ANNUAL REPORT June 30, 2000
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Markets go up,
markets go down.
All the more reason
to invest
for the long term.
[LOGO] CITIZENS FUNDS(R)
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[PHOTO]
John L. Shields
President
Dear Shareholder -- I'm sure I speak for all investors when I say that we'd be
happier if our ups and downs came from an amusement park ride rather than the
stock market. Yet that was not the case in recent months.
Since the beginning of the year, the Dow Jones Industrial Average and the Nasdaq
Composite have gone from unprecedented highs to unnerving lows to a place
somewhere in between. As disconcerting as it can be to investors and mutual fund
companies alike, the heightened level of volatility that seems to have taken
over the stock market speaks distinctly to the value of bringing a long-term
perspective to the investment process. Remarks I made in our last report to
investors seem to bear repeating here:
Taking a long-term view, managing your risk through diversification and
following a systematic investment plan are time-tested strategies for
investment success. By taking this approach, you give yourself the
opportunity to participate in what has historically been an upward trend.
You also equip yourself with the patience and discipline to ride out
setbacks that may occur along the way.
While many other mutual fund companies have had their assets whipsawed by the
activities of short-term investors, Citizens Funds has seen quite the opposite.
Our assets under management grew steadily over the past year, rising more than
69% by June 30, thanks to the support of individual investors and our inclusion
in a growing number of workplace retirement plans such as those run by the State
of Alaska and The Nature Conservancy. The confidence investors of all stripes
have demonstrated in us is not only extremely gratifying, it has also meant that
our fund managers can continue to invest with intelligence and foresight rather
than being pressured to act quickly to meet redemption requirements.
On another topic, shareholder activism has long been a hallmark of Citizens
Funds, and we are proud of our recent accomplishments in this area. Among
companies that have either made changes or are considering making them in their
corporate governance policies as a result of initiatives led or supported by
Citizens Funds are American Power Conversion Corporation (board diversity),
Kohl's
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Corporation (board diversity), Gateway (board diversity), MBNA (board
diversity), The Home Depot (Equal Employment Opportunity disclosure) and
Southwest Airlines (protection of sexual orientation).
I have a couple of final points I want to make as I conclude this letter. The
first is to let you know that Citizens Funds has never been better positioned to
meet the overall investment goals of shareholders. Our new Small Cap Index Fund
is up and running and brings to the small-cap sector the same socially
responsible philosophy that drives our other funds. The second is to report that
we continue to grow and strengthen our electronic capabilities. If you haven't
already done so, I hope you'll take advantage of the opportunity of receiving
communications like this Annual Report online in the future.
My best:
/s/ John L. Shields
John L. Shields
President
Investments in the Citizens Small Cap Index Fund involve unique risks, as
small-sized companies may have inexperienced management, limited product lines,
a difficult time obtaining financing or market share, and their shares may be
more volatile and not traded as frequently or in as large a volume as larger
companies.
Distributed by Citizens Securities, Inc., Portsmouth, NH 03801
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Table of Contents
President's Letter 1
Managers' Comments 4
Statement of Investments 22
Statements of Assets and Liabilities 56
Statements of Operations 58
Statements of Changes in Net Assets 60
Financial Highlights 62
Notes to Financial Statements 69
Report of Independent Accountants 83
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[PHOTO]
Sophia Collier
Lead manager of the Citizens Index Fund management team since its inception,
March 1995.
Managers' Comments -- Citizens Index Fund
Objective: Long-term capital appreciation. The Ground Rules: Invests primarily
in the securities comprising the Citizens Index(SM), a market-weighted index of
approximately 300 companies. The Results: Total return for the twelve-month
period ended June 30, 2000 for the Standard and Institutional Class shares was
12.82% and 13.67%, respectively. The S&P 500 Index twelve-month return for the
period ended June 30, 2000 was 7.31%. Total return for the period ended June 30,
2000 since inception for the Administrative Class shares (2/4/00) was 1.78%. The
S&P 500 Index return was 2.58% for the same time period.
For the twelve-months ended June 30, 2000, the Citizens Index Fund, Standard
Class shares returned 12.82% and the Institutional Class shares rose 13.67%,
beating the 7.31% increase of the S&P 500 Index. While we are pleased that we
continued to beat the S&P 500 Index by a significant measure, it is notable that
a lot of active funds have beaten the index funds this year, profiting from the
highly speculative market sentiment and the dot-com euphoria, something we do
not
Citizens Index Fund, Standard Class Shares
Growth of a $10,000 investment in the Citizens Index Fund, Standard Class
Shares, since March 3, 1995 (inception date), with dividends and capital gains
reinvested, compared to the S&P 500 Index and the Citizens Index.
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Average Annual Return for the periods ended June 30, 2000
One Year, 12.82%
Five Year, 27.68%
Since Inception 3/3/95, 27.93%
Citizens Index Fund,
Standard Class Shares - $37,173
Citizens Index(SM) - $42,625
S&P 500 Index - $32,949
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
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Managers' Comments -- Citizens Index Fund
participate in, consistent with our disciplined "buy and hold" strategy. And
although it is inevitable that in some years we would not be able to match the
high flying performance of some actively managed portfolios, it is important to
emphasize that we also believe that our diversified strategy and emphasis on
what we believe are well seasoned, financially strong companies, have less risk
than the more concentrated portfolios that have generated the top performance in
the last year.
During the last twelve months, the economy enjoyed consistently robust growth
with the Gross Domestic Product expanding at an annualized pace of 5.00% or more
in each of the last four quarters. Consumer spending and business investing
trended upward, labor markets continued to be tight and housing demand remained
vigorous. Faced with this strong growth and potentially looming inflation, the
Federal Reserve, in its ongoing effort to orchestrate a "soft landing" of the
economy, increased in six steps the Fed funds rate from 5.00% on June 30, 1999,
to 6.50% on May 16, 2000. Not surprisingly, this
Citizens Index Fund, Institutional Class Shares
Growth of a $1,000,000 investment in the Citizens Index Fund, Institutional
Class Shares, since January 25, 1996 (inception date), with dividends and
capital gains reinvested, compared to the S&P 500 Index and the Citizens Index.
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Average Annual Return for the periods ended June 30, 2000
One Year, 13.67%
Since Inception 1/25/96, 29.26%
Citizens Index Fund,
Institutional Class Shares - $3,119,390
Citizens Index(SM) - $3,280,199
S&P 500 Index - $2,518,080
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Minimum investment in this share class is
$1,000,000.
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Managers' Comments -- Citizens Index Fund
series of interest rate hikes was noticed by investors, prompting an
increasingly volatile and, ultimately, lackluster stock market performance as
reflected in the S&P 500 Index.
Propelled by the Internet frenzy, technology stocks experienced ferocious swings
in value. The Nasdaq 100 Index, often used to represent the technology market,
returned a remarkable 90.01% in the first three quarters of our fiscal year,
only to plummet 31.68% in the most recent quarter before recovering 17.53% by
the quarter's end. Still, it was the technology sector's impressive gain that
was the primary driver of the Citizens Index Fund's outperformance compared to
the S&P 500 Index, due in part to the Fund's overweighting in the sector. In
contrast to the allure of many Internet-based concept stocks, which enamored the
market in the last twelve months, we believe that our technology holdings
provide core building blocks of the digital transformation of the American
economy. Their rapid growth has been recognized by the stock market: EMC Corp.
(+180%), Intel Corp. (+125%) and Cisco Systems (+97%) were the top contributors
to the Fund's performance. Cisco Systems, whose switches and routers form the
backbone of the Internet, continues to grow through the massive build-out and
innovative improvements to the network infrastructure. Correspondingly, the need
for data storage and retrieval grows dramatically with the growth of the global
digital network, and this is why we believe EMC Corp., the dominant player in
the data storage field, is poised to continue to profit from the significant
demand for its storage systems. And finally, most digital devices, including
personal computers, require ever-increasing levels of processing power, creating
an insatiable need for more powerful microchips. Intel Corp., the world's
premier chip-maker, benefits the most from this phenomenon, not only in its
traditional PC chip business, but also in its growing networking and
communications product lines.
Among the companies with the largest negative impact on the performance of the
Fund was Microsoft (11%) which was affected by the uncertainty surrounding the
government's anti-trust litigation. Microsoft has been an aggressive competitor,
but it can also be credited for finally realizing the dream of accessible,
low-cost computing that began at Xerox Park many years ago. The government
action notwithstanding, Microsoft has an otherwise positive social record,
including its support of innovative approaches to diversity and disability
issues, and truly extensive assistance for education. We are reluctant to divest
it from the Fund for social reasons while the case is pending, but will evaluate
the situation as part of our annual social re-screening. Another underperformer
was Bank One Corp., which was down 53% after several quarters of sub-par
earnings. Although
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Managers' Comments -- Citizens Index Fund
we are disappointed with Bank One's current record, we see signs of recovery as
the bank restructures its operations, and we have not changed our positive view
of the long-term prospects of this holding.
Looking ahead, we expect favorable economic conditions to continue, despite the
pressure on interest rates. Possible future rate hikes would serve to moderate
inflationary trends and the remarkably strong economic growth. This trend,
coupled with the continued divergence between the technology sector and the rest
of the market, will likely provide for even higher volatility in the equity
markets during the remainder of 2000.
In closing, we would like to note that the Citizens Index Fund, Standard Class
shares marked its fifth anniversary this past March. The Fund's five-year
average annual return of 27.68% as of June 30, 2000, soundly beat the S&P 500
Index's return of 23.82% for the same period. Our unique, disciplined, long-term
investment style has provided added value to our shareholders in the past five
years, and we believe that it should continue to offer an enduring advantage in
years to come.
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[PHOTO]
Richard Little
Lead manager of the Citizens Emerging Growth Fund management team since its
inception, February 1994.
Managers' Comments -- Citizens Emerging Growth Fund
Objective: Aggressive growth. The Ground Rules: During normal market conditions,
invests primarily in the common stock of medium-sized companies whose market
capitalizations, at the time of acquisition, are in the capitalization range of
the S&P MidCap 400 Index. The Results: Total return for the twelve-month period
ended June 30, 2000 for the Standard Class shares was 82.19%. The S&P MidCap 400
Index twelve-month return for the period ended June 30, 2000 was 16.99%. Total
return for the period ended June 30, 2000 since inception for the Institutional
Class shares (11/1/99) and for the Administrative Class shares (2/4/00) was
55.02% and 16.97%, respectively. The S&P MidCap 400 Index return was 21.51% and
8.31% for the same time periods.
The Citizens Emerging Growth Fund, Standard Class shares returned 82.19% for the
twelve-month period ended June 30, 2000. This compared favorably to the 16.99%
return of its benchmark, the S&P MidCap 400 Index for the same period. The
Fund's Standard Class shares also performed admirably in comparison to its peer
group, ranking 34, beating 92% of all 456 mid-cap funds for the one-year
Citizens Emerging Growth Fund, Standard Class Shares
Growth of a $10,000 investment in the Citizens Emerging Growth Fund, Standard
Class Shares, since February 8, 1994 (inception date), with dividends and
capital gains reinvested, compared to the S&P MidCap 400 Index.
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Average Annual Return for the periods ended June 30, 2000
One Year, 82.19%
Five Year, 37.29%
Since Inception 2/8/94, 32.27%
Citizens Emerging Growth Fund,
Standard Class Shares - $59,795
S&P MidCap 400 Index - $29,611
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Investors should also be aware that
recent returns were primarily achieved during favorable market conditions.
Despite this outstanding record, investors should note that the Fund's
short-term performance is highly unusual and unlikely to be sustained.
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Managers' Comments -- Citizens Emerging Growth Fund
period ended June 30, 2000, according to Lipper, Inc., a well-known mutual fund
rating company. For the five-year period the Fund ranked 4, beating 97% of all
173 funds. In addition to the positive market environment, we attribute this
strong performance to stock selection. By focusing on the fundamentals of
individual companies and ensuring they met our criteria of earnings
acceleration, sustainable valuation, competent management and corporate
responsibility, we avoided stock meltdowns that were all-too-frequent in recent
months and produced consistently strong returns. In fact, the Fund's Standard
Class shares outperformed its benchmark index in every quarter of the Fund's
most recent fiscal year.
And what a year it was as market euphoria for dot-coms in 1999 and early 2000
gave way to concerns about unsustainable valuations and rising interest rates
late in the first quarter and into the second quarter of 2000. The mid-cap
equity market, as measured by the S&P MidCap 400 Index, rose a healthy 35% from
October 18, 1999, to a peak on March 31, 2000, only to lose 14% in the following
two weeks.
Citizens Emerging Growth Fund, Institutional Class Shares
Growth of a $1,000,000 investment in the Citizens Emerging Growth Fund,
Institutional Class Shares, since November 1, 1999 (inception date), with
dividends and capital gains reinvested, compared to the S&P MidCap 400 Index.
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Total Return for the period ended June 30, 2000
Since Inception 11/1/99, 55.02%
Citizens Emerging Growth Fund,
Institutional Class Shares - $1,550,200
S&P MidCap 400 Index - $1,215,100
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Minimum investment in this share class is
$1,000,000. Investors should also be aware that recent returns were primarily
achieved during favorable market conditions. Despite this outstanding record,
investors should note that the Fund's short-term performance is highly unusual
and unlikely to be sustained.
9
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Managers' Comments -- Citizens Emerging Growth Fund
In response, we were very careful to trim positions in the portfolio as
valuations climbed to unsustainable levels. For example, the Fund's weighting in
the technology sector was 49% in June 1999, rose to 60% in February 2000, and
was brought down to 49% in June 2000 as we sold off selected issues prior to the
market correction. Still, the Fund is overweighted in technology compared to its
benchmark index as we continue to see exceptional opportunities with the right
stocks. Also aiding performance this year was our underweighting in slower
growth areas, primarily in the financial and retail sectors.
Top contributors in the portfolio for the year were in the technology arena.
PMC-Sierra, a developer of high performance semiconductor networking products
for the telecommunications industry, was the strongest performer (+595%). SDL, a
designer and manufacturer of semiconductor lasers and fiber optic products, also
contributed to our return (+342%). Veritas Software (+273%), a designer of
enterprise storage management products, and Mercury Interactive (+447%), a
developer of a suite of automated software testing solutions, round out the top
performers list. Of these, we sold all but one - Mercury - prior to the market
correction in March 2000.
There were a few disappointments in the portfolio. Liberate Technologies
provides software that delivers Internet enhanced content to appliances such as
a TV set top box. Its value fell 62% in the first six months of 2000 as the
market headed downward, taking with it many higher valuation technology stocks.
TJX Companies, an off-price apparel and home fashions retailer, underperformed
in the second half of 1999 (-38%) as retail sales slowed and tech stocks were in
favor.
Because overall market volatility remains high and the economic outlook is
cloudy, we believe it will continue to be important to focus on company-specific
issues rather than on a market trend. When the dust settles, the companies with
the strongest fundamentals and those that continue to beat expectations should
outperform. We believe our Fund will be positioned primarily in these winning
situations.
10
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Managers' Comments -- Citizens Small Cap Index Fund
Objective: Capital appreciation. The Ground Rules: Invests primarily in the
securities comprising the Citizens Small Cap Index(SM), a market-weighted index
of approximately 300 companies. The Results: Total return for the Standard Class
shares from January 3, 2000 through June 30, 2000 was 12.30%. The S&P SmallCap
600 Index returned 6.92% for the same time period.
We are pleased to report on the first six months of operation of our new
Citizens Small Cap Index Fund, the only fund we have started in the last five
years. In an effort to replicate the success of our large-cap Citizens Index
Fund, we have created this new index fund to invest in the growing universe of
small and promising companies - the drivers of the new economic paradigm. The
Citizens Small Cap Index Fund, launched on December 28, 1999, was off to a good
start in its first six months of operation as it outperformed the small-cap
market overall.
Citizens Small Cap Index Fund, Standard Class Shares
Growth of a $10,000 investment in the Citizens Small Cap Index Fund, Standard
Class Shares, since January 3, 2000, with dividends and capital gains
reinvested, compared to the S&P SmallCap 600 Index and the Citizens Small Cap
Index.
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Total Return for the period ended June 30, 2000
Since 1/3/00, 12.30%
Citizens Small Cap Index Fund,
Standard Class Shares - $11,230
Citizens Small Cap Index(SM) - $11,070
S&P SmallCap 600 Index - $10,692
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. The Fund began investing in accordance
with its investment objective on January 3, 2000. From the commencement of the
Fund's operations on December 28, 1999 through January 2, 2000 the Fund was
invested in cash.
[PHOTO]
Sophia Collier
Lead manager of the Citizens Small Cap Index Fund management team since its
inception, December 1999.
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Managers' Comments -- Citizens Small Cap Index Fund
The Fund returned 12.30% from January 3, 2000, through June 30,
2000, while the S&P SmallCap 600 Index rose 6.92% during the same period.
The Fund started its life in a rather peculiar time when a lot of very
attractive smaller companies had already attained lofty valuations as a result
of the market run-up which started in October of 1999. Believing that these
valuation levels were unsustainable, we designed a buy-in strategy and
cautiously started building our stock positions. Our goal was to soften the
impact of what we believed would be the eventual downdraft, by maintaining cash
in place of buying a considerable number of overvalued stocks. As expected, the
market went into a tailspin at the end of March, and our substantial cash
allocation shielded our shareholders from this remarkably volatile period. As
the market returned to a new and more realistic valuation range, a lot of
attractive companies started coming down to earth, causing us to complete our
buy-in strategy just as the market started recovering at the end of May. In
effect, we were able to put the market's volatility to work for the advantage of
the Fund, while we built our positions to fully mirror the Citizens Small Cap
Index(SM). A part of our outperformance in our first six months of operation was
due to our buy-in strategy; however, now, under normal market conditions, the
Fund will seek to rely on full replication of the Index, rather than a buy-in
strategy, to achieve the objective of the Fund.
Our ongoing investment approach is based upon continuous and extensive research
of the small-cap universe. Unlike the large-cap Citizens Index(SM) which can
hold good companies indefinitely, companies must be evaluated for removal from
the Citizens Small Cap Index when they reach a mid-cap size. This shorter
investment time span mandates that we become much more time sensitive in our
stock selection criteria, biased towards dynamic, high-growth industries. For
example, our investments in the semiconductor and communications equipment
sectors, in which the Index was overweighted in comparison to the S&P SmallCap
600 Index, significantly contributed to our outperformance during the period.
One successful example was Sandisk, the maker of flash-memory chips, used in all
things digital - digital cameras, digital assistants, and the various network
and communications products. As an illustration of our short investment time
span, the Fund held Sandisk for only four months, during which time the stock
went up 87%, at which point it outgrew the Index's market cap range, causing it
to be deleted from the Citizens Small Cap Index. Another contributor was
Transwitch, a manufacturer of communications chips, which gained 60%. The
company's growing role in the rapid build-out of the global voice and data
networks, and its new optical product rollout are starting to be recognized by
investors. In the communications equipment sector, Tollgrade Communications
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Managers' Comments -- Citizens Small Cap Index Fund
(+668%) and Ditech Communications (+102%) contributed significantly to the
Fund's performance. Tollgrade experienced considerable demand for its line
testing system by both telephone and cable companies as they deploy the
broadband infrastructure. Demand for Ditech's voice enhancement and echo
cancellation products, used in building and improving the telecommunications
systems, continued to grow.
