At Citizens Funds, we screen companies
very carefully. It's the best way we
know to help our shareholders flourish.
Semi-Annual Report December 31, 1998 [Citizens Logo]
<PAGE>
Is the company financially successful? Are its products good and useful? Is it
committed to the environment? Is there a place for women and minorities in upper
[Sophia Collier Graphic]
management and on its board? Is it a good corporate citizen?
These are typical questions that form the basis of our rigorous screening
process - a process championed by the woman who founded Citizens Funds,
Sophia Collier.
<PAGE>
[Graphic of John Shields]
Dear Shareholder -- As you probably know, I became President of Citizens Funds
on September 1, 1998, taking over for Sophia Collier. In this, my first
semi-annual letter to shareholders, I am pleased to report on the continued
success of our funds and of socially responsible investing. Led by strong
performance and an influx of new shareholders, Citizens Funds grew by more than
50% during 1998, from $547 million to more than $841 million. Clearly, our
investment philosophy is working.
In today's business environment, it is a rare opportunity to assume control of a
company that is so well managed and poised for growth. Taking over for Sophia, I
was inheriting a company with a proud tradition as a leader in the social
investing community, an impressive financial record and one that was ready to
enter a period of rapid expansion. Fortunately, Sophia continues as a Trustee
and as Chair of the Board of Citizens Advisers, and remains the leader of the
portfolio management team for the Citizens Index Fund. We value her continued
vision and leadership.
I can report to you that we are prepared to manage the rapid growth of Citizens
Funds efficiently and effectively. Over the past year, Citizens has strengthened
its management team by hiring experienced professionals from some of the world's
most respected financial services firms. We have also invested in the
infrastructure necessary to provide outstanding service and support as our funds
and our organization continue to grow.
I also am committed to continuing Citizens' tradition of socially responsible
investing. I firmly believe our social and environmental screening process helps
us identify better-managed companies, which make for better long-term
investments. Consider some of our results for the period ended 12/31/98:
The Citizens Index Fund's one-year return of 42.75% outperformed 94% of all 980
growth funds monitored by Lipper, Inc. The Fund had a three-year average annual
return of 33.31% and an average annual return since inception (3/3/95) of
32.51%. This three-year return outperformed 97% of all 585 growth funds
monitored by Lipper. We were not surprised, therefore, that the Citizens Index
Fund was the #1 socially conscious fund out of 46 such funds tracked by
Morningstar for the three-year period ended 12/31/98.
The Citizens Global Equity Fund's one-year return of 32.26% outperformed 95% of
all 224 global funds monitored by Lipper, which was quite an impressive
accomplishment given the turbulence in overseas markets. The Fund's three-year
average annual return of 21.50% outperformed 91% of all 147 global funds, and
its average annual return since inception (2/8/94) was 15.05%.
<PAGE>
The Citizens Emerging Growth Fund's one-year return of 42.71%, outperformed 98%
of all 327 mid-cap funds tracked by Lipper, while its three-year average annual
return of 24.12% outperformed 93% of 182 of its peers. The Fund's average annual
return since inception (2/8/94) was 24.15%.
Providing our shareholders with competitive returns is only part of the equation
at Citizens. We also strive to provide world-class service. Staffed by trained
professionals, our shareholder services department utilizes a new,
state-of-the-art phone system and is constantly striving to improve the quality
and efficiency of our services to shareholders.
We continue to take our role as socially responsible investors very seriously.
This past year, we participated in campaigns to expose sweatshop practices among
overseas suppliers, bring pressure upon the brutal military regime in Burma and
encourage more diversity on corporate boards. We realize there are no perfect
companies. That is why we constantly strive to improve the companies in which we
are invested.
When investing in mutual funds, it is important to take a long-term view. A
temporary market downturn such as we experienced last August and September can
rattle even the most stalwart investor. Those who held tight, however, were
rewarded when the market recouped all it had lost, and more, by the end of the
year. The year ahead may hold further surprises, and probably will, but I am
optimistic about the future -- and about the future of Citizens Funds.
Citizens Funds truly is a special mutual fund company. It is my distinct
pleasure to present to you, our valued shareholders, this semi-annual report.
Sincerely,
[Signature of John Shields]
John Shields
President and CEO
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 cost. Although there are
no fee waivers currently in effect for these funds, fee waivers were instituted
in the past to maintain expense limits, without which returns would have been
lower.
Please call us at 1-800-223-7010 for a prospectus that contains complete details
of fees and expenses and should be read carefully before investing. 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.
Distributed by Citizens Securities, Portsmouth, NH 03801
<PAGE>
Table of Contents
President's Letter 1
Managers' Comments 4
Year 2000 Statement 14
Statement of Investments 15
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
<PAGE>
[Laura Provost Graphic]
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 rated in the top
two rating categories, while maintaining an average maturity of 90 days or less.
The Results: Total return for the six- and twelve-month periods ended 12/31/98
for the Standard Class shares was 2.15% and 4.43%, respectively. Total return
for the six- and twelve-month periods ended 12/31/98 for the Institutional Class
shares was 2.38% and 5.05%, respectively. Both Standard and Institutional Class
shares had a weighted-average maturity of 62 days.
In the first half of 1998, Fed policy remained tilted toward tightening, or
raising, interest rates. Despite some evidence of a future slowdown, strained
labor markets and their potential to spark wage inflation kept the Fed
inflation-vigilant but on the sidelines. During this period, the money market
yield curve exhibited a normal positive slope. In other words, investors
received more yield by investing for a longer period.
In the second half of 1998, events in the foreign markets and their potential
impact on our economy prompted the Federal Reserve to quickly shift gears and
reduce the Fed Funds rate 75 basis points to 4.75%. In this difficult
environment for money market portfolios, the Working Assets Money Market Fund
ended the year with a 4.43% total return (5.05% for Institutional Class shares)
and a weighted-average maturity of 62 days.
In August, the spread of the Asian financial crisis to Russia roiled the world
markets. Despite our nearly non-existent trading relationship, events in Russia
presented a very real threat to our economy. First, the impact on other emerging
markets, including our substantial trading partner, Latin America, had the
potential to weaken our economy through future trade loss. Second, and of more
immediate concern, was the near collapse of a highly leveraged hedge fund.
Sudden liquidation of the positions in the hedge fund held the potential to
further destabilize the already unsettled global markets and cause damage to
many fragile economies. The potential risk to our financial system and the
uncertainty created by the situation toppled stocks and sparked a massive flight
to quality in the fixed-income universe. In the corporate bond market, credit
spreads widened and new issuance dried up. In response to this action and in
anticipation of future Fed reductions, the money market yield curve developed a
negative (inverted) slope.
4
<PAGE>
Managers' Comments -- Working Assets Money Market Fund
With restored liquidity and confidence in the markets, the year ended on a
healthy note. Economic growth in the fourth quarter was strong, while inflation
remained dormant, with a year-over-year rate of 1.6%. As we move into 1999, we
expect the economy to moderate. Two mainstays of the economy, consumer spending
and business investment, are expected to slow. Over the past year, advances in
the stock market producing the so-called "wealth effect," coupled with strong
employment and low interest rates have resulted in a surge in consumer spending.
With the stock market expected to return to a more normal rate of growth, wealth
accumulation will slow. In addition, a further decline in trade, declining
corporate profits and the resulting decline in business investment should slow
employment growth and reduce overall income. 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.
5
<PAGE>
[Gail Seneca Graphic]
Gail Seneca,
Lead manager of the Citizens Income Fund team since November 1993.
Managers' Comments -- Citizens Income Fund
Objective: Current income. The Ground Rules: Invests at least 65% of the
portfolio in taxable bonds rated at least "investment grade." The Results:
Total return for the six- and twelve-month periods ended 12/31/98 was 2.08% and
5.81%, respectively. The Lehman Government/Corporate Intermediate Index ended
the year with a six-month return of 4.80% and a twelve-month total return of
8.44%.
The Citizens Income Fund returned 2.08% and 5.81% for the six- and twelve-month
periods, respectively, ended 12/31/98.
The second half of 1998 was characterized by extreme volatility in global
fixed-income markets. The catalyst for the upheaval was a default by Russia on
its domestic debt in August. The resulting losses reverberated through all
corners of the fixed-income world as investors, especially those who were
leveraged, rushed to sell any bond that carried credit or liquidity risk. The
magnitude of the risks facing the global financial system became all too
apparent in September when Long Term Capital Management, a very highly respected
hedge fund, sustained major losses and needed to be bailed out by its creditors.
The repercussions from the Russian default and the losses at the hedge fund were
extreme. There was a tremendous rally in U.S. Treasury bonds and a substantial
widening of credit spreads. Both equity and global credit markets experienced
severe stress as panic selling in illiquid markets exacerbated price moves,
while the ensuing volatility created further panic. Investors scrambled to buy
only those financial assets that carried the full faith and guarantee of the
U.S. Government.
The Federal Reserve shared the market's worries over the large dislocation in
global financial markets. This led the Federal Open Market Committee to cut the
Fed Funds rates by 25 basis points at the end of September and then again in
October. The October rate cut by the Fed proved the turning point in
fixed-income markets, with investors refocusing on corporates and mortgages and
moving away from government bonds. The Fed cut interest rates again in November,
further aiding credit markets.
As a result of this turmoil, corporate bonds underperformed Treasuries and the
Treasury-laden broad bond indices in the second half of 1998.
6
<PAGE>
Managers' Comments -- Citizens Income Fund
The Citizens Income Fund, which has invested heavily in corporate bonds,
underperformed its benchmark index and the Treasury market for this period.
However, none of our securities suffered defaults, credit downgrades or adverse
business developments. The modest performance we experienced was fully a
function of the extreme risk aversion in the markets during the crisis, which
reduced the prices of all corporate bonds, regardless of quality. This situation
already has begun to change. Our emphasis on bottom-up research and security
selection should be rewarded in this environment, as credits will receive
stronger valuations than in the latter half of 1998. We believe corporate bonds
are attractive from both a fundamental and a valuation perspective.
The interest rate environment remains very positive for corporations and should
provide a cushion to earnings in a slowing economy. We expect the U.S. economy
to decelerate during 1999 to a more steady 2.0%-2.5% growth rate. Inflation
remains benign, with prices for many raw materials continuing to fall. Global
pricing pressures are continuing to intensify and should keep inflation subdued
over the medium term. Bonds remain an attractive asset.
7
<PAGE>
[Sophia Collier Graphic]
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 up to 100%
of assets at all times in the approximately 300 companies that comprise the
Citizens IndexTM, in a fixed proportion equal to the weight of each company. The
Results: Total return for the six- and twelve-month periods ended 12/31/98 for
the Standard Class shares was 17.44% and 42.75%, respectively. The Institutional
Class shares returned 17.93% for the six months and 43.79% for the twelve months
ended 12/31/98. The S&P 500 Index ended the year with a six-month return of
9.35% and a twelve-month total return of 28.75%.
For the twelve-month period ended December 31, 1998, the Citizens Index Fund
posted a gain of 42.75%, outperforming its benchmark, the S&P 500 Index, by 14
percentage points. For the six-month period, the Fund had a total return of
17.44%. According to Lipper, Inc., a well-known mutual fund rating company, the
Citizens Index Fund outperformed 94% of all 980 growth funds for the one year
ended 12/31/98 and 97% of all 585 such funds for the three years ended 12/31/98.
Citizens Index companies proved once again to be financially profitable as well
as socially responsible.
In the first six months of 1998, solid economic conditions in the United States
contributed to strong stock market gains. However, investors' perceptions
changed during the summer when Russia's credit problems deteriorated, causing a
chain reaction in the world credit markets. This, in turn, created an unusually
strong "flight to quality" and away from all risky financial instruments.
Consequently, the widely followed S&P 500 Index experienced a correction in the
third quarter, dropping 9.87%, while the Citizens Index Fund fell 7.89% for the
quarter.
Widening credit spreads, reduced issuance of lower quality debt and tightening
of bank credit prompted three interest rate reductions by the Federal Reserve,
slowly returning confidence to both equity and credit markets. In an environment
of even lower interest rates and strong economic fundamentals, the stock market
rallied, with the S&P 500 Index returning 21.32% in the fourth quarter. The
Citizens Index Fund returned 27.49% during this period.
Having a long-term, passive investment strategy, we stayed fully invested when
market sentiment was at its lowest level during the third quarter and were
richly rewarded when the pendulum swung in our favor in the fourth quarter.
Industry sector composition also
8
<PAGE>
Managers' Comments -- Citizens Index Fund
played a role in our performance. Concentration in business machines,
electronics and finance sectors helped us significantly outperform our
benchmark, the S&P 500 Index.
