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Semi-Annual Report
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The Citizens Index
has performed like
a "Clean Machine"
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President's Letter
[Photo of Sophia Collier]
Sophia Collier
Dear Shareholders:
We all have heroes who serve as a secret measure of our own success. In fact,
these personal heroes often help us define success. For many of us, this
pantheon of inner greats might include people like the late Barbara Jordan. She
began her life in the shadow of poverty and racism in Houston's Seventh ward and
later became a congresswoman whose eloquent defense of the constitution lead to
the resignation of President Nixon. Or, there's Christoph Meili, the "document
hero," who this month stepped onto the world stage from his quiet life as a
security guard at the headquarters of the Union Bank of Switzerland. At risk of
his job, he blew the whistle on the bank's illegal and deplorable midnight
shredding of Nazi-era documents.
For me, working in the very different - and often abstract - world of
financial assets - I must confess to also holding a secret admiration for, not
an individual, but a fund: the Vanguard Index 500.
The performance of the Vanguard Index 500 has defined success for the
mainstream mutual fund market in recent years. As shareholders know, it is our
mission at Citizens Trust to achieve strong financial performance. In my mind,
we are not serving you well if we cannot attain or exceed market averages while
investing in socially responsible companies.
So my private goal has been to best the performance of this large and
famous portfolio and to accomplish this good performance by investing only in
companies that meet our social screens. And in 1996 we did it. Our largest
portfolio, the Citizens Index Portfolio, returned for the one year ended
12/31/96, 23.1% vs. Vanguard Index 500 at 22.9%. (Our average annual return
since inception on March 3, 1995 for the period ended 12/31/96 is 25.9%.) This
one year return placed the Citizens Index Portfolio among the "top performing
indexes of 1996," according to USA Today (1/17/97).
While past performance is not a guarantee of future results,the success
of the Citizens Index Portfolio is important and worth noting because it places
us at the forefront of an industry wide trend. Index investing uses a market
weighted collection of stocks to represent a broad cross section of industries.
I believe our index leads this trend because our special corporate screening
process finds the best companies in an industry not just the average ones. It
makes sense to me that many of our 300 companies in the Citizens Index will do
better than average companies (eg., the S&P 500) over any long-term period.
Compare our companies in this report to those who flunked our screens
like Texaco whose racial discrimination lawsuit brought a $176 million dollar
fine or ADM whose lawsuits over price fixing have only just begun. Our companies
are not fettered with these difficulties and they can focus on new products and
services - creating value for customers and profits for shareholders.
Mutual funds in general are an increasingly important part of all our
lives, a tool many of us are relying upon to build savings and security for the
future. In this report I would like to address that importance by guiding you
through the rest of this document. I will continue my letter throughout giving a
few comments on each page. These reports can be a bit dry, filled as they often
are with page after page of financial tables and lists and what may seem like
self-congratulatory comments by portfolio managers (and presidents!) Yet, these
numbers are important. Important enough for you to spend a few minutes to
understand. So please, follow me and the bouncing ball to page 2...
/s/ Sophia Collier
Sophia Collier
President
February 11, 1997
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Manager's Comments
...Any semi-annual report begins with the Portfolio Managers' reports. Portfolio
Managers are the financial professionals who work on the front lines, day to
day, buying and selling securities with the objective of making the shares in
your Portfolio more valuable. At the head of each Portfolio Manager's report is
a quick reference to the Portfolio, its investment objective, the ground rules
by which the Portfolio invests and the results it achieved over last year.
Following this snapshot of the portfolio, you will find the Manager's six month
recap which includes a synopsis of last year's market environment, the Portfolio
Manager's investment strategies, how these strategies worked and the Portfolio
Manager's outlook for next year. It's a good way to understand the "attitude"
and objectives of a Portfolio before we explore the "nuts and bolts" in the
financial tables that follow...
US Equity Markets Report
Company size had a significant effect on performance last year. In all three
market segments - large capitalization, medium capitalization, and small
capitalization - the largest 20% of companies significantly outperformed their
smaller counterparts. Clearly, investors were looking for the "safest"
companies, and they decided that bigger was better.
An investment in the largest 20% of the S&P 500 returned +31% while an
investment in the smallest 20% of the S&P 500 small cap index returned -5%.
Perhaps the most dramatic example of this was the Russell 2000. A small cap
index with 2000 members, it returned 14% in 1996 while 40% of all stocks between
the sizes of $10 million and $1 billion fell in value by 30% or more!
The movement of investment capital into larger companies helped our
Citizens Index Portfolio, which invests in larger stocks, and hurt our Citizens
Emerging Growth which focuses on smaller stocks. More details are provided in
the individual manager's reports.
Portfolio: Citizens Index
Portfolio Manager: Edwin Ek
Objective: Capital Appreciation
The Ground Rules: Invests up to 100% of assets at all times in the 300 companies
that comprise the Citizens Index in a fixed proportion equal to the market
weight of each company.
The Results: Total return of 13.06% for the six months ended 12/31/96. For the
period ended 12/31/96, the Citizens Index Portfolio returned 23.1% for one year
total return and had an average annual total return since inception on 3/3/95 of
25.9%. The new Institutional class shares for the Citizens Index Portfolio
returned 13.40% for the six months ended 12/31/96. The S&P 500 returned 23.1%
for the year ended 12/31/96.
Six Month Recap:
[Photo of Edwin Ek]
Edwin Ek
The strategy for the Citizens Index Portfolio is to invest as closely as
possible in the 300 socially screened companies of the Citizens Index. The
performance of the Portfolio then will 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 the
performance when the market is heading down and subtract when the market is
going up.)
In the Citizens Index, the fifteen largest holdings represent 39% of
the total market capitalization. These stocks returned a very impressive 47% in
1996, led by the technology stocks of Intel, Microsoft, and Cisco Systems, with
returns of 131%, 88%, and 71% respectively.
During the six months ended 12/31/96 our top performing sectors were
Electronics and Banks with total returns of 32.41% and 28.10%. Since 11.28% of
the portfolio was invested in Electronics, it added 1.40% to our total return
relative to the S&P 500.
Our performance relative to the S&P 500 was also helped by the fact
that we had no investments in Bay Networks, ITT Corp., or Telecommunications
Inc., all of which had strong negative returns. These companies failed our
social screens and therefore were never part of our portfolio.
Two other examples of companies in the S&P 500 that didn't make it into
the Citizens Index are Bausch & Lomb, named in an anti-competitive lawsuit
brought by 21 state district attorneys. It lost 16.41%. Another, Pepsico, was
hurt when it came to light that they owned 40% in a Burmese bottler. The Pepsico
stock slipped by 16.96%. Again social screening helped us avoid these troubled
companies.
Among our approved companies we also had some losers. The worst was
Fresh Choice, a restaurant operator which lost 42.86% on poor sales. This
company was dropped from Citizens Index in November and was replaced by Darden
Restaurants which we believe has better prospects.
2 Citizens Trust Semi-Annual Report
<PAGE>
While it is likely that the market, as a whole, will have the same high
returns we enjoyed in 1995 and 1996, the index strategy will continue to avoid
timing the market. Therefore we will remain fully invested and harvest the
returns available from our 300 company universe.
Portfolio: Citizens Emerging Growth
Portfolio Manager: Rick Little
Objective: Aggressive Growth
The Ground Rules: Invests in the common stock of US Domestic Companies with an
average capitalization of $2 billion; can invest in cash in times of market
volatility or projected downturns.
The Results: -1.48% total return for the six months ended 12/31/96; 13.91% for
the year ended 12/31/96 and 20.53% since inception on 2/8/94. The Russell 2000
small-cap index returned 14.0% for the year ended 12/31/96.
[Photo of Rick Little]
Rick Little
Six Month Recap:
The last six months of 1996 were tough on the smaller companies of the type that
make up the Citizens Emerging Growth Portfolio. Though the Portfolio had gained
fully 15.62% through June of 1996, it lost 1.48% in the year's second half.
Most of that loss occurred in the final quarter of the year.
It is important to emphasize that by and large the portfolio losses in
the last few months of the year were not a function of adverse developments
within the companies we hold. Losses had more to do with the industry-wide
migration of investment dollars to large companies. Most of the companies
represented by our major portfolio positions continued to produce strong
business results. Many of the small companies in the Citizens Emerging Portfolio
simply fell out of favor (and fell in price) with Wall Street and the investment
community in 1996, despite their strong operating results.
During difficult markets such as these, our investment discipline
remains consistent. It has served shareholders well in the past and will
continue to do so. Our discipline, or strategy, focuses on company fundamentals,
the solid underpinnings of business success. Companies which are demonstrating
strong business earnings momentum and which continue to win within their market
are considered for investment. Our investment discipline requires that portfolio
companies consistently meet these criteria.
Disappointments in business earnings, or a plateauing in growth are
signals that the stock should be sold. Thus, the portfolio is managed actively,
in the search for companies with superior and sustainable business earnings
momentum.
So while some of our portfolio holdings may not be a hot topic on Wall
Street, we have confidence that their continued strong business earnings will
bring them back into favor with investors. We believe our selection process is
sound and that we will be vindicated in our decision to hold onto these stocks.
Among the major contributors to the Portfolio's return over the last
twelve months was Envoy Corporation, a leading provider of electronic
transaction processing services for the healthcare industry. The trend away from
paper based transactions has allowed the market for electronic transmission of
medical claims to grow by more than 30% last year. Envoy's earnings grew at a
rate better than 40% in 1996. Another winner, Tellabs, designs and manufactures
voice and data equipment used in public and private communications networks
worldwide. As expected, the stock appreciated dramatically in 1996 to the point
that its growth opportunities seemed limited. We bought in at $24.50 on 4/1/96
and sold eight months later at 39.50, a gain of 61%. Last fall we bought Altera,
a leader in high-density, high-performance programmable logic devices (PLDs)
for $25. As of 12/31/96 their stock was at $36.37, a gain of 46%. We continue to
hold Altera because their primary customers - including communications, consumer
and the broad based computer market - are also experiencing robust demand. This
should allow Altera to continue to capitalize on its dominant position (24%
market share) within the PLD market.
On the downside, Arbor Software, a developer of client server software
for business planning and analysis lost 21% when we sold it after four months in
October. Although their industry continues to grow, a disruption in the sales
channel between Arbor and their distributors increased the company's risk
profile and the stock was sold. Cirrus Logic, a developer of user interface
applications, as well as mass storage and communications devices, was bought for
$20.50 last October and had lost 24% as of 12/31/96. We will continue to hold
this stock as a shift from 2d graphic accelerators to 3d accelerators should
create large opportunities for companies with the products and expertise to
capitalize on consumers' appetite for better graphics cards.
3
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Manager's Comments
Looking ahead, the fundamentals for investment in mid-to-smaller
capitalization companies continue to be compelling. We believe three factors
should boost returns for small and mid-cap stocks. First, their relative
valuation to large stocks on a P/E basis is at the lowest level in nearly 2 1/2
years. Second, the supply/demand imbalance created by a rush of new offerings
prior to the presidential elections and lack of money flows into aggressive
mutual funds, should begin to reverse. Finally, renewed interest and support for
a potential capital gains tax cut may place a premium on capital gains over
current income, a situation ideally suited for small and mid cap issues. These
factors, coupled with our continued focus on our investment discipline should
continue to provide Citizens Emerging Growth shareholders with competitive
returns.
Portfolio: Citizens Global Equity
Portfolio Manager: Lila Clemente
Objective: Capitol Appreciation
The Ground Rules: Can invest anywhere in the world, provided that it holds at
least 50% non-US companies and a minimum of three countries. To reduce risk
cannot invest more than 25% in emerging markets.
The Results: For the six months ended 12/31/96 we were up 3.45%, which lagged
the 4.7% return of our benchmark: the Financial Times World Index. For the full
year 1996, we beat the index with a return of 13.16% vs. 10.8%.
[Photo of Lilia Clemente]
Lilia Clemente
Six Month Recap:
In the second half of 1996 we missed out on the US market, up 10.5% in the
second half of the year as measured by the S&P 500. We avoided a big exposure to
the US because we felt that overall market valuations were reaching dangerously
high levels. However, as it worked out some of our largest and best performing
holdings were US companies. Intel was the leader with a return of about 70% in
the second half of the year.
In Europe our forecasting was more on target. We saw a period of rapid
growth fueled by lower interest rates; therefore, we allocated an increased
percentage to these markets. We focused primarily on France, Ireland, The
Netherlands, and Belgium and de-emphasized the other European markets with the
exception of Norway, Italy and Spain.
We chose defensive stocks such as telephone companies, media companies, and
interest rates sensitive issues such as banks. This strategy paid off with some
of our European picks displaying the best performance over this period. Our top
performers in the second half of 1996 were Tomra Systems (+47%), a Norwegian
company which specializes in beverage containers recycling machinery; Aegon, a
Dutch insurance company provided us with returns in excess of 37%; VNU (+34%)
also in the Netherlands, a leading media company which was selling at a steep
discount to its peer group with strong earnings prospects. Power Screen, an
Irish engineering company operating in the booming UK construction sector, gave
us a gain of 23%. We recorded very nice gains in Italy with Bulgari (+24%) in
the luxury consumer goods sector and Telecom Italia (+20%), the leading Italian
telecommunications company.
We chose investments in Japan given the prospects for the acceleration
of domestic sales and earnings within Japan. Targets for investment were large
companies where we expected to benefit from corporate restructuring, exporters
who would have improved sales from a weaker yen and consumer plays which we
thought would benefit from the rising household income and spending within
Japan. Unfortunately, Japan turned out to be one of the worst performing
markets, down 18% in dollar terms in the second half of the year on fears of an
aborted economic recovery. Despite the poor showing of the Japanese market some
of our holdings did quite well: NEC and TDK gave us positive returns in the
second half of the year of (+17%) and (+15%) respectively, as they benefited
from a weaker yen.
Within Latin America we increased investments in Brazil and Mexico. We
added new names in Mexico such as Tubos de Accro de Mexico, a provider of
seamless steel tubes to the energy sector, which gave us a handsome return of
50% in the second half of 1996 despite the fact that the Mexican market did not
meet our expectations, rising by only 0.8%.