The Fund had some disappointments as well, particularly in its apparel holdings.
Tommy Hilfiger declined 68% in the first six months of 2000 and American Eagle
Outfitters dropped 69% during the same period. In our opinion these stocks
overcorrected in response to relatively small declines in sales volume. Sluggish
consumer demand impacted the apparel sector as a whole. This reduced demand has
been blamed on many factors, including everything from the weather to Alan
Greenspan, but the most likely reason is the untimely response to changing
consumer tastes. Occasionally retailers simply have poor seasons and this
certainly has been one. In addition, the radio broadcasting sector was under
considerable pressure during the first half of the year. Interest rate hikes and
high valuations contributed to the sell-off of the radio stocks despite their
strong operating performance. As a result, smaller broadcasters like Cumulus
Media and Citadel Communications declined 82% and 46%, respectively.
Going forward, while we expect the pace of economic growth to moderate somewhat
because of higher interest rates, we believe the long-term environment in the
equity markets will remain favorable, despite the inevitable short-term
volatility. As we were designing the Citizens Small Cap Index, researching the
vast small-cap universe over the past year, we have been truly impressed with
the remarkable number of promising businesses, concepts and technologies. Such
exceptional breadth of innovation historically epitomizes any time of rapid
economic change, including the one we are currently experiencing. This is why we
are particularly optimistic about the prospects of the current and future
companies in the Citizens Small Cap Index.
13
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[PHOTO]
Lilia Clemente
Lead manager of the Citizens Global Equity Fund management team since its
inception, February 1994.
Managers' Comments -- Citizens Global Equity Fund
Objective: Capital appreciation. The Ground Rules: Invests primarily in common
stocks of both domestic and foreign companies with a plan to allocate more than
half the assets to foreign markets, in most circumstances in a minimum of three
countries. To reduce risk, the Fund cannot invest more than 25% in emerging
markets. The Results: Total return for the twelve-month period ended June 30,
2000 for the Standard Class shares was 53.27%. The Financial Times World Index
twelve-month return for the period ended June 30, 2000 was 12.49%. Total return
for the period ended June 30, 2000 since inception for the Institutional Class
shares (11/1/99) and for the Administrative Class shares (2/4/00) was 32.55% and
-10.25%, respectively. The Financial Times World Index return was 8.34% and
0.66% for the same time periods.
The Citizens Global Equity Fund, Standard Class shares posted an impressive
return of 53.27% for the twelve-months ended June 30, 2000, beating its
benchmark, the Financial Times World Index, which increased 12.49% for the same
period. The Fund's Standard Class shares performance earned it a ranking of 8
out of 255 global funds for the
Citizens Global Equity Fund, Standard Class Shares
Growth of a $10,000 investment in the Citizens Global Equity Fund, Standard
Class Shares, since February 8, 1994 (inception date), with dividends and
capital gains reinvested, compared to the FT World Index.
[GRAPHIC OMITTED]
Average Annual Return for the periods ended June 30, 2000
One Year, 53.27%
Five Year, 25.58%
Since Inception 2/8/94, 20.89%
Citizens Global Equity Fund,
Standard Class Shares - $33,630
FT World Index - $22,232
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Investors should also be aware that
recent returns were primarily achieved during favorable market conditions.
Despite this outstanding record, investors should note that the Fund's
short-term performance is highly unusual and unlikely to be sustained.
14
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Managers' Comments -- Citizens Global Equity Fund
one year ended June 30, 2000, according to Lipper, Inc., a well-known mutual
fund rating company. For the five-year period, the Fund ranked 8, beating 91% of
all 106 funds.
In the final quarter of 1999 we saw an unusual scale of liquidity worldwide as
central banks throughout the world prepared to counter any Y2K related problems.
This excess liquidity was channeled into the financial markets after the Y2K
threats subsided, resulting in a surge in the leading stock markets worldwide.
However, the year-end peak was short-lived, and markets substantially retreated
late in the first quarter of the new year.
The new economy stocks that propelled major indices to all-time highs took the
brunt of the selling as concerns over valuations emerged. The Nasdaq Composite
Index declined 37% from its top in March to the bottom in May. Attention
switched back to the "old economy" companies with attractive valuations, with
energy, food and beverage, and health care stocks delivering the best
Citizens Global Equity Fund, Institutional Class Shares
Growth of a $1,000,000 investment in the Citizens Global Equity Fund,
Institutional Class Shares since November 1, 1999 (inception date), with
dividends and capital gains reinvested, compared to the FT World Index.
[GRAPHIC OMITTED]
Total Return for the period ended June 30, 2000
Since Inception 11/1/99, 32.55%
Citizens Emerging Growth Fund,
Institutional Class Shares - $1,325,500
FT World Index - $1,083,400
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Minimum investment in this share class is
$1,000,000. Investors should also be aware that recent returns were primarily
achieved during favorable market conditions. Despite this outstanding record,
investors should note that the Fund's short-term performance is highly unusual
and unlikely to be sustained.
[PHOTO]
Sevgi Ipek
Portfolio manager of the Citizens Global Equity Fund since February 1995.
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Managers' Comments -- Citizens Global Equity Fund
performance in the first half of 2000. The underachievers were many of the
former "glamour stocks" in the technology, media and telecommunications sectors.
Indeed, global investors faced a very challenging environment in the first half
of 2000. Volatility increased as investors rotated sectors in response to
concerns of inflation, strong U.S. growth and the improving economic
environments in Europe, Asia and Latin America. In Europe, the Bank of England
led the defensive charge against inflation, relentlessly raising rates until
February. Faced with the added pressure of a weak currency, the European Central
Bank culminated a series of 25 basis point rate hikes with the final 50 basis
point hike in May. Japan's 10% annualized recovery rate topped out -- a welcome
recovery to both capital and consumer spending. And the Asian emerging markets
suffered some of their biggest losses this year, as risk-averse investors
withdrew funds from the region.
During this volatile market environment, we remained committed to our bottom-up
stock selection strategy of identifying companies with strong fundamentals that
are well-positioned to improve their earnings prospects. We did, however, move
into a more defensive posture in the first half of 2000, increasing our cash
holdings to allow us to respond more quickly to changing market conditions. With
respect to the Fund's equity holdings, Vestas Wind Systems in Denmark was one of
our strongest performers, with a return of 119% during the first six months of
2000. The world leader in wind energy, Vestas is the main beneficiary of
government-driven efforts to promote renewable energies as part of many
countries' restructured electricity industries. Finland-based Aldata Solutions
was another winner, returning 97% in the first six months of 2000. Aldata
develops m-commerce software that allows users to make purchases over a mobile
phone. Mobile penetration in Europe is just under 55% -- much higher than the
current PC penetration -- and is expected to grow significantly over the next
few years.
Most of the Fund's laggards were concentrated in Asia where, after last year's
strong run up, stocks have succumbed to profit taking. Citizens Global Equity
Fund, Standard Class shares lost 2.72% in the six-month period ended June 30,
2000, compared with a 2.28% drop in the Financial Times World Index. Our
significant underperformers were Seven Eleven Japan (-45%), Singapore-based
Natsteel Electronics (-39%) and Korea Telecom (-36%).
Dynamic change in the form of cyclical recovery and secular technological change
is underway in the global economy. We expect lower volatility in financial
markets, moderation of U.S. consumer
16
<PAGE>
Managers' Comments -- Citizens Global Equity Fund
spending, and a peak in economic growth. Consequently, we are strategically
underweighting U.S. consumer sectors and favor the interest sensitive financials
and utilities sectors, as well as quality technology stocks, health care and
biotech.
Looking forward into the second half of 2000, the prospect of an economic
slowdown has some compensating effects. Earnings growth forecasts are being
scaled back, but lower bond yields should provide support to stock valuations.
The consensus is that short-term interest rates have peaked in the United
States, though not yet in Europe, where weakness in the Euro is posing some
risks for further inflationary pressure due to the higher cost of imports. The
U.S. economy appears to have slowed smoothly, but questions remain as to how
long the slowdown will last.
17
<PAGE>
[PHOTO]
Gail Seneca
Lead manager of the Citizens Income Fund management team since November 1993.
Managers' Comments -- Citizens Income Fund
Objective: Generate current income and pay a dividend each month. The Ground
Rules: Invests at least 65% of Fund assets in taxable bonds rated at least
"investment grade." Up to 35% of Fund assets may be invested in non-investment
grade securities. The Results: Total return for the twelve-month period ended
June 30, 2000 was 3.35%. The Lehman U.S. Aggregate Index returned 4.57% for the
same time period.
The Citizens Income Fund returned 3.35% for the twelve-month period ended June
30, 2000, compared to a 4.57% increase for the benchmark Lehman U.S. Aggregate
Index for the same period. The Fund's underperformance was due in part to
unusual events in the bond market over the period, which caused Treasury bonds
to outperform all other bonds. The Citizens Income Fund does not invest in
Treasury securities, due to its social screening policies; therefore, we were
unable to take advantage of this dynamic. However, we employed a number of
strategies to counter this trend and the Fund's performance
Citizens Income Fund, Standard Class Shares
Growth of a $10,000 investment in the Citizens Income Fund, Standard Class
Shares, since June 10, 1992 (inception date), with dividends and capital gains
reinvested, compared to the Lehman U.S. Aggregate Index.
[GRAPHIC OMITTED]
Average Annual Return for the periods ended June 30, 2000
One Year, 3.35%
Five Year, 5.86%
Since Inception 6/10/92, 6.25%
Citizens Income Fund,
Standard Class Shares - $16,307
Lehman U.S. Aggregate Index - $15,973
Past performance is not indicative of future results. Returns reflect expense
reimbursements/waivers previously in effect, without which returns would have
been lower. Investment return and principal value of an investment in Citizens
Funds will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
18
<PAGE>
Managers' Comments -- Citizens Income Fund
bounced back later in the fiscal year. Indeed, in the quarter ended June 30,
2000, the Citizens Income Fund returned 1.99%, ranking 19, outperforming 93% of
all 298 intermediate-term investment grade debt funds, according to Lipper,
Inc., a well-known mutual fund rating company. For the five-year period, the
Fund ranked 23 out of 51 funds.
The macroeconomic environment in the past year ending June 30, 2000, was a
difficult one, as the Federal Open Market Committee (Fed) increased short term
rates 1.50%. Also during this period, the U.S. Treasury announced that it would
buy back longer dated Treasury securities. The Treasury buyback and the
government's reduced need for financing going forward, especially in longer
maturity bonds, resulted in lower Treasury yields with 30-year yields falling
below shorter-term yields. Thus, a strong performance in long maturity
Treasuries occurred even as the overall environment for bonds grew increasingly
difficult due to Fed actions.
As a result, Treasuries outperformed most other sectors. Our strategy during
this unusual period was to increase the Fund's weighting in mortgage-backed
securities in order to take advantage of the higher quality and high, stable
income streams offered by this sector. Mortgage-backed securities performed
relatively well as they typically do when rates are rising. The Fund also
benefited from reducing Government Agency market exposure earlier this year.
Agency securities underperformed as investors became increasingly concerned
about the sustainability of government support for these entities.
As of June 30, 2000, the Fund held 65% of its assets in corporate bonds and 25%
in mortgage bonds and government agencies. We have made no major shifts over the
fiscal year in average maturity and average quality with the Fund's weighting in
high yield securities, which was 30% at year end.
These strategies paid off in our last fiscal quarter as the Fund's performance
improved substantially relative to its peer group. Strong quarterly results were
also attributable to security selection as the Fund experienced one favorable
tender (U.S. Home) and a potential upgrade or tender due to a pending
acquisition (Primark Corp). Also, positions in the telecommunications sector,
such as Nextel and Global Crossing, performed strongly.
The interest rate environment may remain mildly negative in the near term if the
Fed hikes rates again. There are indications that economic growth may be
slowing, however, which could forestall aggressive Fed action. Once the Federal
Reserve is thought to have completed this tightening cycle, bond yields should
fall with corporate and mortgage yields falling most. The Citizens Income Fund
is very well-positioned to benefit from the potential for declining yields in
non-Treasury sectors, which would have a positive effect on the Fund.
19
<PAGE>
[PHOTO]
Susan Kelly
Lead manager of the Working Assets Money Market Fund management team since March
2000.
Managers' Comments -- Working Assets Money Market Fund
Objective: Current income consistent with safety and liquidity. The Ground
Rules: Invests in liquid short-term money market instruments, while maintaining
an average maturity of 90 days or less. The Results: Total return for the
twelve-month period ended June 30, 2000 for the Standard and Institutional Class
shares was 4.67% and 5.04%, respectively.
The money market environment has changed quite significantly over the past year.
The Federal Reserve moved from a neutral bias and a Fed funds rate of 5.00% to
an inflationary bias and a Fed funds rate of 6.50%. A rate increase of this
magnitude in one year has not occurred since 1994. Also of interest during this
timeframe was the transformation of the Treasury yield curve from a normal
upward-sloping curve to an inverted downward sloping curve, meaning that longer
term Treasuries were yielding less than short term issues. This unusual
condition was prompted by a flight to quality and continued news of shortened
supply in the long end of the curve.
Our strategy during this period was to shorten the Fund's maturity to be better
positioned for further rate increases. The weighted average maturity of the Fund
on June 30, 2000, was 30 days, down from 46 days six months earlier and 60 days
one year ago. For the twelve-month period ended June 30, 2000, the Working
Assets Money Market Fund, Standard Class shares returned 4.67%. Institutional
Class shares returned 5.04% for the same period. Not surprisingly given the
higher rate environment, the return of the last six months of the Fund's fiscal
year outpaced the first six months as the Standard Class shares were up 2.48%
for the six months ended June 30, 2000, vs. 2.14% for the six months ended
December 31, 1999. In addition to the change in maturity structure, we have
added a number of asset backed commercial paper issues to the portfolio, which
have higher yields but also fit our parameters of safety and liquidity.
The Fed seems to be on hold until officials determine if their tightening
monetary policy has proven effective and slowed the U.S. economy. We feel that
this tightening bias could continue into next year. For one thing, we have an
upcoming presidential election that could change the financial environment. Each
party is touting fiscal stimulus, one via tax cuts and the other emphasizing new
spending initiatives. Either way, interest rates are apt to come under pressure
as the Fed tries to neutralize the impact on economic growth.
Another reason we could continue to see restrictive monetary policy is that the
Fed has consistently pointed to three indicators as reasons
20
<PAGE>
Managers' Comments -- Working Assets Money Market Fund
for hikes and we believe none has softened substantially enough to think the Fed
is done: domestic growth is strong as real Gross Domestic Product continues to
increase at a 5.00% annualized rate; the labor market is still very tight with
an unemployment rate of 4.00%; and growth continues abroad.
Going forward, we currently plan to extend the length of the maturities we hold
but with an eye on upcoming Fed meetings. We will assess the value of the money
market curve given the current scenario of short-term interest rates and
continue to target maturities where we find value. Our goal, as always, is to
provide safety, liquidity and yield to our shareholders.
