1999 Annual Report
A milestone like this
only comes along once.
[Logo Citizen Funds]
<PAGE>
"Ours is an approach that
seeks to identify better-
managed, more enlightened,
forward-thinking companies.
We are firm in our belief that
it is these companies that
ultimately deliver better
returns to their shareholders."
John L. Shields
President and Chief Executive Officer
<PAGE>
[picture of John L. Shields]
Dear Shareholder -- It gives me great satisfaction to begin this, my first
annual report letter to shareholders, by telling you that Citizens Funds now
has more than $1 billion in assets under management.
That's a singular accomplishment for a fund family as relatively young as ours
- -- one that shows that growing numbers of investors are coming to recognize the
value of our unique investment approach.
As you know, ours is an approach that combines rigorous financial, social and
environmental screening in an effort to identify better-managed, more
enlightened, forward-thinking companies both domestically and internationally.
We are firm in our belief that it is these companies that ultimately deliver
better returns to their shareholders.
Accordingly, we think you will be interested in the performance our funds
achieved during the current year. I encourage you to read the detailed reports,
including manager commentary, that follow this letter.
Passing the $1 billion mark is meaningful to Citizens Funds and our
shareholders for a number of reasons.
At the most basic level, it demonstrates a growing awareness of socially
responsible investing in general and confidence in our specific approach to it.
That certainly seems to explain why we are seeing heightened attention being
paid to us by retirement plans. Participants in corporate retirement programs
such as 401(k) plans are approaching their management and asking for access to
a fund family that invests in companies that are not only financially strong,
but sensitive to their workforce and the environment. Increasingly, those
corporations are including Citizens Funds among the funds they offer in their
retirement programs.
Our growth has also made it possible for us to increase the size of our Social
Research team and step up our commitment to social activism. Let me give you
one example. In recent months,
<PAGE>
Citizens Funds played a pivotal role in convincing Universal Health Services of
Pennsylvania, America's third largest hospital management company, to begin
eliminating polyvinyl chloride (PVC) plastic-based medical supplies from its
business. Through a resolution filed on behalf of our shareholders, we
negotiated a "memorandum of understanding" under which Universal Health
Services has agreed to formally request its suppliers to identify and make
available PVC-free alternative medical devices. The goal is to reduce exposure
to harmful chemicals and the release of dioxin into the atmosphere.
There's yet another benefit associated with our growth. As our assets increase,
we are able to expand our customer service capabilities, thus re-emphasizing
our commitment to the people who've helped us get where we are today. As we
have been since our inception, we are committed to provide a level of customer
service to you that is nothing less than the very best.
I am certain that Citizens Funds stands to achieve many milestones in the years
ahead. But for all of us who play a role in the current and future direction of
the company, passing the $1 billion mark is a very special achievement indeed.
I am personally proud to have had the opportunity to recognize it.
My best regards:
/s/ John L. Shields
John L. Shields
President and Chief Executive Officer
Past performance does not guarantee future results. The value of an investment
in Citizens Funds mutual funds will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original costs.
Please call us for a prospectus that contains complete details of fees and
expenses and should be read carefully before investing.
<PAGE>
Table of Contents
President's Letter 1
Managers' Comments 4
Statement of Investments 14
Statement of Assets and Liabilities 40
Statement of Operations 42
Statement of Changes in Net Assets 44
Financial Highlights 46
Notes to Financial Statements 53
Report of Independent Accountants 64
<PAGE>
[Picture of Sophia Collier]
Lead manager of
the Citizens Index
Fund team since
its inception,
March 1995.
Managers' Comments -- Citizens Index Fund
Objective: Long-term capital appreciation. The Ground Rules: Invests primarily
in the securities comprising the Citizens Index,[TM] a market-weighted index of
300 companies. The Results: Total return for the six- and twelve-month periods
ended June 30, 1999 for the Standard shares was 12.04% and 31.58%,
respectively. The Institutional Class shares returned 12.45% and 32.62% for the
same periods. The S&P 500 Index ended the year with a six-month return of
12.26% and a twelve-month total return of 22.76%.
For the twelve-month period ended June 30, 1999, the Citizens Index
Fund--Standard shares had a total return of 31.58%, outperforming the S&P 500
Index by 8.82%. For the six-month period ended June 30, 1999 the Standard
shares had a total return of 12.04%. The Citizens Index Fund-Institutional
Class shares had a total one-year return for the year ended June 30, 1999 of
32.62% and a six-month return of 12.45% for the period ended June 30, 1999.
According to Lipper, Inc., a well-known mutual fund rating company, the
Citizens Index Fund--Standard shares ranked 110, outperforming 89% of all 1,067
growth funds for the one-year ended June 30, 1999 and ranked 24, outperforming
96% of all 654 funds for the three years, ended June 30, 1999.
Citizens Index Fund (Standard Shares)
Growth of $10,000 since inception
Citizens Index Fund (Standard Shares)
Growth of $10,000 since inception
[line chart]
Index Retail Portfolio S&P500 Citizens Index
1995 9.40% 10,490 1995 13.18% 11,318 1995 14.69% 11,469
1996 23.41% 13,501 1996 26.00% 14,260 1996 26.23% 14,477
1997 35.89% 18,347 1997 34.70% 19,209 1997 38.69% 20,079
1998 36.50% 25,043 1998 30.21% 25,012 1998 38.57% 27,823
1999 31.58% 32,952 1999 22.76% 30,705 1999 33.80% 37,227
[end line chart]
Past performance is not indicative of future results. Total return for the
period ended 6/30/99: one year 31.58%; average annual since inception 31.72%.
Citizens Index Fund commenced operations 3/3/95.
The market low of last fall, induced by the Asian financial crisis, is now a
distant memory. Three swift interest rate reductions by the Federal Reserve
(Fed), starting in late September, successfully returned liquidity and investor
confidence to the markets. In response to the Fed injection, the market moved
significantly upward from early October into May of this year. In mid-May, word
from the Fed regarding their discomfort with the still rapid pace of economic
growth and the
4
<PAGE>
Managers' Comments -- Citizens Index Fund
developing imbalances in the economy, set the market into a volatile trading
range. Actions by the Fed on June 30th closed the year on a surprisingly
positive note. The much-anticipated 25 basis point increase was accompanied by
a not-so-anticipated announcement of a return to a neutral monetary policy
bias. This shift from a tightening to a neutral bias lessened the probability
of a near-term increase and moved the market up strongly.
Citizens Index Fund (Institutional Class Shares)
Growth of $10,000 since inception
Citizens Index Fund (Institutional Class Shares)
Growth of $10,000 since inception
[line chart]
Index Retain Portfolio S&P500 Citizens Index
1996 10.00% 11,000 1996 8.98% 10,898 1996 11.41% 11,141
1997 36.83% 15,051 1997 34.70% 14,680 1997 38.69% 15,451
1998 37.24% 20,656 1998 30.21% 19,115 1998 38.57% 21,411
1999 32.62% 27,395 1999 22.76% 23,465 1999 33.80% 28,648
[end line chart]
Past performance is not indicative of future results. Total return for the
period ended 6/30/99: one year 32.62%; average annual since inception 34.22%.
Citizens Index Fund commenced operations 1/25/96.
Despite this volatile environment, the Fund performed well. The largest
contribution to the significant outperformance came from the Fund's heavy
weighting in technology versus the S&P 500. The best performing stock of the
Citizens Index Fund for the year was Qualcomm, Inc. (+422%). Qualcomm was up
strongly on the success of its wireless technologies, increasing margins and
the announcement of a patent litigation settlement. Charles Schwab, also a top
performer (+402%), rose with the success of its on-line brokerage service.
There were some disappointments as well. Among the companies with the largest
impact on performance were Coca-Cola Co. (-27%), which suffered from difficulty
in their overseas markets and Compaq Computer (-16%), which was down on margin
pressure in the personal computer market and an unclear restructuring plan.
Despite the recent strong performance of the equity markets, we anticipate
market trends to move closer to the historical average. In the near-term, the
market is expected to remain sensitive to economic developments likely to move
the Fed toward another tightening. Any movement in short term interest rates is
likely to be upward, but minor. Overall, we expect the environment for equity
investments to remain positive.
5
<PAGE>
[Picture of Richard Little]
Richard Little
Lead manager of the
Citizens Emerging
Growth Fund team
since its inception,
February 1994.
Managers' Comments -- Citizens Emerging Growth Fund
Objective: Aggressive growth. The Ground Rules: During normal market
conditions, invests primarily in the common stock of medium-sized companies
whose market capitalizations, at the time of acquisition, are in the
capitalization range of the S&P MidCap 400 Index. The Results: Total return for
the six- and twelve-month periods ended June 30, 1999 was 13.81% and 36.04%,
respectively. The S&P MidCap 400 Index ended the year with a six-month return
of 6.92% and a twelve-month total return of 16.94%.
The Citizens Emerging Growth Fund returned 13.81% and 36.04% for the six- and
twelve-month periods ended June 30, 1999. Disciplined stock picking and focus
on underlying fundamentals resulted in strong outperformance of the Fund's
benchmark, the S&P MidCap 400 Index, which returned 6.92% and 16.94% for the
same six- and twelve-month periods. The Citizens Emerging Growth Fund
outperformed 93% of all 361 mid-cap funds for the one year ended June 30, 1999
according to Lipper, Inc., a well-known mutual fund rating company.
Citizens Emerging Growth Fund
Growth of $10,000 since inception
[line chart]
Emerging Growth Portfolio S&P500 Mid Cap
1994 -0.70% 9,930 1994 -7.40% 9,260
1995 23.24% 12,238 1995 22.38% 11,333
1996 42.43% 17,430 1996 21.56% 13,776
1997 4.03% 18,133 1997 23.35% 16,993
1998 33.05% 24,125 1998 27.13% 21,603
1999 36.04% 32,820 1999 17.17% 25,311
[end line chart]
Past performance is not indicative of future results. Total return for the
period ended 6/30/99: one year 36.04%; five year 26.99%; average annual since
inception 24.66%. Citizens Emerging Growth Fund commenced operations 2/8/94.
Investors had a dizzying ride the last 12 months, as the volatility of the
second half of 1998 continued into 1999. After sinking to lows for the year in
October 1998, the S&P MidCap 400 Index rallied to new highs in January 1999
(+43% since October 1998). This was immediately followed by a dip again in
February (-10% for the month) and another rally back to new highs by the end of
June (+17% since February 1999). Through it all, the market rotated
frantically, moving
6
<PAGE>
Managers' Comments -- Citizens Emerging Growth Fund
from growth to value and from cyclicals to staples. Had we not focused on and
persevered with the individual companies we owned, we would have been whipsawed
by trying to catch market waves. Instead, our portfolio endured ups and downs,
but ultimately delivered strong returns.
Technology stocks were once again the top performers in the Fund for the year.
Telecommunications were the standout winners in the technology group. Broadcom,
a semiconductor component supplier to the telecommunications industry, was up
221% from the time of our purchase in the fourth quarter of 1998. Qualcomm
gained 454% in the first six months of 1999 due to the strong validation of the
company's technology. Qualcomm manufactures and licenses advanced
communications systems based on proprietary digital wireless technology. Both
of these companies, and the telecom sector in general, are benefiting from the
convergence of voice and data.
The Fund outperformed its benchmark index due to heavier weightings in
technology, particularly telecommunications technology. Good stock selection
(which included heavier weightings in particular stocks versus the benchmark
and inclusion of non-benchmark securities) also contributed to the Fund's
outperformance.
Other technology sectors that growth investors typically favor did not fare as
well, due in part to demand slowdowns related to Y2K. We anticipated this
outcome and began to reduce our positions in certain technology service stocks
early in 1999, among them Documentum and Computer Horizons.
Health care companies, another habitual emphasis for growth investors, have
suffered thus far in 1999, in response to changed government reimbursement
rules. Fortunately, we had little exposure in this area, and remain quite
underweighted versus the benchmark.
Earnings potential looks very strong coming out of the second quarter of 1999.
This should continue to the end of the year despite difficult timing issues
surrounding the Y2K transition, a time when companies appear to be retarding
their purchases of certain computer related equipment and services. The
specific growth drivers for our companies remain intact and we will continue to
search out stocks that will outperform, such as companies capitalizing on
innovations in telecommunications and e-commerce.
7
<PAGE>
[Picture of Lilia Clemente]
Lilia Clemente
A lead member of
the Citizens Global
Equity Fund
management team
since its inception,
February 1994.
Managers' Comments -- Citizens Global Equity Fund
Objective: Capital appreciation. The Ground Rules: Invests primarily in common
stocks of both U.S. domestic and foreign companies with a plan to allocate more
than half our assets to foreign markets, in most circumstances in a minimum of
three countries. To reduce risk, the Fund cannot invest more than 25% in
emerging markets. The Results: Total return for the six- and twelve-month
periods ended June 30, 1999 was 10.49% and 22.34%, respectively. The Financial
Times World Index ended the year with a six-month return of 9.46% and a
twelve-month total return of 16.36%.
The Citizens Global Equity Fund achieved a strong 10.49% return for the
six-month period ended June 30, 1999, and 22.34% return for the twelve-month
period ended June 30, 1999, its third consecutive year with returns above 20%.
The Fund once again outperformed its benchmark, the Financial Times World
Index, which gained 9.46% and 16.36% during the same periods. The Fund also had
a strong showing relative to its peers, outperforming 93% of all 239 global
funds for the one year ended June 30, 1999 according to Lipper, Inc., a
well-known mutual fund rating company.
Citizens Global Equity Fund
Growth of $10,000 since inception
[line chart]
Citizens Global Equity FT World Index
1994 -2.00% 9,800 1994 -0.89% 9,911
1995 9.77% 10,757 1995 6.84% 10,589
1996 12.52% 12,104 1996 15.85% 12,267
1997 21.70% 14,731 1997 19.38% 14,645
1998 21.75% 17,935 1998 15.98% 16,985
1999 22.34% 21,942 1999 16.36% 19,764
[end line chart]
Past performance is not indicative of future results. Total return for the
period ended 6/30/99: one year 22.34%; five year 17.49%; average annual since
inception 15.69%. Citizens Global Equity Fund commenced operations 2/8/94.
Following last fall's period of global financial turmoil, global investors
expected to be in for a bumpy ride. In fact, the markets regained many of their
losses, primarily due to the continuation of the "Goldilocks" scenario of
moderate growth with low inflation in the U.S., and positive economic news
followed by rebounding markets in Asia and Latin America.
