- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
President's Message........................................................ i
Investment Review.......................................................... iii
Combined Financial Statements.............................................. 1
Financial Statements of Investment Funds................................... 4
Core Equity Fund......................................................... 4
Value Equity Fund........................................................ 10
Emerging Growth Equity Fund.............................................. 16
International Equity Fund................................................ 26
Actively Managed Bond Fund............................................... 35
Intermediate-Term Bond Fund.............................................. 43
Short-Term Investment Fund............................................... 51
Notes to Financial Statements.............................................. 56
Officers, Consultants, Investment Managers, Custodians, Distributor,
Transfer Agent........................................................... 72
Board of Trustees.......................................................... 73
<PAGE>
President's Message
To Our Unitholders:
The six-month period ended March 31, 1995, was rather volatile for investors.
After a lackluster fourth quarter 1994, the equity and bond markets rebounded
nicely in the first quarter 1995 -- the S&P 500 Index (a measure of the broad
equity market) was up 9.74% and the Lehman Brothers Aggregate Bond Index (a
proxy for the fixed-income markets) rose 5.04%. The first quarter's excellent
results were fueled by continued solid economic growth and the view that
inflation remains reasonably under control. In this environment, interest rates
contracted at the intermediate to long end of the yield curve, and investor
sentiment was strong for both medium to large capitalization value and growth
stocks.
Looking back at past market cycles, this seesaw environment of the past six
months is not an uncommon occurrence. As a mutual fund dedicated exclusively to
the accumulation of retirement plan assets and Individual Retirement Accounts,
we stress that saving for retirement is a long-term goal. If there is a secret
to successful retirement investing, it lies in discipline -- putting together an
investment mix that's right for an individual, and staying with it through good
times and bad. We take extra measures to reinforce this idea, particularly to
our defined contribution plan participants. We devoted one issue of our
quarterly newsletter Reaping Your Rewards to this topic. Additional participant
communications were developed where investment performance results may have
prompted transfers into our conservative, money-market type investment option.
The concept of "staying the course" for long-term, retirement investing bears
repeating over and over again.
I am pleased to note that in the six months that have elapsed since the end of
fiscal year 1994, the Core Equity Fund, the Emerging Growth Equity Fund, the
International Equity Fund and the Actively Managed Bond Fund turned in results
that were more favorable than their respective Lipper benchmarks. The best
performing investment fund, the Emerging Growth Equity Fund, at 10.96% for the
period, more than doubled its benchmark (the Lipper Small Company Growth Funds
Average). Over the longer term (10 years ended March 31, 1995), all of the
Trust's equity funds reflected double digit annualized results and the two
fixed-income funds both exceeded 9% per year results.
One fund, however, has not met our performance standards -- the Value Equity
Fund. In an effort to strengthen its investment performance, a decision was made
by the Board of Trustees to appoint Retirement System Investors Inc. as the
Fund's manager effective April 1, 1995.
On other fronts, during the six months covered by this report, the Trust began
offering the International Equity Fund as an investment option in defined
contribution plans. (A component of the Trust's program for defined benefit
plans since its addition in May 1984, the International Equity Fund has achieved
an annualized return of 12.51% for that
<PAGE>
period.) Clients choosing to make this fund available in their plans give their
employees an even broader choice of investment options in which to diversify
their account balances.
During the fiscal year-to-date, another positive development has been the growth
of assets under Trust management, which have increased by $12 million, to $522
million at March 31, 1995.
On behalf of the Board of Trustees, I'd like to thank our unitholders for
choosing RSI Retirement Trust to help meet their retirement savings goals. I'd
also like to thank members of the Board for their valuable counsel and
assistance over the period covered by this report.
Sincerely,
William Dannecker
President and Trustee
May 26, 1995
ii
<PAGE>
Investment Performance Review
Equity Funds
For the first quarter of fiscal year 1995, most equity market indices were down
- -- the Russell 2000, a small capitalization index, was down by -1.87%, followed
by the Russell 1000 Value Index, by -1.58%, and the MSCI EAFE Index (an
international equity market index) by -1.02%. The S&P 500, a representative
index of the U.S. broad equity market, was off marginally by -0.03%.
The second quarter of the fiscal year (the first quarter of calendar year 1995)
began with some degree of uncertainty. There were concerns over the outcome of
the mid-term elections (which resulted in a Republican majority in Congress) and
an overheated economy. There were also questions about whether the Federal
Reserve would take further action to slow the economy in an attempt to control
inflation.
By the end of the quarter, however, it was clear that a turning point had
occurred -- economic growth was definitely contracting, which became more
evident after the Federal Reserve increased the Federal Funds Rate another 50
basis points, to 6%, in February. With inflationary fears dampened, investor
sentiment in the U.S. became very bullish and all the domestic equity markets
rose accordingly, with the S&P 500 leading the way, up 9.74% for the quarter and
9.71% for the six-month period ended March 31, 1995. During this period,
however, the international equity markets (MSCI EAFE Index) remained quite
volatile with negative returns in January and February followed by a major
upturn in March, which resulted in a 1.86% positive result for the quarter and
0.83% for the past six months.
In this environment, the Trust's domestic equity funds turned in solid
performance results for the six-month period (October, 1994 through March,
1995).
Core Equity Fund
The Core Equity Fund posted a 7.59% return for the six months ended March 31,
1995, outperforming the 6.20% return of Lipper Growth and Income Funds Average,
its performance benchmark. For the one-year period ended March 31, 1995, the
Core Equity Fund returned 12.79%, more than two percentage points higher than
its Lipper benchmark for the same period. Over the long-term (since inception,
12 1/4 years ended March 31, 1995), the Core Fund achieved a 14.45% annualized
return, 1.37% higher than the 13.08% per year return of the Lipper Growth and
Income Funds Average. This annualized return ranked the Core Equity Fund in the
top 19% of the Lipper Growth and Income Funds grouping (17th out of 93 funds).
These long-term results for the Core Equity Fund have been achieved while taking
less risk (as measured by standard deviation) than the overall market, as
represented by the
iii
<PAGE>
S&P 500. The standard deviation of return for the Fund was 13.75 versus 14.55
for the index over this 12 1/4 year period.
Value Equity Fund
The Value Equity Fund posted a 5.32% return for the fiscal year-to-date, ended
March 31, 1995, and trailed its performance benchmark, the Lipper Growth &
Income Funds Average, by 0.88% for this period. For the one-year period ended
March 31, 1995, the Value Equity outperformed its benchmark with an 11.81%
return, versus the Lipper return of 10.35%. For the longer periods of time, this
Fund underperformed versus its Lipper benchmark.
Emerging Growth Equity Fund
The Emerging Growth Equity Fund returned 10.96% for the fiscal year-to-date,
more than double its performance benchmark, the Lipper Small Company Growth
Funds Average return of 5.28%. For the one-year period, the Fund posted a 15.55%
return, compared to the 7.69% return of its Lipper benchmark, and ranked in the
top 14% of the Lipper Small Company Growth Funds Average grouping (35th out of
250 funds). Over the ten-year period ended March 31, 1995, the Emerging Growth
Fund achieved an annualized return of 13.53%, outpacing its benchmark's
annualized return of 13.25%. Since inception (January 1, 1983 to March 31,
1995), the Fund's annualized return of 13.69% outperformed its benchmark's
return of 12.18%, and ranked in the top 17% of the Lipper Small Company Growth
Funds grouping.
International Equity Fund
The International Equity Fund's return for the six-month period ended March 31,
1995, was down -5.70%, and was slightly more favorable than its benchmark, the
Lipper International Equity Funds Average, which declined by -5.82%. For the
ten-year period ended March 31, 1995, this Fund had an annualized return of
13.46%, trailing the Lipper International Equity Funds Average return of 15.03%
per year for this period. However, it's important to note that the International
Equity Fund's ten-year return was achieved with appreciably less risk (as
measured by standard deviation) than that market, as measured by the MSCI EAFE
Index. The standard deviation of return for the Fund was 15.77 versus 20.28 for
the index over this ten year period.
Fixed-Income Funds
The fourth quarter of 1994 was a lackluster period for the fixed-income market,
with bonds generally performing at close to a breakeven rate. The first quarter
of 1995, however, marked a change in direction. Influenced in part by the
Federal Reserve's
iv
<PAGE>
action in February to increase the Federal Funds Rate -- a move designed to
control the threat of inflation -- intermediate to long-term bond interest rates
declined more rapidly, and the bond market's performance improved significantly.
For example, the Lehman Brothers Aggregate Index (a representative proxy for the
fixed-income markets) rose 5.04% for the quarter and 5.44% for the six-month
period.
Intermediate-Term Bond Fund
For the six-month period ended March 31, 1995, the Intermediate-Term Bond Fund
returned 3.86%, trailing its performance benchmark, the Lipper Intermediate (5-
to 10-year maturities) U.S. Government Funds, which returned 4.25%. Over every
longer term period, however, this Fund outperformed its Lipper benchmark. For
the five-year period ended March 31, 1995, it returned 7.80% per year, compared
to the 7.64% annual return of the benchmark. Since inception (12 1/4 years ended
March 31, 1995), this Fund, at an annualized return of 9.35%, has outperformed
its benchmark by 76 basis points (9.35% versus 8.59%, respectively) and is the
top performing fund in the Lipper Intermediate (5-to 10-year maturities) U.S.
Government Fund grouping.
The Intermediate-Term Bond Fund continues to emphasize quality of holdings, with
88% in U.S. Government and other AAA-rated securities. At March 31, 1995, the
average maturity and average duration of all portfolio holdings was 3.9 years
and 3.2 years, respectively, versus 3.7 years and 3.1 years, respectively, at
the start of fiscal year 1995.
Actively Managed Bond Fund
The Actively Managed Bond Fund outperformed its benchmark, the Lipper U.S.
Government Bond Funds, for every period ended March 31, 1995. For the fiscal
year-to-date, the Fund returned 5.14% versus 4.79% for the Lipper benchmark. For
the ten-year period ended March 31, 1995, the Fund outpaced the benchmark return
of 8.59% per year by nearly one percentage point per year, with an annualized
return of 9.56%. For this period, the Fund ranked in the top 14% of the Lipper
U.S. Government Funds grouping (3rd out of 22 funds).
This Fund also continues to emphasize quality of holdings, with more than 93% in
U.S. Government and other AAA-rated securities. At March 31, 1995, the average
maturity and average duration of portfolio holdings was 6.6 years and 4.6 years,
respectively, which was comparable to the position maintained at September 30,
1994.
Short-Term Investment Fund
For the six-months ended March 31, 1995, the Short-Term Investment Fund posted a
return of 2.45%, slightly underperforming the 2.54% return of the Donoghue All
Taxable Money Funds Average. For the ten-year period ended March 31, 1995, the
Fund produced an annual return of 5.96%, exceeding the Donoghue benchmark's
annualized
v
<PAGE>
return of 5.85%. Since inception (January 1983 to March 31, 1995), the Fund also
returned a higher rate than the benchmark, achieving a 6.74% annual return
versus 6.45% for the Donoghue All Taxable Money Funds Average.
The Short-Term Investment Fund continues to emphasize quality of holdings, with
98% in U.S. Government securities and the highest quality rated (A1+/PI)
commercial paper issues. The average maturity of portfolio holdings increased to
56 days at March 31, 1995, from 28 days at September 30, 1994.
vi
<PAGE>
<TABLE>
Equity Funds
Net Investment Performance(1)
For Periods Ended March 31, 1995
<CAPTION>
Annualized
----------------------------------------
Since
6 Months 1 Year 5 Years 10 Years Inception(2)
-------- ------ ------- -------- ------------
<S> <C> <C> <C> <C> <C>
CORE EQUITY FUND 7.59% 12.79% 9.34% 13.38% 14.45%
VALUE EQUITY FUND 5.32 11.81 8.13 10.13 10.57
Lipper Growth & Income Funds Average(3) 6.20 10.35 10.52 12.48 13.08
EMERGING GROWTH EQUITY FUND 10.96 15.55 16.19 13.53 13.69
Lipper Small Company Growth Funds Average(3) 5.28 7.69 13.85 13.25 12.18
INTERNATIONAL EQUITY FUND -5.70 -1.89 5.38 13.46 12.51
Lipper International Funds Average(3) -5.82 -1.70 6.48 15.03 13.31
- ----------
<FN>
(1) All performance results shown are net of management fees and all related
expenses, unless otherwise footnoted.
(2) The International Equity Fund was started on May 1, 1984. The inception
date for all other funds was January 1, 1983.
(3) Lipper Analytical Services is an independent reporting service that
measures the performance of most U.S. mutual funds. The performance results
reflect an unmanaged index and are net of all expenses other than sales
charges and redemption fees.
</FN>
</TABLE>
<PAGE>
<TABLE>
Fixed-Income Funds
Net Investment Performance(1)
For Periods Ended March 31, 1995
<CAPTION>
Annualized
----------------------------------------
Since
6 Months 1 Year 5 Years 10 Years Inception(4)
-------- ------ ------- -------- ------------
<S> <C> <C> <C> <C> <C>
INTERMEDIATE-TERM BOND FUND 3.86% 3.53% 7.80% 9.07% 9.35%
Lipper Intermediate (5 to 10 year maturities) 4.25 3.24 7.64 8.49 8.59
U.S. Gov't Funds Average (2)
ACTIVELY MANAGED BOND FUND 5.14 3.63 8.94 9.56 9.61
Lipper U.S. Government Bond Funds Avg.(2) 4.79 2.95 7.76 8.59 8.91
SHORT-TERM INVESTMENT FUND 2.45 4.21 4.42 5.96 6.74
Donoghue All Taxable Money Fund Avg.(3) 2.54 4.43 4.54 5.85 6.45
- ----------
<FN>
(1) All performance results shown are net of management fees and all related
expenses, unless otherwise footnoted.
(2) Lipper Analytical Services is an independent reporting service that
measures the performance of most U.S. mutual funds. The performance
results reflect an unmanaged index and are net of all expenses other than
sales charges and redemption fees.
(3) Reported by the Donoghue Money Fund Reporting Service. The performance
results reflect an unmanaged index and are net, since expenses are
applicable.
(4) Inception date was January 1, 1983.
