j39
1,000,000 Royal Caribbean 11.375% 5/15/02 1,063,750 Cruise/Leisure
1,400,000 Time Warner, Inc. 9.125% 1/15/13 1,469,524 Entertainment
---------
3,477,024
---------
Broadcasting & Communications 6.18%
200,000 Cablevision Inds. Corp. 10.75% 1/30/02 213,500 Cable television
1,000,000 Continental Cablevision 8.30%-10.625% 6/15/02-5/15/06 1,062,157 Cable television
750,000 Sullivan Broadcasting 10.250% 12/15/05 720,000 Television stations
---------
1,995,657
---------
Computer, Office & Business Equipment 4.91%
1,600,000 Corporate Express, Inc. 9.125% 3/15/04 1,584,000 Office Products
---------
Financial Services & Insurance 20.62%
775,000 Countrywide Funding Corporation Mtn. 6.875%-8.25% 7/15/02-9/15/05 771,323 Mortgage lending
1,665,070 DLJ Mortgage Acceptance Corp. 6.62%-6.875% 11/1/05-5/25/09 1,482,595 Mortgage lending
100,000 First Chicago NBD Corp. 7.250% 8/15/04 99,538 Regional banking
1,300,000 First Union Corporation 6.550% 10/15/35 1,244,295 Regional banking
1,150,000 Green Tree Financial Corp. 5.600% 4/15/19 370,856 Consumer lending
1,500,000 Lehman Brothers, Inc. 5.04%-8.05% 12/15/03-1/15/19 1,509,536 Financial services
50,000 MBIA Inc. 9.00% 2/15/01 53,878 Municipal bond
insurance
1,000,000 Secured Finance Dels 9.050% 12/15/04 1,122,940 Finance
---------
6,654,961
---------
Healthcare 11.74%
800,000 American Medical International 0.00% 8/12/97 735,184 Hospital management
1,000,000 Columbia/HCA Healthcare Corp. 7.69% 6/15/25 996,280 Hospital management
850,000 Community Health Systems 10.25% 11/30/03 931,813 Hospital management
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
Citizens Income Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Principal Security Description Rate Maturity Date Value (a) Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$50,000 Kaiser Foundation Hospitals 9.00% 11/01/01 $ 54,988 Hospitals
1,000,000 Quorum Health Group 8.75%-11.875% 12/15/02-11/01/05 1,071,250 Hospital management
-----------
3,789,515
-----------
Industrial 2.49%
750,000 MVE, Inc. 12.50% 2/15/02 802,500 Insulated
------------ containers
Real Estate 9.61%
1,000,000 Merry Land & Investment, Inc. 6.875% 11/1/03 964,780 Real estate
1,000,000 Property Trust of America 6.875% 2/15/08 920,740 Real Estate
500,000 Security Cap. Pac. Inc. 7.900% 2/15/16 477,145 Real Estate
800,000 Weingarten Realty 6.62% 12/11/07 741,616 Property management
-----------
3,104,281
-----------
Retail 10.15%
1,000,000 Hook Super X, Inc. 10.125% 6/1/02 1,068,750 Drugstores
1,000,000 Orchard Supply 9.375% 2/15/02 977,500 Hardware stores
800,000 Smiths Food and Drug 11.250% 5/15/07 810,000 Supermarkets
400,000 Vons Companies, Inc. 9.625% 4/01/02 418,500 Supermarkets
-----------
Total Corporate Bonds 24,682,688
-----------
(Cost $24,736,959)
Long Term U.S. Government Agencies 21.94%
1,600,000 Federal Home Loan Mortgage Corp. 6.80% - 8.75% 6/15/05-4/15/18 1,622,330 Mortgage lending
4,500,000 Federal National Mortgage Assn. 0% - 8.00% 7/25/06-1/25/24 3,602,465 Mortgage lending
3,865,000 Government National Mortgage Assn. 6.00% - 9.50% 4/15/07-6/15/23 1,856,626 Mortgage lending
-----------
Total Long Term U.S. Government
Agencies 7,081,421
-----------
(Cost $7,165,204)
Total Investments 98.41% 31,764,109
(Cost $ 31,902,163)(a)
Other assets, less liabilities 1.59% 511,743
----------- -----------
NET ASSETS 100.00% $32,275,852
=========== ===========
</TABLE>
Key: (a) Cost for federal income tax purposes is the same.
Citizens Index Portfolio
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equities 99.52%
Apparel & Textiles 0.67%
1,300 Brown Group Inc $ 22,588 Footwear
1,800 Gymboree Corp 54,900 Children's Clothing Retailer
2,300 Hartmarx Corp 14,375 Men's and Women's Clothing
5,900 Liz Claiborne 204,287 Women's Clothing
100 Oshkosh B'Gosh 1,800 Adult and Children's Clothing
5,900 Reebok International 198,388 Footwear
</TABLE>
9
See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1,300 Springs Industries Inc $ 65,650 Fabric
3,700 Stride Rite Corp 30,525 Footwear
5,000 VF Corp 298,125 Clothing
3,200 Warnaco Group Inc 82,400 Clothing
------------
973,038
------------
Banks 9.91%
8,900 Bank of Boston Corp 440,550 Regional Banking
6,000 Bankers Trust New York 443,250 Wholesale Banking
7,400 Barnett Banks Inc. 451,400 Regional Banking
13,300 Boatmens Bancshares 533,662 Regional Banking
17,300 Corestates Financial Corp 666,050 Regional Banking
27,384 First Chicago NBD Corp 1,071,399 Regional Banking
22,430 First Union Corp 1,365,426 Regional Banking
19,800 Keycorp 767,250 Regional Banking
10,600 Mellon Bank Corp 604,200 Regional Banking
17,200 National City Corp 604,150 Regional Banking
23,800 Nationsbank Corp 1,966,475 Regional Banking
29,700 Norwest Corp 1,035,788 Regional Banking
26,500 PNC Financial Corp 788,375 Regional Banking
18,200 Suntrust Banks Inc 673,400 Regional Banking
13,000 U.S. Bancorp 469,625 Regional Banking
13,100 Wachovia Corp 573,125 Regional Banking
7,800 Wells Fargo & Co 1,863,225 Regional Banking
------------
14,317,350
------------
Computer, Hardware & Business Equipment 7.37%
21,500 Amdahl Corp 231,125 Computers
9,300 Apple Computer Inc 195,300 Computers
44,100 Cisco Systems Inc 2,497,163 Computer Networks
20,800 Compaq Computer Corp 1,024,400 Computers
19,850 Computer Associates International Inc. 1,414,312 Computers
9,800 Dell Computer Corp 498,575 Computers
12,200 Digital Equipment Corp 549,000 Computers
5,500 Gateway 2000 Inc 187,000 Computers
16,500 Micron Technology Inc 426,937 Semiconductors
27,500 Novell Inc 381,563 Computer Networks
11,700 Pitney-Bowes Inc 558,675 Office Equipment
11,900 Silicon Graphics Inc 285,600 Visual Computing Systems
14,600 Sun Microsystems Inc 859,575 Computers
8,800 Tandem Computers Inc 108,900 Computers
26,700 Xerox Corp 1,428,450 Office Equipment
------------
10,646,575
------------
Construction and Housing 0.74%
3,000 Apogee Enterprises 102,750 Window Systems
2,800 Armstrong World 161,350 Interior Furnishings
2,100 Centex Corp 65,362 Homebuilder
12,200 Masco Corp 369,050 Interior Furnishings
2,100 Pulte Corp 56,175 Home Construction
3,500 Rouse Company 90,563 Property Management
6,800 Stanley Works 202,300 Hardware
1,300 TJ International Inc. 23,400 Composite Wood
------------
1,070,950
------------
</TABLE>
10 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Consumer Durables 0.42%
900 CasTech Aluminum Group Inc. $ 13,275 Aluminum
1,155 Harman International Industries 56,884 Audio and Video Products
8,100 Maytag Co 169,087 Appliances
2,800 Toro Co 92,750 Lawn Maintenance
5,500 Whirlpool Corp 272,938 Appliances
------------
604,934
------------
Electronics 8.42%
5,200 ADC Telecommunications 234,000 Telecommunications Networks
10,500 Advanced Micro Devices 143,062 Semiconductors
3,200 Altera Corp 121,600 Semiconductors
7,000 American Power Conversion 71,750 Electronic Connection Devices
16,100 AMP Inc 646,013 Electronic Connection Devices
10,300 Antec Corp 163,512 Optical Transmission Equipment
3,000 Avnet Inc 126,375 Electric Components
1,800 Belden Inc 54,000 Electronic Connection Devices
10,100 General Instrument Corp 291,638 Cable Supplier
3,700 Global Village Communication 30,525 Modems
41,100 Hewlett Packard Co 4,094,588 Electronic Equipment
65,900 Intel Corp 4,839,531 Microprocessors
7,475 Molex Inc 237,331 Electronic Connection Devices
3,700 National Service Industries 144,763 Lighting Equipment
3,100 Perkin-Elmer Corp 149,575 Analytical Instruments
2,200 Tektronix Inc 98,450 Electronic Equipment
3,000 Thomas & Betts Corp. 112,500 Electronic/Electrical Connectors
6,600 U S Robotics Corp 564,300 Communications Equipment
2,700 VLSI Technology 37,462 Semiconductors
------------
12,160,975
------------
Energy & Utilities 2.29%
15,400 Calenergy, Inc. 94,350 Geothermal Energy
7,100 Consolidated Natural Gas 370,975 Natural Gas
71,429 Energia Global (b)(c) 250,002 Energy prod. & conservation
20,100 Enron Corp 821,587 Natural Gas
78,200 Kenetech Corp 41,544 Alternative Energy
3,100 Landmark Graphics Co 59,675 Geoscience Software
4,000 Nicor Inc 113,500 Natural Gas
9,300 Noram Energy Corp 101,137 Natural Gas
7,500 Oneok Inc 187,500 Natural Gas
6,500 Pacific Enterprises 192,562 Natural Gas
2,600 Peoples Energy Corp 87,100 Natural Gas
6,600 Sonat Inc 297,000 Natural Gas
120,000 Vulcan Power Co (b)(c) 25,000 Geothermal energy
4,000 Western Atlas Inc 233,000 Oil Field Services
8,400 Williams Companies 415,800 Natural Gas
700 Yankee Energy Systems Inc 15,225 Natural Gas
------------
3,305,957
------------
Financial Services 5.91%
8,900 Ahmanson & Co, H.F. 240,300 Savings and Loan
39,300 American Express Co 1,753,763 Diversified Financial Services
3,900 Beneficial Corp 218,887 Consumer Finance
13,000 Dean Witter Discover 744,250 Consumer Finance
</TABLE>
See accompanying notes to financial statements. 11
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4,500 Edwards (A.G.) Inc $ 122,062 Brokerage
14,500 Federal Home Ln Mortgage Corp 1,239,750 Mortgage Lending
87,000 Federal Natl Mtg Assn 2,914,500 Mortgage Lending
4,600 Golden West Financial 257,600 Savings and Loan
10,100 Great Western Financial 241,138 Savings and Loan
17,100 MBNA Corp 487,350 Credit Cards
13,000 Charles Schwab Corp 318,500 Discount Broker
------------
8,538,100
------------
Food & Agriculture 12.27%
4,200 Ben & Jerry's Homemade 71,400 Ice cream
19,500 Campbell Soup Co 1,374,750 Food
100 Celestial Seasonings, Inc. 2,050 Herbal Teas
201,400 Coca Cola Co 9,843,425 Beverages
11,700 CPC International 842,400 Food Processing
7,000 Dial Corp 200,375 Food Services
11,500 General Mills Inc 626,750 Packaged Food
29,900 H J Heinz Co 908,212 Packaged Food
6,200 Hershey Foods Corp 454,925 Packaged Food
2,500 J M Smucker Co 49,063 Packaged Food
17,000 Kellogg Co 1,245,250 Packaged Food
150 Odwalla Inc 3,000 Fresh juices
10,300 Quaker Oats Co 351,487 Food and Beverage
700 Ringer Corp 1,663 Organic Pesticides
5,400 Supervalu Inc 170,100 Supermarkets/Food Dist.
