[cover]
Semi-Annual Report
Citizens Index Portfolio earned 5 stars from
December 31, 1997
Mutual Funds Magazine among 2,618 equity
funds for the period 3/31/95 to 12/5/97.
[star] [star] [star] [star] [star]
Only the top 20% received 5 stars, the next
20% got 4 stars and the rest...well, you know*
[logo]CITIZENS
TRUST(TM)
<PAGE>
[inside front cover]
Socially and Environmentally Responsible
No Load Mutual Funds
[logo]CITIZENS
TRUST(TM)
Performance data quoted represents past performance which does not guarantee
future results. Investment return and principal value in the Citizens Trust
Portfolios will fluctuate so that shares, when redeemed, may be worth more or
less than the original cost.
Please read our fund prospectus carefully, which includes complete details on
fees and expenses, before you invest or send money. Should you need an
additional prospectus, please call 800-223-7010.
*Mutual Funds Magazine rankings are based upon total return and risk for ten
years or since inception, which is March 3, 1995 for the Citizens Index
Portfolio.
<PAGE>
Citizens Trust
[Picture of Sophia Collier]
Dear Shareholders,
I am very pleased to present this semi-annual report because 1997 was a
truly remarkable year at Citizens Trust. All of the Fund's portfolios turned in
positive performances in 1997, proving once again that good companies can also
be good investments. With such strong performance it was natural for the Fund as
a whole to grow in size as shareholder accounts grew in value and new
shareholders joined the Fund. We began the year with $405 million in assets. As
of December 31, 1997, portfolio assets totaled more than $547 million, an
increase of 35%.
As I have done in the past, I want to highlight how our Citizens Index
Portfolio stacked up against the Vanguard Index 500. I compare us to Vanguard
because the Index 500 is the nation's largest index fund and shares our own
Citizens Index Portfolio's investment objective of growth and income. Due in
part to its enormous size, the Vanguard Index 500 enjoys the advantage of a
lower expense ratio (.20% vs. 1.59% for the Citizens Index Portfolio).
Nevertheless, we were able to beat Vanguard once again in 1997 and deliver a
higher total return to our shareholders. For the one-year ended December 31,
1997, the Citizens Index Portfolio (Retail Class) had a total return of 34.96%,
while the Vanguard Index 500 Portfolio had a total return of 33.21%. (Annual
total return since inception (3/3/95) for the Citizens Index Portfolio was
29.07% for the same period.)
In fact, not only did the Citizens Index Portfolio outperform the Vanguard
Index 500 - it also outperformed 96% of all index funds tracked by Morningstar,
Inc. for the one-year period ended December 31, 1997. (The Institutional Class
was ranked #3 and the Retail Class was ranked #6 out of 145 index funds tracked
by Morningstar over that period.) The Citizens Index Portfolio's annual return
of 34.96% also substantially outdistanced the average of 27.70% for other growth
and income funds for the one-year period ended December 31, 1997. Not
surprisingly, The Citizens Index Portfolio was awarded the highest 5-star
ranking by Mutual Funds magazine in its February 1998 issue. (The Citizens Index
Portfolio was rated since inception (3/3/95) among 2,618 domestic equity funds
for the period ended 12/5/97.)*
And it wasn't just the Index Portfolio making news in 1997. The Global
Equity Portfolio and the Income Portfolio were each awarded 4 stars by
Morningstar. (The Global Equity Portfolio was rated among 684 international
equity funds for the three year period ended 12/31/97; the Income Portfolio was
rated among 1,371 taxable bond funds for the three years and 771 such funds for
the five years ended 12/31/97.) **
1
<PAGE>
The only portfolio that lagged its peer group in 1997 was our Citizens
Emerging Growth Portfolio which invests in mid-cap domestic equities with the
objective of aggressive growth. This portfolio had very strong performance in
1996. It actually was the #1 performing mid-cap fund in America out of 132 funds
tracked by Lipper Analytical Services as of 8/5/96. However, its 1997
performance was weaker. Total return for the one year ended 12/31/97 was 17.69%
and its average annual return since inception on 2/8/94 was 19.79%. While these
are good numbers in absolute terms, they are lower than our peers in 1997. For
the three years ended 12/31/97 this portfolio ranked #67 of 200 mid-cap funds
tracked by Morningstar. We will be watching the Citizens Emerging Growth
Portfolio carefully in 1998.
Proactive management is what you should expect from Citizens Trust. When
things are going well we seek to maintain good performance. When we have
problems we work hard to fix them. An example of this was the recent successful
merger of our two money market funds approved at our December shareholders
meeting. This merger allowed us to reduce costs yet preserve, for our money
market shareholders, the ATM access and other services offered through our
E*Fund debit card. With this merger all Working Assets Money Market shareholders
now have access to the E*Fund debit card and former E*Fund shareholders have a
lower costing portfolio.
Looking ahead, we are anticipating lower returns than we have enjoyed in
the equity markets in the last three years. This is normal and natural. As most
shareholders know, the equity market has returned an average of about 11% a year
since 1925 through the present. The high returns of the last three years are
unusual and will inevitably be followed by lower returns in future years.
However, despite this sense of caution, we remain optimistic and, rain or shine,
will continue to do our very best on behalf of our shareholders.
/s/ Sophia Collier
Sophia Collier
President
February 20, 1998
* Total return rankings for a 10 year period, or since inception, were combined
with risk rankings to produce a final numerical ranking for each fund. Mutual
Funds magazine awarded 5 stars to the 20% with the highest combined score and
the next 20% received 4 stars.
** Morningstar ratings reflect historical risk-adjusted performance as of
12/31/97. Ten percent of the funds in a category receive 5 stars, 22.5% receive
4 stars, and the next 35% receive 3 stars.
2
<PAGE>
Citizens Trust
[picture of Ed Ek]
Ed Ek, a member of
the Citizens Index
Portfolio Management
team.
Portfolio:
Citizens Index
Objective:
Long-term 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 for the
six and 12 month
periods ended
12/31/97 for the
Retail Class were
12.29% and 34.96%,
respectively. The
Institutional Class
returned 12.68% for
six months and
36.06% for the 12
months ended
12/31/97. The S&P
500 Index ended the
year with a six
month return of
10.58% and a 12
months total return
of 33.36%.
1997 Semi-Annual Report
Managers' Comments
Semi-Annual Recap/Citizens Index Portfolio
In addition to being an outstanding year for the U.S. stock market, 1997
was a record-setting one as well. For the first time ever, the market (as
measured by the S&P 500 Index) was up more than 20% for the third consecutive
year. Giving rise to this has been an exceptional business environment: low and
falling interest rates, low inflation and strong corporate profits. At year end,
both classes of the Citizens Index Portfolio outpaced the portfolio's benchmark,
the S&P 500 Index. The Institutional Class and Retail Class had a total return
of 36.06% and 34.96%, respectively, versus the S&P 500 Index total return of
33.36% for the one year period ended 12/31/97.
The passing of 1997 also marks the third anniversary of the Citizens Index
and, with it, the third anniversary of outperformance. In each of the past three
years, the Citizens Index outpaced the S&P 500 Index by at least 3%. On a three
year cumulative return, the Citizens Index returned 144.19%, outperforming the
S&P 500 Index return of 125.61% by 18.58%. (Of course, the return of the
Citizens Index and the S&P 500 Index are hypothetical. Investment in the
Citizens Index Portfolio or any mutual fund involves fees and expenses not
reflected in the above-mentioned Index returns.)
While stocks over the long-term have outperformed all other asset classes,
the returns of the last three years cannot continue indefinitely. Having said
that, conventional wisdom predicted modest or even negative returns for 1997,
precisely because of high returns in 1996 and 1995, and conventional wisdom was
quite wrong. Timing the ebbs and flows of the market is very difficult if not
impossible. Mistakes can be quite costly, both in terms of opportunity costs
(missing out on returns of the market) and transaction costs that come from
redeploying assets. Putting together a long-term investment plan and sticking
with it is one way to avoid such ill-timed strategies. An index fund, with its
low turnover and long-term horizon, is a natural way to implement a long-term
strategy.
At the broader level, two of the largest sectors in the Citizens Index
played an important part in outperforming the S&P 500 Index: technology and
banking. Together in 1997, they contributed 2.72% toward the relative return of
3.95%. The company with the highest return for the year, both in the technology
3
<PAGE>
1997 Semi-Annual Report
Manager's Comments
[picture of Richard Little]
Richard Little, a
member of the
Citizens Emerging
Growth Portfolio
Managment team.
Portfolio:
Citizens
Emerging Growth
Objective:
Aggressive growth
The Ground Rules:
During normal market
conditions, invests
at least 65% of the
portfolio in the
common stock or
preferred stock of
companies with an
average
capitalization of $2
billion.
The Results:
Total return of
11.44% for the six
month period ended
12/31/97; 17.69% for
the 12 month period
ended 12/31/97; and
19.79% average
annual return since
inception (2/8/94).
The Russell 2000
Index returned
10.95% and 22.24%
for the six and 12
month periods ended
12/31/97,
respectively.
sector and the Citizens Index overall, was Dell Computer, up 216%. Dell
manufactures desktop computers, notebooks and network servers and is the leader
in selling directly to customers over the telephone and internet. Sales have had
strong growth throughout the world, and the company has captured the number-two
market position in the U.S. The banking sector has benefited from two phenomena:
takeovers as consolidation continues and strong profits as a result of falling
interest rates.
Because the Citizens Index is invested in the stock market at all times and
contains 300 large, medium and small companies, its returns closely mirror the
performance of the overall market, but with the benefits of a socially
responsible approach. Going forward, we anticipate that this strategy of
investing in the best companies within each sector will continue to serve us
well.
Semi-Annual Recap/Citizens Emerging Growth Portfolio
Small-cap stocks entered the second half of the year very much in favor.
Their outperformance, which began in late spring, continued through the summer
and into early fall. Unfortunately, the October stock market correction and the
resulting desire for liquidity short-circuited small-cap stock performance as
money flowed back into the perceived safety of large-cap, well-known companies.
In December, we saw a return to strong performance for small-cap stocks, with
the Russell 2000 Index up 1.65% versus the S&P 500 Index price increase of
1.57%.
The Citizens Emerging Growth Portfolio's return for the six month period
ended 12/31/97 was 11.44%. This compares favorably to the total return of the
Russell 2000 Index, which was 10.95% for the same period. Our focus remains on
companies with strong, underlying fundamentals and improved earnings prospects.
With this strategy in place, we were able to avoid the many pitfalls in the
market resulting from company warnings of earnings deterioration.
Among the major contributors to the portfolio's return over the last 12
months was McKesson Corporation, a major healthcare supply management company in
North America. From the time of its first purchase in January, 1997 through
December 31, 1997, the stock had a total return of 94%. We continue to hold the
stock and believe going forward, McKesson's outstanding management team will
successfully
4
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Citizens Trust
[Picture of Lilia Clemente]
Lilia Clemente
a member of the
Citizens Global
Equity Portfolio
Management team.
Portfolio:
Citizens
Global Equity
Objective:
Capital appreciation
The Ground Rules:
Can invest anywhere
in the world,
providing it holds
at least 50%
non-U.S. companies
and is invested in a
minimum of three
countries. To reduce
risk, cannot invest
more than 25% in
emerging markets.
The Results: Total
return of 1.93% for
the six month period
ended 12/31/97;
19.91% for the 12
month period ended
12/31/97; and 11%
average annual
return since
inception (2/8/94).
The Financial Times
World Index lost
0.69% for six months
and earned 13.22%
for the 12 month
period ended
12/31/97.
execute its strategy to become the dominant player in the healthcare supply
distribution industry.
The Asian crisis produced severe problems for technology stocks in the
second half of 1997. Many technology stocks suffered losses. While the portfolio
had some disappointments, it also held a number of technology stocks which
bucked the negative trend. Documentum, a company that provides document
management software, benefited from strong domestic demand for their software.
Another technology stock fighting the trend was Computer Horizons, a company
that provides information technology staffing and consulting services, and which
should benefit as the year 2000 approaches. Year 2000 (Y2K) compliance has been
a much-talked-about-issue, and companies providing Y2K services performed well
at the end of 1997. At year-end 1997, Computer Horizons was up 28% from its
purchase at the end of September. Among our disappointments was KLA-Tencor, a
leading manufacturer of yield monitoring and process control systems for the
semi-conductor industry. This company suffered, along with other semi-conductor
companies, as a result of a general slowdown in the industry and anticipated
further slowing.