8
<PAGE>
[Picture of Sevgi Ipek]
Sevgi Ipek
A lead member of
the Citizens Global
Equity Fund
management team
since 1995.
Managers' Comments -- Citizens Global Equity Fund
Europe presented a somewhat different challenge for investors, especially in
recent months as the markets struggled with softening economic growth, a weak
new currency and conflict in Kosovo. The European Central Bank responded by
cutting interest rates, thus improving prospects for growth later this year.
Our focus on growth businesses with superior product offerings led us to some
excellent investment opportunities. Two of our best
performing stocks during the past twelve months were from Europe.
Real Software, a Belgian software and information technology
company, posted a return of 175%. Another of our big winners was
Nokia of Finland, up 153%, the result of strong growth in mobile
phones and wireless telecommunications networks. In the U.S., Sun Microsystems
showed returns in excess of 200%, benefiting from its joint venture with
America Online and Netscape for the use of its Java language to develop
Internet applications.
In Japan, one of our favorites, NTT Data Corporation, Japan's dominant
telecommunications company, provided us with returns in excess of 50%. In fact,
the Tokyo market has been one of the best performing developed markets so far
in 1999 and we began adding to our positions in Japan starting in February. Our
holdings remain primarily export-oriented firms, such as Canon and Fuji Photo
Film, which continue to reap the benefits of a weak yen versus the U.S. dollar.
The Fund's Japanese exposure increased this year from 5% to over 13%.
The Fund's strong performance versus its benchmark index over the past twelve
months is a result of the Fund's emphasis on the technology,
telecommunications, media and financial services sectors. The Fund was absent
from commodity related stocks, an area which underperformed during the same
time period.
Going forward, Japan will continue to be an area of interest. In the U.S., we
expect to maintain our weighting at about one-third of total fund assets, with
a focus on blue chip, steady growth and global leadership companies. In Europe,
the interest rate backdrop remains supportive with room for yields to fall
further, meaning greater incentive for European investors to buy equities. We
will maintain our weighting in European markets at approximately 40%.
The prospects for emerging markets of Asia and Latin America have substantially
improved. Ongoing restructuring and improving economic growth have made us more
optimistic about returning to those markets. We have been selectively adding
positions in South Korea, Mexico and Brazil.
9
<PAGE>
[Picture of Gail Seneca]
Gail Seneca
Lead manager of the
Citizens Income
Fund team since
November 1993.
Managers' Comments -- Citizens Income Fund
Objective: Generating current income and paying a dividend each month. The
Ground Rules: Invests at least 65% of Fund assets in taxable bonds rated at
least "investment grade." Up to 35% of Fund assets may be invested in
non-investment grade securities. The Results: Total return for the six- and
twelve-month periods ended June 30, 1999 was -1.28% and 0.78%, respectively.
The Lehman U.S. Aggregate Index ended the year with a six-month return of
- -1.37% and a twelve-month total return of 3.15%
The Citizens Income Fund returned -1.28% and 0.78% for the six- and
twelve-month periods ended June 30, 1999. Our benchmark, the Lehman U.S.
Aggregate Index returned -1.37% and 3.15% for the same time periods.
Citizens Income Fund
Growth of $10,000 since inception
[begin line chart]
Lehman Government/
Citizens Income Fund Lehman Aggregate Index Corporate Intermediate
1992 0.80% 10,080 1992 2.63% 10,263 1992 1.24% 10,124
1993 10.08% 11,096 1993 10.02% 11,291 1993 10.50% 11,187
1994 0.04% 11,101 1994 -1.00% 11,178 1994 -0.25% 11,159
1995 10.45% 12,261 1995 12.02% 12,522 1995 10.37% 12,316
1996 5.48% 12,932 1996 2.03% 12,776 1996 5.01% 12,933
1997 9.56% 14,169 1997 7.34% 13,714 1997 7.22% 13,867
1998 10.49% 15,655 1998 8.94% 14,940 1998 8.54% 15,051
1999 0.78% 15,777 1999 2.24% 15,275 1999 4.19% 15,682
[line chart]
The benchmark index for the Citizens Income Fund has been changed from the
Lehman Intermediate Government/Corporate Index to the Lehman U.S. Aggregate
Index, a more appropriate representation of the broad bond market, whose
holdings and duration are better suited to the Fund's investment strategy.
Past performance is not indicative of future results. Total return for the
period ended 6/30/99: one year 0.78%; five year 7.28%; average annual since
inception 6.67%. Citizens Income Fund commenced operations 6/10/92.
The past year has been one of the most volatile ever in global fixed income
markets. The default by the Russian government in August 1998 triggered extreme
panic selling of any bond that carried credit or liquidity risk. The price of
U.S. Treasuries rose sharply as investors heavily favored government securities
above all else. The price of all other fixed income assets lagged U.S.
Treasuries by a wide margin and the yield spread of these assets to Treasuries
increased substantially. The meltdown in asset valuations and the unprecedented
widening of credit spreads imposed major losses on investors. The greatest
effect was on those that were most leveraged, as evidenced by the near collapse
of Long Term Capital Management, a well-known hedge fund.
10
<PAGE>
Managers' Comments -- Citizens Income Fund
The Federal Reserve (Fed) countered these huge dislocations in the global
financial system with interest rate cuts in September, October and November.
Subsequently, the bond markets regained their composure. The first half of 1999
has seen credit spreads recoup a large portion of the spread widening that
occurred in the latter half of 1998 as investors refocused on the continuing
strong fundamentals of the U.S. corporate sector. The technically driven
upheavals of 1998 have become a distant memory.
The three rate reductions by the Fed in the final quarter of 1998 provided
ample fuel for the U.S. economy, which continues to grow very strongly. As a
result, Treasury yields have risen. By mid-year 1999, the 30-year bond yield
was near 6%, from a record low of 4.72% last fall.
The Citizens Income Fund underperformed its benchmark for the 12 months ended
June 30, 1999 due primarily to the remarkable turmoil of late 1998. In that
period, U.S. Treasuries outperformed other bonds. Because the social screening
policy of the Fund does not permit investments in Treasury securities, we were
more heavily weighted than the benchmark in corporate bonds and therefore, the
Fund's performance lagged in that extreme market panic.
As we expected, however, the crisis resolved. For the six months ended June 30,
1999, the Fund outperformed its benchmark as our heavier position in corporate
bonds vs. the benchmark worked to our advantage. We increased our holdings of
high yield bonds to approximately 30% of the Fund's assets because these
securities offered increasingly attractive yields, as well as relatively strong
credit quality in the midst of a robust economic expansion. They also promised
a favorable risk reward trade-off, especially since we focused on high yield
issuers with steady cash flow, that are in growth sectors and with improving
credit ratios. In addition, we took longer positions in some securities and the
average maturity of the fund's holdings at fiscal year end was 14 years.
Still, despite our outperformance in the past six months, it generally has not
been a kind environment for bonds: rising interest rates caused a widespread
drop in bond prices in the first half of the year. Yet we believe the outlook
for U.S. fixed income markets is favorable. Yields are high relative to
inflation and U.S. rates are higher than those of other developed nations.
11
<PAGE>
[Picture of Laura Provost]
Laura Provost
Lead manager of
the Working Assets
Money Market
Fund team since
October 1997.
Managers' Comments -- Working Assets Money Market Fund
Objective: Current income consistent with safety and liquidity. The Ground
Rules: Invests in liquid short-term money market instruments, while maintaining
an average maturity of 90 days or less. The Results: Total return for the six-
and twelve-month periods ended June 30, 1999 for the Standard shares was 1.88%
and 4.07%, respectively. Total return for the Institutional Class shares was
2.14% and 4.58% for the same periods. The Fund has a weighted-average maturity
of 60 days.
With the correction of last fall's liquidity crisis, and the diminished threat
of a worldwide slowdown, the Federal Reserve (Fed) has shifted its focus back
to our strong domestic growth. In response to the continued vigorous pace of
the economy, the Fed moved interest rates up 25 basis points at the end of
June. As this was only a partial unwinding of the 75 basis point decrease made
last fall, short-term rates remain lower than they were at this time last year.
For the period ended June 30, 1999, the Working Assets Money Market Fund--
Standard shares returned 1.88% and 4.07% for the six- and twelve--
month periods then ended, respectively. The Institutional Class shares returned
2.14% and 4.58% for the same periods.
The Asian financial crisis in the fourth quarter last year did little to impact
the growth of our domestic economy. With over eight years of growth, the
domestic economy is closing in on the longest expansion in our history. A tight
employment market, coupled with hefty gains in the stock market, has spurred
strong consumer confidence and seemingly endless consumer spending.
Accelerating productivity has lifted the sustainable growth rate of the economy
to an as yet undetermined level, enabling strong GDP growth with nearly non-
existent inflation. Despite this quiescent state of inflation, the Fed was
compelled to strike preemptively and raise rates to stifle future inflation.
Given that the sharp reductions in interest rates last fall were in response to
specific threats that no longer exist, the recent upward move by the Fed
appears minimal.
Over the near term, minor upward adjustments to short-term interest rates will
be determined by the flow of economic data. Despite the Fed's announcement of
its return to a neutral stance, the market is currently pricing in another 25
basis point increase in rates by November. If the rate of growth in the economy
continues above the new 3% "personal speed limit" noted by Alan Greenspan in
his
12
<PAGE>
Managers' Comments -- Working Assets Money Market Fund
congressional testimony, the Fed is likely to make another preemptive strike.
Although many economists believe that productivity has increased the
sustainable growth rate to a level that is likely above 3%, the Fed is unlikely
to hang its hat on an untested hypothesis. Overall, even with small increases
by the Fed, the low interest rate environment is expected to remain. The Fed's
willingness to make minor adjustments now, to avoid the need for more drastic
measures later, bodes well for the future of the economy. Going forward, we
will continue to monitor the economy and adjust the portfolio accordingly. Our
goal is, as always, to provide safety, liquidity and yield to our shareholders.
13
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ----------------------------------------------------------------------------------
<S> <C> <C>
Equities 99.75%
Apparel & Textiles 0.18%
6,900 Interface Incorporated $ 59,513
8,200 Liz Claiborne Incorporated 299,300
7,000 Reebok International Limited 130,375(b)
3,900 Russell Corporation 76,050
6,200 Tommy Hilfiger Corporation 455,700(b)
7,400 The Warnaco Group Incorporated 197,950
------------
1,218,888
Auto Parts & Equipment 0.12%
3,000 Bandag Incorporated 104,063
9,400 Cooper Tire & Rubber Company 222,075
9,500 Federal-Mogul Corporation 494,000
------------
820,138
Chemicals 0.51%
29,500 Air Products & Chemicals Incorporated 1,187,375
16,550 Engelhard Corporation 374,444
8,600 Nalco Chemical Company 446,125
20,100 Praxair Incorporated 983,643
12,500 Sigma-Aldrich Corporation 430,469
------------
3,422,056
Commercial Services & Equipment 2.04%
7,033 ACNielsen Corporation 212,748(b)
98,843 Cendant Corporation 2,026,281(b)
10,200 Deluxe Corporation 397,162
8,700 DeVry Incorporated 194,663(b)
21,100 Dun & Bradstreet Corporation 747,731
10,200 Herman Miller Incorporated 214,200
8,200 HON Industries Incorporated 239,338
12,900 H & R Block Incorporated 645,000
4,800 Knoll Incorporated 127,800(b)
12,300 Modis Professional Services Incorporated 169,125(b)
31,650 Paychex Incorporated 1,008,844
34,600 Pitney Bowes Incorporated 2,223,050
6,400 Sylvan Learning Systems Incorporated 174,000(b)
12,600 Viad Corporation 389,813
85,100 Xerox Corporation 5,026,219
------------
13,795,974
</TABLE>
See Accompanying Notes to Financial Statements
14
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Computers & Technology 25.96%
46,550 3Com Corporation $ 1,242,303(b)
13,800 Adaptec Incorporated 487,313(b)
8,300 Adobe Systems Incorporated 681,897
139,900 America Online Incorporated 15,458,950(b)
20,500 Apple Computer Incorporated 949,406(b)
7,600 Autodesk Incorporated 224,675
79,700 Automatic Data Processing 3,506,800
30,100 BMC Software Incorporated 1,625,400(b)
4,200 Broadcom Corporation 607,163(b)
31,100 Cadence Design Systems Incorporated 396,525(b)
8,100 Cambridge Technology Partners Incorporated 142,256(b)
411,250 Cisco Systems Incorporated 26,499,922(b)
218,885 Compaq Computer Corporation 5,184,838
69,012 Computer Associates International Incorporated 3,795,660
326,500 Dell Computer Corporation 12,080,500(b)
130,300 EMC Corporation 7,166,500(b)
40,000 Electronic Data Systems Corporation 2,295,888
55,600 First Data Corporation 2,720,925