</FN>
</TABLE>
<PAGE>
RSI RETIREMENT TRUST
COMBINED STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $448,552,647) - Note 2 (A) $520,545,148
Cash 1,776,519
Receivable for investments sold 20,930,102
Receivable for units sold 562,886
Dividends and interest receivable 3,474,239
Other assets 69,552
------------
547,358,446
LIABILITIES:
Payable for investments purchased $23,386,115
Payable for units redeemed 131,356
Payable to investment manager 355,206
Accrued expenses 374,508
Net loss on forward foreign currency
contracts - Note 4 686,531 24,933,716
----------- ------------
NET ASSETS - Note 5 $522,424,730
============
See Notes to Financial Statements
-1-
<PAGE>
RSI RETIREMENT TRUST
COMBINED STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Dividends $ 2,716,610
Interest 8,933,049
Other income 26,846
------------
Total Income $ 11,676,505
Expenses:
Investment managers's fees - Note 3(A) 1,341,563
Shareholder servicing fees
and expenses - Note 3(B) 1,151,307
Custodian fees and expenses 156,286
Legal and auditing fees 56,981
Consultant fees 39,389
Trustees' fees and expenses - Note 3(D) 85,112
Insurance Premiums 74,178
Other 65,567
------------
Total Expenses 2,970,383
Less expense reimbursement - Note 3 (47,514)
------------
Net Expenses 2,922,869
------------
INVESTMENT INCOME - NET 8,753,636
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS - Note 4:
Net realized gain (loss) on:
Investments 5,483,268
Foreign currency transactions (86,070)
------------
5,397,198
------------
Unrealized appreciation (depreciation)
on investments
Investments 13,677,124
Foreign currency translations of
other assets and liabilities (669,654)
------------
13,007,470
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCIES 18,404,668
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 27,158,304
============
See Notes to Financial Statements
-2-
<PAGE>
RSI RETIREMENT TRUST
COMBINED STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
------------ ------------
OPERATIONS
Investment income - net $ 8,753,636 $ 16,365,895
Net realized gain on investments 5,397,198 18,184,703
Unrealized appreciation (depreciation)
on investments 13,007,470 (34,441,978)
------------ ------------
Net increase in
net assets resulting
from operations 27,158,304 108,620
------------ ------------
CAPITAL TRANSACTIONS - Note 5
Value of units sold 46,303,616 94,578,019
Value of units redeemed (61,113,141) (127,116,659)
------------ ------------
Net (decrease) in
net assets resulting
from capital transactions (14,809,525) (32,538,640)
------------ ------------
Net increase (decrease) 12,348,779 (32,430,020)
NET ASSETS at beginning of period 510,075,951 542,505,971
------------ ------------
NET ASSETS at end of period $522,424,730 $510,075,951
============ ============
See Notes to Financial Statements
-3-
<PAGE>
Core Equity Fund
Statement of Investments
March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS 89.1%
AEROSPACE 4.5%
129,400 Lockheed Martin Corp. $ 6,842,025
------------
AUTOMOTIVE & PARTS 1.9%
36,400 Arvin Industries Inc. 773,500
49,700 Chrysler Corp. 2,081,188
------------
2,854,688
------------
BASIC MATERIALS 3.1%
28,400 E.I. Du Pont De Nemours & Company 1,718,200
24,800 Phelps Dodge Corp. 1,410,500
31,300 Union Camp Corp. 1,623,688
------------
4,752,388
------------
BROADCASTING AND PUBLISHING 0.2%
22,550 Comcast Corp Special - Cl A 349,525
------------
BUILDING PRODUCTS 2.8%
85,500 Armstrong World Industries Inc. 3,900,938
23,000 Martin Marietta Materials Inc. 442,750
------------
4,343,688
------------
DATA PROCESSING SERVICES 10.3%
11,500 Cisco Systems Inc.* 437,000
2,600 Fore Systems Inc.* 102,700
60,000 Informix Corp.* 2,062,500
70,100 Intel Corp. 5,949,738
39,000 Microsoft Corp.* 2,773,875
142,800 Oracle Systems Corp.* 4,462,500
------------
15,788,313
------------
DRUG AND HEALTH CARE 13.2%
181,000 Johnson & Johnson 10,769,500
176,900 Merck & Company Inc. 7,540,362
21,200 Pfizer Inc. 1,817,900
------------
20,127,762
------------
ELECTRONICS AND ELECTRICAL EQUIP. 7.6%
51,600 Emerson Electric Company 3,431,400
107,200 General Electric Company 5,802,200
19,800 Hewlett Packard Company 2,383,425
------------
11,617,025
------------
See Notes to Financial Statements
-4-
<PAGE>
Shares Value
------ -----
ENERGY 12.4%
40,400 Amoco Corp. $ 2,570,450
68,381 Burlington Resources Inc. 2,786,525
143,000 Dresser Industries Inc. 3,038,750
46,000 Royal Dutch Petroleum Company 5,520,000
76,000 Texaco Inc. 5,054,000
------------
18,969,725
------------
ENGINEERING AND CONSTRUCTION 4.2%
132,900 Fluor Corp. 6,412,425
------------
FINANCE 7.6%
101,500 Federal National Mortgage Association 8,259,562
54,000 Morgan (J.P.) & Company Inc. 3,294,000
------------
11,553,562
------------
HOUSEHOLD PRODUCTS 4.1%
94,600 Procter & Gamble Company 6,267,250
------------
MACHINERY 1.5%
7,500 Cincinnati Milacron Inc. 171,562
66,600 Ingersoll-Rand Company 2,189,475
------------
2,361,037
------------
OTHER 0.5%
11,600 Philip Morris Companies Inc. 756,900
------------
SOFTWARE PRODUCTS 0.1%
300 Broderbund Software Inc.* 15,525
3,900 Sybase Inc. 156,000
------------
171,525
------------
TELECOMMUNICATIONS 14.9%
188,600 American Telephone & Telegraph Corp. 9,760,050
113,600 DSC Communication Corp. 3,699,100
201,700 GTE Corp. 6,706,525
29,700 Motorola Inc. 1,622,363
12,700 Newbridge Networks, Corp.* 415,925
9,000 Tellabs Inc.* 524,250
------------
22,728,213
------------
Total Common Stocks (Cost $76,756,559) $135,896,051
============
See Notes to Financial Statements
-5-
<PAGE>
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENT 10.7%
$16,277,334 Bear, Stearns & Co. Inc. Dated
3/31/1995 6.20% Due 4/3/1995
Collateralized by 74,379,000 United States
Treasury Strips Due 5/15/2016 and
10,460,000 United States Treasury
Strips Due 8/15/2019 (Value
$16,603,299) $ 16,277,334
------------
Total Investments (Cost $93,033,893) 99.8% 152,173,385
Other Assets, less Liabilities 0.2% 376,474
------ ------------
Net Assets 100.0% $152,549,859
====== ============
*Denotes non-income producing security.
See Notes to Financial Statements
-6-
<PAGE>
CORE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $93,033,893) - Note 2(A) $152,173,385
Receivable for investments sold 187,939
Receivable for units sold 100,951
Dividends and interest receivable 439,491
Other assets 10,563
------------
152,912,329
LIABILITIES:
Payable for investments purchased $ 213,480
Payable for units redeemed 17,812
Payable to investment manager 68,561
Accrued expenses 62,617 362,470
------------ ------------
NET ASSETS
at value, applicable
to 3,985,925 outstanding
units of beneficial interest
- Note 5 $152,549,859
============
NET ASSET VALUE,
offering and redemption price per unit
($152,549,859 divided by 3,985,925 units) $ 38.27
============
See Notes to Financial Statements
-7-
<PAGE>
CORE EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Dividends $ 1,663,675
Interest 372,830
------------
Total Income $ 2,036,505
Expenses:
Investment manager's fees - Note 3(A) 387,861
Shareholder servicing fees
and expenses - Note 3(B) 269,829
Custodian fees and expenses 18,957
Legal and auditing fees 8,359
Consultant fees 5,897
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 23,098
Other 8,499
------------
Total Expenses 733,139
------------
INVESTMENT INCOME - NET 1,303,366
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Net realized gain on investments 1,247,786
Unrealized appreciation on investments 8,331,274
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 9,579,060
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 10,882,426
============
See Notes to Financial Statements
-8-
<PAGE>
CORE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
----------------- ----------
OPERATIONS:
Investment income - net $ 1,303,366 $ 2,199,351
Net realized gain on investments 1,247,786 5,746,741
Unrealized appreciation (depreciation)
on investments 8,331,274 (3,437,517)
------------ ------------
Net increase in
net assets resulting
from operations 10,882,426 4,508,575
------------ ------------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 13,797,344 19,983,360
Value of units redeemed (13,673,560) (29,085,529)
------------ ------------
Net increase (decrease) in
net assets resulting
from capital transactions 123,784 (9,102,169)
------------ ------------
Net increase (decrease) 11,006,210 (4,593,594)
NET ASSETS at beginning of period 141,543,649 146,137,243
------------ ------------
NET ASSETS at end of period $152,549,859 $141,543,649
============ ============
See Notes to Financial Statements
-9-
<PAGE>
Value Equity Fund
Statement of Investments
March 31, 1995 (Unaudited)
----------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS 97.3%
AEROSPACE 4.1%
31,500 Northrop Corp. $ 1,539,563
-----------
AUTOMOBILES 3.8%
17,800 Chrysler Corporation 745,375
25,200 Ford Motor Company 680,400
-----------
1,425,775
-----------
CONSUMER GOODS AND SERVICES 2.1%
45,400 Maytag Corp. 777,475
-----------
DRUG AND HEALTH CARE 4.0%
12,100 Bristol-Myers Squibb Company 762,300
20,400 Upjohn Company 729,300
-----------
1,491,600
-----------
ELECTRONICS AND ELECTRICAL 2.2%
55,000 EG&G Inc. 825,000
-----------
ENERGY 10.3%
6,300 Atlantic Richfield Company 724,500
30,500 Peoples Energy Corp. 762,500
11,100 Texaco Inc. 738,150
62,000 Ultramar Corp. 1,612,000
-----------
3,837,150
-----------
FINANCIAL SERVICES 14.9%
14,600 Aetna Life & Casualty Company 832,200
8,800 Bankers Trust New York Corp. 459,800
44,714 Bear Stearns Companies 827,209
21,400 Chase Manhattan Corp. 762,375
18,000 Mellon Bank Corp. 733,500
29,100 PNC Bank Corp. 709,313
40,400 Painewebber Group Inc. 651,450
26,500 Provident Life & Acc. Ins. Co. America Cl B 599,562
-----------
5,575,409
-----------
FOOD SERVICES 3.3%
54,700 Fleming Companies Inc. 1,237,587
-----------
See Notes to Financial Statements
-10-
<PAGE>
Shares Value
------ -----
HOUSEHOLD PRODUCTS 1.9%
9,700 American Home Products Corp. $ 691,125
-----------
MACHINERY - GENERAL 4.3%
9,400 Deere & Company 763,750
18,400 Gatx Corp. 823,400
-----------
1,587,150
-----------
MATERIALS & SERVICES 4.0%
14,400 Phelps Dodge Corp. 819,000
18,000 PHH Corp. 684,000
-----------
1,503,000
-----------
MEDICAL EQUIPMENT 2.3%
26,000 Baxter International Inc. 851,500
-----------
MERCHANDISING 13.6%
90,700 K Mart Corp. 1,247,125
43,600 Melville Corp. 1,624,100
34,200 Mercantile Stores Inc. 1,526,175
18,300 Springs Industries Inc. 686,250
-----------
5,083,650
-----------
PHARMACEUTICALS 2.0%
30,800 Marion Merrel Dow Inc. 762,300
-----------
PRINTING 1.8%
29,700 Harland (John H.) Company 671,963
-----------
TELECOMMUNICATIONS 7.8%
43,600 Comsat Corp. 812,050
17,100 Harris Corp. 818,663
18,400 Southern New England Telecommunications Corp. 614,100
16,500 U S West Inc. 660,000
-----------
2,904,813
-----------
TOBACCO 3.9%
37,200 American Brands Inc. 1,460,100
-----------
UTILITIES 10.9%
27,200 Cinergy Corp. 676,600
23,600 Detroit Edison Company 646,050
27,600 Nicor Inc. 690,000
17,700 Nynex Corp. 701,362
See Notes to Financial Statements
-11-
<PAGE>
Shares Value
------ -----
UTILITIES - (Continued)
20,800 Texas Utilities Company $ 660,400
47,200 Washington Water Power Company 708,000
-----------
4,082,412
-----------
Total Common Stocks (Cost $35,017,395) $36,307,572
-----------
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENT 2.5%
$945,935 Bear, Stearns & Co. Inc. Dated
3/31/1995 6.20% Due 4/3/1995
Collateralized by 9,775,000 Fannie Mae
Remic Trust Due 9/25/2016 (Value
$977,283) $ 945,935
-----------
Total Investments (Cost $35,963,330) 99.8% 37,253,507
Other Assets, less Liabilities 0.2% 58,065
------ -----------
Net Assets 100.0% $37,311,572
====== ===========
See Notes to Financial Statements
-12-
<PAGE>
VALUE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $35,963,330) - Note 2(A) $ 37,253,507
Receivable for units sold 27,496
Dividends and interest receivable 108,554
Other assets 5,161
------------
37,394,718
LIABILITIES:
Payable for units redeemed $ 1,868