21
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Equities 99.33%
Auto Parts & Equipment 0.01%
9,400 Cooper Tire & Rubber Co. $ 104,575
------------
104,575
Chemicals 0.26%
29,500 Air Products & Chemicals Inc. 908,969
15,550 Engelhard Corp. 265,322
20,400 Praxair Inc. 763,725
11,500 Sigma-Aldrich Corp. 336,375
------------
2,274,391
Commercial Services & Equipment 1.35%
7,033 ACNielsen Corp. 154,726 (b)
93,543 Cendant Corp. 1,309,602 (b)
27,000 Concord EFS Inc. 702,000 (b)
20,000 Convergys Corp. 1,037,500 (b)
9,200 Deluxe Corp. 216,775
8,700 DeVry Inc. 230,006 (b)
20,600 Dun & Bradstreet Corp. 589,675
12,900 H & R Block Inc. 417,638
10,200 Herman Miller Inc. 263,925
35,684 McKesson HBOC Inc. 747,134
48,075 Paychex Inc. 2,019,150
33,000 Pitney Bowes Inc. 1,320,000
23,000 Robert Half International Inc. 655,500 (b)
12,600 Viad Corp. 343,350
85,700 Xerox Corp. 1,778,275
------------
11,785,256
Computers 17.53%
44,850 3Com Corp. 2,584,481 (b)
12,800 Adaptec Inc. 291,200 (b)
42,200 Apple Computer Inc. 2,210,225 (b)
897,900 Cisco Systems Inc. 57,072,769 (b)
218,885 Compaq Computer Corp. 5,595,248
332,100 Dell Computer Corp. 16,376,681 (b)
59,900 Electronic Data Systems Corp. 2,470,875
280,400 EMC Corp. 21,573,275
7,000 Extreme Networks Inc. 738,500 (b)
15,000 Foundry Networks Inc. 1,650,000 (b)
129,000 Hewlett-Packard Co. 16,108,875
16,300 Lexmark International Group Inc. 1,096,175 (b)
18,000 MarchFIRST Inc. 328,500 (b)
22 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Computers (cont'd)
5,000 RSA Security Inc. $ 346,250 (b)
9,000 Sandisk Corp. 550,687 (b)
22,800 Silicon Graphics Inc. 85,500 (b)
205,000 Sun Microsystems Inc. 18,642,187 (b)
9,400 Synopsys Inc. 324,887 (b)
40,000 Unisys Corp. 582,500 (b)
50,025 Veritas Software Corp. 5,653,607 (b)
------------
154,282,422
Construction & Housing 0.17%
7,100 Centex Corp. 166,850
17,000 Clayton Homes Inc. 136,000
57,400 Masco Corp. 1,036,787
5,300 Pulte Corp. 114,613
------------
1,454,250
Consumer Durables 0.05%
1,755 Harman International Industries Inc. 107,055
9,900 Maytag Corp. 365,063
------------
472,118
Consumer Products - Miscellaneous 0.25%
7,800 American Greetings Corp. 148,200
14,600 Avery Dennison Corp. 980,025
34,056 Newell Rubbermaid Inc. 876,942
7,300 Tupperware Corp. 160,600
------------
2,165,767
Electronics 14.71%
19,900 Advanced Micro Devices Inc. 1,537,275 (b)
58,582 Agilent Technologies Inc. 4,320,422 (b)
26,200 Altera Corp. 2,670,762 (b)
24,700 American Power Conversion Corp. 1,008,069 (b)
104,000 Applied Materials Inc. 9,425,000 (b)
28,000 Atmel Corp. 1,032,500 (b)
6,100 Avnet Inc. 361,425
22,000 AVX Corp. 504,625
15,400 Broadcom Corp. 3,371,637 (b)
7,000 Burr Brown Corp. 606,812 (b)
28,000 Conexant Systems Inc. 1,361,500 (b)
432,100 Intel Corp. 57,766,369
24,000 Jabil Circuit Inc. 1,191,000 (b)
24,400 KLA-Tencor Corp. 1,428,925 (b)
See Accompanying Notes to Financial Statements 23
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
-------------------------------------------------------------------------------
Electronics (cont'd)
40,000 Linear Technology Corp. $ 2,557,500
39,600 LSI Logic Corp. 2,143,350 (b)
10,000 Microchip Technology Inc. 582,656 (b)
71,200 Micron Technology Inc. 6,270,050
5,700 Millipore Corp. 429,637
25,450 Molex Inc. 1,224,781
26,400 PE Corp-PE Biosystems Group 1,739,100
19,000 Sanmina Corp. 1,624,500 (b)
19,000 SCI Systems Inc. 744,563 (b)
76,600 Solectron Corp. 3,207,625 (b)
17,875 Symbol Technologies Inc. 965,250
6,250 Tektronix Inc. 462,500
211,800 Texas Instruments 14,548,013
7,700 Thomas & Betts Corp. 147,263
24,000 Vitesse Semiconductor Corp. 1,765,500 (b)
8,000 Waters Corp. 998,500 (b)
41,400 Xilinx Inc. 3,418,088 (b)
------------
129,415,197
Energy & Utilities 1.19%
55,400 AES Corp. 2,527,625 (b)
12,400 American Water Works Inc. 310,000
16,000 Calpine Corp. 1,052,000 (b)
20,000 Dynegy Inc. 1,366,250
29,600 El Paso Energy Corp. 1,507,750
71,429 Energia Global International Limited,
Series A, Conv. Pfd. 330,716 (b)(c)
4,500 Idacorp Inc. 145,125
10,800 MCN Energy Group Inc. 230,850
6,200 Nicor Inc. 202,275
4,800 Peoples Energy Corp. 155,400
5,200 Philadelphia Suburban Corp. 106,600
5,000 United Water Resources Inc. 174,375
40,000 Vulcan Power Company, Class A 0 (b)(c)
56,400 Williams Companies Inc. 2,351,175
------------
10,460,141
Finance & Insurance 12.99%
11,950 A.G. Edwards Inc. 466,050
172,700 American Express Co. 9,001,988
32,486 American General Corp. 1,981,646
22,000 Ameritrade Holding Corp. 255,750 (b)
50,000 AmSouth BanCorp. 787,500
33,400 AON Corp. 1,037,488
148,750 Banc One Corp. 3,951,172
94,800 Bank of New York Company Inc. 4,408,200
24 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Finance & Insurance (cont'd)
44,900 BB&T Corp. $ 1,071,988
25,000 Capital One Financial Corp. 1,115,625
175,925 Charles Schwab Corp. 5,915,478
27,270 Charter One Financial Inc. 627,210
22,900 Chubb Corp. 1,408,350
436,000 Citigroup Inc. 26,269,000
20,050 Comerica Inc. 899,744
15,100 Countrywide Credit Industries Inc. 457,719
36,400 E*TRADE Group Inc. 600,600 (b)
129,700 Fannie Mae 6,768,719
39,500 Fifth Third Bancorp 2,498,375
126,138 Firstar Corp. 2,656,782
90,000 Freddie Mac 3,645,000
20,200 Golden West Financial Corp. 824,413
9,000 Goldman Sachs Group Inc. 853,875
28,100 Hartford Financial Services Group Inc. 1,571,844
60,800 Household International Inc. 2,527,000
29,722 Huntington Bancshares Inc. 469,979
4,191 Investment Technology Group Inc. 178,379
13,150 Jefferson-Pilot Corp. 742,153
56,300 KeyCorp 992,288
16,000 Knight Trading Group Inc. 477,000 (b)
16,000 Lehman Brothers Holdings Inc. 1,513,000
1,000 M & T Bank Corp. 450,000
13,200 Marshall & Ilsley Corp. 547,800
12,600 MBIA Inc. 607,163
103,312 MBNA Corp. 2,802,338
63,000 Mellon Financial Corp. 2,295,563
13,600 MGIC Investment Corp. 618,800
78,700 National City Corp. 1,342,819
29,000 Northern Trust Corp. 1,886,813
37,900 PNC Financial Services Group Inc. 1,776,562
9,800 Progressive Corp. 725,200
18,100 Providian Financial Corp. 1,629,000
28,300 Regions Financial Corp. 562,462
11,000 Reliastar Financial Corp. 576,812
16,200 Safeco Corp. 321,975
20,000 SLM Holding Corp. 748,750
27,144 St. Paul Companies Inc. 926,289
21,100 State Street Corp. 2,237,919
39,300 Suntrust Banks Inc. 1,795,518
36,000 Synovus Financial Corp. 634,500
96,800 U.S. Bancorp 1,863,400
31,100 UnumProvident Corp. 623,943
25,700 Wachovia Corp. 1,394,224
70,434 Washington Mutual Inc. 2,033,781
------------
114,375,946
See Accompanying Notes to Financial Statements 25
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Food & Beverages 5.10%
35,500 Bestfoods $ 2,458,375
55,100 Campbell Soup Co. 1,604,788
319,900 The Coca-Cola Co. 18,374,256
38,100 General Mills Inc. 1,457,325
5,500 Hannaford Brothers Co. 395,313
45,300 H.J. Heinz Co. 1,981,875
17,700 Hershey Foods Corp. 858,450
52,200 Kellogg Co. 1,552,950
107,500 Kroger Co. 2,371,719 (b)
8,550 McCormick & Co. Inc. 277,875
6,600 Nabisco Holdings Corp. 346,500
185,700 Pepsico Inc. 8,252,044
17,400 Quaker Oats Co. 1,307,175
17,300 SUPERVALU INC. 329,781
42,600 Sysco Corp. 1,794,525
4,387 Tootsie Roll Industries Inc. 153,545
17,700 Whitman Corp. 219,037
14,600 Wm. Wrigley Jr. Co. 1,170,737
------------
44,906,270
Forest Products & Paper 0.05%
11,600 Consolidated Papers Inc. 424,125
------------
424,125
Health Care & Personal Care 2.26%
30,900 Avon Products Inc. 1,375,050
32,200 Becton, Dickinson & Co. 923,738
15,100 Biomet Inc. 580,406
52,700 Boston Scientific Corp. 1,156,106 (b)
134,700 Gillette Co. 4,706,081
39,300 Guidant Corp. 1,945,350 (b)
4,800 Idexx Laboratories Inc. 109,800 (b)
4,100 Invacare Corp. 107,625
154,338 Medtronic Inc. 7,687,962
10,500 St. Jude Medical Inc. 481,688 (b)
4,500 Trigon Healthcare Inc. 232,031 (b)
7,900 WellPoint Health Networks Inc. 572,256 (b)
------------
19,878,093
26 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Machines & Tools 0.25%
29,800 Deere & Co. $ 1,102,600
7,700 Snap-On Inc. 205,013
4,397 SPX Corp. 531,762 (b)
11,400 The Stanley Works 270,750
3,000 Tecumseh Products Co. 114,562
------------
2,224,687
Media 6.08%
27,700 AMFM Inc. 1,911,300 (b)
44,100 Clear Channel Communications Inc. 3,307,500 (b)
11,000 CNET Networks Inc. 270,187 (b)
115,700 Comcast Corp. 4,685,850 (b)
11,400 Dow Jones & Co Inc. 835,050
9,900 E.W. Scripps Co. 487,575
9,600 Harcourt General Inc. 522,000
14,000 Hispanic Broadcasting Corp. 463,750 (b)
50,000 Infinity Broadcasting Corp. 1,821,875 (b)
25,000 McGraw-Hill Companies Inc. 1,350,000
79,000 MediaOne Group Inc. 5,238,786 (b)
7,000 Meredith Corp. 236,250
22,400 New York Times Co. 884,800
23,000 Omnicom Group Inc. 2,048,437
169,700 Time Warner Inc. 12,897,200
20,000 Tribune Co. 700,000
10,000 UnitedGlobalCom Inc. 467,500 (b)
13,100 Univision Communications Inc. 1,355,850 (b)
196,600 Viacom Inc. 13,405,663 (b)
1,400 Washington Post Co. 669,200
------------
53,558,773
Metal Fabricate & Hardware 0.03%
7,800 Timken Co. 145,275
11,200 Worthington Industries Inc. 117,600
------------
262,875
Manufacturing - Miscellaneous 0.26%
39,000 Illinois Tool Works 2,223,000
5,200 National Service Industries Inc. 101,400
------------
2,324,400
See Accompanying Notes to Financial Statements 27
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Pharmaceuticals 5.94%
12,800 Alza Corp. $ 756,800 (b)
132,200 Amgen Inc. 9,287,050 (b)
18,700 Biogen Inc. 1,206,150 (b)
23,300 Chiron Corp. 1,106,750 (b)
11,000 Forest Laboratories Inc. 1,111,000 (b)
7,000 Human Genome Sciences Inc. 933,625 (b)
4,000 ImClone Systems Inc. 305,750 (b)
65,000 Immunex Corp. 3,213,438 (b)
297,000 Merck & Co., Inc. 22,757,625
16,200 Mylan Laboratories Inc. 295,650
189,500 Schering-Plough Corp. 9,569,750
10,500 Sealed Air Corp. 549,938 (b)
13,001 Sonoco Products Co. 267,333
13,000 Sybron International Corp. 257,563 (b)
12,100 Watson Pharmaceuticals Inc. 650,374 (b)
------------
52,268,796
Real Estate Investment & Management 0.02%
8,800 Rouse Co. 217,800
------------
217,800
Recreation & Entertainment 0.36%
9,800 Callaway Golf Co. 159,863
38,800 Harley-Davidson Inc. 1,493,800
22,150 Hasbro Inc. 333,634
54,775 Mattel Inc. 722,345
16,400 Sabre Group Holdings Inc. 467,400
------------
3,177,042
Retail 5.07%
18,000 Bed Bath & Beyond Inc. 652,500 (b)
26,300 Best Buy & Co., Inc. 1,663,475 (b)
57,400 Costco Wholesale Corp. 1,894,200 (b)
50,600 CVS Corp. 2,024,000
16,200 Darden Restaurants Inc. 263,250
42,596 Dollar General Corp. 830,622
27,000 Federated Department Stores Inc. 911,250 (b)
110,237 The Gap Inc. 3,444,906
299,100 Home Depot Inc. 14,936,306
9,000 Ingram Micro Inc. 156,938 (b)
28 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Retail (cont'd)
64,000 Intimate Brands Inc. $ 1,264,000
33,700 J.C. Penney Co., Inc. 621,344
41,800 Kohls Corp. 2,325,125 (b)
55,600 Limited Inc. 1,202,350
7,200 Liz Claiborne Inc. 253,800
49,400 Lowe's Companies Inc. 2,028,488
43,050 May Department Stores Co. 1,033,200
17,000 Nordstrom Inc. 410,125
24,400 Radioshack Corp. 1,155,950
62,500 Staples Inc. 960,937 (b)
23,400 Starbucks Corp. 893,587 (b)
9,000 Tiffany & Co. 607,500
39,100 The TJX Companies Inc. 733,125
17,000 Venator Group Inc. 174,250 (b)
129,900 Walgreen Co. 4,181,156
------------
44,622,384
Software 10.55%
15,600 Adobe Systems Inc. 2,028,000
296,800 America Online Inc. 15,656,200 (b)
80,700 Automatic Data Processing Inc. 4,322,494
31,700 BMC Software Inc. 1,156,555 (b)
31,300 Cadence Design Systems Inc. 637,738 (b)
23,000 Citrix Systems Inc. 435,563 (b)
76,212 Computer Associates International Inc. 3,901,102
47,000 Compuware Corp. 487,625 (b)
38,800 IMS Health Inc. 698,400
25,600 Intuit Inc. 1,059,200 (b)
14,000 J.D. Edwards & Co. 210,875 (b)
11,000 Legato Systems Inc. 166,375 (b)
6,000 Macromedia Inc. 580,125 (b)
679,800 Microsoft Corp. 54,384,000 (b)
18,274 Network Associates Inc. 372,333 (b)
34,000 Parametric Technology Corp. 374,000 (b)
34,200 Peoplesoft Inc. 572,850 (b)
11,000 Rational Software Corp. 1,022,313 (b)
3,900 Shared Medical Systems Corp. 284,456
25,400 Siebel Systems Inc. 4,154,487 (b)
25,000 Total System Services Inc. 396,875
------------
92,901,566
See Accompanying Notes to Financial Statements 29
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Telecommunication Equipment & Services 14.51%
43,800 ADC Telecommunications Inc. $ 3,673,725 (b)
10,000 Advanced Fibre Communications Inc. 453,125 (b)
41,000 Alltel Corp. 2,539,438
19,300 American Tower Corp. 804,569 (b)
199,900 Bell Atlantic Corp. 10,157,419
242,600 BellSouth Corp. 10,340,825
20,000 Comverse Technology Inc. 1,860,000 (b)
74,900 Cox Communications Inc. 3,412,631 (b)
19,450 Crown Castle International Corp. 709,925 (b)
7,000 Harmonic Inc. 173,250 (b)
420,013 Lucent Technologies Inc. 24,885,770
74,000 McLeodUSA Inc. 1,530,875 (b)
98,000 Nextel Communications Inc. 5,996,375 (b)
18,000 NTL Inc. 1,077,750 (b)
8,000 Powerwave Technologies Inc. 352,000 (b)
95,600 Qualcomm Inc. 5,736,000 (b)
97,900 Qwest Communications International Inc. 4,864,406 (b)
10,600 RF Micro Devices Inc. 928,825 (b)
439,264 SBC Communications Inc. 18,998,168
21,000 Scientific-Atlanta Inc. 1,564,500
118,000 Sprint Corp. (PCS Group) 7,021,000 (b)
4,300 Teligent Inc. 101,588 (b)
52,600 Tellabs Inc. 3,599,812 (b)
369,878 WorldCom Inc. 16,968,153 (b)
------------
127,750,129
Transportation 0.34%
37,060 FedEx Corp. 1,408,280 (b)
64,537 Southwest Airlines Co. 1,222,169
6,100 UAL Corp. 354,944
------------
2,985,393
------------
Total Equities (Cost $556,066,846) $874,292,396
30 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Index Fund (cont'd)
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
--------------------------------------------------------------------------------
Short-Term Investments 0.39%
$ 3,433,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 06/30/00 due 07/03/00,
collateralized by $3,435,000
Freddie Mac, 7.00% due
08/28/01 (Market Value of
collateral is $3,503,000)
(Cost $3,433,000) 6.000% 07/03/00 $ 3,433,000
------------
Total Investments (Cost $559,499,846) 99.72% (a) $877,725,396
Other assets, less liabilities 0.28% 2,473,260
------------
Net Assets 100% $880,198,656
============
(a) For Federal income tax purposes, cost is $565,000,142 and
appreciation/(depreciation) is as follows:
Unrealized appreciation: $ 347,501,621
Unrealized depreciation: 34,776,367
--------------------------------------------------------------------------
Net unrealized appreciation: 312,725,254
(b) Non-income producing security.
(c) On June 30, 2000, the Fund owned the following restricted securities
constituting 0.04% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are valued
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Trust's Board of Trustees.
Additional information on the securities is as follows:
<TABLE>
<CAPTION>
Description Acquisition Date Cost Value
----------------------------------------------------------------------------------
<S> <C> <C> <C>
Energia Global International Limited,
Series A Conv. Pfd. March 3, 1995 $ 250,000 $ 330,716
Vulcan Power Company, Class A March 3, 1995 300,000 0
</TABLE>
See Accompanying Notes to Financial Statements 31
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Emerging Growth Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Equities 93.65%
Commercial Services 3.72%
288,960 Convergys Corp. $ 14,989,800 (b)
-------------
14,989,800
Computers 8.56%
147,700 Extreme Networks Inc. 15,582,350 (b)
1,147,020 Maxtor Corp. 12,115,399 (b)
110,700 Sandisk Corp. 6,773,455 (b)
-------------
34,471,204
Consumer Products - Miscellaneous 3.14%
188,500 Avery Dennison Corp. 12,653,063
-------------
12,653,063
Electronics 22.42%
325,000 Atmel Corp. 11,984,375 (b)
125,160 Chartered Semiconductor
Manufacturing Ltd. 11,264,400
265,700 Credence Systems Corp. 14,663,319 (b)
312,840 Fairchild Semiconductor
International Inc. 12,670,020 (b)
218,380 LSI Logic Corp. 11,819,817 (b)
232,500 Millipore Corp. 17,524,688
181,100 Sawtek Inc. 10,424,569 (b)
-------------
90,351,188
Energy & Utilities 2.79%
164,200 Dynegy Inc. 11,216,913
-------------
11,216,913
Finance & Insurance 6.03%
250,000 Capital One Financial Corp. 11,156,250
288,640 MGIC Investment Corp. 13,133,120
-------------
24,289,370
Machines & Tools 7.74%
253,700 Kulicke & Soffa Industries Inc. 15,063,438 (b)
133,330 SPX Corp. 16,124,596 (b)
-------------
31,188,034
32 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Emerging Growth Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Pharmaceuticals 0.66%
35,840 Medimmune Inc. $ 2,652,160 (b)
-------------
2,652,160
Retail 9.66%
387,400 Brinker International Inc. 11,331,450 (b)
734,800 Limited Inc. 15,890,050
432,000 Linens 'n Things Inc. 11,718,000 (b)
-------------
38,939,500
Software 10.12%
133,230 Alteon Websystems Inc. 13,331,327 (b)
252,700 Intuit Inc. 10,455,463 (b)
148,300 Mercury Interactive Corp. 14,348,025 (b)
130,720 Network Associates Inc. 2,663,420 (b)
-------------
40,798,235
Telecommunication Equipment & Services 18.81%
294,580 Aspect Communications Corp. 11,580,676 (b)
158,380 Copper Mountain Networks Inc. 13,957,238 (b)
298,140 Crown Castle International Corp. 10,882,110
198,300 Nextel Partners Inc. 6,457,144 (b)
211,900 Powerwave Technologies Inc. 9,323,600 (b)
170,550 Scientific-Atlanta Inc. 12,705,974
384,160 Spectrasite Holdings Inc. 10,900,540 (b)
-------------
75,807,282
-------------
Total Equities (Cost $320,517,882) 377,356,749
See Accompanying Notes to Financial Statements 33
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Emerging Growth Fund (cont'd)
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
--------------------------------------------------------------------------------
Short-Term Investments 12.03%
$48,479,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 06/30/00 due 07/03/00,
collateralized by $50,140,000
Freddie Mac, 5.40% due
11/17/03 (Market Value of
collateral is $49,450,575)
(Cost $48,479,000) 6.000% 07/03/00 $ 48,479,000
------------
Total Investments (Cost $368,996,882) 105.68% (a) $425,835,749
Liabilities in excess of other assets (5.68%) (22,873,969)
------------
Net Assets 100% $402,961,780
============
(a) For Federal income tax purposes, cost is $369,488,322 and
appreciation/(depreciation) is as follows:
Unrealized appreciation: $ 68,723,243
Unrealized depreciation: 12,375,816
----------------------------------------------------------------------------
Net unrealized appreciation: 56,347,427
(b) Non-income producing security.