During the last six months, the best-performing stock of the Citizens Index
Fund was America Online (+195%), which benefited from many new members and
their on-line purchases. Charles Schwab (+159%) was another beneficiary of
electronic commerce, registering a high volume of both on-line and regular
trades. Other strong performers in the last six months of 1998 included: Intel
Corp. (+60%), Dell Computer Corp. (+58%), Cisco Systems (+51%) and Lucent
Technologies (+32%).
There were some disappointments as well during the last six months. Among the
big name companies in our Index, Coca Cola (-21%) suffered from the slump in
overseas markets. Similarly, Computer Associates International (-23%)
experienced a temporary slowdown in sales and earnings tied to the recession in
Asia. Among the smaller companies in the Index, the worst performers were
OneWorld Systems Inc. (-78%), which is undergoing restructuring and the Venator
Group Inc. (-66%), which is reporting lower earnings due to operational
difficulties.
We should note that stock market returns in the last few years have greatly
exceeded historical averages. Although many investors are becoming accustomed to
the perennial blossom of their personal investment accounts, this cannot
continue indefinitely. Indeed, we anticipate that future returns will be more in
line with historical averages. We also expect continued volatility.
As we believe last summer demonstrated, however, a volatile market environment
favors our strategy of passive investing for the long haul. Rather than becoming
involved in the prevailing sentiment of the day, we believe we stand to benefit
from our disciplined long-term approach to investing in socially responsible
companies, and that this strategy will continue to provide better returns than
those achieved by the market as a whole.
9
<PAGE>
[Richard Little Graphic]
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 at least 65% of the Fund in the common stock or preferred
stock of companies with an average market capitalization of $4 billion. The
Results: Total return for the six- and twelve-month periods ended 12/31/98 was
19.53% and 42.71%, respectively. The Russell 2000 Index ended the year with a
six-month return of -7.12% and a twelve-month total return of -2.55%.
The Citizens Emerging Growth Fund returned 19.53% and 42.71%, respectively, for
the six- and twelve-month periods ended 12/31/98, comparing very favorably with
two relevant benchmarks: the S&P 400 Mid-Cap Index was up 9.37% and 18.83%, and
the Russell 2000 Index decreased 7.12% and 2.55%, for the same periods. In 1998,
the Citizens Emerging Growth Fund outperformed 98% of all 327 equity funds
investing in mid-sized companies, according to Lipper, Inc., a well-known mutual
fund rating company.
Following a positive environment for equity markets in early 1998, the second
half of the year had its nail-biting moments. In August and September, as a
result of global market turmoil driven initially by Russia's credit problems,
stock prices plummeted. Indeed, the Citizens Emerging Growth Fund was down
12.08% in the third quarter as the Russell 2000 Index declined even more
precipitously (-20.06%). October 8, 1998 marked the lows for most U.S. equities.
Stocks then turned on a surprise interest rate decrease by the Federal Reserve,
as well as the dissolving fear of financial crisis and global recession.
We remained strong believers in our stocks through this period of uncertainty
and focused on holding companies with solid fundamentals. This was also a time
to add new positions to the Fund in companies we had been monitoring and whose
prices fell with the market downturn. Two of the strongest contributors at the
end of the second half were purchased in mid-October at fire sale prices.
Legato, a network storage management software company, rose 112% for the three
months ended 12/31/98, and Network Appliance, a network data storage device
manufacturer, produced a 130% return for the six months ended 12/31/98. Our top
ten performers for the last six months of the year were technology stocks in the
area of semi-conductors, storage equipment and software. America Online and
Intuit were also among the top contributors. In fact, because we were
10
<PAGE>
Managers' Comments -- Citizens Emerging Growth Fund
overweighted in the computers and software sectors, we were able to outperform
our benchmark, the Russell 2000 Index, by a wide margin. Overall, we were very
pleased with our results in the fourth quarter; the Fund returned 35.96%. For
comparison, the average return for mid-cap funds in the fourth quarter was
22.93%, according to Lipper, Inc.
Earnings visibility looks solid into the first quarter of 1999. Recent inquiries
with company managements show cautious optimism. We will remain vigilant
concerning the effects of the global economy and the Year 2000 transition on
corporate earnings prospects. Nimble, disciplined stock selection should
continue to outperform the market.
11
<PAGE>
[Lilia Clemente Graphic]
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: Can invest anywhere in the
world, providing it holds at least 50% non-U.S. companies and is invested in a
minimum of three countries. To reduce risk, the Fund cannot invest more than
25% in emerging markets. The Results: Total return for the six- and
twelve-month periods ended 12/31/98 was 10.72% and 32.26%, respectively. The
Financial Times World Index ended the year with a six-month return of 6.31% and
a twelve-month total return of 23.04%.
For the six-month period ended December 31, 1998, the Citizens Global Equity
Fund had a total return of 10.72%. In 1998, the Fund outperformed its benchmark,
the Financial Times World Index, posting a gain of 32.26% as compared to 23.04%
for the Index. The Fund also outperformed 95% of all global funds in 1998,
placing it 12th out of 224 global funds tracked by Lipper, Inc., a well-known
mutual fund rating company.
The first half of the year in the U.S. and Europe was characterized by favorable
economic conditions, and equities advanced relentlessly. Asian markets and
economies were relatively weak, by comparison. The banking crisis in Japan
remained worrisome, although widely regarded as a regional rather than global
problem.
Global capital markets stumbled in August when the Asian contagion reached
Russia and forced that country to devalue the ruble and subsequently restructure
its foreign debt. Few global markets were able to escape the shock waves
generated by the Russian crisis, largely because of forced liquidations by hedge
funds which held highly leveraged positions in Russian securities.
During the fourth quarter, the Federal Reserve intervened with three interest
rate cuts. European central banks followed, and global markets rallied. Although
the U.S. market quickly regained all of its losses, overseas markets remained
well below their summer highs.
In August, we felt the market declines were overdone, considering still solid
underlying economic fundamentals. We decided to stay the course and not make any
major changes in our strategy. We took the opportunity to add to some of our
favorite names in the Fund, such as Network Associates in the U.S., a global
leader in software virus security. The share price subsequently rallied 87% in
the fourth quarter of 1998. We also took advantage of the panic selling in
European
12
<PAGE>
[Sevgi Ipek Graphic]
Sevgi Ipek
A lead member of the Citizens Global Equity Fund management team since 1995.
Managers' Comments -- Citizens Global Equity Fund
markets to pick up a promising new stock in the U.K., COLT Telecom Group, an
alternative local telephone company operating in 11 European cities.
In the U.S., although we did not directly participate in the Internet stock
frenzy, we did benefit indirectly through large positions in Cisco Systems
(+150%) and Sun Microsystems (+115%). Other strong U.S. performers in 1998
included MCI WorldCom (+137%), Home Depot (+108%) and Airtouch Communications
(+74%).
In Europe, our biggest winners for the year were concentrated in
telecommunications and technology. Olivetti in Italy, a new entrant in the
recently deregulated telecommunications market, posted a gain in its share price
of more than 500%. Nokia, in Finland, turned in an outstanding performance
(+251%), benefiting from huge global demand for cellular telephony. Real
Software, a Belgian information technology company, also posted a spectacular
gain of 349% during the year.
Looking ahead, Japan's economy is still decelerating. Other Asian economies seem
to have stabilized but equity valuations are expensive relative to earnings
growth prospects. Nonetheless, we are finding select opportunities in this
region. In Latin America, which is experiencing slower economic growth and
possible shock waves from Brazil, we are currently focusing on the telecom
sector. Once again, the majority of our holdings will be concentrated in the
U.S. and Europe, where we continue to expect modest growth coupled with measures
to improve profitability and shareholder value.
In conclusion, a note of caution is in order. A number of serious risks plague
the global economy, and one consequence will be continued volatility.
Nonetheless, we promise you the same disciplined approach -- including both
financial and social screening of securities, careful risk management and
disciplined security selection that has served us so well in the past.
13
<PAGE>
Year 2000 Statement
At Citizens Funds, we take Y2K compliance very seriously and have endeavored to
focus the entire company on Y2K awareness and readiness. Our Y2K efforts to date
have included forming a Y2K committee and attendance at conferences and seminars
related to Y2K preparedness; preparation of a written Y2K Plan; adoption of Y2K
budgets for 1999 and 2000; preparation of a written contingency plan;
communications and coordination with transfer agent, custodian, sub-advisers,
vendors and other third parties with whom our systems interface; and reporting
to our Board of Trustees on Y2K preparedness.
Our Y2K Plan includes inventory and assessment of all internal and external
systems, both mission-critical and non mission-critical; training; internal
testing; point-to-point testing; correction and replacement of systems; vendor
and third party assessment and monitoring; contingency planning and
implementation. Included within this Y2K Plan is an assessment and monitoring of
the Y2K preparedness of all companies whose securities are recommended for
inclusion in our mutual fund portfolios. Vendor and third party assessment and
monitoring includes written requests for information and statements, periodic
reporting and regularly scheduled teleconferences.
As of this date, all of Citizens Funds' mission-critical computer hardware is
fully Year 2000 compliant as certified by the National Software Testing
Laboratories (NSTL) YMARK2000 program (www.nstl.com). Moreover, we designed our
internal software with Year 2000 compliance in mind. Our remaining software is
compliant to the extent of each software manufacturer's compliance.
With respect to all systems with external interfaces, the following calendar and
deadlines have been established: Assessment of all mission-critical systems was
completed by December 31, 1998 and all testing will be completed by June 30,
1999. With respect to non mission-critical systems, assessment will be completed
by March 31, 1999 and all testing will be completed by September 30, 1999.
Completion of the Y2K contingency plan, which covers mission-critical systems,
communication systems and physical facilities, is expected to take place on
March 31, 1999.
As a security measure, we recommend keeping all printed statements from all your
financial institutions from now into the 21st century. This will enable you to
compare records after January 1, 2000 to verify an accurate record of your
information.
