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T h e E B I
Funds, Inc.
1 9 9 5
S E M I -
A N N U A L
R E P O R T
[INVESCO LOGO]
EBI PORTFOLIO MANAGEMENT PROGRAM
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The EBI Funds, Inc. is an open-end, diversified management investment company
consisting of eight separate investment portfolios (the "Funds"). The Funds are
as follows:
EBI FLEX PORTFOLIO
EBI EQUITY PORTFOLIO
EBI MULTIFLEX PORTFOLIO
EBI INTERNATIONAL VALUE FUND
EBI REAL ESTATE FUND
EBI INCOME PORTFOLIO
EBI RELATIVE RETURN BOND PORTFOLIO
EBI CASH MANAGEMENT PORTFOLIO
TABLE OF CONTENTS
1
Shareholder Letter
2
Statement of Investment Securities
19
Statement of Assets and Liabilities
21
Statement of Operations
23
Statement of Changes in Net Assets
26
Notes to Financial Statements
29
Financial Highlights
The financial statement contained herein are submitted for the general
information of the
shareholders of the Funds. This report is not authorized for distribution to
prospective investors
in the Funds unless preceded or accompanied by an effective Prospectus.
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[INVESCO LOGO] 1315 Peachtree Street, N.E., Suite 500
INVESCO SERVICES, INC. Atlanta, Georgia 30309
EBI Portfolio Management Program Telephone: (404) 892-0896
Hubert L. Harris, Jr. Facsimile: (404) 876-4692
President
August 15, 1995
Dear INVESCO/EBI Shareholder:
We are pleased to offer this Semi-Annual Report of the EBI Funds, Inc. and
hope that you will take a few moments to review the information contained
herein. This report will give you additional perspective on the capital markets
and how INVESCO manages your money.
The financial environment in the U.S. for both stocks and bonds so far this
year could not have been much better. Interest rates declined, corporate profits
were strong, inflation remained under control, and corporate mergers added to a
rising U.S. stock market in the first six months of 1995. Interest rates came
down substantially as the economy continued to slow and the demand for credit
fell. The result of the decline in rates was significant price appreciation in
bonds, quite a change from the difficult bond market of 1994 and the best first
half since the inception of the Government/Corporate bond index in 1973. Most
major stock markets around the world performed relatively well in the first half
of 1995 with the strength of both U.S. stocks and bonds providing a very
positive background. The one exception was Japan which suffered from fears of
asset deflation.
Whatever the investment option, INVESCO maintains an investment philosophy
derived from our many years of managing very risk-averse institutional accounts.
Our disciplines are designed to do three things:
- maximize predictability and consistency of investment returns
- minimize reliance on uncertain forecasts of future events
- control risk by strict attention to portfolio design
THE EBI FLEX PORTFOLIO our "flagship" portfolio, adds value several ways:
stock selection, bond selection and asset allocation. Each component worked well
in the first half of 1995. Year-to-date, EBI Flex has gained 16.1% versus 13.9%
for the Lipper Average. The fund has favored equities all year, and this has
proven beneficial as stocks have outperformed bonds. At June 30, 1995 the asset
mix was 63% equities and 37% bonds.
THE EBI MULTIFLEX PORTFOLIO also provided strong returns for the first half.
MultiFlex was up 10.6%, with five of six asset classes having matched or
outperformed their benchmarks. MultiFlex provides equity investors with
tremendous diversification, offering participation in rising markets and
protection of principal in falling markets. The target allocation for MultiFlex
accounts at June 30, 1995 was: large capitalization stocks 18.6%, small
capitalization stocks 24.7%, international stocks 22.7%, real estate securities
21.1%, and fixed income 12.9%.
THE EBI EQUITY PORTFOLIO has continued to participate in a rapidly rising
stock market for the first six months of 1995 without relying on the hot
technology sector where we are underweighted. The fund was up 16.5% for the
first half which lagged the market slightly. In the more difficult market of
1994, the Equity Fund exceeded the S&P 500 2.7% versus 1.3%, and for the twelve
months ended June 30, 1995 EBI Equity was up 22.9%.
Since its inception at May 1, 1995, THE EBI INTERNATIONAL VALUE PORTFOLIO is
up 2.2%. The Fund's goal is to produce above market returns with less than
market risk. As with our other disciplines, INVESCO's international approach
emphasizes stability and consistency of returns. We are typically underweighted
in Japan which historically has been a more volatile market. INVESCO, as a
global organization, is uniquely positioned to manage international securities,
drawing on the local knowledge and expertise of our portfolio managers and
analysts in our eleven foreign offices.
THE EBI REAL ESTATE PORTFOLIO, also initiated May 1, 1995, utilizes the same
risk-averse investment disciplines which have been employed for institutional
accounts since 1988. The fund's goal is to provide a high total return over a
long term investment period through a combination of dividend yield and capital
appreciation. Real estate is currently rebounding from a deep depression. Equity
real estate securities are an efficient way for investors to access the current
return, appreciation potential and diversification benefits offered by the real
estate market. Since inception (two months), the EBI Real Estate Fund is up
2.0%.
Both fixed income portfolios, THE EBI INCOME PORTFOLIO and the EBI RELATIVE
RETURN BOND PORTFOLIO exhibited strong performance for the first six months of
1995. EBI Income had a total return of 13.2% for the six months, resulting from
our discipline which called for lengthening average maturities to thirteen
years. The Relative Return Fund also posted strong gains, growing 10.1% for the
six months.
Once again, let me say how much we appreciate the confidence you have placed
in INVESCO by allowing us to manage your investments in INVESCO/EBI. If you have
any questions at all, please call our Shareholder Services toll-free line at
(800) 554-1156 or feel free to contact me directly.
Sincerely,
/s/ HUBERT L. HARRIS, JR.
HLH:jm
Enclosure
1
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THE EBI FUNDS, INC.
STATEMENT OF INVESTMENT SECURITIES
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JUNE 30, 1995 (UNAUDITED)
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SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
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EBI FLEX FUND
COMMON STOCKS 63.60%
BASIC MATERIALS 3.79%
Alcan Aluminum Ltd. ........................................ 75,000 $ 2,268,750
Dow Chemical Co. ........................................... 45,000 3,234,375
Imperial Chemical Industries PLC, Sponsored ADR............. 50,000 2,437,500
Westvaco Corp. ............................................. 90,000 3,982,500
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11,923,125
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CAPITAL GOODS 6.57%
Boeing Co. ................................................. 80,000 5,010,000
COMPAQ Computer Corp.*...................................... 75,000 3,403,125
General Electric Co. ....................................... 75,000 4,228,125
Lockheed Martin Corp. ...................................... 81,500 5,144,687
Snap-On Tools Corp. ........................................ 75,000 2,906,250
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20,692,187
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CONSUMER CYCLICAL 8.99%
Deluxe Corp. ............................................... 100,000 3,312,500
Ford Motor Corp. ........................................... 150,000 4,462,500
K Mart Corp. ............................................... 200,000 2,925,000
Liz Claiborne, Inc. ........................................ 125,000 2,656,250
McDonald's Corp. ........................................... 110,000 4,303,750
Melville Corp. ............................................. 100,000 3,425,000
Rite-Aid Corp. ............................................. 125,000 3,203,125
Tandy Corp. ................................................ 75,000 3,890,625
U.S. Industries, Inc. ...................................... 7,500 102,188
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28,280,938
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CONSUMER STAPLES 14.37%
Abbott Laboratories......................................... 100,000 4,050,000
American Brands, Inc. ...................................... 100,000 3,975,000
American Home Products Corp. ............................... 60,000 4,642,500
Anheuser-Busch Cos., Inc. .................................. 60,000 3,412,500
Columbia/HCA Healthcare, Inc. .............................. 100,000 4,325,000
Fleming Companies, Inc. .................................... 75,000 1,987,500
Heinz (H.J.) Co. ........................................... 100,000 4,437,500
Lilly (Eli) & Co. .......................................... 50,000 3,925,000
Marion Merrell Dow, Inc. ................................... 100,000 2,550,000
Philip Morris Cos., Inc. ................................... 65,000 4,834,375
SuperValu, Inc. ............................................ 87,000 2,533,875
Unilever N.V. .............................................. 35,000 4,554,375
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45,227,625
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DIVERSIFIED 5.44%
DuPont (E.I.) de Nemours & Co. ............................. 50,000 3,437,500
Hanson PLC, Sponsored ADR................................... 175,000 3,084,375
Minnesota Mining & Manufacturing Co. ....................... 60,000 3,435,000
National Service Industries, Inc. .......................... 75,000 2,165,625
Norsk Hydro, Sponsored ADR.................................. 50,000 2,087,500
Textron, Inc. .............................................. 50,000 2,906,250
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17,116,250
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ENERGY 3.33%
Amoco Corp. ................................................ 50,000 3,331,250
Repsol, Sponsored ADR....................................... 110,000 3,478,750
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PRINCIPAL
DESCRIPTION AMOUNT VALUE
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EBI FLEX FUND
ENERGY (CONTINUED)
Royal Dutch Petroleum Co. .................................. 30,000 $ 3,656,250
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10,466,250
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FINANCE 10.36%
American General Corp. ..................................... 70,000 2,362,500
Dun & Bradstreet Corp. ..................................... 60,000 3,150,000
First of America Bank Corp. ................................ 75,000 2,784,375
Morgan Stanley Group, Inc. ................................. 50,000 4,050,000
NationsBank Corp. .......................................... 75,000 4,021,875
NBD Bancorp, Inc. .......................................... 190,000 6,080,000
Ohio Casualty Corp. ........................................ 100,000 3,150,000
SAFECO Corp. ............................................... 60,000 3,446,250
Wachovia Corp. ............................................. 100,000 3,575,000
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32,620,000
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TECHNOLOGY 4.90%
Computer Associates International, Inc. .................... 80,000 5,420,000
Hewlett-Packard Co. ........................................ 70,000 5,215,000
International Business Machines Corp. ...................... 50,000 4,800,000
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15,435,000
-------------
TRANSPORTATION & SERVICES 1.09%
Browning-Ferris Industries, Inc. ........................... 95,000 3,431,875
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UTILITIES 4.76%
NYNEX Corp. ................................................ 75,000 3,018,750
Telefonica de Espana, Sponsored ADR......................... 75,000 2,906,250
Telefonos de Mexico, Sponsored ADR.......................... 100,000 2,962,500
Texas Utilities Co. ........................................ 100,000 3,437,500
Unicom Corp. ............................................... 100,000 2,662,500
-------------
14,987,500
-------------
TOTAL COMMON STOCKS (COST $154,682,044)..................... 200,180,750
-------------
FIXED INCOME SECURITIES 31.93%
U.S. GOVERNMENT OBLIGATIONS 27.22%
U.S. Treasury Notes
8.500%, 08/15/1995......................................... 1,000,000 1,003,125
7.375%, 05/15/1996......................................... 2,500,000 2,534,375
5.500%, 07/31/1997......................................... 4,000,000 3,975,000
8.250%, 07/15/1998......................................... 2,000,000 2,127,500
7.125%, 10/15/1998......................................... 5,000,000 5,181,250
8.875%, 02/15/1999......................................... 4,250,000 4,657,732
6.375%, 07/15/1999......................................... 5,000,000 5,073,435
8.750%, 08/15/2000......................................... 5,000,000 5,598,435
7.875%, 08/15/2001......................................... 5,000,000 5,457,810
9.375%, 02/15/2006......................................... 4,250,000 5,254,063
9.250%, 02/15/2016......................................... 15,000,000 19,279,680
8.125%, 08/15/2019......................................... 12,000,000 13,998,744
7.250%, 08/15/2022......................................... 7,000,000 7,476,875
-------------
81,618,024
-------------
U.S. Treasury Strips PO
0.000%, 08/15/2014......................................... 15,000,000 4,055,250
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $78,207,185)......................................... 85,673,274
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SHARES OR
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DESCRIPTION AMOUNT VALUE
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EBI FLEX FUND
U.S. GOVERNMENT AGENCY OBLIGATIONS 1.61%
Government National Mortgage Assn.
6.500%, 10/15/2008 Pool #354668............................ 1,733,753 $ 1,709,364
7.000%, 10/15/2008 Pool #372807............................ 1,617,383 1,622,429
6.000%, 11/15/2008 Pool #365945............................ 1,779,711 1,722,974
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,273,596).......................................... 5,054,767
-------------
CORPORATE BONDS 3.10%
FINANCE 0.94%
Associates Corp., North America, 4.750%, 08/01/1996......... 1,500,000 1,479,503
NationsBank Corp., 5.375%, 04/15/2000....................... 1,550,000 1,479,977
-------------
2,959,480
-------------
INDUSTRIAL 1.81%
Conagra, Inc., 9.750%, 11/01/1997........................... 1,000,000 1,072,772
Ford Motor Co., 7.500%, 11/15/1999.......................... 750,000 776,578
Illinois Tool Works, Inc., 7.500%, 12/01/1998............... 600,000 621,904
PepsiCo, Inc., 5.000%, 02/24/1997........................... 1,000,000 983,970
Rockwell International, Inc., 6.625%, 06/01/2005............ 1,500,000 1,490,493
Wal Mart Stores, Inc., 5.500%, 03/01/1998................... 750,000 738,011
-------------
5,683,728
-------------
UTILITIES 0.35%
Carolina Power and Light Co., 5.000%, 09/15/1998............ 1,000,000 960,040
Union Electric Co., 6.750%, 10/15/1999...................... 150,000 151,018
-------------
1,111,058
-------------
TOTAL CORPORATE BONDS (COST $9,885,969)..................... 9,754,266
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $93,366,750)......................................... 100,482,307
-------------
SHORT TERM INVESTMENTS 4.47%
COMMERCIAL PAPER 1.58%
AT & T Capital Corp.