34 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Equities 98.12%
Advertising 1.09%
650 Catalina Marketing Corp. $ 66,300 (b)
550 Netcreations Inc. 25,197 (b)
----------
91,497
Chemicals 0.61%
970 Spartech Corp. 26,190
820 Lilly Industries Inc. 24,651
----------
50,841
Commercial Services & Equipment 11.60%
310 Actrade International Ltd. 6,355 (b)
460 AHL Services Inc. 2,817 (b)
520 Albany Molecular Research Inc. 28,307 (b)
770 Ameripath Inc. 6,834 (b)
2,670 Apollo Group Inc. 74,760 (b)
340 Career Education Corp. 16,490 (b)
400 Consolidated Graphics Inc. 3,750 (b)
240 Corvel Corp. 5,925 (b)
1,020 Education Management Corp. 18,424 (b)
1,350 Fastenal Co. 68,344
530 F.Y.I. Inc. 17,854 (b)
730 Forrester Research Inc. 53,153 (b)
680 Global Imaging Systems Inc. 7,140 (b)
460 Hall Kinion & Associates Inc. 15,324 (b)
2,130 Hon Industries Inc. 50,055
2,350 Hooper Holmes Inc. 18,800
2,260 Interim Services Inc. 40,115 (b)
1,520 Labor Ready Inc. 10,070 (b)
500 Lason Inc. 1,250 (b)
310 Meta Group Inc. 5,967 (b)
410 Mobile Mini Inc. 9,046 (b)
1,800 Nationsrent Inc. 6,862 (b)
910 NCO Group Inc. 21,044 (b)
280 New Horizons Worldwide Inc. 6,506 (b)
780 On Assignment Inc. 23,790 (b)
680 Personnel Group of America Inc. 1,997 (b)
645 Plexus Corp. 72,885 (b)
800 Prepaid Legal Services Inc. 23,900 (b)
1,760 Profit Recovery Group International Inc. 29,260 (b)
2,045 Quanta Services Inc. 112,475 (b)
630 Source Information Management Co. 9,608 (b)
500 Startek Inc. 25,188 (b)
1,480 Sylvan Learning Systems Inc. 20,350 (b)
1,390 Tetra Tech Inc. 31,796 (b)
See Accompanying Notes to Financial Statements 35
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Commercial Services & Equipment (cont'd)
2,560 United Rentals Inc. $ 43,840 (b)
870 Watsco Inc. 10,875
1,430 Wireless Facilities Inc. 72,841 (b)
----------
973,997
Computers 9.66%
350 4Front Technologies Inc. 4,200 (b)
1,820 Advanced Digital Info Corp. 29,006 (b)
1,760 Affiliated Computer Services Inc. 58,190 (b)
750 Apex Inc. 32,813 (b)
250 Aspeon Inc. 1,219 (b)
560 autobytel.com inc. 3,448 (b)
695 Black Box Corp. 55,024 (b)
430 Brooktrout Inc. 9,379 (b)
1,340 Complete Business Solutions Inc. 23,534 (b)
680 Cybex Computer Products Corp. 29,240 (b)
1,990 Electronics For Imaging Inc. 50,372 (b)
250 Hauppauge Digital Inc. 2,422 (b)
1,450 Henry (Jack) & Associates Inc. 72,681
820 InFocus Corp. 26,394 (b)
970 Intervoice-Brite Inc. 6,366 (b)
2,550 IXL Enterprises Inc. 36,975 (b)
445 Kronos Inc. 11,570 (b)
430 MCSI Inc. 11,126 (b)
420 Media 100 Inc. 10,815 (b)
410 Metro Information Services Inc. 4,100 (b)
610 Micros Systems Inc. 11,323 (b)
1,140 National Computer Systems Inc. 56,145
370 Performance Technologies Inc. 3,145 (b)
1,250 Polycom Inc. 117,617 (b)
600 Radisys Corp. 34,050 (b)
710 Smartdisk Corp. 19,525 (b)
890 Visual Networks Inc. 25,365 (b)
1,060 XirCom Inc. 50,350 (b)
1,130 Zomax Inc. 14,831 (b)
----------
811,225
Construction & Housing 0.59%
370 EmCor Group Inc. 8,579 (b)
670 Monaco Coach Corp. 9,129 (b)
260 National R.V. Holdings Inc. 2,730 (b)
640 NCI Building Systems Inc. 12,960 (b)
380 Nortek Inc. 7,505 (b)
570 URS Corp. 8,693 (b)
----------
49,596
36 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Consumer Durables 1.55%
250 American Woodmark Corp. $ 5,125
1,710 Blyth Inc. 50,445 (b)
490 Central Garden & Pet Co. 4,395 (b)
1,400 Ethan Allen Interiors Inc. 33,600
1,140 Fossil Inc. 22,159 (b)
400 Salton Inc. 14,750 (b)
----------
130,474
Electronics 13.21%
400 Alpine Group Inc. 2,700 (b)
670 American XTAL Technology Inc. 28,977 (b)
1,060 Anadigics Inc. 36,106 (b)
1,000 ATMI Inc. 46,500 (b)
370 Bel Fuse Inc. 9,990 (b)
920 C&D Technologies Inc. 51,980
430 California Amplifier Inc. 19,672 (b)
990 CTS Corp. 44,550
2,135 Dallas Semiconductor Corp. 87,001
230 Diodes Inc. 9,861 (b)
780 Dionex Corp. 20,865 (b)
680 Elantec Semiconductor Inc. 47,345 (b)
950 Electro Scientific Industries Inc. 41,830 (b)
400 Excel Technology Inc. 20,125 (b)
310 HI/FN Inc. 13,756 (b)
400 Interlink Electronics Inc. 16,750 (b)
260 Intest Corp. 3,868 (b)
695 Littelfuse Inc. 34,055 (b)
345 Molecular Devices Corp. 23,870 (b)
400 Nanometrics Inc. 16,475 (b)
420 Pericom Semiconductor Corp. 28,560 (b)
780 PLX Technology Inc. 32,370 (b)
1,180 Power-One Inc. 134,446 (b)
1,160 Semtech Corp. 88,722 (b)
1,200 SLI Inc. 14,550
580 Technitrol Inc. 56,188
1,427 Transwitch Corp. 110,147 (b)
1,100 Varian Semiconductor Equipment
Associates Inc. 69,094 (b)
----------
1,110,353
Environmental Control 0.33%
530 Stericycle Inc. 12,720 (b)
760 Waste Connections Inc. 15,010 (b)
----------
27,730
See Accompanying Notes to Financial Statements 37
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Finance & Insurance 6.18%
790 Affiliated Managers Group Inc. $ 35,945 (b)
1,320 Arthur J. Gallagher & Co. 55,440
5,230 Banknorth Group Inc. 80,084
1,860 Cullen/Frost Bankers Inc. 48,941
420 E. W. Blanch Holdings Inc. 8,531
2,250 First American Corp. 32,203
1,050 Investors Financial Services Corp. 41,672
270 Markel Corp. 38,239 (b)
832 Medical Assurance Inc. 9,360 (b)
630 National Discount Brokers Group Inc. 20,081 (b)
740 Queens County BanCorp Inc. 13,644
1,030 Richmond County Financial Corp. 19,699
1,000 Southwest BanCorp of Texas 20,750 (b)
420 Triad Guaranty Inc. 9,634 (b)
2,450 Trustmark Corp. 42,722
300 UCBH Holdings Inc. 8,006
1,290 Westamerica BanCorp 33,701
----------
518,652
Food & Beverages 0.92%
650 American Italian Pasta Co. 13,447 (b)
1,030 Hain Celestial Group Inc. 37,788 (b)
490 Performance Food Group Co. 15,680 (b)
820 Wild Oats Markets Inc. 10,301 (b)
----------
77,216
Health Care & Personal Care 4.55%
760 Advance Paradigm Inc. 15,580 (b)
325 Candela Corp. 2,966 (b)
340 Chattem Inc. 4,654 (b)
210 Immucor Inc. 1,181 (b)
310 Impath Inc. 16,817 (b)
2,380 NBTY Inc. 15,172 (b)
3,270 Omnicare Inc. 29,634
1,720 Orthodontic Centers of America Inc. 38,915 (b)
400 Osteotech Inc. 4,200 (b)
1,190 Patterson Dental Co. 60,690 (b)
470 Polymedica Corp. 20,328 (b)
520 Rehabcare Group Inc. 14,170 (b)
1,600 Renal Care Group Inc. 39,125 (b)
2,400 Steris Corp. 21,300 (b)
1,070 Universal Health Services Inc. 70,085 (b)
3,230 U.S. Oncology Inc. 16,150 (b)
780 Veterinary Centers of America Inc. 10,725 (b)
----------
381,692
38 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Machines & Tools 0.82%
1,010 Advanced Energy Industries Inc. $ 59,527 (b)
790 Gerber Scientific Inc. 9,085
----------
68,612
Media 1.44%
1,310 Citadel Communications Corp. 45,768 (b)
1,010 Cumulus Media Inc. 9,216 (b)
410 IDG Books Worldwide Inc. 3,716 (b)
360 Launch Media Inc. 3,330 (b)
790 Radio One Inc. 23,354 (b)
520 Saga Communications Inc. 11,440 (b)
1,150 Spanish Broadcasting Systems Inc. 23,647 (b)
----------
120,471
Manufacturing - Miscellaneous 0.51%
1,630 Donaldson Co., Inc. 32,193
1,140 Polymer Group Inc. 10,545
----------
42,738
Pharmaceuticals 6.56%
490 Accredo Health Inc. 16,936 (b)
535 Alexion Pharmaceuticals Inc. 38,252 (b)
1,230 Alpharma Inc. 76,567
1,935 Bio-Technology General Corp. 25,518 (b)
655 CV Therapeutics Inc. 45,400 (b)
540 Entremed Inc. 16,166 (b)
2,327 Jones Pharma Inc. 92,935
370 Myriad Genetics Inc. 54,789 (b)
680 Nanogen Inc. 28,858 (b)
770 Noven Pharmaceuticals Inc. 23,148 (b)
1,210 Organogenesis Inc. 13,839 (b)
790 Priority Healthcare Corp. 58,707 (b)
365 Progenics Pharmaceuticals Inc. 5,201 (b)
440 Syncor International Corp. 31,680 (b)
1,050 Theragenics Corp. 8,991 (b)
700 Vical Inc. 13,475 (b)
----------
550,462
See Accompanying Notes to Financial Statements 39
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Real Estate Investment & Management 1.47%
3,380 Extended Stay America Inc. $ 31,265 (b)
1,710 Pinnacle Holdings Inc. 92,340 (b)
----------
123,605
Retail 14.25%
800 1-800-Flowers.Com Inc. 4,100 (b)
1,193 99 Cents Only Stores 47,571 (b)
3,620 Abercrombie & Fitch Co. 44,119 (b)
1,660 American Eagle Outfitters Inc. 23,240 (b)
950 Applebee's International Inc. 28,797
2,330 Barnes & Noble Inc. 51,842 (b)
2,610 BJ's Wholesale Club Inc. 86,130 (b)
610 Chico's FAS Inc. 12,200 (b)
910 The Children's Place Retail Stores Inc. 18,655 (b)
1,820 Claire's Stores Inc. 35,035
1,910 Copart Inc. 30,560 (b)
730 Cost Plus Inc. 20,942 (b)
780 Guitar Center Inc. 8,190 (b)
350 Hot Topic Inc. 11,200 (b)
830 Hughes Supply Inc. 16,392
710 IHOP Corp. 11,892 (b)
940 Insight Enterprises Inc. 55,754 (b)
670 Jakks Pacific Inc. 9,882 (b)
750 Kenneth Cole Productions Inc. 30,000 (b)
1,070 Lands' End Inc. 35,711 (b)
1,410 Linens 'n Things Inc. 38,246 (b)
1,400 Longs Drug Stores Corp. 30,450
1,100 Michaels Stores Inc. 50,394 (b)
1,730 Neiman Marcus Group Inc. 51,143 (b)
1,810 O'Reilly Automotive Inc. 25,114 (b)
1,120 Pacific Sunwear of California Inc. 21,000 (b)
910 Papa John's International Inc. 22,295 (b)
840 PC Connection Inc. 47,880 (b)
800 Quiksilver Inc. 12,450 (b)
1,450 Regis Corp. 18,125
5,080 Saks Inc. 53,340 (b)
200 Scansource Inc. 7,775 (b)
620 School Specialty Inc. 11,509 (b)
1,050 Shopko Stores Inc. 16,144 (b)
1,080 Sonic Automotive Inc. 11,543 (b)
640 Sonic Corp. 18,800 (b)
1,850 Tech Data Corp. 80,591 (b)
740 The Buckle Inc. 8,695 (b)
3,360 Tommy Hilfiger Corp. 25,200 (b)
2,000 Williams-Sonoma Inc. 64,875 (b)
----------
1,197,781
40 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Software 10.60%
270 Active Voice Corp. $ 2,160 (b)
3,070 Acxiom Corp. 83,658 (b)
490 Ansys Inc. 5,574 (b)
960 AVT Corp. 7,080 (b)
575 Concord Communications Inc. 22,928 (b)
730 Datastream Systems Inc. 9,125 (b)
500 Deltek Systems Inc. 2,953 (b)
1,390 Dendrite International Inc. 46,304 (b)
390 DSET Corp. 11,846 (b)
400 eCollege.com 1,750 (b)
295 Eplus Inc. 7,799 (b)
1,340 Express Scripts Inc. 83,248 (b)
760 F5 Networks Inc. 41,468 (b)
510 Fair Isaac & Co., Inc. 22,440
1,210 Filenet Corp. 22,234 (b)
710 Great Plains Software Inc. 13,934 (b)
1,150 Hyperion Solutions Corp. 37,303 (b)
1,360 IMRglobal Corp. 17,765 (b)
1,205 Indus International Inc. 10,318 (b)
410 Intercept Group Inc. 6,970 (b)
510 Mapics Inc. 2,932 (b)
825 Marimba Inc. 11,498 (b)
970 NetObjects Inc. 8,851 (b)
655 Novadigm Inc. 12,936 (b)
1,280 Onyx Software Corp. 38,000 (b)
900 OTG Software Inc. 25,706 (b)
1,780 Pinnacle Systems Inc. 40,022 (b)
1,270 Progress Software Corp. 22,781 (b)
750 Ramp Networks Inc. 8,906 (b)
1,105 Remedy Corp. 61,604 (b)
1,390 Serena Software Inc. 63,115 (b)
2,110 Symantec Corp. 113,808 (b)
360 Timberline Software Corp. 2,632
1,170 Transaction Systems Architects Inc. 20,036 (b)
----------
889,684
Telecommunication Equipment & Services 9.92%
370 Altigen Communications Inc. 2,197 (b)
795 Aware Inc. 40,644 (b)
860 Carrier Access Corp. 45,472 (b)
1,200 C-Cor.Net Corp. 32,400 (b)
1,810 Commscope Inc. 74,210 (b)
See Accompanying Notes to Financial Statements 41
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Telecommunication Equipment & Services (cont'd)
630 Corsair Communications Inc. $ 18,113 (b)
1,030 Digital Lightwave Inc. 103,515 (b)
1,000 Ditech Communications Corp. 94,563 (b)
1,610 INET Technologies Inc. 87,343 (b)
1,080 International Fibercom Inc. 27,540 (b)
600 Lightbridge Inc. 14,325 (b)
690 MCK Communications Inc. 15,956 (b)
1,060 MGC Communications Inc. 63,534 (b)
570 Plantronics Inc. 65,835 (b)
1,310 Primus Telecommunications Group, Inc. 32,586 (b)
540 Symmetricom Inc. 13,635 (b)
460 Tollgrade Communications Inc. 60,950 (b)
510 Tut Systems Inc. 29,261 (b)
370 U.S. LEC Corp. 6,290 (b)
150 Xeta Technologies Inc. 4,678 (b)
----------
833,047
Transportation 2.26%
660 Atlantic Coast Airlines Holdings, Inc. 20,955 (b)
1,810 Expeditors International of Washington Inc. 85,975
630 Frontier Airlines Inc. 9,017 (b)
460 Knight Transportation Inc. 6,699 (b)
500 RailAmerica Inc. 3,187 (b)
870 Skywest Inc. 32,244
2,240 Swift Transportation Co., Inc. 31,360 (b)
----------
189,437
----------
Total Equities (Cost $7,623,296) 8,239,110
42 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Small Cap Index Fund (cont'd)
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
--------------------------------------------------------------------------------
Short-Term Investments 13.57%
$ 1,140,000 Fannie Mae Discount Note
(Cost $1,139,586) 6.530% 07/03/00 $ 1,139,586
-----------
Total Investments (Cost $8,762,882) 111.69% (a) $ 9,378,696
Liabilities in excess of other assets (11.69%) (981,922)
-----------
Net Assets 100% $ 8,396,774
===========
(a) For Federal income tax purposes, cost is $8,774,334 and
appreciation/(depreciation) is as follows:
Unrealized appreciation: $ 1,166,499
Unrealized depreciation: 562,137
----------------------------------------------------------------------------
Net unrealized appreciation: 604,362
(b) Non-income producing security.
See Accompanying Notes to Financial Statements 43
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Global Equity Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Equities 90.95%
Brazil 0.31%
48,400 Tele Norte Leste Participacoes SA (ADR)
(Telecommunication Equipment & Services) $ 1,143,450
------------
1,143,450
Canada 2.45%
50,000 Ballard Power Systems Inc.
(Industrials & Capital Goods) 4,490,625 (b)
66,000 Nortel Networks Corp.
(Telecommunication Equipment & Services) 4,504,500
------------
8,995,125
Denmark 4.82%
34,500 Group 4 Falck A/S (Commercial Services) 5,535,397
78,000 ISS A/S (Commercial Services) 5,938,048 (b)
170,000 Vestas Wind Systems A/S
(Industrials & Capital Goods) 6,242,563
------------
17,716,008
Finland 3.79%
692,000 Aldata Solutions Oyj (Software) 4,690,634 (b)
210,000 Comptel Oyj (Software) 4,230,278
100,000 Nokia Corp. (ADR)
(Telecommunication Equipment & Services) 4,993,750
------------
13,914,662
France 5.48%
48,750 AXA (Finance & Insurance) 7,679,371
60,000 Carrefour SA (Retail) 4,101,393
158,000 Havas Advertising (Media) 3,612,682
75,000 STMicroelectronics N.V. (Electronics) 4,725,767
------------
20,119,213
Germany 2.15%
42,000 Depfa Deutsche Pfandbriefban
(Finance & Insurance) 4,214,238
40,000 Software AG (Software) 3,704,238
------------
7,918,476
Hong Kong 1.40%
450,000 HSBC Holdings PLC (Finance & Insurance) 5,152,011
------------
5,152,011
44 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Global Equity Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Ireland 2.04%
155,000 Elan Corp. PLC (ADR) (Pharmaceuticals) $ 7,507,816 (b)
------------
7,507,816
Italy 2.05%
300,000 Acea SPA (Energy & Utilities) 4,780,185
350,000 Bipop-Carire SPA (Finance & Insurance) 2,753,356
------------
7,533,541
Japan 8.01%
27,000 Aiful Corp. (Finance & Insurance) 2,488,667
91,000 Canon Inc. (Office Equipment & Services) 4,528,345
140 NTT Docomo Inc.
(Telecommunication Equipment & Services) 3,786,815
360,000 Nippon Sheet Glass Co.