We expect the large-cap versus small-cap stock performance dichotomy to
narrow or even reverse in 1998. The ongoing economic slowdown in Asia-Pacific,
expenses related to Y2K compliance and a strong dollar should weigh heavily on
large-cap stocks. Smaller companies with a domestic focus and solutions for
current business problems, such as Y2K compliance, should fare well. Our
intention is to continue to produce strong results for our investors while
maintaining our focus on smaller companies with superior growth dynamics.
Semi-Annual Recap/Citizens Global Equity Portfolio
Asia's economic meltdown has dominated one of the most dramatic years the
business world has seen in recent times. However, with careful portfolio
management we were able to insulate ourselves from most of the damage. Careful
country allocation was a significant benefit to the portfolio's performance.
Limited exposure to Southeast Asia and Japan, coupled with a heavy investment in
Europe, proved to be a winning combination. The approach of the single European
currency has driven productivity gains through corporate restructuring and
consolidation, which have benefited the European stock markets in 1997.
5
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1987 Semi-Annual Report
Manager's Comments
The Asian crisis first showed up in late spring of 1997, with attacks on
the region's minor currencies. However, it came to a head in October, when even
the Hong Kong dollar (the currency of the area's second largest economy) came
under pressure, and with it, clear repercussions for the world's top financial
markets.
When the speculative bubble in Asia burst, the world got a clearer picture
of the problems in Japan, a country which has been mired in a serious political
and financial crisis since the end of the 1980s. In addition, the 11th largest
economic power in the world, South Korea, was brought to its knees and forced to
ask the International Monetary Fund for significant financial help. Asia's
troubles helped trigger a global stock market slide at the end of October,
nearly coinciding with the 10th anniversary of the 1987 crash. Alan Greenspan,
Chairman of the U.S. Federal Reserve, whose pronouncements have frequently
stirred financial markets, saw some benefits for the United States from the
October stock market shakeout. Mr. Greenspan, who warned a year ago of
"irrational exuberance" on Wall Street, said the October stock market downturn
could be a healthy tonic for the U.S. economy. By December, the Dow Jones was
back within sight of its pre-October levels, and many other world stock markets
had rebounded as well.
The Citizens Global Equity Portfolio had a total return of 19.91% for one
year and 1.93% for the six months ended December 31, 1997. For the 12 month
period, the Financial Times World Index, the portfolio's benchmark, returned
13.22%.
During the year, we emphasized a number of themes, but first and foremost
we looked for reasonably priced growth companies with strong management teams
and established franchises. Among the major contributors to the portfolio's
return during the last 12 months and six months was the German software group
SAP. As a world leader in business enterprise software, SAP is best known for
its R/3 client-server, which is a standard for companies wanting to coordinate
manufacturing, purchasing, accounting, finance and personnel data. The stock
returned 160% and 55% during the last 12 months and six months, respectively.
The company has seen increased demand for its software worldwide and also is
benefiting from demand for software capable of handling Europe's planned common
currency. The so-called euro is due to become a common currency on January 1,
1999.
6
<PAGE>
Citizens Trust
Gail Seneca, a
member of the
Citizens Income
Portfolio Management
team.
Portfolio:
Citizens Income
Objective:
Current income
The Ground Rules:
Invests at least 65%
of the portfolio in
taxable bonds rated
at least "investment
grade."
The Results: Total
return of 6.60% for
the six month period
ended 12/31/97;
10.48% for the 12
month period ended
12/31/97; and 7.69%
average annual
return since
inception (6/10/92).
The Lehman
Government/Corpor-
ate Intermediate
Index returned 4.90%
for six months and
7.87% for the 12
months ended
12/31/97.
Among our disappointments was Littlefuse in the U.S. The company is the
world's leading producer of electronic, power and automotive fuses, as well as a
leader in circuit protection technologies. The share price dropped 18% since its
purchase in the second half of 1997.
The drop followed a warning from the company about weaker-than-expected
sales in the fourth quarter due to economic weakness in South Korea, which
generates about 5% of the company's sales. Since the October crisis, the Korean
won has lost about 70% of its value against the U.S. dollar, meaning revenue in
Korea translates into fewer dollars. More recently, the company has taken steps
to hedge its currency exposure, and the share price has recovered somewhat.
In 1998, stabilization programs will likely lead to tumbling growth rates
in emerging Asian countries. According to the most optimistic forecasts, growth
will be halved in 1998 to 3%, while the economy in Japan is expected to grow by
a modest 1%. This slowdown will mean reduced imports to the region. In addition,
goods produced in the area will have a competitive edge because of the steep
devaluation of various currencies this year. The impact of the Asian problems on
other emerging countries, especially in Latin America, should also be
considered. A changed perception of risk will make credit more expensive and
will force many emerging economies, even outside Asia, to revise their
development plans, as is already the case in Brazil. Selectivity will be
critical in foreign markets in 1998, and we intend to remain disciplined in our
investment approach.
Semi-Annual Recap/Citizens Income Portfolio
The second half of 1997 was a rewarding time to be invested in the U.S.
bond market. Long-term treasury yields rallied by 0.86% over the six months,
leaving the rate on the 30-year treasury below 6% for the first time in nearly
two years. The driving forces behind this rally were continued low and declining
inflation rates and increasing investor asset allocation to bonds, resulting
from mounting concerns in the world equity markets.
Citizens Income Portfolio investors earned robust returns throughout 1997,
particularly in the second half of the year. The portfolio had a total return
for the six and 12 month periods ended 12/31/97 of 6.60% and 10.48%,
respectively. With the Lehman Brothers Government/Corporate Intermediate Index
posting a 7.87% return in 1997, the portfolio again outperformed
7
<PAGE>
1997 Semi-Annual Report
Manager's Comments
[picture of Laura Provost]
Laura Provost, a
member of the
Working Assets Money
Market Portfolio
Management team.
Portfolio:
Working Assets
Money Market
Objective:
Current income consistent
with safety and liquidity
The Ground Rules:
Invests in liquid
short-term money
market instruments
rated in the top two
rating categories,
while maintaining an
average maturity of
90 days or less.
The Results: As of
12/31/97, the
Working Assets Money
Market
Portfolio-Retail
Class had a 7-day
simple yield of
4.60%, a 7-day
effective yield of
4.70% and average
days to maturity of
28 days. The Working
Assets Money Market
Portfolio-Institutional
Class had a 7-day
simple yield of
5.18% and a 7-day
effective yield of
5.31%.
the broad market. The portfolio continues in its strategy of employing high
current income while maintaining a conservative intermediate-term average
maturity.
Corporate and mortgage-backed bonds remain the core holdings of the
portfolio. With the strong U.S. economy, the corporate holdings continue to
perform extremely well. In general, a strong economy increases the credit
quality of corporations, resulting in their outperformance relative to U.S.
Treasury bonds. The portfolio has been largely insulated from the Asian
financial crisis. It has no direct exposure to Asian credits and has avoided
exposures to U.S. corporations with significant sales to Asia. Our best
corporate bond performers included Panamsat, a satellite company; Sullivan
Broadcasting; Time Warner; and Security Capital Pacific.
In 1998, we expect corporate bonds to outperform U.S. Treasury bonds again,
as the U.S. economy continues to perform well and businesses continue to benefit
from lower borrowing costs. We expect to maintain modest mortgage positions,
which are well protected from prepayment risk.
For the coming year, interest rates should remain quite low, in a tight
range between 5.5% and 6.25% on long-term U.S. Treasury bonds. With the
deflationary threat from Asia, we anticipate that the U.S. Federal Reserve will
maintain its friendly posture. As a result, the coming year should be another
excellent year for bondholders, with the market providing yields well above the
inflation rate. The Citizens Income Portfolio will continue to focus on
providing above-market returns through its disciplined, low-risk approach, which
has proven so beneficial to our investors.
Semi-Annual Recap/Working Assets Money
Market Portfolio
1997 marked the seventh consecutive year of U.S. economic expansion. In the
fourth quarter of '97, the economy grew 4.30%, bringing the one year figure to
3.90%. This is well above 2.5%, a level of growth the Fed typically considers to
be sustainable. Although current inflation rates show no cause for concern (in
fact, with the Consumer Price Index at 1.7% and the Producer Price Index at
- -1.2%, inflation is at a low not seen in more than a decade), it is the
potential for future inflation that jitters the market as well as Federal
Reserve Chairman Alan Greenspan.
8
<PAGE>
Citizens Trust
Throughout 1997, job growth continued to be strong. With the economy adding
an average of 267,000 jobs per month, the unemployment rate declined throughout
the year to a low of 4.7% in December. What has kept the Fed at bay since March
in such a tight labor market has been the offsetting increase in productivity.
Typically, in the latter stages of a business cycle productivity tapers off. In
year seven of this atypical expansion, productivity increased 1.70%. Despite the
productivity offset, Chairman Greens pan's professed concern for an economy that
may be moving too quickly for its own good prompted many to forecast a
preemptive hike in the Fed Fund's rate before year end. By the latter part of
the fourth quarter, however, the anticipated slowing of our economy from the
Asian financial crisis gave the Fed some welcomed breathing room. In fact, talk
of inflation and rate hikes decreased, giving way to whispers of deflation and a
Fed ease for 1998.
Throughout the second half of the year, the money market yield curve
(maturities of one year and less) remained relatively flat. With the yield curve
providing little incentive to lengthen the average maturity, and the potential
for a rate increase throughout much of the second half, our strategy was to keep
the portfolio relatively short, in the 20-30 day range. With the merger of the
E*Fund into the Working Assets Money Market Portfolio on December 5th, the newly
merged portfolio ended the year with a total return for the Institutional Class
of 5.06%, and 4.43% for the Retail Class.
As we move into 1998, the Asian crisis is expected to slow the economy to a
more comfortable pace. With the long bond trading 28 basis points above the two
year treasury bond at year end, the market appears to share this outlook. As
long as inflation remains low and productivity continues to keep pace with
growth in the labor market, we expect the Fed to remain out of the picture.
Going forward, we will continue to monitor the economy for signs that would
prompt a change in Fed policy and will adjust our strategy accordingly.
9
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Working Assets Money Market Portfolio
<TABLE>
<CAPTION>
Par Security Yield Maturity Value(a)
Amount Description Date (Note 1)
Certificates of Deposit 0.17%
<S> <C> <C> <C> <C>
100,000 South Shore Bank Of Chicago 5.550% 12/18/98 100,000
100,000 Self Help Credit Union 5.500% 12/17/98 100,000
------------
Total Certificates Of Deposit (Cost $200,000) $ 200,000
Commercial Paper 95.13%
1,713,000 Abbey National North America 5.720% 02/06/98 1,703,202
318,000 American Express Credit Corporation 5.800% 01/07/98 317,693
2,172,000 American Express Credit Corporation 5.750% 01/09/98 2,169,225
1,406,000 American General Finance Corporation 5.790% 01/06/98 1,404,869
2,000,000 American General Finance Corporation 5.830% 01/09/98 1,997,409
2,455,000 American General Finance Corporation 5.710% 03/11/98 2,428,132
1,000,000 American Greetings Corporation 5.900% 01/16/98 997,542
1,243,000 Aon Corporation 5.650% 01/09/98 1,241,439
1,966,000 Aon Corporation 5.770% 03/10/98 1,944,573
2,500,000 Aon Corporation 5.750% 03/12/98 2,472,049
769,000 Avnet Incorporated 6.070% 01/16/98 767,055
3,000,000 Avnet Incorporated 5.760% 02/19/98 2,976,480
1,250,000 Avnet Incorporated 5.870% 02/19/98 1,240,013
702,000 Bank of New York Company Incorporated 5.830% 01/16/98 700,295
700,000 Bellsouth Capital Funding Corporation 5.800% 01/29/98 696,842
510,000 Bellsouth Telecommunications Incorporated 5.700% 01/07/98 509,516
1,172,000 Bellsouth Telecommunications Incorporated 5.700% 01/09/98 1,170,515
650,000 Bellsouth Telecommunications Incorporated 5.700% 01/13/98 648,765
1,300,000 Bellsouth Telecommunications Incorporated 5.650% 01/14/98 1,297,348
1,200,000 Bellsouth Telecommunications Incorporated 5.720% 02/26/98 1,189,323
1,400,000 Block Financial Corporation 5.720% 01/30/98 1,393,549
1,200,000 Block Financial Corporation 5.750% 03/25/98 1,184,092
1,248,000 Block Financial Corporation 5.780% 03/27/98 1,230,968
2,000,000 Campbell Soup Company 5.700% 01/22/98 1,993,350
1,800,000 Campbell Soup Company 5.550% 01/29/98 1,792,230
1,433,000 Campbell Soup Company 5.630% 03/11/98 1,417,537
1,500,000 Canadian Wheat Board 5.780% 01/12/98 1,497,351
3,000,000 Canadian Wheat Board 5.800% 01/13/98 2,994,200
1,000,000 Canadian Wheat Board 6.500% 01/16/98 997,292
1,986,000 Coca Cola Company 5.680% 01/12/98 1,982,553
1,000,000 Coca Cola Company 5.580% 02/10/98 993,800
1,200,000 Coca Cola Company 5.620% 03/10/98 1,187,261
4,978,000 Commerzbank U.S. Finance Incorporated 5.530% 01/12/98 4,969,589
2,100,000 Cooperative Association of Tractor Dealers Incorporated 6.750% 01/02/98 2,099,606
1,900,000 Cooperative Association of Tractor Dealers Incorporated 5.800% 01/26/98 1,892,347
</TABLE>
10 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Working Assets Money Market Portfolio (con't).