5.860%, 07/14/1995 (Cost $4,989,419)....................... 5,000,000 4,989,419
-------------
OTHER SECURITIES 2.89%
United Missouri Bank, Money Market Fiduciary ~
5.079% (Cost $9,092,504)................................... 9,092,504 9,092,504
-------------
TOTAL SHORT TERM INVESTMENTS (COST $14,081,923)............. 14,081,923
-------------
TOTAL INVESTMENTS
(100.00%)(Cost $262,130,717#).............................. $ 314,744,980
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EBI EQUITY FUND
COMMON STOCKS 92.52%
BASIC MATERIALS 5.65%
Akzo N.V. ADR............................................... 13,800 $ 826,275
Imperial Chemical Industries PLC ADR........................ 33,200 1,618,500
Nalco Chemical Co. ......................................... 21,000 763,875
Pioneer Hi-Bred International, Inc. ........................ 25,000 1,050,000
Westvaco Corp. ............................................. 30,000 1,327,500
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5,586,150
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DESCRIPTION AMOUNT VALUE
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EBI EQUITY FUND
COMMON STOCKS (CONTINUED)
CAPITAL GOODS 10.98%
Automatic Data Processing, Inc. ............................ 13,000 $ 817,375
Boeing Co. ................................................. 28,400 1,778,550
Browning-Ferris Industries, Inc. ........................... 23,500 848,937
Dover Corp. ................................................ 10,300 749,325
Emerson Electric Co. ....................................... 12,000 858,000
Lockheed Martin Corp. ...................................... 35,860 2,263,663
Pitney Bowes, Inc. ......................................... 25,700 986,238
Raytheon Co. ............................................... 19,700 1,529,213
WMX Technologies, Inc. ..................................... 36,000 1,021,500
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10,852,801
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CONSUMER CYCLICAL 13.97%
Cooper Tire and Rubber Co. ................................. 52,000 1,267,500
Dillard Department Stores, Inc., Cl. A...................... 31,300 919,437
Disney (Walt) Co. .......................................... 30,400 1,691,000
Donnelley (R.R.) & Sons Co. ................................ 30,000 1,080,000
Fleming Companies, Inc. .................................... 23,800 630,700
Home Depot, Inc. ........................................... 25,000 1,015,625
K Mart Corp. ............................................... 88,200 1,289,925
Maytag Corp. ............................................... 66,900 1,070,400
McDonald's Corp. ........................................... 53,400 2,089,275
Penney (J. C.) Co., Inc. ................................... 20,000 960,000
Russell Corp. .............................................. 28,000 805,000
Shaw Industries, Inc. ...................................... 54,500 926,500
U.S. Industries, Inc. ...................................... 4,150 56,544
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13,801,906
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CONSUMER STAPLES 23.41%
Abbott Laboratories......................................... 50,400 2,041,200
American Home Products Corp. ............................... 21,000 1,624,875
Anheuser-Busch Cos., Inc. .................................. 23,200 1,319,500
Columbia/HCA Healthcare, Inc. .............................. 35,200 1,522,400
Giant Food, Inc., Cl. A..................................... 59,000 1,674,125
Heinz (H.J.) Co. ........................................... 38,900 1,726,187
Lilly (Eli) & Co. .......................................... 25,000 1,962,500
Manor Care, Inc. ........................................... 48,400 1,409,650
Merck & Co., Inc. .......................................... 41,900 2,053,100
PepsiCo, Inc. .............................................. 35,000 1,596,875
Philip Morris Cos., Inc. ................................... 25,000 1,859,375
Schering-Plough Corp. ...................................... 15,600 688,350
Tyson Foods, Inc., Cl. A.................................... 46,000 1,063,750
UST, Inc. .................................................. 34,000 1,011,500
Warner Lambert Co. ......................................... 18,300 1,580,663
-------------
23,134,050
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DIVERSIFIED 6.18%
General Electric Co. ....................................... 29,000 1,634,875
Hanson PLC ADR.............................................. 83,000 1,462,875
Minnesota Mining & Manufacturing Co. ....................... 20,000 1,145,000
Textron, Inc. .............................................. 32,000 1,860,000
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6,102,750
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ENERGY 6.03%
Amoco Corp. ................................................ 24,600 1,638,975
Exxon Corp. ................................................ 22,000 1,553,750
Repsol, Sponsored ADR....................................... 30,000 948,750
Royal Dutch Petroleum Co. .................................. 14,900 1,815,937
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5,957,412
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FINANCE 14.25%
American General Corp. ..................................... 52,000 1,755,000
American International Group, Inc. ......................... 15,400 1,755,600
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SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
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EBI EQUITY FUND
FINANCE (CONTINUED)
Boatmen's Bancshares, Inc. ................................. 35,000 $ 1,233,750
Dun & Bradstreet Corp. ..................................... 35,000 1,837,500
First of America Bank Corp. ................................ 40,000 1,485,000
General RE Corp. ........................................... 4,400 589,050
Jefferson-Pilot Corp. ...................................... 16,000 876,000
MBIA, Inc. ................................................. 7,000 465,500
Morgan Stanley Group, Inc. ................................. 18,500 1,498,500
NBD Bancorp, Inc. .......................................... 53,800 1,721,600
SAFECO Corp. ............................................... 15,000 861,562
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14,079,062
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TECHNOLOGY 6.95%
COMPAQ Computer Corp.*...................................... 21,000 952,875
Computer Associates International, Inc. .................... 31,000 2,100,250
Hewlett-Packard Co. ........................................ 28,000 2,086,000
International Business Machines Corp. ...................... 18,000 1,728,000
-------------
6,867,125
-------------
TRANSPORTATION & SERVICES 1.18%
Hunt (J.B.) Transport Services, Inc. ....................... 63,250 1,162,219
-------------
UTILITIES 3.92%
Cinergy Corp. .............................................. 61,000 1,601,250
SCE Corp. .................................................. 62,000 1,061,750
Telefonos de Mexico, Sponsored ADR.......................... 40,800 1,208,700
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3,871,700
-------------
TOTAL COMMON STOCKS (COST $73,130,687)...................... 91,415,175
-------------
PREFERRED STOCKS 1.37%
AUTOMOBILE RELATED 1.37%
Ford Motor Corp. Pfd. A. (Cost $1,297,827).................. 14,000 1,359,750
-------------
SHORT TERM INVESTMENTS 6.11%
COMMERCIAL PAPER 3.54%
Xerox Credit Corp.
5.950%, 07/07/95........................................... 1,500,000 1,498,513
Toys "R" Us, Inc.
5.900%, 07/11/95........................................... 1,000,000 998,361
Bell Atlantic Financial Services, Inc.
5.930%, 07/20/95........................................... 1,000,000 996,870
-------------
TOTAL COMMERCIAL PAPER (COST $3,493,744).................... 3,493,744
-------------
OTHER SECURITIES 2.57%
United Missouri Bank, Money Market Fiduciary ~
5.079% (Cost $2,539,000)................................... 2,539,000 2,539,000
-------------
TOTAL SHORT TERM INVESTMENTS (COST $6,032,744).............. 6,032,744
-------------
TOTAL INVESTMENTS
(100.00%) (Cost $80,461,258#).............................. $ 98,807,669
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DESCRIPTION AMOUNT VALUE
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EBI MULTIFLEX FUND
COMMON STOCKS 84.78%
LARGE CAPITALIZATION EQUITIES 17.46%
Abbott Laboratories......................................... 13,400 $ 542,700
American General Corp. ..................................... 11,500 388,125
American Home Products Corp. ............................... 5,500 425,563
American International Group, Inc. ......................... 3,700 421,800
Atlantic Richfield Co. ..................................... 3,900 428,025
Boatmen's Bancshares, Inc. ................................. 14,100 497,025
Boeing Co. ................................................. 3,400 212,925
Bristol-Myers Squibb Co. ................................... 6,500 442,812
Cinergy Corp. .............................................. 18,000 472,500
Columbia/HCA Healthcare, Inc. .............................. 12,619 545,772
COMPAQ Computer Corp.*...................................... 5,100 231,412
Computer Associates International, Inc. .................... 3,600 243,900
Cooper Tire and Rubber Co. ................................. 8,500 207,188
Dillard Dept. Stores, Inc., Cl. A........................... 4,900 143,938
Disney (Walt) Co. .......................................... 9,600 534,000
Dow Chemical Co. ........................................... 6,600 474,375
Dun & Bradstreet Corp. ..................................... 8,000 420,000
Emerson Electric Co. ....................................... 6,200 443,300
Exxon Corp. ................................................ 7,000 494,375
Federal National Mortgage Assn.............................. 5,200 490,750
Fleming Companies, Inc. .................................... 9,000 238,500
Ford Motor Corp. ........................................... 18,400 547,400
Gannett Co., Inc. .......................................... 4,000 217,000
General Electric Co. ....................................... 8,000 451,000
General RE Corp. ........................................... 1,800 240,975
Hewlett-Packard Co. ........................................ 8,200 610,900
Home Depot, Inc. ........................................... 8,000 325,000
Johnson & Johnson........................................... 7,900 534,238
K Mart Corp. ............................................... 22,200 324,675
Lilly (Eli) & Co. .......................................... 5,400 423,900
Lockheed Martin Corp. ...................................... 7,116 449,198
Manor Care, Inc. ........................................... 11,700 340,762
Marsh & McLennan Companies, Inc. ........................... 2,600 210,925
McDonald's Corp. ........................................... 16,000 626,000
Merck & Co., Inc. .......................................... 12,300 602,700
Morgan Stanley Group, Inc. ................................. 6,700 542,700
NBD Bancorp, Inc. .......................................... 9,300 297,600
PepsiCo, Inc. .............................................. 11,000 501,875
Philip Morris Cos., Inc. ................................... 9,000 669,375
Pioneer Hi-Bred International, Inc. ........................ 5,500 231,000
Pitney-Bowes, Inc. ......................................... 14,000 537,250
Raytheon Co. ............................................... 7,000 543,375
Roadway Services, Inc. ..................................... 6,000 283,500
Royal Dutch Petroleum Co. .................................. 6,000 731,250
Russell Corp. .............................................. 5,100 146,625
SAFECO Corp. ............................................... 8,000 459,500
Schering-Plough Corp. ...................................... 12,800 564,800
Shaw Industries, Inc. ...................................... 21,000 357,000
Southern New England Telecommunications Corp. .............. 11,000 387,750
Texas Utilities Co. ........................................ 9,100 312,813
Textron, Inc. .............................................. 10,000 581,250
Toys "R" Us, Inc.*.......................................... 4,400 128,700
Tyson Foods, Inc., Cl. A.................................... 15,000 346,875
Unicom Corp. ............................................... 10,000 266,250
Vulcan Materials Co. ....................................... 6,400 348,800
Wachovia Corp. ............................................. 10,000 357,500
Westvaco Corp. ............................................. 8,000 354,000
Whirlpool Corp. ............................................ 6,500 357,500
WMX Technologies, Inc. ..................................... 18,300 519,263
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24,030,209
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PRINCIPAL
DESCRIPTION AMOUNT VALUE
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EBI MULTIFLEX FUND
SMALL CAPITALIZATION EQUITIES 22.75%
Acordia, Inc. .............................................. 4,600 $ 147,775
Acuson Corp.*............................................... 5,300 64,263
ACX Technologies, Inc.*..................................... 5,100 212,925
Advanced Technology Laboratories, Inc. ..................... 8,300 130,725
AGCO Corp. ................................................. 4,050 151,875
Airborne Freight Corp. ..................................... 1,400 28,350
A.L. Pharmaceuticals, Inc., Cl. A........................... 4,000 75,000
Alaska Air Group, Inc.*..................................... 9,200 169,050
Albank Financial Corp. ..................................... 13,200 344,850
Alberto-Culver Co., Cl. B................................... 4,900 148,225
Alexander's, Inc.*.......................................... 300 16,650
American Annuity Group, Inc. ............................... 20,400 201,450
AMSCO International, Inc.*.................................. 16,200 224,775
Ann Taylor Stores Corp.*.................................... 400 9,300
Apple South, Inc. .......................................... 2,850 55,575
Applebee's International, Inc. ............................. 1,000 25,750
Arctco, Inc. ............................................... 800 9,400
Armco, Inc. ................................................ 33,100 223,425
Arrow Electronics, Inc. .................................... 262 13,035
Arthur J. Gallagher & Co. .................................. 1,500 54,562
Astoria Financial Group Corp.*.............................. 3,000 107,250
Augat, Inc. ................................................ 1,900 38,950
Autocam Corp.*.............................................. 840 10,080
Automotive Inds. Hldgs., Inc., Cl. A*....................... 1,100 29,837