(Construction & Housing) 5,001,084
75,000 Shin-Etsu Chemical Co. (Chemicals) 3,802,837
8,000 Softbank Corp. (Software) 1,085,717
40,000 Sony Corp. (Electronics) 3,732,152
80,000 Taiyo Yuden Co. Ltd. (Electronics) 5,006,361
------------
29,431,978
Mexico 2.57%
43,000 Grupo Televisa SA (GDR) (Media) 2,964,312 (b)
60,000 Telefonos De Mexico (ADR)
(Telecommunication Equipment & Services) 3,427,500
1,300,000 Walmart De Mexico (Retail) 3,049,970 (b)
------------
9,441,782
Netherlands 2.51%
75,000 Koninklijke Numico N.V. (Food & Beverages) 3,558,645
120,000 Philips Electronics N.V. (Electronics) 5,659,464
------------
9,218,109
Singapore 1.02%
240,000 Singapore Press Holdings (Media) 3,752,171
------------
3,752,171
Spain 2.62%
500,000 Banco Santander Central
Hispano SA (Finance & Insurance) 5,274,719
201,936 Telefonica SA
(Telecommunication Equipment & Services) 4,337,739 (b)
------------
9,612,458
See Accompanying Notes to Financial Statements 45
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Global Equity Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
Sweden 3.21%
200,000 Ericsson LM
(Telecommunication Equipment & Services) $ 3,956,916
391,900 HIQ International AB (Software) 3,776,819
153,000 Skandia Forsakrings AB
(Finance & Insurance) 4,041,837
------------
11,775,572
Switzerland 1.39%
6,000 Adecco SA (Commercial Services) 5,097,775 (b)
------------
5,097,775
Taiwan 1.27%
120,000 Taiwan Semiconductor (ADR) (Electronics) 4,650,000 (b)
------------
4,650,000
United Kingdom 8.81%
490,000 Arm Holdings PLC (Electronics) 5,249,245 (b)
90,000 Colt Telecom Group PLC
(Telecommunication Equipment & Services) 2,995,937 (b)
204,000 Glaxo Wellcome PLC (Pharmaceuticals) 5,948,116
280,000 Prudential PLC (Finance & Insurance) 4,101,105
350,000 Reuters Group PLC (Media) 5,968,422
230,000 Sema Group PLC (Software) 3,271,322
50,000 Vodafone Airtouch PLC (ADR)
(Telecommunication Equipment & Services) 2,071,875 (b)
682,025 Vodafone Airtouch PLC
(Telecommunication Equipment & Services) 2,755,364
------------
32,361,386
United States 35.05%
180,000 AES Corp. (Energy & Utilities) 8,212,500 (b)
100,000 Amgen Inc. (Pharmaceuticals) 7,025,000 (b)
67,000 Ariba Inc. (Software) 6,569,141 (b)
155,000 Bank of New York Co., Inc.
(Finance & Insurance) 7,207,500
80,000 Cisco Systems Inc. (Computers) 5,085,000 (b)
85,000 Citigroup Inc. (Finance & Insurance) 5,121,250
44,000 Clear Channel Communications Inc. (Media) 3,300,000
50,000 The Coca-Cola Co. (Food & Beverages) 2,871,875
70,000 El Paso Energy Corp. (Energy & Utilities) 3,586,625
60,000 EMC Corp. (Computers) 4,616,250 (b)
101,250 Home Depot Inc. (Retail) 5,056,171
39,000 Intel Corp. (Electronics) 5,213,813
62,000 JDS Uniphase Corp.
(Telecommunication Equipment & Services) 7,432,250 (b)
168,000 McLeodUSA Inc.
(Telecommunication Equipment & Services) 3,475,500 (b)
142,000 Medtronic Inc.
(Health Care & Personal Care) 7,073,375
46 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Global Equity Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
--------------------------------------------------------------------------------
United States (cont'd)
155,000 Mellon Financial Corp.
(Finance & Insurance) $ 5,647,813
75,000 Merck & Co., Inc. (Pharmaceuticals) 5,746,875
60,000 Network Appliance Inc. (Computers) 4,830,000 (b)
68,000 Nextel Communications Inc.
(Telecommunication Equipment & Services) 4,160,750 (b)
125,000 Qwest Communications International Inc.
(Telecommunication Equipment & Services) 6,210,935 (b)
40,000 Sun Microsystems Inc. (Computers) 3,637,500 (b)
60,000 Time Warner Inc. (Media) 4,560,000
170,000 Williams Companies Inc.
(Energy & Utilities) 7,086,875
110,000 Worldcom Inc.
(Telecommunication Equipment & Services) 5,046,250 (b)
------------
128,773,248
------------
Total Equities (Cost $276,721,047) 334,114,781
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
--------------------------------------------------------------------------------
Short-Term Investments 11.18%
$ 41,057,000 Repurchase Agreements with
State Street Bank & Trust Co.
Dated 6/30/00 due 7/3/00,
collateralized by $44,060,000
Freddie Mac, 5.82% due
05/06/09, and $1,200,000
Freddie Mac, 5.40% due
11/17/03 (Market Value of
collateral is $41,883,925)
(Cost $41,057,000) 6.000% 07/03/00 $ 41,057,000
-------------
Total Investments (Cost $317,778,047) 102.13% (a) $ 375,171,781
Liabilities in excess of other assets (2.13%) (7,809,333)
-------------
Net Assets 100% $ 367,362,448
(a) For Federal income tax purposes, book cost and tax cost are equal and
appreciation/(depreciation) is as follows:
Unrealized appreciation: $ 69,081,186
Unrealized depreciation: 11,687,452
----------------------------------------------------------------------------
Net unrealized appreciation: 57,393,734
(b) Non-income producing security.
Abbreviations:
ADR - American Depository Receipt
GDR - Global Depository Receipt
See Accompanying Notes to Financial Statements 47
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Global Equity Fund (cont'd)
The Fund's Statement of Investments as of June 30, 2000, was distibuted among
the following industries:
Percentage of Net Assets*
--------------------------------
Short-Term
Equity & Other Total
------ ---------- ------
Chemicals 1.04% 1.04%
Commercial Services 4.51% 4.51%
Computers 4.95% 4.95%
Construction & Housing 1.36% 1.36%
Electronics 9.32% 9.32%
Energy & Utilities 6.44% 6.44%
Finance & Insurance 14.61% 14.61%
Food & Beverages 1.75% 1.75%
Health Care & Personal Care 1.93% 1.93%
Industrial & Capital Goods 2.92% 2.92%
Media 6.58% 6.58%
Office Equipment & Services 1.23% 1.23%
Pharmaceuticals 7.14% 7.14%
Retail 3.32% 3.32%
Software 7.43% 7.43%
Telecommunication Equipment & Services 16.42% 16.42%
Cash & Other 9.05% 9.05%
------ ----- -------
90.95% 9.05% 100.00%
*Percentages are based on net assets of $367,362,448
48 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Income Fund
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Bonds 64.83%
Commercial Services 3.99%
$ 1,000,000 Primark Corp. 9.250% 12/15/08 $ 1,100,000
900,000 United Rentals Inc. 9.500% 06/01/08 828,000
600,000 United Rentals Inc. 9.250% 01/15/09 541,500
-----------
2,469,500
Computers 1.48%
1,000,000 Apple Computer Inc. 6.500% 02/15/04 912,500
-----------
912,500
Construction & Housing 1.55%
1,000,000 Toll Corp. 8.750% 11/15/06 957,500
-----------
957,500
Electronics 1.67%
1,000,000 Advanced Micro Devices Inc. 11.000% 08/01/03 1,032,500
-----------
1,032,500
Finance & Insurance 20.25%
680,000 Abbey National PLC 6.700% 06/29/49 612,993
1,320,000 Abbey National PLC 7.350% 10/29/49 1,242,455
100,000 Bank One Corp. 7.250% 08/15/04 99,287
250,000 Countrywide Capital 8.000% 12/15/26 206,795
500,000 Credit Suisse First Boston-144A 7.900% 05/01/07 463,299
645,149 DLJ Mortgage Acceptance Corp. 6.614% 05/25/09 612,286
1,968,038 DLJ Commercial Mortgage Corp. 6.110% 12/10/07 1,880,386
1,250,000 First Republic Bank of San Francisco 7.750% 09/15/12 1,046,594
750,000 First Union Lehman Brothers
Mortgage Trust 6.650% 12/18/07 715,989
500,000 Keycorp Institutional Capital 7.826% 12/01/26 425,435
800,000 Lehman Brothers Inc. 7.360% 12/15/03 787,917
700,000 Lehman Brothers Inc. 8.050% 01/15/19 678,622
650,000 Lehman Brothers Inc. 7.730% 10/15/23 599,717
50,000 MBIA Inc. 9.000% 02/15/01 50,488
1,500,000 Morgan Stanley Capital Inc. 6.550% 12/15/07 1,429,530
1,000,000 Sovereign Bancorp Inc. 10.500% 11/15/06 987,500
750,000 Williams Scotsman Inc. 9.875% 06/01/07 682,500
-----------
12,521,793
Food & Beverages 2.77%
1,000,000 Kroger Co. 6.340% 06/01/01 990,129
690,458 Smiths Food and Drug Centers Inc. 8.640% 07/02/12 719,988
-----------
1,710,117
</TABLE>
See Accompanying Notes to Financial Statements 49
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Health Care 2.48%
$ 50,000 Kaiser Foundation Health Plan 9.000% 11/01/01 $ 51,359
1,500,000 Universal Health Services Inc. 8.750% 08/15/05 1,485,000
-----------
1,536,359
Hotels 2.21%
1,550,000 John Q. Hammons Hotels Inc. 8.875% 02/15/04 1,364,000
-----------
1,364,000
Media 9.93%
170,901 Adelphia Communications Corp. 9.500% 02/15/04 164,919
1,000,000 Chancellor Media Corp. 8.750% 06/15/07 1,002,500
500,000 Chancellor Media Corp. 8.000% 11/01/08 503,125
500,000 Jones Intercable Inc. 9.625% 03/15/02 516,250
750,000 Jones Intercable Inc. 7.625% 04/15/08 732,188
500,000 Rogers Communications Inc. 9.125% 01/15/06 490,000
1,400,000 Time Warner Inc. 9.125% 01/15/13 1,519,350
750,000 Turner Broadcasting Systems Inc. 8.400% 02/01/24 743,618
1,000,000 United-Pan Europe Communications N.V.
(Step bond, coupon 13.75% after 02/01/05) 0.000% 02/01/10 470,000
-----------
6,141,950
Real Estate 4.23%
1,000,000 Property Trust of America 6.875% 02/15/08 954,879
500,000 Security Capital Pacific Inc. 7.900% 02/15/16 471,148
1,300,000 Weingarten Realty Investors 6.880% 06/25/27 1,189,247
-----------
2,615,274
Retail 2.06%
750,000 Buhrmann U.S. Inc. 12.250% 11/01/09 787,500
600,000 Levi Strauss & Co. 6.800% 11/01/03 489,000
-----------
1,276,500
Telecommunication Equipment & Services 9.39%
1,000,000 Flag Telecom Holdings Ltd. 11.625% 03/30/10 970,000
1,000,000 Global Crossing Holdings Ltd. 9.125% 11/15/06 957,500
1,000,000 Nextel Communications Inc.
(Step bond, coupon 9.75% after 10/31/02) 0.000% 10/31/07 742,500
500,000 Nextel Communications Inc. 12.000% 11/01/08 531,250
1,000,000 Mastec Inc. 7.750% 02/01/08 920,000
2,000,000 Qwest Communications International Inc.
(Step bond, coupon 9.47% after 10/15/02) 0.000% 10/15/07 1,680,000
-----------
5,801,250
</TABLE>
50 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation 2.82%
$ 882,387 Federal Express Corp. 6.720% 01/15/22 $ 805,028
1,000,000 Railworks Corp. 11.500% 04/15/09 940,000
-----------
1,745,028
-----------
Total Corporate Bonds (Cost $41,690,592) 40,084,271
</TABLE>
<TABLE>
<CAPTION>
Number of Shares Value
(% of net assets) Security Description (Note 1)
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Convertible Preferred Stock 3.32%
Commercial Services 0.32%
7,200 United Rentals Trust Inc.-144A
Callable into common stock $ 194,400
-----------
194,400
Finance & Insurance 0.71%
500 First Republic Preferred Capital
Corp.-144A
Mandatory exchange into preferred
shares of First Republic Bank under
certain circumstances 440,000
-----------
440,000
Real Estate 2.29%
10,000 Equity Office Properties Trust
Callable into common stock 410,000
59,200 Felcor Lodging Trust Inc.
Callable into common stock 1,006,400
-----------
1,416,400
-----------
Total Convertible Preferred Stock (Cost $2,505,850) 2,050,800
Preferred Stock 1.63%
Telecommunication Equipment & Services 1.63%
1,000 IXC Communications Inc.
(Cost $1,096,875) 1,010,000
-----------
1,010,000
</TABLE>
See Accompanying Notes to Financial Statements 51
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Agencies 24.64%
Fannie Mae 15.34%
$ 1,971,422 Fannie Mae 7.000% 03/18/07 $ 1,952,319
1,993,925 Fannie Mae 6.000% 07/18/10 1,916,181
1,823,352 Fannie Mae 6.500% 12/01/28 1,724,683
1,490,187 Fannie Mae 7.000% 01/01/30 1,438,264
254,114 Fannie Mae - REMIC 8.000% 07/25/06 256,251
319,830 Fannie Mae - REMIC 7.000% 04/25/21 318,563
1,864,940 Fannie Mae - REMIC 8.000% 05/25/21 1,878,109
-----------
9,484,370
Freddie Mac 6.75%
4,800,000 Freddie Mac 5.550% 11/15/27 4,172,359
-----------
4,172,359
Government National Mortgage Association 2.55%
56,769 Government National Mortgage Association 7.000% 04/15/07 56,408
95,475 Government National Mortgage Association 6.000% 08/15/08 92,744
64,640 Government National Mortgage Association 9.000% 05/15/09 66,586
12,409 Government National Mortgage Association 9.000% 11/15/16 12,784
24,737 Government National Mortgage Association 9.000% 02/15/17 25,482
31,354 Government National Mortgage Association 9.500% 03/15/17 32,492
14,104 Government National Mortgage Association 9.500% 09/15/17 14,613
1,561 Government National Mortgage Association 9.000% 10/15/20 1,608
9,348 Government National Mortgage Association 9.000% 11/15/20 9,629
5,040 Government National Mortgage Association 9.000% 04/15/21 5,191
9,716 Government National Mortgage Association 8.500% 06/15/21 9,934
29,957 Government National Mortgage Association 8.000% 12/15/21 30,250
14,754 Government National Mortgage Association 7.000% 03/15/22 14,579
69,215 Government National Mortgage Association 8.000% 05/15/22 69,897
29,828 Government National Mortgage Association 8.000% 09/15/22 30,121
72,886 Government National Mortgage Association 7.000% 10/15/22 71,569
149,118 Government National Mortgage Association 7.000% 10/15/22 146,732
143,906 Government National Mortgage Association 7.000% 06/15/23 141,068
811,807 Government National Mortgage Association 6.000% 03/15/29 750,285
-----------
1,581,972
-----------
Total U.S. Government Agencies (Cost $15,714,896) 15,238,701
</TABLE>
52 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 4.25%
$ 2,628,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 06/30/00 due 07/03/00,
collateralized by $2,905,000
Freddie Mac Discount Note,
5.823% due 05/06/09 (Market
Value of collateral is $2,683,494)
(Cost $2,628,000) 6.000% 07/03/00 $ 2,628,000
-----------
Total Investments (Cost $63,636,213) 98.67% (a) $61,011,772
-----------
Other assets, less liabilities 1.33% 823,728
-----------
Net Assets 100% $61,835,500
===========
</TABLE>
(a) For Federal income tax purposes, book cost and tax cost are equal and
appreciation/(depreciation) is as follows:
Unrealized appreciation: $ 449,954
Unrealized depreciation: 3,074,395
----------------------------------------------------------------------------
Net unrealized depreciation: 2,624,441
See Accompanying Notes to Financial Statements 53
<PAGE>
Statement of Investments -- June 30, 2000
Working Assets Money Market Fund
<TABLE>
<CAPTION>
Par Amount Maturity Value (a)
($ Denominated) Security Description Coupon Date (Note 1)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit 2.50%
$ 100,000 City National Bank of New Jersey 4.740% 03/19/01 $ 100,000 (c)
1,000,000 Deutsche Bank AG New York 6.200% 10/18/00 999,830
2,000,000 Deutsche Bank AG New York 6.700% 02/22/01 1,999,448
100,000 Independence Federal Savings Bank 6.480% 03/30/01 100,000 (c)
100,000 Self Help Credit Union 5.520% 12/16/00 100,000 (c)
100,000 South Shore Bank of Chicago 5.750% 12/18/00 100,000 (c)
-----------
Total Certificates of Deposit (Cost $3,399,278) 3,399,278
Commercial Paper 69.90%
6,120,000 American General Finance Corp. 6.630% 07/13/00 6,106,475
5,000,000 Atlantis One Funding Corp. 6.580% 08/28/00 4,946,994
5,549,000 Bell Atlantic Network Funding 6.500% 07/05/00 5,544,992
5,332,000 BellSouth Telecommunications Inc. 6.520% 07/06/00 5,327,172
3,840,000 Blue Ridge Asset 6.590% 07/12/00 3,832,268
5,280,000 Centric Capital Corp. 6.590% 07/24/00 5,257,770
5,000,000 Citicorp 6.520% 07/07/00 4,994,567
4,000,000 The Coca-Cola Co. 6.580% 07/11/00 3,992,689
1,760,000 Cooperative Association Tractor
Dealers Series A 6.650% 09/05/00 1,738,543
2,896,000 Cooperative Association Tractor
Dealers Series B 7.000% 07/03/00 2,894,874
6,000,000 Countrywide Home Loans Inc. 6.850% 07/12/00 5,987,442
4,996,000 Galaxy Funding Inc. 6.790% 10/04/00 4,906,481
4,600,000 The Gap Inc. 6.500% 07/10/00 4,592,525
4,138,000 Goldman Sachs Group Inc. 6.750% 07/06/00 4,134,121
1,521,000 Goldman Sachs Group Inc. 6.030% 08/24/00 1,507,242
4,261,000 Lucent Technology Inc. 6.480% 07/17/00 4,248,728
1,679,000 Lucent Technology Inc. 6.490% 07/18/00 1,673,854
4,437,000 Nationwide Anglia Building Society 6.570% 07/14/00 4,426,473
1,581,000 Quincy Capital Corp. 6.610% 07/07/00 1,579,258
5,980,000 The Stanley Works 6.550% 08/01/00 5,946,271
568,000 Stellar Funding Group Inc. 6.900% 07/03/00 567,782
365,000 Stellar Funding Group Inc. 7.000% 07/19/00 363,723
4,885,000 Stellar Funding Group Inc. 6.700% 08/18/00 4,841,361
3,292,000 Sweetwater Capital 6.590% 07/11/00 3,285,974
2,435,000 Sweetwater Capital 6.660% 08/14/00 2,415,179
-----------
Total Commercial Paper (Cost $95,112,758) 95,112,758
</TABLE>
54 See Accompanying Notes to Financial Statements
<PAGE>
Statement of Investments -- June 30, 2000
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value (a)
($ Denominated) Security Description Coupon Date (Note 1)
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Notes 10.91%
$ 1,000,000 Abbey National Treasury Services PLC 5.710% 07/28/00 $ 999,971
5,000,000 American Express Centurion Bank 6.620% 06/22/01 5,000,000
1,240,000 Banc One Corp. 6.250% 09/01/00 1,240,114
1,600,000 First Chicago Corp. 6.250% 07/21/00 1,600,068
1,000,000 First Chicago Corp. 9.875% 08/15/00 1,004,339
5,000,000 Huntington National Bank 6.670% 02/09/01 5,001,811
------------
Total Corporate Notes (Cost $14,846,303) 14,846,303
U.S. Government Agencies 8.47%
5,000,000 Freddie Mac 6.288% 11/08/00 5,000,000
1,530,000 Fannie Mae 6.663% 09/06/00 1,529,972
5,000,000 Sallie Mae 6.494% 08/01/00 5,001,490
------------
Total U.S. Government Agencies (Cost $11,531,462) 11,531,462
Variable Rate Demand Notes 6.62%
750,000 City of Bardstown, Kentucky 6.740% 06/01/24 750,000
300,000 Los Angeles California Community
Redevelopment Agency 6.700% 12/01/18 300,000
3,500,000 New York State Housing Finance Agency 6.600% 11/15/29 3,500,000
655,000 Pelican Capital 6.770% 04/01/28 655,000
3,800,000 Redding Life Care LLC 7.050% 10/01/05 3,800,000
------------
Total Variable Rate Demand Notes (Cost $9,005,000) 9,005,000
------------
Total Investments (Cost $133,894,801) 98.40% (b) $133,894,801
Other Assets, less liabilities 1.60% 2,175,769
------------
Net Assets 100% $136,070,570
============
</TABLE>
(a) Investments are valued using the amortized cost method.