Payable to investment manager 44,853
Accrued expenses 36,425 83,146
------------ ------------
NET ASSETS
at value, applicable
to 1,309,738 outstanding
units of beneficial interest
- Note 5 $ 37,311,572
============
NET ASSET VALUE,
offering and redemption price per unit
($37,311,572 divided by 1,309,738 units) $ 28.49
============
See Notes to Financial Statements
-13-
<PAGE>
VALUE EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- ------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Dividends $ 808,240
Interest 59,614
Other Income 12,054
------------
Total Income $ 879,908
Expenses:
Investment manager's fees - Note 3(A) 116,241
Shareholder servicing fees
and expenses - Note 3(B) 101,470
Custodian fees and expenses 7,901
Legal and auditing fees 7,362
Consultant fees 5,897
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 2,635
Other 8,494
------------
Total Expenses 260,639
------------
INVESTMENT INCOME - NET 619,269
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Net realized gain on investments 696,754
Unrealized appreciation on investments 607,016
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 1,303,770
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,923,039
============
See Notes to Financial Statements
-14-
<PAGE>
VALUE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
----------------- ----------
OPERATIONS:
Investment income - net $ 619,269 $ 1,082,541
Net realized gain on investments 696,754 1,850,734
Unrealized appreciation (depreciation)
on investments 607,016 (2,236,034)
------------ ------------
Net increase in
net assets resulting
from operations 1,923,039 697,241
------------ ------------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 3,548,430 5,263,921
Value of units redeemed (3,763,327) (8,462,033)
------------ ------------
Net (decrease) in
net assets resulting
from capital transactions (214,897) (3,198,112)
------------ ------------
Net increase (decrease) 1,708,142 (2,500,871)
NET ASSETS at beginning of period 35,603,430 38,104,301
------------ ------------
NET ASSETS at end of period $ 37,311,572 $ 35,603,430
============ ============
See Notes to Financial Statements
-15-
<PAGE>
Emerging Growth Equity Fund
Statement of Investments
March 31, 1995 (Unaudited)
-----------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS 96.6%
APPAREL AND TEXTILE 1.1%
11,030 St. Johns Knits Inc. $ 402,595
9,910 Tommy Hilfiger Corp.* 218,020
-----------
620,615
-----------
AUTOMOTIVE PARTS & EQUIPMENT 1.1%
2,315 APS Holding Corp.* 57,296
18,700 Discount Auto Parts Inc.* 448,800
7,550 Edelbrock Corp.* 94,375
-----------
600,471
-----------
BROADCASTING & PUBLISHING 1.4%
4,830 Infinity Broadcasting-Cl. A* 201,653
4,750 Lin Television Corp. * 154,375
2,140 Renaissance Communications Corp.* 68,480
7,410 SFX Broadcasting Inc.* 163,020
8,450 Young Broadcasting Corp. Cl. A* 185,900
-----------
773,428
-----------
BUILDING & CONSTRUCTION 0.7%
10,670 Fastenal Company 262,749
9,240 Schuler Homes Inc.* 100,485
-----------
363,234
-----------
BUSINESS AND PUBLIC SERVICES 6.2%
8,100 Accustaff Inc.* 154,913
5,680 America Online Inc.* 421,740
6,560 Cambridge Technology Partners Inc.* 196,800
5,782 Concord EFS, Inc.* 159,005
6,800 Encad Inc.* 120,700
8,762 Fiserv Inc.* 232,193
9,050 FTP Software Inc.* 285,075
4,190 Interim Services Inc* 124,653
9,402 Keane Inc.* 227,999
2,700 Medaphis Corp.* 170,100
8,450 Mercury Interactive Corp.* 139,425
2,405 Netmanage Inc.* 99,808
17,800 Robert Half International Inc.* 453,900
3,225 Security Dynamics Tech Inc.* 106,425
7,550 U.S. Delivery Systems Inc.* 149,113
3,105 Wall Data Inc.* 142,054
5,179 Zebra Technologies Corp.* 212,339
-----------
3,396,242
-----------
See Notes to Financial Statements
-16-
<PAGE>
Shares Value
------ -----
CHEMICALS 1.6%
37,000 Applied Extrusion Technologies Inc.* $ 476,375
35,000 Rexene Corp.* 385,000
-----------
861,375
-----------
COMPUTER SYSTEMS 2.8%
16,300 Komag Inc.* 513,450
24,300 Printronix Inc.* 486,000
35,000 Trident Microsystems Inc.* 551,250
-----------
1,550,700
-----------
CONSTRUCTION AND HOUSING 0.9%
27,800 American Building Company* 472,600
-----------
CONSUMER GOODS AND SERVICES 7.2%
1,100 Alternative Resources Corp.* 42,900
4,875 Blyth Industries Inc.* 134,063
5,830 Cannondale Corp.* 71,418
8,450 Cyrk Inc.* 139,425
7,645 Department 56 Inc.* 304,844
3,100 Doubletree Corp.* 61,225
10,175 Hollywood Entertainment Corp.* 353,581
12,100 Loewen Group Inc. 329,725
4,900 O'Charleys Inc.* 53,900
5,100 On Assignment Inc.* 96,900
70,400 Prime Hospitality Corp.* 739,200
6,400 Scientific Games Holdings Corp.* 128,000
6,300 Speedway Motorsports Inc.* 113,400
10,260 Stewart Enterprises Inc. 274,455
4,375 Sunglass Hut International Inc. 127,969
22,300 Toro Co. 638,337
10,265 Wolverine World Wide Inc. 314,366
-----------
3,923,708
-----------
DRUG AND HEALTH CARE 12.4%
18,515 Authentic Fitness Corp.* 296,240
6,500 Community Health Systems* 204,750
3,000 Coventry Corp.* 87,000
10,300 Dura Pharmaceuticals Inc.* 149,350
7,015 Grancare Inc.* 119,255
10,285 Health Management Associates* 296,979
11,055 Health Management Inc.* 205,899
15,725 Healthcare Services Group Inc. 188,700
7,100 Healthsource Inc.* 336,363
2,915 Healthsouth Corp.* 118,422
See Notes to Financial Statements
-17-
<PAGE>
Shares Value
------ -----
DRUG AND HEALTH CARE - (Continued)
10,025 Horizon Healthcare Corp.* $ 268,169
4,500 Idexx Laboratories Inc.* 185,625
5,900 I-Stat Corp.* 147,500
10,615 Lincare Holdings Inc.* 314,469
6,025 Living Centers Of America* 226,691
2,600 Mariner Health Group Inc.* 50,375
22,600 Maxicare Health Plans* 387,025
6,940 Medisense Inc.* 137,065
35,000 Multicare Companies* 748,125
17,200 Puritan-Bennett 399,900
4,445 Quantum Health Resources* 92,234
9,120 Ren Corp-USA* 141,360
8,775 Renal Treatment Centers Inc.* 223,763
8,550 Sola International Inc.* 183,825
29,050 United American Healthcare* 613,681
5,792 Vencor Inc.* 206,340
19,100 Wyle Laboratories 465,562
-----------
6,794,667
-----------
ELECTRONICS AND ELECTRICAL 16.2%
20,000 ACT Manufacturing Inc.* 280,000
10,725 Actel Corp.* 134,063
22,000 ASM Lithography Holding N.V.* 613,250
8,775 Baldor Electric Company 243,506
20,000 Belden Inc. 440,000
29,000 Burr-Brown Corp.* 518,375
10,000 C-COR Electronics* 197,500
13,100 Cherry Corp. Class A* 209,600
3,900 Chipcom Corp.* 147,225
26,600 Dynatech Corp.* 399,000
12,007 Exar Corporation* 252,147
4,500 Franklin Electronic Publishers Inc.* 126,563
20,400 ITI Technologies Inc.* 510,000
4,550 International Imaging Materials Inc.* 120,575
20,000 Lattice Semiconductor Corp.* 487,500
10,900 Maxim Integrated Products Inc.* 397,850
30,000 Mentor Graphics Corp.* 465,000
8,475 Oak Industries Inc.* 218,231
32,700 S3 Incorporated* 731,663
8,225 Sanmina Corp.* 267,313
22,400 Semitool Inc.* 470,400
37,000 Semtech Corp.* 425,500
6,065 Silicon Valley Group Inc.* 170,578
4,200 Teradyne Inc.* 174,300
See Notes to Financial Statements
-18-
<PAGE>
Shares Value
------ -----
ELECTRONICS AND ELECTRICAL - (Continued)
3,015 Ultratech Stepper Inc.* $ 146,228
25,300 VLSI Technology Inc.* 452,238
7,175 Zilog Inc.* 256,506
-----------
8,855,111
-----------
FINANCIAL SERVICES 1.8%
32,700 Coast Savings Financial Inc.* 527,288
36,500 Comdata Holdings Corp.* 433,438
-----------
960,726
-----------
FOOD AND SERVICES 1.3%
11,280 Advantage Health Corp.* 262,260
9,200 Apple South Inc. 143,750
5,375 Davco Restaurants Inc.* 71,219
785 DF&R Restaurants Inc.* 10,990
6,650 Landry's Seafood Restaurants Inc.* 203,656
-----------
691,875
-----------
FOOD SERVICES 0.8%
40,000 Grist Mill Company* 465,000
-----------
INSURANCE 5.7%
12,500 Cmac Investments Corp. 471,875
3,200 Crop Growers Corp.* 84,800
15,500 Crop Growers Corp.* 410,750
12,010 HCC Insurance Holdings Inc.* 276,230
5,900 Healthwise Of America Inc.* 207,975
9,525 Life Partners Group Inc. 186,928
7,705 Mid Atlantic Medical Services* 170,473
8,655 Reinsurance Group Of America Inc. 234,767
22,100 Rightchoice Managed Care* 397,800
6,550 Sierra Health Services Inc.* 215,330
5,335 Trenwick Group Inc.* 223,403
7,875 Wellcare Management Group Inc.* 265,780
-----------
3,146,111
-----------
MACHINERY 5.6%
13,000 Cognex Corp.* 367,250
7,871 Credence Systems Corp.* 245,969
1,775 Duracraft Corp.* 61,680
62,000 Fedders Corp.* 457,250
16,000 JLG Industries Inc. 616,000
19,500 Kulicke & Soffa Industries Inc.* 533,812
25,650 N.N. Ball Roller Inc. 371,925
22,000 Whittaker Corp.* 423,500
-----------
3,077,386
-----------
See Notes to Financial Statements
-19-
<PAGE>
Shares Value
------ -----
MEDICAL EQUIPMENT & SERVICES 3.1%
16,900 Abbey Healthcare Group Inc.* $ 614,738
17,200 Mentor Corp./Minn 455,800
25,100 Sun Healthcare Group Inc.* 640,050
-----------
1,710,588
-----------
MEDICAL SUPPLIES 1.6%
40,000 Optical Coating Laboratories Inc. 360,000
30,000 Research Industries Corp.* 525,000
-----------
885,000
-----------
OIL & GAS 0.7%
21,600 Landmark Graphics Corp.* 394,200
15,000 Newpark Resources Inc.* 318,750
13,700 Seitel Inc.* 445,250
-----------
1,158,200
-----------
RETAIL TRADE 1.8%
3,300 Corporate Express Inc.* 86,625
7,845 Gymboree Corp.* 199,066
12,335 Revco D.S. Inc New* 283,705
33,100 Rhodes Inc.* 372,375
815 Stein Mart Inc.* 8,354
8,200 Welcome Home Inc.* 35,875
-----------
986,000
-----------
SOFTWARE PRODUCTS 12.7%
4,100 Analysts International Corp. 92,250
3,900 Applied Voice Technology Inc.* 78,488
45,000 Auspex Systems Inc.* 405,000
6,725 Caere Corp.* 65,569
7,425 Computer Horizons Corp.* 131,793
5,450 Comverse Technology Inc.* 74,938
200 Datastream Systems Inc.* 4,050
200 Dialogic Corp.* 5,600
25,000 Fossil Corp.* 440,625
2,250 Infosoft International Inc.* 106,875
25,000 Lannet Data Communications Ltd.* 456,250
7,000 Mcafee Associates Inc.* 199,500
4,095 Medar Inc.* 40,438
13,400 Microcom Inc.* 149,075
22,500 Network General Corp. 635,625
5,775 Network Peripherals Inc.* 124,162
2,550 Oak Technology Inc.* 75,863
26,300 Pairgain Technologies Inc.* 618,050
See Notes to Financial Statements
-20-
<PAGE>
Shares Value
------ -----
SOFTWARE PRODUCTS - (Continued)
14,700 Platinum Software Corp.* $ 143,325
40,150 Platinum Technology Corp.* 448,756
20,000 PRI Automation Inc.* 435,000
30,000 Read-Rite Corp.* 573,750
6,000 Sierra On-Line Inc.* 129,000
10,000 Softdesk Inc.* 235,000
5,368 Softkey International Inc.* 144,936
25,800 Symantec Corp.* 593,400
24,400 TGV Software Inc.* 530,700
-----------
6,938,018
-----------
TELECOMMUNICATIONS 5.4%
4,675 ALC Communications Corp.* 159,533
33,000 Boston Technology Inc.* 511,500
3,000 Cellular Communications of PR Inc.* 89,250
14,803 Centennial Cellular Corp.* 214,644
19,722 Century Communications Corp.* 194,755
5,920 Clear Channel Communications Inc.* 352,240
5,175 Commnet Cellular Inc.* 126,140
6,375 EIS International Inc.* 105,984
14,820 EZ Communications Inc. - Cl A* 248,235
7,910 Transaction Network Services Inc.* 137,436
11,950 U S Robotics Corp.* 746,875
11,605 Valuvision Intl. Inc. - Cl. A 58,750
-----------
2,945,342
-----------
TRANSPORTATION 3.1%
11,210 Expeditors Int'l Of Wash. Inc. 235,410
4,625 Fritz Companies, Inc* 294,844
4,775 Landstar System Inc.* 148,025
5,000 Union Switch & Signal Inc.* 62,500
20,000 ValuJet Airlines Inc.* 960,000
-----------
1,700,779
-----------
Total Common Stocks (Cost $42,167,459) $52,877,176
-----------
See Notes to Financial Statements
-21-
<PAGE>
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENTS
REPURCHASE AGREEMENT 4.7%
$1,951,648 Bear, Stearns & Co. Inc. Dated
3/31/1995 6.20% Due 4/3/1995
Collateralized by 1,830,000 Fannie Mae
Remic Trust Due 11/15/2020 and
255,000 Federal Home Loan
Mortgage Due 12/15/2018 (Value
$1,990,904) 1,951,648
608,828 Bear, Stearns & Co. Inc. Dated
3/31/1995 6.20% Due 4/3/1995
Collateralized by 4,303,000 United States
Treasury Strips Due 8/15/2019
(Value $621,632) 608,828
-----------
$ 2,560,476
-----------
Total Investments (Cost $44,727,935) 101.2% 55,437,652
Other Assets, less Liabilities -1.2% (677,448)
------ -----------
Net Assets 100.0% $54,760,204
====== ===========
* Denotes non-income producing security.