Baldor Electric Co. ........................................ 2,100 60,113
Banta Corp. ................................................ 3,000 99,750
Bergen Brunswig Corp., Cl. A................................ 4,800 109,800
Berkley (W.R.) Corp. ....................................... 2,300 81,650
BHC Financial, Inc. ........................................ 11,600 189,950
Bio-Rad Laboratories, Inc., Cl. A*.......................... 8,000 288,000
Borg-Warner Automotive, Inc. ............................... 2,100 59,850
Cadence Design Systems, Inc. ............................... 7,100 229,863
Camco International, Inc. .................................. 7,700 179,988
Canandaigua Wine Co., Inc.,Cl. A*........................... 6,100 272,975
Carlisle Cos., Inc. ........................................ 2,700 103,275
Carmike Cinemas, Inc., Cl. A*............................... 1,400 33,950
Carpenter Technology Corp. ................................. 2,800 190,750
Casey's General Stores, Inc. ............................... 600 10,800
Castle Energy Corp. ........................................ 2,000 20,750
CCB Financial Corp. ........................................ 2,500 104,375
Cellular Communications, Inc.*.............................. 3,100 94,938
Cellular Communications, Inc., Cl. A*....................... 7,800 354,900
Central Maine Power Co. .................................... 19,600 232,750
Central Newspapers, Inc., Cl. A............................. 6,400 189,600
Centura Banks, Inc. ........................................ 3,200 89,200
Chefs International, Inc.*.................................. 400 200
Chesapeake Corp. ........................................... 5,100 158,737
Chesapeake Energy Corp.*.................................... 500 12,875
Chris-Craft Industries, Inc.*............................... 2,884 100,940
Citizens Corp. ............................................. 900 14,738
Clear Channel Communications, Inc.*......................... 1,100 70,812
Cleveland-Cliffs, Inc. ..................................... 8,600 331,100
Coastal Bancorp. ........................................... 9,100 147,875
Collagen Corp. ............................................. 6,100 104,463
Commerce Bancorp, Inc. ..................................... 800 15,500
Commonwealth Energy Systems................................. 4,400 166,100
Community Psychiatric Centers*.............................. 4,600 51,750
Conner Peripherals, Inc.*................................... 4,400 54,450
Consolidated Stores Corp.*.................................. 11,500 240,063
Corvel Corp.*............................................... 700 15,050
CPI Corp. .................................................. 10,000 191,250
Credence Systems Corp.*..................................... 7,200 217,800
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PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
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EBI MULTIFLEX FUND
SMALL CAPITALIZATION EQUITIES (CONTINUED)
Credit Acceptance Corp.*.................................... 2,200 $ 45,100
Cullen/Frost Bankers, Inc. ................................. 2,000 81,000
Cypress Semiconductor Corp.*................................ 10,800 437,400
Cytec Industries, Inc.*..................................... 400 16,350
Davidson & Associates, Inc.*................................ 400 15,900
Deposit Guaranty Corp. ..................................... 2,400 93,600
Devon Group, Inc. .......................................... 3,700 109,150
Dime Bancorp, Inc. ......................................... 25,665 256,650
Donaldson Co., Inc. ........................................ 2,000 52,250
E. W. Blanch Holdings, Inc. ................................ 3,800 70,775
Eckerd Corp.*............................................... 2,100 67,200
Electroglas, Inc.*.......................................... 3,400 194,650
Emphesys Financial Group.................................... 2,800 66,150
Express Scripts, Inc., Cl. A*............................... 1,000 35,250
Fibreboard Corp. ........................................... 5,000 120,000
FINOVA Group, Inc. ......................................... 5,400 189,000
First Commercial Corp. ..................................... 5,200 132,600
First Financial Corp. Wisc.................................. 4,900 85,750
First Michigan Bank Corp. .................................. 9,450 233,888
First Midwest Bancorp, Inc. ................................ 600 14,813
Franklin Quest Co.*......................................... 2,200 52,800
Fremont General Corp. ...................................... 4,620 111,457
FTP Software, Inc.*......................................... 12,000 360,000
G & K Services, Inc., Cl. A................................. 1,050 20,475
Giant Industries, Inc.*..................................... 900 7,650
Gibson Greetings, Inc. ..................................... 1,400 18,725
Global Marine, Inc.*........................................ 35,700 205,275
GoodMark Foods, Inc. ....................................... 6,000 96,000
Grey Advertising, Inc. ..................................... 300 57,600
Gymboree Corp.*............................................. 1,000 29,063
Harman International Industries, Inc. ...................... 2,100 85,050
Harnischfeger Industries, Inc. ............................. 7,100 245,838
Haverty Furniture Cos., Inc. ............................... 100 1,025
Healthsource, Inc.*......................................... 1,000 35,000
Hechinger Co., Cl. A........................................ 9,500 68,281
Helene Curtis Industries, Inc. ............................. 2,500 71,250
Heritage Media Corp., Cl. A*................................ 2,500 72,188
Hillhaven Corp.*............................................ 11,800 333,350
Hondo Oil & Gas Co.*........................................ 3,000 54,000
Horizon Healthcare Corp.*................................... 1,100 19,662
IDEX Corp.*................................................. 1,350 45,225
Imperial Credit Industries, Inc. ........................... 2,600 32,175
Infinity Broadcasting Corp., Cl. A*......................... 2,850 95,119
Input/Output, Inc.*......................................... 1,000 36,000
Insurance Auto Auctions, Inc.*.............................. 1,000 29,250
Inter Regional Financial Group, Inc.*....................... 12,600 371,700
International Imaging Materials, Inc.*...................... 1,500 38,250
International Multifoods Corp. ............................. 400 9,000
Interstate Power Co. ....................................... 14,500 349,812
InterVoice, Inc.*........................................... 6,800 119,000
Intuit, Inc.*............................................... 400 30,400
Invacare Corp. ............................................. 1,300 53,950
J & L Specialty Steel, Inc. ................................ 10,900 209,825
John Alden Financial Corp. ................................. 1,800 30,825
K N Energy, Inc. ........................................... 4,600 116,725
KEMET Corp.*................................................ 6,700 351,750
Kennametal, Inc. ........................................... 11,400 401,850
Kent Electronics Corp.*..................................... 1,500 56,813
Kinetic Concepts, Inc. ..................................... 8,100 57,712
KLA Instruments Corp.*...................................... 1,100 84,975
Landstar System, Inc.*...................................... 8,300 213,725
La-Z Boy Chair Co. ......................................... 500 13,188
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PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
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EBI MULTIFLEX FUND
SMALL CAPITALIZATION EQUITIES (CONTINUED)
LCI International, Inc.*.................................... 3,600 $ 110,250
Lennar Corp. ............................................... 15,100 283,125
Life Partners Group, Inc. .................................. 3,900 78,000
Lincare Holdings, Inc.*..................................... 4,700 124,844
Liposome Company, Inc.*..................................... 100 1,087
Living Centers of America*.................................. 2,000 54,250
Logicon, Inc. .............................................. 300 13,350
Luby's Cafeterias, Inc. .................................... 13,500 271,687
Lukens, Inc. ............................................... 7,100 228,975
Lydall, Inc.*............................................... 17,200 378,400
MAF Bancorp, Inc. .......................................... 3,000 70,500
Magna Group, Inc. .......................................... 12,200 268,400
Mark Twain Bancshares, Inc. ................................ 2,800 90,300
Maxim Integrated Products*.................................. 3,400 173,400
McClatchy Newspapers, Inc., Cl. A........................... 8,900 196,912
Measurex Corp. ............................................. 15,200 461,700
Media General, Inc., Cl.A................................... 3,300 103,125
Meredith Corp. ............................................. 20,800 527,800
Meyer (Fred), Inc.*......................................... 100 2,712
Mine Safety Appliances Co. ................................. 3,700 196,100
Multicare Companies*........................................ 5,700 99,038
Mutual Risk Management Ltd.................................. 700 23,450
Nautica Enterprises, Inc.*.................................. 500 18,125
Nellcor, Inc.*.............................................. 2,100 94,500
NovaCare, Inc.*............................................. 400 3,250
Oakwood Homes Corp. ........................................ 11,000 281,875
OEA, Inc. .................................................. 14,600 432,525
OrNda Healthcorp.*.......................................... 1,100 18,837
Outboard Marine Corp. ...................................... 4,800 94,200
Owens & Minor, Inc. ........................................ 22,100 276,250
People's Bank of Bridgeport, Connecticut.................... 12,200 201,300
Photronics, Inc.*........................................... 2,850 87,638
PhyCor, Inc.*............................................... 900 31,612
Physicians Health Svc., Inc., Cl. A*........................ 100 2,650
Pioneer Group, Inc. ........................................ 600 16,125
Pioneer Standard Electronics, Inc. ......................... 4,650 113,925
Pittson Minerals Group...................................... 7,800 77,025
Players International, Inc.*................................ 7,500 150,000
Pope & Talbot, Inc. ........................................ 600 9,750
Precision Castparts Corp. .................................. 13,350 468,919
Premier Bancorp*............................................ 1,700 30,600
Prime Hospitality Corp.*.................................... 1,800 17,775
Project Software & Development, Inc.*....................... 2,600 77,350
Protective Life Corp. ...................................... 22,600 615,850
Public Service Co., New Mexico*............................. 14,400 205,200
Quick and Reilly Group, Inc. ............................... 500 18,125
Quintiles Transnational Corp.*.............................. 2,100 94,500
Ralcorp Holdings, Inc.*..................................... 7,200 164,700
Read-Write Corp.*........................................... 14,900 398,575
Regal Beloit Corp. ......................................... 17,700 274,350
Regeneron Pharmaceuticals, Inc.*............................ 400 3,600
Reliance Group Holdings, Inc. .............................. 1,300 8,450
Rex Stores Corp.*........................................... 800 11,200
Reynolds & Reynolds Co., Cl. A.............................. 2,300 67,850
Riggs National Corp.*....................................... 6,900 68,137
Robert Half International, Inc.*............................ 7,500 192,187
Rock-Tenn. Co., Cl. A....................................... 200 3,550
Sanifill, Inc.*............................................. 900 28,237
SCI Systems, Inc.*.......................................... 15,400 385,000
SEI Corp. .................................................. 6,600 148,500
Sequent Computer Systems, Inc.*............................. 3,500 62,344
Sierra On-Line, Inc.*....................................... 2,700 67,500
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PRINCIPAL
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----------------------------------------------------------------------------------------
<S> <C> <C>
EBI MULTIFLEX FUND
SMALL CAPITALIZATION EQUITIES (CONTINUED)
Silicon Valley Group, Inc.*................................. 2,200 $ 79,750
Smith (A.O.) Corp. ......................................... 2,700 63,450
Smith International, Inc.*.................................. 15,000 251,250
Smith's Food & Drug Centers, Inc., Cl. B.................... 11,100 219,225
Smithfield Foods, Inc.*..................................... 600 12,788
Sonat Offshore Drilling Co. ................................ 14,900 428,375
Southwest Gas Corp. ........................................ 10,200 145,350
Sovereign Bancorp, Inc. .................................... 3,400 32,725
Springs Industries, Inc., Cl. A............................. 7,400 275,650
St. Paul Bancorp, Inc. ..................................... 8,300 185,712
Sterling Software, Inc.*.................................... 2,300 88,550
Strawbridge & Clothier, Cl. A............................... 6,300 126,000
Student Loan Corp. ......................................... 1,600 43,000
SunGard Data Systems, Inc.*................................. 1,700 88,825
Sunrise Medical, Inc.*...................................... 2,800 87,150
Surgical Care Affiliates, Inc. ............................. 2,800 53,550
Sybase, Inc.*............................................... 640 18,800
Symbol Technologies, Inc.*.................................. 4,000 153,500
Synopsys, Inc.*............................................. 7,600 475,950
Talbots, Inc. .............................................. 1,600 63,600
TCF Financial Corp. ........................................ 1,600 76,000
Tech Data Corp.*............................................ 3,500 40,031
Tejas Gas Corp.*............................................ 1,000 49,625
Teleflex, Inc. ............................................. 2,100 90,300
Terra Industries, Inc. ..................................... 2,600 31,525
Tetra Tech, Inc.*........................................... 4,375 77,656
Thermotrex Corp.*........................................... 25,400 869,950
Tiffany & Co. .............................................. 3,100 105,400
Toro Co. ................................................... 7,000 196,000
Total Petroleum of North America, Ltd....................... 5,300 58,300
Tracor, Inc.*............................................... 5,000 68,125