14,700 Sysco Corp 503,475 Food Distributor
5,348 Tootsie Roll Inds 190,523 Packaged Food
8,000 Whitman Corp 193,000 Food and Beverage
5,400 Whole Foods Market Inc. 143,100 Supermarket
500 Wholesome & Hearty Foods 3,875 Vegetarian Foods
5,000 Worthington Foods Inc 86,250 Vegetarian Food
9,300 Wrigley Co 469,650 Chewing Gum
------------
17,734,723
------------
Health & Personal Care 8.58%
6,200 Alza Corp 169,725 Drug Delivery Systems
5,100 American Medical Response 179,775 Ambulance Service
10,800 Avon Products Inc 487,350 Personal Care Products
2,900 Bergen Brunswig Corp 80,475 Pharmaceutical Distribution
8,500 Biomet Inc 122,187 Medical Equipment and Supplies
1,400 Church & Dwight Inc 29,225 Baking Soda Products
10,600 Community Psychiatric Centers 100,700 Psychiatric Hospitals
2,400 Idexx Laboratories Corp 94,200 Animal Health
7,200 Invacare Corp 169,200 Medical Equipment and Supplies
4,700 Manor Care Inc 185,063 Healthcare Facilities
18,500 Medtronic Inc 1,036,000 Pacemakers
98,800 Merck & Co Inc 6,384,950 Pharmaceuticals
150 Natures Sunshine Products 3,825 Herbs and Vitamins
2,300 Owens & Minor Inc 26,737 Medical Supplies Distributor
2,900 Physician Corp of America 38,425 HMO
4,800 R.P. Scherer Corp 217,800 Drug Delivery Systems
29,400 Schering-Plough Corp 1,844,850 Pharmaceuticals
5,800 Sofamor/Danek Group 160,950 Spinal Implants
6,450 St Jude Medical Inc 216,075 Medical Equipment and Supplies
</TABLE>
12 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2,700 Sun Healthcare Group $ 38,475 Long Term Healthcare
