<PAGE> 1
================================================================================
=============================
HOTCHKIS AND
WILEY FUNDS
=============================
Equity Fund For Insurance Companies
SEMI-ANNUAL REPORT
---------------------------------------------------------
December 31, 1997
800 West 6th Street, Fifth Floor
Los Angeles, CA 90017
(213) 362-8888
Investment Advisor: HOTCHKIS AND WILEY
================================================================================
<PAGE> 2
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
------------------------------------------------------------------------
DEAR SHAREHOLDER:
The Equity Fund for Insurance Company's total return for the six months ended
December 31, 1997 was 13.7% compared to the S&P 500 Index return of 10.7%. There
was a dramatic rotation in market leadership away from the narrow set of stocks
that had been driving performance over the past 2 1/2 years. Announcements by
such companies as Coca-Cola, Microsoft and Gillette tempered Wall Street's
enthusiasm for earnings growth expectations, prompting this rotation. In
addition, concerns over the mounting Asian debt crisis caused investors to
become increasingly defensive. The portfolio was well positioned to benefit from
this breakdown of the market's mega-cap momentum run. Many of the areas of the
market where we have identified valuation opportunities rebounded strongly as
the market focused on the underlying intrinsic value of companies. Our returns
came primarily from the finance, utilities, and consumer durables sectors of the
market. Basic material companies were a slight negative during the six months,
as they initially rose on strong profit announcements and then sold off on
worries of overseas revenue exposure.
Utilities was the best performing sector of the equity market and the Fund
during this period. Some of this gain was driven by a strong rally in the U.S.
Treasury market as the 30 year bond closed the year with a yield of only 5.92%
- -- a full 1.24% below the yearly high in April. In addition to the interest rate
move, utility stocks were supported by favorable resolution on deregulatory and
stranded cost issues, moves toward consolidation, and investors' desire for
stocks that are both isolated from the international turmoil and offer strong
valuation characteristics.
The Fund remains most heavily weighted in the financial, utility and basic
industry sectors of the market. We continue to find attractive opportunities
within the electric utility group, and expect the recent outperformance of these
stocks should continue. Similarly, the basic industry group appears cheap,
particularly following the group's recent decline, as it bears the brunt of the
Asian turmoil.
We believe the Fund is well situated to take advantage of an unsettled, richly
valued market. We are paying less for earnings (13.9x vs. 20.7x) and receiving
more in dividends (2.9% vs. 1.7%) than the average of companies in the S&P 500
Index. These key portfolio characteristics help control risk in a volatile
market and provide a platform for outperformance as investors refocus on
fundamental value. We continue to manage the portfolio by strict adherence to
our investment disciplines, which emphasize these lower risk characteristics.
Gail Bardin
Managing Director, Hotchkis and Wiley
Portfolio Manager
<PAGE> 3
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
COMMON STOCKS--98.6% SHARES VALUE
- -------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE--2.6%
Northrop Grumman Corporation........................... 5,600 $ 644,000
Raytheon Company - Class A............................. 720 35,505
Rockwell International Corporation..................... 6,000 313,500
-----------
993,005
-----------
APPAREL & TEXTILES--0.9%
Russell Corporation.................................... 12,200 324,063
-----------
AUTO-RELATED--1.5%
Dana Corporation....................................... 11,000 522,500
Meritor Automotive, Inc................................ 2,000 42,125
-----------
564,625
-----------
AUTOS & TRUCKS--5.0%
Ford Motor Company..................................... 24,500 1,192,844
General Motors Corporation............................. 11,300 685,062
-----------
1,877,906
-----------
BANKS--7.5%
First Chicago NBD Corporation.......................... 10,000 835,000
First Union Corporation................................ 13,970 715,962
Fleet Financial Group, Inc............................. 5,800 434,638
KeyCorp................................................ 6,100 431,956
NationsBank Corporation................................ 6,400 389,200
-----------
2,806,756
-----------
BEVERAGES--0.8%
Anheuser-Busch Companies, Inc.......................... 7,000 308,000
-----------
BUILDING & FOREST PRODUCTS--2.4%
Georgia-Pacific Corporation............................ 3,700 224,775
Georgia-Pacific Corporation (Timber Group)(+).......... 3,700 83,944
Weyerhaeuser Company................................... 11,700 574,031
-----------
882,750
-----------
BUILDING MATERIALS--0.2%
Hanson PLC ADR......................................... 3,875 89,367
-----------
</TABLE>
See Notes to Financial Statements.