See Notes to Financial Statements
-22-
<PAGE>
EMERGING GROWTH EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- -----------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $44,727,935) - Note 2(A) $ 55,437,652
Receivable for investments sold 1,052,197
Receivable for units sold 55,900
Dividends and interest receivable 19,921
Other assets 3,523
------------
56,569,193
LIABILITIES:
Payable for investments purchased $ 1,617,098
Payable for units redeemed 3,318
Payable to investment managers 129,290
Accrued expenses 59,283 1,808,989
------------ ------------
NET ASSETS
at value, applicable
to 1,372,408 outstanding
units of beneficial interest
- Note 5 $ 54,760,204
============
NET ASSET VALUE,
offering and redemption price per unit
($54,760,204 divided by 1,372,408 units) $ 39.90
============
See Notes to Financial Statements
-23-
<PAGE>
EMERGING GROWTH EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Dividends $ 50,656
Interest 73,754
Other income 4,792
------------
Total Income $ 129,202
Expenses:
Investment manager's fees - Note 3(A) 308,895
Shareholder servicing fees
and expenses - Note 3(B) 149,542
Custodian fees and expenses 32,550
Legal and auditing fees 10,058
Consultant fees 5,898
Trustees' fees and expenses - Note 3(D) 21,278
Insurance Premiums 3,983
Other 14,512
------------
Total Expenses 546,716
------------
INVESTMENT (LOSS) - NET (417,514)
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Net realized gain on investments 3,851,449
Unrealized appreciation on investments 1,979,342
------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 5,830,791
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 5,413,277
============
See Notes to Financial Statements
-24-
<PAGE>
EMERGING GROWTH EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
------------ ------------
OPERATIONS:
Investment (loss) - net $ (417,514) $ (818,504)
Net realized gain on investments 3,851,449 8,237,825
Unrealized appreciation (depreciation)
on investments 1,979,342 (6,633,162)
------------ ------------
Net increase in
net assets resulting
from operations 5,413,277 786,159
------------ ------------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 5,855,264 9,029,724
Value of units redeemed (4,800,925) (18,168,143)
------------ ------------
Net increase (decrease) in
net assets resulting
from capital transactions 1,054,339 (9,138,419)
------------ ------------
Net increase (decrease) 6,467,616 (8,352,260)
NET ASSETS at beginning of period 48,292,588 56,644,848
------------ ------------
NET ASSETS at end of period $ 54,760,204 $ 48,292,588
============ ============
See Notes to Financial Statements
-25-
<PAGE>
International Equity Fund
Statement of Investments
March 31, 1995 (Unaudited)
----------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS 96.5%
AIRLINES 1.0%
39,200 British Airways $ 261,142
-----------
AUTOMOBILES 1.7%
1,800 Autobacs Seven Co. 193,749
15,500 Volvo AB Series B 268,147
-----------
461,896
-----------
BANKING 6.5%
12,000 Asahi Bank 141,666
3,500 Banque National Paris 178,431
15,000 Hsbc Holdings 170,535
25,000 Kiyo Bank 147,858
15,500 Malayan Banking Bhd 104,660
23,000 Mitsubishi Trust & Banking 338,077
20,000 National Westminster 173,630
23,666 Overseas Chinese Bank 238,049
918 Shinhan Bank Corp Ac 17,713
12,000 Sumitomo Trust & Banking 162,499
5,000 Yamaguchi Bank 91,435
-----------
1,764,553
-----------
BEVERAGES & TOBACCO 2.2%
21,220 B.A.T. Industries Ord 151,732
32,000 Grand Metropolitan 208,486
31,500 Rothmans Intl/Nw 241,144
-----------
601,362
-----------
BROADCASTING & PUBLISHING 3.5%
46,000 Brit Sky Broadcast 190,684
34,600 Elsevier Nv Cvantl 366,392
28,000 Reuters Holdings Ord 217,086
13,000 Toppan Printing Co 179,050
-----------
953,212
-----------
BUILDING MATERIALS 1.4%
38,000 Blue Circle Inds 183,826
33,500 Williams Holdings 185,520
-----------
369,346
-----------
See Notes to Financial Statements
-26-
<PAGE>
Shares Value
------ -----
BUSINESS & PUBLIC SERVICE 3.6%
2,000 Asatsu Inc. $ 77,314
26,000 Brambles Inds Ltd 241,056
2,357 Eaux (Cie Generale) 240,026
5,000 Secom Company 309,605
8,000 Srl Inc 120,370
-----------
988,371
-----------
CHEMICALS 6.0%
3,300 Akzo Nobel N.V. 363,470
11,000 Asahi Chemical Ind 79,953
1,700 Bayer Ag Dm50 (Var) 421,120
17,000 Imperial Chem Inds 200,473
10,000 Kurita Water Inds 245,369
15,000 Nippon Shokubai Co 148,263
28,000 Teisan Kk 166,897
-----------
1,625,545
-----------
CONSTRUCTION & HOUSING 3.1%
8,000 Empresa Ica Soc Adr 48,000
3,900 Fom Const Y Contra 299,947
6,600 Kandenko Co 101,597
16,000 Nishimatsu Construction 180,925
16,000 Sekisui House 207,406
-----------
837,875
-----------
CONSUMER GOODS & SERVICES 2.0%
15,500 Great Universal Stores Plc 141,632
4,900 Polygram 273,532
2,400 Sony Music Ent 121,944
-----------
537,108
-----------
ELECTRONICS & ELECTRICAL 8.9%
450 BBC Brown Boveri, Ptg Cts 430,001
26,000 Canon Inc. 430,321
29,000 General Electric Ord 139,816
30,000 Hitachi Ltd 312,498
20,000 Matsushita Elec Ind. 324,072
3,300 Nintendo Company 202,047
1,600 Nokia Oy 234,503
98 Samsung Electronics Gdr 4,453
10,000 Sharp Corp. 163,193
3,600 Sony Corp 181,249
-----------
2,422,153
-----------
ENERGY SOURCES 4.4%
51,300 British Petroleum 358,461
3,233 Elf Aquitaine 253,599
2,400 Royal Dutch Petroleum 289,913
26,000 Showa Shell Sekiyu 291,896
-----------
1,193,869
-----------
See Notes to Financial Statements
-27-
<PAGE>
Shares Value
------ -----
FINANCE 1.0%
7,500 Gpo Fin Bancomer Gds $ 22,500
14,000 Nomura Securities Company Ltd. 262,498
-----------
284,998
-----------
FOOD & HOUSEHOLD 3.0%
1,400 Castorama Dubois 229,734
2,188 Danone 372,728
10,000 Ezaki Glico Co. 96,643
53,000 Morrison Supermarket 119,130
-----------
818,235
-----------
FOREST PRODUCTS 1.7%
29,000 Settsu Corp* 117,140
6,000 Stora Kopparbergs 358,208
-----------
475,348
-----------
HEALTH 6.8%
11,500 Astra Ab Ser B 298,812
11,000 Glaxo Plc 126,493
70 Roche Holding Ag 406,556
18,700 Sankyo Company 432,868
25,500 Smithkline Beecham 188,982
400 Wella Ag 280,601
5,000 Yamanouchi Pharmaceutical 109,953
-----------
1,844,265
-----------
INDUSTRIAL COMPONENTS 0.5%
20,000 NSK 143,055
-----------
INSURANCE 2.4%
21,000 Britannic Assurance 169,656
44,000 Royal Insurance Ord 205,685
24,000 Tokio Marine & Fire 273,609
-----------
648,950
-----------
MACHINERY & ENGINEERING 5.2%
51,000 Hitachi Zosen Corp. 239,061
31,000 Keppel Corp. 250,334
7,000 Lex Service Plc 37,625
22,000 Matsushita Electric Industrial Wks 259,721
12,000 Max Co. 286,109
46,000 Mitsubishi Heavy Industries 331,688
-----------
1,404,538
-----------
MATERIALS 1.9%
400 Buderus Ag 210,451
2,546 Cie De St. Gobain 317,455
-----------
527,906
-----------
See Notes to Financial Statements
-28-
<PAGE>
Shares Value
------ -----
MERCHANDISING 3.5%
27,000 Daiwa Co $ 262,498
551 Gehe Ag 230,306
7,000 Ito-Yokado Co 348,377
15,000 Kingfisher 112,876
-----------
954,057
-----------
METALS 3.7%
17,000 Cra Limited 221,457
69,000 Kawasaki Steel Corp.* 272,325
180,000 Mim Holdings Ltd 246,894
50,625 Western Mining Corp. 255,848
-----------
996,524
-----------
MISCELLANEOUS 2.2%
37,500 Genting Bhd Myr 337,614
30,000 Granada Group 273,638
-----------
611,252
-----------
MULTI INDUSTRY 3.2%
12,000 BTR Ord 64,111
14,000 Desc-Fomento Ind. B 28,563
10,000 Grupo Carso Sa De 84,400
97,000 Hutchison Whampoa 427,782
29,000 Jardine Matheson 261,000
-----------
865,856
-----------
REAL ESTATE 4.9%
64,000 Cheung Kong Hldgs 278,937
31,872 City Developments 174,970
20,000 Mepc Ord 129,327
21,000 Mitsubishi Estate 237,464
26,000 Mitsui Fudosan Co 288,285
33,300 Sun Hung Kai Properties 227,176
-----------
1,336,159
-----------
TELECOMMUNICATIONS 5.6%
48,300 British Telecomm 307,604
40 DDI Corp. 347,220
3,200 Grupo Televisa Adr 53,200
62,000 Stet ITL 1000 160,131
63,000 Telecom Italia 147,315
28,000 Telefonica De Espana 356,689
5,150 Telefonos De Mexico Adr 146,775
-----------
1,518,934
-----------
TEXTILES 0.7%
35,000 Teijin 186,341
-----------
See Notes to Financial Statements
-29-
<PAGE>
Shares Value
------ -----
TRANSPORTATION 1.8%
42 East Japan Railway $ 206,596
43,000 Tobu Railways Co 273,725
-----------
480,321
-----------
UTILITIES 4.1%
110,000 Monument Oil & Gas* 111,084
53,000 Osaka Gas Co 210,404
18,000 Scottish Power 94,112
27,000 Tenaga Nasional 110,880
48,000 Tokyo Gas Co 210,554
1,050 Veba Ag 382,867
-----------
1,119,901
-----------
Total Investments (Cost $23,017,046) 96.5% 26,233,072
-----------
Other Assets, less Liabilities 3.5% 943,790
------ -----------
Net Assets 100.0% $27,176,862
====== ===========
* Denotes non-income producing security.
See Notes to Financial Statements
-30-
<PAGE>
INTERNATIONAL EQUITY FUND
Geographical Diversification
March 31, 1995
- -------------------------------------------------------------------------------
Percent of Net Assets
-------------------------------------
Common
and Bonds
Preferred and
Country Stocks Notes Total
- ------- --------- ------ -------
Australia 3.7 -- 3.7
France 6.1 -- 6.1
Germany 5.8 -- 5.8
Hong Kong 4.6 -- 4.6
Italy 1.2 -- 1.2
Japan 39.3% --% 39.3%
Finland 0.9 -- 0.9
Mexico 1.5 -- 1.5
Malaysia 2.1 -- 2.1
Sweden 3.5 -- 3.5
Netherlands 4.9 -- 4.9
Singapore 2.5 -- 2.5
Spain 2.5 -- 2.5
South Korea 0.1 -- 0.1
Switzerland 3.2 -- 3.2
United Kingdom 18.2 -- 18.2
----- ---- -----
Total Investments 100.0% --% 100.0%
===== ==== =====
Other Assets Less Liabilities 0.0
-----
Total 100.0%
=====
See Notes to Financial Statements
-31-
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- ------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $23,017,046) - Note 2(A) $ 26,233,072
Cash 1,426,813
Receivable for investments sold 566,766
Receivable for units sold 26,007
Dividends and interest receivable 167,251
Other assets 4,426
------------
28,424,335
LIABILITIES:
Payable for investments purchased $ 462,811
Payable for units redeemed 5,812
Payable to investment manager 41,689
Accrued expenses 50,630
Net loss on forward foreign
currency contracts - Note 4 686,531 1,247,473
------------ ------------
NET ASSETS
at value, applicable
to 756,841 outstanding
units of beneficial interest
- Note 5 $ 27,176,862
============
NET ASSET VALUE,
offering and redemption price per unit
($27,176,862 divided by 756,841 units) $ 35.91
============
See Notes to Financial Statements
-32-
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Dividends $ 194,039
Interest 26,652
Other income 10,000
------------
Total Income $ 230,691
Expenses:
Investment manager's fees - Note 3(A) 111,239
Shareholder servicing fees
and expenses - Note 3(B) 80,434
Custodian fees and expenses 44,808
Legal and auditing fees 8,617
Consultant fees 5,897
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 4,549
Other 8,756
------------
Total Expenses 274,939
------------
INVESTMENT (LOSS) - NET (44,248)
REALIZED AND UNREALIZED (LOSS)
ON INVESTMENTS - Note 4:
Net realized (loss) on:
Investments (265,825)
Foreign currency transactions (86,070)
------------
(351,895)
------------
Unrealized (depreciation) on investments
Investments (633,216)
Foreign currency translations of
other assets and liabilities (669,654)
------------
(1,302,870)
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCIES (1,654,765)
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ (1,699,013)
============
See Notes to Financial Statements
-33-
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
------------------ ----------
OPERATIONS:
Investment (loss) - net $ (44,248) $ (62,984)
Net realized gain on investments (351,895) 1,381,013
Unrealized appreciation (depreciation)
on investments (1,302,870) 878,065
------------ ------------
Net increase in
net assets resulting
from operations (1,699,013) 2,196,094
------------ ------------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 2,892,068 9,450,659
Value of units redeemed (2,687,893) (4,744,547)
------------ ------------
Net increase in
net assets resulting
from capital transactions 204,175 4,706,112
------------ ------------
Net increase (decrease) (1,494,838) 6,902,206
NET ASSETS at beginning of period 28,671,700 21,769,494
------------ ------------
NET ASSETS at end of period $ 27,176,862 $ 28,671,700
============ ============
See Notes to Financial Statements
-34-
<PAGE>
Actively Managed Bond Fund
Statement of Investments
March 31, 1995 (Unaudited)
----------------------------------------------------------------------------
Principal
Amount Value
--------- -----
CORPORATE BONDS 6.8%
BANKS
$ 450,000 Interamerican Development Bank
11.375% Due 5/1/1995 $ 451,801
-----------
FINANCIAL SERVICES
500,000 Beneficial Corp. Mtn
9.32% Due 8/4/1997 520,485
1,125,000 Ford Motor Credit Co. Mtn
10.35% Due 10/1/1997 1,190,423
500,000 Ford Motor Credit Mtn Deb
9.20% Due 5/07/1997 514,800
-----------
FOOD AND SERVICES
2,000,000 General Mills Inc Mtn
8.95% Due 12/18/2000 2,112,578
-----------
OIL
900,000 Standard Oil Of Ohio Deb
6.30% Due 7/1/2001 838,443
-----------
PUBLIC UTILITIES
1,000,000 Consolidated Natural Gas SfDb
8.625% Due 12/1/2011 1,041,426
2,285,000 Virginia Electric & Pwr Mtn
10.00% Due 3/22/1999 2,457,250
-----------
Total Corporate Bonds (Cost $8,822,574) $ 9,127,206
-----------
UNITED STATES GOVERNMENT
AND AGENCY OBLIGATIONS 91.0%
56,336 Collateralized Mtg Oblig Tr 1
0% Due 5/20/2017 $ 39,993
311,986 Collateralized Mtg Oblig Tr 29
0% Due 5/01/2013 222,505
219,119 Collaterized Mtge Sec Corp.