1,300 Sunrise Medical Inc 25,025 Medical Equipment and Supplies
1,000 Target Therapeutics 41,000 Medical Equipment and Supplies
11,700 U.S. Healthcare 643,500 HMO
1,500 Ventritex Inc 25,688 Biomedical Devices
2,550 Vivra Inc 83,831 Home Healthcare
------------
12,405,031
------------
Industrial Products 2.64%
8,700 Air Products & Chemicals 502,425 Industrial Gases
2,100 Betz Laboratories Inc 92,137 Water Treatment
34,300 Minnesota Mining & Manufacturing 2,366,700 Multi-Industry
5,000 Nalco Chemical Co 157,500 Water Treatment
10,500 Praxair Inc 443,625 Industrial Gases
3,700 Sigma Aldrich Corp 197,950 Specialty Chemicals
2,500 Wellman Inc 58,438 Recycled Plastics
------------
3,818,775
------------
Insurance 2.98%
16,700 American General Corp. 607,463 Multi-Line Insurance
13,900 Chubb Corp. 693,263 Property and Casualty Insurance
6,300 General RE Corp. 959,175 Property and Casualty Insurance
5,400 Jefferson Pilot Corp. 278,775 Life Insurance
7,400 Providian Corp. 317,275 Life Insurance
9,200 Safeco Corp. 325,450 Property and Casualty Insurance
6,500 St. Paul Cos Inc. 347,750 Property and Casualty Insurance
5,700 Unum Corp 354,825 Multi-Line Insurance
11,600 USF&G Corp 189,950 Property and Casualty Insurance
7,150 USLIFE Corp 235,056 Life Insurance
------------
4,308,982
------------
Media 3.42%
17,500 Comcast Corp 323,750 Cable Networks
7,500 Dow Jones & Co 313,125 Publishing/Newspaper
2,700 King World Productions 98,213 Media/Production
3,700 Knight Ridder Inc 268,250 Publishing/Newspaper
7,600 McGraw-Hill Inc 347,700 Publishing
2,000 Meredith Corp 83,500 Publishing/Magazines
7,500 New York Times Co 244,687 Publishing/Newspapers
1,200 Scholastic Corp 74,400 Publishing/Educational
30,900 Time Warner Inc 1,212,825 Media/Production
8,500 Times Mirror Co 369,750 Publishing/Newspapers
15,600 Turner Broadcast Sys-Cl B 429,000 Television Network
30,200 Viacom Inc-Cl B 1,174,025 Media
------------
4,939,225
------------
Motor Vehicles 0.69%
3,000 Cummins Engine 121,125 Diesel Engines
800 Envirotest Systems Corp 2,200 Vehicle Emissions Testing
2,700 Federal-Mogul Corp 49,613 Engine/Transmission Products
3,500 Fleetwood Enterprises 108,500 Mobile Homes
9,400 Genuine Parts Inc 430,050 Auto Parts Distribution
5,800 Harley Davidson Inc 238,525 Motorcycles
900 SPX Corp 22,050 Auto Service Tools
1,200 Standard Products Co 27,900 Auto Parts
------------
999,963
------------
</TABLE>
See accompanying notes to financial statements. 13
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Non-Ferrous Metals 0.18%
10,950 Engelhard Corp $ 251,850 Engineered materials
800 IMCO Recycling Inc 14,400 Aluminum Recycling
------------
266,250
------------
Optical & Photo 0.16%
2,200 C-Cube Microsystems 72,600 Digital Imaging Circuits
3,500 Polaroid Corp 159,688 Photography Products
------------
232,288
------------
Paper & Forest Products 0.82%
10,000 Alco Standard Corp 452,500 Paper Distribution
1,900 Caraustar Industries Inc 50,350 Recycled Paperboard
3,300 Consolidated Papers Inc 171,600 Printing paper
10,900 Fort Howard Corp 216,638 Tissue Paper Products
3,000 Sealed Air Corp 100,875 Packaging
6,910 Sonoco Products Co 196,071 Recycled Paper Products
------------
1,188,034
------------
Producer Goods 3.15%
4,000 Avery-Dennison Corp 219,500 Office Products
2,500 Cincinnati Milacron Inc 60,000 Machine Tools
20,300 Deere & Co 812,000 Agricultural Equipment
1,400 Duriron Inc 33,600 Pumps and Valves
17,500 Emerson Electric Co 1,581,563 Commercial/Industrial Components
2,400 Fedders Corp 17,100 Air Conditioners
800 ICC Technologies Inc 4,700 Air Conditioners
1,400 Idex Corp 53,200 Pumps and Valves
8,700 Illinois Tool Works 588,337 Metal Components and Assemblies
1,000 Ionics Inc 47,000 Water Purification
8,700 Keystone International Inc 180,525 Pumps and Valves
1,800 Miller (Herman) Inc 55,125 Office Furniture
3,400 Millipore Corp 142,375 Fluid Analysis Products
1,300 Nordson Corp 73,450 Adhesive Application Systems
3,300 Raychem Corp 237,188 Electronic Components
300 Recovery Engineering Inc 3,975 Water Purification
3,200 Snap-On Tools Corp 151,600 Tools
1,600 Tecumseh Products 86,000 Compressors
200 Tennant Co 5,200 Floor Maintenance
2,300 Timken Co 89,125 Steel Bearings
3,000 Trinity Industries Inc 102,000 Metal Components
------------
4,543,563
------------
Recreation & Entertainment 1.40%
5,400 American Greetings Corp. 147,825 Greeting Cards
600 Bell Sports Corp 4,350 Bicycle Helmets
5,200 Callaway Golf Company 172,900 Golf Clubs
2,000 Coleman Inc 84,750 Camping Products
400 Fresh Choice Inc 2,800 Restaurants
3,500 Handleman Company 24,063 Entertainment Distribution
5,500 Harcourt General Inc 275,000 Publishing/Entertainment
6,600 Hasbro Inc 235,950 Toys
1,000 Huffy Corp 12,875 Bicycles
3,400 Jostens Inc 67,150 School Products
</TABLE>
14 See accompanying notes to financial statements.
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1,800 Luby's Cafeterias Inc $ 42,300 Restaurants
21,375 Mattel Inc 611,859 Toys
12,300 Rubbermaid Inc 335,175 Household Products
------------
2,016,997
------------
Services 0.38%
15,400 CUC International 546,700 Consumer Services
------------
Retail 6.98%
2,200 Barnes & Nobles Inc 78,925 Bookstores
7,800 Bruno's Inc 108,225 Supermarkets
11,800 Charming Shoppes Inc. 83,337 Apparel Retailer
7,300 Circuit City Stores 263,712 Electronics Retailer
15,800 Federated Department Stores, Inc. 539,175 Department Stores
22,200 Gap Inc 713,175 Apparel Retailer
4,400 Giant Food Inc 157,850 Supermarkets
2,900 Great Atlantic & Pacific Tea 95,338 Supermarkets
3,100 Hannaford Brothers Co 101,137 Supermarkets
9,400 Kroger Corp 371,300 Supermarkets
26,100 Limited Inc 561,150 Apparel Retailer
1,500 Longs Drug Stores 66,938 Drug Stores
14,000 Lowe's Companies Inc 505,750 Retail/Hardware
19,900 May Department Stores 870,625 Department Stores
8,100 Melville Corp 328,050 Drug Stores
6,200 Nordstrom Inc 275,900 Department Stores
17,800 J.C. Penney Co 934,500 Department Stores
2,896 Payless Shoesource, Inc. 91,948 Shoe Retailer
14,200 Price Costco Inc. 307,075 Wholesale Stores
6,400 Rite Aid Corp 190,400 Drug Stores
31,200 Sears Roebuck & Co 1,517,100 Department Stores
5,600 Tandy Corp. 265,300 Electronic Retailer
5,300 TJX Companies Inc 178,875 Apparel Retailer
21,200 Toys R Us 604,200 Toy Stores
19,600 Walgreen Co 656,600 Drug Stores
9,700 Woolworth Corp 218,250 General/Specialty Retailer
------------
10,084,835
------------
Software & Data Processing 7.17%
5,300 Adobe Systems Inc 190,138 Desktop Publishing Systems
6,400 America Online Inc 280,000 On-Line Computer Services
3,500 Autodesk Inc 104,562 Design Automation Software
23,200 Automatic Data Processing 896,100 Data Processing
8,000 Block H & R Inc 261,000 Information processing
1,500 Broderbund Software 48,375 Educational and Business Software
8,200 Davidson & Associates Inc 246,000 Educational Software
6,200 Deluxe Check Corp. 220,100 Data Processing
1,100 Dialogic Corp 65,588 Call Processing
13,600 Dun & Bradstreet Corp 850,000 Information Services
2,300 Harland John H Company 56,637 Check Printing
47,900 Microsoft Corp 5,753,988 Computer Software
7,500 Moore Corp Limited 141,562 Business Forms
10,200 Network General Corp 219,300 Business Software
10,100 Parametric Technology 438,088 Design Software
5,200 Qualcomm Inc 276,250 Wireless Communication Software
1,700 Shared Medical Systems Corp 109,225 Data Processing
1,800 Stratus Computer Inc 52,200 On-Line Computer Services
</TABLE>
See accompanying notes to financial statements. 15
<PAGE>
Citizens Index Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5,100 Sybase Inc $ 120,487 Business Software
2,800 Symantec Corp 35,000 Programming Utilities
------------
10,364,600
------------
Steel 0.41%
3,300 Inland Steel Industries 64,762 Steel
7,700 Nucor Corp 389,812 Steel
6,700 Worthington Industries Inc 139,862 Steel
------------
594,436
------------
Telephone 11.60%
39,500 Airtouch Communications 1,115,875 Cellular Telephone
13,800 Alltel Corp 424,350 Telecommunications
44,800 Ameritech Corp 2,660,000 Telephone Regional Bell Company
34,900 Bell Atlantic Corp 2,224,875 Telephone Regional Bell Company
79,800 Bellsouth Corp 3,381,525 Telephone Regional Bell Company
11,300 Mobile Telecom Tech 165,262 Wireless Data Communications
34,400 Pacific Telesis Group 1,161,000 Telephone Regional Bell Company
48,400 SBC Communications Inc 2,383,700 Telephone Regional Bell Company
7,200 Tellabs Inc 481,500 Voice and Data Networking Products
74,600 U.S. West Inc 1,876,475 Telephone Regional Bell Company
16,000 Worldcom, Inc. 886,000 Telecommunications
------------
16,760,562
------------
Tires & Rubber 0.16%
2,000 Bandag Inc 96,000 Tire Retread Equipment
6,200 Cooper Tire & Rubber 137,950 Tires
------------
233,950
------------
Transportation 0.80%
2,900 Caliber Systems Inc. 98,600 Transportation and Logistics Services
5,100 Federal Express Corp 418,200 Overnight Delivery
4,650 Illinois Central Corp 131,944 Regional Railroad
1,700 Roadway Services Inc 24,012 Trucking
5,800 Ryder System Inc 163,125 Truck Rental
10,900 Southwest Airlines 317,462 Regional Airline
------------
1,153,343
------------
Total Equities (Cost $ 115,517,115 ) 143,810,136
------------
Total Investments 99.52%
(Cost $ 115,517,115 )(a) 143,810,136
Other assets, less liabilities 0.48% 693,842
------ ------------
NET ASSETS 100.00% $144,503,978
====== ============
</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 - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equities 62.66%
Apparel & Textiles 3.00%
17,400 Kenneth Cole Productions Inc. (b) $ 343,650 Footwear
11,600 Gucci Group NV (b) 748,200 Apparel and accessories
------------
1,091,850
------------
Broadcasting & Communications 9.06%
14,800 Cincinnati Bell Inc. 771,450 Telephone company
3,200 Clear Channel Communications (b) 263,600 Broadcasting
13,990 Evergreen Media Corp. (b) 598,073 Radio stations
10,000 HBO & Co. 677,500 Information systems & technology
30,000 Paxson Communications Corp. (b) 318,750 Television stations
10,000 Tellabs, Inc. (b) 668,750 Voice and Data Networking Products
------------
3,298,123
------------
Computer, Office & Business Equipment 17.79%
23,565 Cadence Design Systems Inc. (b) 795,319 Software
25,720 Checkpoint Systems, Inc. (b) 884,125 Electronic Surveillance Systems
18,000 Corporate Express Inc. (b) 720,000 Office products supplier
11,700 Danka Business Systems 342,225 Office Equipment
25,000 Data Documents Inc. Del (b) 306,250 Business forms
10,000 Dell Computer Corp. (b) 508,750 Computers
12,500 Macromedia (b) 273,437 Software
5,000 Microsoft Corp. 600,625 Computer software
18,600 Sterling Comm. Inc. (b) 690,525 Software
12,300 Sun Microsystems Inc. (b) 724,162 Computers
7,400 U.S. Robotics Corp. (b) 632,700 Data communications products
------------
6,478,118
------------
Construction & Housing 1.97%
10,260 HFS, Inc. (b) 718,200 Hotel franchise
------------
Financial Services & Insurance 6.09%
26,000 Charles Schwab Corp. 637,000 Discount broker
31,300 Checkfree Corp. (b) 622,088 Electronic commerce services
33,435 PMTServices Inc. (b) 957,077 Credit and authorization systems
------------
2,216,165
------------
Healthcare 12.30%
19,700 Amerisource Health Co. (b) 655,025 Drug wholesaler
33,700 Amisys Managed Care Sys. Inc. (b) 867,775 Healthcare information systems
30,000 Envoy Corp. New (b) 877,500 Electronic transaction processing
13,000 Express Scripts (b) 598,000 Managed care
20,200 Matrix Pharmaceuticals (b) 363,600 Drug delivery systems
1,850 Meridian Diagnostic 28,328 Immuno diagnostic test kits
12,675 Phycor Inc. (b) 481,650 Medical clinic management
16,000 Watson Pharmaceuticals Inc. (b) 606,000 Pharmaceuticals
------------
4,477,878
------------
Industrial 2.51%
13,400 BMC Industries 914,250 Multi-industry
------------
</TABLE>
See accompanying notes to financial statements. 17
<PAGE>
Citizens Emerging Growth Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Retailers 3.44%
23,300 Orchard Supply Hardware (b) $ 701,913 Hardware stores
16,170 Saks Holding, Inc. (b) 551,801 Apparel and accessory stores
------------
1,253,714
------------
Services 4.92%
6,750 Accustaff, Inc. 183,937 Employment agency
15,000 Alternative Res. Corp. (b) 551,250 Employment agency
15,700 Corestaff, Inc. (b) 702,575 Employment agency
10,000 Outdoor Systems, Inc. (b) 352,500 Advertising
------------
1,790,262
------------
Transportation 1.58%
10,000 Atlas Air, Inc. (b) 575,000 Air transportation
------------
Total Equities 22,813,560
------------
(Cost $ 20,990,868)
Index Options 23.15%
2,400 S&P 500 Sept. 675 Call 4,200,000
2,400 S&P 500 Sept. 680 Put 4,230,000
------------
Total Index Options 8,430,000
------------
(Cost $10,665,360)
Total Investments 85.81% 31,243,560
(Cost $ 31,656,228) (a)
Other assets, less liabilities 14.19% 5,165,717
NET ASSETS 100.00% $36,4005,277
====== ============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Non-income
producing security.