(b) Book cost and tax cost are equal.
(c) These securities are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of the
Trust's Board of Trustees.
See Accompanying Notes to Financial Statements 55
<PAGE>
Statements of Assets and Liabilities -- June 30, 2000
Citizens Citizens
Index Emerging Growth
Fund Fund
------------ ---------------
ASSETS
Investments (see accompanying schedule):
Investments at cost $556,066,846 $320,517,882
Repurchase Agreements 3,433,000 48,479,000
Net unrealized appreciation/(depreciation) 318,225,550 56,838,867
------------ ------------
Total investments at value 877,725,396 425,835,749
Cash 11,610 838,844
Receivable for:
Interest 572 8,080
Dividends and withholding tax reclaims 478,234 25,575
Fund shares sold 4,595,343 1,268,136
Investment securities sold 3,998,044 3,753,544
Due from Investment Adviser 38,946 28,955
Other assets 19,819 3,922
------------ ------------
Total Assets 886,867,964 431,762,805
------------ ------------
LIABILITIES
Payable for investment securities purchased 4,415,583 27,668,454
Payable for fund shares repurchased 967,788 433,350
Distributions payable -- --
Due to Custodian -- --
Payable for investment management fees 355,889 317,744
Payable for administrative and shareholder
service fees 317,741 42,174
Payable for distribution expenses 142,738 75,030
Other accrued expenses 469,569 264,273
------------ ------------
Total Liabilities 6,669,308 28,801,025
------------ ------------
NET ASSETS $880,198,656 $402,961,780
============ ============
Standard Class shares
Net assets $699,398,605 $386,670,026
Shares outstanding 21,457,471 11,548,699
Net asset value, offering and redemption
price per share $ 32.59 $ 33.48
------------ ------------
Institutional Class shares
Net assets $180,779,461 $ 16,284,085
Shares outstanding 6,798,643 484,451
Net asset value, offering and redemption
price per share $ 26.59 $ 33.61
------------ ------------
Administrative Class shares
Net assets $ 20,590 $ 7,669
Shares outstanding 630 228
Net asset value, offering and redemption
price per share $ 32.66 $ 33.57
------------ ------------
Net assets consist of:
Paid-in capital $533,593,888 $258,143,705
Accumulated net investment income/(loss) -- --
Accumulated net realized gain/(loss) on
investments and foreign currency transactions 28,379,218 87,979,208
Net unrealized appreciation/(depreciation) on
investments and foreign currencies 318,225,550 56,838,867
------------ ------------
$880,198,656 $402,961,780
============ ============
56 See Accompanying Notes to Financial Statements
<PAGE>
Statements of Assets and Liabilities -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Citizens Citizens Working Assets
Small Cap Index Global Equity Income Money Market
Fund Fund Fund Fund
--------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
ASSETS
Investments (see accompanying schedule):
Investments at cost $ 8,762,882 $276,721,047 $ 61,008,213 $133,894,801
Repurchase Agreements -- 41,057,000 2,628,000 --
Net unrealized appreciation/(depreciation) 615,814 57,393,734 (2,624,441) --
------------ ------------ ------------ ------------
Total investments at value 9,378,696 375,171,781 61,011,772 133,894,801
Cash 38 2,202,498 -- 1,772,385
Receivable for:
Interest -- 6,843 888,355 466,671
Dividends and withholding tax reclaims 789 246,235 26,250 --
Fund shares sold 9,506 8,480,044 123,811 622,107
Investment securities sold 86,611 7,712,678 -- --
Due from Investment Adviser 90,505 3,105 10,220 --
Other assets -- 2,704 615 2,396
------------ ------------ ------------ ------------
Total Assets 9,566,145 393,825,888 62,061,023 136,758,360
------------ ------------ ------------ ------------
LIABILITIES
Payable for investment securities purchased 1,143,843 20,992,431 -- --
Payable for fund shares repurchased -- 3,194,904 47,019 464,156
Distributions payable -- -- 54,129 19,197
Due to Custodian -- 1,618,688 25,436 --
Payable for investment management fees 2,858 290,336 31,707 39,117
Payable for administrative and shareholder
service fees 1,013 34,756 7,224 17,409
Payable for distribution expenses 1,429 70,002 12,196 18,537
Other accrued expenses 20,228 262,323 47,812 129,374
------------ ------------ ------------ ------------
Total Liabilities 1,169,371 26,463,440 225,523 687,790
------------ ------------ ------------ ------------
NET ASSETS $ 8,396,774 $367,362,448 $ 61,835,500 $136,070,570
============ ============ ============ ============
Standard Class shares
Net assets $ 8,396,774 $354,817,801 $ 61,835,500 $112,700,430
Shares outstanding 747,837 11,829,270 6,061,698 112,823,653
Net asset value, offering and redemption
price per share $ 11.23 $ 29.99 $ 10.20 $ 1.00
------------ ------------ ------------ ------------
Institutional Class shares
Net assets $ 12,543,749 $ 23,370,140
Shares outstanding 416,978 23,370,140
Net asset value, offering and redemption
price per share $ 30.08 $ 1.00
------------ ------------
Administrative Class shares
Net assets $ 898
Shares outstanding 30
Net asset value, offering and redemption
price per share $ 30.02
------------
Net assets consist of:
Paid-in capital $ 7,771,293 $297,218,853 $ 64,739,156 $136,070,570
Accumulated net investment income/(loss) -- -- 156,763 --
Accumulated net realized gain/(loss) on
investments and foreign currency transactions 9,667 12,772,640 (435,978) --
Net unrealized appreciation/(depreciation) on
investments and foreign currencies 615,814 57,370,955 (2,624,441) --
------------ ------------ ------------ ------------
$ 8,396,774 $367,362,448 $ 61,835,500 $136,070,570
============ ============ ============ ============
</TABLE>
See Accompanying Notes to Financial Statements 57
<PAGE>
Statements of Operations for the year ended June 30, 2000
<TABLE>
<CAPTION>
Citizens Citizens
Index Emerging Growth
Fund Fund
------------- ---------------
<S> <C> <C>
Investment Income
Interest $ 118,491 $ 908,037
Dividends (net of withholding taxes) 5,521,178 544,286
------------- -------------
Total investment income 5,639,669 1,452,323
------------- -------------
Expenses
Investment management fees 3,815,543 2,415,821
Transfer agent fees 1,070,511 461,377
Custody and accounting fees 201,832 95,716
Distribution expenses 1,594,556 582,178
Administrative and shareholder service fees 3,521,523 354,588
Legal and audit fees 133,723 69,235
Registration fees 83,026 80,913
Trustees' fees and expenses 16,557 16,557
Printing and postage 113,552 56,941
Dues and insurance 31,434 9,187
Other expenses 36,902 41,974
Amortization of organization costs 18,969 --
------------- -------------
Total Expenses 10,638,128 4,184,487
------------- -------------
Reimbursements/Waivers (212,174) (150,161)
------------- -------------
Net Expenses 10,425,954 4,034,326
------------- -------------
Net Investment Income/(Loss) $ (4,786,285) $ (2,582,003)
------------- -------------
Realized and Unrealized Gain/(Loss) on Investments
Realized gain/(loss) on investments 38,733,699 102,977,961
Realized gain/(loss) on foreign currency transactions -- --
Increase/(decrease) in unrealized appreciation/
(depreciation) on investments 59,863,245 31,272,195
Increase/(decrease) in unrealized appreciation/
(depreciation) on foreign currencies -- --
------------- -------------
Net realized and unrealized gain/(loss)
on investments and foreign currencies 98,596,944 134,250,156
------------- -------------
Net Increase In Net Assets Resulting From Operations $ 93,810,659 $ 131,668,153
============= =============
</TABLE>
58 See Accompanying Notes to Financial Statements
<PAGE>
Statements of Operations for the year ended June 30, 2000
<TABLE>
<CAPTION>
Citizens Citizens Citizens Working Assets
Small Cap Index Global Equity Income Money Market
Fund (1) Fund Fund Fund
--------------- ------------- ------------ --------------
<S> <C> <C> <C> <C>
Investment Income
Interest $ 25,914 $ 1,088,377 $ 4,588,913 $ 7,506,765
Dividends (net of withholding taxes) 4,125 1,209,651 (2) 272,700 --
------------ ------------ ------------ ------------
Total investment income 30,039 2,298,028 4,861,613 7,506,765
------------ ------------ ------------ ------------
Expenses
Investment management fees 10,082 2,225,034 405,808 456,568
Transfer agent fees 8,417 519,177 105,154 302,910
Custody and accounting fees 35,240 179,776 56,720 80,202
Distribution expenses 5,041 543,891 156,080 215,695
Administrative and shareholder service fees 3,936 286,182 94,546 214,476
Legal and audit fees 15,066 68,913 40,355 48,533
Registration fees 29,167 106,759 21,754 48,889
Trustees' fees and expenses 8,583 16,557 16,556 16,516
Printing and postage 3,294 33,391 15,501 46,850
Dues and insurance -- 7,189 3,311 6,540
Other expenses 1,770 61,548 2,078 4,542
Amortization of organization costs -- -- -- 15,121
------------ ------------ ------------ ------------
Total Expenses 120,596 4,048,417 917,863 1,456,842
------------ ------------ ------------ ------------
Reimbursements/Waivers (90,541) (12,485) (12,815) (10,681)
------------ ------------ ------------ ------------
Net Expenses 30,055 4,035,932 905,048 1,446,161
------------ ------------ ------------ ------------
Net Investment Income/(Loss) $ (16) $ (1,737,904) $ 3,956,565 $ 6,060,604
------------ ------------ ------------ ------------
Realized and Unrealized Gain/(Loss) on Investments
Realized gain/(loss) on investments 9,682 21,636,451 (375,349) --
Realized gain/(loss) on foreign currency transactions -- (1,799,047) -- --
Increase/(decrease) in unrealized appreciation/
(depreciation) on investments 615,814 34,036,123 (1,531,511) --
Increase/(decrease) in unrealized appreciation/
(depreciation) on foreign currencies -- (11,940) -- --
------------ ------------ ------------ ------------
Net realized and unrealized gain/(loss)
on investments and foreign currencies 625,496 53,861,587 (1,906,860) --
------------ ------------ ------------ ------------
Net Increase In Net Assets Resulting From Operations $ 625,480 $ 52,123,683 $ 2,049,705 $ 6,060,604
============ ============ ============ ============
</TABLE>
(1) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
(2) Withholding taxes for the year ended June 30, 2000 were $172,164.
See Accompanying Notes to Financial Statements 59
<PAGE>
Statements of Changes in Net Assets -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Citizens
Index Fund Emerging Growth Fund
------------------------------ ------------------------------
For the For the For the For the
year ended year ended year ended year ended
06/30/00 06/30/99 06/30/00 06/30/99
<S> <C> <C> <C> <C>
Operations
Net investment
income/(loss) $ (4,786,285) $ (2,900,743) $ (2,582,003) $ (1,189,405)
Realized gain/(loss)
on investments and
foreign currencies 38,733,699 37,531,851 102,977,961 23,103,745
Net change in unrealized
appreciation/(depreciation)
on investments and
foreign currencies 59,863,245 102,701,896 31,272,195 11,531,672
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations 93,810,659 137,333,004 131,668,153 33,446,012
Distributions to shareholders:
From net investment
income-Standard -- -- -- --
From net realized gain on
investments-Standard (35,305,535) (4,955,929) (31,299,257) (9,016,170)
From net investment
income-Institutional -- -- -- N/A
From net realized gain on
investments-Institutional (8,385,302) (606,104) (1,626,292) N/A
From net investment
income-Administrative -- N/A -- N/A
From net realized gain on
investments-Administrative -- N/A -- N/A
------------- ------------- ------------- -------------
Total distributions (43,690,837) (5,562,033) (32,925,549) (9,016,170)
Increase/(decrease) in net
assets resulting from
capital share transactions 153,088,155 172,150,908 168,082,210 23,815,566
------------- ------------- ------------- -------------
Total increase/(decrease)
in net assets 203,207,977 303,921,879 266,824,814 48,245,408
Net Assets
Beginning of year 676,990,679 373,068,800 136,136,966 87,891,558
------------- ------------- ------------- -------------
End of year $ 880,198,656 $ 676,990,679 $ 402,961,780 $ 136,136,966
============= ============= ============= =============
Accumulated net investment
income/(loss) -- -- -- --
============= ============= ============= =============
</TABLE>
60 See Accompanying Notes to Financial Statements
<PAGE>
Statements of Changes in Net Assets -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Small Citizens
Cap Index Fund Global Equity Fund
-------------- ------------------------------
From For the For the
12/28/99(1) year ended year ended
to 06/30/00 06/30/00 06/30/99
<S> <C> <C> <C>
Operations
Net investment
income/(loss) $ (16) $ (1,737,904) $ (531,221)
Realized gain/(loss)
on investments and
foreign currencies 9,682 19,837,404 1,712,019
Net change in unrealized
appreciation/(depreciation)
on investments and
foreign currencies 615,814 34,024,183 11,325,610
------------- ------------- -------------
Net increase in net assets
resulting from operations 625,480 52,123,683 12,506,408
Distributions to shareholders:
From net investment
income-Standard -- -- --
From net realized gain on
investments-Standard -- (6,356,273) (1,452,563)
From net investment
income-Institutional N/A -- N/A
From net realized gain on
investments-Institutional N/A (151,385) N/A
From net investment
income-Administrative N/A -- N/A
From net realized gain on
investments-Administrative N/A -- N/A
------------- ------------- -------------
Total distributions -- (6,507,658) (1,452,563)
Increase/(decrease) in net
assets resulting from
capital share transactions 7,771,294 231,197,414 30,449,834
------------- ------------- -------------
Total increase/(decrease)
in net assets 8,396,774 276,813,439 41,503,679
Net Assets
Beginning of year -- 90,549,009 49,045,330
------------- ------------- -------------
End of year $ 8,396,774 $ 367,362,448 $ 90,549,009
============= ============= =============
Accumulated net investment
income/(loss) -- -- $ (762,519)
============= ============= =============
<CAPTION>
Citizens Working Assets
Income Fund Money Market Fund
------------------------------ ------------------------------
For the For the For the For the
year ended year ended year ended year ended
06/30/00 06/30/99 06/30/00 06/30/99
<S> <C> <C> <C> <C>
Operations
Net investment
income/(loss) $ 3,956,565 $ 3,250,865 $ 6,060,604 $ 5,126,947
Realized gain/(loss)
on investments and
foreign currencies (375,349) 150,138 -- --
Net change in unrealized
appreciation/(depreciation)
on investments and
foreign currencies (1,531,511) (3,034,149) -- --
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations 2,049,705 366,854 6,060,604 5,126,947
Distributions to shareholders:
From net investment
income-Standard (3,820,773) (3,223,689) (4,945,844) (4,199,590)
From net realized gain on
investments-Standard (81,870) (130,143) -- --
From net investment
income-Institutional N/A N/A (1,114,760) (927,357)
From net realized gain on
investments-Institutional N/A N/A -- --
From net investment
income-Administrative N/A N/A N/A N/A
From net realized gain on
investments-Administrative N/A N/A N/A N/A
------------- ------------- ------------- -------------
Total distributions (3,902,643) (3,353,832) (6,060,604) (5,126,947)
Increase/(decrease) in net
assets resulting from
capital share transactions 851,888 14,457,919 7,867,082 6,427,903
------------- ------------- ------------- -------------
Total increase/(decrease)
in net assets (1,001,050) 11,470,941 7,867,082 6,427,903
Net Assets
Beginning of year 62,836,550 51,365,609 128,203,488 121,775,585
------------- ------------- ------------- -------------
End of year $ 61,835,500 $ 62,836,550 $ 136,070,570 $ 128,203,488
============= ============= ============= =============
Accumulated net investment
income/(loss) $ 156,763 $ (4,624) -- --
============= ============= ============= =============
</TABLE>
(1) Commencement of Operations.