Investment Strategy for 1997
The Citizens Global Equity portfolio continues to favor European markets where
the fund has a 50% weighting. Our favorite names in Europe includes companies
such as Salomon (leading French sporting goods and golf equipment producer,
known under the Taylor Made name), Tomra Systems (a Norwegian company which
specializes in beverage containers recycling machinery), Telecom Italia (leading
telephone company in Italy). We continue to focus on Japanese companies that are
beneficiaries of a weaker yen and on consumer plays in response to a pick up in
household spending. In the former category is Canon, a global leader in office
automation with 78% of sales outside of Japan.
4 Citizens Trust Semi-Annual Report
<PAGE>
Emerging markets have benefited as investors moved in looking for value
on the back of a poor performance in 1995. In our opinion, one of the most
attractive emerging markets in Asia is the Philippines, a country that is
benefiting from sustained economic growth, superior corporate earnings growth
and relatively stale political regime. Our favorite stock is C&P Homes, the
largest private low-cost housing developer in the Philippines, well positioned
to capitalize on increased demand for inexpensive housing. In Latin America, our
favorite countries are Brazil and Mexico. These markets should be supported by a
favorable inflation outlook and ongoing political and economic reform. Our
largest holding in the area is Telebras, Brazil's leading telecommunications
company.
Portfolio: Citizens Income
Portfolio Manager: Gail Seneca
Objective: High current income
The Ground Rules: Invests at least 65% of its assets in taxable bonds rated as
"investment grade".
The Results: 5.71% for the six months ended 12/31/96; 4.85% for the year ended
12/31/96 and 7.09% average annual return since inception on 6/10/92. The Lehman
Government/Corporate Intermediate Index returned 4.05% for the year ended
12/31/96.
[Photo of Gail Seneca]
Gail Seneca
Six Month Recap:
Bond market action in 1996 was extremely volatile. Long term interest rates rose
from less than 6% at the start of the year to over 7% by fall. While this is a
swing of only one percent, readers of our prospectus will recall that the price
of bonds varies inversely with interest rates. For longer term bonds a 1% swing
can cause a change 15% or more in the price of a bond.
This very difficult environment for bond investors produced a below
average return, of just 2.9%, for the broad bond market, as measured by the
Lehman Government/Corporate Index. The Citizens Income Portfolio outperformed
the broad market, returning 4.85% for the year.
The portfolio achieved these strong results by emphasizing high current
income. Instead of attempting to time the swings in the market, the Citizens
Income Portfolio maintains an intermediate term maturity exposure, and over long
periods, realizes most of its return through current income. Our approach seeks
to ensure that investors will receive a high and steady income stream despite
volatile market conditions.
The bulk of our analytic work concentrates on the identification of
bonds which can provide a steady, high income stream. In 1996, the portfolio
invested mainly in corporate bonds and mortgage backed securities. Some of the
best performers over the second half of 1996 included Smiths Food and Drug, MVE
Inc., Orchard Supply and Hardware (purchased by Sears Roebuck and Co.), and
Weingarten Realty Investors. As of 12/31/96 our top holdings include mortgage
backed bonds issued by FHLMC, FNMA and GNMA as well as corporate issues such as
Corporate Express, Continental Cablevision, Equity Residential Properties,
Orchard Supply and Hook Super-X.
Market volatility will continue in 1997, but we believe rates will
probably fluctuate within a fairly tight range between 6% and 7.25%. Inflation
appears steady at about 3% in the U.S., and has fallen to even lower levels in
other industrialized countries. "Real" or inflation adjusted returns from bonds
at 6% - 7.25% are therefore quite attractive. Our approach will remain focused
on providing above market returns through the disciplined, low risk strategy
which has proven so beneficial for the Portfolio thus far.
Portfolio: Muir California Tax-Free Income
Portfolio Manager: Gail Seneca
Objective: Current income exempt from California State and Federal Taxes.
The Ground Rules: Invests up to 100% in California municipal securities.
The Results: 4.46% for the six months ended 12/31/96; 3.19% for the year ended
12/31/96 and 6.47% average annual return since inception on 6/10/91. The Lehman
7 Year Municipal Index returned 4.36% for the year ended 12/31/96.
Six Month Recap:
The most important news for tax-free investors in 1996 is that the market for
municipal securities seems to have recovered from its long slump. At 12/31/96,
the current distribution rate for the Portfolio was 3.73%, which translates into
a very attractive tax equivalent yield of over 6.93% for California taxpayers.
This means that for the first time in several years investors in high tax
brackets who invest in taxable bonds may actually do better in tax-free bonds.
Although interest rates were volatile during the year, yields on
municipal bonds finished the year only moderately higher than at 1995 year end.
More noteworthy, however, is the fact
5
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Manager's Comments
that the elimination of the prospect of "tax reform" has caused a pleasant
upward revaluation of the municipal market.
However, not all is good news. While an improvement in the California
economy has resulted in credit upgrades by both Moody's and Standard & Poor's in
the rating of issues of the state and its agencies, concerns over the passage of
Prop. 218, which limits the flexibility of the counties to satisfy their
financial obligations, caused the rating agencies to reduce the ratings on the
large counties of San Diego and Los Angeles. To protect the portfolio from this
risk, we have paid particular attention to the essentiality of the purposes for
the bonds in which we have invested, concentrating our purchases largely in
essential service revenue bonds. As additional protection, over half of the
bonds in the portfolio are insured and carry an AAA rating.
We continue to perceive good value in California municipals for high
tax bracket individuals. Stable, tax free return, produced by a risk averse
strategy focused on intermediate rather than long maturity bonds, remains our
objective.
Citizens Trust Money Market Portfolio
Portfolios: The E*fund and the Working Assets Money Market Portfolio
Portfolio Manager: Danita Wright
Objective: Current income consistent with safety and liquidity
The Ground Rules: Invest only in short-term money market instruments (short-term
debt issued by branches of the government corporations, banks, or other
financial institutions) that we believe present minimal risk. We must maintain a
weighted average maturity of 90 days or less for the portfolio as a whole
The Results: For the period ended 12/31/96 the Working Assets Money Market
Portfolio had a 7-day simple yield of 4.22% with a 7-day effective yield of
4.31%. The Working Assets Money Market Portfolio Institutional Class Shares had
a 7-day simple yield of 4.64% and a 7-day effective yield of 4.96%. The E*fund
had a 7-day simple yield of 5.44% with a one year total return of 5.96%.
[Photo of Danita Wright]
Danita Wright
Six month recap:
In contrast to the volatile long-term bond market, short-term rates held steady
through 1996. The Federal Reserve changed rates only once, in February, taking
the Federal Funds rate to 5.25%. Despite great speculation that the Fed would
tighten in the year's second half, policy was unchanged. Money market
investments, as a result, offered great stability during the year.
Throughout the year, the overall "yield curve" - the maturity spectrum
from overnight debt instruments to 30 year maturities - was relatively flat.
Money market instruments offered a return of about 5%, while 30 year maturities
traded between 6% and 7%.
In this climate, money market investors had little incentive to
lengthen maturities. Accordingly, the Citizens Money Market Funds maintained
fairly short maturities, around 30 days, throughout the year. In doing so, and
in investing in the highest yielding high quality instruments available, the
funds have produced competitive returns.
The E*fund in particular has done well in 1996. With the addition of
the "E*fund Refund", the E*fund was #1 for one year total return for the period
ended 12/31/96, based on Lipper Analytical Services, Inc.'s list of 288 money
market portfolios. The E*fund materially benefited from a fee waiver of 0.5%
without which the return would have been lower. The Adviser plans to continue
this waiver at least through 2/28/97.
The "E*fund Refund" takes 1% of the purchases made with the fund's
debit card and returns it to the fund up to 9.75% of the fund's gross investment
income. It's an innovation designed to enhance the traditional characteristics
of a money market portfolio: "safety and liquidity". The debit card and the free
checking that come with the E*fund take its liquidity to the level of a
transactional account, while the extra income provided by the "E*fund Refund"
enhances the Portfolio's return.
Going into 1997, expectations of the Fed tightening are rampant.
Strengthening employment conditions and a revival in the manufacturing sector
may lead the Fed to nudge rates a bit higher. If this occurs, money market
returns will rise as well. The Citizens Money Market funds, with their short
maturities, are positioned to participate immediately if rates rise.
6 Citizens Trust Semi-Annual Report
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WORKING ASSETS MONEY MARKET PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Commercial Paper / 78.05% Yield, Maturity Date
$ 800,000 Allergan, Inc. 5.6%, 1/17/97 $ 798,009
350,000 American Greetings Corp. 5.4%, 1/7/97 349,685
2,350,000 American Greetings Corp. 5.4%, 1/8/97 2,347,533
1,500,000 American Greetings Corp. 5.5%, 1/9/97 1,498,167
4,000,000 Aristar 5.41%, 2/7/97 3,977,759
2,000,000 B.I. Funding, Inc. 5.23%, 1/31/97 1,991,133
4,000,000 Bank of New York 5.3%, 1/10/97 3,994,700
2,000,000 Beneficial Corp. 5.31%, 1/24/97 1,993,215
700,000 Chubb Capital Corp. 5.4%, 1/6/97 699,475
3,000,000 Chubb Capital Corp. 5.52%, 1/27/97 2,988,040
1,500,000 Coop Assoc. of Tractor Dealers 6.0%, 1/6/97 1,498,750
465,000 Coop Assoc. of Tractor Dealers 5.35%, 1/13/97 464,171
4,000,000 Countrywide Funding Corp. 5.42%, 1/21/97 3,987,956
1,600,000 Dean Witter, Discover & Co. 5.38%, 1/6/97 1,598,804
510,000 Dean Witter, Discover & Co. 5.31%, 1/07/97 509,549
400,000 Dean Witter, Discover & Co. 5.31%, 1/15/97 399,174
2,000,000 Dean Witter, Discover & Co. 5.31%, 1/17/97 1,995,280
2,500,000 Green Tree Financial 5.7%,1/29/97 2,488,917
2,000,000 John Hancock Capital 5.3%, 1/17/97 1,995,289
476,000 Harley Davidson 5.42%, 2/5/97 473,492
1,200,000 H.J. Heinz Co. 5.4%, 1/6/97 1,199,100
4,000,000 Idaho Power Co. 5.4%, 1/7/97 3,996,400
4,500,000 New Jersey Natural Gas Co. 6.1%, 1/6/97 4,496,188
1,800,000 New York Times 5.55%, 1/7/97 1,798,335
2,430,000 Nicor, Inc. 5.3%, 2/3/97 2,418,194
2,000,000 Pitney Bowes Credit Corp. 5.27%, 2/7/97 1,989,167
2,300,000 Pitney Bowes Credit Corp. 5.36%, 2/20/97 2,282,878
1,900,000 Safeco Credit Company 5.3%, 1/8/97 1,898,042
2,190,000 Safeco Credit Company 5.28%, 1/15/97 2,185,503
4,000,000 Seven Hills Funding 5.47%, 1/23/97 3,986,629
3,500,000 Sonoco Products Co. 5.32%, 1/14/97 3,493,276
1,000,000 Sonoco Products Co. 5.35%, 1/17/97 997,622
2,000,000 Student Loan Corp. 5.3%, 1/17/97 1,995,289
3,000,000 U.S. Central Credit 5.33%, 1/27/97 2,988,452
2,500,000 Xerox Credit Corp. 5.3%, 1/24/97 2,491,535
1,500,000 Xerox Credit Corp. 5.31%, 1/16/97 1,496,681
Total Commercial Paper ==========
(Cost $75,762,387) 75,762,387
Certificates
of Deposit / 0.52%
100,000 Bank of New Jersey 5.16%, 10/20/97 100,000
100,000 Boston Bank of Commerce 5.2%, 10/20/97 100,000
100,000 Community Capital Bank 5.15%,10/20 97 100,000
100,000 Independence Bank of Chicago 5.15%, 12/27/97 100,000
100,000 Self Help Credit Union 5.23%, 7/24/97 100,000
Total Certificates of ==========
Deposit (Cost $500,000) 500,000
</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.
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
U.S. Gov't Agencies / 15.23% Yield, Maturity Date
385,000 Federal Home Loan Bank 5.25%, 1/02/97 $ 384,944
9,500,000 Federal Home Loan Mortgage Assn.
5.29%-5.44%, 1/3/97-1/14/97 9,488,917
2,330,000 Federal National Mortgage Assn.
5.45%-5.625%, 1/2/97-1/14/97 2,326,918
2,585,000 Student Loan Marketing Assn.
5.303%-5.444%, 10/17/97-11/20/97 2,584,151
Total U.S. Gov't Agencies ==========
(Cost $14,784,930) 14,784,930
Farmers Home
Administration (b) (c) / 0.18%
$ 177,296(b) Variable Rate Notes 7.125%, 8/1/26-12/1/26 177,296
Small Business
Administration (b) (d) / 5.19%
5,035,244(b) Varibale Rate Notes 6.625%-9.475%
1/11/25-6/16/25 5,035,244
Total Investments ==========
(Cost $96,259,857)(e) 96,259,857
Other assets,
less liabilities 810,534
==========
Net Assets $97,070,391
</TABLE>
...Here is the Statement of Investments, a snapshot of the portfolio at
12/31/96. By the time you read this most of the investments in the money market
will have changed because on average, our money market portfolios turn over
every two months. However, not to worry; it's been this way for fifteen years...
See accompanying notes to financial statements. 7
<PAGE>
CITIZENS INCOME PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Corporate Bonds / 76.92% Rate, Maturity Date
Amusements / 10.22%
$ 1,000,000 J.Q. Hammons Hotels 8.875%, 2/15/04 $ 987,500
1,000,000 Royal Caribbean 11.375%, 5/15/02 1,072,500
1,400,000 Time Warner, Inc. 9.13%, 1/15/13 1,506,876
=========
3,566,876
Broadcasting &
Communications / 8.15%
1,500,000 Continental Cablevision, Inc.