<TABLE>
<CAPTION>
Par Security Yield Maturity Value(a)
Amount Description Date (Note 1)
<S> <C> <C> <C> <C>
1,850,000 Cooperative Association of Tractor Dealers Incorporated 5.820% 02/03/98 1,840,130
2,023,000 Countrywide Home Loans Incorporated 5.860% 01/08/98 2,020,695
4,000,000 Countrywide Home Loans Incorporated 5.640% 01/13/98 3,992,480
2,000,000 Engelhard Corporation 5.730% 02/24/98 1,982,810
1,200,000 General Re Corporation 5.750% 03/11/98 1,186,775
1,428,000 H.J. Heinz Company 5.730% 01/16/98 1,424,591
1,200,000 H.J. Heinz Company 5.780% 01/21/98 1,196,147
850,000 H.J. Heinz Company 5.820% 01/21/98 847,252
2,000,000 Hershey Foods Corporation 5.820% 01/14/98 1,995,797
1,200,000 Hershey Foods Corporation 5.880% 01/14/98 1,197,452
1,339,000 Hershey Foods Corporation 5.800% 01/23/98 1,334,254
1,000,000 Idaho Power Company 5.820% 01/06/98 999,192
1,200,000 Idaho Power Company 5.870% 01/13/98 1,197,652
5,885,000 J.C. Penney Funding Corporation 5.520% 01/15/98 5,872,367
1,000,000 Kellogg Company 5.730% 01/23/98 996,498
2,000,000 Kellogg Company 5.680% 01/27/98 1,991,796
1,000,000 Nalco Chemical Company 5.700% 03/09/98 989,392
1,785,000 Nalco Chemical Company 5.700% 03/30/98 1,760,129
2,300,000 Nationwide Building Society 5.550% 01/06/98 2,298,227
3,000,000 Nationwide Building Society 5.850% 01/23/98 2,989,275
1,500,000 Sears Roebuck Acceptance Corporation 5.810% 01/06/98 1,498,790
600,000 Sears Roebuck Acceptance Corporation 5.840% 01/06/98 599,513
1,500,000 Sears Roebuck Acceptance Corporation 5.560% 01/15/98 1,496,757
2,500,000 Sears Roebuck Acceptance Corporation 5.710% 03/03/98 2,475,812
2,354,000 Sonoco Products Company 5.750% 01/13/98 2,349,488
1,200,000 Southern California Gas Company 5.870% 01/07/98 1,198,826
2,500,000 Southern New England Telecommunications Corporation 5.820% 01/05/98 2,498,383
1,687,000 Southern New England Telecommunications Corporation 5.870% 01/20/98 1,681,774
3,000,000 Stanley Works 5.580% 02/12/98 2,980,470
630,000 Times Mirror Company 5.650% 02/06/98 626,441
1,000,000 Xerox Corporation 6.450% 01/09/98 998,567
1,200,000 Xerox Corporation 5.800% 01/16/98 1,197,100
1,556,000 Xerox Corporation 5.750% 02/13/98 1,545,313
------------
Total Commercial Paper
(Cost $114,758,149) $114,758,149
</TABLE>
See accompanying notes to financial statements. 11
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Working Assets Money Market Portfolio (con't).
<TABLE>
<CAPTION>
Par Security Yield Maturity Value(a)
Amount Description Date (Note 1)
<S> <C> <C> <C>
Farmers Home Administration 0.15%
177,296 Variable Rate Notes (b) (e) 7.125% 177,296(b)
------------
Total Farmers
Home Administration (Cost $177,296) $ 177,296
Small Business Administration 3.36%
4,046,998 Variable Rate Notes (b) (c) 6.875-8.375% 4,055,219(b)
Total Small ------------
Business Administration (Cost $4,055,219) $ 4,055,219
------------
Total Investments (Cost $119,190,664) (d) 98.81% $119,190,664
Other assests less liabilities 1.19% $ 1,440,228
------------
Net Assets $120,630,892
============
</TABLE>
Key:
(a) Investments are based upon amortized cost method.
(b) Variable rates are subject to change for the time periods ranging
from 7 to every 90 days.
(c) Includes a total of 13 notes.
(d) Cost for federal income tax purposes is the same.
(e) Includes a total of 2 notes.
Citizens Income Portfolio
<TABLE>
<CAPTION>
Par Security Coupon Maturity Value
Amount Description Date (Note 1)
<S> <C> <C> <C>
Corporate Bonds 62.69%
Banks 7.56%
2,000,000 Abbey National PlC 7.350% 10/29/49 2,079,532
100,000 First Chicago NBD Corporation 7.250% 08/15/04 104,372
1,250,000 First Republic Bank 7.750% 09/15/12 1,276,438
----------
$3,460,342
Business Products and Services 2.69%
450,000 MVE Incorporated 12.500% 02/15/02 456,750
750,000 Williams Scotsman Incorporated 9.875% 06/01/07 774,375
----------
$1,231,125
</TABLE>
See accompanying notes to financial statements. 12
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Income Portfolio (con't)
<TABLE>
<CAPTION>
Par Security Maturity Value
Amount Description Coupon Date (Note 1)
<S> <C> <C> <C>
Financial Services and Insurance 9.43%
807,122 DLJ Mortgage Acceptance Corporation 6.620% 05/25/09 803,843
650,000 Lehman Brothers Holdings 5.000% 10/15/23 693,973
700,000 Lehman Brothers Holdings 8.050% 01/15/19 780,171
800,000 Lehman Brothers Incorporated 5.040% 12/15/03 834,616
50,000 MBIA Incorporated 9.000% 02/15/01 53,854
1,000,000 Secured Finance Incorporated 9.050% 12/15/04 $1,153,850
-----------
$4,320,306
Healthcare and Personal Care 6.39%
50,000 Kaiser Foundation Health Plan 9.000% 11/01/01 54,636
1,000,000 Physician Sales and Service Incorporation 8.500% 10/01/07 1,027,500
250,000 Quorum Health Group Incorporated 8.750% 11/01/05 257,500
1,500,000 Universal Health Services Incorporate 8.750% 08/15/05 1,588,125
----------
$2,927,761
Hotels 3.46%
1,550,000 John Q. Hammon Hotels 8.875% 02/15/04 1,582,938
----------
$1,582,938
Media 8.77%
1,000,000 Chancellor Media Corporation Los Angeles 8.750% 06/15/07 1,027,500
500,000 Jones Intercable Incorporated 9.625% 03/15/02 535,625
750,000 Sullivan Broadcasting 10.250% 12/15/05 799,688
1,400,000 Time Warner Incorporated 9.125% 01/15/13 1,654,352
----------
$4,017,165
Real Estate 11.93%
1,300,000 ERP Operating Limited Partnership 7.570% 08/15/26 1,371,435
1,100,000 Felcor Suites Limited Partnership 7.625% 10/01/07 1,112,496
1,000,000 Property Trust of America 6.875% 02/15/08 1,022,640
1,300,000 Weingarten Realty Investors 6.880% 06/25/27 1,423,981
500,000 Security Capital Pacific Trust 7.900% 02/15/16 531,250
----------
$5,461,802
Retail 9.67%
1,000,000 Barnes and Noble Incorporated 11.875% 01/15/03 1,060,000
1,600,000 Corporate Express Incorporated 9.125% 03/15/04 1,624,000
400,000 Kroger Company 8.500% 06/15/03 419,000
500,000 Kroger Company 9.250% 01/01/05 523,125
750,000 Smith's Food And Drug
Centers Incorporated 8.640% 07/02/12 802,500
----------
$4,428,625
</TABLE>
See accompanying notes to financial statements 13
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Income Portfolio (con't.)
<TABLE>
<CAPTION>
Par Security Coupon Maturity Value
Amount Description Date (Note 1)
<S> <C> <C> <C> <C>
Telephone 2.79%
1,200,000 WorldCom Incorporated 9.375% 01/15/04 1,278,000
-----------
$ 1,278,000
-----------
Total Corporate Bonds (Cost $27,547,562) $28,708,062
Capital Securities 1.74%
Banks 1.17%
500,000 Wells Fargo Capital A 8.125% 12/01/26 535,395
-----------
$535,395
Financial Services and Insurance 0.57%
250,000 Countrywide Capital I 8.000% 12/15/26 263,428
-----------
$ 263,428
-----------
Total Capital Securities (Cost $745,272) $ 798,823
Convertible Preferred 2.95%
Computer-Software 2.95%
15,000 Microsoft Corporation $2.196 12/15/99 1,349,475
-----------
Total Convertible Preferred (Cost $1,286,250) $ 1,349,475
Warrant 0.05%
750 MVE Holding Incorporated 02/15/02 22,500
-----------
Total Warrants (Cost $0) $ 22,500
Long Term U.S. Government Agencies 23.51%
Federal Home Loan Mortgage Corporation 4.50%
1,000,000 Federal Home Loan Mortgage Corporation 5.375% 04/13/00 978,990
1,072,730 Federal Home Loan
Mortgage Corporation-REMIC 6.80-8.75% 06/15/05- 1,082,478
04/15/18
-----------
$ 2,061,468
Federal National Mortgage Association 15.67%
5,150,000 Federal National Mortgage Association 0.000% 10/09/19 1,343,120
1,000,000 Federal National Mortgage Association 6.330% 10/02/02 1,001,870
600,000 Federal National Mortgage Association 5.830% 12/10/99 600,105
4,147,414 Federal National Mortgage
Association-REMIC 6.50-9.00% 11/25/02- 4,230,599
04/25/21
-----------
$ 7,175,694
</TABLE>
14 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Income Portfolio (con't)
<TABLE>
<CAPTION>
Par Security Coupon Maturity Value
Amount Description Date (Note 1)
<S> <C> <C> <C>
Government National Mortgage Association 3.34%
1,489,103 Government National
Mortgage Association 6.00-9.50% 04/15/07- 1,529,590
06/15/23
-----------
Total Long Term U.S. Government Agencies (Cost $10,480,662) $10,766,752
Short Term Investments 7.67%
318,000 State Street Bank and Trust
Repurchase Agreement (b) 5.300% 01/02/98 318,000
1,000,000 Federal Home Loan Bank Discount Note 5.680% 01/05/98 999,369
1,200,000 Federal Home Loan Mortgage Discount Notes 5.750% 01/07/98 1,198,850
1,000,000 Federal Home Loan Mortgage Discount Notes 5.740% 01/30/98 995,376
-----------
Total Short Term Investments (Cost $3,511,595) $ 3,511,595
-----------
Total Investments (Cost $43,571,341)(a) 98.60% $45,157,206
Other asset, less liabilities 1.40% $ 639,040
-----------
Net Assets $45,796,246
===========
</TABLE>
Key:
(a) Cost for federal income tax purposes is the same.
(b) Collateralized by U.S. Government Securities having a market value of
$327,980; value at maturity $318,094.