14
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Working Assets Money Market Fund
<TABLE>
<CAPTION>
Par Amount Security Coupon/ Maturity Value (a)
($ Denominated) Description Yield Date (Note 1)
- ----------------- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit 0.31%
$ 100,000 City National Bank of New Jersey 4.880% 03/18/99 $ 100,000
100,000 Independence Federal Savings Bank 5.370% 03/31/99 100,000
100,000 Self Help Credit Union 4.500% 12/17/99 100,000
100,000 South Shore Bank of Chicago 4.650% 12/18/99 100,000
------------
Total Certificates of Deposit (Cost $400,000) 400,000
Corporate Notes 2.38%
1,000,000 Banc One Corporation 5.745% 05/17/99 999,767
2,000,000 Norwest Financial Incorporated 4.930% 09/15/99 2,023,101
------------
Total Corporate Notes (Cost $3,022,868) 3,022,868
Commercial Paper 66.29%
1,000,000 Abbey National North America 5.480% 02/04/99 994,824
2,904,000 Abbey National North America 5.180% 02/24/99 2,881,436
2,080,000 Air Products and Chemicals Incorporated 4.850% 06/30/99 2,029,560
3,332,000 American Express Credit Corporation 5.150% 02/05/99 3,315,317
2,950,000 American General Corporation 5.140% 02/18/99 2,929,783
1,274,000 Avnet Incorporated 5.180% 01/19/99 1,270,700
1,000,000 Banc One Corporation 5.430% 01/22/99 996,832
1,000,000 Bank of New York Corporation 5.320% 01/05/99 999,409
2,000,000 BellSouth Capital Funding Corporation 5.000% 03/12/99 1,980,555
3,975,000 BellSouth Capital Funding Corporation 4.800% 03/15/99 3,936,310
322,000 BellSouth Capital Funding Corporation 4.950% 03/16/99 318,724
2,141,000 Block Financial Corporation 5.170% 01/27/99 2,133,006
2,665,000 Block Financial Corporation 5.250% 01/29/99 2,654,118
1,434,000 Block Financial Corporation 5.120% 02/25/99 1,422,783
1,000,000 Campbell Soup Company 5.430% 02/10/99 993,967
1,009,000 Campbell Soup Company 4.980% 03/26/99 997,275
2,199,000 Campbell Soup Company 4.970% 03/29/99 2,172,588
1,731,000 Canadian Wheat Board 5.100% 02/08/99 1,721,681
1,578,000 Canadian Wheat Board 5.020% 02/19/99 1,567,218
2,900,000 Canadian Wheat Board 4.980% 02/26/99 2,877,535
1,510,000 Coca Cola Company 4.940% 03/25/99 1,492,802
1,860,000 Coca Cola Company 4.970% 03/29/99 1,837,660
1,050,000 Consolidated Natural Gas Company 5.150% 01/25/99 1,046,395
2,000,000 Cooperative Association of Tractor
Dealers Incorporated 5.550% 01/14/99 1,995,992
1,000,000 Cooperative Association of Tractor
Dealers Incorporated 5.350% 01/26/99 996,285
2,000,000 Cooperative Association of Tractor
Dealers Incorporated 5.250% 02/02/99 1,990,666
1,200,000 Cooperative Association of Tractor
Dealers Incorporated 5.300% 02/12/99 1,192,580
</TABLE>
See Accompanying Notes to Financial Statements
15
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Coupon/ Maturity Value (a)
($ Denominated) Description Yield Date (Note 1)
- ----------------- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (cont'd)
$ 839,000 Countrywide Home Loans Incorporated 5.100% 01/04/99 $ 838,643
5,458,000 Countrywide Home Loans Incorporated 5.500% 01/06/99 5,453,831
2,461,000 General Mills Incorporated 5.250% 01/05/99 2,459,564
1,903,000 General Mills Incorporated 5.080% 01/07/99 1,901,389
2,500,000 General Re Corporation 5.100% 01/27/99 2,490,792
1,428,000 Hasbro Incorporated 5.200% 01/04/99 1,427,381
3,182,000 H. J. Heinz Company 5.070% 01/26/99 3,170,797
2,135,000 J. C. Penney Funding Corporation 5.240% 01/29/99 2,126,299
3,185,000 Kellogg Company 5.000% 01/14/99 3,179,249
1,594,000 Kellogg Company 4.980% 03/11/99 1,578,785
1,500,000 The New York Times Company 5.150% 01/05/99 1,499,142
3,000,000 The New York Times Company 5.150% 01/08/99 2,996,996
2,484,000 Sears, Roebuck Acceptance Corporation 5.330% 01/13/99 2,479,587
2,055,000 Sears, Roebuck Acceptance Corporation 5.360% 01/13/99 2,051,328
2,000,000 Stanley Works 5.150% 01/19/99 1,994,850
------------
Total Commercial Paper (Cost $84,394,634) 84,394,634
U.S. Government Agencies 29.43%
Fannie Mae 16.49%
603,000 Fannie Mae 5.170% 02/26/99 598,151
1,500,000 Fannie Mae 5.170% 03/15/99 1,484,275
2,425,000 Fannie Mae 4.825% 04/02/99 2,395,423
2,140,000 Fannie Mae 4.850% 04/02/99 2,113,764
2,352,000 Fannie Mae 4.710% 04/07/99 2,322,459
4,820,000 Fannie Mae 4.900% 04/13/99 4,753,082
1,770,000 Fannie Mae 4.520% 04/23/99 1,745,110
3,000,000 Fannie Mae 4.840% 05/03/99 2,950,793
2,000,000 Fannie Mae 4.750% 05/06/99 1,967,014
679,000 Fannie Mae 4.750% 05/24/99 666,189
------------
20,996,260
Federal Farm Credit 4.93%
3,392,000 Federal Farm Credit Bank Discount Notes 4.790% 05/11/99 3,333,328
2,596,000 Federal Farm Credit Bank Discount Notes 4.810% 05/13/99 2,550,215
400,000 Federal Farm Credit Bank Discount Notes 4.900% 09/10/99 386,280
------------
6,269,823
Federal Home Loan Bank 2.52%
1,731,000 Federal Home Loan Bank 4.700% 02/10/99 1,721,960
1,500,000 Federal Home Loan Bank 4.675% 02/19/99 1,490,455
------------
3,212,415
</TABLE>
See Accompanying Notes to Financial Statements
16
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Coupon/ Maturity Value (a)
($ Denominated) Description Yield Date (Note 1)
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Freddie Mac 5.49%
$1,874,000 Freddie Mac 4.630% 02/23/99 $ 1,861,226
1,684,000 Freddie Mac 5.060% 02/24/99 1,671,218
3,500,000 Freddie Mac 4.910% 04/09/99 3,453,219
------------
6,985,663
------------
Total U.S. Government Agencies (Cost $37,464,161) 37,464,161
------------
Total Investments (Cost $125,281,663) 98.41% (b) $125,281,663
Other assets, less liabilities 1.59% 2,022,174
------------
Net Assets 100% $127,303,837
============
</TABLE>
(a) Investments are valued using the amortized cost method.
(b) Book cost and tax cost are equal.
See Accompanying Notes to Financial Statements
17
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Income Fund
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Bonds 58.30%
Commercial Services 5.78%
$1,000,000 CEX Holdings Incorporated 9.625% 6/01/08 $ 1,016,900
1,000,000 Primark Corporation 9.250% 2/15/08 1,000,000
900,000 United Rentals Incorporated 9.500% 6/01/08 909,000
600,000 United Rentals Incorporated 9.250% 1/15/09 604,500
------------
3,530,400
Construction & Housing 1.70%
1,000,000 Toll Corporation 8.750% 1/15/06 1,037,500
------------
1,037,500
Finance & Insurance 17.63%
680,000 Abbey National PLC 6.700% 6/29/49 666,624
1,320,000 Abbey National PLC 7.350% 0/29/49 1,334,546
100,000 Banc One Corporation 7.250% 8/15/04 109,046
250,000 Countrywide Capital 8.000% 2/15/26 258,505
500,000 Credit Suisse First Boston 7.900% 5/01/07 514,630
754,205 DLJ Mortgage Acceptance Corporation 6.614% 5/25/09 736,764
1,250,000 First Republic Bank of San Francisco 7.750% 9/15/12 1,231,138
750,000 First Union Lehman Brothers Mortgage Trust 6.650% 2/18/07 783,390
500,000 Keycorp Institutional Capital 7.826% 2/01/26 543,820
800,000 Lehman Brothers Incorporated 7.360% 2/15/03 828,232
700,000 Lehman Brothers Incorporated 8.050% 1/15/19 750,722
650,000 Lehman Brothers Incorporated 7.730% 0/15/23 634,251
50,000 MBIA Incorporated 9.000% 2/15/01 53,754
1,500,000 Morgan Stanley Capital Incorporated 6.550% 2/15/07 1,551,870
750,000 Williams Scotsman Incorporated 9.875% 6/01/07 779,063
------------
10,776,355
Food & Beverages 1.29%
750,000 Smith's Food & Drug Centers Incorporated 8.640% 7/02/12 790,778
------------
790,778
Health Care 4.29%
50,000 Kaiser Foundation Health Plan 9.000% 1/01/01 54,958
1,000,000 Physician Sales & Service Incorporated 8.500% 0/01/07 1,043,750
1,500,000 Universal Health Services Incorporated 8.750% 8/15/05 1,526,250
------------
2,624,958
</TABLE>
See Accompanying Notes to Financial Statements
18
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hotels 2.31%
$1,550,000 John Q. Hammons Hotels Incorporated 8.875% 02/15/04 $ 1,414,375
------------
1,414,375
Media 13.70%
1,000,000 Adelphia Communications Corporation 9.500% 02/15/04 1,060,000
1,300,000 Capstar Broadcasting Partners 9.250% 07/01/07 1,352,000
1,000,000 Chancellor Media Corporation 8.750% 06/15/07 1,020,000
500,000 IMAX Corporation 7.875% 12/01/05 503,750
500,000 Jones Intercable Incorporated 9.625% 03/15/02 536,875
750,000 Jones Intercable Incorporated 7.625% 04/15/08 785,625
500,000 Rogers Communications 9.125% 01/15/06 520,000
1,400,000 Time Warner Incorporated 9.125% 01/15/13 1,771,840
750,000 Turner Broadcasting 8.400% 02/01/24 821,715
------------
8,371,805
Real Estate 7.21%
1,000,000 Property Trust of America 6.875% 02/15/08 1,076,320
500,000 Security Capital Pacific Trust 7.900% 02/15/16 464,250
1,500,000 U.S. Home Corporation 7.950% 03/01/01 1,477,500
1,300,000 Weingarten Realty Investors 6.880% 06/25/27 1,386,905
------------
4,404,975
Telecommunications Equipment & Services 2.88%
1,200,000 MCI Worldcom Incorporated 9.375% 01/15/04 1,243,523
500,000 MCI Worldcom Incorporated 6.400% 08/15/05 518,455
------------
1,761,978
Transportation 1.51%
900,000 Federal Express Corporation 6.720% 01/15/22 921,420
------------
921,420
------------
Total Corporate Bonds Cost ($34,863,390) 35,634,544
</TABLE>
See Accompanying Notes to Financial Statements
19
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Number Security Value
of Shares Description (Note 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
Convertible Preferred Stock 5.48%
Commercial Services 0.56%
7,200 United Rentals Incorporated--
Callable into common stock $ 342,900
-----------
342,900
Computer Software 2.40%
15,000 Microsoft Corporation--Convertible into common
shares or exchangeable into subordinated notes 1,466,250
-----------
1,466,250
Real Estate 2.52%
10,000 Equity Office Properties Trust--
Callable into common stock 413,750
59,200 Felcor Lodging Trust Incorporated--
Callable into common stock 1,124,800
-----------
1,538,550
-----------
Total Convertible Preferred Stock (Cost $3,292,100) 3,347,700
Value
Number of Warrants (Note 1)
- --------------------------------------------------------------------------------
Warrants 0.04%
750 MVE Holding Incorporated 22,547
-----------
Total Warrants (Cost $0) 22,547
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------
U.S. Government Agencies 27.08%
Fannie Mae 23.23%
$ 600,000 Fannie Mae 5.830% 12/10/99 604,950
1,000,000 Fannie Mae 6.330% 10/02/02 1,020,350
2,000,000 Fannie Mae 6.140 03/24/03 2,017,780
4,000,000 Fannie Mae 6.000 05/15/08 4,231,520
12,350,000 Fannie Mae 0.000% 10/09/19 3,714,880
1,548,589 Fannie Mae--REMIC 8.000% 11/25/02 1,553,807
437,287 Fannie Mae--REMIC 8.000% 07/25/06 450,020
600,000 Fannie Mae--REMIC 7.000% 04/25/21 608,562
-----------
14,201,869
</TABLE>
See Accompanying Notes to Financial Statements
20
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Freddie Mac 1.82%
$1,000,000 Freddie Mac 5.375% 04/13/00 $ 1,010,000
101,732 Freddie Mac 8.750% 06/15/05 101,798
-----------
1,111,798
Government National Mortgage Association 2.03%
84,462 Government National Mortgage Association 7.000% 04/15/07 86,714
128,975 Government National Mortgage Association 6.000% 08/15/08 129,818
110,727 Government National Mortgage Association 9.000% 05/15/09 117,532
16,006 Government National Mortgage Association 9.000% 11/15/16 16,991
46,697 Government National Mortgage Association 9.000% 02/15/17 49,580
51,978 Government National Mortgage Association 9.500% 03/15/17 55,791
20,587 Government National Mortgage Association 9.500% 09/15/17 22,080
2,627 Government National Mortgage Association 9.000% 10/15/20 2,787
12,272 Government National Mortgage Association 9.000% 11/15/20 13,021
9,051 Government National Mortgage Association 8.500% 03/15/21 9,550
12,523 Government National Mortgage Association 9.000% 04/15/21 13,287
16,437 Government National Mortgage Association 8.500% 06/15/21 17,350
43,312 Government National Mortgage Association 8.000% 12/15/21 44,870
30,983 Government National Mortgage Association 7.000% 03/15/22 31,659
101,743 Government National Mortgage Association 8.000% 05/15/22 105,452
45,165 Government National Mortgage Association 8.000% 09/15/22 46,801
222,574 Government National Mortgage Association 7.000% 10/15/22 227,560
81,467 Government National Mortgage Association 7.000% 10/15/22 83,290
165,650 Government National Mortgage Association 7.000% 06/15/23 169,402
-----------
1,243,535
-----------
Total U.S. Government Agencies (Cost $15,946,010) 16,557,202
Short-Term Investments 7.84%
212,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 12/31/98 due
01/04/99 collateralized by $215,000 Federal
Home Loan Bank, 5.190% due 10/20/03
(Market Value of collateral is $217,186) 4.400% 01/04/99 212,000
1,200,000 FDX Corporation 5.800% 02/12/99 1,191,880
1,200,000 Fannie Mae Discount Notes 5.150% 01/05/99 1,199,313
2,200,000 Airtouch Communications Incorporated 5.850% 01/28/99 2,190,348
-----------
Total Short-Term Investments (Cost $4,793,541) 4,793,541
-----------
Total Investments (Cost $58,895,041) 98.74% (a) $60,355,534
-----------
Other assets, less liabilities 1.26% 768,910
-----------
Net Assets 100% $61,124,444
===========
</TABLE>
(a) Book cost and tax cost are equal.