8.3%-10.625%, 2/6/15-6/5/15 1,604,778
200,000 Cablevision Inds. Corp. 10.75%, 1/30/02 211,750
250,000 Jones Intercable, Inc. 11.5%, 7/15/04 272,500
750,000 Sullivan Broadcasting 10.25%, 15/15/05 755,625
=========
2,844,653
Computer, Office &
Business Equipment / 4.67%
1,600,000 Corporate Express, Inc. 9.130%, 3/15/04 1,630,000
Financial Services &
Insurance / 15.84%
1,025,000 Countrywide Funding Corp.
6.875%-8.25%, 7/15/02-12/15/26 1,033,645
851,857 DLJ Mortgage Acceptance Corp. 6.62%, 5/25/09 829,326
700,000 Donaldson, Lufkin & Jenrette, Inc. 6.875%, 11/1/05 682,150
100,000 First Chicago NBD Corp. 7.25%, 8/15 04 102,009
161,699 Green Tree Financial Corp. 5.6%, 4/15/19 162,188
1,500,000 Lehman Brothers, Inc.
5.04%-8.05%, 12/15/3-1/15/19 1,532,221
50,000 MBIA, Inc. 9.0%, 2/15/01 54,070
1,000,000 Secured Finance Dels 9.05%, 12/15/04 1,132,500
=========
5,528,108
Healthcare / 3.73%
50,000 Kaiser Foundation Health Plan
9.0%, 01/11/01 55,136
150,000 Manor Care, Inc. 9.5%, 02/11/15 159,375
1,000,000 Quorum Health Group, Inc.
8.75%-11.875%, 12/15/02-11/01/05 1,089,063
=========
1,303,574
Industrial Products / 2.34%
750,000 MVE, Inc. 12.5%, 02/02/15 817,500
Manufacturing / 5.65%
900,000 Scotsman Group, Inc. 9.5%,12/15/00 918,000
1,000,000 Tyco Toys, Inc. 10.125%, 2/08/15 1,055,000
=========
1,973,000
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
Corporate Bonds (con't) Rate, Maturity Date
Real Estate / 12.95%
1,300,000 ERP Operations Ltd Partnership 7.57%, 8/15/26 $ 1,314,274
1,000,000 Merry Land & Investment, Inc. 6.875%, 11/1/03 988,540
1,000,000 Property Trust Of America 6.875%, 2/15/08 943,650
500,000 Security Cap Pac, Inc. 7.9%, 2/15/16 492,385
800,000 Weingarten Realty 6.9%, 11/24/08 780,824
=========
4,519,673
Retail / 13.37%
250,000 Baby Superstore, Inc. 4.875%, 10/1/00 243,438
1,500,000 Hook SuperX, Inc. 10.125%, 6/1/02 1,595,625
1,500,000 Orchard Supply 9.375%, 2/15/02 1,593,750
472,000 Smith's Food And Smith's Drug 11.25%, 5/15/07 522,740
679,000 Vons Companies, Inc. 9.625%, 4/1/02 709,555
=========
4,665,108
Total Corporate Bonds ==========
(Cost $26,379,563) 26,848,491
Short Term
Investments / 0.58%
204,000 State Street Bank & Trust 5.15%, 1/2/97 204,000
Total Short Term =========
Investments (Cost $503,896) 204,000
Long Term U.S. Government
Agencies / 19.37%
1,600,000 Federal Home Loan Mortgage Corp.
6.8%-8.75%, 6/15/05-4/15/18 1,500,407
4,500,000 Federal National Mortgage Assn.
6.5%-8.0%, 7/25/06-1/25/24 3,537,272
3,865,000 Government National Mortgage Assn.
7.0%-9.5%, 4/15/07-10/15/22 1,724,322
Total Long Term U.S.
Government Agencies =========
(Cost $6,668,321) 6,762,001
Total Investments ==========
(Cost $33,551,780)(a) 33,814,492
Other assets,
less liabilities 1,087,901
=========
Net Assets $34,902,393
</TABLE>
...The Citizens Income Portfolio invests in companies
similar to our money market portfolios, except that in this fund we loan
companies money for several years-not just a month or so. In most markets this
allows us to earn a higher rate of interest on our money but it also exposes us
to more risks if interest rates change...
8 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
CITIZENS INDEX PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Equities / 99.45%
Apparel & Textiles / 0.66%
1,800 Gymboree Corp.(b) $ 41,175
5,900 Liz Claiborne 227,888
5,900 Reebok International 247,800
1,300 Springs Industries, Inc. 55,900
3,700 Stride Rite Corp. 37,000
5,000 VF Corp. 337,500
3,200 Warnaco Group, Inc. 94,800
==========
1,042,063
Banks / 11.05%
12,500 BankBoston Corp. 803,125
31,200 Bank of New York, Inc. 1,053,000
6,000 Bankers Trust New York 517,500
14,800 Barnett Banks, Inc. 608,650
13,300 Boatmens Bancshares 857,850
17,300 Corestates Financial Corp. 897,438
27,384 First Chicago Corp. 1,471,890
22,430 First Union Corp. 1,659,820
19,800 Keycorp 999,900
10,600 Mellon Bank Corp. 752,600
17,200 National City Corp. 771,850
23,800 NationsBank Corp. 2,326,450
29,700 Norwest Corp. 1,291,950
26,500 PNC Financial Corp. 997,063
18,200 Suntrust Banks, Inc. 896,350
13,000 U.S. Bancorp 584,188
13,100 Wachovia Corp. 740,150
7,800 Wells Fargo & Co. 2,104,050
==========
19,333,824
Broadcasting &
Communications / 0.34%
9,300 Ascend Communications, Inc.(b) 577,763
Computer, Hardware &
Business Equipment / 7.79%
13,800 3Com Corp.(b) 1,012,575
21,500 Amdahl Corp.(b) 260,688
9,300 Apple Computer, Inc.(b) 194,138
51,700 Cisco Systems, Inc.(b) 3,289,413
21,600 Compaq Computer Corp.(b) 1,603,800
29,775 Computer Assoc. Intl, Inc. 1,481,306
14,400 Dell Computer Corp.(b) 765,000
12,200 Digital Equipment Corp.(b) 443,775
5,500 Gateway 2000, Inc.(b) 294,594
16,500 Micron Technology, Inc.(b) 480,563
27,500 Novell, Inc.(b) 260,391
11,700 Pitney-Bowes, Inc. 637,650
12,900 Silicon Graphics, Inc.(b) 328,950
Computer, Hardware &
Business Equipment (con't)
29,200 Sun Microsystems, Inc.(b) $ 750,075
8,800 Tandem Computers, Inc.(b) 121,000
26,700 Xerox Corp. 1,405,088
==========
13,329,006
Construction and
Housing / 1.10%
3,000 Apogee Enterprises 119,250
2,800 Armstrong World 194,600
2,100 Centex Corp. 79,013
4,700 Choice Hotels, Inc.(b) 82,838
9,000 HFS, Inc.(b) 537,750
12,200 Masco Corp. 439,200
2,100 Pulte Corp. 64,575
3,500 Rouse Company 111,125
6,800 Stanley Works 183,600
1,300 TJ International, Inc. 30,225
==========
1,842,176
Consumer Durables / 0.34%
1,155 Harman Intl Industries 64,247
8,100 Maytag Co. 159,975
2,800 Toro Co. 102,200
5,500 Whirlpool Corp. 256,438
==========
582,860
Electronics / 10.19%
10,400 ADC Telecommunications(b) 323,700
10,500 Advanced Micro Devices(b) 270,375
3,200 Altera Corp.(b) 232,600
7,000 American Power Conversion(b) 190,750
17,600 AMP, Inc. 675,400
10,300 Antec Corp.(b) 92,700
14,400 Applied Materials, Inc.(b) 517,500
3,000 Avnet, Inc. 174,750
1,800 Belden, Inc. 66,600
10,100 General Instrument Corp.(b) 218,413
10,000 Global Village Communication(b) 31,875
82,200 Hewlett Packard Co. 4,130,550
67,000 Intel Corp. 8,772,813
10,300 LSI Logic Corp.(b) 275,525
7,475 Molex, Inc. 292,459
3,700 National Service Industries 138,288
3,100 Perkin-Elmer Corp. 182,513
2,200 Tektronix, Inc. 112,750
3,000 Thomas & Betts Corp. 133,125
6,600 U.S. Robotics Corp.(b) 475,200
2,700 VLSI Technology(b) 64,463
==========
17,372,349
</TABLE>
See accompanying notes to financial statements. 9
<PAGE>
CITIZENS INDEX PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Energy & Utilities / 2.13%
3,700 CalEnergy, Inc.(b) $ 124,413
7,100 Consolidated Natural Gas 392,275
71,429 Energia Global (b)(c) 250,002
20,100 Enron Corp. 866,813
4,000 Nicor, Inc. 143,000
9,300 Noram Energy Corp. 142,988
7,500 Oneok, Inc. 225,000
6,500 Pacific Enterprises 197,438
2,600 Peoples Energy Corp. 88,075
6,600 Sonat, Inc. 339,900
120,000 Vulcan Power Co. (b)(c) 25,000
4,000 Western Atlas, Inc.(b) 283,500
12,600 Williams Companies 472,500
4,100 Yankee Energy Systems, Inc. 87,638
==========
3,638,542
Financial Services / 6.45%
8,900 Ahmanson & Co. 289,250
39,300 American Express Co. 2,220,450
3,900 Beneficial Corp. 247,163
15,800 Charles Schwab Corp. 505,600
13,000 Dean Witter, Discover & Co. 861,250
4,500 Edwards (A.G.), Inc. 151,313
14,500 Federal Home Loan Mortgage Corp. 1,596,813
88,300 Federal Natl. Mortgage Assn. 3,289,175
4,600 Golden West Financial 290,375
10,100 Great Western Financial 292,900
11,000 Green Tree Financial Corp. 424,875
17,100 MBNA Corp. 709,650
7,000 Viad Corp. 115,500
==========
10,994,314
Food & Agriculture / 11.12%
4,200 Ben & Jerry's Homemade(b) 45,675
19,500 Campbell Soup Co. 1,564,875
100 Celestial Seasonings, Inc.(b) 1,975
201,400 Coca Cola Co. 10,598,675
11,700 CPC International 906,750
12,800 General Mills, Inc. 811,200
29,900 H J Heinz Co. 1,068,925
12,400 Hershey Foods Corp. 542,500
2,500 J M Smucker Co. 44,063
17,000 Kellogg Co. 1,115,625
150 Odwalla, Inc.(b) 2,063
10,300 Quaker Oats Co. 392,688
700 Ringer Corp.(b) 1,050
5,400 Supervalu, Inc. 153,225
14,700 Sysco Corp. 479,588
5,348 Tootsie Roll Industries 211,915
8,000 Whitman Corp. $ 183,000
5,400 Whole Foods Market, Inc.(b) 121,500
9,800 Wholesome & Hearty Foods(b) 61,250
6,666 Worthington Foods, Inc. 126,654
9,300 Wrigley Co. 523,125
==========
18,956,321
Health &
Personal Care / 8.52%
6,200 Alza Corp.(b) 160,425
5,100 American Medical Response(b) 165,750
10,800 Avon Products, Inc. 616,950
2,900 Bergen Brunswig Corp. 82,650
8,500 Biomet, Inc. 128,563
1,400 Church & Dwight, Inc. 32,025
33,555 CUC International, Inc.(b) 796,931
2,400 Idexx Laboratories, Inc.(b) 86,400
7,200 Invacare Corp. 198,000
4,700 Manor Care, Inc. 126,900
19,200 Medtronic, Inc. 1,305,600
98,800 Merck & Co., Inc. 7,829,900
150 Natures Sunshine Products 2,700
2,300 Owens & Minor, Inc. 23,575
2,900 Physician Corp. of America(b) 29,000
4,800 R.P. Scherer Corp.(b) 241,200
29,400 Schering-Plough Corp. 1,903,650
5,800 Sofamor/Danek Group(b) 176,900
6,450 St Jude Medical, Inc.(b) 274,931
2,700 Sun Healthcare Group(b) 36,450
1,300 Sunrise Medical, Inc.(b) 20,638
2,000 Target Therapeutics(b) 84,000
10,600 Transitional Hospitals Corp.(b) 102,025
1,500 Ventritex, Inc.(b) 36,938
2,550 Vivra, Inc.(b) 70,444
==========
14,532,545
Industrial Products / 2.71%
8,700 Air Products & Chemicals 601,388
2,100 BetzDearborn Inc. 122,850
34,300 Minnesota Mining & Manufacturing 2,842,613
5,000 Nalco Chemical Co. 180,625
12,500 Praxair, Inc. 576,563
3,700 Sigma Aldrich Corp. 231,019
2,500 Wellman, Inc. 42,813
==========
4,597,871
</TABLE>
...The Citizens Index Portfolio holds equities - 300 companies in all - over a
wide range of industries. If you read the list, I think you will be impressed by
the companies we hold...