Citizens Index Portfolio
<TABLE>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Equities 99.54%
Apparel and Textiles 0.57%
6,600 Liz Claiborne Incorporated 275,963
5,900 Reebok International Limited 169,994(b)
3,300 Russell Corporation 87,656
1,900 Springs Industries Incorporated 98,800
4,600 Stride Rite Corporation 55,200
3,400 Tommy Hilfiger Corporation 119,425(b)
12,800 VF Corporation 588,000
5,100 Warnaco Group 160,013
-----------
$ 1,555,050
</TABLE>
See accompanying notes to financial statements. 15
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Auto Parts and Equipment 0.39%
2,000 Bandag Incorporated 106,875
7,700 Cooper Tire & Rubber 187,688
3,300 Federal-Mogul Corporation 133,650
17,600 Genuine Parts Company 597,300
1,500 Standard Products Company 38,438
-----------
$ 1,063,950
Banks-Commercial 1.18%
20,400 Barnett Banks Incorporated 1,466,250
49,875 MBNA Corporation 1,362,211
9,100 Providian Financial Corporation 411,206
-----------
` $ 3,239,667
Banks-Money Center 2.61%
38,100 Bank Of New York
Company Incorporated 2,202,656
14,400 BankBoston Corporation 1,352,700
9,700 Bankers Trust New York
Corporation 1,090,644
30,084 First Chicago NBD Corporation 2,512,014
-----------
$ 7,158,014
Banks-Super-Regional 6.66%
10,500 Comerica Incorporated 947,625
20,600 CoreStates Financial
Corporation 1,649,288
22,100 KeyCorp 1,564,956
25,300 Mellon Bank Corporation 1,533,813
21,600 National City Corporation 1,420,200
75,300 Norwest Corporation 2,908,463
31,400 PNC Bank Corporation 1,791,763
21,800 SunTrust Banks Incorporated 1,555,975
20,500 Wachovia Corporation 1,663,063
9,600 Wells Fargo & Company 3,258,600
-----------
$18,293,744
Beverages 6.15%
400 Celestial Seasonings
Incorporated 12,600(b)
249,500 Coca-Cola Company 16,622,938
450 Odwalla Incorporated 2,925(b)
9,900 Whitman Corporation 258,019
-----------
$16,896,481
Building Materials 0.46%
2,600 Apogee Enterprises Incorporated 30,875
4,100 Armstrong World Industries
Incorporated 306,475
11,600 Fedders Corporation 72,500
</TABLE>
16 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
16,100 Masco Corporation 819,088
1,600 TJ International Incorporated 39,600
-----------
$ 1,268,538
Chemicals 0.98%
10,700 Air Products and Chemicals
Incorporated 880,075
2,700 BetzDearborn Incorporated 164,869
14,250 Engelhard Corporation 247,594
6,600 Nalco Chemical Company 261,113
15,500 Praxair Incorporated 697,500
9,800 Sigma-Aldrich 389,550
3,000 Wellman Incorporated 58,500
-----------
$ 2,699,200
Commercial Services 1.93%
9,700 AccuStaff Incorporated 223,100(b)
5,233 AC Nielsen Corporation 127,554(b)
78,743 Cendant Corporation 2,706,803(b)
16,400 Cognizant Corporation 730,825
8,200 Deluxe Corporation 282,900
16,700 Dun & Bradstreet Corporation 516,656
14,800 Equifax Incorporated 524,475
9,400 Viad Corporation 181,538
-----------
$ 5,293,851
Computers-Hardware 9.24%
34,450 3Com Corporation 1,203,597(b)
12,400 Apple Computer Incorporated 162,750(b)
18,500 Ascend Communications
Incorporated 453,250(b)
101,250 Cisco Systems Incorporated 5,644,688(b)
76,277 Compaq Computer Corporation 4,304,883
33,500 Dell Computer Corporation 2,814,000(b)
14,900 Digital Equipment 551,300(b)
49,000 EMC Corporation 1,344,438(b)
15,000 Gateway 2000 Incorporated 489,375(b)
105,200 Hewlett-Packard Company 6,575,000
18,800 Silicon Graphics Incorporated 233,825(b)
2,100 Stratus Computer Incorporated 79,406(b)
38,000 Sun Microsystems Incorporated 1,515,250(b)
-----------
$25,371,761
Consumer Products-Miscellaneous 0.15%
7,100 American Greetings 277,788
3,800 Jostens Incorporated 87,638
300 Real Goods Trading Corporation 1,500(b)
1,100 Toro Company 46,888
-----------
$ 413,813
</TABLE>
See accompanying notes to financial statements. 17
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Security Value
Share Amount Description (Note 1)
<S> <C> <C> <C>
Data Processing/Management 1.17%
29,400 Automatic Data Processing 1,804,425
44,500 First Data Corporation 1,301,625
7,700 Sybase Incorporated 102,506(b)
-----------
$ 3,208,556
Electrical Components and Equipment 0.35%
9,300 American Power Conversion 219,713(b)
2,400 Belden Incorporated 84,600
3,300 C-Cube Microsystems Incorporated 53,831(b)
15,660 Molex Incorporated 503,078
2,000 Tecumseh Products Company 97,500
-----------
$ 958,721
Electronics 0.88%
22,000 AMP Incorporated 924,000
4,100 Avnet Incorporated 270,600
2,600 BMC Industries Incorporated 41,925
2,600 Cymer Incorporated 39,000(b)
1,100 Dionex Corporation 55,275(b)
4,700 General Signal Corporation 198,281
4,100 Millipore Corporation 139,144
4,100 Perkin-Elmer Corporation 291,356
4,650 Tektronix Incorporated 184,547
5,500 Thomas & Betts Corporation 259,875
-----------
$ 2,404,003
Energy and Utilities 1.57%
7,900 CalEnergy Co Incorporated 227,125(b)
9,300 Consolidated Natural Gas Company 562,650
5,800 El Paso Natural Gas 385,700
71,429 Energia Global 250,002(b)(c)
3,500 Idaho Power Company 131,688
7,700 MCN Energy Group Incorporated 310,888
4,600 Nicor Incorporated 194,063
3,100 ONEOK Incorporated 125,163
8,100 Pacific Enterprises 304,763
3,300 Peoples Energy Corporation 129,938
8,400 Sonat Incorporated 384,300
120,000 Vulcan Power Company 0(b)(c)(d)
5,000 Western Atlas Incorporated 370,000(b)
31,800 Williams Companies Incorporated 902,325
1,000 Yankee Energy System Incorporated 26,688
-----------
$ 4,305,289
</TABLE>
18 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Security Value
Share Amount Description (Note 1)
<S> <C> <C> <C>
Environmental Control 0.03%
1,100 IMCO Recycling Incorporated 17,669
1,500 Ionics Incorporated 58,688(b)
-----------
$ 76,356
Financial Services and Insurance 9.44%
9,350 A.G. Edwards Incorporated 371,663
47,200 American Express Company 4,212,600
25,086 American General Corporation 1,356,212
16,400 Aon Corporation 961,450
5,100 Beneficial Corporation 423,938
26,450 Charles Schwab Corporation 1,109,247
17,700 Chubb Corporation 1,338,563
10,500 Countrywide Credit Industries
Incorporated 450,188
107,300 Fannie Mae 6,122,806
69,600 Freddie Mac 2,918,850
7,800 General Re Corporation 1,653,600
13,200 Green Tree Financial Corporation 345,675
10,200 H & R Block Incorporated 457,088
6,700 Jefferson-Pilot Corporation 521,763
8,800 MBIA Incorporated 587,950
11,300 MGIC Investment Corporation 751,450
13,600 Safeco Corporation 663,000
8,200 St. Paul Companies Incorporated 672,913
13,700 UNUM Corporation 744,938
11,600 USF&G Corporation 255,925
-----------
$25,919,815
Food 4.79%
4,200 Ben & Jerry's Homemade 65,100(b)
46,200 Campbell Soup Company 2,685,375
14,200 CPC International Incorporated 1,530,050
3,500 Fleming Companies Incorporated 47,031
800 Gardenburger Incorporated 7,200(b)
15,800 General Mills Incorporated 1,131,675
37,300 H.J. Heinz Company 1,895,306
14,000 Hershey Foods Corporation 867,125
2,500 J.M. Smucker Company 59,063
41,800 Kellogg Company 2,074,325
13,500 Quaker Oats Company 712,125
6,100 SUPERVALU Incorporated 255,438
17,100 Sysco Corporation 779,119
2,008 Tootsie Roll Industries 125,500
</TABLE>
See accompanying notes to financial statements. 19
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Security Value
Share Amount Description (Note 1)
<S> <C> <C> <C>
11,300 Wm. Wrigley Jr. Company 899,056
1,021 Worthington Foods Incorporated 14,294
-----------
$13,147,782
Forest Products and Paper 0.43%
2,100 Caraustar Industries Incorporated 71,925
4,100 Consolidated Papers Incorporated 218,838
21,025 Fort James Corporation 804,206
6,200 Unisource Worldwide Incorporated 88,350
-----------
$ 1,183,319
Hand/Machine Tools 0.30%
3,800 Cincinnati Milacron Incorporated 98,563
6,100 Snap-On Incorporated 266,113
900 SPX Corporation 62,100
8,700 Stanley Works 410,531
-----------
$ 837,306
Healthcare and Personal Care 2.29%
13,000 Avon Products Incorporated 797,875
11,100 Biomet Incorporated 284,438
39,000 HealthSouth Corporation 1,082,250(b)
3,500 Idexx Laboratories Incorporated 55,781(b)
2,500 Invacare Corporation 54,375
6,400 Manor Care Incorporated 224,000
46,800 Medtronic Incorporated 2,448,225
1,550 Natures Sunshine Products
Incorporated 40,300
3,000 Owens & Minor Incorporated
Holding Company 43,500
7,700 Oxford Health Plans 119,831(b)
2,000 Patterson Dental Company 90,500(b)
2,200 Sofamor Danek Group Incorporated 143,138(b)
9,200 St. Jude Medical Incorporated 280,600(b)
4,700 Sun Healthcare Group Incorporated 91,063(b)
3,900 Trigon Healthcare Incorporated 101,888(b)
3,000 Universal Health Services 151,125(b)
6,600 Wellpoint Health Networks 278,850(b)
-----------
$ 6,287,738
Home Builders 0.15%
2,700 Centex Corporation 169,931
3,500 Fleetwood Enterprises 148,531
2,100 Pulte Corporation 87,806
-----------
$ 406,269
</TABLE>
20 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Security Value
Share Amount Description (Note 1)
<S> <C> <C> <C>
Home Furnishings 0.31%
1,755 Harman International 74,478
9,900 Maytag Corporation 369,394
7,500 Whirlpool Corporation 412,500
-----------
$ 856,372
Household Products/Wares 0.19%
14,600 Rubbermaid Incorporated 365,000
5,700 Tupperware Corporation 158,888
-----------
$ 523,888
Iron/Steel 0.03%
4,500 Inland Steel Industries
Incorporated 77,063
-----------
$ 77,063
Leisure Time 0.80%
7,200 Callaway Golf Company 205,650
4,900 Coleman Company Incorporated 78,706(b)
14,800 Harley-Davidson Incorporated 405,150
12,400 Hasbro Incorporated 390,600
2,000 Huffy Corporation 27,000
29,075 Mattel Incorporated 1,083,044
-----------
$ 2,190,150
Machinery 0.78%
7,500 Case Corporation 453,281
25,600 Deere & Company 1,492,800
2,700 Idex Corporation 94,163
1,500 Nordson Corporation 68,813
900 Tennant Company 32,738
-----------
$ 2,141,794
Manufacturing-Miscellaneous 0.76%
25,200 Illinois Tool Works 1,515,150
4,200 National Service Industries
Incorporated 208,163
8,600 Raychem Corporation 370,338
-----------
$ 2,093,650
Media 3.86%
35,000 Comcast Corporation 1,104,688
9,600 Dow Jones & Company Incorporated 515,400
3,300 King World Productions Incorporated 190,575(b)
9,700 McGraw-Hill Companies Incorporated 717,800
4,900 Meredith Corporation 174,869
9,400 New York Times Company 621,575
56,050 Time Warner Incorporated 3,475,100
</TABLE>
See accompanying notes to financial statements. 21
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Security Value
Share Amount Description (Note 1)
<S> <C> <C> <C>
9,400 Times Mirror Company 578,100
60,700 U.S. West Media Group 1,752,713(b)
35,500 Viacom Incorporated 1,471,031(b)
-----------
$10,601,850
Metal Fabricate/Hardware 0.13%
6,200 Timken Company 213,125
9,400 Worthington Industries 155,100
-----------
$ 368,225
Office Furnishings 0.09%
4,400 Herman Miller Incorporated 240,075
-----------
$ 240,075
Office Supplies and Forms 0.23%
10,100 Avery Dennison Corporation 451,975
2,800 John H. Harland Company 58,800
8,600 Moore Corporation Limited 130,075
-----------
$ 640,850
Office/Business Equipment 1.51%
13,000 Ikon Office Solutions Incorporated 365,625
14,900 Pitney Bowes Incorporated 1,340,069
33,100 Xerox Corporation 2,443,194
-----------
$ 4,148,888
Packaging and Containers 0.21%
3,900 Sealed Air Corporation 240,825(b)
9,310 Sonoco Products Company 322,941
-----------
$ 563,766
Pharmaceuticals 2.80%
8,300 ALZA Corporation 264,044(b)