7.00% Due 6/1/2006 215,880
See Notes to Financial Statements
-35-
<PAGE>
Principal
Amount Value
--------- -----
$ 220,270 Collateralized Mtge Sec Corp.
7.00% Due 7/1/2005 $ 216,990
1,000,000 FHLMC Cmo 1534G
6.00% Due 5/15/2022 878,039
2,500,000 FHLMC Note
7.05% Due 1/29/2003 2,394,158
1,220,749 FHLMC Pool #141001
7.75% Due 9/1/2016 1,194,062
550,437 FHLMC Pool #297625
8.50% Due 6/1/2017 554,223
811,753 FHLMC Pool #533624
8.50% Due 12/01/2007 817,743
600,710 FHLMC Pool #533625
8.50% Due 12/1/2007 605,083
2,000,000 FHLMC Remic Pool #1206-Gc
7.00% Due 2/15/2020 1,867,478
2,000,000 FHLMC Remic(Gold) 1197G
6.75% Due 12/15/2006 1,870,798
2,000,000 FHLMC Remic(Gold) 1278G
7.00% Due 11/15/2020 1,939,238
3,000,000 FNMA Cmo 1993-32H
6.00% Due 3/25/2023 2,573,007
2,000,000 FNMA Cmo 1993-76Pj
6.00% Due 6/25/2008 1,711,878
1,000,000 FNMA Note
7.00% Due 8/12/2002 959,474
909,198 FNMA Pass Thru Pool #050987
6.50% Due 2/1/2009 862,719
1,354,403 FNMA Pass Thru Pool #239024
7.00% Due 10/1/2023 1,276,957
1,422,233 FNMA Pass Thru Pool #50966
7.00% Due 1/1/2024 1,340,908
1,122,678 FNMA Pass Thru Pool #87277
7.50% Due 4/1/2018 1,108,161
1,000,000 FNMA Remic #1991-47H
7.50% Due 5/25/2006 980,939
3,000,000 FNMA Remic G92-40L
7.00% Due 7/25/2007 2,813,487
2,000,000 FNMA, Mtn
7.46% Due 9/30/1999 2,002,984
2,000,000 Fed Home Loan Mort Corp.
7.29% Due 4/7/2004 1,933,570
1,500,000 Fed. Home Loan Bank Notes
6.72% Due 6/9/1997 1,490,235
See Notes to Financial Statements
-36-
<PAGE>
Principal
Amount Value
--------- -----
$1,000,000 FHLB Note (Cpn Stepup Every 6Mo)
5.50% Due 4/25/1997 $ 984,648
561,014 GNMA Custom #152027
8.00% Due 10/20/2016 556,649
25,432 GNMA Custom #209105
8.00% Due 3/20/2017 25,225
442,696 GNMA Jumb #000675
8.00% Due 12/20/2016 439,251
100,045 GNMA Jumb #000710
8.00% Due 2/20/2017 99,230
2,034,074 GNMA Pass Thru
8.00% Due 11/15/2024 2,015,826
1,015,045 GNMA Pass Thru Pool #377003
8.00% Due 8/15/2024 1,005,939
975,084 GNMA Pass Thru Pool #385850
8.00% Due 8/15/2024 966,337
2,993 GNMA Pool #002919
8.00% Due 2/15/2004 3,014
3,347 GNMA Pool #010855
8.00% Due 07/15/2006 3,369
47,229 GNMA Pool #011192
7.25% Due 4/15/2006 46,110
21,753 GNMA Pool #025811
9.00% Due 1/15/2009 22,564
112,608 GNMA Pool #05214
8.00% Due 7/15/2005 113,378
68,410 GNMA Pool #1350
6.50% Due 3/15/2002 66,066
286,330 GNMA Pool #169957
8.50% Due 7/15/2016 291,905
187,337 GNMA Pool #193256
8.00% Due 3/15/2017 187,215
424,591 GNMA Pool #196754
8.50% Due 2/15/2017 432,896
156,098 GNMA Pool #202887
8.00% Due 4/15/2017 155,996
100,435 GNMA Pool #205624
8.50% Due 3/15/2017 102,399
307,959 GNMA Pool #213606
8.00% Due 4/15/2017 307,759
17,730 GNMA Pool #216159
8.00% Due 4/15/2017 17,718
464,481 GNMA Pool #218150
8.00% Due 6/15/2017 464,178
See Notes to Financial Statements
-37-
<PAGE>
Principal
Amount Value
--------- -----
$ 17,244 GNMA Pool #247493
8.00% Due 7/15/2018 $ 17,227
9,638 GNMA Pool #290013
8.00% Due 4/15/2020 9,622
268,036 GNMA Pool #290123
8.00% Due 6/15/2020 267,604
201,247 GNMA Pool #291195
8.00% Due 5/15/2020 200,923
1,009,288 GNMA Pool #364979
8.00% Due 04/15/2024 1,000,234
967,364 GNMA Pool #373826
8.00% Due 9/15/2023 958,947
713,991 GNMA Sf Pool #226673
9.50% Due 7/15/2017 749,661
1,875,000 Mbna Cr Card 1991 A
8.25% Due 6/30/1998 1,879,498
1,800,000 U.S. Strip Zero Coupon
0% Due 2/15/2006 811,060
10,020,000 U.S. Treasury Bonds
9.25% Due 2/15/2016 11,757,828
4,610,000 U.S. Treasury Notes
5.50% Due 9/30/1997 4,468,819
6,025,000 U.S. Treasury Notes
6.00% Due 11/30/1997 5,891,317
16,100,000 U.S. Treasury Notes
5.625% Due 8/31/1997 15,662,257
5,000,000 U.S. Treasury Notes
7.875% Due 11/15/1999 5,153,125
500,000 U.S. Treasury Notes
4.625% Due 8/15/1995 497,187
6,575,000 U.S. Treasury Notes
4.125% Due 5/31/1995 6,554,453
6,880,000 U.S. Treasury Notes
5.75% Due 10/31/1997 6,699,400
3,100,000 U.S. Treasury Notes
8.75% Due 8/15/2000 3,324,750
1,000,000 U.S. Treasury Stripped Int Coupon
0% Due 2/15/1998 822,169
5,000,000 U.S. Treasury Stripped Int Coupon
0% Due 5/15/2004 2,582,595
7,000,000 U.S. Treasury Stripped Int Coupon
0% Due 2/15/2002 4,305,763
1,000,000 U.S. Treasury Stripped Int Coupon
0% Due 2/15/1999 764,509
See Notes to Financial Statements
-38-
<PAGE>
Principal
Amount Value
--------- ------
$21,180,000 U.S. Treasury Stripped Int Coupon
0% Due 2/15/2010 $ 6,896,186
------------
Total United States Government and Agency
Obligations (Cost $124,573,248) $121,453,315
------------
Principal
Amount Value
--------- -----
SHORT-TERM INVESTMENTS 1.7%
UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS
$2,300,000 FNMA Discount Note
6.05% Due 04/03/95
(Cost $2,299,227) $ 2,299,227
------------
Total Investments (Cost $135,695,049) 99.6% 132,879,748
Other Assets, less Liabilities 0.4% 550,689
----- ------------
Net Assets 100.0% $133,430,437
===== ============
See Notes to Financial Statements
-39-
<PAGE>
ACTIVELY MANAGED BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $135,695,049) - Note 2 (A) $132,879,748
Cash 98,573
Receivable for investments sold 2,300,385
Receivable for units sold 89,818
Dividends and interest receivable 1,446,943
Other assets 35,938
------------
136,851,405
LIABILITIES:
Payable for investments purchased $3,300,018
Payable for units redeemed 11,332
Payable to investment manager 38,152
Accrued expenses 71,466 3,420,968
---------- ------------
NET ASSETS
at value, applicable
to 4,869,337 outstanding
units of beneficial interest - Note 5 $133,430,437
============
NET ASSET VALUE,
offering and redemption price per unit
($133,430,437 divided by 4,869,337 units) $ 27.40
============
See Notes to Financial Statements
-40-
<PAGE>
ACTIVELY MANAGED BOND FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Interest $4,484,380
----------
Total Income $4,484,380
Expenses:
Investment manager's fees - Note 3(A) 224,566
Shareholder servicing fees
and expenses - Note 3(B) 257,760
Custodian fees and expenses 22,662
Legal and auditing fees 8,609
Consultant fees 5,897
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 22,946
Other 8,434
----------
Total Expenses 561,513
----------
INVESTMENT INCOME - NET 3,922,867
REALIZED (LOSS) AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Net realized (loss) on investments (123,844)
Unrealized appreciation on investments 2,845,998
----------
NET REALIZED (LOSS) AND UNREALIZED
GAIN ON INVESTMENTS 2,722,154
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $6,645,021
==========
See Notes to Financial Statements
-41-
<PAGE>
ACTIVELY MANAGED BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
---------------- ----------
OPERATIONS:
Investment income - net $ 3,922,867 $ 7,643,139
Net realized gain (loss) on investments (123,844) 297,408
Unrealized appreciation (depreciation)
on investments 2,845,998 (14,855,294)
------------ ------------
Net increase (decrease) in
net assets resulting
from operations 6,645,021 (6,914,747)
------------ ------------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 8,045,527 23,323,590
Value of units redeemed (17,470,563) (27,116,813)
------------ ------------
Net (decrease) in
net assets resulting
from capital transactions (9,425,036) (3,793,223)
------------ ------------
Net (decrease) (2,780,015) (10,707,970)
NET ASSETS at beginning of period 136,210,452 146,918,422
------------ ------------
NET ASSETS at end of period $133,430,437 $136,210,452
============ ============
See Notes to Financial Statements
-42-
<PAGE>
Intermediate-Term Bond Fund
Statement of Investments
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
--------- -----------
CORPORATE BONDS 11.8%
BEVERAGES
$1,500,000 Pepsico Inc.