10 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
CITIZENS INDEX PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Insurance / 3.34%
16,700 American General Corp. $ 682,613
8,800 Aon Corp. 546,700
13,900 Chubb Corp. 747,125
6,300 General RE Corp. 993,825
5,400 Jefferson Pilot Corp. 305,775
4,700 MGIC Investment Corp. 357,200
7,400 Providian Corp. 380,175
11,000 Safeco Corp. 433,813
6,500 St. Paul Companies, Inc. 381,063
5,700 Unum Corp. 411,825
11,600 USF&G Corp. 242,150
7,150 USLIFE Corp. 237,738
==========
5,720,002
Media / 3.03%
26,700 Comcast Corp. 475,594
7,500 Dow Jones & Co. 254,063
2,700 King World Productions(b) 99,563
7,400 Knight Ridder, Inc. 283,050
7,600 McGraw-Hill, Inc. 350,550
2,000 Meredith Corp. 105,500
7,500 New York Times Co. 285,000
1,200 Scholastic Corp.(b) 80,700
46,150 Time Warner, Inc. 1,730,625
8,500 Times Mirror Co. 422,875
30,200 Viacom, Inc.(b) 1,053,225
==========
5,140,745
Motor Vehicles / 0.62%
3,000 Cummins Engine 138,000
2,700 Federal-Mogul Corp. 59,400
3,500 Fleetwood Enterprises 96,250
9,400 Genuine Parts, Inc. 418,300
5,800 Harley Davidson, Inc. 272,600
900 SPX Corp. 34,875
1,200 Standard Products Co. 30,600
==========
1,050,025
Non-Ferrous Metals / 0.13%
10,950 Engelhard Corp. 209,419
800 IMCO Recycling, Inc. 11,700
==========
221,119
Optical & Photo / 0.14%
2,200 C-Cube Microsystems(b) 81,263
3,500 Polaroid Corp. 152,250
==========
233,513
Paper & Forest
Products / 0.79%
10,000 Alco Standard Corp. $ 516,250
1,900 Caraustar Industries, Inc. 63,175
3,300 Consolidated Papers, Inc. 162,113
10,900 Fort Howard Corp.(b) 301,794
3,000 Sealed Air Corp.(b) 124,875
6,910 Sonoco Products Co. 178,796
==========
1,347,003
Producer Goods / 3.05%
8,000 Avery-Dennison Corp. 283,000
2,500 Cincinnati Milacron, Inc. 54,688
20,300 Deere & Co. 824,688
1,400 Duriron, Inc. 37,975
18,000 Emerson Electric Co. 1,741,500
11,600 Fedders Corp. 72,500
800 ICC Technologies, Inc.(b) 4,350
1,400 Idex Corp. 55,825
9,800 Illinois Tool Works 782,775
1,000 Ionics, Inc.(b) 48,000
8,700 Keystone International, Inc. 175,088
1,800 Miller (Herman), Inc. 101,925
3,400 Millipore Corp. 140,675
1,300 Nordson Corp. 82,875
3,300 Raychem Corp. 264,413
300 Recovery Engineering, Inc.(b) 2,100
4,800 Snap-On Tools Corp. 171,000
1,600 Tecumseh Products 91,800
3,000 Tennant Co. 82,500
2,300 Timken Co. 105,513
3,000 Trinity Industries, Inc. 112,500
==========
5,235,690
Recreation &
Entertainment / 1.28%
5,400 American Greetings Corp. 153,225
600 Bell Sports Corp.(b) 3,600
5,200 Callaway Golf Co. 149,500
4,000 Coleman, Inc. (b) 55,000
12,800 Darden Restaurants, Inc.(b) 112,000
5,500 Harcourt General, Inc. 253,688
6,600 Hasbro, Inc. 256,575
2,000 Huffy Corp. 28,750
3,400 Jostens, Inc. 71,825
1,800 Luby's Cafeterias, Inc. 35,775
21,375 Mattel, Inc. 593,156
12,300 Rubbermaid, Inc. 279,825
6,300 Starbucks Corp.(b) 180,338
==========
2,173,257
</TABLE>
...All of these companies have passed our strict corporate responsibility review
so we can be pretty confident that most of them are focused on creating value
for customers, communities and shareholders not defending lawsuits or battling
consumer advocates...
See accompanying notes to financial statements. 11
<PAGE>
CITIZENS INDEX PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Retail / 6.22%
2,200 Barnes & Nobles, Inc.(b) $ 59,400
7,800 Bruno's, Inc.(b) 134,550
11,800 Charming Shoppes, Inc.(b) 59,738
7,300 Circuit City Stores 219,913
12,300 CVS Corp. 508,913
15,800 Federated Department Stores, Inc.(b) 539,175
22,200 Gap, Inc.(b) 668,775
4,400 Giant Food, Inc. 151,800
2,900 Great Atlantic & Pacific Tea 92,438
3,100 Hannaford Brothers Co. 105,400
10,400 Kroger Corp.(b) 483,600
26,100 Limited, Inc. 479,588
1,500 Longs Drug Stores 73,688
14,000 Lowe's Companies, Inc. 497,000
19,900 May Department Stores 930,325
6,200 Nordstrom, Inc. 219,713
17,800 J.C. Penney Co. 867,750
17,500 Price Costoco Co.(b) 439,688
300 Real Goods Trading Corp.(b) 1,500
6,400 Rite Aid Corp. 254,400
31,200 Sears Roebuck & Co. 1,439,100
5,600 Tandy Corp. 246,400
5,300 TJX Companies, Inc. 251,088
21,200 Toys R Us(b) 636,000
5,000 Tupperware Corp. 268,125
19,600 Walgreen Co. 784,000
9,700 Woolworth Corp.(b) 212,188
==========
10,624,255
Software &
Data Processing / 7.31%
5,300 Adobe Systems, Inc. 198,088
4,533 ACNieleson Corp. 68,562
6,400 America Online, Inc.(b) 212,800
3,500 Autodesk, Inc. 98,000
23,200 Automatic Data Processing 994,700
8,000 Block (H & R), Inc. 232,000
2,500 Broderbund Software(b) 74,375
13,600 Cognizant Corp.(b) 448,800
6,200 Deluxe Check Corp. 203,050
1,100 Dialogic Corp.(b) 34,650
13,600 Dun & Bradstreet Corp. 323,000
2,300 Harland (John H.) Co. 75,900
97,800 Microsoft Corp. 8,080,725
7,500 Moore Corp Limited 152,813
10,200 Network General Corp.(b) 308,550
10,100 Parametric Technology(b) 518,888
5,200 Qualcomm, Inc.(b) 207,350
1,700 Shared Medical Systems Corp. 83,725
1,800 Stratus Computer, Inc.(b) 92,650
5,100 Sybase, Inc.(b) 85,106
==========
12,493,732
</TABLE>
Key: (a) Cost for federal income tax purposes is the same. (b) Non-income
producing security. (c) Restricted security, see Note 4
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Steel / 0.34%
3,300 Inland Steel Industries $ 66,000
7,700 Nucor Corp. 392,700
6,700 Worthington Industries, Inc. 121,438
==========
580,138
Telephone / 10.02%
39,500 Airtouch Communications(b) 997,375
14,800 Alltel Corp. 464,350
44,800 Ameritech Corp. 2,716,000
34,900 Bell Atlantic Corp. 2,259,775
79,800 Bellsouth Corp. 3,221,925
11,300 Mobile Telecom Tech(b) 96,050
34,400 Pacific Telesis Group 1,264,200
49,400 SBC Communications, Inc. 2,556,450
14,400 Tellabs, Inc.(b) 541,800
88,600 U.S. West, Inc. 2,158,850
32,000 Worldcom, Inc.(b) 834,000
==========
17,110,775
Tires & Rubber / 0.13%
2,000 Bandag, Inc. 94,750
6,200 Cooper Tire & Rubber 122,450
=======
217,200
Transportation / 0.65%
2,900 Caliber Systems, Inc. 55,825
10,200 Federal Express Corp.(b) 453,900
4,650 Illinois Central Corp. 148,800
1,700 Roadway Services, Inc. 32,938
5,800 Ryder System, Inc. 163,125
10,900 Southwest Airlines 241,163
==========
1,095,751
Total Equities ==========
(Cost $122,840,980) 170,042,839
Short Term
Investments / 0.33%
565,000 State Street Bank & Trust
Total Short Term
Investments (Cost $565,000) 565,000
Total Investments ===========
(Cost $122,840,980 )(a) 170,607,839
Other assets,
less liabilities 291,493
==========
Net Assets $170,899,332
</TABLE>
...In our opinion, social responsibility is good business and the performance of
our Index Portfolio proves it. From year to year you should expect little change
in the names that you see here. In 1996 we added 22 names to the index and
removed 18 others.
12 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
CITIZENS EMERGING GROWTH PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Equities / 86.52%
Amusements / 2.97%
51,095 Regal Cinemas, Inc.(b) $ 1,571,171
Broadcasting &
Communications / 5.23%
25,300 Ascend Communications, Inc.(b) 1,571,763
47,850 Evergreen Media(b) 1,196,250
============
2,768,013
Computer, Office &
Business Equipment / 4.73%
42,400 Corporate Express, Inc.(b) 1,248,150
48,820 Sun Microsystems, Inc.(b) 1,254,064
============
2,502,214
Construction &
Housing / 6.00%
23,190 Doubletree Corp.(b) 1,043,550
35,640 HFS, Inc.(b) 2,129,490
============
3,173,040
Electronics / 17.17%
20,560 Altera Corp.(b) 1,494,455
49,120 BMC Industries, Inc. 1,547,280
79,700 Cirrus Logic, Inc.(b) 1,235,350
7,820 Intel Corp.(b) 1,023,931
40,400 Pairgain Technologies, Inc.(b) 1,229,675
50,000 Read Rite Corp.(b) 1,262,500
42,300 Ultrak, Inc.(b) 1,290,150
============
9,083,34
Financial Services
& Insurance / 10.31%
26,430 Comerica, Inc. 1,384,271
25,000 Greenpoint Financial Corp.(b) 1,187,500
55,270 Schwab Charles Corp. 1,768,640
30,500 Coast Savings Financial, Inc.(b) 1,117,063
============
5,457,474
Healthcare / 11.02%
87,600 Amisys Managed Care Sys, Inc.(b) 1,489,200
42,240 Envoy Corp.(b) 1,584,000
25,000 Medical Resources, Inc.(b) 284,375
39,610 Nitinol Medical Technologies, Inc.(b) 495,125
20,000 Oxford Health Plans, Inc.(b) 1,171,250
40,000 Perclose, Inc.(b) 810,000
============
5,833,950
Key: (a) Cost for federal income tax purposes is the same.
(b) Non-income producing security.
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
Industrial / 1.94%
51,435 Miller Industries, Inc.(b) $ 1,028,700
Retail / 3.70%
26,220 Saks Holdings, Inc.(b) 707,940
26,360 TJX Companies, Inc.(b) 1,248,805
============
1,956,745
Services / 12.35%
67,760 Accustaff, Inc.(b) 1,431,430
34,800 Apac Teleservices, Inc.(b) 1,335,450
11,730 Computer Task Group, Inc.(b) 505,856
53,410 Corestaff, Inc.(b) 1,265,149
32,410 Romac International, Inc.(b) 713,020
80,840 Telespectrum Worldwide, Inc.(b) 1,283,335
============
6,534,241
Software &
Data Processing / 11.10%
25,950 Citrix Systems, Inc.(b) 1,013,672
31,050 Computer Assoc. Intl., Inc. 1,544,738
40,400 Dataworks Corp.(b) 1,020,100
42,750 HNC Software, Inc.(b) 1,335,938
20,000 Peoplesoft, Inc.(b) 958,750
============
5,873,197
Total Equities ============
(Cost $44,894,017) 45,782,085
Short Term
Investments / 20.07%
10,620,000 State Street Bank & Trust
Total Short Term
Investments
(Cost $10,620,000) 10,620,000
Total Investments ============
(Cost $55,514,017)(a) 56,402,085
Other assets,
less liabilities (5,031,893)
============
Net Assets $ 52,917,472
</TABLE>
...Unlike the Index Portfolio which invests in a fixed list of well chosen
names, the Emerging Growth Portfolio is actively managed. Rick Little and the
team at GMG/Seneca are continuously adding new holdings to the Portfolio and
selling those that have achieved their price targets, or no longer fix the
"earnings momentum" model that we use to manage the Portfolio...
See accompanying notes to financial statements. 13
<PAGE>
CITIZENS GLOBAL EQUITY PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Equities / 85.54%
Belgium / 3.89%
2,186 Barco NV (Technologies)(b) $ 377,568
2,000 D'Ieteren Trading (Auto Dealers)(b) 405,957
===========
783,525
Brasil / 1.46%
23,000 Multicanal Participacoes (Cable Television)(b) 294,688
France / 6.40%
1,300 Ecco SA (Employment Services) 328,241
1,000 Hermes International (Apparel & Accessories)(b) 277,537
2,000 Legrand (Misc. Manufacturing) 340,754
4,000 Salomon SA (Sporting Goods) 343,066
===========
1,289,597
Germany / 3.86%
5,500 Deutsche Telekom AG (Telecommunications)(b) 112,063
14,000 Fresenius Med. Care Aktiengesel (Med. Products)(b) 393,750
1,950 SAP AG (Computer Software) 272,453
===========
778,265
Great Britain / 7.64%
35,000 BAA (Airport Mgmt.) 290,218
36,000 Powerscreen Intl. (Industrial Machinery & Equipment) 348,467
32,000 Next (Apparel & Accessories) 311,941
24,500 National Westminster (Depository Institutions)(b) 287,939
16,000 Reed International (Publishing) 300,977
===========
1,539,541
Hong Kong / 2.54%
270,833 Hongkong & Shanghai Hotels (Construction) 511,237
Ireland / 4.10%
46,041 Bank of Ireland (Banking) 419,762
78,900 Independent News (Media) 407,804
===========
827,566
Italy / 2.97%
15,200 Bvlgari SPA (Watches & Jewelry)(b) 308,609
112,000 Telecom Italia (Telecommunications)(b) 290,890
===========
599,499
Japan / 5.84%
16,000 Canon, Inc. (Business Equipment) 353,683
6,200 Familymart Co. (Convenience Stores) 247,872
26,000 NEC Corp. (Electronic Products) 314,308
4,000 TDK Corp. (Electronic Components) 260,772
===========
1,176,634
Mexico / 3.67%
160,000 GPO Fin Banamex AC (Banking)(b) $ 304,065
5,500 Telefonos De Mexico SA (Telecommunications) 181,500
16,000 Tubos De Acero De Mexico SA
(Steel Manufacturing)(b) 254,000
===========
739,565
Netherlands / 4.15%
3,927 Aegon NV (Insurance) 250,427
2,511 OCE V/D Grinten NV (Engineering & Office Products) 272,843
15,000 Ver Ned Uitgevers (Media) 313,640
===========
836,911
Norway / 4.41%
14,900 Schibsted ASA (Publishing)(b) 271,725
40,000 Tomra Systems (Recycling Vending Machines)(b) 617,715
===========
889,440
Peru / 1.40%
15,000 Telefonica Del Peru SA (Telecommunications) 283,125
Philippines / 2.68%
235,000 Ayala Corp. (Multi-industry) 254,658
555,000 C&P Homes, Inc. (Home Builder)(b) 284,886
===========
539,544
Portugal / 0.85%
6,000 Portugal Telecom (Telecommunications)(b) 171,042
Singapore / 1.67%
25,000 Development Bank of Singapore
(Development Banking) 337,669
Spain / 3.84%
55 Aguas De Barcelona (Water Management) 2,288
6,500 Bco Santander SA (Banking) 416,060
15,300 Telefonica De Esp (Telecommunications)(b) 355,321
===========
773,668
United States / 24.19%
12,000 Chiron Corp. (Healthcare Products)(b) 223,500
6,000 Computer Assoc. Intl, Inc. (Computer Software) 298,500
15,000 Group Industrial Maseca SA (Corn Flour)(b) 286,875
4,500 Gucci Group NV (Apparel & Accessories)(b) 287,438
6,000 Intel Corp. (Microprocessors) 785,625
12,000 Kenneth Cole Productions, Inc. (Footwear)(b) 186,000
3,000 Luxottica Group SPA (Eyeglass Frames) 156,000
6,500 Merck & Co, Inc. (Pharmaceuticals) 515,125
66,900 Morgan Stanley Group, Inc. (Financial Services)(b) 259,238
6,600 Southwest Airlines Co. (Regional Airline) 146,025
5,000 Sun Microsystems, Inc.(Computers)(b) 128,438
</TABLE>
14 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
CITIZENS GLOBAL EQUITY PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Share Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
United States (con't)
5,000 Suntrust Banks, Inc. (Commercial Banking) $ 246,250
8,200 Telecomunicacoes Brasileiras (Telecommunications) 627,300
6,000 Tommy Hilfiger Corp. (Apparel)(b) 288,000
17,000 Worldcom, Inc.(Telecommunications)(b) 443,063
===========
4,877,375
Total Equities
(Cost $14,540,059) 17,248,890
Short Term
Investments / 17.64%
3,557,000 State Street Bank & Trust
Total Short
Term Investments
===========
(Cost $3,557,000) 3,557,000
Total Investments ===========
(Cost $ 18,097,059)(a) 20,805,890
Other assets,
less liabilities (641,928)
===========
Net Assets $ 20,163,962
Key: (a) Cost for federal income income tax purposes.