See Accompanying Notes to Financial Statements 61
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Index Fund
--------------------------------------------------------------
Standard Class Shares
--------------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 30.52 $ 23.46 $ 18.04 $ 13.41 $ 10.94
----------- ----------- ----------- ----------- -----------
Income/(loss) from
investment operations
Net investment income/(loss) (0.22) (0.15) (0.07) -- 0.08
Net gain/(loss) on securities
(both realized and unrealized) 4.08 7.52 6.44 4.78 2.47
----------- ----------- ----------- ----------- -----------
Total from investment
operations 3.86 7.37 6.37 4.78 2.55
Less distributions
from net investment income -- -- -- (0.06) (0.03)
from net realized gains (1.79) (0.31) (0.95) (0.09) (0.05)
----------- ----------- ----------- ----------- -----------
Total distributions (1.79) (0.31) (0.95) (0.15) (0.08)
Net asset value, end of period $ 32.59 $ 30.52 $ 23.46 $ 18.04 $ 13.41
=========== =========== =========== =========== ===========
Total return 12.82% 31.58% 36.50% 35.88% 23.41%
Ratios and Supplemental Data
Net assets, end of
period (thousands) $ 699,399 $ 578,286 $ 341,395 $ 211,116 $ 136,980
Ratio of expenses to average
net assets prior to
reimbursement and/
or fee waivers 1.52% 1.58% 1.59% 1.59% 1.82%
Ratio of expenses to average
net assets net of
reimbursement and/
or fee waivers 1.49% 1.58% 1.59% 1.59% 1.79%
Ratio of net investment income/
(loss) to average net assets (0.75%) (0.68%) (0.39%) 0.02% 0.68%
Portfolio turnover rate 20.04% 18.04% 13.64% 18.64% 6.44%
</TABLE>
62 See Accompanying Notes to Financial Statements
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Index Fund
----------------------------------------------------------------------------
Administrative
Institutional Class Shares(1) Class Shares(2)
------------------------------------------------------------ ---------------
For the For the For the For the From From
year year year year 01/25/96 02/04/00
ended ended ended ended to to
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96 06/30/00
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 25.02 $ 19.13 $ 14.84 $ 11.00 $ 10.00 $ 32.09
-------- -------- -------- -------- -------- --------
Income/(loss) from
investment operations
Net investment income/(loss) -- 0.01 0.11 0.08 0.08 (0.01)
Net gain/(loss) on securities
(both realized and unrealized) 3.36 6.19 5.21 3.94 0.92 0.58
-------- -------- -------- -------- -------- --------
Total from investment
operations 3.36 6.20 5.32 4.02 1.00 0.57
Less distributions
from net investment income -- -- (0.08) (0.09) -- --
from net realized gains (1.79) (0.31) (0.95) (0.09) -- --
-------- -------- -------- -------- -------- --------
Total distributions (1.79) (0.31) (1.03) (0.18) -- --
Net asset value, end of period $ 26.59 $ 25.02 $ 19.13 $ 14.84 $ 11.00 $ 32.66
======== ======== ======== ======== ======== ========
Total return 13.67% 32.62% 37.38% 36.93% 10.00%(3) 1.78%(3)
Ratios and Supplemental Data
Net assets, end of
period (thousands) $180,779 $ 98,705 $ 31,673 $ 13,001 $ 7,524 $ 21
Ratio of expenses to average
net assets prior to
reimbursement and/
or fee waivers 0.74% 0.83% 0.88% 0.88% 1.01%(4) 101.59%(4)
Ratio of expenses to average
net assets net of
reimbursement and/
or fee waivers 0.74% 0.83% 0.88% 0.88% 0.98%(4) 0.99%(4)
Ratio of net investment income/
(loss) to average net assets 0.00% 0.05% 0.28% 0.76% 2.37%(4) (0.27%)(4)
Portfolio turnover rate 20.04% 18.04% 13.64% 18.64% 6.44% 20.04%
</TABLE>
(1) The Citizens Index Fund, Institutional Class shares commenced operations
on January 25, 1996.
(2) The Citizens Index Fund, Administrative Class shares commenced operations
on February 4, 2000.
(3) Not annualized.
(4) Annualized.
See Accompanying Notes to Financial Statements 63
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Emerging Growth Fund
--------------------------------------------------------------------------------------------------
Institutional Administrative
Standard Class Shares Class Shares(1) Class Shares(2)
------------------------------------------------------------- --------------- ---------------
For the For the For the For the For the From From
year year year year year 11/01/99 02/04/00
ended ended ended ended ended to to
06/30/00 06/30/99 6/30/98 06/30/97 06/30/96 06/30/00 06/30/00
<S> <C> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value,
beginning of period $ 21.76 $ 17.55 $ 14.14 $ 14.87 $ 11.87 $ 25.67 $ 28.70
-------- -------- -------- -------- -------- -------- --------
Income/(loss) from
investment operations
Net investment
income/(loss) (0.30)(3) (0.19) (0.20) (0.16) (0.13) (0.11) (0.10)(3)
Net gain/(loss) on
securities (both
realized and
unrealized) 16.58 6.19 4.61 0.68 4.72 12.61 4.97
-------- -------- -------- -------- -------- -------- --------
Total from
investment
operations 16.28 6.00 4.41 0.52 4.59 12.50 4.87
Less distributions
from net investment
income -- -- -- -- -- -- --
from net realized
gains (4.56) (1.79) (1.00) (1.25) (1.59) (4.56) --
-------- -------- -------- -------- -------- -------- --------
Total distributions (4.56) (1.79) (1.00) (1.25) (1.59) (4.56) --
Net asset value, end
of period $ 33.48 $ 21.76 $ 17.55 $ 14.14 $ 14.87 $ 33.61 $ 33.57
======== ======== ======== ======== ======== ======== ========
Total return 82.19% 36.04% 33.05% 4.03% 42.43% 55.02%(4) 16.97%(4)
Ratios and Supplemental Data
Net assets, end of
period (thousands) $386,670 $136,137 $ 87,892 $ 60,341 $ 36,409 $ 16,284 $ 8
Ratio of expenses
to average net
assets prior to
reimbursement
and/or fee waivers 1.75% 1.83% 1.96% 2.01% 2.34% 1.31%(5) 158.14%(5)
Ratio of expenses
to average net
assets net of
reimbursement
and/or fee waivers 1.69% 1.82% 1.96% 1.99% 2.02% 1.24%(5) 1.55%(5)
Ratio of net investment
income/(loss) to
average net assets (1.09%) (1.20%) (1.37%) (1.32%) (1.64%) (0.61%)(5) (0.90%)(5)
Portfolio turnover rate 159.95% 208.49% 245.30% 228.66% 337.41% 159.95% 159.95%
</TABLE>
(1) The Citizens Emerging Growth Fund, Institutional Class shares commenced
operations on November 1, 1999.
(2) The Citizens Emerging Growth Fund, Administrative Class shares commenced
operations on February 4, 2000.
(3) Based on average shares outstanding.
(4) Not annualized.
64 See Accompanying Notes to Financial Statements
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Small Cap
Index Fund
------------------
Standard
Class Shares(6)
------------------
From
12/28/99
to
06/30/00
<S> <C>
Selected Per-Share Data
Net asset value,
beginning of period $ 10.00
--------
Income/(loss) from
investment operations
Net investment
income/(loss) --
Net gain/(loss) on
securities (both
realized and
unrealized) 1.23
--------
Total from
investment
operations 1.23
Less distributions
from net investment
income --
from net realized
gains --
--------
Total distributions --
Net asset value, end
of period $ 11.23
========
Total return 12.30%(4)
Ratios and Supplemental Data
Net assets, end of
period (thousands) $ 8,397
Ratio of expenses
to average net
assets prior to
reimbursement
and/or fee waivers 5.98%(5)
Ratio of expenses
to average net
assets net of
reimbursement
and/or fee waivers 1.49%(5)
Ratio of net investment
income/(loss) to
average net assets (0.00%)(5)
Portfolio turnover rate 20.16%
<CAPTION>
Citizens Global Equity Fund
-----------------------------------------------------------------------------------------------
Institutional Administrative
Standard Class Shares Class Shares(7) Class Shares(8)
-------------------------------------------------------------- --------------- ---------------
For the For the For the For the For the From From
year year year year year 11/01/99 02/04/00
ended ended ended ended ended to to
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96 06/30/00 06/30/00
<S> <C> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value,
beginning of period $ 20.22 $ 16.95 $ 14.47 $ 11.89 $ 10.69 $ 23.45 $ 33.45
-------- -------- -------- -------- -------- -------- --------
Income/(loss) from
investment operations
Net investment
income/(loss) (0.22)(3) (0.12) (0.20) (0.07) (0.10) (0.05)(3) (0.06)
Net gain/(loss) on
securities (both
realized and
unrealized) 10.94 3.86 3.24 2.65 1.43 7.63 (3.37)
-------- -------- -------- -------- -------- -------- --------
Total from
investment
operations 10.72 3.74 3.04 2.58 1.33 7.58 (3.43)
Less distributions
from net investment
income -- -- -- -- -- -- --
from net realized
gains (0.95) (0.47) (0.56) -- (0.13) (0.95) --
-------- -------- -------- -------- -------- -------- --------
Total distributions (0.95) (0.47) (0.56) -- (0.13) (0.95) --
Net asset value, end
of period $ 29.99 $ 20.22 $ 16.95 $ 14.47 $ 11.89 $ 30.08 $ 30.02
======== ======== ======== ======== ======== ======== ========
Total return 53.27% 22.34% 21.75% 21.70% 12.52% 32.55%(4) (10.25%)(4)
Ratios and Supplemental Data
Net assets, end of
period (thousands) $354,818 $ 90,549 $ 49,045 $ 29,573 $ 15,595 $ 12,544 $ 1
Ratio of expenses
to average net
assets prior to
reimbursement
and/or fee waivers 1.83% 1.96% 2.20% 2.33% 2.72% 1.43%(5) 296.20%(5)
Ratio of expenses
to average net
assets net of
reimbursement
and/or fee waivers 1.82% 1.96% 2.20% 2.10% 2.55% 1.39%(5) 1.68%(5)
Ratio of net investment
income/(loss) to
average net assets (0.79%) (0.88%) (0.76%) (0.70%) (1.01%) (0.25%)(5) (0.48%)(5)
Portfolio turnover rate 120.69% 64.07% 72.33% 69.34% 85.92% 120.69% 120.69%
</TABLE>
(5) Annualized.
(6) The Citizens Small Cap Index Fund, Standard Class shares commenced
operations on December 28, 1999.
(7) The Citizens Global Equity Fund, Institutional Class shares commenced
operations on November 1, 1999.
(8) The Citizens Global Equity Fund, Administrative Class shares commenced
operations on February 4, 2000.
See Accompanying Notes to Financial Statements 65
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Citizens Income Fund
--------------------------------------------------------
Standard Class Shares
--------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 10.51 $ 11.03 $ 10.56 $ 10.28 $ 10.38
Income/(loss) from
investment operations
Net investment income/(loss) 0.65 0.59 0.60 0.67 0.66
Net gain/(loss) on securities
(both realized and unrealized) (0.32) (0.50) 0.49 0.28 (0.10)
------- ------- ------- ------- -------
Total from investment operations 0.33 0.09 1.09 0.95 0.56
Less distributions
from net investment income (0.63) (0.59) (0.60) (0.67) (0.66)
from net realized gains (0.01) (0.02) (0.02) -- --
------- ------- ------- ------- -------
Total distributions (0.64) (0.61) (0.62) (0.67) (0.66)
Net asset value, end of period $ 10.20 $ 10.51 $ 11.03 $ 10.56 $ 10.28
======= ======= ======= ======= =======
Total return 3.35% 0.78% 10.49% 9.57% 5.48%
Ratios and Supplemental Data
Net assets, end of
period (thousands) $61,836 $62,837 $51,366 $33,230 $32,276
Ratio of expenses to
average net assets prior
to reimbursement and/
or fee waivers 1.47% 1.49% 1.86% 1.47% 1.48%
Ratio of expenses to
average net assets net
of reimbursement and/
or fee waivers 1.45% 1.45% 1.74% 1.41% 1.38%
Ratio of net investment income/
(loss) to average net assets 6.34% 5.50% 5.55% 6.44% 6.26%
Portfolio turnover rate 52.96% 44.07% 80.14% 64.56% 41.36%
</TABLE>
66 See Accompanying Notes to Financial Statements
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Working Assets Money Market Fund
------------------------------------------------------------
Standard Class Shares
------------------------------------------------------------
For the For the For the For the For the
year year year year year
ended ended ended ended ended
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations
Net investment income 0.046 0.040 0.045 0.042 0.045
Less distributions
from net investment income (0.046) (0.040) (0.045) (0.042) (0.045)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return 4.67% 4.07% 4.54% 4.30% 4.60%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $112,700 $105,740 $103,597 $ 85,179 $ 78,326
Ratio of expenses to
average net assets
prior to reimbursement
and/or fee waivers 1.18% 1.24% 1.23% 1.39% 1.21%
Ratio of expenses to
average net assets net of
reimbursement and/or
fee waivers 1.17% 1.19% 1.21% 1.25% 1.18%
Ratio of net investment income
to average net assets 4.59% 4.00% 4.46% 4.23% 4.56%
</TABLE>
See Accompanying Notes to Financial Statements 67
<PAGE>
Financial Highlights -- June 30, 2000
<TABLE>
<CAPTION>
Working Assets Money Market Fund
--------------------------------------------------------
Institutional Class Shares(1)
--------------------------------------------------------
For the For the For the For the From
year year year year 02/01/96
ended ended ended ended to
06/30/00 06/30/99 06/30/98 06/30/97 06/30/96
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from investment operations
Net investment income 0.049 0.045 0.051 0.049 0.021
Less distributions
from net investment income (0.049) (0.045) (0.051) (0.049) (0.021)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total return 5.04% 4.58% 5.23% 5.01% 2.09%(2)
Ratios and Supplemental Data
Net assets, end of period
(thousands) $23,370 $22,464 $18,178 $17,504 $14,539
Ratio of expenses to
average net assets
prior to reimbursement
and/or fee waivers 0.82% 0.70% 0.56% 0.60% 0.47%(3)
Ratio of expenses to
average net assets net of
reimbursement and/or
fee waivers 0.81% 0.70% 0.56% 0.60% 0.47%(3)
Ratio of net investment income
to average net assets 4.93% 4.47% 5.11% 4.92% 5.16%(3)
</TABLE>
(1) The Working Assets Money Market Fund, Institutional Class shares commenced
operations on February 1, 1996.
(2) Not annualized.
(3) Annualized.
68 See Accompanying Notes to Financial Statements
<PAGE>
Notes to Financial Statements -- June 30, 2000
NOTE 1 - Summary of Significant Accounting Policies
Organization
The Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Small Cap Index
Fund (which commenced operations on December 28, 1999), Citizens Global Equity
Fund, Citizens Income Fund and the Working Assets Money Market Fund (the
"Funds") are each a series of shares of beneficial interest of Citizens Funds
(the "Trust"). Collectively, these funds are known as the "Citizens Funds." The
Trust is organized as a Massachusetts Business Trust and is registered as an
open-end 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 Index Fund, Citizens Emerging Growth Fund and the Citizens Global
Equity Fund currently offer three classes of shares: Standard Class shares,
Institutional Class shares and Administrative Class shares. The Working Assets
Money Market Fund offers two classes of shares: Standard Class shares and
Institutional Class shares, and the Citizens Small Cap Index Fund and the
Citizens Income Fund offer one class of shares: Standard Class shares. Shares of
each class are entitled to vote as a class or series 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
non-class-specific expenses of the Citizens Index Fund, Citizens Emerging Growth
Fund, Citizens Global Equity Fund and the Working Assets Money Market Fund are
allocated on a pro rata basis to each class based on the relative net assets of
each class to the total net assets of each fund. Each class of shares differs in
its respective distribution, administrative, shareholder servicing and transfer
agent 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
69
<PAGE>
Notes to Financial Statements -- June 30, 2000
such securities are traded, as of the close of business on the day the
securities are valued, or, lacking any sales, at the last available bid price
for domestic securities and halfway between the bid and ask price for
international securities. Fixed income investments generally are valued at the
bid price for securities. Short-term securities are valued at amortized cost.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value, as determined in good faith by or under the direction of the
Funds' Board of Trustees.
Security Transactions, Related Investment Income and Other
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on the
identified cost basis, unless otherwise specified. Interest income is recorded
on an 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. If net
asset value per share, using available market information, deviates from $1.00
by $.005 or more, the Board of Trustees will consider what steps, if any, should
be taken to restore net asset value per share to $1.00.
Distributions to Shareholders
The Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Small Cap Index
Fund and the Citizens Global Equity Fund distribute net investment income and
net capital gains, if any, to shareholders annually. The Citizens Income Fund
distributes net investment income to shareholders monthly and net capital gains,
if any, annually. With respect to the Working Assets Money Market Fund,
dividends from net investment income are declared daily and paid monthly.
Distributions are recorded by the Funds on the ex-dividend date. Income and
capital gains 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.
70
<PAGE>
Notes to Financial Statements -- June 30, 2000
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.
Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. Dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are recorded on the books and records of the Funds after being translated into
U.S. Dollars at the prevailing rates of exchange on that day. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. Dollars at the prevailing exchange rate on the respective dates of the
transactions.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Funds' books and the U.S. Dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year-end
resulting from changes in exchange rates. The effects of changes in foreign
currency exchange rates on investments in securities are included with the net
realized gain or loss on investment securities.
Repurchase Agreements
With respect to repurchase agreements entered into by the Funds, it is the
Funds' policy to receive collateral securities of which the value, including
accrued interest, is at least equal to 102% of the amount to be repaid to the
Funds under each agreement at its maturity.
Restricted Securities
The Funds are permitted to invest in privately placed securities. These
securities may be resold in transactions exempt from registration or to the
public, if the securities are registered. Disposal of these securities may
involve time-consuming negotiations and expense, and prompt sale at an
acceptable price may be difficult. At the end of the period, restricted
securities (excluding 144A issues) are shown at the end of the Funds' Statement
of Investments.
71
<PAGE>
Notes to Financial Statements -- June 30, 2000
Deferred Organization Costs
All costs incurred in connection with the organization, registration and/or
reorganization of the Funds have been paid by the Funds, with the exception of
the Citizens Small Cap Index Fund, for which organization costs were paid by the
Adviser. These costs are being amortized on a straight-line basis over a period
not to exceed 60 months.
Foreign Currency Contracts
The Citizens Global Equity Fund uses foreign currency contracts to facilitate
transactions in foreign-denominated securities. Losses may arise from changes in
the value of the foreign currency or if the counterparties do not perform under
the contract's terms. The U.S. Dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at the time of
each trade.
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:
Citizens Index Fund 0.50%
Citizens Emerging Growth Fund 1.00%
Citizens Small Cap Index Fund 0.50%
Citizens Global Equity Fund 1.00%
Citizens Income Fund 0.65%
Working Assets Money Market Fund 0.35%
Seneca Capital Management LLC serves as the Sub-Adviser for the Citizens
Emerging Growth Fund and the Citizens Income Fund. Clemente Capital, Inc. serves
as the Sub-Adviser for the Citizens Global Equity Fund. For their services, the
Sub-Advisers receive fees based on an annual rate of each Fund's average net
assets, paid by the Adviser as follows:
Citizens Emerging Growth Fund 0.35% of the first $100 million
0.25% thereafter
Citizens Global Equity Fund 0.35%
Citizens Income Fund 0.175%
72
<PAGE>
Notes to Financial Statements -- June 30, 2000
For the Funds' fiscal year ending June 30, 2000, the Adviser has contractually
agreed to waive certain fees and reimburse certain expenses to the extent that
the total expenses of a share class or fund for the fiscal year (exclusive of
taxes, interest, brokerage commissions and extraordinary expenses) exceed the
following limits of each share class or fund's average net assets:
Citizens Index Fund,
Standard Class shares 1.49%
Citizens Index Fund,
Institutional Class shares 0.74%
Citizens Index Fund,
Administrative Class shares(1) 0.99%
Citizens Emerging Growth Fund,
Institutional Class shares(2) 1.30%
Citizens Emerging Growth Fund,
Administrative Class shares(1) 1.55%
Citizens Small Cap Index Fund(3),
Standard Class shares 1.49%
Citizens Global Equity Fund,
Standard Class shares 2.05%
Citizens Global Equity Fund,
Institutional Class shares(2) 1.39%
Citizens Global Equity Fund,
Administrative Class shares(1) 1.68%
Citizens Income Fund, 1.45% of the first $100 million
Standard Class shares 1.25% thereafter
Working Assets Money Market Fund,
Standard Class shares 1.50% of the first $40 million
1.00% thereafter
(1) For the period February 4, 2000 (commencement of operations) to June 30,
2000.