Tredegar Industries, Inc. .................................. 21,400 532,325
True North Communications, Inc. ............................ 6,800 128,350
Union Corp. ................................................ 17,500 277,813
Universal Health Services, Inc., Cl. B*..................... 3,800 110,200
Vesta Insurance Group, Inc. ................................ 3,900 134,062
Vicor Corp.*................................................ 1,500 67,406
Vigoro Corp. ............................................... 3,200 132,800
Vivra, Inc.*................................................ 1,800 48,825
Waban, Inc.*................................................ 7,400 110,075
Washington National Corp. .................................. 1,800 37,125
Watts Industries, Inc., Cl. A............................... 4,600 115,287
Werner Enterprises, Inc. ................................... 2,500 50,000
West Co., Inc. ............................................. 6,800 190,400
West America Bancorp. ...................................... 2,800 103,600
Western Digital Corp.*...................................... 3,600 62,550
Westpoint Stevens, Inc.*.................................... 11,100 198,412
Wicor, Inc. ................................................ 5,700 160,313
Williams Companies, Inc. ................................... 1,130 39,409
Williams-Sonoma, Inc.*...................................... 2,000 44,000
Wisconsin Central Transportation Corp.*..................... 2,200 107,800
Wolverine Tube, Inc.*....................................... 5,200 167,050
Wonderware Corp.*........................................... 4,700 189,175
Worldcom, Inc.*............................................. 1,700 45,900
Zilog, Inc.*................................................ 4,400 219,450
-------------
31,301,371
-------------
INTERNATIONAL EQUITIES 19.70%
ABN-AMRO Hldgs N.V., ADR.................................... 7,700 296,973
AEGON N.V., ADR............................................. 40,750 1,421,156
AKZO N.V., ADR.............................................. 11,400 682,575
Amcor Ltd., ADR............................................. 11,000 330,000
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PRINCIPAL
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EBI MULTIFLEX FUND
INTERNATIONAL EQUITIES (CONTINUED)
Associated British Foods Ltd., ADR.......................... 20,000 $ 211,270
Australia & New Zealand Bkg. Group Ltd., Sponsored ADR...... 6,100 110,563
Banco Central Hispanoamerican, ADR.......................... 16,700 177,437
Banco De Santander SA, ADR.................................. 20,900 822,938
BASF AG, ADR................................................ 4,000 170,736
Bass PLC, ADR............................................... 18,300 345,412
Bayer AG, ADR............................................... 27,400 680,980
British Gas PLC, ADR........................................ 800 36,800
British Telecommunications PLC, ADR......................... 4,800 301,200
Ciba Geigy A.G., Sponsored ADR.............................. 33,500 1,227,045
Commerzbank A.G., ADR....................................... 2,400 114,718
Compagnie De Suez, ADR...................................... 2,800 77,949
Compagnie Cervecerias, ADR.................................. 5,100 135,788
CS Holding ADR.............................................. 7,700 176,273
CSR Ltd., ADR............................................... 7,800 97,308
Empresa Nacional De Electricidad, ADR....................... 9,100 448,175
Fuji Photo Film Co., Ltd., ADR.............................. 22,000 1,045,000
Gambro AB, ADR.............................................. 60,100 848,912
Glaxo Holdings PLC, ADR..................................... 8,100 197,438
Goodman Fielder Ltd., ADR................................... 57,900 192,072
Hafslund Nycomed A.S., Sponsored ADR........................ 3,900 90,187
Heineken N.V., ADR.......................................... 2,000 302,482
Hitachi Ltd., ADR........................................... 3,400 340,850
Hoechst A.G., ADR........................................... 2,200 237,464
Hong Kong Electric, ADR..................................... 41,400 140,719
Inchcape Berhad, ADR........................................ 282,200 920,790
James Hardie Industries Ltd................................. 24,000 75,533
Kingfisher PLC, ADR......................................... 14,100 190,669
Kirin Brewery Co., Ltd., ADR................................ 5,700 609,900
Konica Corp., ADR........................................... 4,400 268,975
Koninklijke Ahold N.V., ADR................................. 27,300 969,150
Marui Ltd., ADR............................................. 15,600 496,113
Matsushita Electric Industrial Co. Ltd., ADR................ 4,000 620,000
Mayne Nickless Ltd., ADR.................................... 7,400 151,852
National Australia Bank, Ltd., ADR.......................... 19,800 792,000
National Power Final, ADR................................... 5,250 155,531
Nestle SA, Sponsored ADR.................................... 17,400 905,404
Novo-Nordisk A/S, ADR....................................... 27,300 733,687
Pacific Dunlop Ltd., ADR.................................... 29,800 257,025
Petrofina SA, ADR........................................... 13,500 407,501
Pioneer International Ltd. ADR.............................. 51,000 126,526
PowerGen PLC, ADR........................................... 6,200 194,525
Sekisui Homes Ltd., ADR..................................... 6,600 816,254
Shell Transport & Trading Co. ADR........................... 10,100 730,987
Shiseido Ltd., ADR.......................................... 26,500 298,085
South China Morning Post., ADR.............................. 289,500 869,890
Southern Electric PLC, Sponsored ADR........................ 9,000 183,844
TDK Corp., ADR.............................................. 12,100 550,550
Telefonica de Espana, Sponsored ADR......................... 7,400 286,750
Telefonos de Mexico, "L", Sponsored ADR..................... 500 14,813
Tesco PLC, Sponsored ADR.................................... 17,600 81,199
Thomson-CSF, ADR*........................................... 3,000 67,500
Total, ADR.................................................. 18,600 562,650
Toyota Motor Co., ADR....................................... 18,100 719,475
Unigate PLC, ADR............................................ 166,700 1,075,398
Unilever N.V. .............................................. 6,700 871,838
United Biscuits Group, Sponsored ADR........................ 13,800 70,472
United Overseas Bk. Ltd., Sponsored ADR..................... 17,760 335,499
Vitro Sociedad Anonima, ADR................................. 6,960 60,030
Willis Corroon Group PLC, ADR............................... 20,200 242,400
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EBI MULTIFLEX FUND
INTERNATIONAL EQUITIES (CONTINUED)
Windsor Industrial Ltd. ADR................................. 20,700 $ 137,775
-------------
27,111,010
-------------
REAL ESTATE EQUITIES 24.87%
Agree Realty Corp. ......................................... 37,000 610,500
Bay Apartment Communities, Inc. ............................ 54,800 1,068,600
Beacon Properties, Inc. .................................... 38,000 755,250
CBL & Associates Prop....................................... 51,800 1,029,525
CenterPoint Properties Corp. ............................... 44,500 917,812
Colonial Properties Trust................................... 29,600 680,800
Crown American Realty Trust................................. 59,200 747,400
Developers Diversified Realty............................... 12,000 345,000
Duke Realty Investments, Inc. .............................. 77,800 2,197,850
Evans Withycombe Residential................................ 50,300 1,024,863
Excel Realty Trust, Inc. ................................... 29,000 576,375
Gables Residential Trust.................................... 42,000 861,000
General Growth Properties, Inc. ............................ 48,500 988,188
Glimcher Realty Trust....................................... 49,900 1,035,425
Health Care Reit, Inc. ..................................... 26,800 552,750
Highwoods Properties, Inc. ................................. 37,000 943,500
Horizon Outlet Centers, Inc. ............................... 32,000 744,000
JDN Realty Corp. ........................................... 50,000 1,018,750
Kimco Realty Corp. ......................................... 22,300 847,400
Koger Equity, Inc.*......................................... 107,300 938,875
McArthur/Glen Realty........................................ 13,000 190,125
Meditrust Inc. SBI.......................................... 27,100 924,788
Merry Land & Investment Co., Inc. .......................... 58,200 1,185,825
MGI Properties.............................................. 67,500 1,012,500
Nationwide Health Properties, Inc. ......................... 23,600 920,400
Oasis Residential, Inc. .................................... 43,000 935,250
Paragon Group, Inc. ........................................ 65,900 1,227,388
Post Properties, Inc. ...................................... 23,300 704,825
Regency Realty Corp. ....................................... 35,800 608,600
ROC Communities, Inc. ...................................... 11,900 263,287
Shurgard Storage Centers, Inc. ............................. 36,800 846,400
Simon Property Group, Inc. ................................. 7,200 180,900
Sizeler Property Investors, Inc. ........................... 48,800 463,600
Starwood Lodging Trust...................................... 34,500 810,750
Storage Equities, Inc. ..................................... 62,200 1,018,525
Storage Trust Realty*....................................... 58,800 1,190,700
Summit Properties, Inc. .................................... 50,400 869,400
Tucker Properties Corp. .................................... 65,000 788,125
Weeks Corp.*................................................ 33,200 830,000
Wellsford Residential Property Trust........................ 47,200 1,073,800
Western Investment Real Estate Trust........................ 24,300 288,562
-------------
34,217,613
-------------
TOTAL COMMON STOCKS (COST $106,146,326)..................... 116,660,203
-------------
FIXED INCOME SECURITIES 15.22%
U.S. GOVERNMENT OBLIGATIONS 6.14%
U.S. Treasury Notes
8.500%, 11/15/2000......................................... 700,000 778,968
8.000%, 05/15/2001......................................... 800,000 876,250
7.500%, 11/15/2001......................................... 475,000 509,586
6.250%, 02/15/2003......................................... 3,600,000 3,607,873
8.750%, 05/15/2017......................................... 2,175,000 2,682,725
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $7,880,163).......................................... 8,455,402
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 2.09%
Federal National Mortgage Assn., 94-20PA
5.450%, 06/25/2000......................................... 317,622 315,179
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EBI MULTIFLEX FUND
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
Federal Home Loan Mortgage Corp., Pool #190688
6.000%, 03/01/2009......................................... 753,190 $ 728,237
Federal Home Loan Mortgage Corp., 93-31 LC
7.000%, 08/25/2016......................................... 700,000 674,968
Federal Home Loan Mortgage Corp., PO, Strip Series 1686 B
0.000%, 02/15/2024......................................... 492,389 236,347
Federal National Mortgage Assn.
6.000%, 06/19/2025, Pool #190723........................... 980,100 918,231
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,698,583).......................................... 2,872,962
-------------
MORTGAGE SECURITIES 0.37%
The Money Store Home Equity Trust
7.100%, 11/15/2016, 1994-B Series A-3...................... 500,000 504,460
-------------
TOTAL MORTGAGE SECURITIES (COST $498,049)................... 504,460
-------------
CORPORATE BONDS 6.62%
Associates Corp. North America, 8.800%, 03/01/1996.......... 849,000 863,435
Avco Financial Services Inc., 7.500%, 11/15/1996............ 900,000 915,679
Bear Stearns Co., 5.875%, 01/15/1996........................ 800,000 798,414
Commercial Credit Corp., 8.000%, 09/01/1996................. 700,000 714,049
Dean Witter Discover & Co., 5.000%, 04/01/1996.............. 500,000 496,036
General Motors Acceptance Corp., 8.875%, 06/01/2010......... 600,000 704,229
GTE Corp., 10.250%, 11/01/2020.............................. 620,000 726,890
International Lease Finance Corp., 6.625%, 06/01/1996....... 550,000 551,349
NationsBank Corp., 5.375%, 12/01/1995....................... 500,000 498,585
NationsBank Corp., 4.750%, 08/15/1996....................... 500,000 492,536
Norwest Corp., FRN, 6.928%, 02/24/1999...................... 675,000 671,741
Province of Manitoba, 7.750%, 07/17/2016.................... 480,000 504,499
Transamerica Finance Corp., 8.550%, 06/15/1996.............. 585,000 594,944
WMX Technologies, Inc., 6.220%, 04/30/2004.................. 550,000 579,409
-------------
TOTAL COPORATE BONDS (COST $9,001,870)...................... 9,111,795
-------------
TOTAL FIXED INCOME SECURITIES
(Cost $20,078,665)......................................... 20,944,619
-------------
TOTAL INVESTMENTS
(100.00%) (Cost $126,224,991#)............................. $ 137,604,822
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
EBI INTERNATIONAL VALUE FUND
COMMON STOCKS 86.56%
INTERNATIONAL EQUITIES 86.56%
AEGON N.V., ADR............................................. 1,000 $ 34,875
Amcor Ltd., ADR ............................................ 1,400 42,000
Associated British Foods Ltd., ADR ......................... 2,500 26,409
Banco De Santander SA, ADR ................................. 700 27,563
BASF AG, ADR ............................................... 600 25,610
Bayer AG, ADR .............................................. 1,000 24,853
British Airways PLC, ADR ................................... 400 26,900
British Telecommunications PLC, ADR ........................ 400 25,100
Canon Inc., ADR ............................................ 300 24,525
Carlton Communications PLC, ADR ............................ 800 24,500
Ciba Geigy A.G., Sponsored ADR ............................. 800 29,303
Dai Nippon Printing Ltd., ADR .............................. 200 31,802
Elf Aquitaine, ADR ......................................... 1,200 44,700
Elsevier N.V., Sponsored ADR ............................... 1,500 35,438
Fuji Photo Film Co., Ltd., ADR ............................. 1,000 47,500
Gambro AB, ADR ............................................. 2,000 28,250
Groupe Danone, Sponsored ADR ............................... 800 26,933
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----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
EBI INTERNATIONAL VALUE FUND