(b) Non-income producing security.
...In the Citizens Global Equity Portfolio country selection is as important as
company selection. Eighteen countries are included at 12/31/96...
</TABLE>
MUIR CALIFORNIA TAX-FREE INCOME PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Municipal Securities / 96.28% Maturity Date, Rating (b)
Affordable Housing / 19.28%
370,000 CA Housing Finance Agency Revenue 2/1/00, AA- $ 388,612
740,000 CA Housing Finance Agency Revenue 2/1/05, AA- 774,155
500,000 CA Housing Finance Agency Revenue 8/1/00, AA- 512,889
100,000 CA State Veterens Housing 4/1/07, A+ 100,926
10,000 Los Angeles CA Single Family Homes 6/1/05, AAA 10,604
35,000 Riverside County CA Single Family Mortgage
10/1/16, AAA 36,426
500,000 Thousand Oaks CA Redevelopment Agency Tax
12/1/10, AAA 508,184
============
2,331,796
Education & Health / 15.48%
550,000 California State Public Works Lease 6/1/14, Ap 548,141
500,000 Duarte CA Certificate of Participation 4/1/13, BAA1 502,834
500,000 Escondido CA United High Sch. Dist. 11/1/09, AAA 520,614
250,000 Madera County CA Cert. of Part. 3/15/10, AAA 279,981
500,000 University of Calf. Revenue Bonds 9/1/16, AAA 568,310
============
1,897,729
Environmental / 61.53%
500,000 Burbank CA Waste Water Treatment Revenue
6/1/15, AAA 497,683
500,000 East Bay CA Municipal Utilities Dist. 001 4/1/15, AA 469,745
440,000 Kings County CA Waste Mgmt. Aty. 10/1/99, BBB+ 456,742
500,000 Los Angeles CA Dept. Of Airports 5/15/09, AAA 522,151
500,000 LA Calf. Waste Water Sytms Rev. 2/1/12, AAA 483,022
500,000 LA County CA Public Works 10/1/15, AA 513,684
300,000 Ontario CA Redevelopment Financing
Auth. Rev. 8/1/11, AAA 350,492
500,000 Metropolitan Water District So. CA 7/1/13, AAA 478,864
500,000 Midpeninsula Reg. Open Space Dist. 9/1/14, AAA 516,341
500,000 Mountain View CA Shoreline Park 8/1/10, AAA 511,097
515,000 Pasadena CA Waste Water Revenue 7/1/18, AA 477,864
600,000 Santa Margarita Dana Point CA 7/1/14, AAA 592,631
500,000 Southgate CA Public Financing Auth. 10/1/09, AAA 510,616
500,000 Tulare CA Sewer Revenue 11/15/12, AAA 511,225
============
6,892,155
Total Municipal
Securities ============
(Cost $11,383,574) 11,643,830
</TABLE>
See accompanying notes to financial statements. 15
<PAGE>
MUIR CALIFORNIA TAX-FREE INCOME PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Short Term
Investments / 1.38%
7,786 Goldman Sachs ITA California 12/31/99 $ 7,786
159,085 Municipal Fund for California Inv., Inc. 12/31/99 159,085
Total Short Term
Investments ============
(Cost $166,872) 166,872
Total Investments ============
(Cost $11,550,446)(a) 11,810,701
Other assets,
less liabilities 282,869
Net Assets $ 12,093,570
============
</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.
...Muir California Tax Free Income Portfolio invests in municipal securities for
three primary purposes: housing, environment and education. If you look at the
bonds we hold and their ratings and maturities, you will see intermediate
maturities and relatively high credit quality. This is consistent with our
lower-risk strategy...
CITIZENS E [bullet] FUND PORTFOLIO
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
Commercial Paper / 90.48% Yield, Maturity Date
500,000 Allergan 5.6%, 1/17/97 $ 498,756
800,000 American Express Credit Corp. 5.33%, 1/09/97 799,052
300,000 American Greetings Corp. 5.4%, 1/8/97 299,685
500,000 American Greetings Corp. 5.5%, 1/9/97 499,389
100,000 Aristar, Inc. 5.38%, 1/9/97 99,880
700,000 Aristar, Inc. 5.41%, 2/7/97 696,108
800,000 Bank of New York 5.3%, 1/10/97 798,940
260,000 Chubb Capital Corporation 5.4%, 1/6/97 259,805
150,000 Chubb Capital Corporation 5.52%, 1/27/97 149,402
400,000 Consolidated Natural Gas Co. 5.5%, 1/15/97 399,144
650,000 Cooperative Assoc. Tractor Dealers 6.0%, 1/06/97 649,458
175,000 Cooperative Assoc. Tractor Dealers 5.35%, 1/13/97 174,688
800,000 Countrywide Funding Corp. 5.42%, 1/21/97 797,591
270,000 Dean Witter, Discover & Co. 5.31%, 1/7/97 269,761
150,000 Dean Witter, Discover & Co. 5.31%, 1/15/97 149,690
400,000 Dean Witter, Discover & Co. 5.31%, 1/17/97 399,056
400,000 Green Tree Financial Corp. 5.7%, 1/29/97 398,227
600,000 Harley Davidson 5.42%, 2/5/97 596,838
800,000 Idaho Power Co. 5.4%, 1/7/97 799,280
250,000 John Hancock Capital Corp. 5.45%, 1/17/97 249,394
800,000 Michigan Consolidated Gas Co. 6.05%, 1/6/97 799,328
200,000 New Jersey Natural Gas Co. 6.1%, 1/6/97 199,831
700,000 New York Times 5.3%, 1/21/97 697,939
570,000 Nicor, Inc. 5.3%, 2/3/97 567,231
700,000 Pitney Bowes Credit Corp. 5.27%, 2/7/97 696,209
120,000 Pitney Bowes Credit Corp. 5.36%, 2/20/97 119,107
250,000 R.R. Donnelley & Sons Co. 5.3%, 1/21/97 249,264
300,000 Safeco Credit Company, Inc. 5.28%, 1/15/97 299,384
500,000 Seven Hills Funding Corp. 5.47%, 1/23/97 498,329
800,000 Sonoco Products Co. 5.35%, 1/17/97 798,098
360,000 Student Loan Corp. 5.3%, 1/17/97 359,152
800,000 U.S. Central Credit Union 5.33%, 1/27/97 796,920
230,000 US West Communications, Inc. 5.3%, 1/10/97 229,695
185,000 US West Communications, Inc. 5.38%, 1/24/97 184,364
200,000 Xerox Credit Corp. 5.3%, 1/24/97 199,323
500,000 Xerox Credit Corp. 5.31%, 1/16/97 498,894
Total Commercial Paper ===========
(Cost $16,177,211) 16,177,211
Certificates of
Deposit / 0.56%
100,000 South Shore Bank of Chicago 5.15%, 12/18/97 100,000
Total Certificates Of ===========
Deposit (Cost $100,000) 100,000
</TABLE>
16 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
E [bullet] FUND
Statement of Investments December 31, 1996 (unaudited)
<TABLE>
<CAPTION>
---------------- -------------------- --------------
Principal Amount Security Description Value (Note 1)
---------------- -------------------- --------------
<S> <C> <C>
U.S. Government
Agencies / 4.72%
415,000 Federal Home Loan Bank 5.25%, 1/2/97 $ 414,939
270,000 Federal Home Loan Mortgage Assn. 269,828
5.3%-5.44%, 1/3/97-1/6/97
160,000 Federal National Mortgage Assn. 5.625%, 1/2/97 159,975
Total U.S. Government ===========
Agencies (Cost $844,743) 844,743
Small Business
Admin.(b)(c) / 1.60%
282,841 Variable Rate Notes (Cost $285,703)
6.75%-9.125%, 4/25/97-3/25/14 285,703
Total Investments ===========
(Cost $17,407,657)(d) 17,407,657
Other assets,
less liabilities 470,899
===========
Net Assets $17,878,556
</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.
(d) Cost for federal income tax purposes is the same.
...The E [bullet] fund is a money market portfolio like our original Working
Assets Money Market Portfolio which is listed in the front. The difference with
the E [bullet] fund is that it is a transaction account and so our maturities
are kept even shorter than in Working Assets. The E [bullet] fund's extra return
above the yield comes from the unique E [bullet] fund Refund, the 1% of debit
card charges rebated to the Portfolio by Citizens Securties. The E [bullet] fund
Refund does not appear on the portfolio listing because the Portfolio receives
the money when our shareholders spend, unlike most returns that result from
shareholders savings...
See accompanying notes to financial statements. 17
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities - December 31, 1996 (unaudited)
---------------------- ---------------- --------------- -----------------
Working Assets Citizens Citizens Citizens Emerging
Money Market Portfolio Income Portfolio Index Portfolio Growth Portfolio
---------------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Assets
Investments in securities, at market value
(Identified cost $96,259,795,
$33,549,880, $123,405,980, and
$55,514,017 respectively) (Note 1) $96,259,795 $34,114,387 $170,607,803 $56,402,085
Cash 731,605 741 914 6,786
Receivable for:
Interest 218,323 565,965 81 1,519
Dividends - - 224,157 12,277
Fund shares sold - - - 4,200
Investment securities sold 219,469 - - -
Other 3,920 - 51
Deferred organization costs (Note 1) 23,730 - 23,320 -
Prepaid expenses 41,396 4,334 43,057 39,779
----------- ----------- ------------ -----------
Total Assets 97,494,318 34,689,347 170,899,332 56,466,697
Liabilities
Payables:
Investment securities purchased - - - 3,549,226
Capital shares redeemed 43,609 - - -
Distributions 346,337 175,861 - -
Accrued expenses 33,980 1,549 - -
----------- ----------- ------------ -----------
Total Liabilities 423,926 177,410 - 3,549,226
Net Assets $97,070,392 $34,511,937 $170,899,332 $52,917,472
----------- ----------- ------------ -----------
Retail Shares
Net assets $80,655,246 $34,511,937 $161,869,981 $52,917,472
Shares outstanding 80,655,246 3,278,486 10,787,356 3,952,763
Net asset value, offering and
redemption price per share $1.00 $10.53 $15.01 $13.39
----------- ----------- ------------ -----------
Institutional Shares
Net assets $16,415,146 - $9,029,351 -
Shares outstanding 16,415,146 - 734,470 -
Net asset value, offering and
redemption price per share $1.00 - $12.29 -
----------- ----------- ------------ -----------
Net Assets
At December 31, 1996 net assets consisted of:
Paid-in capital $97,070,392 $34,292,301 $123,919,876 $51,782,422
Undistributed net investment income - (1,343) (517,661) (659,212)
Accumulated realized gain (loss) - (343,528) 295,295 906,194
Net unrealized appreciation of investments - 564,507 47,201,823 888,068
=========== =========== ============ ===========
$97,070,392 $34,511,937 $170,899,332 $52,917,472
</TABLE>
18 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities - December 31, 1996 (unaudited)
---------------- ------------------------ ------
Citizens Global Muir California Tax-Free
Equity Portfolio Income Portfolio E [bullet] Fund
---------------- ------------------------ ------
<S> <C> <C> <C>
Assets
Investments in securities, at market value
(Identified cost $17,743,205, $11,550,087,
and $17,407,542 respectively) (Note 1) $20,795,728 $11,810,701 $17,407,542
Cash 4,620 - 259,604
Receivable for:
Interest 509 211,633 15,377
Dividends 18,660 - -
Investment securities sold - - 67,712
Other 13,161 - 16,645
Deferred organization costs (Note 1) - - 159,189
Prepaid expenses and others 3,539 109,588 42,116
----------- ----------- -----------
Total Assets 20,836,216 12,131,922 17,968,185
Liabilities
Payables:
Investment securities purchased 659,918 - -
Capital shares redeemed - - -
Distributions - 38,352 89,629
Other 2,960 - -
Accrued expenses 9,375 - -
----------- ----------- -----------
Total Liabilities 672,253 38,352 89,629
Net Assets
Net assets $20,163,962 $12,093,570 $17,878,556
Shares outstanding 1,639,976 754,548 17,878,556
Net asset value, offering and
redemption price per share $12.30 $16.03 $1.00
----------- ----------- -----------
Net Assets
At December 31, 1996 net assets consisted of:
Paid-in capital $17,495,299 $12,197,620 $17,878,556
Undistributed net investment income (115,766) 76,939 -
Accumulated realized gain (loss) (268,093) (441,603) -
Net unrealized appreciation of investments 3,052,522 260,615 -
=========== =========== ===========
$20,163,962 $12,093,570 $17,878,556
</TABLE>
...We looked at the schedule of investments. This is the first line on this
balance sheet. This represents the bulk of our assets. Next, we have small
amounts of cash and accounts receivable. On the liabilities side, we have very
few bills-mostly just accounts payable for securities we have purchased but have
not yet paid for (by law we have to pay for securities purchased within three
days)...