See Accompanying Notes to Financial Statements
21
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
Equities 97.94%
Apparel & Textiles 0.20%
5,600 Interface Incorporated $ 51,975
7,200 Liz Claiborne Incorporated 227,250
5,900 Reebok International Limited 87,762(b)
3,900 Russell Corporation 79,219
1,900 Springs Industries Incorporated 78,731
5,300 Tommy Hilfiger Corporation 318,000(b)
6,300 The Warnaco Group Incorporated 159,075
------------
1,002,012
Auto Parts & Equipment 0.28%
2,000 Bandag Incorporated 79,875
8,400 Cooper Tire & Rubber Company 171,675
7,500 Federal-Mogul Corporation 446,250
20,400 Genuine Parts Company 682,125
------------
1,379,925
Chemicals 0.52%
25,400 Air Products & Chemicals Incorporated 1,016,000
15,750 Engelhard Corporation 307,125
7,600 Nalco Chemical Company 235,600
18,000 Praxair Incorporated 634,500
11,400 Sigma-Aldrich Corporation 334,875
3,000 Wellman Incorporated 30,562
------------
2,558,662
Commercial Services & Equipment 2.43%
5,933 ACNielsen Corporation 167,607(b)
96,843 Cendant Corporation 1,846,070(b)
9,200 Deluxe Corporation 336,375
7,700 DeVry Incorporated 235,812(b)
18,300 Dun & Bradstreet Corporation 577,594
10,900 H & R Block Incorporated 490,500
9,600 Herman Miller Incorporated 258,000
4,800 Knoll Incorporated 142,200(b)
12,100 Modis Professional Services Incorporated 175,450(b)
17,600 Paychex Incorporated 905,300
30,200 Pitney Bowes Incorporated 1,995,088
5,400 Sylvan Learning Systems Incorporated 164,700(b)
10,400 Viad Corporation 315,900
36,400 Xerox Corporation 4,295,200
------------
11,905,796
</TABLE>
See Accompanying Notes to Financial Statements
22
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Computers & Technology 24.46%
39,750 3Com Corporation $ 1,781,297(b)
12,000 Adaptec Incorporated 210,750(b)
7,300 Adobe Systems Incorporated 341,275
50,900 America Online Incorporated 8,144,000(b)
14,500 Apple Computer Incorporated 593,594(b)
23,175 Ascend Communications Incorporated 1,523,756(b)
4,800 Autodesk Incorporated 204,900
33,900 Automatic Data Processing 2,718,356
23,900 BMC Software Incorporated 1,065,044(b)
1,000 Broadcom Corporation 120,750(b)
24,600 Cadence Design Systems Incorporated 731,850(b)
6,000 Cambridge Technology Partners Incorporated 132,750(b)
175,325 Cisco Systems Incorporated 16,272,351(b)
188,385 Compaq Computer Corporation 7,900,396
59,812 Computer Associates International Incorporated 2,549,486
141,400 Dell Computer Corporation 10,348,712(b)
55,700 EMC Corporation 4,734,500(b)
50,300 First Data Corporation 1,593,881
17,700 Gateway 2000 Incorporated 906,019(b)
48,400 HBO & Company 1,388,475
115,200 Hewlett-Packard Company 7,869,600
2,900 IDX Systems Corporation 127,600(b)
17,400 IMS Health Incorporated 1,312,612(b)
4,500 Ingram Micro Incorporated 156,938(b)
11,300 J.D. Edwards & Company 320,637(b)
276,900 Microsoft Corporation 38,402,569(b)
14,874 Network Associates Incorporated 985,402(b)
39,600 Novell Incorporated 717,750(b)
10,000 OneWorld Systems Incorporated 1,406(b)
31,000 Parametric Technology Corporation 503,750(b)
25,700 Peoplesoft Incorporated 486,694(b)
2,900 Shared Medical Systems Corporation 144,638
9,600 Siebel Systems Incorporated 325,800(b)
21,100 Silicon Graphics Incorporated 271,663(b)
42,700 Sun Microsystems Incorporated 3,656,188(b)
7,400 Synopsys Incorporated 401,450(b)
5,200 Veritas Software Corporation 311,675(b)
7,900 Xilinx Incorporated 514,488(b)
------------
119,773,002
Construction & Housing 0.43%
4,100 Armstrong World Industries Incorporated 247,281
6,100 Centex Corporation 274,881
16,400 Clayton Homes Incorporated 226,525
3,500 Fleetwood Enterprises 121,625
</TABLE>
See Accompanying Notes to Financial Statements
23
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
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)
38,700 Masco Corporation $ 1,112,625
4,200 Pulte Corporation 116,813
-----------
2,099,750
Consumer Durables 0.26%
3,000 Ethan Allen Interiors Incorporated 123,000
1,755 Harman International Industries Incorporated 66,909
9,900 Maytag Corporation 616,275
8,100 Whirlpool Corporation 448,538
-----------
1,254,722
Consumer Products-Miscellaneous 0.36%
7,800 American Greetings Corporation 320,288
12,900 Avery Dennison Corporation 581,306
3,800 Jostens Incorporated 99,512
9,200 Moore Corporation Limited 101,200
300 Real Goods Trading Corporation 1,219(b)
17,100 Rubbermaid Incorporated 537,581
6,300 Tupperware Corporation 103,556
-----------
1,744,662
Electronics 6.24%
15,500 Advanced Micro Devices Incorporated 448,531(b)
10,800 Altera Corporation 657,450(b)
10,900 American Power Conversion 527,969(b)
24,700 AMP Incorporated 1,285,944
4,100 Avnet Incorporated 248,050(b)
3,900 C-Cube Microsystems Incorporated 105,787
185,100 Intel Corporation 21,945,919
9,700 KLA-Tencor Corporation 420,738(b)
15,200 LSI Logic Corporation 245,100
23,800 Micron Technology Incorporated 1,203,387(b)
4,700 Millipore Corporation 133,656
17,860 Molex Incorporated 680,912
5,500 Perkin-Elmer Corporation 536,594
13,100 Solectron Corporation 1,217,481
6,500 Symbol Technologies Incorporated 415,594
2,000 Tecumseh Products Company 93,250(b)
5,250 Tektronix Incorporated 157,828
5,500 Thomas & Betts Corporation 238,219
-----------
30,562,409
</TABLE>
See Accompanying Notes to Financial Statements
24
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Energy & Utilities 1.17%
19,200 AES Corporation $ 909,600(b)
8,500 American Water Works Incorporated 286,875
6,600 CalEnergy Company Incorporated 228,937(b)
10,600 Consolidated Natural Gas Company 572,400
17,000 Dynegy Incorporated 185,937
13,700 El Paso Energy Corporation 476,931
71,429 Energia Global International Limited 327,859(b)(c)
3,500 Idacorp Incorporated 126,656
8,400 MCN Energy Group Incorporated 160,125
5,200 NICOR Incorporated 219,700
3,100 ONEOK Incorporated 111,988
3,300 Peoples Energy Corporation 131,588
2,400 Philadelphia Suburban Corporation 70,950
11,800 Sonat Incorporated 319,338
4,000 United Water Resources Incorporated 95,750
40,000 Vulcan Power Company 0(b)(c)
47,700 The Williams Companies Incorporated 1,487,644
-----------
5,712,278
Finance & Insurance 15.98%
10,950 A.G. Edwards Incorporated 407,887
50,200 American Express Company 5,132,950
27,686 American General Corporation 2,159,508
19,000 AON Corporation 1,052,125
32,400 BankBoston Corporation 1,261,575
84,500 Bank of New York Company Incorporated 3,401,125
10,700 Bankers Trust Corporation 914,181
32,300 BB&T Corporation 1,302,094
914 Berkshire Hathaway Incorporated 2,146,725(b)
44,475 Charles Schwab Corporation 2,498,939
18,100 Charter One Financial Incorporated 502,275
18,100 Chubb Corporation 1,174,237
17,650 Comerica Incorporated 1,203,509
12,000 Countrywide Credit Industries Incorporated 602,250
6,100 E*Trade Group Incorporated 285,366(b)
115,100 Fannie Mae 8,517,400
75,400 Freddie Mac 4,858,587
6,200 Golden West Financial Corporation 568,462
23,320 Huntington Bancshares Incorporated 701,056
2,000 Investment Technology Group Incorporated 124,125(b)
11,550 Jefferson-Pilot Corporation 866,250
49,500 Keycorp 1,584,000
11,700 Marshall & Ilsley Corporation 683,719
10,600 MBIA Incorporated 694,962
</TABLE>
See Accompanying Notes to Financial Statements
25
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
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)
83,512 MBNA Corporation $ 2,082,582
29,300 Mellon Bank Corporation 2,014,375
16,900 Mercantile Bancorporation 779,513
12,600 MGIC Investment Corporation 501,638
36,900 National City Corporation 2,675,250
12,300 Northern Trust Corporation 1,073,944
33,400 PNC Bank Corporation 1,807,775
8,000 Progressive Corporation 1,355,000
15,600 Providian Financial Corporation 1,170,000
23,600 Regions Financial Corporation 951,375
10,000 ReliaStar Financial Corporation 461,250
16,200 Safeco Corporation 695,588
18,400 SLM Holding Corporation 883,200
25,844 St. Paul Companies 898,079
18,100 State Street Corporation 1,259,081
24,100 SunAmerica Incorporated 1,955,113
23,800 SunTrust Banks Incorporated 1,820,700
29,200 Synovus Financial Corporation 711,750
15,000 Unum Corporation 875,625
22,200 Wachovia Corporation 1,941,113
65,834 Washington Mutual Incorporated 2,514,036
179,600 Wells Fargo Company 7,172,775
------------
78,243,069
Food & Beverages 7.21%
4,200 Ben & Jerry's Homemade Incorporated 93,975(b)
31,700 Bestfoods 1,688,025
8,800 Bruno's Incorporated 6,738(b)
49,800 Campbell Soup Company 2,739,000
273,800 Coca-Cola Company 18,310,375
4,800 Earthgrains Company 148,500
800 Gardenburger Incorporated 9,200(b)
16,800 General Mills Incorporated 1,306,200
3,600 Great Atlantic & Pacific Tea Company 106,650
40,200 H.J. Heinz Company 2,276,325
4,500 Hannaford Brothers Company 238,500
15,500 Hershey Foods Corporation 963,906
3,100 The J.M. Smucker Company 76,725(b)
45,000 Kellogg Company 1,535,625
28,200 Kroger Company 1,706,100(b)
14,900 Quaker Oats Company 886,550
13,700 SUPERVALU INC 383,600
38,400 Sysco Corporation 1,053,600
4,136 Tootsie Roll Industries Incorporated 161,821
</TABLE>
See Accompanying Notes to Financial Statements
26
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
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)
11,500 Whitman Corporation $ 291,812
2,300 Whole Foods Market Incorporated 111,262(b)
13,100 Wm. Wrigley Jr. Company 1,173,269
1,021 Worthington Foods Incorporated 19,399
-----------
35,287,157
Forest Products & Paper 0.07%
2,700 Caraustar Industries Incorporated 77,119
9,400 Consolidated Papers Incorporated 258,500
-----------
335,619
Health Care & Personal Care 3.18%
28,800 Avon Products Incorporated 1,274,400
12,000 Biomet Incorporated 483,000
123,200 Gillette Company 5,952,100
17,000 Guidant Corporation 1,874,250
3,500 Idexx Laboratories Incorporated 94,172(b)
3,100 Invacare Corporation 74,400
54,500 Medtronic Incorporated 4,046,625
8,500 Oxford Health Plans Incorporated 126,438(b)
3,100 Sofamor Danek Group Incorporated 377,425(b)
9,200 St. Jude Medical Incorporated 254,725(b)
4,500 Trigon Healthcare Incorporated 167,906(b)
3,000 Universal Health Services Incorporated 155,625(b)
7,900 WellPoint Health Networks Incorporated 687,300(b)
-----------
15,568,366
Machines & Tools 0.41%
8,100 Case Corporation 176,681
27,900 Deere & Company 924,188
2,700 IDEX Corporation 66,150
3,800 Milacron Incorporated 73,150
1,500 Nordson Corporation 77,063
6,100 Snap-On Incorporated 212,356
3,397 SPX Corporation 227,599(b)
9,300 The Stanley Works 258,075
-----------
2,015,262
Media 5.07%
15,700 Chancellor Media Corporation 751,638(b)
29,300 Clear Channel Communications 1,596,850(b)
</TABLE>
See Accompanying Notes to Financial Statements
27
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------
<S> <C> <C>
Media (cont'd)
40,700 Comcast Corporation $ 2,388,581
28,400 Cox Communications Incorporated 1,963,150(b)
10,400 Dow Jones & Company, Incorporated 500,500
8,900 E. W. Scripps Company 442,775
7,500 King World Productions Incorporated 220,781(b)
10,800 McGraw-Hill Companies Incorporated 1,100,250
67,400 MediaOne Group Incorporated 3,167,800(b)
5,500 Meredith Corporation 208,312
20,000 The New York Times Company 693,750
136,300 Time Warner Incorporated 8,459,119
8,400 Times Mirror Company 470,400
38,600 Viacom Incorporated 2,856,400(b)
------------
24,820,306
Metal Fabricate/Hardware 0.06%
1,700 Commercial Metals Company 47,175
6,800 Timken Company 128,350
11,000 Worthington Industries 137,500
