[RIGHTIME LOGO]
Rightime
Family Of Funds
The Rightime Fund
The Rightime Government Securities Fund
The Rightime Blue Chip Fund
The Rightime Social Awareness Fund
The Rightime MidCap Fund
Annual Report
October 31, 1997
[RIGHTIME LOGO]
Rightime
Family of Funds
Table of Contents
Letter to Shareholders 3
Portfolios
The Rightime Fund 5
The Rightime Government Securities Fund 7
The Rightime Blue Chip Fund 8
The Rightime Social Awareness Fund 18
The Rightime MidCap Fund 20
Financial Statements
Statement of Assets & Liabilities 28
Statement of Operations 30
Statement of Changes in Net Assets 32
Financial Highlights 34
Notes to Financial Statements
Notes & Schedules 36
Report of Independent Certified Public Accountants 41
Performance Comparisons
The Rightime Fund 42
The Rightime Government Securities Fund 44
The Rightime Blue Chip Fund 46
The Rightime Social Awareness Fund 48
The Rightime MidCap Fund 50
Officers and Directors 52
[RIGHTIME LOGO] 1997
Rightime Annual Report
Family of Funds THE RIGHTIME FUND, INC.
Dear Shareholder:
"Goldilocks and the Three Bears" is a story we all remember fondly.
And like all childhood fairy tales it has a happy ending. Many people
are calling the U.S. economy a "Goldilocks" economy. The data is
interpreted to mean that things are neither "too hot" nor "too cold."
In the end, this is used to rationalize paying a higher price for
stocks and then expecting that price to climb even higher. Throughout
much of the last seven years this has held true. However, let's not
overlook the likelihood that the people of Thailand and Malaysia,
probably also felt confident right up to the point where their
currencies and stock markets dropped in value by 40% each.
Of course, it's not prudent to compare the U.S. economy to that of the
"Asian Tigers." The factors underlying the Asian problems -- poor
banking, bad current account balances, etc. -- do not affect the U.S.
economy the same way. However, it is important to realize that the
investment world has very real risks. In fact, the more investors
disregard such risk, the more they are likely to be affected by it. We
at Rightime believe that the need for risk management is greatest when
it is perceived to be the least needed.
A look at the state of the U.S. stock market and economy throughout
1997 would seem to confirm investors euphoria. Unemployment is at
4.6%; a level not seen since the Nixon presidency. From an inflation
perspective, unemployment is at a level that most economists would
have found alarming until recently. However, Federal Reserve Chairman
Alan Greenspan has been reluctant to raise rates because of the lack
of inflationary pressures within the economy despite the tight job
market and upward pressures on wages. Productivity increases seem to
be countering the inflationary pressures.
Because the market perceives that a rise in the Federal Reserve Rate
is unlikely, bond yields have been declining since early April and
have traded below the 6% level on the 30-year Treasury. The low and
declining long rates have helped justify the P/E ratio of the S&P 500
of 23. As a result, the S&P 500 is at record levels as of early
December after climbing nearly 32% in a year. Additionally, the Lipper
Growth Fund Index is up over 25%.
Why is it that the Rightime Funds have trailed the market throughout
1997? Part of the answer is that much of the gains were achieved in a
relatively short period during the year. From April 15 through July
23, the S&P rose over 24%. In fact, the second quarter happened to be
the best performing quarter since 1991 for many mutual funds. Throughout
the time period of April 15 through July 23, Rightime maintained a
conservative position and did not participate in the upswing.
Why was Rightime bearish at a time when the market was going up? A
look at how Rightime manages money and how we strive to achieve our
risk reduction may be helpful. We have constructed a model that has
four general type of indicators:
[bullet] Fundamental (inflation & relative value indicators)
[bullet] Monetary (interest rate movement & liquidity measures)
[bullet] Market sentiment (emotions of investors)
[bullet] Market momentum
We have blended these indicators to form a model that when followed
since inception has provided market-like returns at half the risk
measured by beta.
The order in which the indicators are listed is typically the order in
which the market changes tend to occur. For example, fundamentals are
the first to show signs of a change. They are then followed by
monetary and then sentiment indicators. Lastly, the market loses
momentum. Our sell signal in April was triggered primarily by a quick
deterioration in market momentum. While the fundamentals and monetary
indicators were declining, they did not turn until later and did not
improve for some time. We did not re-enter the market until July 23 as
a result, and unfortunately missed much of the 1997 upswing. This type
of activity will tend to occur in riskier, potentially overvalued
markets. That is, the marketplace believes the fundamentals will
improve and buys stocks. Stock prices rally in response, before the
fundamentals support the move. This time the fundamentals finally
turned and improved. Our risk-averse nature kept us out of stocks and
behind the market for the year.
The year will be remembered for two other important events. The
technology sector was battered during the first months of the year.
This occurred while the large capitalization stocks of the S&P
retained their value. Since that time, technology stock prices have
oscillated based on investor sentiment and earnings. What has affected
investor sentiment and earnings has been this year's "Asian Flu." The
problems with much of Southeast Asia has caused concern for the
earnings prospects for large multi-nationals and technology stocks
which are dependent on exporting to that part of the world.
Additionally, the potential for these problems to leave Asia and
impact other marketplaces has caused some trepidation among investors.
This goes a long way to explaining what occurred on October 27, when
the Dow Jones Industrial Average dropped over 500 points only to
recover much of these losses in the next few days.
Where does all this leave us? As 1997 winds down, it will be
remembered as a disappointment in terms of missed opportunities.
However, we have preserved principal and that is our main goal. The
marketplace is still favorable but not without its dangers. At this
time, things do look positive and we remain fully invested in the
stock market. In a similar fashion we remain fully committed to our
modeling process and believe that the basic principles which have
worked since 1979 still work in 1997. That investing in a disciplined
manner over time, as we do, will lead to long-term success. Just as
"Goldilocks" and other bedtime stories helped you sleep well as a
child, our goal at Rightime is to help you rest easier while you
invest.