See accompanying notes to financial statements. 19
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations - December 31, 1996 (unaudited)
---------------------- ---------------- --------------- -----------------
Working Assets Citizens Citizens Citizens Emerging
Money Market Portfolio Income Portfolio Index Portfolio Growth Portfolio
---------------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Investment Income
Interest $2,588,147 $1,297,662 $ 1,935 $ 35,951
Dividends - - 1,351,802 28,806
----------- ------------ ------------- -----------
Total investment income 2,588,147 1,297,662 1,353,737 64,758
Expenses
Investment management fees (Note 2) 166,219 109,688 391,380 231,588
Transfer agent fees 113,822 22,510 99,076 48,688
Custody and accounting fees 28,584 14,361 37,322 14,562
Distribution expense (Note 2) 79,165 42,188 185,404 57,897
Administration expense (Note 2) 125,527 35,404 590,752 65,636
Legal & audit fees 7,999 3,756 12,189 3,513
Registration fees 8,235 5,471 8,882 6,154
Trustees' fees and expenses 2,782 2,759 2,890 2,776
Printing and postage 8,591 2,285 12,684 5,719
Dues 3,878 1,122 4,949 2,711
Insurance 607 207 961 222
Other expenses 41,576 16,885 51,461 19,881
Amortization of organization costs 2,506 - 2,471 -
----------- ------------ ------------- -----------
Total expenses 589,491 256,636 1,400,423 459,347
Fee Reductions (Note 6) (28,584) (14,361) (37,322) (14,562)
Reimbursement by Adviser (Note 2) (21,016) - - -
Net expenses 539,891 242,275 1,363,101 444,785
----------- ------------ ------------- -----------
Net investment income (loss) 2,048,256 1,055,387 (9,364) (380,027)
Realized and Unrealized Gain (Loss) on Investments
Realized gain/(loss) on investments - 87,772 459,441 624,621
Increase in unrealized
appreciation on investments - 702,561 18,908,802 (942,948)
----------- ------------ ------------- -----------
Net realized and unrealized
gain on investments - 790,333 19,368,243 (318,328)
Net increase in net =========== ============ ============= ===========
assets resulting from operations $ 2,048,256 $ 1,845,720 $ 19,358,879 $ (698,355)
</TABLE>
...Yum - Here we come to the bottom line. This statement tells us exactly how
each portfolio did for the six months. The top line here is "income". These are
the interest and dividends (and E [bullet] fund Refund in the case of the E
[bullet] fund) that we have received from our investing activities...
20 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations - December 31, 1996 (unaudited)
---------------- ------------------------ ------
Citizens Global Muir California Tax-Free
Equity Portfolio Income Portfolio E [bullet] Fund
---------------- ------------------------ ------
<S> <C> <C> <C>
Investment Income
Interest $ 11,216 $ 330,043 $ 400,909
Dividends 71,590 5,480 -
Other income (Note 2) - - 36,065
--------- --------- ---------
Total income 82,806 335,523 436,974
Expenses
Investment management fees (Note 2) 91,327 40,772 7,567
Transfer agent fees 18,952 16,247 22,815
Custody and accounting fees 27,887 18,196 9,801
Distribution expense (Note 2) 22,832 15,682 -
Administration expense (Note 2) 27,258 17,152 10,480
Legal & audit fees 2,240 3,067 728
Registration fees 5,671 314 6,288
Trustees' fees and expenses 2,679 3,915 3,059
Printing and postage 2,277 2,855 2,107
Dues 790 551 1,383
Insurance 96 120 76
Other expenses 33,288 19,385 22,956
Amortization of organization costs - - 18,033
--------- --------- ---------
Total expenses 235,297 138,256 105,295
Fee Reductions (Note 6) (27,887) (18,196) (9,801)
Reimbursement by Adviser (Note 2) - (26,936) (95,493)
Net expenses 207,410 93,124 -
--------- --------- ---------
Net investment income (loss) (124,604) 242,399 436,974
Realized and Unrealized Gain (Loss) on Investments
Realized gain (loss) on investments and foreign
currency transactions 137,577 94,724 -
Increase in unrealized appreciation on investments 639,523 207,806 -
Net realized and unrealized gain on investments 777,100 302,530 -
========= ========= =========
Net increase in net assets resulting from operations $ 652,495 $ 544,928 $ 436,974
</TABLE>
...Subtract the expense of operations, fee reductions and reimbursements by the
Adviser - that, dear shareholder, is where my contract requires me to pay into
the Portfolio to ensure that expenses do not exceed a certain level - and you
have the first bottom line: the Net investment income. Added to that is the
result of capital changes - if the securities rise or fall in value during the
six months. And that finally equals the increase in wealth that our shareholders
gained from investment in the Portfolio...
See accompanying notes to financial statements. 21
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
----------------------------------------------
Working Assets Money Market Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) $ 2,048,256 $ 4,415,160
Realized gain (loss) on investments - -
Unrealized appreciation (depreciation)
of investments - -
Change in net assets from ------------ ------------
investment activities 2,048,256 4,415,160
Distributions to shareholders from:
Net investment income-Retail (1,657,648) (4,158,569)
Net investment income-Institutional (390,609) (256,591)
Net realized gain on investments-Retail - -
------------ ------------
Total distributions (2,048,256) (4,415,160)
Increase (decrease) in net assets
resulting from capital share transactions (Note 5) 4,205,379 (4,746,296)
------------ ------------
Total increase (decrease) in net assets 4,205,379 (4,746,296)
Net Assets
Beginning of year 92,865,013 97,611,309
============ ============
End of year $97,070,392 $92,865,013
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
Citizens Income Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) $ 1,055,387 $ 1,995,790
Realized gain (loss) on investments 87,772 53,207
Unrealized appreciation (depreciation)
of investments 702,561 (422,710)
Change in net assets from ------------ ------------
investment activities 1,845,720 1,626,287
Distributions to shareholders from:
Net investment income-Retail (1,057,709) (1,995,790)
Net investment income-Institutional - -
Net realized gain on investments-Retail - -
------------ ------------
Total distributions (1,057,709) (1,995,790)
Increase (decrease) in net assets
resulting from capital share transactions (Note 5) 1,448,074 2,523,000
------------ ------------
Total increase (decrease) in net assets 2,236,085 2,153,497
Net Assets
Beginning of year 32,275,852 30,122,355
============ ============
End of year $34,511,937 $32,275,852
</TABLE>
...Citizens Trust grew significantly in the last six months. This report tells
you exactly where that growth came from. It combines the bottom line from the
Statement of Changes on the previous pages with the impacts of purchase and
redemptions of fund shares including payment of dividends. It then compares our
results for the first six months of our fiscal year to our full last fiscal
year. This way you can spot trends in our opinion.
For example, our Money Market Portfolio has turned around its purchases. Last
year it shrunk in size by over $4 million dollars. However, in the last six
months it grew by over $4 million, about half of which came from earnings...
22 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
----------------------------------------------
Citizens Index Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) ($9,364) $884,927
Realized gain (loss) on investments 459,441 337,150
Unrealized appreciation (depreciation)
of investments 18,908,802 24,446,708
Change in net assets from ------------ ------------
investment activities 19,358,879 25,668,785
Distributions to shareholders from:
Net investment income-Retail (633,846) (289,938)
Net investment income-Institutional (65,259) -
Net realized gain on investments (1,036,303) (535,008)
------------ ------------
Total distributions (1,735,409) (824,946)
Increase (decrease) in net assets
resulting from capital share
transactions (Note 5) 8,771,883 13,564,332
------------ ------------
Total increase (decrease) in net assets 26,395,354 38,408,171
Net Assets
Beginning of year 144,503,978 106,095,807
End of year $170,899,332 $144,503,978
============ ============
Undistributed net investment income ============ ============
End of year - $690,075
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
Citizens Emerging Growth Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) ($380,027) ($321,881)
Realized gain (loss) on investments 624,621 5,895,322
Unrealized appreciation (depreciation)
of investments (942,948) 1,140,522
Change in net assets from ----------- -----------
investment activities (698,355) 6,713,963
Distributions to shareholders from:
Net investment income-Retail - -
Net investment income-Institutional - -
Net realized gain on investments (4,391,320) (1,851,960)
----------- -----------
Total distributions (4,391,320) (1,851,960)
Increase (decrease) in net assets
resulting from capital share
transactions (Note 5) 21,597,869 20,909,575
----------- -----------
Total increase (decrease) in net assets 16,508,195 25,771,578
Net Assets
Beginning of year 36,409,277 10,637,699
End of year $52,917,472 $36,409,277
Undistributed net investment income =========== ===========
End of year - -
</TABLE>
...The Citizens Index earned $19 million in the last six months and had new
investments of almost $9 million. Why should you care? A Portfolio that has
heavy redemptions may be forced to sell securities in an untimely way in order
to meet its obligations. A Portfolio with large purchases may go through a
period of "digestion" to get all its new assets in the market...
See accompanying notes to financial statements. 23
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
----------------------------------------------
Citizens Global Equity Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) ($124,604) ($120,143)
Realized gain (loss) on investments
and foreign currencies 137,577 (271,000)
Unrealized appreciation (depreciation)
of investments and foreign currencies 639,523 1,867,659
Change in net assets from ----------- -----------
investment activities 652,495 1,476,516
Distributions to shareholders from:
Net investment income - -
Net realized gain on investments - (126,086)
----------- -----------
Total distributions - (126,086)
Increase (decrease) in net assets
resulting from capital share
transactions (Note 5) 3,916,134 4,741,741
----------- -----------
Total increase (decrease) in net assets 4,568,630 6,092,171
Net Assets
Beginning of year 15,595,333 9,503,162
=========== ===========
End of year $20,163,962 $15,595,333
Undistributed net investment income =========== ===========
End of year - -
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
Muir California Tax-Free Income Portfolio
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net investment income (loss) $242,399 $578,826
Realized gain (loss) on investments
and foreign currencies 94,724 175,608
Unrealized appreciation (depreciation)
of investments and foreign currencies 207,806 (53,230)
Change in net assets from ----------- -----------
investment activities 544,928 701,204
Distributions to shareholders from:
Net investment income (165,460) (578,826)
Net realized gain on investments - -
----------- -----------
Total distributions (165,460) (578,826)
Increase (decrease) in net assets
resulting from capital share
transactions (Note 5) (1,507,164) (2,142,157)
----------- -----------
Total increase (decrease) in net assets (1,127,696) (2,019,779)
Net Assets
Beginning of year 13,221,266 15,241,045
=========== ===========
End of year $12,093,570 $13,221,266
Undistributed net investment income =========== ===========
End of year $76,939 -
</TABLE>
24 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
----------------------------------------------
E [bullet] fund
----------------------------------------------
For the six months ended For the year ended
December 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Operations
Net income (loss) $ 436,974 $ 238,610
Realized gain (loss) on investments - -
Unrealized appreciation (depreciation)
of investments - -
Change in net assets from ----------- -----------
investment activities 436,974 238,610
Distributions to shareholders from:
Net income (436,974) (238,610)
Net realized gain on investments - -
----------- -----------
Total distributions (436,974) (238,610)
Increase (decrease) in net assets
resulting from capital share
transactions (note 5) 6,796,334 11,082,222
----------- -----------
Total increase (decrease) in net assets 6,796,334 11,082,222
Net Assets
Beginning of year 11,082,222 -
=========== ===========
End of year $17,878,556 $11,082,222
</TABLE>
*Commencement of operations July 1, 1995
See accompanying notes to financial statements. 25
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-----------------------------------------------------------------
Muir California Tax-Free Income Portfolio
-----------------------------------------------------------------
For the six For the year For the year For the period
months ended ended ended 4/1/94
Dec. 31, 1996 June 30, 1996 June 30, 1995 to 6/30/94
(unaudited)
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $15.64 $15.53 $15.43 $15.71
------- ------- ------- -------
Income (loss) from
investment operations
Net investment income 0.30 0.62 0.67 0.18
Net gain (loss) on securities
(both realized and unrealized) 0.39 0.11 0.10 0.01
------- ------- ------- -------
Total from investment operations 0.69 0.73 0.77 0.19
Less distributions
Dividends
(from net investment income) (0.30) (0.62) (0.67) (0.32)
Distributions
(from net realized gains) - - - (0.15)
------- ------- ------- -------
Total distributions (0.30) (0.62) (0.67) (0.47)
======= ======= ======= =======
Net asset value, end of period $16.03 $15.64 $15.53 $15.43
Total return 4.46% 4.71% 5.15% 5.09%*
Ratios and Supplemental Data
Net assets,
end of period (thousands) $12,094 $13,221 $15,241 $17,276
Ratio of expenses to
average net assets 1.53%* 1.55% 1.25% 1.25%*
Ratio of expenses to
average net assets
prior to reimbursement 1.97%* 1.87% 1.74% 1.86%*
Ratio of net income (loss)
to average net assets 3.98%* 3.98% 4.37% 4.70%*
Ratio of net income (loss) to
average net assets
prior to reimbursement 3.53%* 3.66% 3.88% 4.09%*
Portfolio turnover rate 48.62% 83.12% 74.94% 38.29%
</TABLE>
-------------------------------
Muir California Tax-Free
Income Portfolio
-------------------------------
For the year For the year
ended ended
March 31, 1994 March 31, 1993
Selected Per-Share Data
Net asset value, beginning of period $16.67 $15.76
------- -------
Income (loss) from
investment operations
Net investment income 0.84 0.90
Net gain (loss) on securities
(both realized and unrealized) (0.79) 1.00
------- -------
Total from investment operations 0.05 1.90
Less distributions
Dividends
(from net investment income) (0.86) (0.91)
Distributions
(from net realized gains) (0.15) (0.08)
------- -------
Total distributions (1.01) (0.99)
======= =======
Net asset value, end of period $15.71 $16.67
Total return 0.04% 12.58%
Ratios and Supplemental Data
Net assets,
end of period (thousands) $17,532 $15,455
Ratio of expenses to
average net assets 0.75% 0.46%
Ratio of expenses to
average net assets
prior to reimbursement 1.62% 1.87%
Ratio of net income (loss)
to average net assets 4.98% 5.59%
Ratio of net income (loss) to
average net assets
prior to reimbursement 4.11% 4.18%
Portfolio turnover rate 31.04% 36.24%
* Annualized
...Here's a summary of much of the data contained in the large numbers of the
previous reports, scaled down to simpler terms. Information about income, gains
and losses, costs and returns is stated this time for each share. It shows the
trends over the last five years, as well as the infomation for the recent six
months ended 12/31/96...