------------
313,025
Miscellaneous Manufacturing 0.44%
27,900 Illinois Tool Works Incorporated 1,618,200
4,200 National Service Industries Incorporated 159,600
4,800 Polaroid Corporation 89,700
8,600 Raychem Corporation 277,888
------------
2,145,388
Pharmaceuticals 3.12%
9,900 ALZA Corporation 517,275(b)
28,300 Amgen Incorporated 2,959,119(b)
10,450 Bergen Brunswig Corporation 364,444
7,700 Biogen Incorporated 639,100(b)
19,800 Chiron Corporation 518,512(b)
700 Cyanotech Corporation 744(b)
2,500 Human Genome Sciences Incorporated 88,906(b)
13,100 Mylan Laboratories Incorporated 412,650
3,000 Patterson Dental Company 130,500(b)
163,200 Schering-Plough Corporation 9,016,800
10,100 Watson Pharmaceuticals Incorporated 635,038(b)
------------
15,283,088
</TABLE>
See Accompanying Notes to Financial Statements
28
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Producer Goods 0.17%
9,500 Sealed Air Corporation $ 485,093(b)
12,001 Sonoco Products Company 355,530
-----------
840,623
Real Estate Investment & Management 0.14%
6,000 Choice Hotels International Incorporated 82,125(b)
10,700 Extended Stay America Incorporated 112,350(b)
9,500 Promus Hotel Corporation 307,563(b)
7,300 Rouse Company 200,750
-----------
702,788
Recreation & Entertainment 0.47%
8,000 Callaway Golf Company 82,000
17,400 Harley-Davidson Incorporated 824,325
15,100 Hasbro Incorporated 545,488
33,375 Mattel Incorporated 761,367
2,400 Sabre Group Holdings Incorporated 106,800(b)
-----------
2,319,980
Retail 7.33%
7,300 Barnes & Noble Incorporated 310,250(b)
4,200 BJ's Wholesale Club Incorporated 194,513(b)
11,800 Charming Shoppes 50,888(b)
23,800 Costco Companies Incorporated 1,718,062(b)
43,800 CVS Corporation 2,409,000
15,600 Darden Restaurants Incorporated 280,800
20,562 Dollar General Corporation 485,777
22,500 Federated Department Stores Incorporated 980,156(b)
2,800 Footstar Incorporated 70,000(b)
64,325 The Gap Incorporated 3,618,281
7,600 Harcourt General Incorporated 404,225
125,000 Home Depot Incorporated 7,648,437
14,700 ikon Office Solutions Incorporated 125,869
27,900 J.C. Penney Company Incorporated 1,307,812
18,000 Kohls Corporation 1,105,875(b)
25,300 The Limited Incorporated 736,862
3,600 Longs Drug Stores Corporation 135,000
40,100 Lowe's Companies 2,052,619
25,500 May Department Stores Company 1,539,563
17,000 Nordstrom Incorporated 589,687
28,700 Rite Aid Corporation 1,422,444
</TABLE>
See Accompanying Notes to Financial Statements
29
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- --------------------------------------------------------------------------
<S> <C> <C>
Retail (cont'd)
42,500 Sears, Roebuck & Company $ 1,806,250
34,400 Staples Incorporated 1,502,850(b)
9,600 Starbucks Corporation 538,800(b)
11,200 Tandy Corporation 461,300
35,900 The TJX Companies Incorporated 1,041,100
14,500 Venator Group Incorporated 93,344(b)
55,400 Walgreen Company 3,244,363
------------
35,874,127
Telecommunications Equipment & Services 17.39%
15,300 ADC Telecommunications Incorporated 531,675(b)
63,500 Airtouch Communications Incorporated 4,579,937(b)
30,600 Alltel Corporation 1,830,263
122,500 Ameritech Corporation 7,763,437
172,400 Bell Atlantic Corporation 9,137,200
217,200 BellSouth Corporation 10,832,850
146,000 Lucent Technologies Incorporated 16,060,000
203,600 MCI Worldcom Incorporated 14,608,300
31,900 Nextel Communications Incorporated 753,637(b)
7,400 Qualcomm Incorporated 383,413(b)
36,800 Qwest Communications International 1,840,000(b)
217,118 SBC Communications Incorporated 11,642,953
5,600 Skytel Communications Incorporated 123,900(b)
900 Teligent Incorporated 25,875(b)
21,200 Tellabs Incorporated 1,453,525(b)
55,837 US WEST Incorporated 3,608,466
------------
85,175,431
Transportation 0.55%
16,380 FDX Corporation 1,457,820(b)
38,325 Southwest Airlines 859,917
6,500 UAL Corporation 387,969(b)
------------
2,705,706
-------------
Total Equities (Cost $259,801,621) 479,623,153
</TABLE>
See Accompanying Notes to Financial Statements
30
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Coupon Date (Note 1)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short Term Investments 0.76%
3,683,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 12/31/98 due
01/04/99 collateralized by $3,720,000 Federal
Home Loan Bank, 5.190% due 10/20/03
(Market Value of collateral is $3,757,825)
(Cost $3,683,000)
4.400% 01/04/99 $ 3,683,000
------------
Total Investments (Cost $263,484,621) 98.70% (a) $483,306,153
Other assets, less liabilities 1.30% 6,387,237
------------
Net Assets 100% $489,693,390
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
(c) On December 31, 1998, the Fund owned the following restricted securities
constituting 0.07% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are valued
at fair value as determined by the 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. April 1, 1993 $250,000 $327,859
Vulcan Power Company, Class A June 1, 1993 $300,000 $ 0
</TABLE>
See Accompanying Notes to Financial Statements
31
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Emerging Growth Fund
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ---------------------------------------------------------------------------------
<S> <C> <C>
Equities 96.03%
Building Materials 2.11%
215,300 Dal-Tile International Incorporated $ 2,233,738(b)
-----------
2,233,738
Commercial Services 1.15%
48,510 Administaff Incorporated 1,212,750(b)
-----------
1,212,750
Computers & Software 32.92%
55,000 Ascend Communications Incorporated 3,616,250(b)
20,000 Broadcom Corporation 2,415,000(b)
16,600 Citrix Systems Incorporated 1,611,237(b)
69,200 Computer Horizons Corporation 1,842,450(b)
51,030 Compuware Corporation 3,986,719(b)
53,890 Documentum Incorporated 2,879,747(b)
45,000 International Network Services 2,992,500(b)
40,000 Intuit Incorporated 2,900,000(b)
53,400 Legato Systems Incorporated 3,521,062(b)
23,100 Lexmark International Group Incorporated 2,321,550(b)
100,000 Platinum Technology International Incorporated 1,912,500(b)
44,630 Veritas Software Corporation 2,675,011(b)
58,000 Visio Corporation 2,120,625(b)
-----------
34,794,651
Electronics 9.91%
50,000 Advanced Micro Devices Incorporated 1,446,875(b)
62,700 Altera Corporation 3,816,862(b)
61,900 Micron Electronics Incorporated 1,071,644(b)
43,590 Micron Technology Incorporated 2,204,019(b)
30,620 PMC--Sierra Incorporated 1,932,888(b)
-----------
10,472,288
Finance & Insurance 15.33%
59,650 AmSouth Bancorporation 2,721,531
90,670 Annuity & Life Re (Holdings), Limited 2,448,090(b)
49,615 Comerica Incorporated 3,383,123
50,000 E*Trade Group Incorporated 2,433,123(b)
33,700 Northern Trust Corporation 2,942,431
30,240 Providian Financial Corporation 2,268,000
-----------
16,196,298
</TABLE>
See Accompanying Notes to Financial Statements
32
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Emerging Growth Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
Food & Beverages 1.99%
83,070 Whitman Corporation $ 2,107,901
------------
2,107,901
Health Care 4.74%
30,000 Biogen Incorporated 2,461,251(b)
111,000 PSS World Medical Incorporated 2,553,000(b)
------------
5,014,251
Media 3.02%
66,650 Chancellor Media Corporation 3,190,869(b)
------------
3,190,869
Office Equipment & Services 2.77%
109,050 Herman Miller Incorporated 2,930,719
------------
2,930,719
Pharmaceuticals 13.60%
55,700 Alpharma Incorporated 1,966,906
32,230 McKesson HBOC Incorporated 2,548,184
32,400 MedImmune Incorporated 3,221,775(b)
115,640 Mylan Laboratories Incorporated 3,642,660
86,010 Omnicare Incorporated 2,988,848
------------
14,368,373
Retail 5.30%
68,180 Staples Incorporated 2,978,614(b)
90,350 The TJX Companies Incorporated 2,620,150
------------
5,598,764
Telecommunications Equipment & Services 3.19%
64,370 Crown Castle International Corporation 1,512,695(b)
40,000 RF Micro Devices Incorporated 1,855,000(b)
------------
3,367,695
------------
Total Equities (Cost $79,238,517) 101,488,297
</TABLE>
See Accompanying Notes to Financial Statements
33
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Emerging Growth Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ------------------------------------------------ ----------------------------------------------
<S> <C> <C> <C>
Short Term Investments 8.18%
8,647,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 12/31/98 due
01/04/99 collateralized by $8,735,000 Federal
Home Loan Bank, 5.190% due 10/20/03
(Market Value of collateral is $8,823,818)
(Cost $8,647,000) 4.400% 01/04/99 $ 8,647,000
------------
Total Investments (Cost $87,885,517) 104.21% (a) $110,135,297
Liabilities in excess of other assets (4.21%) (4,453,140)
------------
Net Assets 100% $105,682,157
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
See Accompanying Notes to Financial Statements
34
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Global Equity Fund
<TABLE>
<CAPTION>
Number of Share Security Value
(% of net asset Description (Note 1)
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Equities 93.05%
Belgium 1.83%
16,800 Real Software (Computers & Software) $ 1,051,444(b)
-----------
1,051,444
Brazil 0.64%
2,700,000 Telesp Tel Sao Paulo (Preferred)
(Telecommunications Equipment & Services) 368,061(b)
-----------
368,061
Finland 5.61%
19,400 Nokia Corporation (ADR)
(Telecommunications Equipment & Services) 2,336,488(b)
50,000 Sonera Group OYJ (Telecommunications Equipment & Services) 888,750(b)
-----------
3,225,238
France 3.81%
4,000 Canal Plus (Media) 1,092,014
7,000 Omnicom (Telecommunications Equipment & Services) 774,435(b)
3,000 Transiciel S.A. (Computers & Software) 325,993(b)
-----------
2,192,442
Germany 2.84%
1,852 Allianz AG (Finance & Insurance) 679,409
2,000 SAP AG (Computers & Software) 954,894
-----------
1,634,303
Greece 1.31%
28,000 Panafon Hellenic Telecom Company
(Telecommunications Equipment & Services) 749,888(b)
-----------
749,888
Ireland 2.82%
47,343 Bank of Ireland (Finance & Insurance) 1,055,288
60,000 Irish Life PLC (Finance & Insurance) 565,385(b)
-----------
1,620,673
</TABLE>
See Accompanying Notes to Financial Statements
35
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Italy 8.91%
20,000 Assicurazioni Generali (Finance & Insurance) $ 836,925
200,000 INA (Istitut Naz Assicur) (Finance & Insurance) 529,446
40,000 Istituto Bancario San Paolo di Torino--IMI SpA
(Finance & Insurance) 708,354
480,000 Olivetti SpA (Telecommunications Equipment & Services) 1,673,851(b)
148,333 Telecom Italia SpA (Telecommunications Equipment & Services) 1,268,424
200,000 Unione Immobiliare (Real Estate) 104,555(b)
----------
5,121,555
Japan 6.13%
16,000 Canon Incorporated (Office/Business Equipment) 342,563
18,000 Fuji Photo Film Company (Miscellaneous Manufacturing) 670,233
6,000 Ito-Yokado Company Limited (Retail) 420,225
11,800 Nippon Telegraph & Telephone Corporation (ADR)
(Telecommunications Equipment & Services) 442,500(b)
10,000 Takefuji Corporation (Finance & Insurance) 731,405
10,000 TDK Corporation (Computers & Software) 915,808
----------
3,522,734
Mexico 0.47%
112,000 Grupo Continental S.A. (Food & Beverages) 271,231(b)
----------
271,231
Netherlands 3.59%
8,065 Aegon NV (Finance & Insurance) 991,006
5,000 Wolters Kluwer NV (Media) 1,070,514(b)
----------
2,061,520
Portugal 1.80%
25,000 Banco Pinto & Sotto Mayor (Finance & Insurance) 474,003
2,750 Telecel Comunicacoes Pessoais S.A.