7.625% DUE 12/18/1998 $ 1,522,500
-----------
OIL
4,000,000 Atlantic Richfield Company
10.375% DUE 07/15/1995 4,041,860
1,000,000 Standard Oil Of Ohio Debenture
6.30% DUE 7/01/2001 931,603
-----------
TELECOMMUNICATIONS
2,500,000 General Telephone Of California
6.75% DUE 12/01/1997 2,462,298
-----------
UTILITIES
1,500,000 New Jersey Bell Tel Deb
4.875% DUE 11/1/2000 1,320,120
-----------
Total Corporate Bonds (Cost $10,323,379) $10,278,381
-----------
MORTGAGE AND ASSET BACKED SECURITIES 0.1%
$675 VA & FHA Mortgages 5.25%
MAT. 02/20/2020 5.250%
(Cost $592) $ 675
-----------
UNITED STATES GOVERNMENT
AND AGENCY OBLIGATIONS 86.2%
$1,500,000 Fed. Home Loan Bank Notes
6.72% DUE 6/9/1997 $ 1,490,235
1,000,000 Fed. Home Loan Mort. Corp
7.29% DUE 4/7/2004 966,785
See Notes to Financial Statements
-43-
<PAGE>
Principal
Amount Value
--------- -----------
$1,000,000 Federal Home Loan Mortgage Corp. Gold Remic
7% DUE 11/15/2005 1331H $ 977,329
4,146,667 Federal Home Loan Mortgage Corp. Gold Remic 1278G
7.00% DUE 11/15/2020 4,020,687
1,000,000 Federal Home Loan Mortgage Corp. Gold Remic Series
7.00% DUE 6/15/2001 1324VC 970,539
1,000,000 Federal Home Loan Mtge. Corp. CMO 1534 F
6.00% DUE 04/15/2020 902,249
1,000,000 Federal National Mortgage Asso CMO G93-8Pg
6.50% DUE 7/25/2018 920,349
1,500,000 Federal National Mortgage Association Remic
7.00% DUE 7/25/2005 1992-9G 1,470,044
1,000,000 Federal National Mtge. Assoc. CMO G93-3G
6.00% DUE 06/25/2018 900,589
1,000,000 FHLB Note (Cpn Stepsup Every 6Mo)
5.50% DUE 4/25/1997 984,648
1,482,080 FHLMC 157 Remic CMO
8.75% DUE 07/15/2000 1,471,348
1,500,000 FHLMC Cmo 1489G
5.85% DUE 10/15/2006 1,365,404
2,000,000 FHLMC Note
7.05% DUE 1/29/2003 1,915,326
142,601 FHLMC Pool #140536
5.00% DUE 10/01/1996 138,798
30,763 FHLMC Pool #200030
9.00% DUE 03/01/2001 31,322
85,936 FHLMC Pool #200034
8.50% DUE 05/01/2001 86,837
39,936 FHLMC Pool #200035
9.00% DUE 05/01/2001 40,661
149,818 FHLMC Pool #200040
9.00% DUE 06/01/2001 152,539
125,891 FHLMC Pool #200070
7.50% DUE 04/01/2002 124,063
207,085 FHLMC Pool #200071
7.50% DUE 05/01/2002 204,078
222,215 FHLMC Pool #212242
7.50% DUE 07/01/2001 219,388
80,077 FHLMC Pool #212719
7.50% DUE 08/01/2001 79,058
324,667 FHLMC Pool #213857
7.50% DUE 11/01/2001 320,537
40,358 FHLMC Pool #214040
7.50% DUE 12/01/2001 39,845
See Notes to Financial Statements
-44-
<PAGE>
Principal
Amount Value
--------- -----------
$ 433,258 FHLMC Pool #251478
7.00% DUE 12/01/1998 $ 428,639
33,215 FHLMC Pool #297945
7.50% DUE 05/01/1997 31,855
162,303 FHLMC Pool #309883
7.00% DUE 09/01/1998 160,998
166,226 FHLMC Pool #320139
8.00% DUE 09/01/2001 166,347
1,354,739 FNMA Cmo 1991-19G
7% DUE 02/25/2019 1,346,826
2,000,000 FNMA Cmo 1993-162C
3.00% DUE 8/25/2023 1,639,398
1,489,558 FNMA Cmo 93-244A
0% DUE 11/25/2023 1,334,404
2,000,000 FNMA Cmo G93-27Ae
6.00% DUE 11/25/2019 1,766,018
1,450,640 FNMA Cmo G93-35A
2.50% DUE 3/25/2002 1,428,835
1,000,000 FNMA Note
7.00% DUE 8/12/2002 959,474
909,198 FNMA Pass Thru Pool #050987
6.50% DUE 2/1/2009 862,719
5,704 FNMA Pool #31435
8.50% DUE 08/01/2001 5,822
2,739 FNMA Pool #24179
9.00% DUE 04/01/2001 2,814
67,727 FNMA Pool #26607
9.00% DUE 05/01/2001 69,572
40,182 FNMA Pool #26707
9.00% DUE 05/01/2001 41,277
135,435 FNMA Pool #28645
9.00% DUE 06/01/2001 139,125
277,128 FNMA Pool #28785
9.00% DUE 06/01/2001 284,679
56,854 FNMA Pool #29470
9.00% DUE 07/01/2001 58,403
15,842 FNMA Pool #29658
8.50% DUE 07/01/2001 16,170
119,957 FNMA Pool #30409
8.50% DUE 09/01/2001 122,440
12,597 FNMA Pool #31393
8.50% DUE 08/01/2001 12,858
208,593 FNMA Pool #46609
8.00% DUE 05/01/2002 209,995
See Notes to Financial Statements
-45-
<PAGE>
Principal
Amount Value
--------- -----------
$ 364,873 FNMA Pool #46872
8.00% DUE 05/01/2002 $ 367,266
31,988 FNMA Pool #47137
8.00% DUE 05/01/2002 32,203
185,391 FNMA Pool #47402
8.00% DUE 05/01/2002 186,637
223,584 FNMA Pool #47932
8.00% DUE 05/01/2002 225,086
168,015 FNMA Pool #48103
8.00% DUE 05/01/2002 169,144
59,177 FNMA Pool #7242
8.50% DUE 07/01/2001 60,402
1,870,710 FNMA Pool #82407
9.00% DUE 3/1/2004 1,929,018
623,710 FNMA Pool #87277
7.50% DUE 4/1/2018 615,645
2,000,000 FNMA, Mtn
7.46% DUE 9/30/1999 2,002,985
1,500,000 United States Treasury Notes
3.875% DUE 10/31/1995 1,479,843
10,000 United States Treasury Bonds
3.50% DUE 11/15/1998 9,088
10,000,000 United States Treasury Notes
7.875% DUE 11/15/1999 10,306,250
9,875,000 United States Treasury Notes
8.875% DUE 11/15/1997 10,334,790
3,000,000 United States Treasury Stripped Coupons
DUE 2/15/2000 2,138,787
11,000,000 United States Treasury Stripped Coupons
0% COUPON DUE 2/15/1998 9,043,859
4,000,000 United States Treasury Stripped Coupons
0% COUPON DUE 2/15/1999 3,058,036
4,000,000 United States Treasury Stripped Coupons
0% COUPON DUE 8/15/2002 2,369,876
-----------
Total United States Government and Agency
Obligations (Cost $74,703,665) $75,210,241
===========
See Notes to Financial Statements
-46-
<PAGE>
Principal
Amount Value
--------- -----------
SHORT-TERM INVESTMENTS 1.7%
UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS
$1,400,000 FNMA Discount Note
6.05% Due 4/3/1995
(Cost $1,399,529) $ 1,399,529
-----------
Total Investments (Cost $86,427,165) 99.6% $86,888,826
Other Assets, less Liabilities 0.4% 379,286
----- -----------
Net Assets 100.0% $87,268,112
===== ===========
See Notes to Financial Statements
-47-
<PAGE>
INTERMEDIATE-TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $86,427,165) - Note 2(A) $86,888,826
Cash 133,958
Receivable for investments sold 1,420,235
Receivable for units sold 111,073
Dividends and interest receivable 1,196,945
Other assets 8,076
-----------
89,759,113
LIABILITIES:
Payable for investments purchased $ 2,400,472
Payable for units redeemed 4,684
Payable to investment manager 26,378
Accrued expenses 59,467 2,491,001
----------- -----------
NET ASSETS
at value, applicable
to 3,307,498 outstanding
units of beneficial interest - Note 5 $87,268,112
===========
NET ASSET VALUE,
offering and redemption price per unit
($87,268,112 divided by 3,307,498 units) $ 26.38
===========
See Notes to Financial Statements
-48-
<PAGE>
INTERMEDIATE-TERM BOND FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Interest $3,096,229
----------
Total Income $3,096,229
Expenses:
Investment manager's fees - Note 3(A) 155,578
Shareholder servicing fees
and expenses - Note 3(B) 205,441
Custodian fees and expenses 19,178
Legal and auditing fees 7,362
Consultant fees 5,897
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 14,413
Other 8,449
----------
Total Expenses 426,957
----------
INVESTMENT INCOME - NET 2,669,272
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Net realized gain on investments 76,948
Unrealized appreciation on investments 533,953
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 610,901
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $3,280,173
==========
See Notes to Financial Statements
-49-
<PAGE>
INTERMEDIATE-TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
---------------- ----------
OPERATIONS:
Investment income - net $ 2,669,272 $ 5,400,952
Net realized gain on investments 76,948 671,412
Unrealized (depreciation)
on investments 533,953 (8,152,248)
----------- -----------
Net increase (decrease) in
net assets resulting
from operations 3,280,173 (2,079,884)
----------- -----------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 5,862,304 16,644,193
Value of units redeemed (11,653,987) (22,599,674)
----------- -----------
Net (decrease) in
net assets resulting
from capital transactions (5,791,683) (5,955,481)
----------- -----------
Net (decrease) (2,511,510) (8,035,365)
NET ASSETS at beginning of period 89,779,622 97,814,987
----------- -----------
NET ASSETS at end of period $87,268,112 $89,779,622
=========== ===========
See Notes to Financial Statements
- 50 -
<PAGE>
Short Term Investment Fund
Statement of Investments
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
--------- -----------
UNITED STATES GOVERNMENT 84.2%
AND AGENCY OBLIGATIONS
$565,000 Federal Home Loan Bank
4.36% Due 4/25/1996 $550,866
600,000 Federal Home Loan Mtge Corp.
4.40% Due 3/11/1996 587,512
500,000 Federal National Mortgage Assn.
6.20% Due 1/10/1997 493,546
500,000 FHLB (Cpn Steps Up Every Qtr)
6.25% Due 3/13/1996 498,899
500,000 FHLB Discount Note
6.18% Due 11/6/1995 481,434
750,000 FHLB Discount Note
6.22% Due 11/17/1995 720,740
1,000,000 FHLMC Discount Note
5.92% Due 4/18/1995 997,204
495,000 FHLMC Discount Note
5.95% Due 5/9/1995 491,890
425,000 FHLMC Discount Note
5.95% Due 6/1/1995 420,813
1,500,000 FHLMC Discount Note
5.90% Due 4/14/1995 1,496,804
500,000 FNMA Discount Note
5.97% Due 6/20/1995 493,488
500,000 FNMA Discount Note
5.97% Due 6/7/1995 494,574
1,000,000 FNMA Discount Note
5.98% Due 6/30/1995 985,308
15,400,000 FNMA Discount Note
6.05% Due 4/3/1995 15,394,826
1,100,000 U. S. Treasury Notes
3.875% Due 10/31/1995 1,085,217
-----------
Total United States Government and Agency
Obligations (Cost $25,202,392) $25,193,121
-----------
See Notes to Financial Statements
-51-
<PAGE>
Principal
Amount Value
--------- -----------
COMMERCIAL PAPER 11.6%
$1,500,000 Chevron Oil Finance Corp.
5.98% Due 4/17/1995 $ 1,496,013
500,000 Ford Motor Credit Corp.
6.03% Due 4/11/1995 499,163
1,500,000 General Electric Capital Corp.
6.04% Due 5/8/1995 1,490,688
------------
Total Commercial Paper (Cost $3,485,864) $ 3,485,864
------------
CORPORATE NOTES 3.3%
$500,000 Morgan Guaranty Trust Co. Of NY
Floating Rate Note Due 5/10/1995 $ 499,979
500,000 Morgan Guaranty Trust Co. Of NY
Floating Rate Note Due 4/18/1995 499,994
-----------
Total Corporate Notes
(Cost $999,973) $ 999,973
-----------
Total Investments (Cost $29,688,229) 99.2% 29,678,958
Other Assets, less Liabilities 0.8% 248,726
----- -----------
Net Assets 100.0% $29,927,684
===== ===========
See Notes to Financial Statements
-52-
<PAGE>
SHORT-TERM INVESTMENT FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investments in securities at value
(Cost $29,688,229) - Note 2(A) $29,678,958
Cash 117,175
Receivable for investments sold 15,402,580
Receivable for units sold 151,641
Dividends and interest receivable 95,134
Other assets 1,865
-----------
45,447,353
LIABILITIES:
Payable for investments purchased $15,392,236
Payable for units redeemed 86,530
Payable to investment manager 6,283
Accrued expenses 34,620 15,519,669
----------- -----------
NET ASSETS
at value, applicable
to 1,591,225 outstanding
units of beneficial interest
- Note 5 $29,927,684
===========
NET ASSET VALUE,
offering and redemption price per unit
($29,927,684 divided by 1,591,225 units) $ 18.81
===========
See Notes to Financial Statements
-53-
<PAGE>
SHORT-TERM INVESTMENT FUND
STATEMENT OF OPERATIONS
Six Months Ended March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Income:
Interest $819,590
--------
Total Income $819,590
Expenses:
Investment manager's fees - Note 3(A) 37,183
Shareholder servicing fees
and expenses - Note 3(B) 86,831
Custodian fees and expenses 10,230
Legal and auditing fees 6,614
Consultant fees 4,006
Trustees' fees and expenses - Note 3(D) 10,639
Insurance Premiums 2,554
Other 8,423
--------
Total Expenses 166,480
Less expense reimbursement - Note 3 (47,514)
--------
Net Expenses 118,966
-------
INVESTMENT INCOME - NET 700,624
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS - Note 4:
Realized appreciation on investments 0
Unrealized appreciation on investments 12,757
--------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS 12,757
-------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $713,381
========
See Notes to Financial Statements
-54-
<PAGE>
SHORT-TERM INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Six Months Ended
3/31/95 Year Ended
(Unaudited) 9/30/94
---------------- ----------
OPERATIONS:
Investment income - net $ 700,624 $ 921,400
Net realized gain (loss) on investments 0 (430)
Unrealized (depreciation)
on investments 12,757 (5,788)
----------- -----------
Net increase in
net assets resulting
from operations 713,381 915,182
----------- -----------
CAPITAL TRANSACTIONS - Note 5:
Value of units sold 6,302,679 10,882,572
Value of units redeemed (7,062,886) (16,939,920)
----------- -----------
Net (decrease) in
net assets resulting
from capital transactions (760,207) (6,057,348)
----------- -----------
Net (decrease) (46,826) (5,142,166)
NET ASSETS at beginning of period 29,974,510 35,116,676
----------- -----------
NET ASSETS at end of period $29,927,684 $29,974,510
=========== ===========
See Notes to Financial Statements
-55-
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - GENERAL
Participation in RSI Retirement Trust ("RSI") is limited to IRA's and
trusts established by eligible employers, which include banks, savings banks,
credit unions, savings and loan associations and other organizations determined
by the Trustees of RSI to have business interests in common with organizations
participating in RSI. Such trusts are exempt from taxation under Section 501(a)
of the Internal Revenue Code ("Code") and have been established under pension or
profit sharing plans which are qualified under Section 401 of the Code
("Participating Plans").
In order to provide investment products to Participating Plans, RSI
operates, pursuant to an Agreement and Declaration of Trust amended effective as
of August 31, 1984 ("Trust Agreement"), as a series fund currently issuing as of
March 31, 1995 seven classes of units of beneficial interest: Core Equity Fund,
Emerging Growth Equity Fund, Value Equity Fund, International Equity Fund,
Actively Managed Bond Fund, Intermediate-Term Bond Fund and Short-Term
Investment Fund ("Investment Funds"). The Trust Agreement was amended in 1984 to
provide for the continued operation of RSI as an open-end management investment
company under the Investment Company Act of 1940 ("Act"). Retirement System
Distributors Inc. ("Distributors") acts as the distributor of the Investment
Funds' units of beneficial interest. The Distributor is a wholly owned
subsidiary of Retirement System Group Inc ("Group").
On April 24, 1992, the remaining unitholders of RSI's Dedicated Bond Fund
sold their units and the proceeds were used to purchase units in other RSI
fixed-income funds. The Dedicated Bond Fund has been inactive subsequent to this
date, but may be reactivated again, should a number of clients elect to
"immunize" their retiree liabilities. The financial highlights of the Dedicated
Bond Fund are presented for each of the two years in the period ended September
30, 1991 and for the period from October 1, 1991 through April 24, 1992, the
date on which all of its units were redeemed.
The financial statements of the Investment Funds are presented on a
combined and individual basis. The combined financial statements should be read
in conjunction with the individual financial statements.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
(A) Securities Valuation: Except for debt securities with remaining maturities
of 60 days or less, investments for which market prices are available are
valued as follows:
(1) each listed security is valued at its closing price obtained from the
respective exchange on which the security is listed, or, if there were
no sales on that day, at its last reported closing or bid price. For
international securities other than those traded on Far East markets,
the last recorded prices at the close of business on the New York
Stock Exchange are used to price the holdings. For securities traded
in the Far East markets, the closing prices are used to value the
securities.
-56-
<PAGE>
(2) each unlisted security quoted on the NASDAQ is valued at the last
current bid price obtained from the NASDAQ;
(3) United States Government and agency obligations and certain other debt
obligations are valued based upon bid quotations from various market
makers for identical or similar obligations.
(4) Mortgage-backed securities and asset-backed securities are valued with
a cash flow model based on both the pre-payment assumptions (Public
Securities Association median) and the price-yield spreads over
comparable United States Treasury Securities.
(5) short-term money market instruments (such as certificates of deposit,
bankers' acceptances and commercial paper) are valued by bid
quotations or by reference to bid quotations of available yields for
similar instruments of issuers with similar credit rating.
Debt securities with remaining maturities of 60 days or less are
valued on the basis of amortized cost. In the absence of an
ascertainable market value, investments are valued at their fair value
as determined by the officers of RSI using methods and procedures
reviewed and approved by RSI's Trustees.