26 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-------------------------------------------------------------
Citizens Income Portfolio
-------------------------------------------------------------
For the six For the year For the year For the year
months ended ended ended ended
Dec. 31, 1996 June 30, 1996 June 30, 1995 June 30, 1994
(unaudited)
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $10.28 $10.38 $10.04 $10.60
------- ------- ------- -------
Income (loss) from
investment operations
Net investment income 0.33 0.66 0.65 0.55
Net gain (loss) on securities
(both realized and unrealized) 0.25 (0.10) 0.36 (0.54)
------- ------- ------- -------
Total from investment operations 0.58 0.56 1.01 0.01
Less distributions
Dividends
(from net investment income) (0.33) (0.66) (0.65) (0.55)
Distributions
(from net realized gains) - - (0.02) (0.02)
------- ------- ------- -------
Total distributions (0.33) (0.66) (0.67) (0.57)
======= ======= ======= =======
Net asset value, end of period $10.53 $10.28 $10.38 $10.04
Total return 5.71% 5.48% 10.45% 5.09%
Ratios and Supplemental Data
Net assets,
end of period (thousands) $34,512 $32,276 $30,122 $24,410
Ratio of expenses
to average net assets 1.39%ss. 1.43% 1.35% 1.25%
Ratio of expenses
to average net assets
prior to reimbursement 1.39%ss. 1.48% 1.48% 2.01%
Ratio of net income (loss) to
average net assets 6.07%ss. 6.26% 6.47% 5.43%
Ratio of net income (loss) to
average net assets
prior to reimbursement 6.07%ss. 6.21% 6.34% 4.68%
Portfolio turnover rate 19.02% 41.36% 46.03% 52.62%
</TABLE>
<TABLE>
<CAPTION>
---------------------------------
Citizens Income Portfolio
---------------------------------
For the year For the year
ended ended
June 30, 1993 June 30, 1992*
<S> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $10.07 $10.00
------- ------
Income (loss) from
investment operations
Net investment income 0.46 0.01
Net gain (loss) on securities
(both realized and unrealized) 0.54 0.07
------- ------
Total from investment operations 1.00 0.08
Less distributions
Dividends
(from net investment income) (0.47) (0.01)
Distributions
(from net realized gains) - -
------- ------
Total distributions (0.47) (0.01)
======= ======
Net asset value, end of period $10.60 $10.07
Total return 12.58% 14.60%ss.
Ratios and Supplemental Data
Net assets,
end of period (thousands) $12,601 $1,030
Ratio of expenses
to average net assets 1.42% 1.75%ss.
Ratio of expenses
to average net assets
prior to reimbursement 2.38 N/A
Ratio of net income (loss) to
average net assets 4.98% 4.38%ss.
Ratio of net income (loss) to
average net assets
prior to reimbursement 4.02% N/A
Portfolio turnover rate 22.35% 0.00%
</TABLE>
* Commencement of operations June 10, 1992
ss. Annualized
See accompanying notes to financial statements. 27
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-------------------------------------------------------------
Citizens Emerging Growth Portfolio
-------------------------------------------------------------
For the six For the year For the year For the year
months ended ended ended ended
June 30, 1996 June 30, 1996 June 30, 1995 June 30, 1994*
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $14.87 $11.87 $9.93 $10.00
------- ------- ------- ------
Income (loss) from investment operations
Net investment income (loss) (0.12) (0.13) 0.07 0.01
Net gain (loss) on securities (both
realized and unrealized) (0.11) 4.72 2.18 (0.08)
------- ------- ------- ------
Total from investment operations (0.23) 4.59 2.25 (0.07)
Less distributions
Dividends (from net investment income) - - (0.09) -
Distributions (from net realized gains) (1.25) (1.59) (0.22) -
------- ------- ------- ------
Total distributions (1.25) (1.59) (0.31) -
======= ======= ======= ======
Net asset value, end of period $13.39 $14.87 $11.87 $9.93
Total return -1.48% 42.43% 23.24% -1.80%ss.
Ratios and Supplemental Data
Net assets, end of period (thousands) $52,917 $36,409 $10,638 $3,754
Ratio of expenses to average net assets 1.67%ss. 2.10% 1.90% 1.89%ss.
Ratio of expenses to average net assets
prior to reimbursement 1.67%ss. 2.34% 2.93% 3.81%ss.
Ratio of net income (loss) to average net assets -1.42%ss. -1.64% 0.53% 0.63%ss.
Ratio of net income (loss) to average net assets
prior to reimbursement -1.42%ss. -1.88% -0.50% -1.29%ss.
Portfolio turnover rate 80.03% 337.41% 231.30% 33.35%
Average Commission Rate Paid 2.38% - - -
</TABLE>
* Commencement of operations February 8, 1994
ss. Annualized
...The total return in the middle of the page here tells the story of what to
expect with this Portfolio: Big gains and periods of small losses. This is a
Portfolio for the long-term investor who has the time and psychological
fortitude to ride the ups and downs of aggressive growth investing. Also, look
at the turnover. These managers are active every day and the turnover ratio
shows it...
28 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-------------------------------------------------------------
Working Assets Money Market Portfolio
-------------------------------------------------------------
For the six For the year For the year For the year
months ended ended ended ended
Dec. 31, 1996 June 30, 1996 June 30, 1995 June 30, 1994
(unaudited)
<S> <C> <C> <C> <C>
Retail Shares
Selected Per-Share Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
------- ------- ------- --------
Income from investment operations
Net investment income 0.021 0.045 0.044 0.023
Less distributions
Dividends
(from net investment income) (0.021) (0.045) (0.044) (0.023)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
======= ======= ======= ========
Total return 2.13% 4.60% 4.51% 2.35%
Ratios and Supplemental Data
Net assets,
end of period (thousands) $80,655 $78,326 $97,611 $103,766
Ratio of expenses to
average net assets 1.23%ss. 1.21% 1.16% 1.16%
Ratio of expenses to average
net assets prior to reimbursement 1.28% 1.21% 1.16% 1.16%
Ratio of net income to
average net assets 4.08%ss. 4.56% 4.39% 2.31%
Ratio of net income to average net
assets prior to reimbursement 4.99% 4.56% 4.39% 2.31%
</TABLE>
------------------------------
Working Assets
Money Market Portfolio
------------------------------
For the year For the year
ended ended
June 30, 1993 June 30, 1992
Retail Shares
Selected Per-Share Data
Net asset value, beginning of period $1.00 $1.00
-------- --------
Income from investment operations
Net investment income 0.024 0.041
Less distributions
Dividends
(from net investment income) (0.024) (0.041)
Net asset value, end of period $1.00 $1.00
======== ========
Total return 2.43% 4.16%
Ratios and Supplemental Data
Net assets,
end of period (thousands) $152,625 $223,951
Ratio of expenses to
average net assets 1.11% 1.07%
Ratio of expenses to average
net assets prior to reimbursement 1.11% 1.07%
Ratio of net income to
average net assets 2.41% 4.09%
Ratio of net income to average net
assets prior to reimbursement 2.41% 4.09%
<TABLE>
<CAPTION>
-----------------------------
For the six For the year
months ended ended
Dec. 31, 1996 June 30, 1996
(unaudited)
<S> <C> <C>
Institutional Shares
Selected Per-Share Data
Net asset value, beginning of period $1.00 $1.00
------- -------
Income from investment operations
Net investment income 0.025 0.021
Less distributions
Dividends (from net investment income) (0.025) (0.021)
======= =======
Net asset value, end of period $1.00 $1.00
Total return 2.51% 2.09%
Ratios and Supplemental Data
Net assets, end of period (thousands) $16,415 $14,539
Ratio of expenses to average net assets 0.49%ss. 0.47%ss.
Ratio of net income to average net assets 4.72%ss. 5.16%ss.
</TABLE>
* For the period from February 1, 1996 to June 30, 1996
ss. Annualized
See accompanying notes to financial statements. 29
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-----------------------------
E[bullet]fund
-----------------------------
For the six For the period
months ended ended
Dec. 31, 1996 June 30, 1996*
(unaudited)
<S> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 1.00 $ 1.00
------- -------
Income from operations
Net investment income 0.029 0.059
------- -------
Less distributions
Dividends (from net investment income) (0.029) (0.059)
======= =======
Net asset value, end of period $1.00 $1.00
Total return 2.94% 6.10%
Ratios and Supplemental Data
Net assets, end of period (thousands) $17,879 $11,082
Ratio of expenses to average net assets 0.00% 0.00%
Ratio of expenses to average net assets
prior to reimbursement 1.06%ss. 1.55%
Ratio of net income (loss) to average net assets 4.85%ss. 6.02%
Ratio of net income (loss) to average net assets
prior to reimbursement 3.79%ss. 4.64%
</TABLE>
* Commencement of operations July 1, 1995
ss. Annualized
30 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
--------------------------------------------- ------------------------------
Citizens Portfolio-Retail Shares Institutional Shares
--------------------------------------------- ------------------------------
For the six For the year For the year For the six For the year
months ended ended ended months ended ended
Dec. 31, 1996 June 30, 1996 June 30, 1995ss. Dec. 31, 1996 June 30, 1996^
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of year $13.41 $10.94 $10.00 $11.00 $10.00
-------- -------- -------- ------ ------
Income from investment operations
Net investment income - 0.08 0.01 - 0.08
Net gain on securities
(both realized and unrealized) 1.75 2.47 0.93 1.47 0.92
-------- -------- -------- ------ ------
Total from investment operations 1.75 2.55 0.94 1.47 1.00
Less distributions
Dividends (from net investment income) (0.06) (0.03) - (0.09) -
Distributions (from net realized gains) (0.09) (0.05) - (0.09) -
-------- -------- -------- ------ ------
Total distributions (0.15) (0.08) - (0.18) -
Net asset value, end of period $15.01 $13.41 $10.94 $12.29 $11.00
======== ======== ======== ====== ======
Total return 13.06% 23.41% 9.40% 13.40% 10.00%*
Ratios and Supplemental Data
Net assets, end of period (thousands) $161,870 $136,980 $106,096 $9,029 $7,524
Ratio of expenses to average net assets 1.62%* 1.82% 1.75%* 0.92% 1.01%*
Ratio of expenses to average net assets
prior to reimbursement 1.62%* 1.82% N/A 0.92% 1.01%*
Ratio of net income (loss) to average net assets -0.05%* 0.68% 0.98%* 0.65% 2.37%*
Ratio of net income (loss) to average net assets
prior to reimbursement -0.05%* 0.68% N/A 0.65% 2.37%*
Portfolio turnover rate 1.47% 6.44% 64.95% 1.18%
Average Commision Rate Paid 3.64% - - - -
</TABLE>
* Annualized
ss. Commencement of operations March 3, 1995
^ Commencement of operations January 25, 1996
See accompanying notes to financial statements. 31
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
-------------------------------------------------------------
Citizens Global Equity Portfolio
-------------------------------------------------------------
For the six For the year For the year For the year
months ended ended ended ended
Dec. 31, 1996 June 30, 1996 June 30, 1995 June 30, 1994*
(unaudited)
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 11.89 $ 10.69 $ 9.80 $10.00
------- ------- ------ ------
Income (loss) from investment operations
Net investment income (loss) (0.08) (0.10) (0.01) 0.01
Net gain (loss) on securities (both
realized and unrealized) 0.49 1.43 0.96 (0.21)
------- ------- ------ ------
Total from investment operations 0.41 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 $ 12.30 $ 11.89 $ 10.69 $ 9.80
======= ======= ====== ======
Total Return 3.45% 12.52% 9.77% -5.14%ss.
Ratios and Supplemental Data
Net assets, end of period (thousands) $20,164 $15,595 $9,503 $5,639
Ratio of expenses to average net assets 2.31%ss. 2.72% 2.50% 2.50%ss.
Ratio of expenses to average net assets
prior to reimbursement 2.31%ss. 2.72% 2.99% 3.16%ss.
Ratio of net income (loss) to average net assets -1.23%ss. -1.01% 0.00% 0.25%ss.
Ratio of net income (loss) to average net assets
prior to reimbursement -1.23%ss. -1.01% -0.49% -0.41%ss.
Portfolio turnover rate 30.31% 85.92% 22.10% 0.00%
Average Commission Rate Paid 2.05% - - -
</TABLE>
*Commencement of operations February 8, 1994
ss.Annualized
...This is it! The last page before "Notes To Financial Statements". If you'd
like more information on the "nuts and bolts" of our family of funds, "Notes" is
the place to find it. 'Til next time...
/s/Sophia Collier
32 Citizens Trust Semi-Annual Report
See accompanying notes to financial statements.