INTERNATIONAL EQUITIES (CONTINUED)
Heineken N.V., ADR ......................................... 200 $ 30,248
Hitachi Ltd., ADR........................................... 500 50,125
HSBC Holdings PLC, ADR ..................................... 200 25,654
International Nederlanden Groep, ADR ....................... 500 27,636
Kirin Brewery Co., Ltd., ADR ............................... 400 42,800
Koninklijke Ahold N.V., ADR ................................ 1,200 42,600
LVMH Moet Hennessy, ADR .................................... 1,200 43,500
Marui Ltd., ADR ............................................ 1,600 50,883
National Australia Bank, Ltd., ADR ......................... 1,500 60,000
Nestle SA, Sponsored ADR ................................... 500 26,017
Novo-Nordisk A/S, ADR ...................................... 1,000 26,875
PowerGen PLC, ADR .......................................... 800 25,100
Repsol SA, ADR ............................................. 1,400 44,275
Royal Dutch Petroleum Co., ADR ............................. 400 48,750
RWE Aktiengessellschaf SA, ADR ............................. 700 24,301
Sandoz AG, ADR ............................................. 800 27,567
Sekisui Homes Ltd., ADR .................................... 350 43,286
SmithKline Beecham PLC, ADR ................................ 700 31,675
Societe Generale Paris, ADR................................. 1,600 37,429
Stet Societa Finanziaria, ADR............................... 1,000 27,642
Swire Pacific Ltd., ADR..................................... 7,000 53,376
Telefonica de Espana, Sponsored ADR......................... 700 27,125
Unilever N.V................................................ 200 26,025
-------------
TOTAL COMMON STOCKS (COST $1,351,426)....................... 1,369,150
-------------
SHORT TERM INVESTMENTS 13.44%
United Missouri Bank, Money Market Fiduciary ~
5.079% (Cost $212,607)..................................... 212,607 212,607
-------------
TOTAL SHORT TERM INVESTMENTS................................ 212,607
-------------
TOTAL INVESTMENTS
(100.00%) (Cost $1,564,033#)............................... $ 1,581,757
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
EBI REAL ESTATE FUND
COMMON STOCKS 83.79%
REAL ESTATE EQUITIES 83.79%
Bay Apartment Communities, Inc. ............................ 1,000 $ 19,500
Beacon Properties, Inc. .................................... 500 9,937
CBL & Associates Prop. ..................................... 500 9,937
CenterPoint Properties Corp. ............................... 1,000 20,625
Colonial Properties Trust .................................. 500 11,500
Crown American Realty Trust ................................ 1,000 12,625
Developers Diversified Realty .............................. 500 14,375
Duke Realty Investments, Inc. .............................. 1,500 42,375
Evans Withycombe Residential ............................... 1,000 20,375
Excel Realty Trust, Inc. ................................... 500 9,937
Gables Residential Trust ................................... 1,000 20,500
General Growth Properties, Inc. ............................ 1,000 20,375
Glimcher Realty Trust ...................................... 1,000 20,750
Health Care Reit, Inc. ..................................... 500 10,313
Highwoods Properties, Inc. ................................. 1,000 25,500
Horizon Outlet Centers, Inc. ............................... 500 11,625
JDN Realty Corp. ........................................... 1,000 20,375
Kimco Realty Corp. ......................................... 500 19,000
Koger Equity, Inc.* ........................................ 2,500 21,875
Meditrust, Inc. SBI ........................................ 500 17,063
Merry Land & Investment Co., Inc. .......................... 1,000 20,375
MGI Properties ............................................. 1,500 22,500
Nationwide Health Properties, Inc. ......................... 500 19,500
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
EBI REAL ESTATE FUND
REAL ESTATE EQUITIES (CONTINUED)
Oasis Residential, Inc. .................................... 800 $ 17,400
Paragon Group, Inc. ........................................ 1,500 27,938
Post Properties, Inc. ...................................... 500 15,125
Regency Realty Corp. ....................................... 1,000 17,000
ROC Communities, Inc. ...................................... 500 11,062
Shurgard Storage Centers, Inc. ............................. 500 11,500
Simon Property Group, Inc. ................................. 500 12,563
Sizeler Property Investors, Inc. ........................... 1,000 9,500
Starwood Lodging Trust ..................................... 700 16,450
Storage Equities, Inc. ..................................... 1,500 24,562
Storage Trust Realty* ...................................... 1,000 20,250
Summit Properties, Inc. .................................... 500 8,625
Tucker Properties Corp. .................................... 1,000 12,125
Weeks Corp.* ............................................... 800 20,000
Wellsford Residential Property Trust ....................... 1,000 22,750
-------------
TOTAL COMMON STOCKS (COST $663,327) 667,787
-------------
SHORT TERM INVESTMENTS 16.21%
UNITED STATES TREASURY BILLS 3.76%
4.870%, 07/06/1995 ........................................ 30,000 29,980
-------------
OTHER SECURITIES 12.45%
United Missouri Bank, Money Market Fiduciary ~
5.079% .................................................... 99,197 99,197
-------------
TOTAL SHORT TERM INVESTMENTS (COST $129,177) ............... 129,177
-------------
TOTAL INVESTMENTS
(100.00%) (Cost $792,504#) ................................ $ 796,964
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
EBI INCOME FUND
FIXED INCOME SECURITIES 99.69%
U.S. GOVERNMENT OBLIGATIONS 75.88%
U.S. TREASURY NOTES
9.500%, 11/15/1995 ........................................ 1,000,000 $ 1,013,750
8.500%, 07/15/1997 ........................................ 2,000,000 2,101,874
8.000%, 08/15/1999 ........................................ 500,000 536,718
6.375%, 01/15/2000 ........................................ 500,000 507,656
7.500%, 11/15/2001 ........................................ 2,000,000 2,145,624
10.750%, 08/15/2005 ....................................... 2,000,000 2,656,250
9.250%, 02/15/2016 ........................................ 3,000,000 3,855,936
8.125%, 08/15/2019 ........................................ 2,500,000 2,916,405
7.250%, 08/15/2022 ........................................ 3,500,000 3,738,438
-------------
19,472,651
-------------
U.S. TREASURY STRIPS PO
0.000%, 08/15/2014 ........................................ 4,000,000 1,081,400
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost $18,945,483) ....... 20,554,051
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 10.69%
FEDERAL HOME LOAN MORTGAGE
12.000%, 04/01/2000 ....................................... 12,261 12,943
-------------
GOVERNMENT NATIONAL MORTGAGE ASSN.
6.500%, 10/15/2008 Pool #354668 ........................... 977,447 963,698
6.000%, 10/15/2008 Pool #360191 ........................... 565,172 547,154
7.000%, 10/15/2008 Pool #366622 ........................... 944,759 947,707
6.000%, 11/15/2008 Pool #370907 ........................... 439,630 425,614
-------------
2,884,173
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost
$3,021,375) ............................................... 2,897,116
-------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
EBI INCOME FUND
CORPORATE BONDS 13.12%
FINANCE 5.53%
Associates Corp., North America,
4.750%, 08/01/1996 ........................................ 1,000,000 $ 986,335
PHH Corp., Notes,
8.000%, 01/01/1997 ........................................ 500,000 513,139
-------------
1,499,474
-------------
INDUSTRIAL 7.59%
Ford Motor Co.,
7.500%, 11/15/1999......................................... 500,000 517,719
Limited, Inc.,
8.875%, 08/15/1999......................................... 500,000 538,969
Rockwell International, Inc.,
6.625%, 06/01/2005 500,000 496,831
Waste Management, Inc.,
6.375%, 07/01/1997......................................... 500,000 502,109
-------------
2,055,628
-------------
TOTAL CORPORATE BONDS (Cost $3,579,112)..................... 3,555,102
-------------
TOTAL FIXED INCOME SECURITIES (Cost $25,545,970)............ 27,006,269
-------------
SHORT TERM INVESTMENTS .31%
United Missouri Bank, Money Market Fiduciary
~ 5.079% (Cost $83,000).................................... 83,000 83,000
-------------
TOTAL INVESTMENTS (100.00%) (Cost $25,628,970#)............. $ 27,089,269
-------------
-------------
</TABLE>
<TABLE>
<S> <C> <C>
EBI RELATIVE RETURN BOND FUND
FIXED INCOME SECURITIES 85.74%
U.S.GOVERMENT OBLIGATIONS 56.40%
U.S. TREASURY NOTES
4.250%, 07/31/1995.......................................... 175,000 $ 174,781
3.875%, 10/31/1995.......................................... 40,000 39,775
4.250%, 11/30/1995.......................................... 100,000 99,438
6.000%, 06/30/1996.......................................... 40,000 40,100
6.000%, 12/31/1997.......................................... 150,000 150,563
6.500%, 04/30/1999.......................................... 115,000 117,085
8.000%, 05/15/2001.......................................... 75,000 82,148
6.375%, 08/15/2002.......................................... 50,000 50,547
6.250%, 02/15/2003.......................................... 290,000 290,634
8.750%, 05/15/2017.......................................... 435,000 536,545
7.875%, 02/15/2021.......................................... 65,000 74,019
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $1,576,174).......................................... 1,655,635
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 11.92%
Federal National Mortgage Assn. Super Pac
5.450%, 06/25/2000......................................... 42,350 42,024
Federal National Mortgage Assn. Pool #50973
6.000%, 01/01/2009......................................... 85,599 82,763
Federal Home Loan Mortgage Corp. Super Pac, P2
5.250%, 10/15/2000......................................... 50,000 49,524
Federal Home Loan Mortgage Corp. TMS Series A3
7.100%, 11/15/2016......................................... 50,000 50,446
Federal Home Loan Mortgage Corp. PO Strip Series 1686
0.000%, 02/15/2024......................................... 67,760 32,525
Federal National Mortgage Assn. Pool #190723
6.000%, 04/01/2024......................................... 99,000 92,750
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $331,822)............................................ 350,032
-------------
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
DESCRIPTION AMOUNT VALUE
----------------------------------------------------------------------------------------
<S> <C> <C>
EBI RELATIVE RETURN BOND FUND
CORPORATE SECURITIES 17.42%
Associates Corp. North America, 8.375%, 06/01/1996.......... 40,000 $ 40,791
Commercial Credit Corp., 8.000%, 09/01/1996................. 35,000 35,702
Dean Witter Discover & Co., 5.000%, 04/01/1996.............. 50,000 49,604
Ford Motor Credit Corp., 9.250%, 06/15/1998................. 35,000 37,625
GTE Corp., 10.250%, 11/01/2020.............................. 100,000 117,240
International Lease Finance Corp., 6.625%, 06/01/1996....... 40,000 40,098
NationsBank Corp., 4.750%, 08/15/1996....................... 100,000 98,507
Norwest Corp., FRN, 6.928%, 02/24/1999...................... 50,000 49,759
WMX Technologies, Inc., 6.220%, 04/30/2004.................. 40,000 42,139
-------------
TOTAL CORPORATE SECURITIES (Cost $508,323).................. 511,465
-------------
TOTAL FIXED INCOME SECURITIES (Cost $2,416,319)............. 2,517,132
-------------
SHORT TERM INVESTMENTS 14.26%
United Missouri Bank, Money Market Fiduciary
~ 5.079% (Cost $418,716)................................... 418,716 418,716
-------------
TOTAL INVESTMENTS (100.00%) (Cost $2,835,035#).............. $ 2,935,848
-------------
-------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
EFFECTIVE SHARES OR
INTEREST PRINCIPAL
DESCRIPTION RATE % AMOUNT VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
EBI CASH MANAGEMENT FUND
SHORT-TERM INVESTMENTS 100.00%
COMMERCIAL PAPER 99.50%
American General Finance Corp., 07/05/1995...................... 5.880 $ 700,000 $ 699,543
Gillette Co., 07/05/1995........................................ 5.870 700,000 699,543
Dow Chemical Co., 07/06/1995.................................... 5.960 700,000 699,421
Snap-On Tools Corp., 07/06/1995................................. 5.930 700,000 699,423
Ciesco L.P., 07/10/1995......................................... 5.950 400,000 399,405
Idaho Power Corp., 07/10/1995................................... 5.900 700,000 698,967
Coca-Cola Co., 07/11/1995....................................... 5.920 700,000 698,849
Toys "R" Us, Inc., 07/11/1995................................... 5.880 700,000 698,857
Ford Motor Credit Co., 07/12/1995............................... 5.970 600,000 598,906
GTE Florida, Inc., 07/12/1995................................... 6.000 700,000 698,717
Alabama Power Co., 07/13/1995................................... 5.900 700,000 698,623
AT & T Corp., 07/14/1995........................................ 5.950 700,000 698,496
Progress Capital Holdings Corp., 07/14/1995..................... 5.990 700,000 698,486
Raytheon Co., 07/14/1995........................................ 5.950 700,000 698,496
General Electric Capital Corp., 07/18/1995...................... 5.940 700,000 698,037
Bell Atlantic Financial Corp., 07/20/1995....................... 5.930 700,000 697,809
Prudential Funding Corp., 07/21/1995............................ 5.930 750,000 747,529
Chevron Oil Finance Corp., 07/24/1995........................... 5.900 750,000 747,173
Ford Motor Credit Co., 07/25/1995............................... 5.960 150,000 149,404
MetLife Funding, Inc., 07/28/1995............................... 5.920 700,000 696,892
Xerox Corp., 08/04/1995......................................... 5.930 800,000 800,000
Fluor Corp., 08/08/1995......................................... 5.940 700,000 695,611
Cargill, Inc., 08/11/1995....................................... 5.820 700,000 695,360
PepsiCo, Inc., 08/11/1995....................................... 5.950 700,000 695,256
National Rural Utilities Co., 08/21/1995........................ 5.900 800,000 793,313
------------
TOTAL COMMERCIAL PAPER (Cost $16,797,636)....................... 16,797,636
------------
OTHER SECURITIES 0.50%
United Missouri Bank, Money Market Fiduciary ~
(Cost $84,000)................................................. 5.079 84,000 84,000
------------
TOTAL INVESTMENTS
(100.00%) (Cost $16,881,636#).................................. $ 16,881,636
------------
------------
<FN>
* Security is non-income producing.
~ Principal and interest are payable on demand.
# Also represents cost for income tax purposes.
</TABLE>
See notes to financial statements.