26,700 Amgen Incorporated 1,445,138(b)
4,625 Bergen Brunswig Corporation 194,828
7,100 Biogen Incorporated 258,263(b)
1,200 Cyanotech Corporation 3,338(b)
4,200 Dura Pharmaceuticals Incorporated 192,675(b)
11,800 Mylan Laboratories 247,063
7,100 Perrigo Company 94,963(b)
2,200 R.P. Scherer Corporation 134,200(b)
73,700 Schering-Plough Corporation 4,578,613
8,400 Watson Pharmaceuticals Incorporated 272,475(b)
-----------
$ 7,685,597
</TABLE>
22 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Photo Equipment and Supplies 0.07%
4,200 Polaroid Corporation 204,488
-----------
$ 204,488
Real Estate Investment and Management 0.11%
6,000 Choice Hotels International
Incorporated 96,000(b)
6,700 Rouse Company 219,425
-----------
$ 315,425
Retail-Specialty 1.86%
6,500 Barnes & Noble Incorporated 216,938(b)
11,800 Charming Shoppes 55,313(b)
2,800 Footstar Incorporated 75,250(b)
40,350 Gap Incorporated 1,429,903
2,300 Gymboree Corporation 62,963(b)
27,200 Limited Incorporated 693,600
17,000 Lowe's Companies 810,688
7,400 Nordstrom Incorporated 446,775
11,200 Tandy Corporation 431,900
28,500 Toys R Us Incorporated 895,969(b)
-----------
$ 5,119,297
Retail-Department Store 2.31%
20,900 Federated Department Stores 900,006(b)
7,000 Harcourt General Incorporated 383,250
25,200 J.C. Penney Company 1,519,875
7,600 Kohl's Corporation 517,750(b)
23,500 May Department Stores Company 1,238,156
39,500 Sears, Roebuck and Company 1,787,375
-----------
$ 6,346,413
Retail-Discount 0.79%
21,300 Costco Companies Incorporated 950,513(b)
11,100 Dollar General 402,375
15,900 TJX Companies Incorporated 546,563
13,100 Woolworth Corporation 266,913(b)
-----------
$ 2,166,363
Retail-Drug Store 1.26%
17,200 CVS Corporation 1,101,875
3,600 Longs Drug Stores Corporation 115,650
12,000 Rite Aid Corporation 704,250
49,200 Walgreen Company 1,543,650
-----------
$ 3,465,425
</TABLE>
See accompanying notes to financial statements. 23
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Retail-Food 0.56%
7,800 Bruno's Incorporated 16,088(b)
5,600 Giant Food Incorporated 188,650
3,600 Great Atlantic & Pacific Tea
Company Incorporated 106,875
3,900 Hannaford Brothers Company 169,406
25,500 Kroger Company 941,906(b)
2,300 Whole Foods Market Incorporated 117,588(b)
-----------
$ 1,540,513
Retail-Restaurants 0.17%
14,600 Darden Restaurants Incorporated 182,500
7,700 Starbucks Corporation 295,488(b)
-----------
$ 477,988
Savings and Loans 1.05%
5,800 Golden West Financial Corporation 567,313
9,500 H.F. Ahmanson & Company 635,906
26,340 Washington Mutual Incorporated 1,680,821
-----------
$ 2,884,040
Semiconductors 5.28%
13,700 Advanced Micro Devices 245,744(b)
8,900 Altera Corporation 294,813(b)
36,400 Applied Materials Incorporated 1,096,550(b)
3,475 General Semiconductor Incorporated 40,180(b)
164,600 Intel Corporation 11,563,150
8,100 KLA-Tencor Corporation 312,863(b)
14,200 LSI Logic Corporation 280,450(b)
21,100 Micron Technology Incorporated 548,600(b)
4,500 VLSI Technology Incorporated 106,313(b)
-----------
$14,488,661
Software 7.83%
7,300 Adobe Systems Incorporated 301,125
10,400 America Online Incorporated 927,550(b)
4,800 Autodesk Incorporated 177,600
54,812 Computer Associates International
Incorporated 2,898,185
1,500 Dialogic Corporation 65,625(b)
10,000 Global Village Communication 12,188(b)
121,200 Microsoft Corporation 15,665,100(b)
7,983 Network Associates Incorporated 422,101(b)
35,100 Novell Incorporated 263,250(b)
12,800 Parametric Technology Corporation 606,400(b)
2,300 Shared Medical Systems Corporation 151,800
-----------
$21,490,923
</TABLE>
24 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Telecommunication Equipment 2.60%
12,800 ADC Telecommunications Incorporated 534,400(b)
65,200 Lucent Technologies Incorporated 5,207,850
5,000 Mobile Telecommunications
Technology Corporation 110,000(b)
6,800 Qualcomm Incorporated 343,400(b)
17,700 Tellabs Incorporated 935,888(b)
-----------
$ 7,131,538
Telecommunication Services 0.76%
50,300 Airtouch Communications
Incorporated 2,090,594(b)
-----------
$ 2,090,594
Telephone 10.79%
18,700 Alltel Corporation 767,869
55,100 Ameritech Corporation 4,435,550
78,500 Bell Atlantic Corporation 7,143,500
99,400 Bell South Corporation 5,597,463
91,959 SBC Communications Incorporated 6,735,997
49,000 US West Communications Group 2,211,125
90,400 Worldcom Incorporated 2,734,600(b)
-----------
$ 29,626,103
Transportation 0.59%
3,600 Caliber System Incorporated 175,275
11,200 Federal Express Corporation 683,900(b)
5,750 Illinois Central Corporation 195,859
1,700 Roadway Express Incorporated 37,613
21,450 Southwest Airlines 528,206
-----------
$ 1,620,853
Water Utilities 0.10%
7,900 American Water Works Incorporated 215,769
1,800 Philadelphia Suburban Corporation 52,988
-----------
$ 268,756
-----------
Total Equities (Cost $174,996,192) $273,358,765
</TABLE>
See accompanying notes to financial statements. 25
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Index Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Short Term Investments 0.61%
State Street Bank and Trust
Repurchase Agreement
1,667,000 5.30%, 1/02/98 (e) 1,667,000
-----------
Total Short Term Investments (Cost $1,667,000)(a) $1,667,000
-----------
Total Investments (Cost $176,663,192) 100.15% $275,025,765
Liabilities in excess of other assets (0.15%) (411,885)
-----------
Net Assets $274,613,880
===========
</TABLE>
Key:
(a) Cost for federal income tax purposes is the same.
(b) Non-income producing security.
(c) Restricted Security, see note 4.
(d) Security deemed worthless.
(e) Collateralized by U.S. Government Securities having a market value of
$1,702,056; value at maturity $1,667,490.
Citizens Emerging Growth Portfolio
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Equities 97.59%
Commercial Services 5.64%
68,700 Inacom Corporation 1,927,894(b)
61,000 Medquist Incorporated 2,119,750(b)
-----------
$ 4,047,644
Computers 10.71%
64,880 Computer Horizons Corporation 2,952,040(b)
62,600 Saville Systems Ireland Plc-
Sponsored ADR 2,597,900(b)
59,800 Security Dynamics Tech Incorporated 2,137,850(b)
-----------
$ 7,687,790
Distribution/Wholesale 2.71%
50,000 Tech Data Corporation 1,943,750(b)
-----------
$ 1,943,750
Electronics 7.39%
62,010 Flextronics International Limited 2,139,345(b)
70,200 Level One Communications
Incorporated 1,983,150(b)
42,280 Micrel Incorporated 1,183,840(b)
-----------
$ 5,306,335
</TABLE>
26 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Emerging Growth Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Entertainment 0.90%
44,350 N2K Incorporated 648,619(b)
-----------
$ 648,619
Financial Services and Insurance 11.56%
21,910 Comerica Incorporated 1,977,378
45,780 CMAC Investment Corporation 2,763,968
42,000 SunAmerica Incorporated 1,795,500
26,320 H.F. Ahmanson & Company 1,761,795
-----------
$ 8,298,640
Forest Products and Paper 2.03%
38,100 Fort James Corporation 1,457,325
-----------
$ 1,457,325
Health Care 6.81%
40,000 American Retirement Corporation 800,000b)
25,000 Guidant Corporation 1,556,250
46,950 Nitinol Medical Technologies 375,600(b)
100,200 Physician Sales & Service 2,154,300(b)
-----------
$ 4,886,150
Household Products/Wares 3.09%
106,650 Dial Corporation 2,219,653
-----------
$ 2,219,653
Media 3.22%
29,100 Clear Channel Communications 2,311,631(b)
-----------
$ 2,311,631
Office Furnishings 5.26%
46,100 Knoll Incorporated 1,480,963(b)
42,100 Herman Miller Incorporated 2,297,081
-----------
$ 3,778,044
Pharmaceuticals 5.28%
63,000 BioChem Pharma Incorporated 1,315,125(b)
22,850 McKesson Corporation 2,472,084
-----------
$ 3,787,209
Retail 5.29%
45,960 The Men's Wearhouse Incorporated 1,597,110(b)
63,990 TJX Companies Incorporated 2,199,656
-----------
$ 3,796,766
</TABLE>
See accompanying notes to financial statements. 27
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Emerging Growth Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Software 22.93%
50,000 Cadence Design Sys Incorporated 1,225,000(b)
28,050 CBT Group Plc-Sponsored ADR 2,303,606(b)
71,000 Cerner Corporation 1,499,875(b)
53,000 Check Point Software Technologies
Limited 2,159,750(b)
62,450 Compuware Corporation 1,998,400(b)
65,740 Documentum Incorporated 2,769,298(b)
57,680 Hyperion Software Corporation 2,062,060(b)
62,700 PeopleSoft Incorporated 2,445,300(b)
-----------
$16,463,289
Telecommunication Equipment 2.34%
31,800 Tellabs Incorporated 1,681,425(b)
-----------
$ 1,681,425
Textiles 2.43%
50,000 Pillowtex Corporation 1,743,750
-----------
$ 1,743,750
-----------
Total Equities (Cost $60,583,944) $70,058,020
Short Term Investments 9.07%
State Street Bank and Trust
Repurchase Agreement
6,514,000 5.30%, 1/02/98 (c) 6,514,000
-----------
Total Short Term Investments (Cost $6,514,000) (a) $ 6,514,000
-----------
Total Investments (Cost $67,097,944) 106.67% $76,572,020
Liabilities in excess of other assets (6.67%) (4,787,400)
-----------
Net Assets $71,784,620
===========
</TABLE>
Key:
(a) Cost for federal income tax purposes is the same.
(b) Non-income producing security.
(c) Collateralized by U.S. Government Securities having a market value of
$6,645,885; value at maturity $6,515,918.
28 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Global Equity Portfolio
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Equities 93.01%
Belgium
2,186 Barco N.V. (Diversified Operations) 401,210
-----------
$ 401,210
Brazil 3.27%
6,000 Telecomunicacoes Brasileiras (ADR)
(Telephone-Integrated) 698,625
13,800 Unibanco (ADR) (Commercial Banks) 444,188
-----------
$ 1,142,813
Finland 4.11%
9,700 Nokia Corporation (ADR)
(Telecommunication Equipment) 679,000
23,300 Sampo Insurance Company Limited
(Multi-line Insurance) 757,343
-----------
$ 1,436,343
France 1.46%
6,600 Axa-UAP (Multi-line Insurance) 510,919
-----------
$ 510,919
Germany 5.28%
1,800 Allianz AG (Multi-line Insurance) 466,507
15,000 Dresdner Bank AG
(Banks-Money Center) 692,419
750 Dresdner Bank AG RFD 1797
(Banks-Money Center) 32,744
2,000 SAP AG (Computer-Software) 654,601
-----------
$ 1,846,271
Ireland 2.06%
46,775 Bank of Ireland (Banks-Commercial) 721,365
-----------
$ 721,365
Italy 7.49%
22,000 Assicurazioni Generali
(Multi-line Insurance) 540,669
55,000 Istituto Bancario San Paolo di Torino
(Banks-Money Center) 525,736
200,000 Telecom Italia Mobile
(Telecommunication Services) 923,644
98,333 Telecom Italia SpA
(Telecommunication Services) 628,487
-----------
$ 2,618,536
Japan 7.71%
26,000 Canon Incorporated
(Office Automation and Equipment) 607,901
620 Family Mart Company, Limited
(Retail-Convenience Store) 22,316
18,000 Fuji Photo Film Company
(Photo Equipment and Supplies) 692,195
6,000 Ito-Yokado Company Limited (Retail) 306,873
46,000 NEC Corporation
(Electronic Components) 491,766
3,000 Sony Corporation (ADR)
(Audio/Video Products) 272,250
4,000 TDK Corporation
(Computer-Memory Devices) 302,720
-----------
$ 2,696,023
</TABLE>
See accompanying notes to financial statements. 29
<PAGE>
1997 Semi-Annual Report
Statement of Investments (unaudited)
Citizens Global Equity Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
Mexico 3.93%
217,000 Cifra S.A. de CV (Retail-Discount) 487,198
112,000 Grupo Continental S.A.