<PAGE>
Notes to Financial Statements (Unaudited)
December 31, 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 E[bullet]fund
(the "Portfolios") are each a series of shares of beneficial interest of
Citizens Investment Trust ("Citizens Trust" or the "Trust"), formerly known as
Working Assets Common Holdings. The Trust is registered as an open-end
management company under the Investment Company Act of 1940, as amended (the
"1940 Act"). The Trust was organized as a Massachusetts business trust on
November 24, 1982, and is authorized to issue an unlimited number of no par
value shares in one or more series. The following is a summary of significant
accounting policies followed by the Portfolios.
Primary Objectives of Portfolio Working Assets Money Market Portfolio and the
E[bullet]fund - 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 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 the E*fund's securities are valued
at amortized cost (premiums and discounts are amortized on a straight-line
basis), which has been determined by the Board of Trustees to represent fair
value. With respect to the other Portfolios, securities for which market
quotations are readily available are valued at the most recent closing sale
price or, if there is no closing sale price, at the bid price except for
municipal bonds which are valued at the mean between the bid and asked price.
Fixed income securities maturing within sixty days are normally valued at cost,
plus or minus any amortized discount or premium, provided that the Board of
Trustees determines that amortized cost equals market value. All securities for
which market quotations are not readily available will be fairly valued by
Citizens Advisers, the Trust's 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 the E[bullet]fund seek
to maintain a continuous net asset value per share of $1.00 and intend to comply
with the maturity, diversification and quality requirements of Rule 2a-7 under
the 1940 Act 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, Citizens Global Equity Portfolio, Citizens
Index Portfolio, and Muir California Tax-Free Income Portfolio - When a
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 a 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 a Portfolio has written
is exercised, the Portfolio realized 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 a 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.
The premium paid by a 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 a Portfolio has
purchased expires on the stipulated expiration date, the Portfolio realizes a
loss in the amount of the cost of the option. If a 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 a 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 a 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. A Portfolio as a 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, a Portfolio might become obligated to
purchase the underlying security at an exercise price that exceeds the then
current market price.
33
<PAGE>
Distributions Citizens Income Portfolio distributes net investment income to
shareholders monthly and net capital gains, if any, annually. With respect to
Citizens Index Portfolio, Citizens Emerging Growth Portfolio and Citizens Global
Equity Portfolio, distributions to shareholders from net investment income and
net capital gains, if any, are distributed annually. With respect to the Working
Assets Money Market Portfolio, E[bullet]fund and the Muir California Tax-Free
Income Portfolio, dividends from net investment income are accrued daily and are
reinvested in additional shares or paid in cash monthly. Income distributions
and capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for net operating
losses and deferral of post-October losses.
Federal Income Taxes
No provision has been made for federal taxes on the Portfolios' income since it
is the policy of the Portfolios to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of their taxable income to their shareholders.
Deferred Organization Costs
All costs incurred in connection with the organization, registration and/or
reorganization of the Portfolios have been paid by the Portfolios. These costs
are being amortized on a straight line basis over a period not to exceed sixty
months.
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 Adviser and serves as the Distributor of each of the
Portfolios shares. Under the terms of the management contract, the Adviser is
paid a monthly fee based on an annual rate of each Portfolio's average net
assets. Those rates are a follows: Working Assets Money Market Portfolio, .35%;
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%; and E[bullet]fund, .10%. 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; Citizens Emerging Growth Portfolio, Citizens Global Equity Portfolio
and Muir California Tax-Free Income Portfolio, 1.90%, 2.50% and 1.55%,
respectively, of average net assets. The Adviser may also voluntarily reduce its
fee or waive reimbursement of distribution costs so that the total expenses of a
Portfolio are below such limits. The Adviser is currently waiving all expenses
of the E*fund. Reimbursements for the period ended December 31, 1996 were
$21,016, $22,601 and $95,494 for the Working Assets Money Market Portfolio, Muir
California Tax-Free Income Portfolio and E[bullet]fund, respectively. GMG/Seneca
Capital Management serves as the Sub-Adviser for Working Assets Money Market
Portfolio, Citizens Income Portfolio, Citizens Emerging Growth Portfolio, Muir
California Tax-Free Income Portfolio and E[bullet]fund. Clemente Capital, Inc.
serves as the Sub-Adviser for Citizens Global Equity Portfolio and RhumbLine
Advisers serves as the Sub-Adviser for Citizens Index Portfolio. For their
services, the Sub-Advisers receive fees, paid by the Adviser as follows:
------------- ----------------
Percentage of Percentage of
average management
net assets fee paid Adviser
------------- ----------------
Working Assets Money Market Portfolio .08% -
E[bullet]fund .08% -
Citizens Income Portfolio .165% -
Citizens Index Portfolio .10% -
Citizens Emerging Growth Portfolio - 35%
Citizens Global Equity Portfolio .35% -
Muir California Tax-Free Income Portfolio .175% -
The Trust's distribution agreement allows the Distributor to be reimbursed for
distribution-related expenses up to .20% of the average daily net assets of the
Working Assets Money Market Portfolio and up to .25% of the average daily net
assets of the other Portfolios, with the exception of the E[bullet]fund and the
Institutional Classes of the Working Assets Money Market Portfolio and the
Citizens Index Portfolio, which have no distribution-related expenses.
34 Citizens Trust Semi-Annual Report
<PAGE>
Pursuant to an Administrative Services Agreement, the Adviser assumes a number
of general administrative services for each Portfolio for which the Adviser is
paid a monthly fee based on an annual rate of each Portfolio's average net
assets. Those rates are as follows: Working Assets Money Market Portfolio -
Retail Class - .15%; Citizens Income Portfolio, Citizens Emerging Growth
Portfolio, Citizens Global Equity Portfolio and Muir California Tax-Free Income
Portfolio - .10%; Citizens Index Portfolio - Retail Class - .65%; and Citizens
Index Portfolio - Institutional Class - .30%
Shareholders of the E[bullet]fund 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 1940 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 Trustees meeting.
NOTE 3 - Investment Securities
Purchases of investments, other than short-term securities, aggregated
$8,351,516, $9,154,662, $60,054,974, $8,726,335 and $5,991,331 for the Citizens
Income Portfolio, Citizens Index Portfolio, Citizens Emerging Growth Portfolio,
Citizens Global Equity Portfolio and Muir California Tax-Free Income Portfolio,
respectively, for the period ended December 31, 1996. Sales of investments,
other than short-term securities, aggregated $7,225,544, $1,830,797,
$46,817,185, $5,356,113 and $7,144,098 for the Citizens Income Portfolio,
Citizens Index Portfolio, Citizens Emerging Growth Portfolio, Citizens Global
Equity Portfolio and Muir California Tax-Free Income Portfolio, respectively,
for the period ended December 31, 1996.
The amount of unrealized appreciation (depreciation) of investments as of
December 31, 1996 is as follows:
---------------- --------------- ---------------
Emerging Growth
Income Portfolio Index Portfolio Portfolio
---------------- --------------- ---------------
Gross Appreciation $770,425 $50,614,508 $3,634,525
Gross Depreciation (205,918) (3,412,685) (2,746,457)
-------- ----------- ----------
Net Appreciation $564,507 $47,201,823 $888,068
------------- ------------------------
Global Equity Muir California Tax-Free
Portfolio Income Portfolio
------------- ------------------------
Gross Appreciation $3,583,874 $275,211
Gross Depreciation (531,350) (14,597)
---------- --------
Net Appreciation $3,052,524 $260,615
Investments have the same cost for tax and financial statement purposes.
NOTE 4 - Restricted Securities
On December 31, 1996 the Citizens Index Portfolio held restricted securities
(i.e., securities which may not be publicly sold without registration under the
Securities Act of 1933 ( the "1933 Act") or without an exemption under the 1933
Act). These securities are valued at fair value as determined by the Board of
Trustees. On December 31, 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 December 31, 1996, the cost and market value of Energia Global were the same.
Vulcan Power had a market value on December 31, 1996 of $25,000. Total
restricted securities represented 0.16% of net assets.
35
<PAGE>
NOTE 5 - Capital Shares
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Working Assets Money Market Portfolio
Retail Class Retail Class Retail Class Retail Class Institutional Class Institutional Class
------------------------------------------------------------------------------------------------------------
Period ended Period ended Year ended Year ended Period ended Period ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996 Dec. 31, 1996* Dec. 31, 1996*
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
Shares sold 43,011,135 $43,011,135 89,524,066 $89,524,066 7,410,163 $7,410,163
Shares redeemed (42,027,350) (42,027,350) (112,854,324) (112,854,324) (5,854,177) (5,854,177)
Shares issued
in reinvestment
of distributions 1,345,413 1,345,413 4,044,997 4,044,997 320,194 320,194
Net increase =========== =========== ============ ============ ========== ==========
(decrease) 2,329,198 $2,329,198 (19,285,261) $(19,285,261) 1,876,180 $1,876,180
</TABLE>
-----------------------------------------
Working Assets Money Market Portfolio
Institutional Class Institutional Class
-----------------------------------------
Year ended Year ended
June 30, 1996 June 30, 1996
Shares Value
Shares sold 18,169,824 $18,169,824
Shares redeemed (3,884,469) (3,884,469)
Shares issued
in reinvestment
of distributions 253,610 253,610
Net increase ========== ===========
(decrease) 14,538,965 $14,538,965
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Citizens Index Portfolio
Retail Class Retail Class Retail Class Retail Class Institutional Class Institutional Class
------------------------------------------------------------------------------------------------------------
Period ended Period ended Year ended Year ended Period ended Period ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996 Dec. 31, 1996* Dec. 31, 1996*
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,159,266 $16,236,931 2,251,655 $27,976,155 102,201 $1,182,294
Shares redeemed (689,146) (9,630,710) (1,805,346) (22,418,230) (61,780) (716,980)
Shares issued
in reinvestment
of distributions 105,819 1,574,591 66,739 808,873 10,317 125,759
========= =========== ========= =========== ======= ==========
Net increase 575,940 $8,180,813 513,048 $6,366,798 50,737 $591,072
</TABLE>
-----------------------------------------
Citizens Index Portfolio
Institutional Class Institutional Class
-----------------------------------------
Year ended Year ended
June 30, 1996 June 30, 1996
Shares Value
Shares sold 687,394 $7,237,544
Shares redeemed (3,661) (40,010)
Shares issued
in reinvestment
of distributions - -
======= ==========
Net increase 683,733 $7,197,534
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------
Citizens Emerging Growth Portfolio
---------------------------------------------------------------
Period ended Period ended Year ended Year ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 2,260,662 $33,210,814 1,982,405 $27,359,334
Shares redeemed (1,076,605) (15,883,596) (584,334) (8,250,469)
Shares issued
in reinvestment
of distributions 319,763 4,249,652 154,700 1,800,710
========= =========== ========= ===========
Net increase 1,503,820 $21,576,870 1,552,771 $20,909,575
</TABLE>
*Unaudited
36 Citizens Trust Semi-Annual Report
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------
E[bullet]fund
---------------------------------------------------------------
Period ended Period ended Year ended Year ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 30,981,031 $30,981,031 19,817,895 $19,817,895
Shares redeemed (24,528,585) (24,528,585) (8,955,215) (8,955,215)
Shares issued
in reinvestment
of distributions 343,888 343,888 219,542 219,542
========= ========== ========== ===========
Net increase 6,796,334 $6,796,334 11,082,222 $11,082,222
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------
Citizens Income Portfolio
---------------------------------------------------------------
Period ended Period ended Year ended Year ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 424,790 $4,429,152 960,101 $10,068,858
Shares redeemed (358,582) (3,738,974) (888,785) (9,284,121)
Shares issued
in reinvestment
of distributions 72,117 749,731 167,102 1,746,427
======= ========== ======= ==========
Net increase 138,325 $1,439,909 238,418 $2,531,164
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------
Citizens Global Equity Portfolio
---------------------------------------------------------------
Period ended Period ended Year ended Year ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 412,331 $4,915,913 568,325 $6,383,820
Shares redeemed (83,813) (1,007,779) (157,671) (1,763,879)
Shares issued
in reinvestment
of distributions - - 11,437 121,800
======= ========== ======= ==========
Net increase 328,518 $3,908,134 422,091 $4,741,741
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------
Muir California Tax-Free Income Portfolio
---------------------------------------------------------------
Period ended Period ended Year ended Year ended
Dec. 31, 1996* Dec. 31, 1996* June 30, 1996 June 30, 1996
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 48,253 $765,668 58,015 $915,810
Shares redeemed (149,794) (2,372,718) (224,461) (3,534,455)
Shares issued
in reinvestment
of distributions 10,811 171,473 30,073 476,088
======= =========== ======== ===========
Net increase (90,730) ($1,435,577) (136,373) $(2,142,557)
</TABLE>
*Unaudited
Note 6 - Custody of Securities
Under an agreement with the Custodian, custody fees are reduced by credits for
cash balances. Such reductions totalled $150,713 for the Trust during the period
ended December 31, 1996.
37
<PAGE>
1996 Semi-annual report service providers
Distributor
Citizens Securities
One Harbour Place, Portsmouth, NH 03801
800-223-7010 [bullet]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, Co-Chair; Azie Taylor Morton, Co-Chair,
Audit Chair; Sophia Collier; Lokelani Devone Juliana Eades;
J.D. Nelson; Ada Sanchez
Custodian
State Street Bank and Trust Company
Boston, MA
Transfer Agent & Dividend Disbursing Agent
PFPC Inc.
Wilmington, DE
Legal Counsel
Bingham, Dana & Gould, LLP
Boston, MA
Independent Auditors
Tait, Weller & Baker
Philadelphia, PA
World Wide Web Address: http://www.efund.com
(C) 1997 Citizens Advisers
Printed on recycled paper using soy-based inks.
This report is submitted for the general information of the shareholders of the
Citizens Portfolios. This report is not authorized for distribution to
prospective investors unless accompanied or preceded by an effective prospectus
which contains more information about the Portfolio's charges and expenses.
Please read the prospectus carefully before investing.
<PAGE>
Notes
<PAGE>
[BACK COVER]
Citizens Trust
One Harbour Place
Suite 525
Portsmouth, NH
03801
-----------------
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[Citizens Trust Logo]
Semi-Annual Report
1996
The Citizens Index
Has Performed like
A Clean machine