18
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
EBI EBI EBI
FLEX EQUITY EBI MULTIFLEX INTERNATIONAL
FUND FUND FUND VALUE FUND
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investment securities:
At cost...................................... $ 262,130,717 $ 80,461,258 $ 126,224,991 $1,564,033
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
At value..................................... $ 314,744,980 $ 98,807,669 $ 137,604,822 $1,581,757
Cash........................................... 748 910 0 0
Receivables:
Fund shares sold............................. 1,147,511 122,651 402,283 75,933
Dividends and interest....................... 2,846,893 188,820 850,143 4,728
Investment securities sold................... 0 0 1,689,092 0
------------- ------------ ------------- ------------
TOTAL ASSETS................................... 318,740,132 99,120,050 140,546,340 1,662,418
------------- ------------ ------------- ------------
LIABILITIES
Payables:
Distributions to shareholders................ 0 0 0 0
Investment securities purchased.............. 0 0 1,902,604 0
Fund shares repurchased...................... 55,506 823,362 59,937 0
Other........................................ 576,438 177,849 447,687 2,733
------------- ------------ ------------- ------------
TOTAL LIABILITIES.............................. 631,944 1,001,211 2,410,228 2,733
------------- ------------ ------------- ------------
NET ASSETS..................................... $ 318,108,188 $ 98,118,839 $ 138,136,112 $1,659,685
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
NET ASSETS
Paid-in capital................................ $ 264,629,176 $ 78,820,587 $ 128,143,988 $1,637,346
Accumulated undistributed (overdistributed) net
investment income............................. (3,848) (2,284) 396,422 4,634
Accumulated net realized gain (loss) on
investments................................... 868,597 954,125 (1,784,129) (19)
Unrealized net appreciation of investments..... 52,614,263 18,346,411 11,379,831 17,724
------------- ------------ ------------- ------------
NET ASSETS..................................... $ 318,108,188 $ 98,118,839 $ 138,136,112 $1,659,685
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
Shares outstanding............................. 5,492,879 1,514,849 3,216,903 40,618
NET ASSET VALUE PER SHARE...................... $ 57.91 $ 64.77 $ 42.94 $ 40.86
------------- ------------ ------------- ------------
------------- ------------ ------------- ------------
</TABLE>
See notes to financial statements.
19
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
EBI EBI RELATIVE EBI CASH
REAL ESTATE EBI INCOME RETURN BOND MANAGEMENT
FUND FUND FUND FUND
----------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investment securities:
At cost....................................... $ 792,504 $ 25,628,970 $ 2,835,035 $16,881,636
----------- ------------ -------------- ------------
----------- ------------ -------------- ------------
At value...................................... $ 796,964 $ 27,089,269 $ 2,935,848 $16,881,636
Cash............................................ 0 231 0 296
Receivables:
Fund shares sold.............................. 0 11,243 0 0
Dividends and interest........................ 4,807 591,186 29,956 2,101
Investment securities sold.................... 0 0 0 0
----------- ------------ -------------- ------------
TOTAL ASSETS.................................... 801,771 27,691,929 2,965,804 16,884,033
----------- ------------ -------------- ------------
LIABILITIES
Payables:
Distributions to shareholders................. 0 0 0 21,773
Investment securities purchased............... 96,113 0 0 0
Fund shares repurchased....................... 0 55,498 0 0
Other......................................... 983 51,828 3,614 14,093
----------- ------------ -------------- ------------
TOTAL LIABILITIES............................... 97,096 107,326 3,614 35,866
----------- ------------ -------------- ------------
NET ASSETS...................................... $ 704,675 $ 27,584,603 $ 2,962,190 $16,848,167
----------- ------------ -------------- ------------
----------- ------------ -------------- ------------
NET ASSETS
Paid-in capital................................. $ 695,940 $ 28,066,797 $ 2,915,626 $16,848,442
Accumulated undistributed (overdistributed) net
investment income.............................. 4,276 (44) (10) 0
Accumulated net realized gain (loss) on
investments.................................... (1) (1,942,449) (54,239) (275)
Unrealized net appreciation of investments...... 4,460 1,460,299 100,813 0
----------- ------------ -------------- ------------
NET ASSETS...................................... $ 704,675 $ 27,584,603 $ 2,962,190 $16,848,167
----------- ------------ -------------- ------------
----------- ------------ -------------- ------------
Shares outstanding.............................. 17,281 551,410 74,220 16,848,442
NET ASSET VALUE PER SHARE....................... $ 40.78 $ 50.03 $ 39.91 $ 1.00
----------- ------------ -------------- ------------
----------- ------------ -------------- ------------
</TABLE>
See notes to financial statements.
20
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
EBI EBI EBI EBI
FLEX EQUITY MULTIFLEX INTERNATIONAL
FUND FUND FUND VALUE FUND(1)
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends........................................ $ 2,765,147 $ 1,154,380 $ 2,004,823 $ 4,900
Interest......................................... 4,056,615 161,948 1,031,540 3,677
------------ ------------ ------------ -------------
TOTAL INCOME..................................... 6,821,762 1,316,328 3,036,363 8,577
------------ ------------ ------------ -------------
EXPENSES
Investment advisory fees (Note 2)................ 1,026,982 323,438 645,438 1,577
Distribution fees (Note 2)....................... 1,369,308 431,250 645,438 1,577
Operating services fees (Note 2)................. 684,654 215,625 307,765 789
------------ ------------ ------------ -------------
TOTAL EXPENSES................................... 3,080,944 970,313 1,598,641 3,943
------------ ------------ ------------ -------------
NET INVESTMENT INCOME............................ 3,740,818 346,015 1,437,722 4,634
------------ ------------ ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
SECURITIES
Net realized gain (loss) on investments.......... 1,040,611 924,507 3,583 (19)
Change in unrealized net appreciation of
investments..................................... 36,410,947 11,850,194 11,939,352 17,724
------------ ------------ ------------ -------------
NET GAIN (LOSS) ON INVESTMENTS................... 37,451,558 12,774,701 11,942,935 17,705
------------ ------------ ------------ -------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $ 41,192,376 $ 13,120,716 $ 13,380,657 $ 22,339
------------ ------------ ------------ -------------
------------ ------------ ------------ -------------
<FN>
(1) For the period May 1, 1995 (commencement of operations) through June 30,
1995.
</TABLE>
See notes to financial statements.
21
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
EBI EBI EBI RELATIVE EBI CASH
REAL ESTATE INCOME RETURN BOND MANAGEMENT
FUND(1) FUND FUND FUND
----------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends.......................................... $ 4,522 $ 0 $ 0 $ 0
Interest........................................... 951 974,589 97,833 463,993
----------- ---------- ------------ ------------
TOTAL INCOME....................................... 5,473 974,589 97,833 463,993
----------- ---------- ------------ ------------
EXPENSES
Investment advisory fees (Note 2).................. 449 97,947 7,313 38,556
Distribution fees (Note 2)......................... 499 130,597 7,313 0
Operating services fees (Note 2)................... 249 65,298 7,314 38,556
----------- ---------- ------------ ------------
TOTAL EXPENSES..................................... 1,197 293,842 21,940 77,112
----------- ---------- ------------ ------------
NET INVESTMENT INCOME.............................. 4,276 680,747 75,893 386,881
----------- ---------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
SECURITIES
Net realized gain (loss) on investments............ (1) 60,372 923 (66)
Change in unrealized net appreciation of
investments....................................... 4,460 2,522,875 203,408 0
----------- ---------- ------------ ------------
NET GAIN (LOSS) ON INVESTMENTS..................... 4,459 2,583,247 204,331 (66)
----------- ---------- ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ 8,735 $3,263,994 $ 280,224 $ 386,815
----------- ---------- ------------ ------------
----------- ---------- ------------ ------------
<FN>
(1) For the period May 1, 1995 (commencement of operations) through June 30,
1995.
</TABLE>
See notes to financial statements.
22
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EBI EBI EBI
FLEX FUND EQUITY FUND MULTIFLEX FUND
----------------------------- ----------------------------- -----------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1995 1994 1995 1994 1995 1994
------------- ------------- ------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income............. $ 3,740,818 $ 5,889,876 $ 346,015 $ 479,946 $ 1,437,722 $ 1,639,535
Net realized gain (loss) on
investments...................... 1,040,611 12,398,071 924,507 6,360,957 3,583 (1,785,609)
Change in unrealized net
appreciation (depreciation) of
investments...................... 36,410,947 (16,818,380) 11,850,194 (4,712,275) 11,939,352 (625,088)
------------- ------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS........... 41,192,376 1,469,567 13,120,716 2,128,628 13,380,657 (771,162)
------------- ------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............. (3,773,350) (5,854,696) (354,051) (476,139) (1,043,272) (1,638,474)
Net realized gain on
investments...................... 0 (12,579,717) 0 (6,484,023) 0 0
------------- ------------- ------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS............... (3,773,350) (18,434,413) (354,051) (6,960,162) (1,043,272) (1,638,474)
------------- ------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares...... 56,511,111 51,594,730 13,469,673 15,904,991 27,295,055 123,515,314
Reinvestment of distributions..... 3,179,849 15,701,393 264,709 5,464,054 923,724 1,424,166
------------- ------------- ------------- ------------- ------------- -------------
59,690,960 67,296,123 13,734,382 21,369,045 28,218,779 124,939,480
Amount paid for repurchase of
shares........................... (22,849,791) (80,831,906) (6,310,895) (25,267,819) (22,640,340) (14,550,357)
------------- ------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS..................... 36,841,169 (13,535,783) 7,423,487 (3,898,774) 5,578,439 110,389,123
------------- ------------- ------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS........................... 74,260,195 (30,500,629) 20,190,152 (8,730,308) 17,915,824 107,979,487
NET ASSETS
Beginning of period............... 243,847,993 274,348,622 77,928,687 86,658,995 120,220,288 12,240,801
------------- ------------- ------------- ------------- ------------- -------------
End of period..................... $ 318,108,188 $ 243,847,993 $ 98,118,839 $ 77,928,687 $ 138,136,112 $ 120,220,288
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
Accumulated undistributed
(overdistributed) net investment
income included in net assets at
end of period.................... $ (3,848) $ 36,710 $ (2,284) $ 5,752 $ 396,422 $ 804
------------- ------------- ------------- ------------- ------------- -------------
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Shares sold....................... 1,027,062 964,467 220,796 265,696 676,008 3,102,568
Shares issued from reinvestment of
distributions.................... 56,771 306,095 4,225 96,921 22,296 36,277
------------- ------------- ------------- ------------- ------------- -------------
1,083,833 1,270,562 225,021 362,617 698,304 3,138,845
Shares repurchased................ (419,712) (1,507,311) (105,888) (420,707) (553,465) (371,608)
------------- ------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN CAPITAL
SHARES........................... 664,121 (236,749) 119,133 (58,090) 144,839 2,767,237
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements.
23
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EBI EBI
INTERNATIONAL REAL ESTATE EBI
VALUE FUND FUND INCOME FUND
------------- ------------- -----------------------------
Period Period Six Months Year
Ended Ended Ended Ended
June 30, June 30, June 30, December 31,
1995* 1995* 1995 1994
------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income......................... $ 4,634 $ 4,276 $ 680,747 $ 1,638,133
Net realized gain (loss) on investments....... (19) (1) 60,372 (1,092,593)
Change in unrealized net appreciation
(depreciation) of investments................ 17,724 4,460 2,522,875 (1,271,405)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS................................... 22,339 8,735 3,263,994 (725,865)
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income......................... 0 0 (668,665) (1,627,655)
Net realized gain on investments.............. 0 0 0 0
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS 0 0 (668,665) (1,627,655)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares.................. 1,637,413 701,822 3,809,188 6,797,165
Reinvestment of distributions................. 0 0 540,272 1,262,826
------------- ------------- ------------- -------------
1,637,413 701,822 4,349,460 8,059,991
Amount paid for repurchase of shares.......... (67) (5,882) (4,827,200) (23,111,481)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS................... 1,637,346 695,940 (477,740) (15,051,490)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS....... 1,659,685 704,675 2,117,589 (17,405,010)
NET ASSETS
Beginning of period........................... 0 0 25,467,014 42,872,024
------------- ------------- ------------- -------------
End of period................................. $ 1,659,685 $ 704,675 $ 27,584,603 $ 25,467,014
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Accumulated undistributed (overdistributed)
net investment income included in net assets
at end of period............................. $ 4,634 $ 4,276 $ (44) $ (7,929)
------------- ------------- ------------- -------------
-------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Shares sold................................... 40,619 17,429 79,284 145,083
Shares issued from reinvestment of
distributions................................ 0 0 11,322 27,130
------------- ------------- ------------- -------------
40,619 17,429 90,606 172,213
Shares repurchased............................ (1) (148) (101,014) (492,542)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN CAPITAL SHARES..... 40,618 17,281 (10,408) (320,329)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<FN>
* For the period from May 1, 1995 (commencement of operations) through June 30,
1995.
</TABLE>
See notes to financial statements.