(Beverages-Non Alcoholic) 398,719
280,000 Grupo Financiero Banorte S.A.
(Financial) 488,327(b)
-----------
$ 1,374,245
Netherlands 2.23%
4,004 Aegon N.V.
(Financial Services and Insurance) 356,508
15,000 Ver Ned Uitgevers (Media) 423,238
-----------
$ 779,746
Norway 4.24%
115,000 Storebrand ASA
(Multi-line Insurance) 811,157(b)
30,000 Tomra Systems ASA (Recycling) 671,442
-----------
$ 1,482,599
Portugal 0.80%
6,000 Portugal Telecom S.A.
(Telephone-Integrated) 278,714
-----------
$ 278,714
Spain 3.47%
23,200 ACS Actividades
(Building/Heavy Construction) 561,676
19,500 Banco Santander
(Banks-Money Center) 651,214
-----------
$ 1,212,889
Switzerland 3.06%
3,200 Credit Suisse Group
(Banks-Money Center) 495,835
1,200 Zurich Versicherungs-Gesellschaft
(Multi-line Insurance) 572,623
-----------
$ 1,068,458
United Kingdom 8.97%
57,000 Lloyds TSB Group PLC
(Banks-Money Center) 742,856
32,000 Next PLC (Retail) 365,916
67,000 Norwich Union
(Life/Health Insurance) 402,383(b)
56,404 Powerscreen International PLC
(Machinery-General Industrial) 567,009
45,000 Reed International
(Publishing-Books) 429,449
49,000 United Utilities PLC (Utililties) 628,872
-----------
$ 3,136,484
</TABLE>
30 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Investments (unaudited)
Citizens Global Equity Portfolio (Con't.)
<TABLE>
<CAPTION>
Share Amount Security Value
Description (Note 1)
<S> <C> <C> <C>
United States 31.69%
6,300 Air Products and Chemicals Incorporated
(Chemicals-Diversified) 518,175
28,000 AirTouch Communications Incorporated
(Telecommunication Services) 1,163,750(b)
15,700 Autoliv Incorporated (Auto/Truck
Part and Equipment) 514,175
16,000 Bank New York Incorporated
(Money Center Banks) 925,000
4,000 Bankers Trust New York Corporation
(Money Center Banks) 449,750
15,450 Cisco Systems Incorporated
(Networking Products) 861,338(b)
15,750 Home Depot Incorporated
(Retail-Building Products) 927,281
10,000 Illinois Tool Works Incorporated
(Miscellaneous Manufacture) 601,250
12,000 Intel Corporation
(Electronic Compo-Semicon) 843,000
14,000 Littelfuse Incorporated (Electric
Products-Miscellaneous) 348,250(b)
15,300 O'Reilly Automotive Incorporated
(Retail-Auto Parts) 401,625(b)
14,100 Protective Life Corporation
(Life/Health Insurance) 842,475
20,000 Sun Guard Data Systems
(Computer Services) 620,000(b)
14,800 Sun Microsystems Incorporated
(Computers-Micro) 590,150(b)
10,000 Suntrust Banks Incorporated
(Super-Regional Banks) 713,750
25,000 Worldcom Incorporated
(Telephone-Long Distance) 756,250(b)
-----------
$11,076,219
Venezuela 2.07%
17,400 Compania Anonima Nacional Telefonos
de Venezuela (ADR) (Telephone-
Integrated) 724,275
-----------
$ 724,275
-----------
Total Equities (Cost $26,520,368) $32,507,109
Short Term Investments
State Street Bank and Trust
Repurchase Agreement
2,402,000 5.30% 01/02/98 2,402,000
-----------
Total Short Term Investments (Cost$2,402,000) $ 2,402,000
-----------
Total Investments (Cost $28,922,368)(a) 99.89% $34,909,109
Other assets, less liabilities 0.11% $ 39,414
-----------
Net Assets $34,948,523
===========
</TABLE>
Key:
(a) Cost for federal income tax purposes is the same.
(b) Non-income producing security.
(c) Collateralized by U.S. Government Securities having a market value of
$2,452,468; value at maturity $2,402,707.
See accompanying notes to financial statements. 31
<PAGE>
1997 Semi-Annual Report
Statement of Assets and Liabilities - December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Working Assets Money Citizens Income
Market Portfolio Portfolio
<S> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $119,190,664, $43,569,442,
$176,663,192, $67,097,944, and $29,522,755
respectively) (Note 1) $119,190,664 $ 45,157,206
Cash 1,784,108 32
Receivable for:
Interest 158,344 758,874
Dividends -- --
Fund shares sold -- 11,501
Investment securities sold -- --
Deferred organization costs (Note 1) -- --
Other assets -- --
Prepaid expenses 45,678 116,524
------------ ------------
Total Assets $121,178,794 $ 46,044,137
------------ ------------
LIABILITIES
Payables for:
Investment securities purchased -- --
Fund shares redeemed 43,609 --
Distributions 442,464 247,891
Accrued expenses 61,396 --
Other accounts payable 433 --
------------ ------------
Total Liabilities $ 547,902 $ 247,891
------------ ------------
NET ASSETS $120,630,892 $ 45,796,246
============ ============
Retail Shares
Net assets $102,763,641 $ 45,796,246
Shares outstanding 102,886,864 4,189,193
Net asset value, offering and redemption
price per share $ 1.00 $ 10.93
Institutional Shares
Net assets $ 17,867,251 --
Shares outstanding 17,867,251 --
Net asset value, offering and
redemption price per share $ 1.00 --
------------ ------------
NET ASSETS
At December 31, 1997 net assets consisted of:
Paid-in capital $120,630,892 $ 44,119,464
Accumulated net investment deficit -- --
Accumulated net realized gain (loss) -- 89,018
Net unrealized appreciation of investments -- 1,587,765
------------ ------------
$120,630,892 $ 45,796,246
============ ============
</TABLE>
32 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Assets and Liabilities - December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Citizens Index Citizens Emerging Citizens Global
Portfolio Growth Portfolio Equity Portfolio
<S> <C> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $119,190,664, $43,569,442,
$176,663,192, $67,097,944, and $29,522,755
respectively) (Note 1) $ 275,025,765 $ 76,572,020 $ 35,508,832
Cash 53 129 563
Receivable for:
Interest 245 959 353
Dividends 224,874 26,718 71,545
Fund shares sold 37,072 20,000 33,354
Investment securities sold 1,104,651 -- 540,971
Deferred organization costs (Note 1) 36,868 -- --
Other assets 763 -- --
Prepaid expenses -- 1,828 1,208
------------- ------------- -------------
Total Assets $ 276,430,291 $ 76,621,654 $ 36,156,826
------------- ------------- -------------
LIABILITIES
Payables for:
Investment securities purchased 1,741,993 4,757,491 1,138,078
Fund shares redeemed 49,215 148 47,527
Distributions 1,626 882 159
Accrued expenses 23,274 78,513 17,439
Other accounts payable 303 -- 5,100
------------- ------------- -------------
Total Liabilities 1,816,411 4,837,034 1,208,303
------------- ------------- -------------
NET ASSETS $ 274,613,880 $ 71,784,620 $ 34,948,523
============= ============= =============
Retail Shares
Net assets $ 257,031,828 $ 71,784,620 $ 34,948,523
Shares outstanding 13,314,633 4,881,786 2,462,072
Net asset value, offering and redemption
price per share $ 19.30 $ 14.70 $ 14.19
Institutional Shares
Net assets $ 17,582,052 -- --
Shares outstanding 1,120,457 -- --
Net asset value, offering and
redemption price per share $ 15.69 -- --
------------- ------------- -------------
NET ASSETS
At December 31, 1997 net assets consisted of:
Paid-in capital $ 176,142,446 $ 63,742,241 $ 29,036,682
Accumulated net investment deficit (381,803) (513,221) (391,017)
Accumulated net realized gain (loss) 490,664 (918,476) 316,781
Net unrealized appreciation of investments 98,362,573 9,474,076 5,986,077
------------- ------------- -------------
$ 274,613,880 $ 71,784,620 $ 34,948,523
============= ============= =============
</TABLE>
See accompanying notes to financial statements. 33
<PAGE>
1997 Semi-Annual Report
Statement of Operations - Six Months Ending December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Working Assets Citizens
Money Market Income
Portfolio Portfolio
--------- ---------
<S> <C> <C>
Investment Income
Interest $ 2,988,517 $ 1,522,190
Dividends -- --
------------ ------------
Total investment income -- 1,522,190
------------ ------------
Expenses
Investment management fees (Note 2) 184,007 133,803
Transfer agent fees 122,706 38,904
Custody and accounting fees 34,849 17,368
Distribution expense (Note 2) 87,239 51,463
Administration expense (Note 2) 91,258 30,459
Legal and audit fees 8,773 4,602
Registration fees 7,964 4,442
Trustees' fees and expenses 7,185 6,852
Printing and postage 8,807 2,733
Dues and insurance 5,250 1,491
Shareholder services 47,076 15,043
Other expenses 17,510 5,530
Amortization of organization costs -- --
------------ ------------
Total expenses 622,624 312,690
Reimbursement by Adviser (Note 2) (21,738) --
------------ ------------
Net expenses 600,886 312,690
------------ ------------
Net investment income (loss) 2,387,631 1,209,500
------------ ------------
Realized and Unrealized Gain (Loss) on Investments
Realized gain/(loss) on investments and
foreign currency transactions -- 217,964
Net change in unrealized
appreciation on investments and foreign currencies -- 1,223,316
------------ ------------
Net realized and unrealized gain
on investments and foreign currencies -- 1,441,280
------------ ------------
Net increase in net assets
resulting from operations $ 2,387,631 $ 2,650,780
============ ============
</TABLE>
(a) Net of $5,024 of foreign taxes withheld.