<TABLE>
<CAPTION>
Index Options written at 6/30/96
- ----------------------------------------------------------------------------------------
Shares Subject
Index/Expiration Date/Excise Price To Call/Put Market Value
- ----------------------------------------------------------------------------------------
<S> <C> <C>
S&P 500/Sept/675/Put 2,400 $3,720,000
S&P 500/Sept/680/Call 2,400 3,510,000
----------
Total (premiums received $9,473,684) $7,230,000
==========
</TABLE>
Citizens Global Equity Portfolio
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equities 84.83%
Belgium 2.25%
2,186 Barco N.V. (Barco Industries) 350,274 Technologies
------------
Canada 1.69%
17,200 Royal Plastics (b) 263,236 Building materials
------------
</TABLE>
18 See accompanying notes to financial statements.
<PAGE>
Citizens Global Equity Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
France 5.18%
825 Ecco Ste $ 207,528 Employment services
2,000 Legrand 358,191 Misc. manufacturing
265 Salomon SA 242,192 Ski bindings
------------
807,911
------------
Germany 1.85%
1,950 SAP AG 289,142 Software
------------
Great Britain 4.47%
16,000 Reed International 267,627 Publishing
35,500 Reuters Holdings 429,696 Media
------------
697,323
------------
Hong Kong 1.64%
150,000 HongKong and Shanghai Hotels Ltd. 255,797 Construction
------------
Ireland 3.89%
45,000 Bank of Ireland 306,794 Banking
65,750 Independent Newspapers PLC 299,365 Media
------------
606,159
------------
Italy 5.27%
20,000 Arn Mondadori Edit 151,342 Publishing
11,200 Bvlgari Spa 179,001 Watches and jewelry
112,000 Telecom Italia Mo B 250,236 Telecommunications
112,000 Telecom Italia 240,738 Telecommunications
------------
821,317
------------
Japan 12.26%
16,000 Canon Inc. 332,599 Business equipment
6,200 Familymart Co. 275,853 Convenience stores
6,000 Ito-Yokado Co. 361,592 Retail stores
26,000 NEC Corp. 282,090 Electronic products
25,000 Sumitomo Marine & Fire 217,676 Insurance
4,000 TDK Corp. 238,509 Electronic components
7,000 Tokyo Electronics 203,590 Semiconductors
------------
1,911,909
------------
Netherlands 4.35%
3,927 Aegon NV 180,824 Insurance
4,500 Polygram 265,733 Music
15,000 Ver Ned Uitgevers 232,868 Media
------------
679,425
------------
Norway 2.60%
40,000 Tomra Systems 406,383 Recycling vending machines
------------
Philippines 3.53%
370,000 C&P Homes Inc. 321,289 Home builder
150,000 Pilipino Telephone (b) 229,015 Telecommunications
------------
550,304
------------
Portugal 1.00%
6,000 Portugal Telecom (b) 156,725 Telecommunications
------------
</TABLE>
See accompanying notes to financial statements. 19
<PAGE>
Citizens Global Equity Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Share Security Description Value Primary Products/
Amount (Note 1) Line of Trade
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Singapore 3.21%
55,000 DBS Land $ 188,601 Real Estate
25,000 Development Bank of Singapore, Ltd. 311,738 Development bank
------------
500,339
------------
Spain 5.50%
5,000 Aguas De Barcelona 185,632 Water management
4,500 BCO Santander SA 209,889 Banking
2,200 Gas Natural SDG SA 461,583 Natural gas
------------
857,104
------------
United States 26.14%
4,200 Banco Latinoamericano de Exportaciones 236,250 Bank
3,000 Computer Assoc. International Inc. 213,750 Computers
4,700 Deere & Co. 188,000 Agricultural equipment
4,700 Enron Corporation 192,112 Natural gas
10,000 Group Industrial Maseca SA ADR 157,500 Corn flour
3,600 Home Depot Inc 194,400 Home supply retailer
6,000 Intel Corp. 440,625 Microprocessors
12,000 Kenneth Cole Productions Inc (b) 237,000 Footwear
3,000 Luxottica Group ADR 220,125 Eyeglass frames
6,500 Merck & Co., Inc. 420,062 Pharmaceuticals
6,000 Perusahaan Perseroan ADR 201,000 Telecommunications
6,600 Southwest Airlines Co. 192,225 Regional airline
3,500 Sun Microsystems Inc. (b) 206,063 Computers
5,000 Suntrust Banks Inc. 185,000 Commercial bank
8,200 Telecomunicacoes Brasileiras ADR 570,925 Telecommunications
4,000 Worldcom, Inc. (b) 221,500 Telecommunications
------------
4,076,537
------------
Total Investments 84.83% 13,229,885
------------
(Cost $ 10,815,956) (a)
Other assets, less liabilities 15.17% 2,365,448
------------
NET ASSETS 100.00% $ 15,595,333
============
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Non-income
producing security.
Muir California Tax Free Income Portfolio
Statement of Investments - June 30, 1996
<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 95.27%
Environmental 55.95%
$250,000 California State General Obligation 5.10% 10/1/08 $244,193 General obligation A+
500,000 East Bay, California, Municipal Utility District 001 5.00% 4/1/15 450,375 Sewer improvement AA
540,000 East Bay, California, Regional Park District,
Series C, FGIC 5.50% 9/1/08 543,433 Parks AAA
500,000 Fairfield, California, Water Revenue, AMBAC 5.375% 4/1/17 472,200 Water AAA
440,000 Kings County, California, Waste Management AMT 6.00% 10/1/99 455,579 Materials recovery BBB+
500,000 Los Angeles County, California, Public Works
Financing Revenue, Regional Park & Open Space 6.00% 10/1/15 501,843 Parks AA
500,000 Metropolitan Waterworks Revenue, California, MBIA 5.00% 7/1/13 459,155 Water AAA
300,000 Ontario, California, Redevelopment Financing
Authority, Project No. 1, MBIA 6.95% 8/1/11 342,197 Redevelopment AAA
</TABLE>
20 See accompanying notes to financial statements.
<PAGE>
Muir California Tax Free Income Portfolio (continued)
Statement of Investments - June 30, 1996
<TABLE>
<CAPTION>
Principal Security Description Yield Maturity Value Purpose Rating
Amount Date (Note 1) (b)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$515,000 Pasadena, California, Water Revenue 5.00% 7/1/18 $ 455,395 Water AA-
500,000 Rancho, California, Water District
Financing Authority, FGIC 6.50% 11/1/05 551,073 Water AA-
500,000 San Diego, Open Space Park Facilities 5.75% 1/1/07 516,629 Parks AAA
600,000 Santa Margarita, Dana Point Authority,
California Refunding, AMBAC 5.375% 7/1/14 573,982 Sewer AA+
650,000 Southern California Rapid Transit
Revenue, AMBAC 5.75% 9/1/05 682,056 Public transit AAA
500,000 Southgate California Public Financing
Revenue, FGIC 5.375% 10/1/09 490,900 Water AAA
625,000 Vista, California, Community Development, MBIA 6.00% 9/1/10 657,951 Redevelopment AAA
-----------
7,396,961
-----------
Affordable Housing 17.78%
5,000 Barstow, California, Multifamily Housing
Revenue, Villa Vista 9.875% 12/1/96 5,042 Multi-family housing A-
745,000 California Housing Finance Agency Revenue 6.00% 2/1/05 777,962 Single-family housing AA-
500,000 California Housing Finance Agency Revenue,
Home Mortgage Series E-1 5.40% 8/1/00 510,443 Single-family housing AA-
385,000 California Housing Finance Agency Revenue 7.35% 2/1/00 402,929 Single-family housing AA-
100,000 California State Vet. General Obligation 7.25% 4/1/07 101,583 Housing A+
10,000 Los Angeles, California, Single Family
Home Mortgage Revenue 6.75% 6/1/05 10,578 Single-family housing AAA-
40,000 Riverside County, California, Single Family Revenue 6.85% 10/1/16 41,148 Single-family housing AAA
500,000 Thousand Oaks, California, Redevelopment
Agency, SFMR-GNMA 5.50% 12/1/10 500,816 Single-family housing AAA
-----------
2,350,501
-----------
Education and Health 21.54%
220,000 Arcadia, California, Unified School District FGIC 5.45% 7/1/08 221,629 Schools AAA
500,000 John C. Fremont Hospital District 6.00% 6/1/04 515,536 Hospital A
250,000 Madera County, California, Common Trust
Funds, Valley Childrens Hospital, MBIA 6.50% 3/15/10 274,844 Hospital AAA
500,000 Oakland California Museum, COP, AMBAC 6.25% 4/1/05 536,728 Museum AAA
275,000 Oak Park, California, School District MBIA 5.35% 5/1/09 273,214 Schools AAA
500,000 University of California Revenue Bonds,
Multiple Purpose Projects, MBIA 6.875% 9/1/16 565,032 University AAA
500,000 University of California Revenue Bonds,
Multiple Purpose Projects, C-AMBAC 5.25% 9/1/16 461,915 University AAA
-----------
2,848,898
-----------
Total Municipal Securities (Cost $ 12,543,552) 12,596,360
-----------
Short Term Investments 2.34%
21,887 Goldman Sachs ITA California 21,887 Mutual fund
287,085 Provident California Money Market Fund 287,085 Mutual fund
-----------
Total Short Term Investments (Cost $ 308,972) 308,972
-----------
Total Investments 97.61% 12,905,332
(Cost $ 12,852,524) (a)
Other assets, less liabilities 2.39% 315,934
-----------
NET ASSETS 100.00% $13,221,266
===========
</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.