David J. Rights
President, Rightime Econometrics, Inc.
<TABLE>
<CAPTION>
[RIGHTIME LOGO]
October 31, 1997
Rightime
Family of Funds The Rightime Fund
Portfolio of Investments
Value
Shares (Note 1)
- ------------ ---------------
<S> <C> <C>
EQUITY FUNDS: (80.94%)
174,028 Acorn Fund $ 3,153,396
21 Alliance Quasar Fund 607
413,974 American Century Value Fund 3,249,696
73,978 Babson Value Fund 3,383,772
70,443 Baron Asset Fund 3,266,460
74,019 Brandywine Fund 2,470,023
15,245 Clipper Fund 1,269,880
123,504 Columbia Special Fund 2,739,307
67,982 Dreyfus Appreciation Fund 2,103,358
51,682 Dreyfus New Leaders Fund 2,512,249
47,111 Federated Growth Strategies Fund 1,485,884
49,588 Fidelity Fund 1,455,412
24,009 Fidelity Value Fund 1,458,308
50,726 IDS Growth "A" Fund 1,654,171
198,410 IDS New Dimension Fund "A" Fund 4,876,924
19,597 Janus Twenty Fund 688,820
8,643 Janus Venture Fund 508,563
59,296 Kemper Blue Chip "A" Fund 1,048,351
42,590 Kemper Dreman High Return "A"
Fund 1,369,699
14,484 Kemper Dreman Small Cap "A" Fund 317,913
93,732 Lexington Corporate Leaders Fund 1,472,529
16,768 Lindner Growth Fund 467,652
7,332 Mairs and Power Growth Fund 625,399
346,032 MAS Value Fund 6,681,869
77,154 MFS MIT "A" Fund 1,363,319
167,028 MFS Research "A" Fund 3,597,772
54,377 Mutual Beacon Class Z Fund 826,530
82,922 Neuberger & Berman Genesis Fund 1,380,648
46,231 Neuberger & Berman Guardian Fund 1,394,799
125,808 New England Value Fund 1,285,759
25,366 Nicholas II Fund 1,025,043
40,492 Nicholas Limited Edition Fund 1,107,037
45,562 Parkstone Small Cap "A" Fund 1,286,224
160,324 Pennsylvania Mutual Fund 1,418,871
149,427 Putnam Fund for Growth
& Income "A" Fund 3,120,041
285,319 Putnam Investors "A" Fund 3,341,091
169,241 Putnam OTC "A" Fund 2,702,776
116,018 Putnam Vista "A" Fund 1,417,743
357,095 Putnam Voyager "A" Fund 6,938,350
45,663 Seligman Capital Fund "A" Fund 885,867
101,149 Seligman Frontier "A" Fund 1,695,258
108,449 Stein Roe Capital Opportunities Fund 3,034,396
56,675 T. Rowe Price Equity Income Fund 1,487,147
52,452 T. Rowe Price MidCap Growth Fund 1,441,901
32,159 T. Rowe Price New America Fund 1,438,162
74,254 T. Rowe Price Small Cap Stock Fund 1,681,114
111,781 Vanguard US Growth Fund 3,151,117
115,818 Vanguard Windsor II Fund 3,400,418
161,373 William Blair Growth Fund 2,478,690
31,695 WPG Tudor Fund 828,827
------------
Total Equity Funds
(cost $86,915,760) 101,989,142
------------
MONEY MARKET FUNDS: (16.49%)
309,519 AIM Money Market Fund 309,519
143,977 Delaware Group Cash Reserve Fund 143,977
2,868,292 Fidelity U.S. Government
Reserves Fund 2,868,292
6,395,790 IDS Cash Management Prime Fund 6,395,790
2,303,586 Kemper Government Money
Market Fund 2,303,586
531,558 MAS Cash Reserve Fund 531,558
4,090,122 MFS Money Market Fund 4,090,122
1,022,667 New England Money Market Fund 1,022,667
1,334,634 Oppenheimer Money Market Fund 1,334,634
1,116,576 T. Rowe Price Prime Reserve Fund 1,116,576
657,094 Steinroe Cash Reserves Fund 657,094
2,000 Value Line Cash Fund 2,000
------------
Total Money Market Funds
(cost $20,775,815) 20,775,815
------------
<CAPTION>
Principal Value
Amount (Note 1)
- ------------ ---------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (2.86%)
Repurchase Agreement (1.29%)(b)
$ 1,632,000 Smith Barney Inc.
5.66%; 11/3/97 (cost $1,632,000;
maturity value $1,632,770) $ 1,632,000
------------
United States Treasury Bill (1.57%)(c)
2,000,000 5.13%; 1/22/98 (cost $1,976,584) 1,976,584
------------
Total Short-term Investments
(cost $3,608,584) 3,608,584
------------
Total Investments
(cost $111,300,159)(100.29%)(a) 126,373,541
Liabilities Less Other Assets (-0.29%) (371,734)
------------
Net Assets (100%) $126,001,807
============
(a) Aggregate cost for federal income tax purposes is $111,300,159.
At October 31, 1997 unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 15,371,601
Gross unrealized depreciation (298,219)
------------
Net unrealized appreciation $ 15,073,382
============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value
of $1,665,841 which exceeds the value of the repurchase agreement.
It is the Fund's policy to always receive, as collateral, securities
whose value, including accrued interest, will be at least equal to 102%
of the dollar amount to be paid to the Fund under each agreement at its
maturity. The value of the securities are monitored daily. If the value
falls below 101% of the amount to be paid at maturity, additional
collateral is obtained. The Fund makes payment for such securities only
upon physical delivery or evidence of book entry transferred to the
account of its custodian.
(c) At October 31, 1997, the market value of $1,976,584 of the U.S.
Treasury Bills were pledged to cover margin requirements for
futures contracts.