34 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Operations - Six Months Ending December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Citizens Emerging Citizens
Index Growth Global Equity
Portfolio Portfolio Portfolio
--------- --------- ---------
<S> <C> <C> <C>
Investment Income
Interest $ 42,069 $ 115,743 $ 93,356
Dividends 1,571,066 95,725 114,255(a)
------------ ------------ ------------
Total investment income 1,613,135 211,468 207,611
------------ ------------ ------------
Expenses
Investment management fees (Note 2) 641,709 342,560 166,484
Transfer agent fees 153,744 104,820 41,696
Custody and accounting fees 66,406 20,265 34,857
Distribution expense (Note 2) 301,358 85,640 41,621
Administration expense (Note 2) 654,827 66,906 28,227
Legal and audit fees 14,964 6,362 4,750
Registration fees 6,103 4,748 4,561
Trustees' fees and expenses 6,663 7,016 7,391
Printing and postage 13,866 10,479 3,298
Dues and insurance 7,887 4,379 1,440
Shareholder services 75,190 59,618 18,058
Other expenses 32,829 11,895 10,567
Amortization of organization costs 3,917 -- --
------------ ------------ ------------
Total expenses 1,979,463 724,688 362,950
Reimbursement by Adviser (Note 2) -- -- --
------------ ------------ ------------
Net expenses 1,979,463 724,688 362,950
------------ ------------ ------------
Net investment income (loss) (366,328) (513,220) (155,339)
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments
Realized gain/(loss) on investments and
foreign currency transactions 6,131,088 5,071,020 1,443,931
Net change in unrealized
appreciation on investments and foreign currencies 22,520,918 2,931,787 (759,263)
------------ ------------ ------------
Net realized and unrealized gain
on investments and foreign currencies 28,652,006 8,002,807 684,668
------------ ------------ ------------
Net increase in net assets
resulting from operations $ 28,285,678 $ 7,489,587 $ 529,329
============ ============ ============
</TABLE>
See accompanying notes to financial statements. 35
<PAGE>
1997 Semi-Annual Report
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Working Assets Citizens
Money Market Portfolio Income Portfolio
---------------------- ----------------
For the six For the For the six For the
months ended year ended months ended year ended
12/31/97 6/30/97 12/31/97 6/30/97
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,387,631 $ 4,227,404 $ 1,209,500 $ 2,160,329
Net realized gain on
investments -- -- 217,964 330,690
Net change in unrealized appreciation
(depreciation) of investments -- -- 1,223,316 503,520
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 2,387,631 4,227,404 2,650,780 2,994,539
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income -
Retail (1,939,185) (3,426,811) (1,209,526) (2,160,329)
Net investment income -
Institutional (448,446) (800,593) -- --
Net realized gain on
investments - Retail -- -- (28,154) --
Net realized gain on
investments - Insitutional -- -- -- --
------------ ------------ ------------ ------------
Total distributions (2,387,631) (4,227,404) (1,237,680) (2,160,329)
------------ ------------ ------------ ------------
Increase in net assets
resulting capital share
transactions (Note 5) 17,947,595 9,818,284 11,153,993 120,108
------------ ------------ ------------ ------------
Total increase in net assets 17,947,595 9,818,284 12,567,093 954,318
Net Assets
Beginning of period 102,683,297 92,865,013 33,230,170 32,275,852
------------ ------------ ------------ ------------
End of period $120,630,892 $102,683,297 $ 45,797,263 $ 33,230,170
Accumulated net
investment deficit
End of period $ -- $ -- $ -- $ --
============ ============ ============ ============
</TABLE>
36 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Citizens Citizens Citizens
Index Portfolio Emerging Growth Global Equity Portfolio
--------------- --------------- -----------------------
For the six For the For the six For the For the six For the
months ended year ended months ended year ended months ended year ended
12/31/97 6/30/97 12/31/97 6/30/97 12/31/97 6/30/97
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
$ (366,328) $ 106,984 $ (513,220) $ (665,517) $ (155,339) $ (143,194)
6,131,088 8,049,314 5,071,020 (1,434,350) 1,443,931 393,718
22,520,918 47,548,634 2,931,787 4,711,273 (759,263) 4,332,342
- ------------ ------------ ------------ ------------ ------------ ------------
28,285,678 55,704,932 7,489,587 2,611,406 529,329 4,582,866
- ------------ ------------ ------------ ------------ ------------ ------------
(34,132) (633,846) -- -- -- --
(79,294) (65,259) -- -- -- --
(11,994,101) (971,044) (4,557,534) (4,391,320) (1,327,373) --
(996,483) (65,259) -- -- -- --
- ------------ ------------ ------------ ------------ ------------ ------------
(13,104,010) (1,735,408) (4,557,534) (4,391,320) (1,327,373) --
- ------------ ------------ ------------ ------------ ------------ ------------
35,315,579 25,643,131 8,511,636 25,711,568 6,173,611 9,394,757
- ------------ ------------ ------------ ------------ ------------ ------------
50,497,247 79,612,655 11,443,689 23,931,654 5,375,567 13,977,623
224,116,633 144,503,978 60,340,931 36,409,277 29,572,956 15,595,333
- ------------ ------------ ------------ ------------ ------------ ------------
$274,613,880 $224,116,633 $ 71,784,620 $ 60,340,931 $ 34,948,523 $ 29,572,956
$ (381,803) $ 97,952 $ (513,221) -- $ (391,017) --
============ ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements. 37
<PAGE>
1997 Semi-Annual Report
Financial Highlights
Working Assets Money Market Portfolio - Retail Class
<TABLE>
<CAPTION>
For the six For the For the For the For the For the
months ended year ended year ended year ended year ended year ended
12/31/97 6/30/97 6/30/96 6/30/95 6/30/94 6/30/93
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value,
beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income 0.043 0.042 0.045 0.044 0.023 0.024
Less distributions
Dividends (from net
investment income) (0.043) (0.042) (0.045) (0.044) (0.023) (0.024)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
Total return 2.27% 4.30% 4.60% 4.51% 2.35% 2.43%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $102,764 $85,179 $78,326 $97,611 $103,766 $152,625
Ratio of expenses to
average net assets 1.24% 1.27% 1.21% 1.16% 1.16% 1.11%
Ratio of expenses to
average net assets
prior to reimbursement 1.29% 1.39% 1.21% 1.16% 1.16% 1.11%
Ratio of expenses to average
net assets net of
reimbursement and
fee waivers 1.24% 1.25% 1.18% 1.16% 1.16% 1.11%
Ratio of net income
to average net assets 4.45% 4.23% 4.56% 4.39% 2.31% 2.41%
Ratio of net income
to average net assets
prior to reimbursement 4.50% 4.12% 4.56% 4.39% 2.31% 2.41%
</TABLE>
* Commencement of Operations February 1, 1996.
** Annualized.
38 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights
Working Assets Money Market Portfolio -
Institutional Class
<TABLE>
<CAPTION>
For the six For the For the
months ended year ended period ended
12/31/97 6/30/97 6/30/96*
(unaudited)
<S> <C> <C>
$1.00 $1.00 $1.00
------ ------ ------
0.049 0.049 0.021
(0.049) (0.049) (0.021)
$1.00 $1.00 $1.00
====== ====== ======
2.55% 5.01% 2.09%
$17,867 $17,504 $14,539
0.67% 0.60% 0.47%**
0.67% 0.60% 0.47%
0.67% 0.60% 0.47%
5.01% 4.92% 5.16%**
5.01% 4.92% 5.16%
</TABLE>
See accompanying notes to financial statements. 39
<PAGE>
1997 Semi-Annual Report
Financial Highlights
<TABLE>
<CAPTION>
Citizens Income Portfolio
For the For the For the For the For the For the
six months year year year year year
ended ended ended ended ended ended
12/31/97 6/30/97 6/30/96 6/30/95 6/30/94 6/30/93
(unaudited)
Selected Per-Share Data
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $10.56 $10.28 $10.38 $10.04 $10.60 $10.07
------ ------ ------ ------ ------ ------
Income from
investment operations
Net investment income (loss) 0.47 0.67 0.66 0.65 0.55 0.46
Net gain (loss)
on securities (both
realized and unrealized) 0.57 0.28 (0.10) 0.36 (0.54) 0.54
------ ------ ------ ------ ------ ------
Total from investment
operations 1.04 0.95 0.56 1.01 0.01 1.00
------ ------ ------ ------ ------ ------
Less distributions
Dividends (from net
investment income) (0.66) (0.67) (0.66) (0.65) (0.55) (0.47)
Distributions (from net
realized gains) (0.01) -- -- (0.02) (0.02) --
------ ------ ------ ------ ------ ------
Total distributions (0.67) (0.67) (0.66) (0.67) (0.57) (0.47)
------ ------ ------ ------ ------ ------
Net asset value, end of period $10.93 $10.56 $10.28 $10.38 $10.04 $10.60
====== ====== ====== ====== ====== ======
Total return 6.60% 9.57% 5.48% 10.45% 5.09% 12.58%
Ratios and Supplemental Data
Net assets, end
of period (thousands) $45,796 $33,230 $32,276 $30,122 $24,410 $12,601
Ratio of expenses
to average net assets 1.52% 1.47% 1.43% 1.35% 1.25% 1.42%
Ratio of expenses
to average net assets
prior to reimbursement
& fee waivers 1.52% 1.47% 1.48% 1.48% 2.01% 2.38%
Ratio of expenses
to average net assets
net of reimbursement
& fee waivers 1.52% 1.41% 1.38% 1.35% 1.25% 1.42%
Ratio of net income
(loss) to average net assets 5.88% 6.44% 6.26% 6.47% 5.43% 4.98%
Ratio of net income (loss) to
average net assets prior
to reimbursement 5.88% 6.44% 6.21% 6.34% 4.68% 4.02%
Portfolio turnover rate 53.88% 64.56% 41.36% 46.03% 52.62% 22.35%
Average broker commission
per share
</TABLE>
* Annualized
** Commencement of operations March 3, 1995
40 ***Commencement of operations January 25, 1996
<PAGE>
Citizens Trust
Financial Highlights
<TABLE>
<CAPTION>
Citizens Index Portfolio Citizens Index Portfolio
Retail Shares Institutional Shares
For the For the For the For the For the For the For the
six months year year period six months year period
ended ended ended ended ended ended ended
12/31/97 6/30/97 6/30/96 6/30/95** 12/31/97 6/30/97 6/30/96***
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
$18.04 $13.41 $10.94 $10.00 $14.84 $11.00 $10.00
------ ------ ------ ------ ------ ------ ------
(0.03) -- 0.08 0.01 -- 0.08 0.08
2.24 4.78 2.47 0.93 1.80 3.94 0.92
------ ------ ------ ------ ------ ------ ------
2.21 4.78 2.55 0.94 1.80 4.02 1.00
------ ------ ------ ------ ------ ------ ------
-- (0.06) (0.03) -- -- (0.09) --
(0.95) (0.09) (0.05) -- (0.95) (0.09) --
------ ------ ------ ------ ------ ------ ------
(0.95) (0.15) (0.08) -- (0.95) (0.18) --
------ ------ ------ ------ ------ ------ ------
$19.30 $18.04 $13.41 $10.94 $15.69 $14.84 $11.00
12.29% 35.88% 23.41% 9.40%* 12.68% 36.93% 10.00%*
====== ====== ====== ====== ====== ======= =======
257,032 $211,116 $136,980 $106,096 $17,582 $13,001 $7,524
1.59% 1.63% 1.82% 1.75%* 0.80% 0.88% 1.01%*
1.59% N/A 1.82% N/A 0.80% 0.88% 0.98%*
1.59% N/A 0.68% N/A 0.80% 0.88% 2.37%*
-0.33% 0.02% 0.68% 0.98%* 0.46% 0.76% 2.37%*
-0.33% 0.02% 0.68% 0.98%* 0.46% 0.76% 2.37%*
10.12% 18.64% 6.44% 64.95% 10.12% 18.64% 6.44%*
$0.0464 $0.0443 -- -- $0.0464 $0.0443 --
</TABLE>
See accompanying notes to financial statements. 41
<PAGE>
1997 Semi-Annual Report
Financial Highlights - Six Months Ending December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Citizens Emerging Growth Portfolio
For the For the For the For the For the
six months year ended year ended year ended period ended
ended 12/31/97 6/30/97 6/30/96 6/30/95 6/30/94**
(unaudited)
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $14.14 $14.87 $11.87 $9.93 $10.00
------ ------ ------ ------ ------
Income (loss) from
investment operations
Net investment income (loss) (0.11) (0.16) (0.13) 0.07 0.01
Net gain (loss) on securities
(both realized and
unrealized) 1.67 0.68 4.72 2.18 (0.08)
------ ------ ------ ------ ------
Total from investment
operations 1.56 0.52 4.59 2.25 (0.07)
------ ------ ------ ------ ------
Less distributions
Dividends (from net
investment income) - - - (0.09) -
Distributions (from net
realized gains) (1.00) (1.25) (1.59) (0.22) -
------ ------ ------ ------ ------
Total distributions (1.00) (1.25) (1.59) (0.31) -
------ ------ ------ ------ ------
Net asset value, end of period $14.70 $14.14 $14.87 $11.87 $9.93
------ ------ ------ ------ ------
Total return 11.44% 4.03% 42.43% 23.24% -1.80%*
------ ------ ------ ------ ------
Ratios and Supplemental Data
Net assets, end of period
(thousands) $71,785 $60,341 $36,409 $10,638 $3,754
Ratio of expenses to
average net assets 2.12% 2.01% 2.10% 1.90% 1.89%*
Ratio of expenses to average
net assets prior to reimbursement
& fee waivers 2.12% 2.01% 2.34% 2.93% 3.81%*
Ratio of expenses to average
net assets net of
reimbursement & fee waivers 2.12% 1.99% 2.02% 1.90% 1.89%*
Ratio of net income (loss)
to average net assets -1.50% -1.32% -1.64% 0.53% 0.63%*
Ratio of net income (loss)
to average net assets
prior to reimbursement -1.50% -1.32% -1.88% -0.50% -1.29%*
Portfolio turnover rate 123.60% 228.66% 337.41% 231.30% 33.35%
Average broker commision
per share $0.0212 $0.0222 - - -
</TABLE>
* Annualized
** Commencement of operations February 8, 1994
42 See accompanying notes to financial statements.
<PAGE>
Citizens Trust
Financial Highlights - Six Months Ending December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Citizens Global Equity Portfolio
For the For the For the For the For the
six months year ended year ended year ended period ended
ended 12/31/97 6/30/97 6/30/96 6/30/95 6/30/94**
(unaudited)
<S> <C> <C> <C> <C> <C>
$14.47 $11.89 $10.69 $9.80 $10.00
------ ------ ------ ----- ------
(0.08) (0.07) (0.10) (0.01) 0.01
0.36 2.65 1.43 0.96 (0.21)
------ ------ ------ ----- ------
0.28 2.58 1.33 0.95 (0.20)
------ ------ ------ ----- ------
- - - - -
(0.56) - (0.13) (0.06) -
------ ------ ------ ----- ------
(0.56) - (0.13) (0.06) -
------ ------ ------ ----- ------
$14.19 $14.47 $11.89 $10.69 $9.80
------ ------ ------ ----- ------
1.93% 21.70% 12.52% 9.77% -5.14%*
------ ------ ------ ----- ------
$34,951 $29,573 $15,595 $9,503 $5,639
2.18% 2.33% 2.72% 2.50% 2.50%*
2.18% 2.33% 2.72% 2.99% 3.16%*
2.18% 2.10% 1.55% 2.50% 2.50%
-0.93% -0.69% -1.01% 0.00% 0.25%
-0.93% -0.69 -1.01% -0.49% -0.41%*
42.36% 69.34% 85.92% 22.10% 0.00%
$0.0199 $0.0204 - - -
</TABLE>
See accompanying notes to financial statements. 43
<PAGE>
1997 Semi-Annual Report
Notes to Financial Statements - December 31, 1997 (unaudited)
NOTE 1 - Summary of Significant Accounting Policies
Organization
Working Assets Money Market Portfolio, Citizens Income Portfolio, Citizens
Index Portfolio, Citizens Emerging Growth Portfolio and the Citizens Global
Equity Portfolio (the "Portfolios") are each a series of shares of beneficial
interest of Citizens Investment Trust ("Citizens Trust" or the "Trust"). 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 Portfolios
Working Assets Money Market Portfolio - 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.