24
<PAGE>
THE EBI FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EBI RELATIVE EBI CASH
RETURN BOND FUND MANAGEMENT FUND
----------------------------- -----------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
June 30, December 31, June 30, December 31,
1995 1994 1995 1994
------------- ------------- ------------- -------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income....................... $ 75,893 $ 110,889 $ 386,881 $ 605,091
Net realized gain (loss) on investments..... 923 (54,981) (66) (192)
Change in unrealized net appreciation
(depreciation) of investments.............. 203,408 (96,893) 0 0
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS................................. 280,224 (40,985) 386,815 604,899
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income....................... (76,084) (110,981) (386,881) (605,091)
Net realized gain on investments............ 0 0 0 0
------------- ------------- ------------- -------------
TOTAL DISTRIBUTIONS......................... (76,084) (110,981) (386,881) (605,091)
------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Proceeds from sale of shares................ 408,627 2,634,968 15,048,115 36,063,570
Reinvestment of distributions............... 73,354 105,960 232,568 393,345
------------- ------------- ------------- -------------
481,981 2,740,928 15,280,683 36,456,915
Amount paid for repurchase of shares........ (891,807) (678,483) (13,643,963) (35,072,549)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS................. (409,826) 2,062,445 1,636,720 1,384,366
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET ASSETS..... (205,686) 1,910,479 1,636,654 1,384,174
NET ASSETS
Beginning of period......................... 3,167,876 1,257,397 15,211,513 13,827,339
------------- ------------- ------------- -------------
End of period............................... $ 2,962,190 $ 3,167,876 $ 16,848,167 $ 15,211,513
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Accumulated undistributed (overdistributed)
net investment income included in net
assets at end of period.................... $ (10) $ 116 $ 0 $ 0
------------- ------------- ------------- -------------
-----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Shares sold................................. 10,521 68,611 15,048,115 36,063,570
Shares issued from reinvestment of
distributions.............................. 1,911 2,795 232,568 393,345
------------- ------------- ------------- -------------
12,432 71,406 15,280,683 36,456,915
Shares repurchased.......................... (23,366) (17,847) (13,643,963) (35,072,549)
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN CAPITAL SHARES... (10,934) 53,559 1,636,720 1,384,366
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
See notes to financial statements.
25
<PAGE>
THE EBI FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES. The EBI Funds, Inc.
(the "Fund") is registered under the Investment Company Act of 1940 (the "Act")
as a diversified, open-end management investment company. The Fund consists of
eight separate investment portfolios, EBI Equity Fund ("EBI Equity"), EBI Flex
Fund ("EBI Flex"), EBI MultiFlex Fund ("EBI MultiFlex"), EBI Income Fund ("EBI
Income"), EBI Relative Return Bond Fund ("EBI Relative Return"), EBI Cash
Management Fund ("EBI Cash"), EBI Real Estate Fund ("EBI Real Estate") and EBI
International Value Fund ("EBI International Value"). EBI Real Estate and EBI
International Value commenced operations on May 1, 1995.
A 25 for 1 split of EBI Equity, EBI Flex and EBI Income capital shares
was effected on January 2, 1992, which resulted in a corresponding reduction in
the net asset value per share. All per share information presented in the
financial statements and financial highlights for EBI Equity, EBI Flex and EBI
Income has been restated to reflect the stock split.
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements.
A. SECURITY VALUATION--Securities held by EBI Cash are valued using the
amortized cost method of valuation, which approximates market value. If
such valuation does not reflect a security's fair value, it is valued at
fair value as determined in good faith by the Fund's board of directors.
For EBI Equity, EBI Flex, EBI MultiFlex, EBI Income, EBI Relative
Return, EBI Real Estate and the EBI International Value securities traded
on national securities exchanges are valued at the last sale price on the
exchange where such securities are primarily traded. Securities traded in
the over-the-counter market and listed securities for which no sale was
reported on the valuation date are valued at bid price (or yield
equivalent thereof) obtained from one or more dealers making a market for
such securities or by a pricing service approved by the Fund's board of
directors. If market quotations or pricing service valuations are not
readily available, securities are valued at fair value as determined in
good faith by the Fund's board of directors. Securities which are
considered short-term investments when purchased are stated at amortized
cost (which approximates market value) if maturity of the investment is
60 days or less, or at market value if maturity is greater than 60 days.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME--Security
transactions are accounted for on trade date and dividend income is
recorded on ex-dividend date. Interest income is recorded on the accrual
basis. Discounts on debt securities purchased are accreted over the life
of the respective security as adjustments to interest income. Costs used
in determining realized gains and losses on the sale of investment
securities are those of specific securities sold.
C. FEDERAL INCOME TAXES--Each investment portfolio intends to comply with
the provisions of the Internal Revenue Code applicable to regulated
investment companies and, accordingly, distributes net investment income
and net realized capital gains, if any, to relieve it from federal income
taxes. At December 31, 1994, EBI MultiFlex had net capital loss
carryforwards aggregating $1,746,736. These carryforwards expire as
follows: $120 in 2001 and $1,746,616 in 2002. At December 31, 1994, EBI
Income had net capital loss carryforwards aggregating $2,007,018. These
carryforwards expire as follows: $112,657 in 1997, $615,300 in 1998,
$186,468 in 1999 and $1,092,593 in 2002. At December 31, 1994, EBI
Relative Return had net capital loss carryforwards aggregating $55,014.
These carryforwards expire as follows: $115 in 2001 and $54,899 in 2002.
To the extent future capital gains are offset by capital loss
carryforwards, such gains will generally not be distributed to
shareholders.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--For EBI Equity, EBI Flex,
EBI MultiFlex, EBI Income, EBI Relative Return, EBI Real Estate and EBI
International Value dividends and distributions are recorded by these
investment portfolios on the ex-dividend date. All of EBI Cash's net
investment income is distributed to shareholders by dividends declared
daily and paid monthly.
NOTE 2 -- INVESTMENT ADVISORY AND OTHER AGREEMENTS. INVESCO Services, Inc.
("ISI"), serves as each portfolio's investment adviser. As compensation for its
services to each investment portfolio, ISI receives an investment advisory fee
which is accrued daily and paid monthly. These fees are based on the annual rate
of 0.75% of the respective average daily net assets of EBI Equity, EBI Flex and
EBI Income, 0.90% of the
26
<PAGE>
respective average net assets of EBI Real Estate, 0.50% of the respective
average daily net assets of EBI Relative Return and EBI Cash and 1.00% of the
average daily net assets of EBI MultiFlex and EBI International Value. ISI has
entered into a sub-advisory agreement with INVESCO Capital Management, Inc.
("ICM"), with respect to EBI Equity, EBI Flex, EBI Income, EBI Cash and EBI
International Value whereby investment decisions for these investment portfolios
are made by ICM. Fees for these sub-advisory services are paid by ISI to ICM at
an annual rate of 0.20% of the average daily net assets of EBI Equity and EBI
Flex and 0.10% of the average daily net assets of EBI Income and EBI Cash and
for the EBI International Value, 0.35% of average net assets on the first $50
million of assets, 0.30% of average net assets on the next $50 million of
assets, and 0.25% of average net assets on assets in excess of $100 million. ISI
has also entered into a sub-advisory agreement with INVESCO Management &
Research, Inc. ("IMR"), with respect to EBI MultiFlex and EBI Relative Return,
whereby investment decisions for these investment portfolios are made by IMR.
Fees for these sub-advisory services are paid by ISI to IMR at annual rates
based on daily average net assets: for EBI MultiFlex Fund, 0.35% on the first
$500 million of assets and 0.25% of assets in excess of $500 million; for EBI
Relative Return, 0.10% of total assets. In addition, ISI has entered into a
sub-advisory agreement with INVESCO Realty Advisors, Inc. ("IRA"), with respect
to EBI Real Estate, whereby investment decisions for this investment portfolio
are made by IRA. Fees for this sub-advisory service are paid by ISI to IRA based
on annual rates equal to 0.35% of average net assets of EBI Real Estate on the
first $100 million of assets and 0.25% of average net assets on assets in excess
of $100 million.
ISI is the principal underwriter for the Fund. All of the EBI portfolios
(except EBI Cash) have entered into distribution plans (the "Plans") with ISI in
accordance with Rule 12b-1 of the Act. Under the Plans, ISI receives annual fees
of 1.00% of average daily net assets for EBI Equity, EBI Flex, EBI MultiFlex,
EBI Income, EBI Real Estate, EBI International, and 0.50% of average daily net
assets for EBI Relative Return. ISI advised the Fund that for the six months
ended June 30, 1995, it received approximately $2,640, $11,294, $1,728, $901 and
$443 in contingent deferred sales charges ("CDSC") from certain shareholder
redemptions of EBI Equity, EBI Flex, EBI Income, EBI Cash Management and EBI
MultiFlex Funds, respectively. Certain officers or directors of the Fund are
officers or directors of ISI.
Each investment portfolio has also entered into an operating services
agreement with ISI. Under the respective operating services agreements, each
investment portfolio pays ISI an annual fee of 0.50% of daily average net assets
for providing or arranging to provide accounting, legal (except litigation),
dividend disbursing, transfer agent, registrar, custodial, shareholder
reporting, sub-accounting, recordkeeping services and functions. These
agreements provide that ISI will pay all fees and expenses associated with these
and other functions, including, but not limited to, registration fees,
shareholder meeting fees, proxy statement and shareholder report expenses. The
combined effect of the advisory agreements, distribution plans and operating
services agreements of each investment portfolio is to place a cap or ceiling on
the total expenses of each investment portfolio, other than brokerage
commissions, interest, taxes, litigation, directors' fees and expenses, and
other extraordinary expenses.
If in any calendar year, the average daily net assets of EBI Equity or
EBI Flex are less than $500 million, expenses shall not exceed 2.25%; on the
next $500 million of average daily net assets, expenses shall not exceed 2.15%;
on the next $1 billion of daily average net assets, expenses shall not exceed
2.10%; and on all average daily net assets over $2 billion, expenses shall not
exceed 2.05%. If in any calendar year, the average daily net assets of EBI
MultiFlex or EBI International Value are less than $100 million, expenses shall
not exceed 2.50%; on the next $400 million of average daily net assets, expenses
shall not exceed 2.40%; on the next $500 million of average daily net assets,
expenses shall not exceed 2.35%; on the next $1 billion of average daily net
assets, expenses shall not exceed 2.30%; and on all daily average net assets
over $2 billion, expenses shall not exceed 2.25%. If in any calendar year, the
average daily net assets of EBI Income are less than $250 million, expenses
shall not exceed 2.25%; on the next $250 million of average daily net assets,
expenses shall not exceed 2.15%; on the next $250 million of average daily net
assets, expenses shall not exceed 2.10%; and on all daily average net assets
over $750 million, expenses shall not exceed 2.05%. In any calendar year, the
expenses of EBI Relative Return may not exceed 1.50% of average daily net
assets, and the expenses of EBI Cash may not exceed 1.00% of average daily net
assets. If in any calendar year, the average net assets of the EBI Real Estate
are less than $100 million, expenses shall not exceed 2.40%; on the next $400
million of net assets, expenses shall not exceed 2.35%; on the next $500 million
of net assets, expenses shall not exceed 2.30%; and on all assets over $1
billion, expenses shall not exceed 2.25%.
At June 30, 1995, 36.98% of the outstanding capital shares of EBI Cash
were owned by affiliated parties.
27
<PAGE>
NOTE 3 -- PURCHASES AND SALES OF INVESTMENT SECURITIES. For the six months
ended June 30, 1995, the aggregate cost of purchases and proceeds from sales of
U.S. Government Securities were:
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
EBI Flex....................................................................... $ 0 $8,459,922
EBI MultiFlex.................................................................. 8,571,593 9,263,297
EBI Income..................................................................... 1,054,688 1,740,977
EBI Relative Return............................................................ 731,680 737,195
</TABLE>
The aggregate cost of purchases and proceeds from sales of all other
securities (excluding all short-term securities) were:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ----------
<S> <C> <C>
EBI Flex...................................................................... $ 33,038,715 $ 0
EBI Equity.................................................................... 13,536,752 6,686,241
EBI MultiFlex................................................................. 38,616,693 24,335,811
EBI International Value....................................................... 1,351,426 0
EBI Real Estate............................................................... 663,351 0
EBI Income.................................................................... 500,910 0
EBI Relative Return........................................................... 0 408,262
</TABLE>
NOTE 4--UNREALIZED APPRECIATION AND DEPRECIATION. At June 30, 1995, the gross
unrealized appreciation and depreciation of securities for federal income tax
purposes was as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------
<S> <C> <C> <C>
EBI Flex....................................................... $56,319,448 ($3,705,185) $52,614,263
EBI Equity..................................................... 20,173,147 (1,826,736) 18,346,411
EBI Multiflex.................................................. 13,902,441 (2,522,610) 11,379,831
EBI International Value........................................ 131,578 (113,854) 17,724
EBI Real Estate................................................ 9,792 (5,332) 4,460
EBI Income..................................................... 1,706,488 (246,189) 1,460,299
EBI Relative Return............................................ 117,747 (16,934) 100,813
</TABLE>
NOTE 5--CAPITAL SHARES. The authorized capital stock of the Fund consists of
10,070,000,000 shares of common stock having a par value of $0.001 per share. Of
such shares, 10 million have been allocated to each of the EBI Equity, EBI Flex,
EBI MultiFlex, EBI Income, EBI Relative Return, EBI Real Estate and EBI
International Value investment portfolios and 10 billion have been allocated to
EBI Cash.