Futures contracts at October 31, 1997:
(Contracts-$500 times premium/delivery
month/commitment)
Unrealized
Depreciation
------------
S&P 500 Stock Index:
50/December/Buy $(496,250)
============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime
Family of Funds Government Securities Fund
Portfolio of Investments
Principal Value
Amount (Note 1)
- ------------ ---------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (82.42%)
$4,000,000 U.S. Treasury Bond 6.875%; 8/15/25 $ 4,341,320
1,000,000 U.S. Treasury Bond 9.25%; 2/15/16 1,331,380
1,000,000 U.S. Treasury Bond 6.375%; 8/15/27 1,029,800
------------
Total U.S. Government Obligations
(cost $6,195,000) 6,702,500
------------
SHORT-TERM INVESTMENTS (16.60%)
Repurchase Agreement (10.51%)(b)
855,000 Smith Barney
5.66%; 11/03/97 (cost $855,000;
maturity value $855,403) 855,000
------------
United States Treasury Bill (6.09%)(c)
500,000 5.09%; 1/15/98 (cost $494,813) 494,813
------------
Total Short-term Investments
(cost $1,349,813) 1,349,813
------------
Total Investments
(cost $7,544,813)(99.02%)(a) 8,052,313
Other Assets Less Liabilities (0.98%) 79,974
------------
Net Assets (100%) $ 8,132,287
============
(a) Aggregate cost for federal income tax purposes is $7,484,813. At
October 31, 1997 unrealized appreciation (depreciation) of securities
for federal income tax purposes is as follows:
Gross unrealized appreciation $ 507,500
Gross unrealized depreciation 0
------------
Net unrealized appreciation $ 507,500
============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$872,729 which exceeds the value of the repurchase agreement.
It is the Fund's policy to always receive, as collateral,
securities whose value, including accrued interest, will be at
least equal to 102% of the dollar amount to be paid to the Fund
under each agreement at its maturity. The value of the securities
are monitored daily. If the value falls below 101% of the amount
to be paid at maturity, additional collateral is obtained. The Fund
makes payment for such securities only upon physical delivery or
evidence of book entry transferred to the account of its custodian.
(c) At October 31, 1997, the market value of $494,813 of the U.S.
Treasury Bills were pledged to cover margin requirements for futures
contracts.
Futures contracts at October 31, 1997:
(Contracts-$1000 times premium/delivery
month/commitment)
Unrealized
Appreciation
-------------
U.S. Treasury Bonds:
13/December/Buy $ 59,031
============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime Blue Chip Fund
Family of Funds Portfolio of Investments
Value
Shares (Note 1)
- --------- ---------------
<S> <C> <C>
COMMON STOCK (91.90%)
INDUSTRIALS (69.13%)
Aerospace/Defense (1.60%)
34,319 Boeing Co. $ 1,643,022
2,278 General Dynamics Corp. 184,945
6,980 Lockheed Martin Corp. 663,536
1,902 Northrop Grumman Corp. 207,794
8,392 Raytheon Co. 455,266
6,520 Rockwell International Corp. 319,480
8,365 United Technologies Corp. 585,550
------------
4,059,593
------------
Aluminum (0.27%)
6,888 Alcan Aluminium Ltd. 196,738
5,304 Aluminum Co. of America 387,192
1,718 Reynolds Metals Co. 104,691
------------
688,621
------------
Automobiles (1.66%)
26,029 Chrysler Corp. 917,522
37,622 Ford Motor Co. 1,643,611
25,722 General Motors Corp. 1,651,031
------------
4,212,164
------------
Auto Parts After Market (0.27%)
3,102 Cooper Tire & Rubber Co. 65,723
1,949 Echlin, Inc. 63,830
6,624 Genuine Parts Co. 207,414
5,595 Goodyear Tire & Rubber Co. 350,387
------------
687,354
------------
Beverages (Alcoholic) (0.55%)
1,471 Adolph Coors Co. Class B 51,945
16,949 Anheuser-Busch Co., Inc. 676,901
3,094 Brown-Forman Corp. Class B 152,186
15,203 Seagram Co. Ltd. 512,151
------------
1,393,183
------------
Beverages (Soft Drinks) (2.65%)
84,315 Coca-Cola Co. 4,763,797
53,676 PepsiCo, Inc. 1,975,948
------------
6,739,745
------------
Broadcast Media (0.29%)
7,560 Comcast Corp. Class A Special 207,900
3,254 TCI Satellite Entertainment* 23,591
22,102 Tele-Communications, Inc.