Security Valuation
Working Assets Money Market Portfolio'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
Adviser, the Trust's adviser, in good faith under the supervision of the
Board of Trustees.
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 seeks
to maintain a continuous net asset value per share of $1.00 and intends 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 and
Citizens Index 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,
44
<PAGE>
Citizens Trust
Notes to Financial Statements - December 31, 1997 (unaudited)
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 treading 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 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.
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 shareholder from net investment income and
net capital gains, if any, are distributed annually. With respect to the
Working Assets Money Market 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. Costs of $123,223 for the E*Fund Portfolio were written
off and charged to capital during the six months ending December 31, 1997.
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.
45
<PAGE>
1997 Semi-Annual Report
Notes to Financial Statements - December 31, 1997 (unaudited)
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") 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, .65%; Citizens Index Portfolio, .50%; Citizens Emerging Growth
Portfolio and Citizens Global Equity Portfolio, 1.00%. 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 and Citizens Global Equity Portfolio, 2.10% and 2.50%,
respectively, of average net assets. The Adviser may also voluntarily reduce
its fee or waive reimbursement of distribution costs so that the total
expenses of a Portfolio are below such limits. Such voluntary reimbursements
may cease at any time. Reimbursements for the period ended December 31, 1997,
were $21,738 for the Working Assets Money Market Portfolio.
Seneca Capital Management serves as the Sub-Adviser for the Citizens Income
Portfolio and Citizens Emerging Growth Portfolio. Clemente Capital, Inc.
serves as the Sub-Adviser for Citizens Global Equity Portfolio and RhumbLine
Advisers serves as the Sub-Adviser for Citizens Index Portfolio. For their
services, the Sub-Advisers receive fees, paid by the Adviser as follows:
Percent of average Percent of management
net assets fee paid Adviser
---------- ----------------
Money Market Portfolio .08% _
Income Portfolio .165% _
Index Portfolio .10% _
Emerging Growth Portfolio _ 35%
Global Equity Portfolio .35% _
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 Institutional Classes
of the Money Market Portfolio and the Citizens Index Portfolio, which have no
distribution-related expenses.
Pursuant to an Administrative Services Agreement, the Adviser assumes a
number of general administrative services for each Portfolio 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 and Citizens Global Equity Portfolio .10%; and Citizens
Index Portfolio - Retail Class .50%.
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 $6,000 and $1,000 for
each day's attendance of a trustee's meeting, except for the Chair, who
receives an annual retainer of $9,000 as well as $1,000 for each day's
attendance of a trustee's meeting.
46
<PAGE>
Citizens Trust
Notes to Financial Statements - December 31, 1997 (unaudited)
NOTE 3 - Investment Securities
Purchases of investments, other than short-term securities, aggregated
$31,435,451, $47,589,191, $83,483,078 and $4,025,350 for the Citizens Income
Portfolio, Citizens Index Portfolio, Citizens Emerging Growth Portfolio and
Citizens Global Equity Portfolio, respectively, for the period ended
December 31, 1997. Sales of investments, other than short-term securities,
aggregated $5,238,196, $25,871,745, $84,385,921 and $1,477,631 for the
Citizens Income Portfolio, Citizens Index Portfolio, Citizens Emerging Growth
Portfolio and Citizens Global Equity Portfolio, respectively, for the period
ended December 31, 1997.
The amount of unrealized appreciation (depreciation) of investments as of
December 31, 1997, is as follows:
Income Index Emerging Growth Global Equity
Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- ---------
Gross Appreciation $1,645,610 $104,343,693 $13,027,651 $6,814,581
Gross Depreciation (56,829) (5,981,120) (3,553,575) (828,504)
---------- ------------ ----------- ----------
Net Appreciation $1,588,781 $ 98,362,573 $ 9,474,076 $5,986,077
========== ============ =========== ==========
Investments have the same cost for tax and financial statement purposes.
NOTE 4 - Restricted Securities
On December 31, 1997, 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, 1997, 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, April 1, 1993 $250,000
Series A Conv. Pfd
Vulcan Power Co., June 1, 1993 300,000
Class A --------
Total $550,000
========
At December 31, 1997, the cost and market value of Energia Global were the
same. Vulcan Power had no market value on December 31, 1997. Total restricted
securities represented 0.09% of net assets.
47
<PAGE>
1997 Semi-Annual Report
Notes to Financial Statements - December 31, 1997 (unaudited)
NOTE 5 - Capital Shares
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Working Assets Money Market Portfolio
Retail Class
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
<S> <C> <C> <C> <C>
Shares sold 103,468,741 $103,468,741 112,553,683 $112,553,683
Shares issued in connection
with the acquisition
of the E*Fund 20,424,963 20,424,963 - -
Shares redeemed (107,716,940) (107,716,940) (109,064,955) (109,064,955)
Shares issued in
reinvestment of distributions 1,530,687 1,530,687 3,364,638 3,364,638
--------- --------- --------- ---------
Net increase 17,707,451 $17,707,451 6,853,366 $ 6,853,366
========== =========== ========= ===========
<CAPTION>
Working Assets Money Market Portfolio
Institutional Class
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
Shares sold 6,175,073 $ 6,175,073 13,951,439 $13,951,439
Share redeemed (6,175,171) (6,175,171) (11,780,996) (11,780,996)
Shares issued in
reinvestment of distributions 363,465 363,465 794,475 794,475
--------- --------- --------- ---------
Net increase 363,367 $ 363,367 2,964,918 $ 2,964,918
========== =========== ========= ===========
<CAPTION>
Citizens Income Portfolio
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
Shares sold 530,024 $ 5,734,966 838,253 $ 8,769,851
Shares issued in connection
with the acquisition
of the Muir Portfolio 996,127 10,678,482 - -
Shares redeemed (562,539) (6,093,661) (1,003,548) (10,461,769)
Shares issued in
reinvestment of distributions 77,107 834,206 173,608 1,812,026
--------- --------- --------- ---------
Net increase 1,040,719 $11,153,993 98,313 $ 120,108
========== =========== ========= ===========
</TABLE>
48
<PAGE>
Citizens Trust
Notes to Financial Statements - December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Citizens Index Portfolio-Retail Class
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
<S> <C> <C> <C> <C>
Shares sold 1,976,456 $38,778,136 2,973,987 $45,828,710
Shares redeemed (976,118) (19,114,766) (1,591,178) (24,219,385)
Shares issued in reinvestment
of distributions 614,254 11,775,249 105,816 1,574,541
--------- --------- --------- ---------
Net increase 1,614,592 $31,438,619 1,488,625 $23,183,866
========== =========== ========= ===========
<CAPTION>
Citizens Index Portfolio-Institutional Class
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
Shares sold 256,454 $ 4,091,261 291,398 $3,682,414
Shares redeemed (79,099) (1,255,110) (109,750) (1,348,908)
Shares issued in
reinvestment of distributions 66,804 1,040,809 10,317 125,759
--------- --------- --------- ---------
Net increase 244,159 $ 3,876,960 191,965 $ 2,459,265
========== =========== ========= ===========
<CAPTION>
Citizens Emerging Growth Portfolio
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
Share sold 4,860,464 $74,683,892 5,552,259 $76,934,885
Shares redeemed (4,562,752) (70,555,671) (4,052,228) (55,472,753)
Shares issued in
reinvestment of distributions 315,354 4,383,415 319,747 4,249,436
--------- --------- --------- ---------
Net increase 613,066 $ 8,511,636 1,819,778 $25,711,568
========== =========== ========= ===========
<CAPTION>
Citizens Global Equity Portfolio
Six Months Ended Year Ended
December 31, 1997 June 30, 1997
Shares Value Shares Value
------ ----- ------ ----
Shares sold 529,456 $ 7,848,481 982,862 $12,555,317
Shares redeemed (195,236) (2,861,424) (249,910) (3,160,560)
Shares issued in
reinvestment of distributions 83,443 1,186,554 - -
--------- --------- --------- ---------
Net increase 417,663 $ 6,173,611 732,952 $ 9,394,757
========== =========== ========= ===========
</TABLE>
49
<PAGE>
1997 Semi-Annual Report
Notes to Financial Statements - December 31, 1997 (unaudited)
NOTE 6 - Custody of Securities
Under an agreement with the Custodian Bank, custody fees are reduced by
credits for cash balances. Such reductions totaled $137,098 and $143,915 for
the Trust during the years ended June 30, 1997, and 1996, respectively and
$45,471 for the six months ended December 31, 1997.
Note 7 - Acquisition of funds
On September 12, 1997, the Citizens Income Portfolio acquired all the net assets
of the Muir California Tax-Free Income Portfolio pursuant to a plan of
reorganization approved by the Muir California Tax-Free Income Portfolio
shareholders on September 12, 1997. The acquisition was accomplished by exchange
of 996,127 shares of the Citizens Income Portfolio (valued at $10,678,482) for
the 655,524 shares of the Muir California Tax-Free Income Portfolio outstanding
on September 12,1997. The Muir California Tax-Free Income Portfolio's net assets
at that date ($10,678,433), including $211,381 of unrealized appreciation, were
combined with those of the Citizens Income Portfolio. The aggregate net assets
of the Citizens Income Portfolio and the Muir California Tax-Free Income
Portfolio were $34,629,785 and $10,678,433, respectively, prior to the
acquisition and the combined net assets were $45,308,268 immediately following
the acquisition.
On December 5, 1997, the Working Assets Money Market Portfolio Retail Class
acquired all the net assets of the E*Fund pursuant to a plan of reorganization
approved by the E*Fund shareholders on December 1, 1997. The acquisition was
accomplished by a tax-free exchange of 20,424,963 shares of the Working Assets
Money Market Portfolio Retail Class (valued at $20,424,963) for the 20,424,963
shares of the E*Fund outstanding on December 5 ,1997. The E*Fund's net assets at
that date ($20,424,963) were combined with those of the Working Asset Money
Market Portfolio Retail Class. The aggregate net assets of the Working Asset
Money Market Portfolio Retail Class and the E*Fund were $85,009,370 and
$20,424,963, respectively, prior to the acquisition and the combined net assets
were $105,434,333 immediately following the acquisition, including the write-off
of $123,223 of unamortized organizational expenses.
50
<PAGE>
Citizens Trust
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51
<PAGE>
1997 Semi-Annual Report
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52
<PAGE>
1997 SEMI-ANNUAL REPORT SERVICE PROVIDERS:
Distributor
Citizens Securities
One Harbour Place, Portsmouth, NH 03801
800-223-7010 [bullet] 603-436-5152
Manager
Citizens Advisers
One Harbour Place, Portsmouth, NH 03801
800-223-7010
Trustees
Azie Taylor Morton, Chair; William D. Glenn II; Sophia Collier*;
Lokelani Devone; Juliana Eades; J.D. Nelson*; Ada Sanchez;
Robert Reich*; Mitchell Johnson
*Interested Trustees
Custodian
State Street Bank and Trust Company
Boston, MA
Transfer Agent & Dividend Disbursing Agent
PFPC Inc.
Wilmington, DE
Legal Counsel
Bingham, Dana, LLP
Boston, MA
Independent Auditors
Tait, Weller & Baker
Philadelphia, PA
World Wide Web Address: http://www.citizensfunds.com
(c)1998 Citizens Advisers
Printed on recycled paper using soy-based inks.
<PAGE>
[Back cover]
[Citizens Trust logo]
CITIZENS
TRUST(TM)
One Harbour Place
Suite 525
Portsmouth, New Hampshire
03801
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