(Telecommunications Equipment & Services) 562,155(b)
----------
1,036,158
Spain 3.25%
780 Banco Santander S.A. (Finance & Insurance) 15,524
40,000 Superdiplo S.A. (Food & Beverages) 1,127,804(b)
16,000 Telefonica S.A. (Bonus Rights)
(Telecommunications Equipment & Services) 14,341(b)
16,000 Telefonica S.A. (Telecommunications Equipment & Services) 712,535
-----------
1,870,204
</TABLE>
See Accompanying Notes to Financial Statements
36
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Security Value
(% of net assets) Description (Note 1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Sweden 2.18%
27,000 Ericsson (LM) Telefonaktiebolaget
(Telecommunications Equipment & Services) $ 642,893
15,000 NetCom AB (Telecommunications Equipment & Services) 610,693(b)
-----------
1,253,586
Switzerland 5.26%
3,200 Credit Suisse Group (Finance & Insurance) 500,917(b)
20,000 Swisscom AG (ADR) (Telecommunications Equipment & Services) 851,250(b)
2,550 UBS AG (Finance & Insurance) 783,483(b)
1,200 Zurich Allied AG (Finance & Insurance) 888,545(b)
-----------
3,024,195
United Kingdom 11.55%
130,000 BG PLC (Energy & Utilities) 837,057
60,000 COLT Telecom Group PLC
(Telecommunications Equipment & Services) 908,434(b)
26,000 Glaxo Wellcome PLC (Pharmaceuticals) 896,322
62,500 Misys PLC (Computers & Software) 459,625
120,000 Orange PLC (Telecommunications Equipment & Services) 1,377,627(b)
56,000 Royal Bank of Scotland Group (Finance & Insurance) 916,820
76,215 Vodafone Group PLC (Telecommunications Equipment & Services) 1,240,167
-----------
6,636,052
United States 31.05%
12,600 Air Products & Chemicals Incorporated (Chemicals) 504,000
28,000 Airtouch Communications Incorporated
(Telecommunications Equipment & Services) 2,019,500(b)
32,000 Bank of New York Company Incorporated (Finance & Insurance) 1,288,000
23,175 Cisco Systems Incorporated (Computers & Software) 2,150,930(b)
31,500 Home Depot Incorporated (Retail) 1,927,406
10,000 Illinois Tool Works Incorporated (Miscellaneous Manufacturing) 580,000
12,000 Intel Corporation (Computers & Software) 1,422,750
18,000 Linens 'N Things Incorporated (Retail) 713,250(b)
25,000 MCI Worldcom Incorporated (Telecommunications Equipment &
Services) 1,793,750(b)
24,000 Networks Associates Incorporated (Computers & Software) 1,590,000(b)
15,300 O'Reilly Automotive Incorporated (Retail) 722,925(b)
14,800 Sun Microsystems Incorporated (Computers & Software) 1,267,250(b)
20,000 SunGard Data Systems Incorporated (Computers & Software) 793,750(b)
14,000 SunTrust Banks Incorporated (Finance & Insurance) 1,071,000
-----------
17,844,511
-----------
Total Equities (Cost $34,878,291) 53,483,795
</TABLE>
See Accompanying Notes to Financial Statements
37
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Security Maturity Value
($ Denominated) Description Coupon Date (Note 1)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short Term Investments 8.48%
4,878,000 Repurchase Agreement with State Street
Bank & Trust Co. Dated 12/31/98 due
01/04/99 collateralized by $4,930,000 Federal
Home Loan Bank, 5.190% due 10/20/03
(Market Value of collateral is $4,980,128)
(Cost $4,878,000) 4.400% 01/04/99 $ 4,878,000
------------
Total Investments (Cost $39,756,291) 101.53% (a) $58,361,795
Liabilities in excess of other assets (1.53%) (881,210)
------------
Net Assets 100% $57,480,585
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
Abreviations:
ADR--American Depository Receipt
See Accompanying Notes to Financial Statements
38
<PAGE>
Statement of Investments -- December 31, 1998 (unaudited)
Citizens Global Equity Fund (cont'd)
The Fund's Portfolio of Investments as of December 31, 1998, was concentrated in
the following industries:
<TABLE>
<CAPTION>
Percentage of Net Assets*
--------------------------------
Short-term
Equity & Other Total
------ ---------- -----
<S> <C> <C> <C>
Chemicals 0.9% 0.9%
Computers & Software 19.0% 19.0%
Energy & Utilities 1.5% 1.5%
Finance & Insurance 20.8% 20.8%
Food & Beverages 2.4% 2.4%
Media 3.8% 3.8%
Miscellaneous Manufacturing 2.2% 2.2%
Office/Business Equipment 0.6% 0.6%
Pharmaceuticals 1.6% 1.6%
Real Estate 0.2% 0.2%
Retail 6.6% 6.6%
Telecommunications Equipment & Services 33.4% 33.4%
Cash & Other 7.0% 7.0%
----- --- -----
93.0% 7.0% 100.0%
</TABLE>
*Percentages are based on net assets of $57,480,585
See Accompanying Notes to Financial Statements
39
<PAGE>
Statement of Assets and Liabilities -- December 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Working Assets Citizens
Money Market Income
Fund Fund
-------------- ------------
<S> <C> <C>
ASSETS
Investments (see accompanying schedule):
Investments at cost $125,281,663 $ 58,683,041
Repurchase Agreements -- 212,000
Net unrealized appreciation -- 1,460,493
------------ ------------
Total investments at value 125,281,663 60,355,534
Cash 1,790,002 291
Foreign Currencies (cost $0, $0, $0, $0, $11) -- --
Receivable for:
Interest 76,358 890,596
Dividends and withholding tax reclaims -- 41,114
Fund shares sold 843,176 104,732
Investment securities sold -- --
Due from Investment Adviser 2,105 --
Unamortized organizational costs 20,725 21,111
------------ ------------
Total Assets 128,014,029 61,413,378
------------ ------------
LIABILITIES
Payables:
Investment securities purchased -- --
Fund shares repurchased 486,133 75,030
Distributions payable -- 45,038
Payable for investment management fees 110,069 95,689
Payable for administrative and shareholder
service fees 28,985 18,287
Payable for distribution expenses 18,217 8,814
Payable for trustees' fees and expenses 6,117 6,117
Other accrued expenses 60,671 39,959
------------ ------------
Total Liabilities 710,192 288,934
------------ ------------
NET ASSETS $127,303,837 $ 61,124,444
============ ============
Standard Shares
Net assets $105,240,608 $ 61,124,444
Shares outstanding 105,367,384 5,589,752
Net asset value, offering and redemption price
per share $ 1.00 $ 10.94
------------ ------------
Institutional Shares
Net assets $ 22,063,229
Shares outstanding 22,063,849
Net asset value, offering and redemption price
per share $ 1.00
------------
Net assets consist of:
Paid-in capital $127,308,011 $ 59,694,523
Accumulated net investment income/(loss) (4,174) (1,459)
Accumulated net realized gain/(loss) on
investments and foreign currency transactions -- (29,113)
Net unrealized appreciation of investments
and foreign currencies -- 1,460,493
------------ ------------
$127,303,837 $ 61,124,444
============ ============
</TABLE>
See Accompanying Notes to Financial Statements
40
<PAGE>
Statement of Assets and Liabilities -- December 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Citizens Citizens Citizens
Index Emerging Growth Global Equity
Fund Fund Fund
- ------------ --------------- -------------
<S> <C> <C>
$259,801,621 $ 79,238,517 $ 34,878,291
3,683,000 8,647,000 4,878,000
219,821,532 22,249,780 18,605,504
- ------------ ------------- ------------
483,306,153 110,135,297 58,361,795
1,479,622 320 857
-- -- 11
450 1,057 579
271,362 53,245 100,160
9,677,315 1,146,757 186,885
11,561,251 -- --
-- -- --
26,429 355 512
- ------------ ------------- ------------
506,322,582 111,337,031 58,650,799
- ------------ ------------- ------------
14,353,295 4,894,374 --
1,452,667 432,724 996,159
-- -- --
512,738 220,334 128,137
187,402 34,085 12,993
92,845 22,122 12,432
6,117 6,117 6,117
24,128 45,118 14,376
- ------------ ------------- ------------
16,629,192 5,654,874 1,170,214
- ------------ ------------- ------------
$489,693,390 $ 105,682,157 $ 57,480,585
============ ============= ============
$439,079,133 $ 105,682,157 $ 57,480,585
16,119,919 5,527,697 3,141,511
$ 27.24 $ 19.12 $ 18.30
- ------------ ------------- ------------
$ 50,614,257
2,274,918
$ 22.25
- ------------
$265,318,136 $ 75,810,965 $ 40,079,015
(897,537) (530,486) (218,521)
5,451,259 8,151,898 (986,947)
219,821,532 22,249,780 18,607,038
- ------------ ------------- ------------
$489,693,390 $ 105,682,157 $ 57,480,585
============ ============= ============
</TABLE>
See Accompanying Notes to Financial Statements
41
<PAGE>
Statement of Operations -- Six Months Ending December 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Working Assets Citizens
Money Market Income
Fund Fund
-------------- --------
<S> <C> <C>
Investment Income
Interest $3,386,209 $1,895,826
Dividends -- 76,299
---------- ----------
Total investment income 3,386,209 1,972,125
---------- ----------
Expenses
Investment management fees 218,268 184,075
Transfer agent fees 119,662 41,645
Custody and accounting fees 37,110 21,424
Distribution expense 105,137 70,798
Administrative and shareholder service fees 147,836 54,810
Legal and audit fees 12,558 7,006
Registration fees 21,253 8,154
Trustees' fees and expenses 11,309 11,309
Printing and postage 10,462 4,112
Dues and insurance 7,672 2,879
Other expenses 16,077 12,979
Amortization of organization costs 3,867 --
---------- ----------
Total expenses 711,211 419,191
---------- ----------
Reimbursement by Adviser (2,105) --
---------- ----------
Net expenses 709,106 419,191
---------- ----------
Net investment income/(loss) $2,677,103 $1,552,934
---------- ----------
Realized and Unrealized Gain/(Loss) on Investments
Realized gain/(loss) on investments -- 102,916
Realized gain/(loss) on foreign currency
transactions -- --
Increase/(decrease) in unrealized appreciation
or depreciation on investments and written
options -- (480,726)
Increase in unrealized depreciation on foreign
currencies -- --
---------- ----------
Net realized and unrealized gain/(loss) on
investments and foreign currencies -- (377,810)
---------- ----------
Net increase in net assets resulting from
operations $2,677,103 $1,175,124
========== ==========
</TABLE>
See Accompanying Notes to Financial Statements
42
<PAGE>
Statement of Operations -- Six Months Ending December 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Citizens Citizens Citizens
Index Emerging Growth Global Equity
Fund Fund Fund
- ------------ --------------- -------------
<S> <C> <C>
$ 75,355 $ 146,001 $ 138,186
1,898,877 129,122 145,752
----------- ----------- ----------
1,974,232 275,123 283,938
----------- ----------- ----------
978,236 431,006 256,812
186,185 86,343 56,022
61,371 23,252 31,961
444,145 107,752 64,203
1,055,033 105,749 53,447
33,273 10,011 6,787
20,400 9,831 9,027
11,309 11,309 11,309
18,702 9,061 4,323
17,890 4,654 2,254
37,607 4,954 3,898
7,618 1,687 2,416
----------- ----------- ----------
2,871,769 805,609 502,459
----------- ----------- ----------
-- -- --
----------- ----------- ----------
2,871,769 805,609 502,459
----------- ----------- ----------
$ (897,537) $ (530,486) $ (218,521)
----------- ----------- ----------
6,707,998 9,557,679 (1,060,244)
-- -- 72,919
64,161,123 8,214,780 6,591,065
-- -- 3,600
----------- ----------- ----------
70,869,121 17,772,459 5,607,340
----------- ----------- ----------
$69,971,584 $17,241,973 $5,388,819
=========== =========== ==========
</TABLE>
See Accompanying Notes to Financial Statements
43
<PAGE>
Statement of Changes in Net Assets -- December 31, 1998
<TABLE>
<CAPTION>
Working Assets Citizens
Money Market Fund Income Fund
------------------------------------ ----------------------------------
For the For the For the For the
six months ended year ended six months ended year ended
December 31, 1998 June 30, 1998 December 31, 1998 June 30, 1998
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment
income/loss $ 2,677,103 $ 5,124,725 $ 1,552,934 $ 2,478,119
Realized gain/(loss) on
investments and foreign
currencies -- -- 102,916 323,133
Net change in unrealized
appreciation/
(depreciation) of
investments and foreign
currencies -- -- (480,726) 1,575,754
------------ ------------ ------------ -----------
Net increase in net
assets resulting
from operations 2,677,103 5,124,725 1,175,124 4,377,006
Distributions to shareholders:
From net investment
income--Standard (2,223,719) (4,215,864) (1,527,032) (2,459,515)
In excess of net
investment
income--Standard -- -- -- (7,360)
From net realized gain on
investments-Standard -- -- (130,171) (74,371)
From net investment
income-Institutional (457,558) (908,861) N/A N/A
From net realized gain
on investments--
Institutional -- -- N/A N/A
------------ ------------ ------------ ------------
Total distributions (2,681,277) (5,124,725) (1,657,203) (2,541,246)
Increase in net assets
resulting from capital
share transactions 5,532,426 19,092,288 10,240,914 16,299,679
------------ ------------ ------------ ------------
Total increase in net assets 5,528,252 19,092,288 9,758,835 18,135,439
Net Assets
Beginning of year 121,775,585 102,683,297 51,365,609 33,230,170
------------ ------------ ------------ ------------
End of year $127,303,837 $121,775,585 $ 61,124,444 $51,365,609
------------ ------------ ------------ ------------
Undistributed net investment
income/(accumulated net
investment loss) $ (4,174) -- $ (1,459) $ (27,361)
------------ ------------ ------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements
44
<PAGE>
Statement of Changes in Net Assets -- December 31, 1998
<TABLE>
<CAPTION>
Citizens Citizens Citizens
Index Fund Emerging Growth Fund Global Equity Fund
- ----------------------------------- --------------------------------- ---------------------------------
For the For the For the For the For the For the
six months ended year ended six months ended year ended six months ended year ended
December 31, 1998 June 30, 1998 December 31, 1998 June 30, 1998 December 31, 1998 June 30, 1998
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
$ (897,537) $ (1,048,707) $ (530,486) (1,019,042) $ (218,521) $ (284,507)
6,707,998 10,984,389 9,557,679 14,909,699 (987,325) 2,742,609
64,161,123 79,818,754 8,214,780 7,492,711 6,594,665 5,267,033
------------ ------------ ------------ ----------- ------------ ------------
69,971,584 89,754,436 17,241,973 21,383,368 5,388,819 7,725,135
-- (34,132) -- -- -- --
-- -- -- -- -- --
(4,955,539) (11,994,100) (9,016,409) (4,557,534) (1,452,521) (1,327,372)
-- (79,294) N/A N/A N/A N/A
(606,104) (996,483) N/A N/A N/A N/A
------------ ------------ ------------ ----------- ------------ ------------
(5,561,643) (13,104,009) (9,016,409) (4,557,534) (1,452,521) (1,327,372)
52,214,649 72,301,740 9,565,035 10,724,793 4,498,957 13,074,611
------------ ------------ ------------ ----------- ------------ ------------
116,624,590 148,952,167 17,790,599 27,550,627 8,435,255 19,472,374
373,068,800 224,116,633 87,891,558 60,340,931 49,045,330 29,572,956
------------ ------------ ------------ ----------- ------------ ------------
$489,693,390 373,068,800 $105,682,157 87,891,558 $ 57,480,585 $ 49,045,330
------------ ------------ ------------ ----------- ------------ ------------
$ (897,537) -- $ (530,486) -- $ (218,521) --
------------ ------------ ------------ ----------- ------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements
45
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Working Assets Money Market Fund -- Standard Shares
---------------------------------------------------------------------------
For the For the For the For the For the For the
six months year year year year year
ended ended ended ended ended ended
12/31/1998 06/30/1998 06/30/1997 06/30/1996 06/30/1995 06/30/1994
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- ------- --------
Income from investment
operations
Net investment income 0.021 0.045 0.042 0.045 0.044 0.023
Less distributions
from net investment
income ( 0.021) ( 0.045) ( 0.042) ( 0.045) ( 0.044) (0.23)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= =======
Total return 2.15%* 4.54% 4.30% 4.60% 4.51% 2.35%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $105,241 $103,597 $85,179 $78,326 $97,611 $103,766
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.21%** 1.23% 1.39% 1.21% 1.16% 1.16%
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.21%** 1.21% 1.25% 1.18% 1.16% 1.16%
Ratio of net income to
average net assets 4.22%** 4.46% 4.23% 4.56% 4.39% 2.31%
</TABLE>
*Not Annualized
**Annualized
See Accompanying Notes to Financial Statements
46
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Working Assets Money Market Fund -- Institutional Class Shares***
-----------------------------------------------------------------
For the For the For the From
six months year year 02/01/1996
ended ended ended to
12/31/1998 06/30/1998 06/30/1997 06/30/1996
(unaudited)
<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 0.024 0.051 0.049 0.021
Less distributions
from net investment
income (0.024) (0.051) (0.049) (0.021)
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total return 2.38%* 5.23% 5.01% 2.09%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $22,063 $18,178 $17,504 $14,539
Ratio of expenses to
average net assets prior
to reimbursement and/or
fee waivers 0.76%** 0.56% 0.60% 0.47%**
Ratio of expenses to
average net assets net of
reimbursement and/or
fee waivers 0.76%** 0.56% 0.60% 0.47%**
Ratio of net income to
average net assets 4.67%** 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
47
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Citizens Income Fund
---------------------------------------------------------------------------
For the For the For the For the For the For the
six months year year year year year
ended ended ended ended ended ended
12/31/1998 06/30/1998 06/30/1997 06/30/1996 06/30/1995 06/30/1994
(unaudited)
<S> <C> <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 $ 10.60
------- ------- ------- ------- ------- -------
Income/(loss) from
investment operations
Net investment income/
(loss) 0.30 0.60 0.67 0.66 0.65 0.55
Net gain/(loss) on
securities (both
realized and
unrealized) ( 0.07) 0.49 0.28 (0.10) 0.36 (0.54)
-------- ------- ------- ------- ------- -------
Total from investment
operations 0.23 1.09 0.95 0.56 1.01 0.01
Less distributions
from net investment
income (0.30) (0.60) (0.67) (0.66) (0.65) (0.55)
from net realized gains (0.02) (0.02) -- -- (0.02) (0.02)
-------- ------- ------- ------- ------- -------
Total distributions (0.32) (0.62) (0.67) (0.66) (0.67) (0.57)
Net asset value, end of
period $ 10.94 $ 11.03 $ 10.56 $ 10.28 $ 10.38 $ 10.04
======= ======= ======= ======= ======= =======
Total return 2.08%* 10.49% 9.57% 5.48% 10.45% 0.04%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $61,124 $51,366 $33,230 $32,276 $30,122 $24,410
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waiver 1.48%** 1.86% 1.47% 1.48% 1.48% 2.01%
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.48%** 1.74% 1.41% 1.38% 1.35% 1.25%
Ratio of net income/(loss)
to average net assets 5.48%** 5.55% 6.44% 6.26% 6.47% 5.43%
Portfolio turnover rate 27.64% 80.14% 64.56% 41.36% 46.03% 52.62%
</TABLE>
*Not Annualized
**Annualized
See Accompanying Notes to Financial Statements
48
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Citizens Index Fund -- Standard Shares***
------------------------------------------------------------------
For the For the For the For the From
six months year year year 03/03/1995
ended ended ended ended to
12/31/1998 06/30/1998 06/30/1997 06/30/1996 06/30/1995
(unaudited)
<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) (0.06) (0.07) -- 0.08 0.01
Net gain/(loss) on securities
(both realized and
unrealized) 4.15 6.44 4.78 2.47 0.93
--------- -------- ------- ------- --------
Total from investment
operations 4.09 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 $ 27.24 $ 23.46 $ 18.04 $ 13.41 $ 10.94
======== ======== ======== ======== ========
Total return 17.44%* 36.50% 35.88% 23.41% 9.40%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $439,079 $341,395 $211,116 $136,980 $106,096
Ratio of expenses to average net
assets prior to reimbursement
and/or fee waivers 1.55%** 1.59% 1.59% 1.82% 1.75%**
Ratio of expenses to average net
assets net of reimbursement
and/or fee waivers 1.55%** 1.59% 1.59% 1.79% 1.75%**
Ratio of net income/(loss) to
average net assets (0.54%)** (0.39%) 0.02% 0.68% 0.98%**
Portfolio turnover rate 7.11% 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
49
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Citizens Index Fund -- Institutional Class Shares***
----------------------------------------------------------
For the For the For the From
six months year year 01/25/1996
ended ended ended to
12/31/1998 06/30/1998 06/30/1997 06/30/1996
(unaudited)
<S> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 19.13 $ 14.84 $ 11.00 $10.00
------- ------- ------- ------
Income/(loss) from investment
operations
Net investment income 0.02 0.11 0.08 0.08
Net gain on securities (both
realized and unrealized) 3.41 5.21 3.94 0.92
------- ------- ------- ------
Total from investment
operations 3.43 5.32 4.02 1.00
Less distributions
from net investment income -- (0.08) ( 0.09) --
from net realized gains (0.31) (0.95) ( 0.09) --
------- ------- ------- ------
Total distributions (0.31) (1.03) ( 0.18) --
Net asset value, end of period $ 22.25 $ 19.13 $ 14.84 $11.00
======= ======= ======= ======
Total return 17.93%* 37.38% 36.93% 10.00%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $50,614 $31,673 $13,001 $7,524
Ratio of expenses to average net
assets prior to reimbursement
and/or fee waiver 0.70%** 0.88% 0.88% 1.01%**
Ratio of expenses to average net
assets net of reimbursement
and/or fee waivers 0.70%** 0.88% 0.88% 0.98%**
Ratio of net income to average
net assets 0.31%** 0.28% 0.76% 2.37%**
Portfolio turnover rate 7.11% 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
50
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Citizens Emerging Growth Fund***
------------------------------------------------------------------------------
For the For the For the For the For the From
six months year year year year 02/08/1994
ended ended ended ended ended to
12/31/1998 06/30/1998 06/30/1997 06/30/1996 06/30/1995 06/30/1994
(unaudited)
<S> <C> <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 $10.00
-------- ------- ------- ------- ------- ------
Income/(loss) from
investment operations
Net investment income/
(loss) (0.10) (0.20) (0.16) (0.13) 0.07 0.01
Net gain/(loss) on
securities (both
realized and
unrealized) 3.46 4.61 0.68 4.72 2.18 (0.08)
-------- ------- ------ ------- ------- ------
Total from investment
operations 3.36 4.41 0.52 4.59 2.25 (0.07)
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 $ 19.12 $ 17.55 $ 14.14 $ 14.87 $ 11.87 $ 9.93
======== ======= ======= ======= ======= ======
Total return 19.53%* 33.05% 4.03% 42.43% 23.24% (1.80%)*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $105,682 $87,892 $60,341 $36,409 $10,638 $3,754
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.87%** 1.96% 2.01% 2.34% 2.93% 3.81%**
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.87%** 1.96% 1.99% 2.02% 1.90% 1.89%**
Ratio of net income/(loss)