28
<PAGE>
EBI FLEX FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
1994 1993 1992 1991 1990
SIX MONTHS --------- --------- --------- --------- ---------
ENDED
JUNE 30,
1995
-----------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 50.50 $ 54.16 $ 51.04 $ 49.35 $ 42.26 $ 45.32
----------- --------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income.................... 0.71 1.26 1.10 1.39 1.47 1.64
Net gain (loss) on securities (both
realized and unrealized)................ 7.42 (0.91) 4.22 2.37 8.90 (2.42)
----------- --------- --------- --------- --------- ---------
TOTAL FROM INVESTMENT OPERATIONS......... 8.13 0.35 5.32 3.76 10.37 (0.78)
----------- --------- --------- --------- --------- ---------
DISTRIBUTIONS
Dividends (from net investment income)... (0.72) (1.25) (1.09) (1.35) (1.49) (1.75)
Distributions (from capital gains)....... 0.00 (2.76) (1.11) (0.72) (1.79) (0.53)
----------- --------- --------- --------- --------- ---------
TOTAL DISTRIBUTIONS...................... (0.72) (4.01) (2.20) (2.07) (3.28) (2.28)
----------- --------- --------- --------- --------- ---------
Net asset value, end of period........... $ 57.91 $ 50.50 $ 54.16 $ 51.04 $ 49.35 $ 42.26
----------- --------- --------- --------- --------- ---------
----------- --------- --------- --------- --------- ---------
TOTAL RETURN(1).......................... 16.15% 0.64% 10.48% 7.72% 24.80% (1.68%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)..... $ 318,108 $ 243,848 $ 274,349 $ 165,727 $ 104,204 $ 96,772
Ratio of expenses to average net
assets*................................. 1.12% 2.25% 2.25% 2.17% 2.21% 2.25%
Ratio of net investment income to average
net assets*............................. 1.35% 2.32% 2.10% 2.81% 3.12% 3.77%
Portfolio turnover rate.................. 3% 36% 27% 15% 24% 31%
<FN>
(1) A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of the
Fund aggregating $18,993 for 1993. If such expenses had not been absorbed, the
ratio of expenses to average net assets would have been 2.26%, and the ratio
of net investment income to average net assets would have been 2.09%.
</TABLE>
See notes to financial statements.
29
<PAGE>
EBI EQUITY FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
1994 1993 1992 1991 1990
SIX MONTHS -------- -------- -------- -------- --------
ENDED
JUNE 30,
1995
-----------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $ 55.83 $ 59.61 $ 63.27 $ 63.38 $ 54.70 $ 62.01
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income.......................... 0.24 0.36 0.41 0.60 0.66 1.04
Net gain (loss) on securities (both realized
and unrealized)............................... 8.94 1.26 5.40 2.44 17.63 (3.40)
----------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS............... 9.18 1.62 5.81 3.04 18.29 (2.36)
----------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Dividends (from net investment income)......... (0.24) (0.36) (0.41) (0.57) (0.69) (1.21)
Distributions (from capital gains)............. 0.00 (5.04) (9.06) (2.58) (8.92) (3.74)
----------- -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS............................ (0.24) (5.40) (9.47) (3.15) (9.61) (4.95)
----------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 64.77 $ 55.83 $ 59.61 $ 63.27 $ 63.38 $ 54.70
----------- -------- -------- -------- -------- --------
----------- -------- -------- -------- -------- --------
TOTAL RETURN(1)................................ 16.46% 2.69% 9.16% 4.84% 33.59% (3.75%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)........... $ 98,119 $ 77,929 $ 86,659 $ 91,146 $ 81,732 $ 69,279
Ratio of expenses to average net assets*....... 1.12% 2.25% 2.25% 2.18% 2.22% 2.25%
Ratio of net investment income to average net
assets*....................................... 0.40% 0.61% 0.62% 0.90% 1.04% 1.71%
Portfolio turnover rate........................ 8% 21% 47% 41% 47% 12%
<FN>
(1) A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of the
Fund aggregating $3,227 and $23,818 for 1993 and 1990, respectively. If such
expenses had not been absorbed, the ratio of expenses to average net assets
for 1993 and 1990 would have been 2.25% and 2.28%, respectively and the ratio
of net investment income to average net assets for 1993 and 1990 would have
been 0.62% and 1.68%, respectively.
</TABLE>
See notes to financial statements.
30
<PAGE>
EBI MULTIFLEX FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
SIX MONTHS FOR THE PERIOD
ENDED YEAR ENDED NOV. 17,
JUNE 30, DECEMBER 31, 1993(1) TO
1995 1994 DEC. 31, 1993
----------- ------------ --------------
(unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period.................. $ 39.13 $ 40.16 $ 40.00
----------- ------------ -------
INVESTMENT OPERATIONS
Net investment income................................. 0.45 0.62 0.02
Net gain (loss) on securities (both realized and
unrealized).......................................... 3.69 (1.03) 0.16
----------- ------------ -------
TOTAL FROM INVESTMENT OPERATIONS...................... 4.14 (0.41) 0.18
----------- ------------ -------
DISTRIBUTIONS
Dividends (from net investment income)................ (0.33) (0.62) (0.02)
----------- ------------ -------
Total distributions................................... (0.33) (0.62) (0.02)
----------- ------------ -------
Net asset value, end of period........................ $ 42.94 $ 39.13 $ 40.16
----------- ------------ -------
----------- ------------ -------
TOTAL RETURN.......................................... 10.60% (1.02%) 0.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's).................. $ 138,136 $ 120,220 $ 12,241
Ratio of expenses to average net assets............... 1.23% 2.49% 2.50%*
Ratio of net investment income to average net
assets............................................... 1.10% 2.01% 1.09%*
Portfolio turnover rate............................... 28% 81% 0.53%
<FN>
(1) Commencement of operations
* Annualized
</TABLE>
See notes to financial statements.
31
<PAGE>
EBI INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout the period presented.
<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1, 1995(1) TO
JUNE 30, 1995
-----------------
(unaudited)
<S> <C>
Net asset value, beginning of period............................................................... $ 40.00
------
INVESTMENT OPERATIONS
Net investment income.............................................................................. 0.11
Net gain on securities (both realized and unrealized).............................................. 0.75
------
Total from investment operations................................................................... 0.86
------
DISTRIBUTIONS
Dividends (from net investment income)............................................................. 0.00
------
TOTAL DISTRIBUTIONS................................................................................ 0.00
------
Net asset value, end of period..................................................................... $ 40.86
------
------
TOTAL RETURN....................................................................................... 2.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)............................................................... $ 1,660
Ratio of expenses to average net assets............................................................ 0.41%
Ratio of net investment income to average net assets............................................... 0.48%
Portfolio turnover rate............................................................................ 0%
<FN>
(1) Commencement of operations
</TABLE>
See notes to financial statements.
32
<PAGE>
EBI REAL ESTATE FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout the period presented.
<TABLE>
<CAPTION>
FOR THE PERIOD
MAY 1, 1995(1)
TO
JUNE 30, 1995
----------------
(unaudited)
<S> <C>
Net asset value, beginning of period............................................................... $ 40.00
----------------
INVESTMENT OPERATIONS
Net investment income.............................................................................. 0.25
Net gain on securities (both realized and unrealized).............................................. 0.53
----------------
TOTAL FROM INVESTMENT OPERATIONS................................................................... 0.78
----------------
DISTRIBUTIONS
Dividends (from net investment income)............................................................. 0.00
----------------
TOTAL DISTRIBUTIONS................................................................................ 0.00
----------------
Net asset value, end of period..................................................................... $ 40.78
----------------
----------------
TOTAL RETURN....................................................................................... 1.95%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)............................................................... $ 705
Ratio of expenses to average net assets............................................................ 0.39%
Ratio of net investment income to average net assets............................................... 1.41%
Portfolio turnover rate............................................................................ 0%
<FN>
(1) Commencement of operations
</TABLE>
See notes to financial statements.
33
<PAGE>
EBI INCOME FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
1994 1993 1992 1991 1990
SIX MONTHS -------- -------- -------- -------- --------
ENDED JUNE
30, 1995
-----------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $ 45.33 $ 48.60 $ 47.41 $ 47.77 $ 45.42 $ 45.48
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income.......................... 1.23 2.40 2.28 2.57 3.03 3.43
Net gain (loss) on securities (both realized
and unrealized)............................... 4.69 (3.27) 1.20 (0.37) 2.43 (0.03)
----------- -------- -------- -------- -------- --------
Total from investment operations............... 5.92 (0.87) 3.48 2.20 5.46 3.40
----------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Dividends (from net investment income)......... (1.22) (2.40) (2.29) (2.56) (3.11) (3.46)
----------- -------- -------- -------- -------- --------
Total distributions............................ (1.22) (2.40) (2.29) (2.56) (3.11) (3.46)
----------- -------- -------- -------- -------- --------
Net asset value, end of period................. $ 50.03 $ 45.33 $ 48.60 $ 47.41 $ 47.77 $ 45.42
----------- -------- -------- -------- -------- --------
----------- -------- -------- -------- -------- --------
TOTAL RETURN(1)................................ 13.21% (1.80)% 7.39% 4.74% 12.46% 7.81%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)........... $ 27,585 $ 25,467 $ 42,872 $ 47,096 $ 39,104 $ 41,004
Ratio of expenses to average net assets*....... 1.12% 2.25% 2.25% 2.25% 2.29% 2.30%
Ratio of net investment income to average net
assets*....................................... 2.58% 5.09% 4.56% 5.48% 6.48% 7.08%
Portfolio turnover rate........................ 6% 59% 92% 16% 37% 25%
<FN>
(1) A contingent deferred sales charge may be imposed on redemptions of shares
purchased prior to January 1, 1992 which would reduce the total returns
shown above.
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of the
Fund aggregating $17,632 and $11,540 for 1993 and 1990, respectively. If such
expenses had not been absorbed, the ratio of expenses to average net assets
would have been 2.29% and 2.32%, respectively and the ratio of net investment
income to average net assets would have been 4.52% and 5.41%, respectively.
</TABLE>
See notes to financial statements.
34
<PAGE>
EBI RELATIVE RETURN BOND FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
FOR THE
PERIOD
NOV. 15,
SIX MONTHS 1993(1)
ENDED YEAR ENDED TO
JUNE 30, DECEMBER 31, DEC. 31,
1995 1994 1993
----------- -------------- --------
(unaudited)
<S> <C> <C> <C>
Net asset value, beginning of period................. $ 37.20 $ 39.80 $ 40.00
----------- ------- --------
INVESTMENT OPERATIONS
Net investment income................................ 1.00 1.81 0.21
Net gain (loss) on securities (both realized and
unrealized)......................................... 2.71 (2.60) (0.21)
----------- ------- --------
TOTAL FROM INVESTMENT OPERATIONS..................... 3.71 (0.79) 0.00
----------- ------- --------
DISTRIBUTIONS
Dividends (from net investment income)............... (1.00) (1.81) (0.20)
----------- ------- --------
TOTAL DISTRIBUTIONS.................................. (1.00) (1.81) (0.20)
----------- ------- --------
Net asset value, end of period....................... $ 39.91 $ 37.20 $ 39.80
----------- ------- --------
----------- ------- --------
TOTAL RETURN......................................... 10.11% (1.99%) 0.01%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)................. $ 2,962 $ 3,168 $ 1,257
Ratio of expenses to average net assets.............. 0.74% 1.50% 1.50%*
Ratio of net investment income to average net
assets.............................................. 2.57% 4.89% 4.61%*
Portfolio turnover rate.............................. 24% 47% 5%
<FN>
(1) Commencement of operations
* Annualized
</TABLE>
See notes to financial statements.
35
<PAGE>
EBI CASH MANAGEMENT FUND
FINANCIAL HIGHLIGHTS
The table below sets forth financial data for a capital share outstanding
throughout each period presented.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------
1994 1993 1992 1991 1990
SIX MONTHS -------- -------- -------- -------- --------
ENDED
JUNE 30,
1995
-----------
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income..................... 0.03 0.03 0.02 0.03 0.05 0.07
----------- -------- -------- -------- -------- --------
DISTRIBUTIONS
Dividends (from net investment income).... (0.03) (0.03) (0.02) (0.03) (0.05) (0.07)
----------- -------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- -------- -------- -------- -------- --------
----------- -------- -------- -------- -------- --------
TOTAL RETURN.............................. 2.49% 3.30% 2.20% 3.00% 5.08% 7.35%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's)...... $ 16,848 $ 15,212 $ 13,827 $ 20,431 $ 17,730 $ 20,701
Ratio of expenses to average net
assets*.................................. 0.50% 1.00% 0.95% 0.73% 1.00% 1.09%
Ratio of net investment income to average
net assets*.............................. 2.49% 3.23% 2.17% 2.94% 5.04% 7.11%
<FN>
* INVESCO Capital Management, Inc. voluntarily absorbed certain expenses of the
Fund aggregating $15,099, $38,925, and $5,536 for 1993, 1992, and 1990,
respectively. If such expenses had not been absorbed the ratio of expenses to
average net assets would have been 1.03%, 0.92%, and 1.12%, for the above
periods, respectively and the ratio of net investment to average net assets
would have 2.09%, 2.75%, 4.92%, respectively.
</TABLE>
See notes to financial statements.
36
<PAGE>
INVESCO SERVICES, INC.
Investment Advisor
Manager
Distributor
INVESCO CAPITAL MANAGEMENT, INC.
SUB-ADVISOR:
EBI Equity Fund
EBI Income Fund
EBI Flex Fund
EBI International Value Fund
EBI Cash Management Fund
INVESCO MANAGEMENT & RESEARCH, INC.
SUB-ADVISOR:
EBI Multiflex Fund
EBI Relatie Return Bond Fund
INVESCO REALTY ADVISORS, INC.
SUB-ADVISOR:
EBI Real Estate Fund
FUND/PLAN SERVICES, INC.
Transfer Agent and Administrator
UNITED MISSOURI BANK OF KANSAS CITY, N.A.
Custodian
PRICE WATERHOUSE
Independent Accountants
EBI PORTFOLIO MANAGEMENT PROGRAM
Invesco Services, Inc.
1355 Peachtree Street, N.E.
Atlanta, Georgia 30309
(404) 892-0666
(800) 972-9030