See accompanying notes to financial statements. 21
<PAGE>
E [bullet] fund
Statement of Investments - June 30, 1996
<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: 83.36%
$450,000 Allergan, Inc. 5.32%-5.38% 7/30/96-8/20/96 $ 446,905 Ophthalmic
500,000 Aristar 5.42% 7/26/96 498,118 Banking products
350,000 Banc One Corp 5.28% 7/19/96 349,076 Banking products
460,000 Barnett Banks Inc. 5.37% 7/09/96 459,451 Regional banking
100,000 Bellsouth Telecomm Inc. 5.28% 7/19/96 99,736 Telephone company
500,000 B.I. Funding Inc. 5.42% 7/31/96 497,742 Apparel
250,000 Conag Finance 5.39% 7/02/96 249,963 Natural gas
350,000 Consolidated Natural Gas Co. 5.32% 7/11/96 349,483 Natural gas
400,000 Cooperative Assoc. of Tractor Dealers 5.35% 8/02/96 398,098 Tractor dealer
450,000 Countrywide Funding Corp. 5.43% 9/06/96 445,452 Mortgage lending
300,000 CPC International Inc. 5.30% 9/24/96 296,246 Food processing
450,000 Dean Witter Discover Co. 5.33% 7/31/96 448,001 Consumer finance
400,000 Harley Davidson Dealer FDG 5.34% 7/11/96 399,407 Motorcycles
160,000 Home Depot (The) 5.45% 7/01/96 160,000 Retail stores
200,000 Idaho Power 5.38% 7/29/96 199,163 Energy
100,000 J.C. Penney 5.40% 7/11/96 99,850 Department store
375,000 John Hancock 5.33% 7/25/96 373,667 Insurance
330,000 Lehman Holdings 5.37% 7/08/96 329,655 Commercial finance
450,000 McGraw Hill Inc. 5.42% 10/16/96 442,751 Publishing
500,000 Nordstrom Cr Inc. 5.35% 7/16/96 498,885 Department stores
350,000 Pitney Bowes Cr Corp. 5.28% 9/13/96 346,201 Office equipment
350,000 Rubbermaid Inc. 5.32% 7/16/96 349,224 Household products
400,000 Sonoco Prods. Co. 5.33% 7/16/96 399,112 Recycled paper products
305,000 Stanley Works 5.29% 7/25/96 303,924 Hardware
450,000 Toys R Us Inc. 5.30% 7/26/96 448,344 Toy stores
350,000 US West Capital Fdg. Inc. 5.28% 7/17/96 349,179 Telecommunications
-----------
Total Commercial Paper (Cost $ 9,237,633) 9,237,633
-----------
Certificates of Deposit: 0.90%
100,000 South Shore Bank (Cost $ 100,000) 5.35% 12/15/96 100,000 Community bank
-----------
U.S. Government Agencies: 6.36%
210,000 Federal Home Loan Bank 5.30% 7/29/96 209,134 Mortgage lending
500,000 Federal National Mortgage Assn. 5.305% 8/26/96 495,874 Mortgage lending
-----------
Total U.S. Government Agencies
(Cost $ 705,008) 705,008
-----------
Small Business Administration (b)(c): 3.20%
351,276 Variable Rate Notes (Cost $ 354,602) 7.0%-9.376% (b) 354,602 Small business lending
-----------
Total Investments 93.82% 10,397,243
(Cost $ 10,397,243) (e)
Other assets, less liabilities 6.18% 684,979
-----------
NET ASSETS 100.00% $11,082,222
====== ===========
</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 6 notes.
22 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Assets and Liabilities -June 30, 1996
<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 $91,747,629 $31,902,163 $115,517,115
and $31,656,228 respectively) (Note 1) $91,747,629 $31,764,109 $143,810,136 $31,243,560
Cash 1,383,920 596,451 507,280 11,683,459
Receivable for:
Interest 282,248 501,733 - -
Dividends - - 211,898 1,494
Fund shares sold 317,955 2,554 80,401 728,886
Investment securities sold - - - -
SBA principal paydowns 134,808 - - -
Deferred organization costs (Note 1) 23,381 13,975 43,590 11,928
Other assets 53,959 35,323 - 33,177
----------- ---------- ------------ -----------
Total Assets 93,943,900 32,914,145 144,653,305 43,702,504
----------- ---------- ------------ -----------
LIABILITIES
Payables:
Investment securities purchased - 540,634 38,348 -
Capital shares redeemed 998,028 12,078 30,850 11,516
Distributions 3,755 26,370 - -
Call options written (premiums received $9,473,684) - - - 7,230,000
Accrued expenses 64,035 30,877 76,965 39,233
Due to investment adviser 13,069 28,334 3,164 12,478
----------- ---------- ------------ -----------
Total Liabilities 1,078,887 638,293 149,327 7,293,227
----------- ---------- ------------ -----------
NET ASSETS $92,865,013 $32,275,852 $144,503,978 $36,409,277
=========== ========== ============ ===========
Retail Shares
Net assets $ 78,326,048 $ 32,275,852 $136,980,167 $36,409,277
Shares outstanding 78,326,048 3,140,161 10,211,416 2,448,943
Net asset value, offering and
redemption price per share $1.00 $10.28 $13.41 $14.87
=========== ========== ============ ===========
Institutional Shares
Net assets $ 14,538,965 - $ 7,523,811 -
Shares outstanding 14,538,965 - 683,733 -
Net asset value, offering and redemption price per share $1.00 - $11.00 -
=========== ========== ============ ===========
NET ASSETS
At June 30, 1996 net assets consisted of:
Paid-in capital $92,865,013 $32,845,364 $115,183,733 $30,184,553
Undistributed net investment income - - 690,075 -
Accumulated realized gain (loss) - (431,458) 337,149 4,393,708
Net unrealized appreciation (depreciation) of investments - (138,054) 28,293,021 1,831,016
----------- ---------- ------------ -----------
$92,865,013 $32,275,852 $144,503,978 $36,409,277
=========== ========== ============ ===========
</TABLE>
See accompanying notes to financial statements. 23
<PAGE>
Citizens Trust
Statement of Assets and Liabilities - June 30, 1996
<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 $10,815,956 ; $12,852,524 ;
and $10,397,243 respectively) (Note 1) $13,229,885 $12,905,332 $10,397,243
Cash (including foreign currencies) 2,784,116 - 283,888
Receivable for:
Interest - 246,247 21,413
Dividends 42,877 -
Fund shares sold 8,469 531 228,856
Investment securities sold - - -
SBA principal paydowns - - 54,018
Due from investment adviser - - -
Deferred organization costs (Note 1) 11,928 63,691 178,427
Prepaid expenses and others 26,298 42,396 33,111
----------- ----------- -----------
Total Assets 16,103,573 13,258,197 11,196,956
----------- ----------- -----------
LIABILITIES
Payables:
Investment securities purchased 457,551 - -
Capital shares redeemed 8,654 6,132 110,938
Distributions - 6,556 2,680
Accrued expenses 39,429 24,243 1,116
Due to investment adviser 2,606 - -
----------- ----------- -----------
Total Liabilities 508,240 36,931 114,734
----------- ----------- -----------
NET ASSETS
Applicable to 1,311,458 ; 845,278 and
11,082,222 outstanding shares, respectively $15,595,333 $13,221,266 $11,082,222
=========== =========== ===========
Net asset value, offering and redemption
price per share $11.89 $15.64 $1.00
=========== =========== ===========
NET ASSETS
At June 30, 1996 net assets consisted of:
Paid-in capital $13,468,311 $13,704,783 $11,082,222
Accumulated realized gain (loss) of
investments and foreign currencies (285,977) (536,326) -
Net unrealized appreciation of
investments and foreign currencies 2,412,999 52,809 -
----------- ----------- -----------
$15,595,333 $13,221,266 $11,082,222
=========== =========== ===========
</TABLE>
24 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Operations - Year Ended June 30, 1996
<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 $ 5,518,126 $ 2,436,440 $ 18,406 $ 51,519
Dividends -- -- 3,074,950 23,134
------------ ------------ ------------ ------------
Total investment income 5,518,126 2,436,440 3,093,356 74,653
------------ ------------ ------------ ------------
Expenses
Investment management fees (Note 2) 423,731 207,386 689,466 197,492
Transfer agent fees 193,037 35,706 187,224 29,787
Custody and accounting fees 37,846 20,964 53,379 22,287
Distribution expense (Note 2) 182,653 79,764 273,219 49,373
Administration expense (Note 2) 186,145 74,254 903,081 117,910
Legal and audit fees 23,974 10,714 41,128 5,802
Registration fees 17,626 13,178 20,784 12,063
Trustees' fees and expenses 5,221 5,207 7,665 5,207
Printing and postage 54,911 14,148 54,906 14,326
Dues 5,133 1,981 6,659 1,300
Insurance 1,826 281 1,599 255
Amortization of organization costs -- 6,500 7,806 4,500
------------ ------------ ------------ ------------
Total expenses 1,132,103 470,083 2,246,916 460,302
Fee Reductions (Note 6) (29,137) (16,347) (38,487) (16,643)
Reimbursement by Adviser (Note 2) -- (13,086) -- (47,125)
------------ ------------ ------------ ------------
Net expenses 1,102,966 440,650 2,208,429 396,534
------------ ------------ ------------ ------------
Net investment income (loss) 4,415,160 1,995,790 884,927 (321,881)
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
Realized gain (loss) on investments -- 53,207 337,150 5,895,322
Increase in unrealized
appreciation on investments -- (422,710) 24,446,708 1,140,522
------------ ------------ ------------ ------------
Net realized and unrealized gain
on investments -- (369,503) 24,783,858 7,035,844
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations $ 4,415,160 $ 1,626,287 $ 25,668,785 $ 6,713,963
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements. 25
<PAGE>
Citizens Trust
Statement of Operations - Year Ended June 30, 1996
<TABLE>
<CAPTION>
Muir California
Citizens Tax-Free
Global Equity Income
Portfolio Portfolio E[bullet]fund
----------- ----------- -----------
<S> <C> <C> <C>
Income
Interest $ 46,954 $ 790,029 $ 222,553
Dividends 135,395 _ _
Other income (Note 2) _ _ 16,057
----------- ----------- -----------
Total income 182,349 790,029 238,610
----------- ----------- -----------
Expenses
Investment management fees (Note 2) 118,662 94,344 4,018
Transfer agent fees 26,913 25,798 1,076
Custody and accounting fees 42,630 35,412 6,930
Distribution expense (Note 2) 29,666 36,286 _
Administration expense (Note 2) 68,745 28,658 6,931
Legal and audit fees 3,922 5,171 14,035
Registration fees 11,563 417 1,755
Trustees' fees and expenses 5,207 5,207 1,350
Printing and postage 11,310 14,173 11,105
Dues 837 964 242
Insurance 215 1,278 _
Amortization of organization costs 4,500 23,800 13,951
----------- ----------- -----------
Total expenses 324,170 271,508 61,393
Fee reductions (Note 6) (21,678) (14,903) (6,720)
Reimbursement by Adviser (Note 2) _ (45,402) (54,673)