20,600 Gateway 2000 Incorporated 1,215,400(b)
130,700 Hewlett-Packard Company 13,135,350
3,900 IDX Systems Corporation 87,994(b)
40,800 IMS Health Incorporated 1,275,000
9,000 Ingram Micro Incorporated 231,750(b)
7,900 Intuit Incorporated 711,988(b)
14,000 J.D. Edwards & Company 259,000(b)
16,300 Lexmark International 1,076,819(b)
35,684 McKesson HBOC Incorporated 1,146,348
657,100 Microsoft Corporation 59,262,206(b)
18,274 Network Associates Incorporated 268,399(b)
43,300 Novell Incorporated 1,147,450(b)
35,000 Parametric Technology Corporation 485,625(b)
30,700 Peoplesoft Incorporated 529,575(b)
3,900 Shared Medical Systems Corporation 254,475
11,600 Siebel Systems Incorporated 769,950(b)
24,800 Silicon Graphics Incorporated 406,100(b)
99,600 Sun Microsystems Incorporated 6,859,950(b)
9,400 Synopsys Incorporated 518,763(b)
11,000 Veritas Software Corporation 1,044,312(b)
--------------
175,753,375
Construction & Housing 0.34%
5,100 Armstrong World Industries Incorporated 294,844
8,100 Centex Corporation 304,256
19,100 Clayton Homes Incorporated 218,456
4,500 Fleetwood Enterprises 118,969
</TABLE>
See Accompanying Notes to Financial Statements
15
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- --------------------------------------------------------------------------------------
<S> <C> <C>
Construction & Housing (cont'd)
43,400 Masco Corporation $ 1,253,175
5,300 Pulte Corporation 122,231
------------
2,311,931
Consumer Durables 0.27%
5,000 Ethan Allen Interiors Incorporated 188,750
2,755 Harman International Industries Incorporated 121,220
10,900 Maytag Corporation 759,594
10,100 Whirlpool Corporation 747,400
------------
1,816,964
Consumer Products-Miscellaneous 0.46%
8,800 American Greetings Corporation 265,100
14,600 Avery Dennison Corporation 881,475
4,800 Jostens Incorporated 101,100
1,100 Moore Corporation Limited 9,213
36,056 Newell Rubbermaid Incorporated 1,676,604
7,300 Tupperware Corporation 186,150
------------
3,119,642
Electronics 6.04%
18,900 Advanced Micro Devices Incorporated 341,381(b)
25,700 Altera Corporation 946,081(b)
24,700 American Power Conversion 497,088(b)
4,100 Avnet Incorporated 190,650
4,900 C-Cube Microsystems Incorporated 155,269(b)
427,200 Intel Corporation 25,418,400
11,700 KLA-Tencor Corporation 759,037(b)
18,700 LSI Logic Corporation 862,537(b)
32,200 Micron Technology Incorporated 1,298,062(b)
5,700 Millipore Corporation 231,206
19,960 Molex Incorporated 738,520
6,500 PE Corporation--PE Biosystems Group 745,875
32,500 Solectron Corporation 2,167,344(b)
11,250 Symbol Technologies Incorporated 414,844
3,000 Tecumseh Products Company 181,688
6,250 Tektronix Incorporated 188,672
30,400 Texas Instruments 4,377,600
7,700 Thomas & Betts Corporation 363,825
18,600 Xilinx Incorporated 1,064,850(b)
------------
40,942,929
</TABLE>
See Accompanying Notes to Financial Statements
16
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Energy & Utilities 1.15%
24,600 AES Corporation $ 1,429,875(b)
12,400 American Water Works Incorporated 381,300
12,600 Consolidated Natural Gas Company 765,450
19,600 Dynegy Incorporated 399,350
16,000 El Paso Energy Corporation 563,000
71,429 Energia Global International Limited, Series A, Conv. Pfd. 330,716(b)(c)
4,500 Idacorp Incorporated 141,750
9,800 MCN Energy Group Incorporated 203,350
6,200 Nicor Incorporated 235,988
4,100 ONEOK Incorporated 130,175
4,300 Peoples Energy Corporation 162,056
5,200 Philadelphia Suburban Corporation 119,925
14,200 Sonat Incorporated 470,375
5,000 United Water Resources Incorporated 113,438
40,000 Vulcan Power Company, Class A 0(b)(c)
55,700 The Williams Companies Incorporated 2,370,731
------------
7,817,479
Finance & Insurance 16.52%
11,950 A.G. Edwards Incorporated 385,388
58,000 American Express Company 7,547,250
32,286 American General Corporation 2,433,557
33,000 AON Corporation 1,361,250
152,050 Bank One Corporation 9,056,478
38,100 BankBoston Corporation 1,947,862
98,000 Bank of New York Company Incorporated 3,595,375
40,500 BB&T Corporation 1,485,844
52,475 Charles Schwab Corporation 5,765,691
21,400 Charter One Financial Incorporated 595,188
20,800 Chubb Corporation 1,445,600
20,550 Comerica Incorporated 1,221,441
14,100 Countrywide Credit Industries Incorporated 602,775
30,400 E*Trade Group Incorporated 1,214,100(b)
132,000 Fannie Mae 9,025,500
34,600 Fifth Third Bancorp 2,303,063
85,200 Firstar Corporation 2,385,600
89,500 Freddie Mac 5,191,000
7,200 Golden West Financial Corporation 705,600
29,200 Hartford Financial Services 1,702,848
61,700 Household International 2,923,037
27,020 Huntington Bancshares Incorporated 945,700
4,191 Investment Technology Group Incorporated 135,684
13,550 Jefferson-Pilot Corporation 896,841
57,700 Keycorp 1,853,612
13,700 Marshall & Ilsley Corporation 881,938
</TABLE>
See Accompanying Notes to Financial Statements
17
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Finance & Insurance (cont'd)
12,600 MBIA Incorporated $ 815,850
103,212 MBNA Corporation 3,160,867
67,100 Mellon Bank Corporation 2,440,762
20,300 Mercantile Bancorporation 1,159,637
13,600 MGIC Investment Corporation 661,300
40,500 National City Corporation 2,652,750
14,300 Northern Trust Corporation 1,387,100
38,700 PNC Bank Corporation 2,230,087
9,500 Progressive Corporation 1,377,500
18,600 Providian Financial Corporation 1,739,100
29,300 Regions Financial Corporation 1,126,219
11,000 ReliaStar Financial Corporation 481,250
17,200 Safeco Corporation 758,950
21,000 SLM Holding Corporation 962,062
29,144 St. Paul Companies 927,144
21,100 State Street Corporation 1,801,412
41,300 SunTrust Banks Incorporated 2,867,769
34,700 Synovus Financial Corporation 689,663
60,000 U.S. Bancorp 1,981,110
18,200 UNUMProvident Corporation 996,450
25,800 Wachovia Corporation 2,207,512
76,634 Washington Mutual Incorporated 2,710,928
212,800 Wells Fargo Company 9,097,200
------------
111,840,844
Food & Beverages 6.62%
36,000 Bestfoods 1,782,000
56,200 Campbell Soup Company 2,606,275
317,700 The Coca-Cola Company 19,856,250
5,800 Earthgrains Company 149,713
20,100 General Mills Incorporated 1,615,537
4,600 Great Atlantic & Pacific Tea Company, Incorporated 155,538
5,500 Hannaford Brothers Company 294,250
46,300 H.J. Heinz Company 2,320,787
17,700 Hershey Foods Corporation 1,050,937
52,200 Kellogg Company 1,722,600
106,400 Kroger Company 2,972,550(b)
9,550 McCormick & Company Incorporated 301,422
6,600 Nabisco Holdings Corporation 277,530
130,000 Pepsico Incorporated 5,029,375
16,900 Quaker Oats Company 1,121,737
15,400 SUPERVALU INC. 395,588
42,600 Sysco Corporation 1,270,012
4,260 Tootsie Roll Industries Incorporated 164,543
11,300 Whitman Corporation 203,400
</TABLE>
See Accompanying Notes to Financial Statements
18
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Food & Beverages (cont'd)
3,300 Whole Foods Market Incorporated $ 158,606(b)
15,100 Wm. Wrigley Jr. Company 1,359,000
--------------
44,807,650
Forest Products & Paper 0.05%
11,600 Consolidated Papers Incorporated 310,300
--------------
310,300
Health Care & Personal Care 3.14%
33,700 Avon Products Incorporated 1,870,350
32,200 Becton, Dickinson & Company 975,660
14,100 Biomet Incorporated 560,475
50,900 Boston Scientific Corporation 2,236,419(b)
142,800 Gillette Company 5,854,800
38,800 Guidant Corporation 1,995,775
4,800 Idexx Laboratories Incorporated 111,900(b)
4,100 Invacare Corporation 109,675
75,219 Medtronic Incorporated 5,857,680
10,000 Oxford Health Plans Incorporated 155,625(b)
10,500 St. Jude Medical Incorporated 374,062(b)
5,500 Trigon Healthcare Incorporated 200,063(b)
4,000 Universal Health Services Incorporated 191,000(b)
8,900 WellPoint Health Networks Incorporated 755,387(b)
--------------
21,248,871
Machines & Tools 0.43%
9,100 Case Corporation 437,937
29,800 Deere & Company 1,180,825
4,800 Milacron Incorporated 88,800
2,500 Nordson Corporation 153,125
8,700 Snap-On Incorporated 314,831
4,397 SPX Corporation 367,150(b)
11,400 The Stanley Works 366,938
--------------
2,909,606
Media 5.47%
18,700 Chancellor Media Corporation 1,030,837(b)
42,700 Clear Channel Communications 2,943,631(b)
95,300 Comcast Corporation 3,663,094
67,900 Cox Communications Incorporated 2,499,569(b)
11,400 Dow Jones & Company, Incorporated 604,912
</TABLE>
See Accompanying Notes to Financial Statements
19
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Media (cont'd)
9,900 E.W. Scripps Company $ 470,869
9,500 King World Productions Incorporated 330,719(b)
25,500 McGraw-Hill Companies Incorporated 1,375,406
78,000 MediaOne Group Incorporated 5,801,250(b)
6,500 Meredith Corporation 225,062
22,700 The New York Times Company 835,644
153,600 Time Warner Incorporated 11,289,600
9,400 Times Mirror Company 556,950
11,900 Univision Communications 773,500(b)
88,900 Viacom Incorporated 3,911,600(b)
1,300 Washington Post Company 718,665
------------
37,031,308
Metal Fabricate/Hardware 0.06%
1,700 Commercial Metals Company 48,450
7,800 Timken Company 152,100
12,200 Worthington Industries 200,538
------------
401,088
Miscellaneous Manufacturing 0.49%
32,000 Illinois Tool Works Incorporated 2,624,000
5,200 National Service Industries Incorporated 187,200
5,800 Polaroid Corporation 160,225
9,800 Raychem Corporation 362,600
------------
3,334,025
Pharmaceuticals 2.63%
12,800 ALZA Corporation 651,200(b)
65,900 Amgen Incorporated 4,011,662(b)
16,950 Bergen Brunswig Corporation 292,388
19,400 Biogen Incorporated 1,247,663(b)
23,300 Chiron Corporation 483,475(b)
2,500 Human Genome Sciences Incorporated 98,750(b)
16,200 Mylan Laboratories Incorporated 429,300
4,000 Patterson Dental Company 139,000(b)
189,500 Schering-Plough Corporation 10,043,500
12,100 Watson Pharmaceuticals Incorporated 424,256(b)
------------
17,821,194
Producer Goods 0.16%
10,500 Sealed Air Corporation 681,188(b)
13,001 Sonoco Products Company 389,217
------------
1,070,405
</TABLE>
See Accompanying Notes to Financial Statements
20
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Real Estate Investment & Management 0.13%
7,200 Choice Hotels International Incorporated $ 142,200(b)
12,100 Extended Stay America Incorporated 145,200(b)
10,600 Promus Hotel Corporation 328,600(b)
9,800 Rouse Company 248,675
--------------
864,675
Recreation & Entertainment 0.51%
8,300 Callaway Golf Company 121,387
19,400 Harley-Davidson Incorporated 1,054,875
25,150 Hasbro Incorporated 702,628
53,675 Mattel Incorporated 1,419,033
2,400 Sabre Group Holdings Incorporated 165,000(b)
--------------
3,462,923
Retail 7.12%
9,300 Barnes & Noble Incorporated 254,588(b)
26,300 Best Buy & Company Incorporated 1,775,250(b)
9,500 BJ's Wholesale Club Incorporated 285,594(b)
27,800 Costco Companies Incorporated 2,225,737(b)
50,300 CVS Corporation 2,552,725
17,200 Darden Restaurants Incorporated 375,175
28,477 Dollar General Corporation 825,833
26,700 Federated Department Stores Incorporated 1,413,431(b)
110,637 The Gap Incorporated 5,573,339
9,600 Harcourt General Incorporated 495,000
190,800 Home Depot Incorporated 12,294,675
19,500 IKON Office Solutions Incorporated 292,500
33,700 J.C. Penney Company Incorporated 1,636,556
20,900 Kohls Corporation 1,613,219(b)
27,400 The Limited Incorporated 1,243,275
4,600 Longs Drug Stores Corporation 158,988
47,800 Lowe's Companies 2,709,662
43,050 May Department Stores Company 1,759,669
18,000 Nordstrom Incorporated 603,000
33,300 Rite Aid Corporation 820,013
59,800 Staples Incorporated 1,850,062(b)
23,400 Starbucks Corporation 878,963(b)
24,900 Tandy Corporation 1,216,987
41,400 The TJX Companies Incorporated 1,379,137
18,000 Venator Group Incorporated 187,875(b)
129,000 Walgreen Company 3,789,375
--------------
48,210,628
</TABLE>
See Accompanying Notes to Financial Statements
21
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Telecommunications Equipment & Services 18.78%
17,300 ADC Telecommunications Incorporated $ 788,231(b)
36,300 Alltel Corporation 2,595,450
18,300 American Tower Corporation 439,200(b)
141,500 Ameritech Corporation 10,400,250
199,900 Bell Atlantic Corporation 13,068,462
243,900 BellSouth Corporation 11,432,812
16,150 Crown Castle International Corporation 336,122(b)
391,414 Lucent Technologies Incorporated 26,395,965
239,600 MCI Worldcom Incorporated 20,620,575(b)
38,000 Nextel Communications Incorporated 1,907,125(b)
19,800 Qualcomm Incorporated 2,841,300(b)
90,100 Qwest Communications International 2,978,931(b)
5,200 RF Micro Devices Incorporated 388,050(b)
252,818 SBC Communications Incorporated 14,663,444
8,000 Skytel Communications Incorporated 167,500(b)
56,600 Sprint PCS Group 3,233,275(b)
900 Teligent Incorporated 53,831(b)
50,400 Tellabs Incorporated 3,405,150(b)
64,837 US WEST Incorporated 3,809,174
38,650 Vodafone Airtouch PLC 7,614,050
--------------
127,138,897
Transportation 0.57%
38,060 FDX Corporation 2,064,755(b)
43,225 Southwest Airlines Company 1,345,378
6,500 UAL Corporation 422,500(b)
--------------
3,832,633
--------------
Total Equities (Cost $416,942,118) 675,304,423
</TABLE>
See Accompanying Notes to Financial Statements
22
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 0.58%
$3,892,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 6/30/99 due 07/01/99
collateralized by $4,010,000 Freddie Mac,
6.13% due 05/10/04
(Market Value of collateral is $3,969,900)
(Cost $3,892,000) 4.350% 07/01/99 $ 3,892,000
------------
Total Investments (Cost $420,834,118) 100.33% (a) $679,196,423
Liabilities in excess of other assets (0.33%) (2,205,744)
------------
Net Assets 100% $676,990,679
============
</TABLE>
(a) For Federal income tax purposes, cost is $421,019,300 and
appreciation/(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $266,880,580
Unrealized depreciation: 8,703,457
- --------------------------------- ------------
Net unrealized appreciation: 258,177,123
</TABLE>
(b) Non-income producing security.