Investments and other assets and liabilities denominated in
foreign currencies are translated to US. dollars at the prevailing
rates of exchange. It is not practical to isolate that portion of
income arising from changes in the exchange rates from the portion
arising from changes in the market prices of securities.
(B) Securities Transactions and Investment Income: Securities transactions are
recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on a specific cost basis. Dividend income is
recognized on the ex-dividend date or when the dividend information is
known; interest income, including, where applicable, amortization of
discount and premium on investments and zero coupon bonds, is recognized on
an accrual basis.
The Investment Funds may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Investment Funds' Manager,
subject to the sellers' agreement to repurchase and the Funds' agreement to
resell such securities at a mutually agreed upon price. Securities purchased
subject to repurchase agreements are deposited with the Investment Funds'
custodian and, pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities falls
below the value of the repurchase price plus accrued interest, the Investment
Funds will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the seller
defaults on its repurchase obligation, the Investment Funds maintain the right
to sell the underlying securities at market value and may claim any resulting
loss against the seller.
-57-
<PAGE>
(C) Dividends to Unitholders: RSI does not normally declare nor pay dividends
on its net investment income or capital gains.
(D) Federal Income Taxes: RSI has received a determination letter from the
Internal Revenue Service stating that it is exempt from taxation under
Section 501(a) of the Internal Revenue Code with respect to funds derived
from Participating Plans which are pension or profit sharing trusts
maintained in conformity with Section 401 of the Code.
(E) Other: RSI accounts separately for the assets, liabilities and operations
of each Investment Fund. Expenses directly attributed to each Investment
Fund are charged to that Investment Fund's operations; expenses which are
applicable to all Investment Funds are allocated among them.
Administrative expenses incurred by RSI relating to the administration
of Plans of Participation are charged to Full Participating Employers (as
defined in the Trust Agreement) and are not included in the operation of
the Investment Funds.
The Investment Funds may enter into financial futures contracts which
require initial margin deposits of cash or U.S. Government securities equal
to approximately 10% of the value of the contract. During the period the
financial futures are open, changes in the value of the contracts are
recognized by "marking to market" on a daily basis to reflect the market
value of the contracts at the close of each day's trading. Accordingly,
variation margin payments are made or received to reflect daily unrealized
gains or losses. The Investment Fund is exposed to market risk as a result
of movements in securities, values and interest rates.
NOTE 3 - INVESTMENT MANAGERS' FEES AND OTHER TRANSACTIONS WITH AFFILIATES
(A) Retirement System Investors Inc. ("Investors") is the Investment Advisor
for each Investment Fund. Investors has retained sub-advisors to manage the
Value Equity Fund, the International Equity Fund, and the Emerging Growth
Equity Fund. Investors acts as Investment Manager to the remaining Trust
Investment Funds, and in the case of all Investment Funds, exercises
general oversight with respect to the portfolio management, including
reporting of manager performance to the Trustees and Investment Committee,
compliance matters, sub-advisory portfolio analysis, and presentations to
unitholders. Effective April 1, 1995, Investors became the investment
manager of the Value Equity Fund, replacing NFJ Investment Group.
Fees incurred by Investors pursuant to the provisions of its
investment management contracts are payable monthly to Investors and
quarterly to all sub-advisors and are computed based on the value of the
net assets of each Investment Fund determined on a monthly or quarterly
bases as appropriate at the rates listed in the following table. The
investment management fee schedule of NFJ Investment Group will also be
used by Investors for the Value Equity Fund.
-58-
<PAGE>
<TABLE>
Investment Fund Investment Manager Fee
---------------- ------------------ ---
<S> <C> <C>
Core Equity Fund Retirement System Investors Inc. .60% on first $50 million,
.50% on next $150 million
and .40% over $200 million
Value Equity Fund NFJ Investment Group, Inc. .60% on first $10 million,
(Sub-adviser through March 31, 1995) .50% on next $10 million,
.40% on next $20 million,
.30% on next $20 million,
.20% on next $40 million,
.15% on next $50 million
and .10% over $150 million
Emerging Growth Friess Associates, Inc.(Sub-adviser) 1.00%,
Equity Fund The Putnam Advisory Company, Inc. 1.00% on first $25 million
(Sub-adviser) and .75% over $25 million
International Morgan Grenfell Investment .60% on first $50 million
Equity Fund Services Limited (Sub-adviser) and .50% over $50 million
Actively Managed Retirement System Investors Inc. .40% on first $50 million,
Bond Fund .30% on next $100 million
and .20% over $150 million
Intermediate-Term Retirement System Investors Inc. .40% on first $50 million,
Bond Fund .30% on next $100 million
and .20% over $150 million
Short-Term Retirement System Investors Inc. .25 on first $50 million
Investment Fund and .20% over $50 million
</TABLE>
RSI's investment management agreement with Investors provides for RSI
to receive a management fee of 0.20% per annum of the average daily net
assets of the Investment Funds that employ a sub-advisor, currently the
Value Equity Fund (through March 31, 1995), the Emerging Growth Equity
Fund, and the International Equity Fund. For the period ended March 31,
1995, Investors has voluntarily waived a portion of its investment
manager's fee from the Short-Term Investment Fund amounting to $47,514, to
limit the Funds annual expenses to 0.80% of average net assets.
(B) Shareholder servicing fees and expenses for the period ended March 31, 1995
consist of fees paid to Retirement System Consultants Inc., (a subsidiary
of Group) under a contract for providing administrative services for the
Investment Funds. The fee arrangement applicable for each of the investment
funds is as follows:
Average Net Assets Fee
------------------ ---
First $25 million .60%
Next $25 million .50%
Next $25 million .40%
Next $25 million .30%
Over $100 million .20%
-59-
<PAGE>
(C) Each Trustee who is not an officer of RSI receives an annual fee of $7,000
and a fee of $800 per meeting attended, except that such fee is $400 for a
telephonic meeting. Such Trustees also participate in a deferred
compensation plan which permits each Trustee to defer payment of a portion
of their fees. A Trustee and several officers of RSI are also officers of
Group and its subsidiaries.
NOTE 4 - SECURITIES TRANSACTIONS
The following summarizes the securities transactions, other than short-term
securities, by the various Investment Funds for the period ended March 31, 1995:
Purchases Sales
----------- -----------
Core Equity Fund $ 3,389,034 $ 9,954,291
Value Equity Fund 9,777,008 6,351,096
Emerging Growth Equity Fund 33,867,551 32,456,228
International Equity Fund 5,238,214 5,098,092
Actively Managed Bond Fund 9,701,936 6,953,386
Intermediate-Term Bond Fund 8,237,553 2,694,052
----------- -----------
Total $70,211,296 $63,507,145
----------- -----------
Net unrealized appreciation (depreciation) consisting of gross unrealized
appreciation and gross unrealized depreciation at March 31, 1995 for each of the
Investment Funds was as follows:
Net Unrealized Gross Gross
Appreciation Unrealized Unrealized
(Depreciation) Appreciation Depreciation
------------- ------------ ------------
Core Equity Fund $59,139,492 $60,397,575 $ 1,258,083
Value Equity Fund 1,290,177 2,992,452 1,702,275
Emerging Growth Equity Fund 10,709,717 11,825,165 1,115,448
International Equity Fund 2,546,372 4,538,946 1,992,574
Actively Managed Bond Fund (2,815,301) 1,385,295 4,200,596
Intermediate-Term Bond Fund 461,661 1,548,394 1,086,733
Short-Term Investment Fund (9,271) 5,161 14,432
----------- ----------- -----------
Total $71,322,847 $82,692,988 $11,370,141
----------- ----------- -----------
As of March 31, 1995, the International Equity Fund had outstanding forward
currency contracts as set forth below. These contracts are reported in the
financial statements at the Fund's net (loss) of $686,531, which is the
difference between the forward foreign exchange rate at the dates of entry into
the contracts and the forward rates at March 31, 1995. Although these numbers
are included in the above table, the detail of the contracts follows:
Contracts to sell
-----------------
289,240,000 Japanese Yen for U.S $2,960,916 $(396,582)
216,700,000 Japanese Yen for U.S $2,304,094 (71,654)
5,200,000 French Francs for U.S. $848,736 (218,295)
---------
$(686,531)
=========
-60-
<PAGE>
The following summarizes the market value of securities that were on loan
to brokers and the value of securities and cash held as collateral for these
loans at March 31, 1995:
Value of
Securities Value of
Loaned Collateral
----------- -----------
Core Equity Fund $ 2,553,696 $ 2,605,995
Value Equity Fund 5,795,304 5,914,016
Emerging Growth Equity Fund 11,698,450 11,951,053
International Equity Fund 4,502,028 4,668,112
Actively Managed Bond Fund 33,909,812 34,779,300
----------- -----------
Total $58,459,290 $59,918,476
----------- -----------
These securities lending arrangements may result in significant credit
exposure in the event the counterparty to the transaction was unable to fulfill
its contractual obligations. In accordance with industry practice, the
securities lending agreements are generally collaterized by cash or securities
with a market value in excess of the Investment Funds obligation under the
contract. The Investment Funds attempt to minimize credit risk associated with
these activities by monitoring broker credit exposure and collateral values on a
daily basis and requiring additional collateral to be deposited with or returned
to the Investment Funds when deemed necessary.
At March 31, 1995, approximately $76,989,731, $122,423,734 and $25,441,846
(82.2%, 91.8% and 85.0% of net assets) of the Intermediate-Term Bond Fund, the
Actively Managed Bond Fund, and the Short-Term Investment Fund respectively are
in obligations of U.S. Government agencies. These securities are backed only by
the limited authority to borrow from the U.S. Government.
-61-
<PAGE>
NOTE 5 - CAPITAL TRANSACTIONS:
At March 31, 1995 there were an unlimited number of units of beneficial interest
authorized for each Investment Fund.
Transactions in the units of beneficial interest of each Investment Fund for the
period ended March 31, 1995 were as follows:
Core Equity Value
Fund Equity Fund
------------------------ ------------------------
Units Amount Units Amount
-------- ------------ -------- ------------
Units sold 383,041 $ 13,797,344 132,261 $ 3,548,430
Units redeemed (376,281) (13,673,560) (138,970) $ (3,763,327)
-------- ------------ -------- ------------
Net (decrease) 6,760 $ 123,784 (6,709) $ (214,897)
======== ============ ======== ============
Emerging Growth International
Equity Fund Equity Fund
------------------------ ------------------------
Units Amount Units Amount
-------- ------------ -------- ------------
Units sold 159,466 $ 5,855,264 77,788 $ 2,892,068
Units redeemed (130,153) (4,800,925) (73,807) (2,687,893)
-------- ------------ -------- ------------
Net (decrease) 29,313 $ 1,054,339 3,981 $ 204,175
======== ============ ======== ============
Actively Managed Intermediate-
Bond Fund Term Bond Fund
------------------------ ------------------------
Units Amount Units Amount
-------- ------------ -------- ------------
Units sold 307,241 $ 8,045,527 229,714 $ 5,862,304
Units redeemed (664,436) (17,470,563) (457,277) (11,653,987)
-------- ------------ -------- ------------
Net (decrease) (357,195) $ (9,425,036) (227,563) $ (5,791,683)
======== ============ ======== ============
Short-Term
Investment Fund
------------------------
Units Amount
-------- ------------
Units sold 339,876 $ 6,302,679
Units redeemed (380,918) (7,062,886)
-------- ------------
Net (decrease) (41,042) $ (760,207)
======== ============
-62-
<PAGE>
Transactions in the units of beneficial interest of each Investment Fund for the
year ended September 30, 1994 were as follows:
Core Equity Value
Fund Equity Fund
----------------------- -----------------------
Units Amount Units Amount
-------- ----------- -------- -----------
Units sold 570,998 $ 19,983,360 200,343 $ 5,263,921
Units redeemed (829,507) (29,085,529) (322,977) $(8,462,033)
---------- ------------ -------- ------------
Net (decrease) (258,509) $ (9,102,169) (122,634) $(3,198,112)
========== ============ ======== ============
Emerging Growth International
Equity Fund Equity Fund
----------------------- -----------------------
Units Amount Units Amount
-------- ----------- -------- -----------
Units sold 257,643 $ 9,029,724 247,306 $ 9,450,659
Units redeemed (509,133) (18,168,143) (128,010) (4,744,547)
---------- ------------ -------- ------------
Net (decrease) (251,490) $ (9,138,419) 119,296 $ 4,706,112
========== ============ ======== ============
Actively Managed Intermediate-
Bond Fund Term Bond Fund
----------------------- -----------------------
Units Amount Units Amount
-------- ----------- -------- -----------
Units sold 872,273 $ 23,323,590 645,351 $ 16,644,193
Units redeemed (1,001,418) (27,116,813) (879,421) (22,599,674)
---------- ------------ -------- ------------
Net (decrease) (129,145) $ (3,793,223) (234,070) $ (5,955,481)
========== ============ ======== ============
Short-Term
Investment Fund
-----------------------
Units Amount
-------- -----------
Units sold 601,384 $ 10,882,572
Units redeemed (938,462) (16,939,920)
---------- ------------
Net (decrease) (337,078) $ (6,057,348)
========== ============
-63-
<PAGE>
Net assets at March 31, 1995 are comprised as follows:
<TABLE>
<CAPTION>