Class A* 506,965
------------
738,456
------------
Building Materials (0.18%)
5,079 Masco Corp. 222,841
1,772 Owens Corning 60,691
6,394 Sherwin-Williams Co. 177,434
------------
460,966
------------
Chemicals (2.12%)
11,030 Applied Materials, Inc.* 368,126
4,429 Air Products & Chemicals, Inc. 336,604
9,883 Dow Chemical Co. 896,882
35,240 E.I. du Pont de Nemours & Co. 2,004,275
2,303 Goodrich (B.F.) Co. 102,627
3,420 Hercules, Inc. 156,892
19,900 Monsanto Co. 850,726
4,859 Praxair, Inc. 211,670
1,944 Rohm & Haas Co. 161,960
4,400 Solutia Inc.* 97,350
4,641 Union Carbide Corp. 212,036
------------
5,399,148
------------
Chemicals (Diversified) (0.35%)
3,817 Avery Dennison Corp. 151,964
5,081 Engelhard Corp. 88,282
1,469 FMC Corp.* 118,714
3,096 Mallinckrodt Inc. 116,100
7,165 PPG Industries, Inc. 405,718
------------
880,778
------------
Chemicals (Specialty) (0.27%)
2,502 Fresenious Medical Care-ADR 58,953
3,301 Grace (W.R.) & Co. 224,468
2,359 Great Lakes Chemical Corp. 110,873
5,658 Morton Int'l Inc. 186,714
2,339 Nalco Chemical Co. 93,560
------------
674,568
------------
Commercial Services (0.09%)
1,992 Ecolab, Inc. 94,744
1,740 National Service Industries, Inc. 76,995
1,206 Ogden Corp. 30,452
1,431 Safety-Kleen Corp. 31,661
------------
233,852
------------
Communication (Equipment/
Manufacturers) (1.32%)
3,023 Andrew Corp.* 70,096
6,573 Bay Networks 207,871
4,569 Cabletron Systems, Inc.* 132,501
19,370 Cisco Systems, Inc.* 1,588,946
3,910 DSC Communications Corp.* 95,306
4,694 Nextlevel Systems Inc.* 63,369
9,362 Northern Telecom Ltd. 839,654
2,484 Scientific-Atlanta, Inc. 46,109
5,702 Tellabs, Inc.* 307,908
------------
3,351,760
------------
Computer Software & Services (3.61%)
4,647 3 Com Corp.* 192,560
7,660 ALLTEL Corp. 270,972
1,526 Autodesk, Inc. 56,462
9,827 Automatic Data Processing, Inc. 502,405
12,183 Computer Associates
International, Inc. 908,395
1,952 Computer Sciences Corp.* 138,470
9,712 First Data Corp. 282,255
41,559 Microsoft Corp.* 5,402,670
12,421 Novell, Inc.* 104,802
33,139 Oracle Corp.* 1,185,755
860 Shared Medical Systems Corp. 47,085
5,524 Silicon Graphics, Inc.* 81,134
------------
9,172,965
------------
Computer Systems (2.65%)
4,043 Apple Computer, Inc. 68,857
24,543 COMPAQ Computer Corp. 1,564,611
1,732 Ceridian Corp.* 67,656
1,162 Data General Corp.* 22,369
4,152 Dell Computer* 332,679
5,135 Digital Equipment Corp.* 257,071
2,292 EMC Corp.* 128,352
1,653 Intergraph Corp.* 17,770
37,735 International Business
Machines Corp. 3,700,388
4,226 LSI Logic Corp. 92,180
1,992 Seagate Technology* 54,033
10,379 Sun Microsystems, Inc.* 355,481
6,271 Unisys Corp.* 83,483
------------
6,744,930
------------
Conglomerates (0.55%)
3,984 Allegheny Teledyne Inc. 104,829
6,812 Fortune Brands 225,222
3,443 ITT Industries, Inc. 108,669
3,800 ITT Hartford Group Inc. 307,800
6,578 Tenneco Inc. 295,599
6,294 Textron, Inc. 363,872
------------
1,405,991
------------
Containers (Metal & Glass) (0.08%)
1,077 Ball Corp. 37,695
3,478 Crown Cork & Seal Co., Inc.* 156,727
------------
194,422
------------
Containers (Paper) (0.09%)
1,913 Bemis Co., Inc. 72,933
3,345 Stone Container Corp.* 40,349
2,056 Temple-Inland Inc. 117,963
------------
231,245
------------
Cosmetics (0.71%)
2,290 Alberto-Culver Co. Class B 69,129
4,527 Avon Products, Inc. 296,518
13,997 Gillette Co. 1,246,608
4,076 International Flavors &
Fragrances, Inc. 197,177
------------
1,809,432
------------
Electrical Equipment (3.72%)
8,661 AMP, Inc. 389,745
1,564 Commscope Inc.* 17,204
15,134 Emerson Electric Co. 793,589
112,691 General Electric Co. 7,275,613
1,913 Grainger (W.W.), Inc. 167,268
4,224 Honeywell, Inc. 287,496
1,380 Raychem Corp. 124,976
1,442 Thomas & Betts Corp. 71,739
12,661 Westinghouse Electric Corp. 334,725
------------
9,462,355
------------
Electronics (Defense) (0.05%)
1,745 EG & G, Inc. 36,100
4,460 Loral Space &
Communications Ltd.* 93,660
------------
129,760
------------
Electronics (Instrumentation) (0.91%)
34,871 Hewlett-Packard Co. 2,151,105
1,465 Perkin-Elmer Corp. 91,563
1,331 Tektronix, Inc. 78,695
------------
2,321,363
------------
Electronics (Semiconductors) (2.65%)
3,929 Advanced Micro Devices, Inc.* 90,367
1,173 General Semiconductor Inc.* 13,343
56,142 Intel Corp. 4,322,934
7,082 Micron Technology Inc. 189,886
20,181 Motorola, Inc. 1,246,177
4,553 National Semiconductor Corp.* 163,908
6,605 Texas Instruments, Inc. 704,671