1
<PAGE> 4
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
CHEMICALS--3.9%
The Dow Chemical Company............................... 5,600 $ 568,400
duPont (E.I.) de Nemours & Company..................... 6,000 360,375
Eastman Chemical Company............................... 8,100 482,456
Millennium Chemicals, Inc.............................. 2,214 52,167
-----------
1,463,398
-----------
CONGLOMERATES--0.9%
Tenneco, Inc........................................... 8,800 347,600
-----------
CONSUMER PRODUCTS--1.0%
Tupperware Corporation................................. 13,600 379,100
-----------
DRUGS--1.0%
American Home Products Corporation..................... 4,800 367,200
-----------
ENGINEERING & CONSTRUCTION--0.9%
Harsco Corporation..................................... 7,400 319,125
-----------
FINANCIAL SERVICES--5.5%
Beneficial Corporation................................. 7,300 606,812
Household International, Inc........................... 6,100 778,131
Transamerica Corporation............................... 3,300 351,450
Washington Mutual, Inc................................. 5,130 327,358
-----------
2,063,751
-----------
HOUSEHOLD FURNISHINGS & APPLIANCES--2.1%
Whirlpool Corporation.................................. 14,000 770,000
-----------
INSURANCE--5.6%
American General Corporation........................... 6,087 329,078
Aon Corporation........................................ 6,900 404,512
Lincoln National Corporation........................... 5,200 406,250
Safeco Corporation..................................... 9,700 472,875
St. Paul Companies, Inc................................ 4,700 385,694
TIG Holdings, Inc...................................... 2,600 86,288
-----------
2,084,697
-----------
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 5
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
LEISURE/TOYS--1.1%
Fortune Brands, Inc.................................... 11,000 $ 407,688
-----------
MACHINERY--3.0%
Deere & Company........................................ 8,600 501,487
New Holland N.V........................................ 23,000 608,063
-----------
1,109,550
-----------
MEDICAL PRODUCTS & SUPPLIES--1.0%
Baxter International, Inc.............................. 7,200 363,150
-----------
METALS & MINING--2.6%
Aluminum Company of America............................ 8,300 584,112
Reynolds Metals Company................................ 6,600 396,000
-----------
980,112
-----------
NATURAL GAS--1.6%
Eastern Enterprises.................................... 13,600 612,000
-----------
OIL--DOMESTIC--7.7%
Atlantic Richfield Company............................. 4,400 352,550
Occidental Petroleum Corporation....................... 33,700 987,831
Phillips Petroleum Company............................. 14,900 724,513
USX-Marathon Group, Inc................................ 13,900 469,125
Ultramar Diamond Shamrock Corporation.................. 11,000 350,625
-----------
2,884,644
-----------
OIL--INTERNATIONAL--1.1%
British Petroleum PLC ADR.............................. 4,250 338,672
Chevron Corporation.................................... 1,000 77,000
-----------
415,672
-----------
PAPER--1.9%
International Paper Company............................ 11,600 500,250
Union Camp Corporation................................. 4,200 225,488
-----------
725,738
-----------
PHOTOGRAPHY & OPTICAL--1.0%
Eastman Kodak Company.................................. 6,000 364,875
-----------
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 6
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
POLLUTION CONTROL--2.2%
Browning-Ferris Industries, Inc........................ 8,572 $ 317,164
Waste Management, Inc.................................. 19,000 522,500
-----------
839,664
-----------
RAILROADS--1.0%
Norfolk Southern Corporation........................... 12,000 369,750
-----------
RETAIL--5.0%
Intimate Brands, Inc................................... 9,700 233,406
J.C. Penney Company, Inc............................... 9,300 560,906
May Department Stores Company.......................... 11,800 621,713
Sears, Roebuck & Company............................... 10,300 466,075
-----------
1,882,100
-----------
SAVINGS & LOANS--4.3%
Fannie Mae............................................. 8,000 456,500
H.F. Ahmanson & Company................................ 17,500 1,171,406
-----------
1,627,906
-----------
STEEL--1.4%
USX-U.S. Steel Group, Inc.............................. 17,000 531,250
-----------
TELECOMMUNICATIONS--0.9%
Harris Corporation..................................... 7,000 321,125
-----------
TOBACCO--3.2%
Gallaher Group PLC ADR................................. 8,400 179,550
Philip Morris Companies, Inc........................... 22,600 1,024,063
-----------
1,203,613
-----------
TRUCKING--0.7%
Ryder System, Inc...................................... 8,000 262,000
-----------
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 7
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS, CONTINUED
December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
UTILITY--ELECTRIC--8.1%
CMS Energy Corporation................................. 12,000 $ 528,750
Central & South West Corporation....................... 7,000 189,437