(c) On June 30, 1999, the Fund owned the following restricted securities
constituting 0.05% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are
appraised at their fair value as determined in good faith under
consistently applied procedures under the general supervision of the
Trust's Board of Trustees. Additional information on the securities is as
follows:
<TABLE>
<CAPTION>
Description Acquisition Date Cost Value
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energia Global International Limited, Series A, Conv. Pfd. March 3, 1995 $250,000 $330,716
Vulcan Power Company, Class A March 3, 1995 300,000 0
</TABLE>
See Accompanying Notes to Financial Statements
23
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Emerging Growth Fund
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Equities 94.22%
Commercial Services 3.19%
102,500 Concord EFS Incorporated $ 4,337,031(b)
--------------
4,337,031
Computers & Software 11.58%
135,000 Adaptec Incorporated 4,767,188(b)
55,000 Intuit Incorporated 4,956,875(b)
116,800 Mercury Interactive Corporation 4,131,800(b)
50,000 Visio Corporation 1,903,125(b)
--------------
15,758,988
Consumer Durables 3.19%
115,000 Ethan Allen Interiors Incorporated 4,341,250
--------------
4,341,250
Electronics Equipment & Manufacturing 23.19%
116,400 Altera Corporation 4,284,975(b)
195,000 American Power Conversion 3,924,375(b)
39,000 Broadcom Corporation 5,637,938(b)
76,000 KLA-Tencor Corporation 4,930,500(b)
95,000 LSI Logic Corporation 4,381,875(b)
65,000 PMC--Sierra Incorporated 3,830,937(b)
80,000 Xilinx Incorporated 4,580,000(b)
--------------
31,570,600
Finance & Insurance 3.04%
69,615 Comerica Incorporated 4,137,742
--------------
4,137,742
Health Care 6.07%
110,000 Biomet Incorporated 4,372,500
45,880 Wellpoint Health Networks Incorporated 3,894,065(b)
--------------
8,266,565
Media 5.51%
59,250 Chancellor Media Corporation 3,266,156(b)
65,000 Gemstar International Group Limited 4,241,250(b)
--------------
7,507,406
Office Equipment & Supplies 0.52%
22,785 Staples Incorporated 704,911(b)
--------------
704,911
</TABLE>
See Accompanying Notes to Financial Statements
24
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Emerging Growth Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pharmaceuticals 8.58%
80,000 Biogen Incorporated $ 5,145,000(b)
49,800 MedImmune Incorporated 3,373,950(b)
90,000 Watson Pharmaceuticals Incorporated 3,155,625(b)
------------
11,674,575
Retail 11.56%
84,900 Limited Incorporated 3,852,338
87,100 Linens 'n Things Incorporated 3,810,625(b)
110,350 The TJX Companies Incorporated 3,676,034
90,000 Tandy Corporation 4,398,750
------------
15,737,747
Telecommunications Equipment & Services 17.79%
78,060 ADC Telecommunications Incorporated 3,556,609(b)
193,410 American Tower Corporation 4,641,840
134,570 Crown Castle International Corporation 2,800,738(b)
45,000 Qualcomm Incorporated 6,457,500(b)
90,700 RF Micro Devices Incorporated 6,768,487(b)
------------
24,225,174
------------
Total Equities (Cost $102,695,317) 128,261,989
</TABLE>
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 7.70%
10,487,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 06/30/99 due 7/1/99,
collateralized by $10,805,000 Freddie Mac,
6.13% due 05/10/04
(Market Value of collateral is $10,696,950)
(Cost $10,487,000) 4.350% 07/01/99 $ 10,487,000
------------
Total Investments (Cost $113,182,317) 101.92% (a) $138,748,989
Liabilities in excess of other assets (1.92%) (2,612,023)
------------
Net Assets 100% $136,136,966
============
</TABLE>
(a) For Federal income tax purposes, cost is $113,253,354 and
appreciation/(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $26,990,937
Unrealized depreciation: 1,495,302
- --------------------------------- -----------
Net unrealized appreciation: $25,495,635
</TABLE>
(b) Non-income producing security.
See Accompanying Notes to Financial Statements
25
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund
<TABLE>
<CAPTION>
Number of Share Security Value
(% of net assets) Description (Note 1)
- ----------------------------------------------------------------------------------
<S> <C> <C>
Equities 87.64%
Belgium 2.17%
16,800 Real Software (Computers & Software) $ 1,963,893
------------
1,963,893
Brazil 1.10%
20,000 Telesp Celular Participacoes S.A. (ADR)
(Telecommunications Equipment & Services) 535,000
20,000 Telesp Participacoes S.A. (ADR)
(Telecommunications Equipment & Services) 457,500
------------
992,500
Denmark 1.46%
15,000 Vestas Wind Systems A.S. (Machines & Tools) 1,320,679(b)
------------
1,320,679
Finland 4.82%
40,000 Jot Automation Group Oyj (Machines & Tools) 1,620,497
30,000 Nokia Corporation (ADR)
(Telecommunications Equipment & Services) 2,746,875
------------
4,367,372
France 2.64%
4,000 Canal Plus (Media) 1,121,978
5,900 Havas Advertising (Advertising) 1,270,533
------------
2,392,511
Germany 2.94%
1,852 Allianz AG (Finance & Insurance) 513,557
67,300 Software AG (Computers & Software) 2,150,663(b)
------------
2,664,220
Greece 0.74%
28,000 Panafon Hellenic Telecom Company
(Telecommunications Equipment & Services) 674,298(b)
------------
674,298
</TABLE>
See Accompanying Notes to Financial Statements
26
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Share Security Value
(% of net assets) Description (Note 1)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Hong-Kong 0.79%
200,000 Smartone Telecommunications
(Telecommunications Equipment & Services) $ 711,469
------------
711,469
Ireland 1.30%
47,343 Bank of Ireland (Finance & Insurance) 795,495
36,510 Irish Life & Permanent PLC (Finance & Insurance) 385,772
------------
1,181,267
Italy 3.79%
70,000 Arnoldo Mondadori Editore (Media) 1,212,280
213,333 Telecom Italia SpA (Telecommunications Equipment & Services) 2,216,737
------------
3,429,017
Japan 13.80%
7,000 Benesse Corporation (Commercial Services) 760,932
31,000 Canon Incorporated (Office/Business Equipment) 891,791
18,000 Fuji Photo Film Company (Miscellaneous Manufacturing) 681,491
11,000 Ito-Yokado Company Limited (Retail) 736,546
160 NTT Data Corporation
(Telecommunications Equipment & Services) 1,272,382
14,800 Nippon Telegraph & Telephone Corporation (ADR)
(Telecommunications Equipment & Services) 926,850(b)
5,000 Obic Company Limited (Computers & Software) 1,368,108
1,380 Shohkoh Fund & Company Limited (Finance & Insurance) 990,196
9,300 Softbank Corporation (Computers & Software) 1,884,294
10,000 TDK Corporation (Computers & Software) 915,103
20,000 Takefuji Corporation (Finance & Insurance) 2,068,281
------------
12,495,974
Mexico 2.23%
950,000 Controladora Comercial Mexicana S.A. de C.V. (Retail) 991,199
23,000 Grupo Televisa S.A. (ADR) (Media) 1,030,687(b)
------------
2,021,886
</TABLE>
See Accompanying Notes to Financial Statements
27
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Netherlands 0.65%
8,065 Aegon NV (Finance & Insurance) $ 584,876
------------
584,876
Singapore 1.62%
86,000 Singapore Press Holdings (Media) 1,465,335
------------
1,465,335
South Korea 2.35%
32,000 Korea Telecom Corporation (ADR)
(Telecommunications Equipment & Services) 1,280,000(b)
15,500 Samsung Display Devices (Electronics) 843,629
------------
2,123,629
Spain 0.89%
310 Banco Santander Central Hispano S.A. (Finance & Insurance) 3,228
16,646 Telefonica S.A. (Telecommunications Equipment & Services) 803,581(b)
------------
806,809
Sweden 2.93%
29,000 Icon Medialab International A.B. (Computers & Software) 1,052,185(b)
45,000 Skandia Forsakrings A.B. (Finance & Insurance) 842,855
65,000 Skandinaviska Enskilda Ban (Finance & Insurance) 758,040
------------
2,653,080
Switzerland 1.59%
2,550 UBS AG (Finance & Insurance) 760,851
1,200 Zurich Allied AG (Finance & Insurance) 682,143
------------
1,442,994
United Kingdom 11.24%
130,000 BG PLC (Energy & Utilities) 793,012
60,000 COLT Telecom Group PLC
(Telecommunications Equipment & Services) 1,255,956(b)
66,800 Next PLC (Retail) 810,760
80,000 Orange PLC (Telecommunications Equipment & Services) 1,173,991(b)
41,000 Pearson PLC (Media) 833,032
57,047 Royal Bank of Scotland Group (Finance & Insurance) 1,168,965
150,000 Telewest Communications PLC (Media) 672,074(b)
</TABLE>
See Accompanying Notes to Financial Statements
28
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
United Kingdom (cont'd)
76,215 Vodafone Airtouch PLC
(Telecommunications Equipment & Services) $ 1,499,271
10,000 Vodafone Airtouch PLC (ADR)
(Telecommunications Equipment & Services) 1,970,000
------------
10,177,061
United States 28.59%
25,000 Air Products & Chemicals Incorporated (Chemicals) 1,006,250
8,000 At Home Corporation (Computers & Software) 431,500(b)
32,000 Bank of New York Company Incorporated (Finance & Insurance) 1,174,000
31,000 Bank One Corporation (Finance & Insurance) 1,846,437
46,350 Cisco Systems Incorporated (Computers & Software) 2,986,678(b)
18,000 Dell Computer Corporation (Computers & Software) 666,000(b)
23,000 EMC Corporation (Computers & Software) 1,265,000(b)
31,500 Home Depot Incorporated (Retail) 2,029,781
20,000 Illinois Tool Works (Miscellaneous Manufacturing) 1,640,000
24,000 Intel Corporation (Electronics) 1,428,000
18,000 Linens 'n Things Incorporated (Retail) 787,500(b)
25,000 MCI Worldcom Incorporated
(Telecommunications Equipment & Services) 2,151,563(b)
34,000 Nextel Communications Incorporated (Telecommunications
Equipment & Services) 1,706,375(b)
25,000 Staples Incorporated (Office/Business Equipment) 773,438(b)
29,600 Sun Microsystems Incorporated (Computers & Software) 2,038,700(b)
16,500 Time Warner Incorporated (Media) 1,212,750
29,000 Tyco International Limited (Miscellaneous Manufacturing) 2,747,750
------------
25,891,722
------------
Total Equities (Cost $56,002,981) 79,360,592
</TABLE>
See Accompanying Notes to Financial Statements
29
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 14.61%
$13,224,000 Repurchase Agreement with State Street Bank
& Trust Co. Dated 06/30/99 due 7/1/99,
collateralized by $13,625,000 Freddie Mac,
6.13% due 05/10/04
(Market Value of collateral is $13,488,750)
(Cost $13,224,000) 4.350% 07/01/99 $13,224,000
-----------
Total Investments (Cost $69,226,981) 102.25% (a) $92,584,592
Liabilities in excess of other assets (2.25%) (2,035,583)
-----------
Net Assets 100% $90,549,009
===========
</TABLE>
(a) For Federal income tax purposes, cost is $70,252,568 and
appreciation/(depreciation) is as follows:
<TABLE>
<S> <C>
Unrealized appreciation: $23,312,353
Unrealized depreciation: 980,329
- --------------------------------- -----------
Net unrealized appreciation: $22,332,024
</TABLE>
(b) Non-income producing security.