Core Equity Value Equity Emerging Growth International
Fund Fund Fund Equity Fund
------------ ------------ --------------- -------------
<S> <C> <C> <C> <C>
Paid-in capital (deficit) $(22,049,694) $(20,572,419) $(13,628,487) $(1,042,283)
Accumulated
income (loss) 40,699,615 16,413,024 (10,606) (1,507,506)
Accumulated
realized gain 74,760,446 40,180,790 57,689,580 27,180,279
Unrealized appreciation 59,139,492 1,290,177 10,709,717 2,546,372
------------ ------------ ------------ -----------
Net Assets $152,549,859 $ 37,311,572 $ 54,760,204 $27,176,862
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Actively Managed Intermediate-Term Short-Term
Bond Fund Bond Fund Investment Fund
---------------- ----------------- ---------------
<S> <C> <C> <C>
Paid-in capital (deficit) $(31,056,623) $(37,511,487) $(9,055,670)
Accumulated income 134,570,314 110,613,866 37,662,712
Accumulated
realized gain (loss) 32,732,047 13,704,072 1,329,913
Unrealized appreciation
(depreciation) (2,815,301) 461,661 (9,271)
------------ ------------ ------------
Net Assets $133,430,437 $ 87,268,112 $ 29,927,684
============ ============ ============
</TABLE>
-64-
<PAGE>
NOTE 6 - FINANCIAL HIGHLIGHTS (Unaudited)
<TABLE>
<CAPTION>
CORE EQUITY FUND
-------------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
-------- -------- -------- -------- -------- --------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 35.57 $ 34.49 $ 30.09 $ 27.68 $ 23.15 $ 24.41
-------- -------- -------- -------- -------- --------
Net Income from Investment Operations:
Investment Income - net 0.32 0.54 0.56 0.65 0.75 0.85
Net realized and unrealized
gain (loss) on investments 2.38 0.54 3.84 1.76 3.78 (1.90)
-------- -------- -------- -------- -------- --------
Total from Investment Operations 2.70 1.08 4.40 2.41 4.53 (1.05)
-------- -------- -------- -------- -------- --------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.07)
Paid-in capital - - - - - (0.14)
-------- -------- -------- -------- -------- --------
Total distributions: - - - - - (0.21)
-------- -------- -------- -------- -------- --------
Net increase (decrease) 2.70 1.08 4.40 2.41 4.53 (1.26)
Net Asset Value, End of period $ 38.27 $ 35.57 $ 34.49 $ 30.09 $ 27.68 $ 23.15
======= ======= ======= ======= ======= =======
Total Return 7.59% 3.13% 14.62% 8.71% 19.57% (4.41)%
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (1.00)% (1.01)% (0.99)% (0.95)% (0.94)% (0.64)%
----- ----- ----- ----- ----- -----
Investment income - net 1.80% 1.56% 1.74% 2.25% 2.88% 3.41%
==== ==== ==== ==== ==== ====
Portfolio Turnover Rate 2.54% 6.47% 13.41% 18.94% 18.88% 10.71%
Net Assets at End of period ($1,000's) $152,550 $141,544 $146,137 $134,269 $158,578 $136,539
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-65-
<PAGE>
<TABLE>
<CAPTION>
VALUE EQUITY FUND
-------------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
------- ------- ------- ------- ------- -------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 27.05 $ 26.48 $ 22.94 $ 21.48 $ 15.89 $ 21.11
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Investment Income - net 0.47 0.79 0.70 0.52 0.45 0.38
Net realized and unrealized
gain (loss) on investments 0.97 (0.22) 2.84 0.94 5.14 (5.44)
------- ------- ------- ------- ------- -------
Total from Investment Operations 1.44 0.57 3.54 1.46 5.59 (5.06)
Less Distributions:
Net Realized Gain on Investments - - - - - (0.05)
Paid-in capital - - - - - (0.11)
------- ------- ------- ------- ------- -------
Total distributions: - - - - - (0.16)
------- ------- ------- ------- ------- -------
Net increase (decrease) 1.44 0.57 3.54 1.46 5.59 (5.22)
Net Asset Value, End of period $ 28.49 $ 27.05 $ 26.48 $ 22.94 $ 21.48 $ 15.89
======= ======= ======= ======= ======= =======
Total Return 5.32% 2.15% 15.43% 6.80% 35.18% (24.13)%
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (1.46)% (1.41)% (1.70)% (1.55)% (1.56)% (1.74)%
----- ----- ----- ----- ----- -----
Investment income - net 3.48 % 3.02 % 2.83 % 2.32 % 2.30 % 1.98 %
===== ===== ===== ===== ===== =====
Portfolio Turnover Rate 18.76 % 40.41 % 54.46 % 14.26 % 23.55 % 45.04 %
Net Assets at End of period ($1,000's) $37,312 $35,603 $38,104 $33,417 $37,955 $30,636
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-66-
<PAGE>
<TABLE>
<CAPTION>
EMERGING GROWTH EQUITY FUND
--------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
------- ------- ------- ------- ------- -------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 35.96 $ 35.52 $ 24.26 $ 23.34 $ 14.97 $ 19.36
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Investment Income (loss) - net (0.30) (0.57) (0.53) (0.35) (0.23) 0.01
Net realized and unrealized
gain (loss) on investments 4.24 1.01 11.79 1.27 8.60 (4.24)
------- ------- ------- ------- ------- -------
Total from Investment Operations 3.94 0.44 11.26 0.92 8.37 (4.23)
------- ------- ------- ------- ------- -------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.05)
Paid-in capital - - - - - (0.11)
------- ------- ------- ------- ------- -------
Total distributions: - - - - - (0.16)
------- ------- ------- ------- ------- -------
Net increase (decrease) 3.94 0.44 11.26 0.92 8.37 (4.39)
Net Asset Value, End of period $ 39.90 $ 35.96 $ 35.52 $ 24.26 $ 23.34 $ 14.97
======= ======= ======= ======= ======= =======
Total Return 10.96 % 1.24 % 46.41 % 3.94 % 55.91 % (22.06)%
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (2.16)% (2.08)% (2.27)% (2.18)% (2.27)% (2.46)%
----- ----- ----- ----- ----- -----
Investment income - net (1.60)% (1.64)% (1.78)% (1.43)% (1.19)% 0.07 %
===== ===== ===== ===== ===== =====
Portfolio Turnover Rate 66.49 % 114.15 % 145.59 % 135.45 % 101.10 % 167.90 %
Net Assets at End of period ($1,000's) $54,760 $48,293 $56,645 $40,844 $46,283 $32,560
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-67-
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
------- ------- ------- ------- ------- -------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 38.08 $ 34.36 $ 28.27 $ 29.26 $ 25.31 $ 30.03
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Investment Income (loss) - net (0.06) (0.09) (0.21) (0.16) 0.15 (0.31)
Net realized and unrealized
gain (loss) on investments (2.11) 3.81 6.30 (0.83) 3.80 (4.16)
------- ------- ------- ------- ------- -------
Total from Investment Operations (2.17) 3.72 6.09 (0.99) 3.95 (4.47)
------- ------- ------- ------- ------- -------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.08)
Paid-in capital - - - - - (0.17)
------- ------- ------- ------- ------- -------
Total distributions: - - - - - (0.25)
------- ------- ------- ------- ------- -------
Net increase (decrease) (2.17) 3.72 6.09 (0.99) 3.95 (4.72)
Net Asset Value, End of period $ 35.91 $ 38.08 $ 34.36 $ 28.27 $ 29.26 $ 25.31
======= ======= ======= ======= ======= =======
Total Return (5.70)% 10.83 % 21.54 % (3.38)% 15.61 % (15.05)%
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (1.97)% (1.96)% (2.83)% (2.69)% (2.58)% (2.64)%
----- ----- ----- ----- ----- -----
Investment income - net (0.32)% (0.25)% (0.68)% (0.50)% 0.54 % (1.06)%
===== ===== ===== ===== ==== =====
Portfolio Turnover Rate 18.16 % 44.25 % 55.02 % 52.58 % 65.55 % 84.61 %
Net Assets at End of period ($1,000's) $27,177 $28,672 $21,769 $18,997 $22,677 $21,691
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-68-
<PAGE>
<TABLE>
<CAPTION>
ACTIVELY MANAGED BOND FUND
---------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
-------- -------- -------- -------- -------- --------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 26.06 $ 27.43 $ 24.57 $ 21.74 $ 18.44 $ 17.72
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Investment Income - net 0.78 1.47 1.23 1.54 1.51 1.44
Net realized and unrealized
gain (loss) on investments 0.56 (2.84) 1.63 1.29 1.79 (0.57)
-------- -------- -------- -------- -------- --------
Total from Investment Operations 1.34 (1.37) 2.86 2.83 3.30 0.87
-------- -------- -------- -------- -------- --------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.05)
Paid-in capital - - - - - (0.10)
-------- -------- -------- -------- -------- --------
Total distributions: - - - - - (0.15)
-------- -------- -------- -------- -------- --------
Net increase 1.34 (1.37) 2.86 2.83 3.30 0.72
Net Asset Value, End of period $ 27.40 $ 26.06 $ 27.43 $ 24.57 $ 21.74 $ 18.44
======== ======== ======== ======== ======== ========
Total Return 5.14 % (4.99)% 11.64 % 13.02 % 17.90 % 4.88 %
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (0.84)% (0.82)% (0.87)% (0.84)% (0.84)% (0.83)%
----- ----- ----- ----- ----- -----
Investment income - net 5.88 % 5.51 % 5.22 % 6.87 % 7.56 % 7.64 %
===== ===== ===== ===== ===== =====
Portfolio Turnover Rate 5.62 % 8.54 % 170.16 % 132.97 % 125.32 % 162.70 %
Net Assets at End of period ($1,000's) $133,430 $136,210 $146,918 $189,827 $197,573 $180,269
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-69-
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE-TERM BOND FUND
--------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
------- ------- ------- -------- -------- --------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 25.40 $ 25.95 $ 24.20 $ 21.72 $ 19.10 $ 17.73
------- ------- ------- -------- -------- --------
Income from Investment Operations:
Investment Income - net 0.81 1.46 1.48 1.55 1.46 1.44
Net realized and unrealized
gain (loss) on investments 0.17 (2.01) 0.27 0.93 1.16 0.08
------- ------- ------- -------- -------- --------
Total from Investment Operations 0.98 (0.55) 1.75 2.48 2.62 1.52
------- ------- ------- -------- -------- --------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.05)
Paid-in capital - - - - - (0.10)
------- ------- ------- -------- -------- --------
Total distributions: - - - - - (0.15)
------- ------- ------- -------- -------- --------
Net increase 0.98 (0.55) 1.75 2.48 2.62 1.37
Net Asset Value, End of period $ 26.38 $ 25.40 $ 25.95 $ 24.20 $ 21.72 $ 19.10
======= ======= ======= ======== ======== ========
Total Return 3.86 % (2.12)% 7.23 % 11.42 % 13.72 % 8.58 %
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (0.98)% (0.95)% (1.07)% (0.98)% (0.98)% (0.64)%
----- ----- ----- ----- ----- -----
Investment income - net 6.12 % 5.68 % 5.95 % 6.78 % 7.21 % 7.81 %
===== ===== ===== ===== ===== =====
Portfolio Turnover Rate 3.48 % 17.92 % 12.39 % 24.86 % 43.70 % 20.56 %
Net Assets at End of period ($1,000's) $87,268 $89,780 $97,796 $117,107 $108,144 $111,544
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-70-
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT FUND
--------------------------------------------------------------------
Period Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
3/31/95 9/30/94 9/30/93 9/30/92 9/30/91 9/30/90
------- ------- ------- ------- ------- -------
Per Unit Operating Performance:*
(for a unit outstanding throughout the period)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period $ 18.36 $ 17.83 $ 17.43 $ 16.80 $ 15.79 $ 14.69
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Investment Income - net 0.44 0.53 0.43 0.64 0.99 1.14
Net realized and unrealized
gain (loss) on investments 0.01 0.00 (0.03) (0.01) 0.02 0.09
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.45 0.53 0.40 0.63 1.01 1.23
------- ------- ------- ------- ------- -------
Less Distributions:
Net Realized Gain on Investments - - - - - (0.04)
Paid-in capital - - - - - (0.09)
------- ------- ------- ------- ------- -------
Total distributions: - - - - - (0.13)
------- ------- ------- ------- ------- -------
Net increase 0.45 0.53 0.40 0.63 1.01 1.10
Net Asset Value, End of period $ 18.81 $ 18.36 $ 17.83 $ 17.43 $ 16.80 $ 15.79
======= ======= ======= ======= ======= =======
Total Return 2.45 % 2.97 % 2.29 % 3.75 % 6.40 % 8.34 %
Ratios/Supplemental Data
Ratios to Average Net Assets***
Expenses** (0.80)% (0.80)% (0.89)% (0.79)% (0.79)% (0.59)%
----- ----- ----- ----- ----- -----
Investment income - net 4.70 % 2.92 % 2.43 % 3.72 % 6.06 % 7.49 %
===== ===== ===== ===== ===== =====
Decrease in above expense ratio
due to fee waiver 0.32 % 0.32 % - % - % - % - %
Net Assets at End of period ($1,000's) $29,928 $29,975 $35,117 $34,911 $61,505 $62,481
</TABLE>
* Using average units basis.
** The August 1, 1990 reorganization of RSI externalized all employees and the
investment advisory, administrative and distribution services they had
performed into separate entities. Certain investment expenses previously
allocated among the series portfolios are now set by contract between RSI
and the new entities.
*** Annualized.
-71-
<PAGE>
OFFICERS
William Dannecker, President
James P. Coughlin, C.F.A., Senior Vice President
Stephen P. Pollak, Esq., Senior Vice President, Counsel and Secretary
John F. Meuser, Vice President and Treasurer
Durando J. Saccente, Vice President
Herbert Kuhl, Jr., C.F.A., First Vice President
Denise F. Roche, First Vice President
Deborah A. DaGiau, Second Vice President
Veronica A. Fisher, Second Vice President and Assistant Treasurer
Kim Vander Putten, Second Vice President
Heidi Viceconte, Second Vice President
CONSULTANTS
Actuarial--Towers Perrin
Investments--Hewitt Associates
INVESTMENT MANAGERS
Friess Associates, Inc.
Morgan Grenfell Investment Services Ltd.
The Putnam Advisory Company, Inc.
Retirement System Investors Inc.
CUSTODIANS
The Chase Manhattan Bank, N.A.
Custodial Trust Company
DISTRIBUTOR
Retirement System Distributors Inc.
INDEPENDENT AUDITORS
McGladrey & Pullen
-72-
<PAGE>
BOARD OF TRUSTEES
Herbert G. Chorbajian
Chairman and Chief Executive Officer
Albany Savings Bank, FSB
William Dannecker
President and Chief Executive Officer
Retirement System Group Inc., NY
Candace Cox
Vice President and Managing Director
NYNEX Asset Management Co., NY
Eugene C. Ecker
Pension and Group Insurance Consultant
Covington Hardee
Retired Chairman
The Lincoln Savings Bank, FSB, NY
Ralph L. Hodgkins, Jr.
Vice President
Peoples Heritage Bank
Portland, ME
Maurice E. Kinkade
Director of Development
Maplebrook School
President, KINCO Management
William G. Lillis
Real Estate Consultant
William L. Schrauth
President and Chief Executive Officer
The Savings Bank of Utica, NY
William E. Swan
President and Chief Executive Officer
Lockport Savings Bank, NY
Raymond L. Willis
Private Investments
-73-