----------- ----------- -----------
Net expenses 302,492 211,203 _
----------- ----------- -----------
Net income (loss) (120,143) 578,826 238,610
----------- ----------- -----------
Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions
Realized gain (loss) on investments
and foreign currency transactions (271,000 175,608 _
Increase in unrealized
appreciation on investments and
foreign currencies 1,867,659 (53,230) _
----------- ----------- -----------
Net realized and unrealized gain on
investments and foreign currencies 1,596,659 122,378 _
Net increase in net assets
----------- ----------- -----------
resulting from operations $ 1,476,516 $ 701,204 $ 238,610
=========== =========== ===========
</TABLE>
26 See accompanying notes to financial statements.
<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
year ended year ended year ended year ended
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 4,415,160 $ 4,479,491 $ 1,995,790 $ 1,674,276
Realized gain (loss) on investments _ _ 53,207 (484,665)
Unrealized appreciation (depreciation)
of investments _ _ (422,710) 1,405,185
Change in net assets from
------------- ------------- ------------- -------------
investment activities 4,415,160 4,479,491 1,626,287 2,594,796
------------- ------------- ------------- -------------
Distributions to shareholders from:
Net investment income-Retail (4,158,569) (4,479,491) (1,995,790) (1,674,963)
Net investment income-Institutional (256,591) _ _ -
Net realized gain on investments-Retail _ _ _ (43,006)
Total distributions (4,415,160) (4,479,491) (1,995,790) (1,717,969)
------------- ------------- ------------- -------------
Increase (decrease) in net assets
resulting from capital share
transactions (Note 5) (4,746,296) (6,155,104) 2,523,000 4,835,278
------------- ------------- ------------- -------------
Total increase (decrease) in net assets (4,746,296) (6,155,104) 2,153,497 5,712,105
Net Assets
Beginning of year 97,611,309 103,766,413 30,122,355 24,410,250
------------- ------------- ------------- -------------
End of year $ 92,865,013 $ 97,611,309 $ 32,275,852 $ 30,122,355
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements. 27
<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
year ended period ended year ended year ended
June 30, 1996 June 30, 1995* June 30, 1996 June 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) $ 884,927 $ 95,086 ($ 321,881) $ 36,416
Realized gain (loss) on investments 337,150 535,007 5,895,322 825,127
Unrealized appreciation (depreciation)
of investments 24,446,708 3,615,754 1,140,522 686,690
------------- ------------ ------------ -----------
Change in net assets from
investment activities 25,668,785 4,245,847 6,713,963 1,548,233
------------- ------------ ------------ -----------
Distributions to shareholders from:
Net investment income-Retail (289,938) _ _ (41,305)
Net realized gain on investments-Retail (535,008) _ (1,851,960) (151,326)
------------- ------------ ------------ -----------
Total distributions (824,946) _ (1,851,960) (192,631)
------------- ------------ ------------ -----------
Increase in net assets resulting from
capital share transactions (Note 5) 13,564,332 101,849,960 20,909,575 5,527,994
------------- ------------ ------------ -----------
Total increase in net assets 38,408,171 106,095,807 25,771,578 6,883,596
Net Assets
Beginning of year 106,095,807 _ 10,637,699 3,754,103
------------- ------------ ------------ -----------
End of year $ 144,503,978 $106,095,807 $ 36,409,277 $10,637,699
============= ============ ============ ===========
Undistributed net investment income
End of year $ 690,075 $ 95,086 _ _
============= ============ ============ ===========
</TABLE>
* Commencement of operations March 3, 1995
28 See accompanying notes to financial statements.
<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
year ended year ended year ended year ended
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations
Net investment income (loss) ($ 120,143) ($ 252) $ 578,826 $ 712,288
Realized gain (loss) on investments
and foreign currencies (271,000) 155,508 175,608 (185,122)
Unrealized appreciation (depreciation)
of investments and foreign currencies 1,867,659 652,979 (53,230) 236,452
----------- ----------- ----------- -----------
Change in net assets from
investment activities 1,476,516 808,235 701,204 763,618
----------- ----------- ----------- -----------
Distributions to shareholders from:
Net investment income _ _ (578,826) (712,288)
Net realized gain on investments (126,086) (47,352) _ _
----------- ----------- ----------- -----------
Total distributions (126,086) (47,352) (578,826) (712,288)
----------- ----------- ----------- -----------
Increase (decrease) in net assets resulting
from capital share transactions (Note 5) 4,741,741 3,103,712 (2,142,157) (2,085,823)
----------- ----------- ----------- -----------
Total increase (decrease) in net assets 6,092,171 3,864,595 (2,019,779) (2,034,493)
Net Assets
Beginning of year 9,503,162 5,638,567 15,241,045 17,275,538
----------- ----------- ----------- -----------
End of year $15,595,333 $ 9,503,162 $13,221,266 $15,241,045
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements. 29
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
E[bullet]fund
----------------
For the
year ended
June 30, 1996*
----------------
Operations
Net income $238,610
Realized gain (loss) on investments _
Unrealized appreciation (depreciation)
of investments _
-----------
Change in net assets from operating activities 238,610
-----------
Distributions to shareholders from:
Net income (238,610)
Net realized gain on investments -
Total distributions (238,610)
-----------
Increase in net assets resulting
from capital share transactions (Note 5) 11,082,222
-----------
Total increase in net assets 11,082,222
Net Assets
Beginning of year -
-----------
End of year $11,082,222
===========
* Commencement of operations - July 1, 1995
30 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Working Assets Money Market Portfolio
-----------------------------------------------------------------------
For the years ended June 30,
-----------------------------------------------------------------------
Retail Shares 1996 1995 1994 1993 1992
----------- ----------- ---------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations
Net investment income 0.045 0.044 0.023 0.024 0.041
Less distributions
Dividends (from net
investment income) (0.045) (0.044) (0.023) (0.024) (0.041)
------- ------- -------- -------- --------
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======== ======== ========
Total return 4.60% 4.51% 2.35% 2.43% 4.16%
Ratios and Supplemental Data
Net assets, end of year (000's) $78,326 $97,611 $103,766 $152,625 $223,951
Ratio of expenses to average net assets 1.21% 1.16% 1.16% 1.11% 1.07%
Ratio of net income to average net assets 4.56% 4.39% 2.31% 2.41% 4.09%
Institutional Shares 1996*
-------
Selected Per-Share Data
Net asset value, beginning of period $1.00
Income from investment operations
Net investment income 0.021
Less distributions
Dividends (from net
investment income) (0.021)
-------
Net asset value, end of period $1.00
=======
Total return 2.09%
Ratios and Supplemental Data
Net assets, end of period (000's) $14,539
Ratio of expenses to average net assets 0.50%**
Ratio of net income to average net assets
5.16%**
</TABLE>
* For the period from February 1, 1996 to June 30, 1996.
** Annualized
See accompanying notes to financial statements. 31
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Income Portfolio
------------------------------------------------------------------------------------
For the For the year For the year For the year For the period*
year ended ended ended ended ended
June 30, 1996 June 30, 1995 June 30, 1994 June 30, 1993 June 30, 1992
---------------- ----------------- ---------------- ------------------------------
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net assets value,
beginning of period $10.38 $10.04 $10.60 $10.07 $10.00
------- ------- ------- ------- ------
Income (loss) from investment operations
Net investment income (loss) 0.66 0.65 0.55 0.46 0.01
Net gain (loss) on securities
(both realized and unrealized) (0.10) 0.36 (0.54) 0.54 0.07
------- ------- ------- ------- ------
Total from investment operations 0.56 1.01 0.01 1.00 0.08
------- ------- ------- ------- ------
Less distributions
Dividends (from net
investment income) (0.66) (0.65) (0.55) ( 0.47) ( 0.01)
Distributions (from
net realized gains) -- (0.02) (.02) -- --
------- ------- ------- ------- ------
Total distributions ( 0.66) (0.67) (0.57) ( 0.47) ( 0.01)
------- ------- ------- ------- ------
Net asset value, end of period $10.28 $10.38 $10.04 $10.60 $10.07
======= ======= ======= ======= ======
Total Return 5.48% 10.45% 0.04% 10.08% 14.60%***
Ratios and Supplemental Data
Net assets, end of period (thousands) $32,276 $30,122 $24,410 $12,601 $1,030
Ratio of expenses to
average net assets 1.43% 1.35% 1.25% 1.42% 1.75%***
Ratio of expenses to
average net assets
prior to reimbursement 1.48% 1.48% 2.01% 2.38% N/A
Ratio of net income (loss)
to average net assets 6.26% 6.47% 5.43% 4.98% 4.38%***
Ratio of net income (loss)