Abbreviations:
ADR--American Depository Receipt
See Accompanying Notes to Financial Statements
30
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Global Equity Fund (cont'd)
The Fund's Statement of Investments as of June 30, 1999, was concentrated in
the following industries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
-----------------------------------
Short-term
Equity & Other Total
--------- ----------- ---------
<S> <C> <C> <C>
Advertising 1.4% 1.4%
Chemicals 1.1% 1.1%
Commercial Services 0.8% 0.8%
Computers & Software 18.5% 18.5%
Electronics 2.5% 2.5%
Energy & Utilities 0.9% 0.9%
Finance & Insurance 13.9% 13.9%
Machines & Tools 3.3% 3.3%
Media 8.3% 8.3%
Miscellaneous Manufacturing 5.6% 5.6%
Office/Business Equipment 1.8% 1.8%
Retail 5.9% 5.9%
Telecommunications Equipment & Services 23.6% 23.6%
Cash & Other 12.4% 12.4%
===== ==== =====
87.6% 12.4% 100.0%
</TABLE>
*Percentages are based on net assets of $90,549,009
See Accompanying Notes to Financial Statements
31
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Income Fund
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Bonds 55.52%
Commercial Services 5.45%
$1,000,000 CEX Holdings Incorporated 9.625% 06/01/08 $ 937,500
1,000,000 Primark Corporation 9.250% 12/15/08 981,250
900,000 United Rentals Incorporated 9.500% 06/01/08 911,250
600,000 United Rentals Incorporated 9.250% 01/15/09 595,500
----------
3,425,500
Computers & Software 1.48%
1,000,000 Apple Computer Incorporated 6.500% 02/15/04 927,500
----------
927,500
Construction & Housing 3.95%
1,000,000 Toll Corporation 8.750% 11/15/06 1,010,000
1,500,000 US Home Corporation 7.950% 03/01/01 1,473,750
----------
2,483,750
Finance & Insurance 16.25%
680,000 Abbey National PLC 6.700% 06/29/49 633,944
1,320,000 Abbey National PLC 7.350% 10/29/49 1,289,871
100,000 Bank One Corporation 7.250% 08/15/04 102,130
250,000 Countrywide Capital 8.000% 12/15/26 238,953
500,000 Credit Suisse First Boston--144A 7.900% 05/01/07 487,595
730,826 DLJ Mortgage Acceptance Corporation 6.614% 05/25/09 707,645
1,250,000 First Republic Bank of San Francisco 7.750% 09/15/12 1,166,562
750,000 First Union Lehman Brothers Mortgage Trust 6.650% 12/18/07 734,452
500,000 Keycorp Institutional Capital 7.826% 12/01/26 490,720
800,000 Lehman Brothers Incorporated 7.360% 12/15/03 803,112
700,000 Lehman Brothers Incorporated 8.050% 01/15/19 692,111
650,000 Lehman Brothers Incorporated 7.730% 10/15/23 600,918
50,000 MBIA Incorporated 9.000% 02/15/01 52,184
1,500,000 Morgan Stanley Capital Incorporated 6.550% 12/15/07 1,465,725
750,000 Williams Scotsman Incorporated 9.875% 06/01/07 744,375
----------
10,210,297
Food & Beverages 2.82%
1,000,000 Kroger Company--144A 6.340% 06/01/01 999,890
750,000 Smiths Food and Drug Centers Incorporated 8.640% 07/02/12 776,168
----------
1,776,058
</TABLE>
See Accompanying Notes to Financial Statements
32
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Health Care 2.50%
$ 50,000 Kaiser Foundation Health Plan 9.000% 11/01/01 $ 52,974
1,500,000 Universal Health Services Incorporated 8.750% 08/15/05 1,518,750
----------
1,571,724
Hotels 2.29%
1,550,000 John Q. Hammons Hotels Incorporated 8.875% 02/15/04 1,441,500
----------
1,441,500
Media 11.13%
170,901 Adelphia Communications Corporation 9.500% 02/15/04 178,805
1,300,000 Capstar Broadcasting Partners 9.250% 07/01/07 1,342,250
1,000,000 Chancellor Media Corporation 8.750% 06/15/07 997,500
250,000 IMAX Corporation 7.875% 12/01/05 235,000
500,000 Jones Intercable Incorporated 9.625% 03/15/02 543,750
750,000 Jones Intercable Incorporated 7.625% 04/15/08 778,125
500,000 Rogers Communications 9.125% 01/15/06 508,750
1,400,000 Time Warner Incorporated 9.125% 01/15/13 1,620,332
750,000 Turner Broadcasting 8.400% 02/01/24 787,373
----------
6,991,885
Real Estate 4.24%
500,000 Security Capital Pacific Trust 7.900% 02/15/16 450,145
1,000,000 Property Trust of America 6.875% 02/15/08 990,050
1,300,000 Weingarten Realty Investors 6.880% 06/25/27 1,223,144
----------
2,663,339
Telecommunications Equipment & Services 2.45%
2,000,000 Qwest Communications International
Incorporated (Coupon 9.47% after 10/15/02) 0.000% 10/15/07 1,537,500
----------
1,537,500
Transportation 2.96%
899,734 Federal Express Corporation 6.720% 01/15/22 873,758
1,000,000 Railworks Corporation--144A 11.500% 04/15/09 987,500
----------
1,861,258
----------
Total Corporate Bonds (Cost $35,491,465) 34,890,311
</TABLE>
See Accompanying Notes to Financial Statements
33
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Convertible Preferred Stock 6.25%
Commercial Services 0.51%
7,200 United Rentals Incorporated--
Callable into common stock $ 324,000
---------
324,000
Computers & Software 2.39%
15,000 Microsoft Corporation--Convertible into
common shares or exchangeable into
subordinated notes 1,499,062
---------
1,499,062
Finance & Insurance 0.80%
500 First Republic Preferred Capital Corporation--144A
Mandatory exchange into preferred shares
under certain circumstances 500,000
---------
500,000
Real Estate 2.55%
10,000 Equity Office Properties Trust--
Callable into common stock 400,000
59,200 Felcor Lodging Trust Incorporated--
Callable into common stock 1,202,500
---------
1,602,500
---------
Total Convertible Preferred Stock (Cost $3,792,100) 3,925,562
Equities 0.00%
Food & Beverages 0.00%
180 Restaurant Technologies Incorporated 0
---------
Total Equities (Cost $0) 0
</TABLE>
See Accompanying Notes to Financial Statements
34
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Agencies 30.17%
Fannie Mae 21.66%
$ 600,000 Fannie Mae 5.830% 12/10/99 $ 601,272
1,000,000 Fannie Mae 6.330% 10/02/02 1,001,540
2,000,000 Fannie Mae 6.140% 03/24/03 1,990,580
4,000,000 Fannie Mae 6.000% 05/15/08 3,892,600
12,350,000 Fannie Mae 0.000% 10/09/19 3,278,802
1,953,030 Fannie Mae 6.500% 12/01/28 1,886,354
350,477 Fannie Mae--REMIC 8.000% 07/25/06 358,359
600,000 Fannie Mae--REMIC 7.000% 04/25/21 601,632
----------
13,611,139
Freddie Mac 6.88%
4,800,000 Freddie Mac 5.550% 11/15/27 4,321,526
----------
4,321,526
Government National Mortgage Association 1.63%
72,264 Government National Mortgage Association 7.000% 04/15/07 72,689
117,908 Government National Mortgage Association 6.000% 08/15/08 115,355
87,845 Government National Mortgage Association 9.000% 05/15/09 92,751
15,831 Government National Mortgage Association 9.000% 11/15/16 16,719
35,249 Government National Mortgage Association 9.000% 02/15/17 37,223
39,226 Government National Mortgage Association 9.500% 03/15/17 42,007
1,587 Government National Mortgage Association 9.000% 10/15/20 1,675
12,181 Government National Mortgage Association 9.000% 11/15/20 12,858
3,260 Government National Mortgage Association 8.500% 03/15/21 3,397
12,423 Government National Mortgage Association 9.000% 04/15/21 13,114
16,269 Government National Mortgage Association 8.500% 06/15/21 16,959
34,836 Government National Mortgage Association 8.000% 12/15/21 35,710
20,463 Government National Mortgage Association 7.000% 03/15/22 20,339
78,199 Government National Mortgage Association 8.000% 05/15/22 80,178
36,886 Government National Mortgage Association 8.000% 09/15/22 37,817
16,112 Government National Mortgage Association 9.500% 09/15/17 17,245
78,117 Government National Mortgage Association 7.000% 10/15/22 77,436
176,002 Government National Mortgage Association 7.000% 10/15/22 174,588
156,865 Government National Mortgage Association 7.000% 06/15/23 155,354
----------
1,023,414
----------
Total U.S. Government Agencies (Cost $19,581,317) 18,956,079
</TABLE>
See Accompanying Notes to Financial Statements
35
<PAGE>
Statement of Investments -- June 30, 1999
Citizens Income Fund (cont'd)
<TABLE>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 6.96%
$ 373,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 06/30/99 due 7/1/99,
collateralized by $385,000 Freddie Mac,
6.13% due 05/10/04
(Market Value of collateral is $381,150) 4.350% 07/01/99 $ 373,000
4,000,000 Freddie Mac Discount Notes 4.490% 07/01/99 4,000,000
-----------
Total Short Term Investments (Cost $4,373,000) 4,373,000
-----------
Total Investments (Cost $63,237,882) 98.90% (a) $62,144,952
Other assets, less liabilities 1.10% 691,598
-----------
Net Assets 100% $62,836,550
===========
</TABLE>
(a) Book cost and tax cost are equal.
See Accompanying Notes to Financial Statements
36
<PAGE>
Statement of Investments -- June 30, 1999
Working Assets Money Market Fund
<TABLE>
<CAPTION>
Par Amount Security Maturity Value (a)
($ Denominated) Description Coupon Date (Note 1)
- ----------------- ----------------------------------------- ----------- ---------- ----------------
<S> <C> <C> <C> <C>
Certificates of Deposit 9.34%
$5,000,000 Bayerische Vereinsbank AG 4.980% 12/08/99 $ 5,000,000
100,000 City National Bank of New Jersey 4.590% 03/18/00 100,000(c)
1,000,000 Deutsche Bank AG New York 4.870% 08/11/99 1,000,000
750,000 Deutsche Bank AG New York 5.600% 08/23/99 751,709
100,000 Independence Federal Savings Bank 5.000% 03/31/00 100,000(c)
2,000,000 Rabobank Nederland 5.300% 03/06/00 2,001,143
1,500,000 Rabobank Nederland 5.170% 03/28/00 1,499,741
1,323,000 Rabobank Nederland 5.600% 06/14/00 1,322,473
100,000 Self Help Credit Union 4.500% 12/17/99 100,000(c)
100,000 South Shore Bank Of Chicago 4.650% 12/18/99 100,000(c)
-----------
Total Certificates of Deposit (Cost $11,975,066) 11,975,066
Corporate Notes 4.14%
1,500,000 American General Financial Corporation 5.090% 02/15/00 1,526,098
1,400,000 Norwest Corporation 6.000% 03/15/00 1,407,265
2,000,000 Norwest Financial Incorporated 4.930% 09/15/99 2,006,831
370,000 Norwest Financial Incorporated 6.000% 08/01/99 370,263
-----------
Total Corporate Notes (Cost $5,310,457) 5,310,457
Commercial Paper 84.48%
1,500,000 Abbey National North America 4.820% 07/08/99 1,498,594
1,825,000 Abbey National North America 4.880% 07/21/99 1,820,052
1,000,000 Abbey National North America 4.900% 07/21/99 997,278
522,000 Abbey National North America 4.950% 08/05/99 519,488
1,500,000 Abbey National North America 4.875% 09/03/99 1,487,000
1,500,000 Air Products and Chemicals Incorporated 4.770% 07/14/99 1,497,416
1,594,000 American Express Credit Corporation 5.050% 07/22/99 1,589,304
1,600,000 American Express Credit Corporation 4.790% 11/16/99 1,570,621
1,222,000 American Express Credit Corporation 4.780% 12/07/99 1,196,202
781,000 American General Corporation 5.030% 07/30/99 777,835
1,920,000 American General Corporation 4.920% 09/08/99 1,901,894
1,545,000 American General Financial Corporation 5.000% 08/31/99 1,531,910
350,000 Ameritech Corporation 4.970% 07/09/99 349,614
1,300,000 Ameritech Corporation 5.250% 07/09/99 1,298,483
2,000,000 AON Corporation 4.920% 07/07/99 1,998,360
1,808,000 AON Corporation 4.910% 07/08/99 1,806,274
2,500,000 AON Corporation 4.920% 07/12/99 2,496,242
2,070,000 Bank Of New York Corporation 4.900% 08/02/99 2,060,984
2,000,000 Bank Of New York Corporation 4.915% 09/02/99 1,982,798
1,535,000 Bank Of New York Corporation 5.070% 09/20/99 1,517,490
578,000 BellSouth Telecomm Incorporated 5.300% 07/08/99 577,404
1,000,000 BellSouth Telecomm Incorporated 4.800% 07/12/99 998,533
</TABLE>
See Accompanying Notes to Financial Statements
37
<PAGE>
Statement of Investments -- June 30, 1999
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value (a)
($ Denominated) Description Coupon Date (Note 1)
- ----------------- ------------------------------------------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
Commercial Paper (cont'd)
$1,500,000 BellSouth Telecomm Incorporated 4.960% 08/11/99 $1,491,527
945,000 Block Financial Corporation 4.900% 07/09/99 943,971
1,500,000 Campbell Soup Company 4.700% 08/04/99 1,493,342
2,000,000 Canadian Wheat Board 4.810% 08/13/99 1,988,510
2,000,000 Central Corporate Credit Union 4.970% 07/14/99 1,996,411
1,657,000 The Coca-Cola Company 4.830% 08/16/99 1,646,774
1,000,000 The Coca-Cola Company 4.810% 08/27/99 992,384
1,119,000 The Coca-Cola Company 5.000% 09/07/99 1,108,432
1,000,000 The Coca-Cola Company 5.250% 01/26/00 969,521
909,000 The Coca-Cola Company 5.250% 01/31/00 880,632
2,500,000 Consolidated Natural Gas Company 4.950% 07/19/99 2,493,813
2,000,000 Consolidated Natural Gas Company 4.950% 07/20/99 1,994,775
1,898,000 Countrywide Home Loans Incorporated 4.920% 07/07/99 1,896,444
4,525,000 Countrywide Home Loans Incorporated 4.930% 07/14/99 4,516,944
1,651,000 Deere & Company 4.820% 07/15/99 1,647,905
1,200,000 Deere & Company 5.000% 07/28/99 1,195,500
1,625,000 Deutsche Bank Financial 4.810% 07/21/99 1,620,658
1,400,000 Deutsche Bank Financial 4.830% 07/23/99 1,395,868
1,500,000 Deutsche Bank Financial 4.810% 08/09/99 1,492,184
1,200,000 First Data Corporation 5.060% 12/14/99 1,172,001
3,500,000 The Gillette Company 5.650% 07/01/99 3,500,000
800,000 Hasbro, Incorporated 4.830% 07/09/99 799,141
2,000,000 Hasbro, Incorporated 4.810% 08/09/99 1,989,578
1,000,000 Hasbro, Incorporated 5.220% 12/03/99 977,525
1,112,000 H. J. Heinz Company 4.790% 07/06/99 1,111,260
3,820,000 John Hancock Capital Corporation 4.780% 07/13/99 3,813,914
1,751,000 John Hancock Capital Corporation 5.150% 07/26/99 1,744,738
1,100,000 Keycorp 4.900% 07/02/99 1,099,850
1,700,000 Lehman Brothers Incorporated 5.150% 09/15/99 1,681,517
1,403,000 Mid States Corporate Federal Credit Union 4.980% 07/15/99 1,400,283
1,696,000 Mid States Corporate Federal Credit Union 5.000% 07/20/99 1,691,524
1,200,000 Nationwide Building Society 5.100% 07/27/99 1,195,580
2,000,000 Nationwide Building Society 4.810% 08/10/99 1,989,311
1,500,000 Nationwide Building Society 4.820% 08/10/99 1,491,967
900,000 Nationwide Building Society 4.830% 09/08/99 891,668
1,484,000 The New York Times Company 4.970% 07/26/99 1,478,878
1,000,000 The New York Times Company 5.030% 08/02/99 995,529
2,023,000 The New York Times Company 5.030% 08/03/99 2,013,672
1,299,000 St. Paul Companies Incorporated 5.000% 07/27/99 1,294,309
1,500,000 St. Paul Companies Incorporated 5.080% 08/04/99 1,492,803
1,800,000 The Stanley Works 4.800% 07/16/99 1,796,400
1,111,000 The Stanley Works 4.920% 09/01/99 1,101,586
2,236,000 Times Mirror Company 5.000% 08/17/99 2,221,404
2,000,000 Toronto Dominion Holdings 4.710% 11/01/99 1,967,815
672,000 Xerox Capital 4.850% 07/14/99 670,823
1,200,000 Xerox Capital 4.800% 09/08/99 1,188,960
</TABLE>
See Accompanying Notes to Financial Statements
38
<PAGE>
Statement of Investments -- June 30, 1999
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (cont'd)
$2,291,000 Xerox Credit Corporation 5.800% 07/01/99 $ 2,291,000
------------
Total Commercial Paper (Cost $108,302,407) 108,302,407
------------
U.S. Government Agencies 0.31%
400,000 Federal Farm Credit Bank Discount Notes 4.900% 09/10/99 396,134
------------
Total U.S. Government Agencies (Cost $396,134) 396,134
------------
Total Investments (Cost $125,984,064) 98.27% (a)(b) $125,984,064
Other assets, less liabilities 1.73% 2,219,424
------------
Net Assets 100% $128,203,488
============
</TABLE>
(a) Investments are valued using the amortized cost method.