to average net assets (1.23%)** (1.37%) ( 1.32%) ( 1.64%) 0.53% 0.63%**
Portfolio turnover rate 85.92% 245.30% 228.66% 337.41% 231.30% 33.35%
</TABLE>
*Not Annualized
**Annualized
***The Citizens Emerging Growth Fund commenced operations on February 8, 1994.
See Accompanying Notes to Financial Statements
51
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Citizens Global Equity Fund***
------------------------------------------------------------------------------
For the For the For the For the For the From
six months year year year year 02/08/1994
ended ended ended ended ended to
12/31/1998 06/30/1998 06/30/1997 06/30/1996 06/30/1995 06/30/1994
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning
of period $ 16.95 $ 14.47 $ 11.89 $ 10.69 $ 9.80 $10.00
------- ------- ------- ------- ------- ------
Income/(loss) from
investment operations
Net investment income/
(loss) (0.07) (0.20) (0.07) (0.10) (0.01) 0.01
Net gain/(loss) on
securities (both
realized and
unrealized) 1.89 3.24 2.65 1.43 0.96 ( 0.21)
------- ------- ------- ------- ------- -------
Total from investment
operations 1.82 3.04 2.58 1.33 0.95 ( 0.20)
Less distributions
from net investment
income -- -- -- -- -- --
from net realized gains (0.47) (0.56) -- ( 0.13) ( 0.06) --
------- ------- ------- ------- ------- -------
Total distributions (0.47) (0.56) -- ( 0.13) ( 0.06) --
Net asset value, end of
period $ 18.30 $ 16.95 $ 14.47 $ 11.89 $10.69 $ 9.80
======= ======= ======= ======= ======= ======
Total return 10.72%* 21.75% 21.70% 12.52% 9.77% (2.00%)*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $57,481 $49,045 $29,573 $15,595 $9,503 $5,639
Ratio of expenses to
average net assets prior
to reimbursement
and/or fee waivers 1.96%** 2.20% 2.33% 2.72% 2.99% 3.16%**
Ratio of expenses to
average net assets net
of reimbursement
and/or fee waivers 1.96%** 2.20% 2.10% 2.55% 2.50% 2.50%**
Ratio of net income/(loss)
to average net assets (0.85%)** (0.76%) ( 0.70%) ( 1.01%) 0.00% 0.25%**
Portfolio turnover rate 25.86% 72.33% 69.34% 85.92% 22.10% 0.00%
</TABLE>
*Not Annualized
**Annualized
***The Citizens Global Equity Fund commenced operations on February 8, 1994.
See Accompanying Notes to Financial Statements
52
<PAGE>
Notes to Financial Statements -- December 31, 1998
NOTE 1--Summary of Significant Accounting Policies
Organization
The Working Assets Money Market Fund, Citizens Income Fund, Citizens Index Fund,
Citizens Emerging Growth Fund and the Citizens Global Equity Fund (the "Funds")
are each a series of shares of beneficial interest of Citizens Funds (the
"Trust"), formerly known as Citizens Investment 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 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 Income Fund, Citizens Emerging Growth Fund and the Citizens Global
Equity Fund offer one class of shares, known as Standard shares. The Working
Assets Money Market Fund and the Citizens Index Fund offer Standard as well as
Institutional Class shares. 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 the common
expenses of the Citizens Index Fund and the Working Assets Money Market Fund are
allocated on a pro rata basis to each class based on the relative net assets or
shareholder accounts of each class to the total net assets or shareholder
accounts of the Funds. 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 note 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 mean price for international securities. Fixed-income
investments generally are valued at the bid price for securities. Short-term
securities with a maturity of 60
53
<PAGE>
Notes to Financial Statements -- December 31, 1998
days or less are valued at amortized cost, adjusted for market fluctuation, if
any. 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 Income Fund distributes net investment income to shareholders
monthly and net capital gains, if any, annually. With respect to the Citizens
Index Fund, Citizens Emerging Growth Fund and Citizens Global Equity Fund,
distributions to shareholders from net investment income and net capital gains,
if any, are distributed 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 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 -- December 31, 1998
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 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' Statements
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 -- December 31, 1998
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 non-performance 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 -- December 31, 1998
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:
Working Assets Money Market Fund, 0.35%; Citizens Income Fund, 0.65%; Citizens
Index Fund, 0.50%; Citizens Emerging Growth Fund and Citizens Global Equity
Fund, 1.00%. Seneca Capital Management LLC serves as the Sub-Adviser for the
Citizens Income Fund and the Citizens Emerging Growth 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: Citizens Income Fund,
0.175%; and Citizens Emerging Growth Fund and Citizens Global Equity Fund,
0.35%.
The Adviser has agreed to reduce or eliminate its fee 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:
Working Assets Money Market Fund, 1.50% of the first $40 million of average net
assets and 1% thereafter; and Citizens Income Fund, 1.75% of the first $100
million of average net assets and 1.25% thereafter. The Adviser may also
voluntarily reduce its fee or waive reimbursement of distribution costs. Such
voluntary reimbursements may cease at any time.
In addition, during the six months ended 12/31/98, Seneca Capital Management LLC
paid the Citizens Emerging Growth Fund $164,443 to reimburse the Fund for losses
incurred in connection with certain equity securities trading.
Distribution Fee
Citizens Securities Inc. (the "Distributor") is a wholly owned subsidiary of
the Adviser and serves as the Funds 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 Funds Standard shares
and Institutional Class shares pursuant to which the Funds reimburse the
Distributor for a portion of its distribution related expenses.
57
<PAGE>
Notes to Financial Statements -- December 31, 1998
Distribution fees for the six months ended December 31, 1998, were charged based
on a percentage of average daily net assets as follows:
<TABLE>
<CAPTION>
<S> <C>
Working Assets Money Market Fund-Standard shares 0.20%
Working Assets Money Market Fund-Institutional Class shares 0.00%
Citizens Income Fund 0.25%
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%
</TABLE>
* Under the terms of the Distribution agreement, the Distributor may charge up
to 0.07% of average daily net assets for distribution related expenses. For the
six months ended December 31, 1998, 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 and expenses are payable monthly and include fees based on a
percentage of average daily net assets as follows:
<TABLE>
<CAPTION>
<S> <C>
Working Assets Money Market Fund-Standard shares 0.15%
Working Assets Money Market Fund-Institutional Class shares 0.00%
Citizens Income Fund 0.10%
Citizens Index Fund-Standard shares 0.20%
Citizens Index Fund-Institutional Class shares* 0.30%
Citizens Emerging Growth Fund 0.10%
Citizens Global Equity Fund 0.10%
</TABLE>
* For the six months ended December 31, 1998, the Adviser charged only 0.09% of
average daily net assets.
In addition, Citizens Securities provides a number of administrative services to
the Trust relating primarily to shareholder services and communications, and is
reimbursed a flat 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
six months ended December 31, 1998, a fee of 0.31% was charged. For the six
months ended December 31, 1998, the Trust paid administrative and shareholder
service fees as follows:
58
<PAGE>
Notes to Financial Statements -- December 31, 1998
<TABLE>
<CAPTION>
Administrative Shareholder
Expenses Service Fees
--------------- -------------
<S> <C> <C>
Working Assets Money Market Fund-
Standard shares $ 98,231 $48,771
Working Assets Money Market Fund-
Institutional Class shares 396 438
Citizens Income Fund 36,607 18,203
Citizens Index Fund-Standard shares 392,034 646,150
Citizens Index Fund-Institutional Class shares 16,462 387
Citizens Emerging Growth Fund 61,151 44,598
Citizens Global Equity Fund 34,314 19,133
</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. Transfer agent fees also include the cost of services rendered to
provide sub-transfer agency services and shareholder statements.
Class Specific Expenses
As described above, there are certain fees and expenses which vary by share
class within the Working Assets Money Market Fund and the Citizens Index Fund,
as set forth below, for the six months ended December 31, 1998:
<TABLE>
<CAPTION>
Working Assets Working Assets
Money Money Citizens Citizens
Market Fund- Market Fund- Index Fund- Index Fund-
Standard Institutional Standard Institutional
Shares Class Shares Shares Class Shares
-------------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
Transfer agent
expenses $108,141 $11,521 $ 171,142 $15,043
Distribution expenses 105,137 -- 444,145 --
Administrative
and shareholder
service fees 147,002 834 1,038,184 16,849
</TABLE>
59
<PAGE>
Notes to Financial Statements -- December 31, 1998
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 six months ended December 31,
1998:
<TABLE>
<CAPTION>
Purchases Sales
---------------------------- -------------------------------
U.S. Government Other U.S. Government Other
<S> <C> <C> <C> <C>
Citizens Income
Fund $8,228,810 $11,696,925 $3,144,586 $11,330,663
Citizens Index
Fund -- 65,108,328 -- 27,534,899
Citizens Emerging
Growth Fund -- 74,904,477 -- 69,203,523
Citizens Global
Equity Fund -- 16,516,528 -- 11,819,166
</TABLE>
NOTE 4--Options
The Citizens Emerging Growth Fund's written options contract activity for the
six months ended December 31, 1998, 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 December 31, 1998 0 0
</TABLE>
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 were reduced by credits for cash
balances as set forth below for the six months ended December 31, 1998:
<TABLE>
<S> <C>
Working Assets Money Market Fund $1,547
Citizens Income Fund 698
Citizens Index Fund 4,512
Citizens Emerging Growth Fund 992
Citizens Global Equity Fund 634
</TABLE>
60
<PAGE>
Notes to Financial Statements -- December 31, 1998
NOTE 6--Capital Shares
At December 31, 1998, 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:
Working Assets Money Market Fund-Standard Shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1998 Year Ended June 30, 1998
---------------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 88,289,774 $88,289,774 225,185,324 $ 225,185,324
Shares issued in connection
with the merger of the
EoFund (note 7) N/A N/A 20,424,963 20,424,963
Shares issued in
reinvestment of
distributions 2,185,596 2,185,596 4,133,681 4,133,681
Shares redeemed (88,828,301) (88,828,301) (231,203,065) (231,203,065)
----------- ----------- ------------ -------------
Net increase 1,647,069 $ 1,647,069 18,540,903 $ 18,540,903
=========== =========== ============ =============
</TABLE>
Working Assets Money Market Fund-Institutional Class Shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1998 Year Ended June 30, 1998
---------------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 8,956,071 $ 8,956,071 12,205,583 $ 12,205,583
Shares issued in
reinvestment of
distributions 452,759 452,759 892,790 892,790
Shares redeemed (5,523,473) (5,253,473) (12,423,765) (12,423,765)
---------- ----------- ----------- -------------
Net increase 3,885,357 $ 3,885,357 674,608 $ 674,608
========== =========== =========== =============
</TABLE>
Citizens Income Fund
<TABLE>
<CAPTION>
Six Months Ended December 31, 1998 Year Ended June 30, 1998
---------------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 1,281,828 $14,069,650 1,362,024 $ 14,876,174
Shares issued in connection
with the merger of the
Muir Portfolio (note 7) N/A N/A 996,129 10,678,482
Shares issued in
reinvestment of
distributions 129,742 1,422,186 197,805 2,157,311
Shares redeemed (478,858) (5,250,922) (1,047,393) (11,419,649)
--------- ----------- ---------- ------------
Net increase 932,712 $10,240,914 1,508,565 $ 16,292,318
========= =========== ========== ============
</TABLE>
61
<PAGE>
Notes to Financial Statements -- December 31, 1998
Citizens Index Fund-Standard Shares
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1998 June 30, 1998
---------------------------- -------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 3,644,233 $ 86,790,965 4,470,158 $ 93,123,009
Shares issued in
reinvestment of
distributions 176,936 4,844,511 614,329 11,776,678
Shares redeemed (2,256,579) (51,892,375) (2,229,198) (46,242,696)
---------- ----------- ---------- ------------
Net increase 1,564,590 $ 39,743,101 2,855,289 $ 58,656,991
========== =========== ========== ============
</TABLE>
Citizens Index Fund-Institutional Class Shares
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1998 June 30, 1998
---------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 713,438 $14,231,084 856,256 $ 14,991,105
Shares issued in
reinvestment of
distributions 26,311 588,312 66,804 1,040,809
Shares redeemed (120,910) (2,347,848) (143,279) (2,389,757)
-------- ----------- -------- ------------
Net increase 618,839 $12,471,548 779,781 $ 13,642,157
======== =========== ======== ============
</TABLE>
Citizens Emerging Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1998 June 30, 1998
---------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 2,227,255 $37,851,907 8,679,595 $136,411,777
Shares issued in
reinvestment of
distributions 469,629 8,636,485 315,387 4,383,874
Shares redeemed (2,177,560) (36,923,357) (8,255,328) (130,070,858)
---------- ----------- ---------- ------------
Net increase 519,324 $ 9,565,035 739,654 $ 10,724,793
========== =========== ========== ============
</TABLE>
Citizens Global Equity Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1998 June 30, 1998
---------------------------- ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 1,177,168 $19,968,185 1,279,900 $ 19,751,171
Shares issued in
reinvestment of
distributions 70,021 1,279,985 83,450 1,186,661
Shares redeemed (999,930) (16,749,448) (513,508) (7,863,221)
---------- ----------- --------- ------------
Net increase 247,259 $ 4,498,722 849,842 $13,074,611
-========= =========== ========= ============
</TABLE>
62
<PAGE>
Notes to Financial Statements -- December 31, 1998
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
996,129 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 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.
63
<PAGE>
Notes
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 Global Equity Fund
Citizens Emerging Growth 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 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:
Azie Taylor Morton, Chair
Sophia Collier
Lokelani Devone
Juliana Eades
William D. Glenn II
Mitchell Johnson
Robert Reich
Ada Sanchez
John 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 02103
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 02241
[Citizens Logo]
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.
[Recycle Logo] Printed on recycled paper with soy-based inks.