(2) For the period November 1, 1999 (commencement of operations) to June 30,
2000.
(3) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
In addition, the Adviser voluntarily waived 0.10% of its fee for the Citizens
Emerging Growth Fund when the Fund's monthly average net assets exceeded $100
million.
Distribution Fee
Citizens Securities, Inc. (the "Distributor") is a wholly owned subsidiary of
the Adviser and serves as the Funds' Distributor.
73
<PAGE>
Notes to Financial Statements -- June 30, 2000
Pursuant to Rule 12b-1 under the 1940 Act, the Trust's Shareholders have adopted
a separate distribution plan with respect to the Funds' Standard and
Administrative Class shares pursuant to which the Funds reimburse the
Distributor for a portion of its distribution related expenses.
Distribution Fees for the period ended June 30, 2000, were 0.25% of average
daily net assets for the Standard and Administrative Class shares of the
Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Global Equity Fund
and 0.25% of average daily net assets for the Standard Class shares of the
Citizens Small Cap Index Fund and the Citizens Income Fund. The distribution fee
for the Working Assets Money Market Fund, Standard Class shares was 0.20% of
average daily net assets for the same period. For the year ended June 30, 2000,
the Trust paid distribution fees as follows:
Citizens Index Fund,
Standard Class shares $ 1,594,553
Citizens Index Fund,
Administrative Class shares(1) 3
Citizens Emerging Growth Fund,
Standard Class shares 582,176
Citizens Emerging Growth Fund,
Administrative Class shares(1) 2
Citizens Small Cap Index Fund,
Standard Class shares(2) 5,041
Citizens Global Equity Fund,
Standard Class shares 543,890
Citizens Global Equity Fund,
Administrative Class shares(1) 1
Citizens Income Fund,
Standard Class shares 156,080
Working Assets Money Market Fund,
Standard Class shares 215,695
(1) For the period February 4, 2000 (commencement of operations) to June 30,
2000.
(2) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
Administrative and Shareholder Service Fees
The Adviser also performs a wide variety of administrative duties for the Trust
under a separate administrative contract which provides for the reimbursement
74
<PAGE>
Notes to Financial Statements -- June 30, 2000
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:
Citizens Index Fund,
Standard Class shares(1) 0.13%
Citizens Index Fund,
Institutional and Administrative Class shares(1) 0.09%
Citizens Emerging Growth Fund,
Standard, Institutional and Administrative Class shares 0.10%
Citizens Small Cap Index Fund,
Standard Class shares 0.10%
Citizens Global Equity Fund,
Standard, Institutional and Administrative Class shares 0.10%
Citizens Income Fund,
Standard Class shares 0.10%
Working Assets Money Market Fund,
Standard and Institutional Class shares 0.10%
(1) Under the terms of the Administration agreement in effect through June 30,
2000, Citizens Advisers could charge up to 0.20% of average daily net
assets.
In addition, Citizens Securities, Inc. provides a number of administrative
services to the Trust relating primarily to shareholder services and
communications, and is reimbursed at a rate approximating the "market price" of
providing such services and communications for each of the individual funds with
the exception of the Citizens Index Fund, Standard Class shares. The Citizens
Index Fund, Standard Class shares may be charged a shareholder service fee of up
to 0.40% based on the average daily net assets of the class. For the year ended
June 30, 2000, a fee of 0.40% was charged. For the year ended June 30, 2000, the
Trust paid administrative and shareholder service fees as follows:
Administrative Shareholder
Fees Service Fees
-------------- ------------
Citizens Index Fund,
Standard Class shares $ 836,788 $ 2,568,530
Citizens Index Fund,
Institutional Class shares 114,543 1,646
75
<PAGE>
Notes to Financial Statements -- June 30, 2000
Administrative Shareholder
Fees Service Fees
-------------- ------------
Citizens Index Fund,
Administrative Class shares(1) $ 1 $ 15
Citizens Emerging Growth Fund,
Standard Class shares 236,995 108,636
Citizens Emerging Growth Fund,
Institutional Class shares(2) 8,902 44
Citizens Emerging Growth Fund,
Administrative Class shares(1) 1 10
Citizens Small Cap Index Fund,
Standard Class shares(3) 2,053 1,883
Citizens Global Equity Fund,
Standard Class shares 221,995 59,035
Citizens Global Equity Fund,
Institutional Class shares(2) 5,096 44
Citizens Global Equity Fund,
Administrative Class shares(1) -- 12
Citizens Income Fund,
Standard Class shares 63,510 31,036
Working Assets Money Market Fund,
Standard Class shares 108,833 81,949
Working Assets Money Market Fund,
Institutional Class shares 22,801 893
(1) For the period February 4, 2000 (commencement of operations) to June 30,
2000.
(2) For the period November 1, 1999 (commencement of operations) to June 30,
2000.
(3) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
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 $10,000 and $1,000 for each
day's attendance at a Trustee meeting. In addition, all Trustees who are not
"affiliated persons" comprise the Nominating Committee, which identifies and
recommends new Trustees for the Trust. As a member of the Nominating Committee,
each Trustee receives $1,000 for each day's attendance at a meeting of the
Nominating Committee and the Chair of the Nominating Committee also receives an
annual retainer of $2,500.
76
<PAGE>
Notes to Financial Statements -- June 30, 2000
Transfer Agent Fees
PFPC Inc. provides certain transfer agency services pursuant to certain fee
arrangements. Under an agreement with the transfer agent, transfer agent fees
are reduced by credits for cash balances as set forth below for the year ended
June 30, 2000:
Transfer
Agent Credits
-------------
Citizens Index Fund, Standard Class shares $ 6,037
Citizens Index Fund, Institutional Class shares 1,610
Citizens Emerging Growth Fund, Standard Class shares 2,710
Citizens Emerging Growth Fund, Institutional Class shares(1) 13
Citizens Small Cap Index Fund, Standard Class shares(2) 5
Citizens Global Equity Fund, Standard Class shares 7,136
Citizens Income Fund, Standard Class shares 1,216
Working Assets Money Market Fund, Standard Class shares 7,371
Working Assets Money Market Fund, Institutional Class shares 550
(1) For the period November 1, 1999 (commencement of operations) to June 30,
2000.
(2) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
Transfer agent fees also include the cost of services rendered by third parties
to provide sub-transfer agency services and shareholder statements.
Transfer agent fees borne by share class are set forth below, for the year ended
June 30, 2000:
Transfer
Agent Credits
-------------
Citizens Index Fund, Standard Class shares $ 999,207
Citizens Index Fund, Institutional Class shares 70,057
Citizens Index Fund, Administrative Class shares(1) 1,247
Citizens Emerging Growth Fund, Standard Class shares 455,336
Citizens Emerging Growth Fund, Institutional Class shares(2) 4,794
Citizens Emerging Growth Fund, Administrative Class shares(1) 1,247
Citizens Global Equity Fund, Standard Class shares 513,635
Citizens Global Equity Fund, Institutional Class shares(2) 4,431
Citizens Global Equity Fund, Administrative Class shares(1) 1,111
Working Assets Money Market Fund, Standard Class shares 279,234
Working Assets Money Market Fund, Institutional Class shares 23,676
(1) For the period February 4, 2000 (commencement of operations) to June 30,
2000.
(2) For the period November 1, 1999 (commencement of operations) to June 30,
2000.
77
<PAGE>
Notes to Financial Statements -- June 30, 2000
NOTE 3 - Purchases and Sales of Investment Securities
The following summarizes purchases and sales of investment securities, other
than short-term investments, by Fund for the year ended June 30, 2000:
<TABLE>
<CAPTION>
Purchases Sales
------------------------------ ------------------------------
U.S. Government Other U.S. Government Other
<S> <C> <C> <C> <C>
Citizens
Index Fund $ 1,880,019 $251,037,477 $ 1,839,847 $150,686,620
Citizens
Emerging
Growth Fund -- 481,022,058 -- 366,176,970
Citizens
Small Cap
Index Fund(1) 8,435,993 822,379
Citizens
Global Equity Fund -- 442,732,137 -- 243,655,509
Citizens
Income Fund 14,536,205 19,944,087 16,756,258 14,200,980
</TABLE>
(1) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
NOTE 4 - Custody of Securities
State Street Bank & Trust Co. acts as custodian for the Funds. Under an
agreement with the custodian bank, custody fees are reduced by credits for cash
balances as set forth below for the year ended June 30, 2000:
Citizens Index Fund $15,581
Citizens Emerging Growth Fund 4,604
Citizens Small Cap Index Fund(1) 31
Citizens Global Equity Fund 2,244
Citizens Income Fund 1,379
Working Assets Money Market Fund 2,760
(1) For the period December 28, 1999 (commencement of operations) to June 30,
2000.
78
<PAGE>
Notes to Financial Statements -- June 30, 2000
NOTE 5 - Capital Shares
At June 30, 2000, there were an unlimited amount of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
Funds were as follows:
Citizens Index Fund, Standard Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 5,866,041 $ 184,964,753 8,299,062 $ 220,034,135
Shares issued in
reinvestment of
distributions 1,069,740 33,953,539 176,968 4,845,398
Shares redeemed (4,427,598) (139,478,663) (4,082,071) (104,471,920)
------------- ------------- ------------- -------------
Net increase/(decrease) 2,508,183 $ 79,439,629 4,393,959 $ 120,407,613
============= ============= ============= =============
</TABLE>
Citizens Index Fund, Institutional Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 4,111,519 $ 106,069,689 2,999,864 $ 68,105,923
Shares issued in
reinvestment of
distributions 317,739 8,194,488 26,311 588,312
Shares redeemed (1,576,426) (40,636,038) (736,443) (16,955,271)
------------- ------------- ------------- -------------
Net increase/(decrease) 2,852,832 $ 73,628,139 2,289,732 $ 51,738,964
============= ============= ============= =============
</TABLE>
Citizens Index Fund, Administrative Class shares
February 4, 2000(1) to June 30, 2000
--------------------------------------
Shares Value
Shares sold 717 $ 23,203
Shares issued in
reinvestment of
distributions -- --
Shares redeemed (87) (2,816)
-------- --------
Net increase/(decrease) 630 $ 20,387
======== ========
(1) Commencement of operations.
79
<PAGE>
Notes to Financial Statements -- June 30, 2000
Citizens Emerging Growth Fund, Standard Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 6,738,377 $ 200,565,427 5,092,335 $ 93,221,737
Shares issued in
reinvestment of
distributions 1,203,141 29,801,969 469,616 8,636,244
Shares redeemed (2,648,899) (75,026,419) (4,314,244) (78,042,415)
------------- ------------- ------------- -------------
Net increase/(decrease) 5,292,619 $ 155,340,977 1,247,707 $ 23,815,566
============= ============= ============= =============
</TABLE>
Citizens Emerging Growth Fund, Institutional Class shares
November 1, 1999(2) to June 30, 2000
------------------------------------
Shares Value
Shares sold 492,655 $ 12,987,040
Shares issued in
reinvestment of
distributions 83 2,065
Shares redeemed (8,287) (255,000)
------------ ------------
Net increase/(decrease) 484,451 $ 12,734,105
============ ============
(2) Commencement of operations.
Citizens Emerging Growth Fund, Administrative Class shares
February 4, 2000 (3) to June 30, 2000
-------------------------------------
Shares Value
Shares sold 257 $ 8,073
Shares issued in
reinvestment of
distributions -- --
Shares redeemed (29) (945)
------- -------
Net increase/(decrease) 228 $ 7,128
======= =======
(3) Commencement of operations.
Citizens Small Cap Index Fund, Standard Class shares
December 28, 1999(4) to June 30, 2000
-------------------------------------
Shares Value
Shares sold 765,596 $ 7,956,143
Shares issued in
reinvestment of
distributions -- --
Shares redeemed (17,759) (184,849)
----------- -----------
Net increase/(decrease) 747,837 $ 7,771,294
=========== ===========
(4) Commencement of operations.
80
<PAGE>
Notes to Financial Statements -- June 30, 2000
Citizens Global Equity Fund, Standard Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 14,670,563 $ 439,086,292 3,696,959 $ 68,984,216
Shares issued in
reinvestment of
distributions 205,594 5,856,971 70,023 1,280,028
Shares redeemed (7,524,815) (226,171,875) (2,183,306) (39,814,410)
------------- ------------- ------------- -------------
Net increase/(decrease) 7,351,342 $ 218,771,388 1,583,676 $ 30,449,834
============= ============= ============= =============
</TABLE>
Citizens Global Equity Fund, Institutional Class shares
November 1, 1999(5) to June 30, 2000
------------------------------------
Shares Value
Shares sold 416,978 $12,425,026
Shares issued in
reinvestment of
distributions -- --
Shares redeemed -- --
----------- -----------
Net increase/(decrease) 416,978 $12,425,026
=========== ===========
(5) Commencement of operations.
Citizens Global Equity Fund, Administrative Class shares
February 4, 2000(6) to June 30, 2000
------------------------------------
Shares Value
Shares sold 30 $1,000
Shares issued in
reinvestment of
distributions -- --
Shares redeemed -- --
------ ------
Net increase/(decrease) 30 $1,000
====== ======
(6) Commencement of operations.
Citizens Income Fund, Standard Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
----------------------------- ----------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 3,437,192 $ 34,988,109 2,219,779 $ 24,188,857
Shares issued in
reinvestment of
distributions 320,161 3,275,368 263,390 2,859,497
Shares redeemed (3,676,412) (37,411,589) (1,159,452) (12,590,435)
------------ ------------ ------------ ------------
Net increase/(decrease) 80,941 $ 851,888 1,323,717 $ 14,457,919
============ ============ ============ ============
</TABLE>
81
<PAGE>
Notes to Financial Statements -- June 30, 2000
Working Assets Money Market Fund, Standard Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ ------------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 178,368,131 $ 178,368,131 183,200,597 $ 183,200,597
Shares issued in
reinvestment of
distributions 4,806,041 4,806,041 4,128,302 4,128,302
Shares redeemed (176,213,466) (176,213,466) (185,186,268) (185,186,268)
------------- ------------- ------------- -------------
Net increase/(decrease) 6,960,706 $ 6,960,706 2,142,631 $ 2,142,631
============= ============= ============= =============
</TABLE>
Working Assets Money Market Fund, Institutional Class shares
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
------------------------------ -----------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 11,541,512 $ 11,541,512 16,168,511 $ 16,168,511
Shares issued in
reinvestment of
distributions 1,102,438 1,102,438 916,004 916,004
Shares redeemed (11,737,574) (11,737,574) (12,799,243) (12,799,243)
------------ ------------ ------------ ------------
Net increase/(decrease) 906,376 $ 906,376 4,285,272 $ 4,285,272
============ ============ ============ ============
</TABLE>
--------------------------------------------------------------------------------
Federal Tax Information (unaudited)
Pursuant to Section 852 of the Internal Revenue Code, the Funds designate the
following amounts as capital gain dividends for the fiscal year ended June 30,
2000:
20%
------------
Citizens Index Fund $ 43,690,837
Citizens Emerging Growth Fund 4,950,923
Citizens Global Equity Fund 2,789,191
Citizens Income Fund 81,870
82
<PAGE>
Report of Independent Accountants
Report of Independent Accountants
To the Shareholders and Board of Trustees of Citizens Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the statements of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Citizens Index Fund, Citizens
Emerging Growth Fund, Citizens Small Cap Index Fund, Citizens Global Equity
Fund, Citizens Income Fund and Working Assets Money Market Fund at June 30,
2000, and the results of their operations, the changes in their net assets and
the financial highlights for each of the periods indicated herein, in conformity
with accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. Other auditors audited the financial highlights for each of the
periods ending on or before June 30, 1997, whose report dated July 25, 1997,
expressed an unqualified opinion. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at June 30 2000, by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
August 11, 2000
83
<PAGE>
Notes:
84
<PAGE>
At Citizens Funds, we are determined to do everything we can to let investors
know just how much we value their business. That's why we offer a comprehensive
range of services that includes everything from attentive telephone
representatives to an informative web site.
A Full Range of Socially Responsible No-Load Mutual Funds*
Citizens Index Fund
Citizens Emerging Growth Fund
Citizens Small Cap Index Fund
Citizens Global Equity Fund
Citizens Income Fund
Working Assets Money Market Fund
Free Exchanges Between Citizens Funds
You can move your money easily and without penalty from any one of our funds to
another.
Individual Retirement Plans (IRA)
We offer investors the opportunity to invest in a variety of IRAs, including
Traditional, Roth and Rollover. Citizens Funds are also available for 401(k),
403(b), SEP and SIMPLE retirement plans.
Automatic Investment Plan
Invest automatically on a monthly or quarterly basis with payroll deduction or
electronic transfer from your bank.
Unparalleled Customer Service
Our representatives are well-trained, salaried professionals whose goal is to
satisfy most requests during the first phone call.
Representatives are available from 9 a.m. to 8 p.m. (ET) Monday--Friday at (800)
223-7010.
www.citizensfunds.com
Our web site offers daily fund prices and performance, fund and manager
profiles, fund prospectuses and applications, shareholder activism updates,
online account access 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.
Investments in the Citizens Emerging Growth Fund and Citizens Small Cap Index
Fund involve unique risks, as small- and medium-sized companies may have
inexperienced management, a limited product line, a difficult time obtaining
financing or market share, and their shares may be more volatile and not traded
as frequently or in as large a volume as larger companies.
Investments in the Citizens Global Equity Fund involve risks of investing in
foreign markets, including political instability and currency risks, excessive
taxation, different financial and auditing standards, increased market
volatility and other factors.
Investments in the Working Assets Money Market Fund are not insured or
guaranteed by the FDIC or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
<PAGE>
Trustees:
Sophia Collier
Pablo S. Eisenberg
Mitchell Johnson
Azie Taylor Morton, Chair
Martha S. Pope
Ada Sanchez
John L. Shields
Distributor:
Citizens Securities, Inc.
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Manager:
Citizens Advisers(SM)
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Custodian:
State Street Bank
& Trust Company
Boston, MA 02110
Transfer Agent and
Dividend Disbursing Agent:
PFPC Inc.
Wilmington, DE 19899
Legal Counsel:
Bingham Dana LLP
Boston, MA 02110
Independent Auditors:
PricewaterhouseCoopers, LLP
Boston, MA 02110
[LOGO] CITIZENS FUNDS(R)
Citizens Funds are available through such popular mutual fund supermarkets
as Charles Schwab's Mutual Fund OneSource and Fidelity Investment's
FundsNetwork.
This report is intended for shareholders of Citizens Funds and is not
authorized for distribution to other persons unless accompanied or
preceded by a prospectus.
[RECYCLE LOGO] Printed on recycled paper with soy based inks.
[LOGO] PRINTED WITH
SOY INK