(b) Book cost and tax cost are equal.
(c) These securities are appraised at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Trust's Board of Trustees.
See Accompanying Notes to Financial Statements
39
<PAGE>
Statement of Assets and Liabilities -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens
Index Emerging Growth
Fund Fund
------------- ----------------
<S> <C> <C>
ASSETS
Investments (see accompanying schedule):
Investments at cost $416,942,118 $102,695,317
Repurchase Agreements 3,892,000 10,487,000
Net unrealized appreciation/(depreciation) 258,362,305 25,566,672
------------ ------------
Total investments at value 679,196,423 138,748,989
Cash 981 74
Receivable for:
Interest 470 1,267
Dividends and withholding tax reclaims 387,175 29,561
Fund shares sold 1,162,936 191,396
Investment securities sold 23,071,519 2,981,325
Due from Investment Adviser -- --
Unamortized organizational costs 18,969 --
Other assets 4,779 1,778
------------ ------------
Total Assets 703,843,252 141,954,390
------------ ------------
LIABILITIES
Payable for investment securities purchased 25,570,444 5,558,158
Payable for fund shares repurchased 330,845 36,691
Distributions payable -- --
Payable for investment management fees 262,742 100,580
Payable for administrative and shareholder
service fees 262,876 20,982
Payable for distribution expenses 112,410 25,656
Other accrued expenses 313,256 75,357
------------ ------------
Total Liabilities 26,852,573 5,817,424
------------ ------------
NET ASSETS $676,990,679 $136,136,966
============ ============
Standard shares
Net assets $578,285,622 $136,136,966
Shares outstanding 18,949,288 6,256,080
Net asset value, offering and redemption price
per share $ 30.52 $ 21.76
------------ ------------
Institutional Class shares
Net assets $ 98,705,057
Shares outstanding 3,945,811
Net asset value, offering and redemption price
per share $ 25.02
------------
Net assets consist of:
Paid-in capital $383,494,292 $ 90,061,496
Accumulated net investment income/(loss) -- --
Accumulated net realized gain/(loss) on
investments and foreign currency
transactions 35,134,082 20,508,798
Net unrealized appreciation/(depreciation) on
investments and foreign currencies 258,362,305 25,566,672
------------ ------------
$676,990,679 $136,136,966
============ ============
</TABLE>
See Accompanying Notes to Financial Statements
40
<PAGE>
Statement of Assets and Liabilities -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens Working Assets
Global Equity Income Money Market
Fund Fund Fund
- --------------- ------------- -----------------
<S> <C> <C>
$ 56,002,981 $62,864,882 $125,984,064
13,224,000 373,000 --
23,357,611 (1,092,930) --
------------- ------------ ------------
92,584,592 62,144,952 125,984,064
629 964 1,784,462
1,598 856,471 291,047
121,095 -- --
811,175 58,470 884,955
607,591 997,190 --
-- 23,269 52,910
-- -- 15,120
1,267 1,367 6,958
------------- ------------ ------------
94,127,947 64,082,683 129,019,516
------------- ------------ ------------
3,389,196 995,520 --
38,223 110,315 657,128
-- 44,462 --
67,464 33,470 36,766
11,152 9,617 24,080
16,866 12,874 17,314
56,037 39,875 80,740
------------- ------------ ------------
3,578,938 1,246,133 816,028
------------- ------------ ------------
$ 90,549,009 $62,836,550 $128,203,488
============= ============ ============
$ 90,549,009 $62,836,550 $105,739,724
4,477,928 5,980,757 105,862,947
$ 20.22 $ 10.51 $ 1.00
------------- ------------ ------------
$ 22,463,764
22,463,764
$ 1.00
------------
$ 66,021,439 $63,905,030 $128,203,488
(762,519) (4,624) --
1,943,317 29,074 --
23,346,772 (1,092,930) --
------------- ------------ ------------
$ 90,549,009 $62,836,550 $128,203,488
============= ============ ============
</TABLE>
See Accompanying Notes to Financial Statements
41
<PAGE>
Statement of Operations -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens
Index Emerging Growth
Fund Fund
-------------- --------------
<S> <C> <C>
Investment Income
Interest $ 168,594 $ 378,759
Dividends (net of withholding taxes) 4,230,183 234,016
------------ ------------
Total investment income 4,398,777 612,775
------------ ------------
Expenses
Investment management fees 2,442,486 989,594
Transfer agent fees 700,459 171,531
Custody and accounting fees 152,370 49,673
Distribution expense 1,080,394 247,399
Administrative and shareholder service fees 2,556,669 227,489
Legal and audit fees 139,519 44,592
Registration fees 54,819 18,878
Trustees' fees and expenses 18,179 18,179
Printing and postage 78,367 29,368
Dues and insurance 50,063 4,409
Other expenses 11,117 5,296
Amortization of organization costs 15,078 2,042
------------ ------------
Total expenses 7,299,520 1,808,450
------------ ------------
Reimbursement/Waiver by Adviser -- (6,270)
------------ ------------
Net expenses 7,299,520 1,802,180
------------ ------------
Net investment income/(loss) $ (2,900,743) $ (1,189,405)
------------ ------------
Realized and Unrealized Gain/(Loss) on Investments
Realized gain/(loss) on investments and
written options 37,531,851 23,103,745
Realized gain/(loss) on foreign currency
transactions -- --
Increase/(decrease) in unrealized appreciation/
(depreciation) on investments and written
options 102,701,896 11,531,672
Increase/(decrease) in unrealized appreciation/
(depreciation) on foreign currencies -- --
------------ ------------
Net realized and unrealized gain/(loss) on
investments and foreign currencies 140,233,747 34,635,417
------------ ------------
Net increase in net assets resulting from
operations $137,333,004 $ 33,446,012
============ ============
</TABLE>
See Accompanying Notes to Financial Statements
42
<PAGE>
Statement of Operations -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens Working Assets
Global Equity Income Money Market
Fund Fund Fund
- --------------- ------------ --------------
<S> <C> <C>
$ 280,929 $ 3,956,125 $6,522,594
378,559 151,757 --
----------- ------------ ----------
659,488 4,107,882 6,522,594
----------- ------------ ----------
606,181 384,180 440,357
129,286 88,771 245,631
84,401 47,944 73,102
151,545 147,762 210,128
120,167 113,106 308,642
29,764 29,782 49,879
21,282 18,786 42,155
18,179 18,179 18,179
15,004 4,530 43,101
2,869 2,413 6,062
9,103 3,722 1,831
2,928 21,111 9,490
----------- ------------ ----------
1,190,709 880,286 1,448,557
----------- ------------ ----------
-- (23,269) (52,910)
----------- ------------ ----------
1,190,709 857,017 1,395,647
----------- ------------ ----------
$ (531,221) $ 3,250,865 $5,126,947
----------- ------------ ----------
2,514,547 150,138 --
(802,528) -- --
11,334,383 (3,034,149) --
(8,773) -- --
----------- ------------ ----------
13,037,629 (2,884,011) --
----------- ------------ ----------
$12,506,408 $ 366,854 $5,126,947
=========== ============ ==========
</TABLE>
See Accompanying Notes to Financial Statements
43
<PAGE>
Statement of Changes in Net Assets -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens
Index Fund Emerging Growth Fund
--------------------------------- ----------------------------------
For the For the For the For the
year ended year ended year ended year ended
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
<S> <C> <C> <C> <C>
Operations
Net investment
income/(loss) $ (2,900,743) $ (1,048,707) $ (1,189,405) $ (1,019,042)
Realized gain/(loss) on
investments and foreign
currencies 37,531,851 10,984,389 23,103,745 14,909,699
Net change in unrealized
appreciation/(depreciation)
on investments and
foreign currencies 102,701,896 79,818,754 11,531,672 7,492,711
------------ ------------- ------------ ------------
Net increase in net assets
resulting from
operations 137,333,004 89,754,436 33,446,012 21,383,368
Distributions to shareholders:
From net investment
income--Standard -- (34,132) -- --
In excess of net
investment income--
Standard -- -- -- --
From net realized gain on
investments--Standard (4,955,929) (11,994,100) (9,016,170) (4,557,534)
From net investment
income--Institutional -- (79,294) N/A N/A
From net realized gain
on investments--
Institutional (606,104) (996,483) N/A N/A
------------ ------------- ------------ ------------
Total distributions (5,562,033) (13,104,009) (9,016,170) (4,557,534)
Increase in net assets
resulting from capital
share transactions 172,150,908 72,301,740 23,815,566 10,724,793
------------ ------------- ------------ ------------
Total increase in net assets 303,921,879 148,952,167 48,245,408 27,550,627
Net Assets
Beginning of year 373,068,800 224,116,633 87,891,558 60,340,931
------------ ------------- ------------ ------------
End of year $676,990,679 $373,068,800 $136,136,966 $ 87,891,558
------------ ------------- ------------ ------------
Undistributed net
investment income/
(accumulated net
investment loss) $ -- -- $ -- --
------------ ------------- ------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements
44
<PAGE>
Statement of Changes in Net Assets -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Citizens Working Assets
Global Equity Fund Income Fund Money Market Fund
- --------------------------------- --------------------------------- ----------------------------------
For the For the For the For the For the For the
year ended year ended year ended year ended year ended year ended
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
<S> <C> <C> <C> <C> <C>
$ (531,221) $ (284,507) $ 3,250,865 $ 2,478,119 $ 5,126,947 $ 5,124,725
1,712,019 2,742,609 150,138 323,133 -- --
11,325,610 5,267,033 (3,034,149) 1,575,754 -- --
------------ ------------ ------------ ------------ ------------ ------------
12,506,408 7,725,135 366,854 4,377,006 5,126,947 5,124,725
-- -- (3,223,689) (2,459,515) (4,199,590) (4,215,864)
-- -- -- (7,360) -- --
(1,452,563) (1,327,372) (130,143) (74,371) -- --
N/A N/A N/A N/A (927,357) (908,861)
N/A N/A N/A N/A -- --
------------ ------------ ------------ ------------ ------------ ------------
(1,452,563) (1,327,372) (3,353,832) (2,541,246) (5,126,947) (5,124,725)
30,449,834 13,074,611 14,457,919 16,299,679 6,427,903 19,092,288
------------ ------------ ------------ ------------ ------------ ------------
41,503,679 19,472,374 11,470,941 18,135,439 6,427,903 19,092,288
49,045,330 29,572,956 51,365,609 33,230,170 121,775,585 102,683,297
------------ ------------ ------------ ------------ ------------ ------------
$90,549,009 $49,045,330 $62,836,550 $51,365,609 $128,203,488 $121,775,585
------------ ------------ ------------ ------------ ------------ ------------
$ (762,519) -- $ (4,624) $ (27,361) -- --
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements
45
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Index Fund -- Standard Shares***
-----------------------------------------------------------------
For the For the For the For the From
year year year year 03/03/1995
ended ended ended ended to
06/30/1999 06/30/1998 06/30/1997 06/30/1996 06/30/1995
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 23.46 $ 18.04 $ 13.41 $ 10.94 $ 10.00
------- ------- ------- ------- -------
Income/(loss) from
investment operations
Net investment
income/(loss) (0.15) (0.07) -- 0.08 0.01
Net gain/(loss) on
securities (both realized
and unrealized) 7.52 6.44 4.78 2.47 0.93
------- ------- ------- ------- -------
Total from investment
operations 7.37 6.37 4.78 2.55 0.94
Less distributions
from net investment
income -- -- (0.06) (0.03) --
from net realized gains (0.31) (0.95) (0.09) (0.05) --
------- ------- ------- -------- -------
Total distributions (0.31) (0.95) (0.15) (0.08) --
Net asset value, end of
period $ 30.52 $ 23.46 $ 18.04 $ 13.41 $ 10.94
======= ======= ======= ======= =======
Total return 31.58% 36.50% 35.88% 23.41% 9.40%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $578,286 $341,395 $211,116 $136,980 $106,096
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.58% 1.59% 1.59% 1.82% 1.75%**
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.58% 1.59% 1.59% 1.79% 1.75%**
Ratio of net income/(loss)
to average net assets (0.68%) (0.39%) 0.02% 0.68% 0.98%**
Portfolio turnover rate 18.04% 13.64% 18.64% 6.44% 64.95%
</TABLE>
* Not Annualized
** Annualized
*** The Citizens Index Fund--Standard shares commenced operations on March 3,
1995.
See Accompanying Notes to Financial Statements
46
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Index Fund -- Institutional Class Shares***
-----------------------------------------------------------
For the For the For the From
year year year 01/25/1996
ended ended ended to
06/30/1999 06/30/1998 06/30/1997 06/30/1996
<S> <C> <C> <C> <C>
$ 19.13 $ 14.84 $ 11.00 $ 10.00
------- ------- ------- -------
0.01 0.11 0.08 0.08
6.19 5.21 3.94 0.92
------- ------- ------- -------
6.20 5.32 4.02 1.00
-- (0.08) (0.09) --
(0.31) (0.95) (0.09) --
------- ------- ------- -------
(0.31) (1.03) (0.18) --
$ 25.02 $ 19.13 $ 14.84 $ 11.00
======= ======= ======= =======
32.62% 37.38% 36.93% 10.00%*
$98,705 $31,673 $13,001 $ 7,524
0.83% 0.88% 0.88% 1.01%**
0.83% 0.88% 0.88% 0.98%**
0.05% 0.28% 0.76% 2.37%**
18.04% 13.64% 18.64% 6.44%
</TABLE>
* Not Annualized
** Annualized
*** The Citizens Index Fund--Institutional Class shares commenced operations
on January 25, 1996.