------------
6,731,286
------------
Engineering & Construction (0.07%)
3,164 Fluor Corp. 130,119
1,478 Foster Wheeler Corp. 48,497
------------
178,616
------------
Entertainment (0.72%)
1,156 King World Productions, Inc.* 54,621
21,453 Walt Disney Co. 1,764,509
------------
1,819,130
------------
Foods (2.21%)
24,028 Archer-Daniels-Midland Co. 534,629
5,164 CPC International, Inc. 511,236
6,799 Campbell Soup Co. 350,573
16,456 ConAgra, Inc. 495,737
5,573 Darden Restaurants Inc.* 63,393
5,727 General Mills, Inc. 377,982
12,734 H.J. Heinz Co. 591,335
5,643 Hershey Foods Corp. 311,776
14,854 Kellogg Co. 639,650
5,545 Quaker Oats Co. 265,467
3,587 Ralston-Purina Group 321,933
16,415 Sara Lee Corp. 839,217
4,253 Wrigley, (Wm.) Jr. Co. 307,811
------------
5,610,739
------------
Food Wholesalers (0.15%)
1,452 Fleming Cos., Inc. 24,503
2,508 SuperValu Inc. 91,855
6,634 Sysco Corp. 265,360
------------
381,718
------------
Gold Mining (0.33%)
12,354 Barrick Gold Corp. 254,029
7,049 Battle Mountain Gold Co. 43,175
4,194 Echo Bay Mines Ltd. 17,038
6,368 Freeport-McMoran 152,036
4,928 Homestake Mining Co. 60,984
5,048 Newmont Mining Corp. 176,680
8,020 Placer Dome Group, Inc. 124,310
------------
828,252
------------
Hardware & Tools (0.14%)
3,256 Black & Decker Corp.* 123,932
2,488 Snap-On Inc. 106,984
3,081 Stanley Works 130,172
------------
361,088
------------
Health Care (Diversified) (4.07%)
26,606 Abbott Laboratories, Inc. 1,631,280
22,072 American Home Products Corp. 1,636,087
33,750 Bristol-Myers Squibb Co. 2,961,562
44,192 Johnson & Johnson 2,535,516
6,053 United Healthcare Corp. 280,330
9,109 Warner-Lambert Co. 1,304,295
------------
10,349,070
------------
Health Care (Drugs) (4.29%)
136 Crescendo Pharm. 1,542
36,524 Lilly (Eli) & Co. 2,442,543
41,438 Merck & Co., Inc. 3,698,341
42,180 Pfizer, Inc. 2,984,235
10,814 Pharmacia & Upjohn, Inc. 343,344
25,727 Schering-Plough Corp. 1,442,320
------------
10,912,325
------------
Health Care (Miscellaneous) (0.16%)
2,727 ALZA Corp.* 71,073
2,634 Beverly Enterprises Inc.* 39,345
9,052 HEALTHSOUTH Corp.* 231,392
1,728 Manor Care Inc. 59,292
------------
401,102
------------
Heavy Duty Trucks & Parts (0.26%)
1,322 Cummins Engine Co., Inc. 80,559
3,170 Dana Corp. 148,396
2,778 Eaton Corp. 268,424
2,490 Navistar International Corp.* 57,737
2,478 PACCAR, Inc. 111,665
------------
666,781
------------
Hospital Management Companies (0.35%)
22,571 Columbia/HCA Healthcare Corp. 637,631
1,776 Humana, Inc.* 37,296
7,050 Tenet Healthcare Corp.* 215,465
------------
890,392
------------
Homebuilding (0.05%)
1,082 Centex Corp. 63,297
1,195 Kaufman & Broad Home Corp. 25,468
986 Pulte Corp. 36,852
------------
125,617
------------
Hotel/Motel (0.24%)
1,154 Choice Hotels Hldgs Inc.* 20,267
3,581 Harrah's Entertainment, Inc. 70,501
6,872 Hilton Hotels Corp. 211,744
4,183 Marriott International 291,764
385 Sunburst Hospitality* 3,895
------------
598,171
------------
Household Furnishings & Appliances (0.13%)
999 Armstrong World Industries, Inc. 66,496
3,556 Maytag Corp. 118,681
2,425 Whirlpool Corp. 147,016
------------
332,193
------------
Household Products (2.12%)
4,370 Clorox Co. 305,900
10,274 Colgate-Palmolive Co. 665,241
47,226 Procter & Gamble Co. 3,211,368
22,824 Unilever NV ADR 1,218,231
------------
5,400,740
------------
Housewares (0.20%)
6,443 Newell Co. 247,250
2,044 Premark International, Inc. 55,316
5,917 Rubbermaid, Inc. 142,378
2,518 Tupperware Corp. 63,107
------------
508,051
------------
Machinery (Diversified) (0.71%)
1,211 Briggs & Stratton Corp. 60,247
15,144 Caterpillar, Inc. 776,130
3,326 Cooper Industries, Inc. 173,368
8,886 Deere & Co. 467,626
1,526 Harnischfeger Industries Inc. 60,086
5,983 Ingersoll-Rand Co. 232,944
1,138 LucasVarity PLC-ADS 38,834
------------
1,809,235
------------
Manufacturing (Diversified Industries) (0.70%)
1,082 Aeroquip Vickers Inc. 56,332
2,035 Case Corp. 121,718
1,565 Crane Co. 65,045
3,620 Dover Corp. 244,350
487 Fleetwood Enterprises, Inc. 14,762
6,712 Illinois Tool Works, Inc. 330,146
3,252 Johnson Controls, Inc. 145,934
1,459 Millipore Corp. 57,083
332 NACCO Industries, Inc. Class A 34,196
4,202 Pall Corp. 86,929
3,377 Parker Hannifin Corp. 141,201
2,444 Timken Co. 81,874
10,512 Tyco Intl Ltd. 396,828
------------
1,776,398
------------
Medical Products & Supplies (0.81%)
1,443 Allegiance Corp. 40,043
2,049 Bard (C.R.), Inc. 56,860