DTE Energy Company..................................... 4,000 138,750
Edison International................................... 6,000 163,125
Energy Group PLC ADR................................... 3,875 172,922
Illinova Corporation................................... 23,000 619,563
New York State Electric & Gas Corporation.............. 5,000 177,500
PECO Energy Company.................................... 11,300 274,025
PacifiCorp............................................. 7,600 207,575
Public Service Enterprises Group, Inc.................. 11,000 348,563
SCANA Corporation...................................... 7,200 215,550
-----------
3,035,760
-----------
UTILITY--TELEPHONE--9.0%
AT&T Corporation....................................... 22,200 1,359,750
Alltel Corporation..................................... 13,600 558,450
Bell Atlantic Corporation.............................. 5,990 545,090
SBC Communications, Inc................................ 8,045 589,296
US West Communications Group........................... 7,000 315,875
-----------
3,368,461
-----------
Total common stocks (cost $24,599,527)................. 36,946,408
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
VARIABLE RATE DEMAND NOTES#--1.3% AMOUNT
- --------------------------------------------------------------------------------------
<S> <C> <C>
Pitney Bowes, Inc., 5.3276%............................ $475,371 475,371
-----------
Total variable rate demand notes (cost $475,371)....... 475,371
-----------
Total investments--99.9% (cost $25,074,898)................. 37,421,772
Other assets in excess of liabilities--0.1%................. 30,548
-----------
TOTAL NET ASSETS--100.0%............................... $37,452,320
===========
</TABLE>
- ---------------
<TABLE>
<C> <S>
# Variable rate demand notes are considered short-term
obligations and are payable on demand. Interest rates change
periodically on specified dates. The rates listed are as of
December 31, 1997.
(+) Non-income producing security.
ADR -- American Depository Receipts.
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 8
HOTCHKIS
AND WILEY FUNDS Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
December 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $25,074,898)............... $37,421,772
Dividends and interest receivable...................... 89,906
Prepaid expenses....................................... 691
-----------
Total assets...................................... 37,512,369
-----------
LIABILITIES:
Payable to Advisor..................................... 17,753
Payable for investments purchased...................... 29,842
Accrued expenses and other liabilities................. 12,454
-----------
Total liabilities................................. 60,049
-----------
Net assets........................................ $37,452,320
===========
NET ASSETS CONSIST OF:
Paid in capital........................................ $24,884,485
Undistributed net investment loss...................... (1,724)
Undistributed net realized gains on investments........ 222,685
Net unrealized appreciation on investments............. 12,346,874
-----------
Net assets........................................ $37,452,320
===========
CALCULATION OF NET ASSET VALUE PER SHARE:
Shares outstanding (unlimited shares of no par value
authorized)........................................... 2,173,090
Net asset value per share (offering and redemption
price)................................................ $ 17.23
===========
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 9
HOTCHKIS
AND WILEY FUNDS Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (UNAUDITED)
Six months ended December 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME
Income *
Dividends.............................................. $ 494,218
Interest............................................... 12,283
----------
Total income...................................... 506,501
----------
Expenses
Advisory fee........................................... 92,858
Legal and auditing fees................................ 5,880
Custodian fees and expenses............................ 3,140
Accounting fee......................................... 7,610
Administration fee..................................... 2,105
Trustees' fees and expenses............................ 1,420
Reports to shareholders................................ 5,655
Other expenses......................................... 1,350
----------
Total expenses.................................... 120,018
Less, expense reimbursement............................ (27,160)
----------
Net expenses...................................... 92,858
----------
Net investment income..................................... 413,643
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on securities transactions........... 697,092
Net change in unrealized appreciation of securities.... 3,397,733
----------
Net gain on investments........................... 4,094,825
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $4,508,468
==========
- ---------------
* Net of Foreign Taxes withheld............................. $ 2,676
==========
</TABLE>
See Notes to Financial Statements.