See Accompanying Notes to Financial Statements
47
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Emerging Growth Fund
--------------------------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/1999 06/30/1998 06/30/1997 06/30/1996 06/30/1995
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 17.55 $ 14.14 $ 14.87 $ 11.87 $ 9.93
------- ------- ------- ------- -------
Income/(loss) from
investment operations
Net investment
income/(loss) (0.19) (0.20) (0.16) (0.13) 0.07
Net gain/(loss) on
securities (both
realized and
unrealized) 6.19 4.61 0.68 4.72 2.18
------- ------- ------- ------- -------
Total from investment
operations 6.00 4.41 0.52 4.59 2.25
Less distributions
from net investment
income -- -- -- -- (0.09)
from net realized gains (1.79) (1.00) (1.25) (1.59) (0.22)
------- ------- ------- ------- --------
Total distributions (1.79) (1.00) (1.25) (1.59) (0.31)
Net asset value, end of
period $ 21.76 $ 17.55 $ 14.14 $ 14.87 $ 11.87
======= ======= ======= ======= ========
Total return 36.04% 33.05% 4.03% 42.43% 23.24%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $136,137 $87,892 $60,341 $36,409 $ 10,638
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.83% 1.96% 2.01% 2.34% 2.93%
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.82% 1.96% 1.99% 2.02% 1.90%
Ratio of net income/(loss)
to average net assets (1.20%) (1.37%) (1.32%) (1.64%) 0.53%
Portfolio turnover rate 208.49% 245.30% 228.66% 337.41% 231.30%
</TABLE>
See Accompanying Notes to Financial Statements
48
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Global Equity Fund
--------------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/1999 06/30/1998 06/30/1997 06/30/1996 06/30/1995
<S> <C> <C> <C> <C> <C>
$ 16.95 $ 14.47 $ 11.89 $ 10.69 $ 9.80
------- ------- ------- ------- -------
(0.12) (0.20) (0.07) (0.10) (0.01)
3.86 3.24 2.65 1.43 0.96
------- ------- ------- ------- -------
3.74 3.04 2.58 1.33 0.95
-- -- -- -- --
(0.47) (0.56) -- (0.13) (0.06)
------- ------- ------- ------- -------
(0.47) (0.56) -- (0.13) (0.06)
$ 20.22 $ 16.95 $ 14.47 $ 11.89 $ 10.69
======= ======= ======= ======= =======
22.34% 21.75% 21.70% 12.52% 9.77%
$90,549 $49,045 $29,573 $15,595 $ 9,503
1.96% 2.20% 2.33% 2.72% 2.99%
1.96% 2.20% 2.10% 2.55% 2.50%
(0.88%) (0.76%) (0.70%) (1.01%) 0.00%
64.07% 72.33% 69.34% 85.92% 22.10%
</TABLE>
See Accompanying Notes to Financial Statements
49
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Citizens Income Fund
------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/1999 06/30/1998 06/30/1997 06/30/1996 06/30/1995
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 11.03 $ 10.56 $ 10.28 $ 10.38 $ 10.04
------- ------- ------- ------- -------
Income/(loss) from
investment operations
Net investment
income/(loss) 0.59 0.60 0.67 0.66 0.65
Net gain/(loss) on
securities (both
realized and
unrealized) (0.50) 0.49 0.28 (0.10) 0.36
------- ------- ------- ------- -------
Total from investment
operations 0.09 1.09 0.95 0.56 1.01
Less distributions
from net investment
income (0.59) (0.60) (0.67) (0.66) (0.65)
from net realized gains (0.02) (0.02) -- -- (0.02)
------- ------- ------- ------- -------
Total distributions (0.61) (0.62) (0.67) (0.66) (0.67)
Net asset value, end of
period $ 10.51 $ 11.03 $ 10.56 $ 10.28 $ 10.38
======= ======= ======= ======= =======
Total return 0.78% 10.49% 9.57% 5.48% 10.45%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $62,837 $51,366 $33,230 $32,276 $30,122
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.49% 1.86% 1.47% 1.48% 1.48%
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.45% 1.74% 1.41% 1.38% 1.35%
Ratio of net income/(loss)
to average net assets 5.50% 5.55% 6.44% 6.26% 6.47%
Portfolio turnover rate 44.07% 80.14% 64.56% 41.36% 46.03%
</TABLE>
See Accompanying Notes to Financial Statements
50
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Working Assets Money Market Fund -- Standard Shares
------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/1999 06/30/1998 06/30/1997 06/30/1996 06/30/1995
<S> <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
------- ------- ------- ------- -------
Income from investment
operations
Net investment income 0.040 0.045 0.042 0.045 0.044
Less distributions
from net investment
income (0.040) (0.045) (0.042) (0.045) (0.044)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return 4.07% 4.54% 4.30% 4.60% 4.51%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $105,740 $103,597 $ 85,179 $ 78,326 $ 97,611
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.24% 1.23% 1.39% 1.21% 1.16%
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.19% 1.21% 1.25% 1.18% 1.16%
Ratio of net income to
average net assets 4.00% 4.46% 4.23% 4.56% 4.39%
</TABLE>
See Accompanying Notes to Financial Statements
51
<PAGE>
Financial Highlights -- June 30, 1999
<TABLE>
<CAPTION>
Working Assets Money Market Fund -- Institutional Class
Shares***
-----------------------------------------------------------
For the For the For the From
year year year 02/01/1996
ended ended ended to
06/30/1999 06/30/1998 06/30/1997 06/30/1996
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Income from investment
operations
Net investment income 0.045 0.051 0.049 0.021
Less distributions
from net investment
income (0.045) (0.051) (0.049) (0.021)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return 4.58% 5.23% 5.01% 2.09%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $ 22,464 $ 18,178 $ 17,504 $ 14,539
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 0.70% 0.56% 0.60% 0.47%**
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 0.70% 0.56% 0.60% 0.47%**
Ratio of net income to
average net assets 4.47% 5.11% 4.92% 5.16%**
</TABLE>
* Not Annualized
** Annualized
*** The Working Assets Money Market Fund--Institutional Class shares commenced
operations on February 1, 1996.
See Accompanying Notes to Financial Statements
52
<PAGE>
Notes to Financial Statements -- June 30, 1999
NOTE 1--Summary of Significant Accounting Policies
Organization
The Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Global Equity
Fund, Citizens Income Fund and the Working Assets Money Market Fund (the
"Funds") are each a series of shares of beneficial interest of Citizens Funds
(the "Trust"). Collectively, these Funds are known as the "Citizens Funds." The
Trust is organized as a Massachusetts Business Trust and is registered as an
open-end diversified management investment company under the Investment Company
Act of 1940, as amended (the "1940 Act"), and is authorized to issue an
unlimited number of no par value shares in one or more series.
The Citizens Emerging Growth Fund, Citizens Global Equity Fund and the Citizens
Income Fund offer one class of shares, known as Standard shares. The Citizens
Index Fund and the Working Assets Money Market Fund offer Standard as well as
Institutional Class shares.
With respect to the Citizens Index Fund and the Working Assets Money Market
Fund, shares of each class are entitled to vote as a class or series only to
the extent required by the 1940 Act, or as provided in the Funds' Declaration
of Trust or as permitted by the Board of Trustees. Investment income, realized
and unrealized capital gains and losses, and non class-specific expenses are
allocated on a pro rata basis to each class based on the relative net assets of
each class to the total net assets of each Fund. Each class of shares differs
in its respective distribution, administration and shareholder servicing
expenses and may differ in certain other class-specific fees and expenses (see
footnote 2).
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. The following is a
summary of significant accounting policies followed by the Funds.
Portfolio Valuation
Equity securities are valued at the last sale price on the primary exchange on
which such securities are traded or on the principal over-the-counter market on
which such securities are traded, as of the close of business on the day the
securities are valued, or, lacking any sales, at the last available bid price
for domestic securities and halfway between the bid and asked price for
international securities. Fixed income
53
<PAGE>
Notes to Financial Statements -- June 30, 1999
investments generally are valued at the bid price for securities. Short-term
securities are valued at amortized cost. Investments for which market
quotations are not readily available (including restricted securities which are
subject to limitations on their sale) are valued at fair value, as determined
in good faith by or under the direction of the Funds' Board of Trustees.
Security Transactions, Related Investment Income and Other
Security transactions are accounted for on the trade date (date the order to
buy or sell is executed). The cost of securities sold is determined on the
identified cost basis, unless otherwise specified. Interest income is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date.
The Working Assets Money Market Fund 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.
Distributions to Shareholders
The Citizens Index Fund, Citizens Emerging Growth Fund and the Citizens Global
Equity Fund distribute net investment income and net capital gains, if any, to
shareholders annually. The Citizens Income Fund distributes net investment
income to shareholders monthly and net capital gains, if any, annually. With
respect to the Working Assets Money Market Fund, dividends from net investment
income are accrued daily and are reinvested in additional shares or paid in
cash monthly. Distributions are recorded by the Funds on the ex-dividend date.
Income 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 of net
operating losses and loss deferral due to wash sales, mark-to-market treatment
of passive foreign investment companies, and excise tax regulations.
Federal Income Taxes
It is the policy of the Funds to meet the requirements for qualification as a
"regulated investment company" under the applicable Internal Revenue Code. It
is also the intention of the Funds to make distributions sufficient to avoid
imposition of any excise tax. Therefore, no provision has been made for Federal
taxes on income, capital gains or unrealized appreciation of securities held,
or excise tax on income and capital gains.
54
<PAGE>
Notes to Financial Statements -- June 30, 1999
Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. Dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are recorded on the books and records of the Funds after being translated into
U.S. Dollars at the prevailing rates of exchange on that day. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. Dollars at the prevailing exchange rate on the respective dates of the
transactions.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Funds' books and the U.S. Dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year
end resulting from changes in exchange rates. The effects of changes in foreign
currency exchange rates on investments in securities are included with the net
realized gain or loss on investment securities.
Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, it is the
Funds' policy to receive collateral securities of which the value, including
accrued interest, is at least equal to the amount to be repaid to the Funds
under each agreement at its maturity.
Restricted Securities
The Funds are permitted to invest in privately placed securities. These
securities may be resold in transactions exempt from registration or to the
public, if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult. At the end of the period, restricted
securities (excluding 144A issues) are shown at the end of the Funds' Statement
of Investments.
Options
Each Fund, other than the Working Assets Money Market Fund, is permitted to
write call or put options. When a Fund writes a call or put option, an amount
equal to the premium received is included in the Fund's "Statement of Assets
and Liabilities" as an asset and an equivalent liability. The amount of the
liability is subsequently "marked to market" to reflect the current market
value of the option. If the option
55
<PAGE>
Notes to Financial Statements -- June 30, 1999
expires on its stipulated expiration date or if the Fund enters into a closing
purchase transaction, a gain or loss is realized without regard to any
unrealized gain or loss on the underlying security, and the liability related
to such option is extinguished. If a written call option is exercised, a gain
or loss is realized from the sale of the underlying security, and the proceeds
from the sale are increased by the premium originally received. If a written
put option is exercised, the cost of the underlying security purchased would be
decreased by the premium originally received.
When a Fund purchases a call or put option, the premium paid by the Fund is
recorded as an investment and subsequently "marked to market" to reflect the
current market value of the option. If an option which the Fund has purchased
expires on the stipulated expiration date, the Fund realizes a loss in the
amount of the cost of the option. If a Fund enters into a closing transaction,
the Fund realizes a gain or loss depending on whether the proceeds of the
closing sale transaction are greater or less than the cost of the option. If
the Fund exercises a call option, the cost of the securities acquired by
exercising the call is increased by the premium originally paid. If the Fund
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.
These option contracts may be listed for trading on a national securities
exchange or traded over-the-counter. Over-the-counter options are transacted
directly with dealers and not with a clearing corporation, and there is a risk
of nonperformance by the dealer. The Fund, as writer of a call option, loses
the potential for gain on the underlying security above the exercise price
while the option is outstanding. By writing a put option, the Fund might become
obligated to purchase the underlying security at an exercise price that exceeds
the then-current market price.
Deferred Organization Costs
All costs incurred in connection with the organization, registration and/or
reorganization of the Funds have been paid by the Funds. These costs are being
amortized on a straight-line basis over a period not to exceed 60 months.
56
<PAGE>
Notes to Financial Statements -- June 30, 1999
NOTE 2--Fees and Other Transactions with Affiliates
Management Fee
Citizens Advisers (the "Adviser") serves as Adviser to each of the Funds. Under
the terms of the management contract, the Adviser is paid a monthly fee based
on an annual rate of each Fund's average net assets. Those rates are as
follows:
<TABLE>
<S> <C>
Citizens Index Fund 0.50%
Citizens Emerging Growth Fund 1.00%
Citizens Global Equity Fund 1.00%
Citizens Income Fund 0.65%
Working Assets Money Market Fund 0.35%
</TABLE>
Seneca Capital Management LLC serves as the Sub-Adviser for the Citizens
Emerging Growth Fund and the Citizens Income Fund. Clemente Capital, Inc. serves
as the Sub-Adviser for the Citizens Global Equity Fund. For their services, the
Sub-Advisers receive fees based on an annual rate of each Fund's average net
assets, paid by the Adviser as follows:
<TABLE>
<S> <C>
Citizens Emerging Growth Fund 0.35% of the first $100 million
(fee revised as of 1/1/99) 0.25% thereafter
Citizens Global Equity Fund 0.35%
Citizens Income Fund 0.175%
</TABLE>
Rhumbline Advisers served as Sub-Adviser to the Citizens Index Fund until
September 15, 1998, receiving fees of 0.10% of average net assets from the
Adviser.
For the year ended June 30, 1999, the Adviser has agreed to waive certain fees
and reimburse certain expenses to the extent that the total expenses of a Fund
for any fiscal year (exclusive of taxes, interest, brokerage commissions and
extraordinary expenses) exceed the following limits of each Fund's average net
assets:
<TABLE>
<S> <C>
Citizens Index Fund--
Institutional Class shares 0.83%
Citizens Global Equity Fund 2.05%
Citizens Income Fund 1.45% of the first $100 million
1.25% thereafter
Working Assets Money Market Fund-- 1.50% of the first $40 million
Standard shares 1.00% thereafter
</TABLE>
In addition the Adviser voluntarily waived 0.10% of its fee for the Emerging
Growth Fund when the Fund's monthly average net assets exceeded $100 million.
57
<PAGE>
Notes to Financial Statements -- June 30, 1999
Distribution Fee
Citizens Securities Inc. (the "Distributor") is a wholly owned subsidiary of
the Adviser and serves as the Fund's Distributor.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust's Board of Trustees has
adopted a separate distribution plan with respect to the Fund's Standard shares
and Institutional Class shares pursuant to which the Funds reimburse the
Distributor for a portion of its distribution related expenses.
Distribution fees for the year ended June 30, 1999 were charged based on a
percentage of average daily net assets as follows:
<TABLE>
<S> <C>
Citizens Index Fund--Standard shares 0.25%
Citizens Index Fund--Institutional Class shares* 0.00%
Citizens Emerging Growth Fund 0.25%
Citizens Global Equity Fund 0.25%
Citizens Income Fund 0.25%
Working Assets Money Market Fund--Standard shares 0.20%
Working Assets Money Market Fund--Institutional Class shares 0.00%
</TABLE>
*Under the terms of the Distribution agreement in effect through June 30, 1999
the Distributor could charge up to 0.07% of average daily net assets for
distribution related expenses. For the year ended June 30, 1999 no such fees
were charged.