2,334 Bausch & Lomb, Inc. 91,609
9,397 Baxter International, Inc. 434,611
4,716 Becton, Dickinson & Co. 217,231
4,731 Biomet, Inc.* 117,979
4,655 Boston Scientific Corp.* 211,803
15,816 Medtronic, Inc. 687,996
2,602 St. Jude Medical, Inc.* 78,873
3,609 Sigma Aldrich Corp. 126,766
------------
2,063,771
------------
Metals Miscellaneous (0.13%)
1,384 ASARCO, Inc. 37,887
2,941 Cyprus Amax Minerals Co. 61,577
4,197 Inco Ltd. 86,563
2,061 Phelps Dodge Corp. 153,287
------------
339,314
------------
Miscellaneous (3.60%)
1,578 A.C. Nielson* 36,097
2,510 Allergan, Inc. 82,673
19,082 AlliedSignal Inc. 686,952
2,283 American Greetings Corp. Class A 79,192
9,094 Amgen, Inc.* 447,880
2,478 Autoliv Inc. 97,726
3,245 Brunswick Corp. 109,519
1,078 Cincinnati Milacron, Inc. 29,915
6,113 Cognizant Corp. 239,553
8,372 Corning, Inc. 377,787
3,005 Covance Inc.* 53,151
10,342 CUC International, Inc.* 305,089
3,151 Deluxe Corp. 103,195
3,108 Dial Corp. 52,448
5,595 Donnelley (R.R.) & Sons Co. 182,537
487 Eastern Enterprises 19,084
2,709 Eastman Chemical 161,524
11,672 Eastman Kodak Co. 698,861
1,507 General Signal Corp. 60,468
6,000 HBO & Co. 261,000
4,271 H & R Block, Inc. 158,027
933 HFS Inc.* 65,776
2,417 Harcourt General, Inc. 121,001
1,272 Harland (John H.)Co. 28,541
2,250 Harris Corp. 98,156
4,490 Ikon Office Solutions Inc. 127,123
934 Imation Corp. 19,964
4,258 Interpublic Group 202,255
1,238 Jostens Inc. 28,861
1,517 Kerr-McGee Corp. 102,492
4,455 Loews Corp. 497,568
5,240 Marsh & McLennan Cos., Inc. 372,040
2,173 Meritor Automotive Inc. 48,488
13,113 Minnesota Mining &
Manufacturing Co. 1,199,839
4,908 NCR Corporation* 148,774
1,880 Newport News Shipbuilding 40,420
2,931 Pioneer Hi Bred International 268,553
1,379 Polaroid Corp. 61,969
1,502 Quest Diagnostics* 25,065
7,271 Service Corp. International 221,311
598 Springs Industries Inc. Class A 27,732
4,516 TRW, Inc. 258,541
3,300 Unisource Worldwide Inc. 53,831
1,812 United States Surgical Corp. 48,811
13,369 Viacom International Class B* 404,412
3,108 Viad Corp. 56,721
4,671 Whitman Corp. 122,614
5,199 Williams Cos., Inc. 264,824
------------
9,158,360
------------
Office Equipment & Supplies (0.61%)
3,264 Moore Corp. Ltd. 52,836
6,017 Pitney Bowes, Inc. 477,223
12,789 Xerox Corp. 1,014,328
------------
1,544,387
------------
Oil & Gas Drilling (0.07%)
736 Helmerich & Payne, Inc. 59,386
3,315 Rowan Cos., Inc.* 128,871
------------
188,257
------------
Oil (Exploration & Production) (0.27%)
3,630 Burlington Resources, Inc. 177,643
1,325 Monterey Resources 26,417
3,862 Oryx Energy Co.* 106,446
3,006 Santa Fe Energy Resources, Inc.* 39,266
1,826 Western Atlas Inc.* 157,379
7,305 Union Pacific Resources
Group, Inc. 179,886
------------
687,037
------------
Oil (Domestic Integrated) (1.20%)
3,834 Amerada Hess Corp. 235,551
1,732 Ashland Inc. 82,595
11,889 Atlantic Richfield Co. 978,613
11,715 Occidental Petroleum Corp. 326,556
1,339 Pennzoil Co. 99,086
9,711 Phillips Petroleum Co. 469,770
2,771 Sun Co., Inc. 111,013
10,791 USX-Marathon Group 385,778
9,091 Unocal Corp. 375,004
------------
3,063,966
------------
Oil (International Integrated) (5.89%)
14,986 Amoco Corp. 1,374,029
21,741 Chevron Corp. 1,803,144
83,163 Exxon Corp. 5,109,327
26,168 Mobil Corp. 1,905,357
71,864 Royal Dutch Petroleum Co. ADR 3,781,843
17,590 Texaco Inc. 1,001,531
------------
14,975,231
------------
Oil Well Equipment & Services (0.97%)
5,335 Baker Hughes, Inc. 245,077
6,683 Dresser Industries, Inc. 281,521
8,828 Halliburton Co. 526,370
1,898 McDermott International, Inc. 68,921
15,362 Schlumberger Ltd. 1,344,175
------------
2,466,064
------------
Paper & Forest Products (1.16%)
1,626 Boise Cascade Corp. 56,300
2,653 Champion International Corp. 146,412
2,793 Fort James Corp. 110,847
3,079 Georgia-Pacific Corp. 261,138
9,649 International Paper Co. 434,205
20,578 Kimberly-Clark Corp. 1,068,770
2,999 Louisiana-Pacific Corp. 62,979
1,620 Mead Corp. 98,010
1,149 Potlatch Corp. 57,306
2,065 Union Camp Corp. 111,897
3,170 Westvaco Corp. 104,016
6,873 Weyerhaeuser Co. 328,186
3,674 Willamette Industries, Inc. 121,472
------------
2,961,538
------------
Pollution Control (0.32%)
6,742 Browning-Ferris Industries, Inc. 219,115
9,030 Laidlaw, Inc. Class B 127,549
20,113 Waste Management Inc. 470,141
------------
816,805
------------
Publishing (0.56%)
5,513 Dun & Bradstreet Corp. 157,465
3,765 McGraw-Hill Cos. 246,137
2,352 Meredith Corp. 80,115