7
<PAGE> 10
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
DECEMBER 31, 1997 JUNE 30, 1997
----------------- -------------
(UNAUDITED)
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 413,643 $ 761,065
Net realized gain on securities transactions........... 697,092 2,210,721
Net change in unrealized appreciation of securities.... 3,397,733 4,166,465
----------- -----------
Net increase in net assets resulting from
operations...................................... 4,508,468 7,138,251
----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income.................................. (420,959) (766,577)
Net realized gain on securities transactions........... (2,201,788) (922,992)
----------- -----------
Total dividends and distributions................. (2,622,747) (1,689,569)
----------- -----------
FUND SHARE TRANSACTIONS:
Net proceeds from shares sold.......................... 0 1,201,572
Shares issued in connection with payment of dividends
and distributions.................................... 2,622,747 1,689,569
Cost of shares redeemed................................ (15,000) (30,000)
----------- -----------
Net increase in net assets from Fund share
transactions.................................... 2,607,747 2,861,141
----------- -----------
Total Increase in Net Assets................................ 4,493,468 8,309,823
NET ASSETS:
Beginning of period.................................... 32,958,852 24,649,029
----------- -----------
End of period*......................................... $37,452,320 $32,958,852
=========== ===========
*Including undistributed net investment income (loss) of:... $ (1,724) $ 5,592
=========== ===========
CHANGES IN SHARES OUTSTANDING:
Shares sold............................................ 0 81,632
Shares issued in connection with payment of
dividends............................................ 154,575 116,057
Shares redeemed........................................ (869) (2,141)
----------- -----------
Net increase...................................... 153,706 195,548
=========== ===========
</TABLE>
See Notes to Financial Statements.
8
<PAGE> 11
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
December 31, 1997
NOTE 1. ACCOUNTING POLICIES. The Equity Fund for Insurance Companies (the
"Fund") is a series of Hotchkis and Wiley Funds (the "Trust"), an
open-end, management investment company organized as a Massachusetts
business trust on August 22, 1984 and registered under the Investment
Company Act of 1940. The Fund commenced operations on January 29,
1993. The sole shareholder of the Fund is The Prudential Insurance
Company of America. The Fund seeks to provide current income and
long-term growth of income, accompanied by growth of capital. In
addition to the Fund, the Trust also offers the Balanced Fund, the
Small Cap Fund, the Equity Income Fund, the International Fund, the
Low Duration Fund, the Short-Term Investment Fund, the Total Return
Bond Fund, the Mid-Cap Fund, and the Global Equity Fund
(collectively, the "Funds"). The assets of each series are invested
in separate, independently managed portfolios. The following is a
summary of significant accounting policies followed by the Fund in
the preparation of the financial statements.
SECURITY VALUATION: Portfolio securities that are listed on a
securities exchange (whether domestic or foreign) or the NASDAQ
National Market System ("System") are valued at the last sale price
as of 4:00 p.m., Eastern time, or, in the absence of recorded sales,
at the average of readily available closing bid and asked prices on
such exchange or such System. Unlisted securities that are not
included in such System are valued at the average of the quoted bid
and asked price in the over-the-counter market. Securities for which
market quotations are not otherwise available are valued at fair
value as determined in good faith by Hotchkis and Wiley (the
"Advisor") under procedures established by the Board of Trustees.
Short-term investments which mature in less than 60 days are valued
at amortized cost (unless the Board of Trustees determines that this
method does not represent fair value), if their original maturity was
60 days or less, or by amortizing the values as of the 61st day prior
to maturity, if their original term to maturity exceeded 60 days.
Investments quoted in foreign currency are valued daily in U.S.
dollars on the basis of the foreign currency exchange rate prevailing
at the time of valuation.
REPURCHASE AGREEMENTS: The Fund may enter into repurchase
agreements with banks or broker-dealers that meet credit guidelines
established by the Board of Trustees. In connection with transactions
in repurchase agreements, it is the Fund's policy that the custodian
take possession of the underlying collateral securities, the value of
which exceeds the principal amount of the repurchase transaction,
including accrued interest. If the seller defaults, and the value of
the collateral declines, realization of the collateral by the Fund
may be delayed or limited.