Administrative and Shareholder Service Fees
Citizens Advisers also performs a wide variety of administrative duties for the
Trust under a separate administrative contract which provides for the
reimbursement of out of pocket expenses as well as fees for services rendered.
These fees for the year ended June 30, 1999 were charged based on a percentage
of average daily net assets as follows:
<TABLE>
<S> <C>
Citizens Index Fund--Standard shares 0.20%
Citizens Index Fund--Institutional Class shares* 0.09%
Citizens Emerging Growth Fund 0.10%
Citizens Global Equity Fund 0.10%
Citizens Income Fund 0.10%
Working Assets Money Market Fund--Standard shares 0.15%
Working Assets Money Market Fund--Institutional Class shares 0.00%
</TABLE>
*Under the terms of the Administration agreement in effect through June 30,
1999 Citizens Advisers could charge up to 0.30% of average daily net assets.
58
<PAGE>
Notes to Financial Statements -- June 30, 1999
In addition, Citizens Securities provides a number of administrative services
to the Trust relating primarily to shareholder services and communications, and
is reimbursed at a rate approximating the "market price" of such services. The
Citizens Index Fund--Standard shares also may be charged a shareholder service
fee of up to 0.45% based on the average daily net assets of the class. For the
year ended June 30, 1999, a fee of 0.31% was charged. For the year ended June
30, 1999, the Trust paid administrative and shareholder service fees as
follows:
<TABLE>
<CAPTION>
Administrative Shareholder
Fees Service Fees
---------------- -------------
<S> <C> <C>
Citizens Index Fund--Standard shares $945,259 $1,558,728
Citizens Index Fund--Institutional Class shares 51,526 1,156
Citizens Emerging Growth Fund 135,260 92,229
Citizens Global Equity Fund 79,200 40,967
Citizens Income Fund 76,144 36,962
Working Assets Money Market Fund--
Standard shares 199,890 106,665
Working Assets Money Market Fund--
Institutional Class shares 959 1,128
</TABLE>
Trustee Fees
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 at a Trustee meeting, except for the Chair, who receives an
annual retainer of $9,000 as well as $1,000 for each day's attendance at a
Trustee meeting.
Transfer Agent Fees
PFPC Inc. provides certain transfer agency services pursuant to certain fee
arrangements. Under an agreement with the transfer agent, transfer agent fees
are reduced by credits for cash balances as set forth below for the year ended
June 30, 1999:
<TABLE>
<S> <C>
Citizens Index Fund--Standard shares $6,960
Citizens Index Fund--Institutional Class shares 1,380
Citizens Emerging Growth Fund 5,573
Citizens Global Equity Fund 2,690
Citizens Income Fund 881
Working Assets Money Market Fund--Standard shares 12,841
Working Assets Money Market Fund--Institutional Class shares 886
</TABLE>
Transfer agent fees also include the cost of services rendered to provide sub-
transfer agency services and shareholder statements.
59
<PAGE>
Notes to Financial Statements -- June 30, 1999
Class Specific Expenses
As described above there are certain fees and expenses which vary by share
class within the Citizens Index Fund and the Working Assets Money Market Fund,
as set forth below, for the year ended June 30, 1999:
<TABLE>
<CAPTION>
Working Assets
Citizens Index Fund Money Market Fund
---------------------------- ---------------------------
Standard Institutional Standard Institutional
Shares Class Shares Shares Class Shares
---------- --------------- ---------- --------------
<S> <C> <C> <C> <C>
Transfer agent expenses $642,631 $57,828 $221,316 $24,315
</TABLE>
NOTE 3--Purchases and Sales of Investment Securities
The following summarizes purchases and sales of investment securities, other
than short-term investments, by each Fund for the year ended June 30, 1999:
<TABLE>
<CAPTION>
Purchases Sales
------------------------------- -------------------------------
U.S. Government Other U.S. Government Other
<S> <C> <C> <C> <C>
Citizens
Index Fund $3,401,397 $248,491,707 $1,594,125 $86,408,907
Citizens
Emerging
Growth Fund -- 206,749,828 -- 191,138,140
Citizens
Global
Equity Fund -- 58,298,899 -- 35,320,768
Citizens
Income Fund 16,770,714 20,582,085 5,000,000 19,122,928
</TABLE>
NOTE 4--Options
The Citizens Emerging Growth Fund's written options contract activity for the
year ended June 30, 1999 was as follows:
<TABLE>
<CAPTION>
Number Premium
-------- ------------
<S> <C> <C>
Options outstanding at June 30, 1998 150 $ 110,246
Options exercised (150) (110,246)
Options outstanding at June 30, 1999 0 0
</TABLE>
60
<PAGE>
Notes to Financial Statements -- June 30, 1999
NOTE 5--Custody of Securities
State Street Bank & Trust Co. acts as custodian for the Funds. Under an
agreement with the custodian bank, custody fees are reduced by credits for cash
balances as set forth below for the year ended June 30, 1999:
<TABLE>
<S> <C>
Citizens Index Fund $11,530
Citizens Emerging Growth Fund 2,409
Citizens Global Equity Fund 1,474
Citizens Income Fund 1,478
Working Assets Money Market Fund 3,171
</TABLE>
NOTE 6--Capital Shares
At June 30, 1999 there were an unlimited amount of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
Citizens Index Fund--Standard shares
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 8,299,062 $220,034,135 4,470,158 $93,123,009
Shares issued in
reinvestment of
distributions 176,968 4,845,398 614,329 11,776,678
Shares redeemed (4,082,071) (104,471,920) (2,229,198) (46,242,696)
---------- ------------ ---------- -----------
Net increase/(decrease) 4,393,959 $120,407,613 2,855,289 $58,656,991
========== ============ ========== ===========
</TABLE>
Citizens Index Fund--Institutional Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 2,999,864 $68,105,923 856,256 $14,991,105
Shares issued in
reinvestment of
distributions 26,311 588,312 66,804 1,040,809
Shares redeemed (736,443) (16,955,271) (143,279) (2,389,757)
--------- ----------- -------- -----------
Net increase/(decrease) 2,289,732 $51,738,964 779,781 $13,642,157
========= =========== ======== ===========
</TABLE>
Citizens Emerging Growth Fund
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 5,092,335 $93,221,737 8,679,595 $136,411,777
Shares issued in
reinvestment of
distributions 469,616 8,636,244 315,387 4,383,874
Shares redeemed (4,314,244) (78,042,415) (8,255,328) (130,070,858)
---------- ----------- ---------- ------------
Net increase/(decrease) 1,247,707 $23,815,566 739,654 $ 10,724,793
========== =========== ========== ============
</TABLE>
61
<PAGE>
Notes to Financial Statements -- June 30, 1999
Citizens Global Equity Fund
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 3,696,959 $68,984,216 1,279,900 $19,751,171
Shares issued in
reinvestment of
distributions 70,023 1,280,028 83,450 1,186,661
Shares redeemed (2,183,306) (39,814,410) (513,508) (7,863,221)
---------- ----------- --------- -----------
Net increase/(decrease) 1,583,676 $30,449,834 849,842 $13,074,611
========== =========== ========= ===========
</TABLE>
Citizens Income Fund
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 2,219,779 $24,188,857 1,362,024 $14,876,174
Shares issued in connection
with the merger of the
Muir Portfolio (note 7) -- -- 996,129 10,678,482
Shares issued in
reinvestment of
distributions 263,390 2,859,497 197,805 2,157,311
Shares redeemed (1,159,452) (12,590,435) (1,047,393) (11,419,649)
---------- ----------- ---------- -----------
Net increase/(decrease) 1,323,717 $14,457,919 1,508,565 $16,292,318
========== =========== ========== ===========
</TABLE>
Working Assets Money Market Fund--Standard shares
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
------------------------------ -----------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 183,200,597 $183,200,597 225,185,324 $225,185,324
Shares issued in connection
with the merger of the
EoFund (note 7) -- -- 20,424,963 20,424,963
Shares issued in
reinvestment of
distributions 4,128,302 4,128,302 4,133,681 4,133,681
Shares redeemed (185,186,268) (185,186,268) (231,203,065) (231,203,065)
------------ ------------ ------------ ------------
Net increase/(decrease) 2,142,631 $ 2,142,631 18,540,903 $ 18,540,903
============ ============ ============ ============
</TABLE>
Working Assets Money Market Fund--Institutional Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
---------------------------- ---------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 16,168,511 $16,168,511 12,205,583 $12,205,583
Shares issued in
reinvestment of
distributions 916,004 916,004 892,790 892,790
Shares redeemed (12,799,243) (12,799,243) (12,423,765) (12,423,765)
----------- ----------- ----------- -----------
Net increase/(decrease) 4,285,272 $ 4,285,272 674,608 $ 674,608
=========== =========== =========== ===========
</TABLE>
62
<PAGE>
Notes to Financial Statements -- June 30, 1999
NOTE 7--Fund Reorganizations
Pursuant to a plan of reorganization approved by the Muir California Tax-Free
Income Portfolio ("Muir Portfolio") shareholders on September 12, 1997, the
Citizens Income Fund acquired all the net assets of the Muir Portfolio. The
Muir Portfolio was, at that time, a separate series of shares of beneficial
interest of Citizens Investment Trust. The acquisition was accomplished by
exchange of 996,127 shares of the Citizens Income Fund (valued at $10,678,482)
for the 655,524 shares of the Muir Portfolio outstanding on September 12, 1997.
The Muir Portfolio's net assets at that date ($10,678,433) were combined with
those of the Citizens Income Fund. The aggregate net assets of the Citizens
Income Fund 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, pursuant to a plan of reorganization approved by the
EoFund shareholders on December 1, 1997, the Working Assets Money Market Fund--
Standard shares acquired all the net assets of the EoFund. The EoFund was, at
that time, a separate series of shares of beneficial interest of Citizens
Investment Trust. The acquisition was accomplished by a tax-free exchange of
20,424,963 shares of the Working Assets Money Market Fund--Standard shares
(valued at $20,424,963) for the 20,424,963 shares of the EoFund outstanding on
December 5, 1997. The EoFund's net assets at that date ($20,424,963) were
combined with those of the Working Asset Money Market Fund--Standard shares.
The aggregate net assets of the Working Assets Money Market Fund--Standard
shares and the EoFund 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.
- --------------------------------------------------------------------------------
Federal Tax Information (unaudited)
Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the
following amounts as capital gain dividends for the fiscal year ended June 30,
1999:
<TABLE>
<CAPTION>
20%
----------
<S> <C>
Citizens Index Fund $5,058,981
Citizens Emerging Growth Fund 3,587,626
Citizens Global Equity Fund 1,452,666
Citizens Income Fund 130,143
</TABLE>
63
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of Citizens Funds:
In our opinion, the accompanying statements of assets and liabilities,
including schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in
all material respects, the financial position of Citizens Index Fund, Citizens
Emerging Growth Fund, Citizens Global Equity Fund, Citizens Income Fund and
Working Assets Money Market Fund at June 30, 1999, and the results of their
operations for the year then ended, the changes in their net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audit. The financial highlights for each of the periods ending on or before
June 30, 1997, were audited by other auditors whose report dated July 25, 1997
expressed an unqualified opinion. We conducted our audit of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at June 30, 1999 by correspondence with the custodian
and brokers, provides a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
August 12, 1999
64
<PAGE>
At Citizens Funds, we are determined to do everything we can to let investors
know just how much we value their business. That's why we offer a comprehensive
range of services that includes everything from attentive telephone
representatives to an informative web site.
A Full Range of Socially Responsible
No-Load Mutual Funds*
Citizens Index Fund
Citizens Emerging Growth Fund
Citizens Global Equity Fund
Citizens Income Fund
Working Assets Money Market Fund
Free Exchanges Between
Citizens Funds
You can move your money easily and
without penalty from any one of our
funds to another.
Individual Retirement Plans (IRA)
We offer investors the opportunity to
invest in a variety of IRAs, including
Traditional, Roth and Rollover. Citizens
Funds are also available for 401(k),
403(b), SEP and SIMPLE retirement plans.
Automatic Investment Plan
Invest automatically on a monthly or
quarterly basis with payroll deduction
or electronic transfer from your bank.
Unparalleled Customer Service
Our representatives are well-trained,
salaried professionals whose goal is to
satisfy most requests during the first
phone call.
Representatives are available from
9 a.m. to 8 p.m. (ET) Monday--Friday at
(800) 223-7010.
www.citizensfunds.com
Our web site offers daily fund prices
and performance, fund and manager
profiles, fund prospectuses and
applications, shareholder activism
updates and much more.
Intelligent Communications
Citizens Funds pioneered the plain
English prospectus well before it became
the standard for the rest of the mutual
fund industry. We try to bring that same
spirit of innovation, plain-speak and
respect for our shareholders to all our
communications, including:
o Quarterly statements (monthly for
money market shareholders)
o Shareholder newsletters
*Although Citizens Funds are no-load,
certain fees and expenses do apply to a
continued investment in the funds and
are described in the prospectus.
An investment in Citizens' funds and the
Working Assets Money Market Fund is
neither insured nor guaranteed by the
U.S. Government. There is no assurance
that the Working Assets Money Market
Fund will be able to maintain a stable
net asset value of $1.00.
The prospectus contains more information
about the volatility of investing in
foreign markets through the Citizens
Global Equity Fund, including the
political, economic and currency risks.
<PAGE>
Trustees:
Sophia Collier
Lokelani Devone
Juliana Eades
William D. Glenn II
Mitchell Johnson
Azie Taylor Morton, Chair
Robert Reich
Ada Sanchez
John L. Shields
Distributor:
Citizens Securities
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Manager:
Citizens Advisers
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Custodian:
State Street Bank
& Trust Company
Boston, MA 02110
Transfer Agent and
Dividend Disbursing Agent:
PFPC Inc.
Wilmington, DE 19899
Legal Counsel:
Bingham Dana, LLP
Boston, MA 02110
Independent Auditors: PricewaterhouseCoopers, LLP
Boston, MA 02110
[CITIZENS FUNDS LOGO]
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Citizens Funds are available through such popular mutual fund supermarkets as
Charles Schwab's Mutual Fund OneSource and Fidelity Investments Funds Network.
Please call us for a prospectus that contains complete details of fees
and expenses and should be read carefully before investing.
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