16,361 Time Warner, Inc. 943,825
------------
1,427,542
------------
Publishing (Newspapers) (0.63%)
3,476 Dow Jones & Co., Inc. 161,634
11,710 Gannett Co., Inc. 615,507
3,725 Knight-Ridder, Inc. 194,631
3,070 New York Times Co. Class A 168,083
3,897 Times Mirror Co. Class A 210,925
4,690 Tribune Co. 258,536
------------
1,609,316
------------
Restaurants (0.54%)
1,241 Luby's Cafeterias, Inc. 24,742
23,996 McDonald's Corp. 1,075,321
2,609 Ryan's Family Steak Houses, Inc.* 22,503
2,309 Shoney's Inc.* 10,824
5,368 Tricon Global Restaurants 162,705
3,466 Wendy's International, Inc. 72,786
------------
1,368,881
------------
Retail Stores (Department) (0.74%)
7,526 Dayton-Hudson Corp. 472,727
3,808 Dillard's Inc. 146,132
2,305 Federated Department Stores 101,420
8,678 May Department Stores Co. 467,527
1,143 Mercantile Stores Co., Inc. 67,366
3,009 Nordstrom, Inc. 184,301
7,593 J.C. Penney Co. 445,614
------------
1,885,087
------------
Retail Stores (Drugs) (0.25%)
2,532 Rite Aid Corp. 150,338
17,210 Walgreen Co. 484,031
------------
634,369
------------
Retail Stores (Food Chains) (0.48%)
9,513 Albertson's, Inc. 350,792
11,140 American Stores Co. 286,159
2,285 Giant Food, Inc. Class A 69,978
1,385 Great Atlantic &
Pacific Tea Co., Inc. 42,502
8,162 Kroger Co.* 266,285
5,668 Winn Dixie Stores, Inc. 210,425
------------
1,226,141
------------
Retail Stores (General Merchandise) (1.39%)
17,402 Kmart Corp. 229,489
13,186 Sears, Roebuck & Co. 552,164
78,472 Wal-Mart Stores, Inc. 2,756,329
------------
3,537,982
------------
Retail Stores (Specialty) (1.15%)
3,298 Circuit City Stores, Inc. 131,508
6,689 Costco Companies* 257,526
3,348 CVS Corporation 205,274
769 Footstar Inc.* 20,907
24,547 Home Depot, Inc. 1,365,427
1,440 Longs Drug Stores, Inc. 36,090
6,085 Lowes Cos., Inc. 253,288
1,037 Payless Shoesource Inc.* 57,813
2,202 Pep Boys (Manny, Moe & Jack) 55,463
4,378 Tandy Corp. 150,494
9,307 Toys R Us, Inc.* 317,019
4,451 Woolworth Corp.* 84,569
------------
2,935,378
------------
Retail Stores (Specialty-Apparel) (0.35%)
3,661 Charming Shoppes, Inc. 18,991
10,822 Gap (The), Inc. 575,595
7,007 Limited, Inc. 165,103
4,788 TJX Cos., Inc. 141,845
------------
901,534
------------
Shoes (0.20%)
10,120 Nike, Inc. Class B 475,640
674 Reebok International Ltd. 24,854
1,461 Stride Rite Corp. 17,167
------------
517,661
------------
Steel (0.16%)
4,045 Armco, Inc.* 23,259
3,277 Bethlehem Steel Corp.* 32,770
1,406 Inland Steel Industries, Inc.* 27,593
3,248 Nucor Corp. 169,708
2,544 USX-U.S. Steel Group 86,496
2,785 Worthington Industries, Inc. 57,614
------------
397,440
------------
Telecommunications (Long Distance) (2.31%)
52,876 AT&T Corp. 2,587,619
18,394 Lucent Technologies Inc. 1,516,355
22,674 MCI Communications Corp. 804,927
12,805 Sprint Corp. 665,860
9,151 WorldCom, Inc. 307,703
------------
5,882,464
------------
Textile (Apparel Manufacturers) (0.15%)
2,371 Fruit of the Loom, Inc. Class A* 61,794
2,085 Liz Claiborne, Inc. 105,684
1,385 Russell Corp. 40,684
2,077 V.F. Corp. 185,632
------------
393,794
------------
Tobacco (1.46%)
8,136 Gallaher Group ADS 156,110
83,610 Philip Morris Cos., Inc. 3,313,046
8,112 UST Inc. 242,853
------------
3,712,009
------------
Toys (0.19%)
4,979 Hasbro, Inc. 144,391
9,036 Mattel, Inc. 351,275
------------
495,666
------------
Total Industrials 175,863,549
------------
TRANSPORTATION (1.24%)
Airlines (0.31%)
2,806 AMR Corp.* 326,724
1,958 Delta Air Lines, Inc. 197,268
5,045 Southwest Airlines Co. 164,593
1,900 USAir Group, Inc.* 89,063
------------
777,648
------------
Railroads (0.72%)
4,944 Burlington Northern
Santa Fe Corp. 469,680
7,797 CSX Corp. 426,398
13,752 Norfolk Southern Corp. 441,783
8,111 Union Pacific Corp. 496,799
------------
1,834,660
------------
Truckers (0.08%)
1,328 Caliber System Inc. 69,222
2,150 CNF Transportation 95,944
1,075 Consolidated Freightways Corp. 15,184
662 Yellow Corp. 18,164
------------
198,514
------------
Transportation (Miscellaneous) (0.13%)
3,467 Federal Express Corp.* 231,422
2,990 Ryder System, Inc. 104,650
------------
336,072
------------
Total Transportation 3,146,894
------------
UTILITIES (6.72%)
Electric Companies (2.32%)
6,957 American Electric Power Co., Inc. 328,718
5,438 Baltimore Gas & Electric Co. 149,205
5,137 Carolina Power & Light Co. 183,648
6,688 Central & South West Corp. 144,210
5,690 CINergy Corp. 187,770
6,271 Consolidated Edison Co.