FEDERAL INCOME TAXES: It is the Fund's policy to meet the
requirements of the Internal Revenue Code applicable to regulated
investment companies and intends to
9
<PAGE> 12
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
December 31, 1997
distribute net investment company taxable income and net capital
gains to its shareholders. Therefore, no federal income tax provision
is required.
EXPENSE ALLOCATION: Common expenses incurred by the Trust are
allocated among the Funds based upon (i) relative average net assets,
(ii) as incurred on a specific identification basis, or (iii) evenly
among the Funds, depending on the nature of the expenditure.
USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
OTHER: Security and shareholder transactions are recorded on
trade date. Realized gains and losses on sales of investments are
calculated on the identified cost basis. Dividend income and
dividends and distributions to shareholders are recorded on the ex-
dividend date. Interest income is recognized on the accrual basis.
Generally accepted accounting principles require that permanent
financial reporting and tax differences relating to shareholder
distributions be reclassified to paid in capital.
NOTE 2. INVESTMENT ADVISORY AGREEMENT. The Fund has an investment advisory
agreement with the Advisor. The Advisor receives a fee, computed
daily and payable monthly, at an annual rate of 0.60% of the first
$10 million of the Fund's average daily net assets, and 0.50% of the
average daily net assets in excess of $10 million.
The Advisor provides continuous supervision of the investment
portfolio and pays all of the operating expenses relating to the Fund
other than the advisory fee. For the six months ended December 31,
1997, the Advisor paid $27,160 of operating expenses on behalf of the
Fund.
NOTE 3. PURCHASES AND SALES OF SECURITIES. Purchases and sales of investment
securities, other than short-term investments, for the six months
ended December 31, 1997 were $2,726,174 and $1,836,765, respectively.
There were no purchases or sales of long-term U.S. Government
securities.
At December 31, 1997 (for financial reporting and federal income
tax purposes), net unrealized appreciation aggregated $12,346,874, of
which $12,568,170 related to appreciated securities and $221,296
related to depreciated securities. At December 31, 1997, the cost of
investments for book and federal income tax purposes was $25,074,898.
10
<PAGE> 13
HOTCHKIS
AND WILEY Equity Fund for Insurance Companies
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS JANUARY 29, 1993+
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
DECEMBER 31, 1997 JUNE 30, 1997 JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1994 JUNE 30, 1993
----------------- ------------- ------------- ------------- ------------- ------------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period............... $16.32 $13.51 $11.53 $ 9.89 $10.31 $10.00
------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment
income.............. 0.20 0.39 0.34 0.41 0.40 0.16
Net realized and
unrealized gain
(loss) on
investments......... 2.00 3.30 2.26 1.59 (0.24) 0.30
------ ------ ------ ------ ------ ------
Total from investment
operations.......... 2.20 3.69 2.60 2.00 0.16 0.46
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends (from net
investment
income)............. (0.21) (0.40) (0.40) (0.34) (0.38) (0.15)
Distributions (from
realized gains)..... (1.08) (0.48) (0.22) (0.02) (0.20) (0.00)
------ ------ ------ ------ ------ ------
Total distributions... (1.29) (0.88) (0.62) (0.36) (0.58) (0.15)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period.................. $17.23 $16.32 $13.51 $11.53 $ 9.89 $10.31
====== ====== ====== ====== ====== ======
Total Return.............. 13.66%## 28.20% 22.93% 20.62% 1.38% 11.45%#
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(millions).............. $37.5 $33.0 $24.6 $17.4 $10.5 $7.1
Ratio of expenses to
average net assets:
Before expense
reimbursement....... 0.67%# 0.75% 0.76% 1.05% 1.20% 1.45%#
After expense
reimbursement....... 0.52%# 0.53% 0.54% 0.58% 0.60% 0.60%#
Ratio of net investment
income to average net
assets:
Before expense
reimbursement....... 2.15%# 2.50% 2.78% 3.58% 3.32% 2.81%#
After expense
reimbursement....... 2.30%# 2.72% 3.00% 4.03% 3.91% 3.66%#
Portfolio turnover........ 5% 22% 21% 29% 26% 2%
Average commission rate
per share............... $0.0466 $0.0458 N/A N/A N/A N/A
</TABLE>
- ---------------
+ Commencement of operations.
# Annualized.
## Not Annualized.
See Notes to Financial Statements.
11