to average net assets
prior to reimbursement 6.21% 6.34% 4.68% 4.02% N/A
Portfolio turnover rate 41.36% 46.03% 52.62% 22.35% 0.00%
</TABLE>
* Commencement of operations June 10, 1992
** Commencement of operations March 3, 1995
*** Annualized.
<TABLE>
<CAPTION>
Citizens Index Portfolio
Retail Shares
---------------------------------
For the For the period**
year ended ended
June 30, 1996 June 30, 1995
---------------- ----------------
<S> <C> <C>
Selected Per-Share Data
Net assets value,
beginning of period $10.94 $10.00
-------- --------
Income (loss) from investment operations
Net investment income (loss) 0.08 0.01
Net gain (loss) on securities
(both realized and unrealized) 2.47 0.93
-------- --------
Total from investment operations 2.55 0.94
-------- --------
Less distributions
Dividends (from net
investment income) (0.03) --
Distributions (from
net realized gains) (0.05) --
-------- --------
Total distributions (0.08) --
-------- --------
Net asset value, end of period $13.41 $10.94
======== ========
Total Return 23.41% 9.40%
Ratios and Supplemental Data
Net assets, end of period (thousands) $136,980 $106,096
Ratio of expenses to
average net assets 1.82% 1.75%***
Ratio of expenses to
average net assets
prior to reimbursement 1.82% N/A
Ratio of net income (loss)
to average net assets .68% 0.98%***
Ratio of net income (loss)
to average net assets
prior to reimbursement .68% N/A
Portfolio turnover rate 6.44% 64.95%
</TABLE>
* Commencement of operations June 10, 1992
** Commencement of operations March 3, 1995
*** Annualized.
32 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Emerging Growth Portfolio
For the For the year For the period*
year ended ended ended
June 30, 1996 June 30, 1995 June 30, 1994
--------------- ------------------ ------------------
<S> <C> <C> <C>
Selected Per-Share Data
Net assets value, beginning of period $11.87 $9.93 $10.00
------- ------- ------
Income (loss) from investment operations
Net investment income (loss) (0.13) 0.07 0.01
Net gain (loss) on securities (both
realized and unrealized) 4.72 2.18 (0.08)
------- ------- ------
Total from investment operations 4.59 2.25 (0.07)
Less distributions
Dividends (from net investment income) - (0.09) -
Distributions (from net realized gains) (1.59) (0.22) -
------- ------- ------
Total distributions (1.59) (0.31) -
Net asset value, end of period $14.87 $11.87 $9.93
======= ======= ======
Total Return 42.43% 23.24% (1.80%)**
Ratios and Supplemental Data
Net assets, end of period (thousands) $36,409 $10,638 $3,754
Ratio of expenses to average net assets 2.10% 1.90% 1.89%**
Ratio of expenses to average net assets
prior to reimbursement 2.34% 2.93% 3.81%**
Ratio of net income (loss) to average net assets (1.64%) 0.53% 0.63%**
Ratio of net income (loss) to average
net assets prior to reimbursement (1.88%) (0.50%) (1.29%)**
Portfolio turnover rate 337.41% 231.30% 33.35%
</TABLE>
* Commencement of operations February 8, 1994
** Annualized
<TABLE>
<CAPTION>
Citizens Global Equity Portfolio
-----------------------------------------------------
For the For the year For the period*
year ended ended ended
June 30, 1996 June 30, 1995 June 30, 1994
---------------- ----------------- ----------------
<S> <C> <C> <C>
Selected Per-Share Data
Net assets value, beginning of period $10.69 $9.80 $10.00
------- ------ ------
Income (loss) from investment operations
Net investment income (loss) (0.10) (0.01) 0.01
Net gain (loss) on securities (both
realized and unrealized) 1.43 0.96 (0.21)
------- ------ ------
Total from investment operations 1.33 0.95 (0.20)
Less distributions
Dividends (from net investment income) - - -
Distributions (from net realized gains) (0.13) 0.06) -
------- ------ ------
Total distributions (0.13) 0.06) -
Net asset value, end of period $11.89 10.69 $9.80
======= ====== ======
Total Return 12.52% 9.77% (5.14%)**
Ratios and Supplemental Data
Net assets, end of period (thousands) $15,595 $9,503 $5,639
Ratio of expenses to average net assets 1.66% 2.50% 2.50%**
Ratio of expenses to average net assets
prior to reimbursement 1.66% 2.99% 3.16%**
Ratio of net income (loss) to average net assets (.61%) (0.00%) 0.25%**
Ratio of net income (loss) to average
net assets prior to reimbursement (.61%) (0.49%) (0.41%)**
Portfolio turnover rate 85.92% 22.10% 0.00%
</TABLE>
* Commencement of operations February 8, 1994
** Annualized
See accompanying notes to financial statements. 33
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Muir California Tax-Free Income Portfolio
-------------------------------------------------------------------------------------------
For the For the year For the period For the year For the year For the period
year ended ended April 1, 1994 to ended ended ended
June 30, 1996 June 30, 1995 June 30, 1994 March 31, 1994 March 31, 1993 March 31, 1992*
---------------- ------------- ---------------- --------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
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 0.62 0.67 0.18 0.84 0.90 0.67
Net gain (loss) on securities (both
realized and unrealized) 0.11 0.10 0.01 (0.79) 1.00 0.53
------- -------- --------- ---------- ---------- ---------
Total from investment operations 0.73 0.77 0.19 0.05 1.90 1.20
Less distributions
Dividends (from net
investment income) (0.62) (0.67) (0.32) (0.86) (0.91) (0.44)
Distributions (from
net realized gains) -- -- (0.15) (0.15) (0.08) --
------- -------- --------- ---------- ---------- ---------
Total distributions (0.62) (0.67) (0.47) (1.01) (0.99) (0.44)
Net asset value, end of period $ 15.64 $ 15.53 $ 15.43 $ 15.71 $ 16.67 $ 15.76
======= ======== ========= ========== ========== =========
Total Return 4.71% 5.15% 5.09%** 0.04% 12.58% 10.24%**
Ratios and Supplemental Data
Net assets, end of period (thousands) $13,221 $ 15,241 $ 17,276 $ 17,532 $ 15,455 $ 6,135
Ratio of expenses to average net assets 1.55% 1.25% 1.25%** 0.75% 0.46% 0.27%**
Ratio of expenses to average net assets
prior to reimbursement 1.87% 1.74% 1.86%** 1.62% 1.87% 5.83%**
Ratio of net income (loss)
to average net assets 3.98% 4.37% 4.70%** 4.98% 5.59% 6.90%**
Ratio of net income (loss)
to average net assets prior
to reimbursement 3.66% 3.88% 4.09%** 4.11% 4.18% 1.34%**
Portfolio turnover rate 83.12% 74.94% 38.29% 31.04% 36.24% 28.97%
</TABLE>
* Commencement of operations June 10, 1991
** Annualized
34 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Index Portfolio
E[bullet]fund Institutional Class
------------------ ------------------
For the year For the period
ended ended
June 30, 1996* June 30, 1996**
------------------ ------------------
<S> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $1.00 $10.00
Income from operations
Net income 0.059 0.08
Net gain on securities (both realized and unrealized) - 0.92
------ ------
0.059 1.00
Less distributions
Dividends (from net income) (0.059) -
------ ------
Net asset value, end of period $1.00 11.00
====== ======
Total return 6.10% 10.00%
Ratios and Supplemental Data
Net assets, end of period (000's) $11,082 $7,524
Ratio of expenses to average net assets 0.00% 1.01% ***
Ratio of expenses to average net assets
prior to reimbursement 1.55% 1.01% ***
Ratio of net income (loss) to average net assets 6.02% 2.37% ***
Ratio of net income (loss) to average net assets
prior to reimbursement 4.64% 2.37% ***
</TABLE>
* Commencement of operations July 1, 1995
** Commencement of operations January 25, 1996
*** Annualized.
See accompanying notes to financial statements. 35
<PAGE>
CITIZENS TRUST
Notes to Financial Statements
June 30, 1996
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 Efund (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 and one or more classes within the series. During the current fiscal year
Money Market and Index Portfolios added Institutional Classes of shares. The
following is a summary of significant accounting policies followed by the
Portfolios.
Primary Objectives of Portfolios
Working Assets Money Market Portfolio and Efund - current income consistent
with safety and liquidity. Citizens Income Portfolio - invests in fixed income
securities to generate current income and pay a dividend every month. Citizens
Index Portfolio- market-weighted portfolio of 300 companies with the objective
of income and long-term capital appreciation. Citizens Emerging Growth Portfolio
- - invests in promising small and medium-sized companies with the objective of
aggressive growth. Citizens Global Equity Portfolio - holds U.S. and foreign
stocks for capital appreciation. Muir California Tax-Free Income Portfolio -
provides a high level of current income exempt from both federal and California
state personal income tax.
Security Valuation
Working Assets Money Market Portfolio's and Efund'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 Efund 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.
Call and Put Options
Citizens Emerging Growth Portfolio - When the Portfolio writes a call or put
option, an amount equal to the premium received is reflected as a liability. The
amount of the liability is subsequently "marked to market" to reflect the
current market value of the option written. If an option which the Portfolio has
written either expires on its stipulated expiration date, or if the Portfolio
enters into a closing purchase transaction, the Portfolio realized a gain (or
loss if the cost of the closing transaction exceeds the premium received when
the option is sold), and the liability related to such option is extinguished.
If a call option which the Portfolio has written is exercised, the Portfolio
realizes a gain or loss from the sale of the underlying security and the
proceeds from such sale are increased by the premium originally received. If a
put option which the Portfolio has written is exercised, the amount of the
premium originally received reduces the cost of the security which the Portfolio
purchases upon exercise of the options.
36 See accompanying notes to financial statements.
<PAGE>
The premium paid by the Portfolio for the purchase of a call or put option is
recorded as an investment and subsequently "marked to market" to reflect the
current market value of the option purchased. If an option which the Portfolio
has purchased expires on the stipulated expiration date, the Portfolio realizes
a loss in the amount of the cost of the option. If the Portfolio enters into a
closing transaction, it realizes a gain (loss) if the proceeds from the sale are
greater (less) than the cost of the option purchased. If the Portfolio exercises
a put option, it realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale will be decreased by the premium
originally paid. If the Portfolio exercises a call option, the cost of the
security purchased upon exercise is increased by the premium originally paid.
These option contracts may be listed for trading on a national securities
exchange or traded over-the-counter. Over-the-counter options are transacted
directly with dealers and not with a clearing corporation, and there is a risk
of nonperformance by the dealer. The Portfolio as writer of a call option, loses
the potential for gain on the underlying security above the exercise price while
the option is outstanding. By writing a put option, the Portfolio might become
obligated to purchase the underlying security at an exercise price that exceeds
the then current market price.
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, Efund 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.
Use of Estimates in Financial Statements
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of income and expenses during the
period. Actual results may differ from these estimates.
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 Advisor 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, .35%; Efund, .10%; Citizens Income Portfolio and Muir
California Tax-Free Income Portfolio, .65%; Citizens Index Portfolio, .50%;
Citizens Emerging Growth Portfolio and Citizens Global Equity Portfolio, 1.00%;
Prior to the inception of the Institutional Class Shares of Working Assets Money
Market Portfolio and Citizens Index Portfolio their advisory fee rates were .50%
and .70% of average daily net assets, respectively. 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; Efund Portfolio 0.50%; 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. Such voluntary reimbursements may cease at any time. Reimbursements for
the period ended June 30, 1996 were $13,086, $47,125, $45,402 and $54,673 for
the Citizens Income, Citizens Emerging Growth, Muir California Tax-Free Income
and Efund Portfolios, respectively.
See accompanying notes to financial statements. 37
<PAGE>
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 Efund. 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 and Efund .08% _
Income Portfolio .165% _
Index Portfolio .10% _
Emerging Growth Portfolio _ 35%
Global Equity Portfolio .35% _
Muir California Tax-Free Portfolio .175% _
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 up to
.35% of the average daily net assets of the other Portfolios, with the exception
of the Efund and the Institutional Classes of the Money Market Portfolio and the
Citizens Index Portfolio, which have no distribution-related expenses.
Pursuant to an Administrative Services Agreement, the Adviser assumes a
number of general administrative services for each Portfolio relating primarily
to shareholder communications and other administrative services for which the
Adviser is reimbursed the cost of providing such service.
Shareholders of the Efund are issued Mastercard debit cards. The distributor
collects and forwards to the Portfolio 1% of the amount of debit card purchases,
subject to the limit that the amounts paid the Portfolio, together with any
other "non-qualifying" income received by the Portfolio in any fiscal year will
not exceed 9.75% for the Portfolio's gross income for that year.
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
$17,319,403, $21,358,151, $58,430,774, $12,035,552 and $11,325,185 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 June 30, 1996. Sales of
investments, other than short term securities, aggregated $12,715,520,
$7,928,134, $52,272,642, $8,634,373, and $13,356,788 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 June 30, 1996.
The amount of unrealized appreciation (depreciation) of investments as of
June 30, 1996 is as follows:
Income Index Emerging Growth
Portfolio Portfolio Portfolio
--------- --------- ---------
Gross Appreciation $ 404,437 $ 30,841,345 $5,034,788
Gross Depreciation (542,491) (2,548,324) (3,203,772)
-------- - --------- ----------
Net Appreciation (Depreciation) $(138,054) $ 28,293,021 $1,831,016
========= ============= ==========
Global Equity Muir California Tax-
Portfolio Free Income Portfolio
--------- ---------------------
Gross Appreciation $ 2,645,395 $ 184,037
Gross Depreciation (231,466) (131,228)
----------- -----------
Net Appreciation $ 2,413,929 $ 52,809
=========== ===========
Investments have the same cost for tax and financial statement purposes.
38 See accompanying notes to financial statements.
<PAGE>
NOTE 4 - Restricted Securities
On June 30, 1996 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 June 30, 1996, 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 June 30, 1996, the cost and market value of Energia Global were the same.
Vulcan Power had a market value on June 30, 1996 of $25,000. Total restricted
securities represented 0.19% of net assets.
NOTE 5 - Capital Shares
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Working Assets Money Market Portfolio Working Assets Money Market Portfolio
------------------------------------------------------------------ ---------------------------
Retail Class Institutional Class
------------------------------------------------------------------ ---------------------------
1996 1995 1996
----------------------------- ------------------------------ ---------------------------
Shares Value Shares Value Shares Value
----------- ----------- ----------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 89,524,066 $89,524,066 102,295,056 $102,295,056 18,169,824 $18,169,824
Shares redeemed (112,854,324) (112,854,324) (112,804,920) (112,804,920) (3,884,469) (3,884,469)
Shares issued in
reinvestment of
distributions 4,044,997 4,044,997 4,354,760 4,354,760 253,610 253,610
----------- ------------ ---------- ----------- ---------- -----------
Net increase (decrease) (19,285,261) $(19,285,261) (6,155,104) $(6,155,104) 14,538,965 $14,538,965
=========== ============ ========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
Citizens Income Portfolio Citizens Index Portfolio-Retail Class
----------------------------------------------- -------------------------------------------------
1996 1995 1996 1995
-------------------- ------------------------ ---------------------- ----------------------
Shares Value Shares Value Shares Value Shares Value
------- ---------- -------- --------- --------- ----------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 960,101 $10,068,858 1,069,820 $10,836,296 2,251,655 $27,976,155 758,284 $7,841,137
Shares issued in connection
with acquisition of Citizens
Growth Portfolio and
Citizens Balanced
Portfolio - - - - - - 9,106,314 95,798,428
Shares redeemed (888,785) (9,292,285 (750,267) (7,512,032) (1,805,346) (22,418,230) (166,230) (1,789,605)
Shares issued in
reinvestment of
distributions 167,102 1,746,427 151,011 1,511,014 66,739 808,873 - -
------- ---------- ------- ---------- ------- ---------- --------- ------------
Net increase 238,418 $2,523,000 470,564 $4,835,278 513,048 $6,366,798 9,698,368 $101,849,960
======= ========== ======= ========== ======= ========== ========= ============
</TABLE>
See accompanying notes to financial statements. 39
<PAGE>
<TABLE>
<CAPTION>
Citizens Index Portfolio-Institutional Class Citizens Emerging Growth Portfolio
----------------------------------- --------------------------------------------------
1996 1996 1995
------------------------- ------------------------ ---------------------
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
Shares sold 687,394 $7,237,544 1,982,405 $27,359,334 575,120 $6,159,563
Shares redeemed (3,661) (40,010) (584,334) (8,250,469) (75,450) (817,778)
Shares issued in
reinvestment of
distributions - - 154,700 1,800,710 18,455 186,209
------- ---------- --------- ----------- ------- ----------
Net increase 683,733 $7,197,534 1,552,771 $20,909,575 518,125 $5,527,994
======= ========== ========= =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
Citizens Global Equity Portfolio Muir California Tax-Free Income Portfolio
----------------------------------------------- -----------------------------------------------
1996 1995 1996 1995
Shares Value Shares Value Shares Value Shares Value
-------- -------- -------- ---------- ------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 568,325 $6,383,820 433,721 $4,299,560 58,015 $915,810 99,429 $1,530,379
Shares redeemed (157,671) (1,763,879) (124,638) (1,241,778) (224,461) (3,534,455) (274,731) (4,190,408)
Shares issued in
reinvestment of
distributions 11,437 121,800 4,818 45,930 30,073 476,088 37,451 574,206
------ ------- ----- ------ ------ ------- ------ -------
Net increase (decrease) 422,091 $4,741,741 313,901 $3,103,712 (136,373) $(2,142,557) (137,851) $(2,085,823)
======= ========== ======= ========== ======== =========== ======== ===========
</TABLE>
Efund
-----------------------------
1996
-----------------------------
Shares Value
----------- -----------
Shares sold 19,817,895 $19,817,895
Shares redeemed (8,955,215) (8,955,215)
Shares issued in
reinvestment of
distributions 219,542 219,542
---------- -----------
Net increase 11,082,222 $11,082,222
========== ===========
NOTE 6 - Custody of Securities
Under an agreement with the Custodian Bank, custody fees are reduced by credits
for cash balances. Such reductions totalled $143,915, for the Trust during the
year ended June 30, 1996.
NOTE 7 - 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 the 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 Citizens 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.
40 See accompanying notes to financial statements.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Trustees of
Citizens Investment Trust
We have audited the accompanying statements of assets and liabilities of
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 Efund, each a series of shares of
beneficial interest of Citizens Investment Trust, formerly Working Assets Common
Holdings, including the statements of investments, as of June 30, 1996 and the
related statements of operations for the year then ended, the statements of
changes in net assets for the periods indicated thereon, and the financial
highlights for the periods indicated thereon. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
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 Efund as of June 30, 1996, the
results of their operations for the year then ended, the changes in their net
assets for the periods referred to above, and their financial highlights for the
periods referred to above, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
August 14, 1996
This report and the financial statements contained herein are for the general
information of the shareholders of the funds named above. This report is not
authorized for distribution to prospective investors in a fund unless or
accompanied by a currently effective prospectus.
See accompanying notes to financial statements. 41
<PAGE>
DISTRIBUTOR
Citizens Securities
One Harbour Place, Portsmouth, NH 03801
800-223-7010 o 603-436-5152
MANAGER
Citizens Advisers
111 Pine Street, San Francisco, CA 94111
One Harbour Place, Portsmouth, NH 03801
800-223-7010
TRUSTEES
William D. Glenn II, Chair; Sophia Collier; Juliana Eades; Wilma
Mankiller; Azie Taylor Morton; J.D. Nelson; Ada Sanchez
Aileen Hernandez, Chair Emerita
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
[Copyright Symbol] 1996 Citizens Advisers
[Recycle Symbol] Printed on recycled paper using soy-based inks.
<PAGE>
This Page Intentionally Left Blank
<PAGE>
Presorted
First Class
U.S. Postage
Paid
Nashua, NH
Permit #375
[Virtue Logo]
has
had
its rewards...*
Citizens Trust
One Harbour Place
Suite 525
Portsmouth, NH
03801
[Citizens Trust Logo}
1996 Annual Report
*So says our winged Emerging Growth Portfolio mascot.