of New York, Inc. 214,782
5,134 DTE Energy Co. 157,870
5,798 Dominion Resources, Inc. 215,613
12,080 Duke Power Co. 582,860
15,016 Edison International 384,785
8,153 Entergy Corp. 199,239
6,657 FPL Group, Inc. 344,084
3,972 GPU Inc. 143,737
9,620 Houston Industries, Inc. 209,235
5,673 Niagara Mohawk Power Corp. 54,957
2,333 Northern States Power Co. 117,525
5,143 Ohio Edison Co. 127,289
7,485 PECO Energy Corp. 169,816
1,776 PP&L Resources Inc. 38,406
9,861 PacifiCorp 213,860
14,248 PG & E Corporation 364,215
8,311 Public Service Enterprise
Group Inc. 215,567
22,291 Southern Co. 511,300
8,037 Texas Utilities Co. 288,327
7,180 Unicom Corp. 201,040
3,724 Union Electric Co. 140,348
------------
5,888,406
------------
Natural Gas (0.51%)
4,194 Coastal Corp. 252,164
2,074 Columbia Gas Systems, Inc.* 149,847
2,232 Consolidated Natural Gas Co. 120,668
874 El Paso Natural Gas 52,385
8,737 Enron Corp. 332,006
3,114 ENSERCH Exploration Inc. 28,026
1,458 NICOR, Inc. 56,224
998 ONEOK, Inc. 34,244
2,869 Pacific Enterprises 93,780
1,349 Peoples Energy Corp. 48,227
2,863 Sonat, Inc. 131,519
------------
1,299,090
------------
Telephone (3.89%)
16,578 AirTouch Communications* 640,325
18,338 Ameritech Corp. 1,191,970
25,814 Bell Atlantic Corp. 2,061,893
35,019 BellSouth Corp. 1,656,837
32,403 GTE Corp. 1,375,102
30,626 SBC Communications Inc. 1,948,579
15,643 U S West Media Group 394,986
15,905 U S West Communication Group 633,218
------------
9,902,910
------------
Total Utilities 17,090,406
------------
FINANCIAL (14.81%)
Financial Miscellaneous (3.07%)
16,688 American Express Co. 1,301,664
9,042 American General Corp. 461,142
24,810 Federal Home Loan
Mortgage Corp. 939,679
37,033 Federal National Mortgage Assn. 1,793,786
4,766 Green Tree Financial Corp. 200,768
17,355 MBNA Corp. 456,653
14,253 Merrill Lynch & Co., Inc. 963,859
22,747 Morgan Stanley, Dean Witter
Discover 1,114,603
3,648 Salomon, Inc. 283,404
2,994 Transamerica Corp. 302,207
------------
7,817,765
------------
Life Insurance (0.38%)
1,726 Aon Corp. 93,096
2,018 Aegon NV 160,431
2,386 Jefferson-Pilot Corp. 184,468
3,411 Lincoln National Corp. 234,506
3,867 Providian Financial Corp. 143,079
3,816 Torchmark Corp. 152,163
------------
967,743
------------
Major Regional Banks (4.21%)
15,950 Banc One Corp. 831,394
13,822 Bank of New York Co., Inc. 650,498
7,115 Barnett Banks, Inc. 490,935
1,403 Comerica , Inc. 110,925
6,573 CoreStates Financial Corp. 478,186
6,016 Fifth Third Bancorp 385,776
13,850 First Union Corp. 679,515
9,445 Fleet Financial Group, Inc. 607,431
8,197 KeyCorp 501,554
6,237 National City Corp. 372,661
18,109 NationsBank, Inc. 1,084,277
26,806 Norwest Corp. 859,468
9,408 PNC Bank Corp. 446,880
8,285 SunTrust Banks, Inc. 536,971
8,723 U.S. Bancorp 887,020
6,895 Wachovia Corp. 519,279
4,333 Wells Fargo & Co. 1,262,528
------------
10,705,298
------------
Money Center Banks (2.38%)
3,296 Bankers Trust New York Corp. 388,928
15,935 Chase Manhattan Corp. 1,838,501
16,467 Citicorp 2,059,404
11,675 First Chicago NBD Corp. 849,356
6,795 Morgan (J.P.) & Co., Inc. 745,751
1,641 Republic New York Corp. 173,639
------------
6,055,579
------------
Multi-Line Insurance (2.46%)
5,141 Aetna Inc. 365,332
14,606 Allstate Corp. 1,211,385
24,822 American International
Group, Inc. 2,533,345
2,380 CIGNA Corp. 369,495
22,078 Travelers Group Inc. 1,545,460
4,661 UNUM Corp. 227,224
------------
6,252,241
------------
Other Major Banks (1.13%)
27,854 BankAmerica Corp. 1,991,561
4,224 BankBoston Corp. 342,408
10,688 Mellon Bank Corp. 551,100
------------
2,885,069
------------
Personal Loans (0.23%)
2,358 Beneficial Corp. 180,829
3,522 Household International, Inc. 398,867
------------
579,696
------------
Property-Casualty Insurance (0.67%)
5,724 Chubb Corp. 379,215
2,856 General Re Corp. 563,167
3,746 MGIC Investment Corp. 225,931
4,152 SAFECO Corp. 197,739
3,026 St. Paul Cos., Inc. 241,891
4,081 USF&G Corp. 82,640
------------
1,690,583
------------
Savings & Loans Companies (0.28%)
4,013 Ahmanson (H.F.) & Co. 236,767
2,023 Golden West Financial Corp. 175,495
4,376 Washington Mutual Inc. 299,483
------------
711,745
------------
Total Financial 37,665,719
------------
Total Common Stock (cost $165,477,690) 233,766,568
------------
<CAPTION>
Principal
Amount
- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (8.24%)
Repurchase Agreement, (6.30%)(b)
$16,017,000 Smith Barney Inc.
5.66%; 11/3/97 (cost $16,017,000;
maturity value $16,024,555) 16,017,000
United States Treasury Bills (1.94%)(c)
5,000,000 4.98%; 1/15/98 (cost $4,948,854) 4,948,854
------------
Total Short-term Investments
(cost $20,965,854) 20,965,854
------------
Total Investments (cost $186,443,544)
(100.14%)(a) 254,732,422
Liabilities Less Other Assets (-0.14%) (345,468)
------------
Net Assets (100%) $254,386,954
============
* Non-income producing security.
(a) Aggregate cost for federal income tax purposes is $186,443,544. At
October 31, 1997 unrealized appreciation (depreciation) of securities
for federal income tax purposes is as follows:
Gross unrealized appreciation $70,249,320
Gross unrealized depreciation (1,960,442)
------------
Net unrealized appreciation $68,288,878
============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$16,349,126 which exceeds the value of the repurchase agreement. It
is the Fund's policy to always receive, as collateral, securities
whose value, including accrued interest, will be at least equal to
102% of the dollar amount to be paid to the Fund under each agreement
at its maturity. The value of the securities are monitored daily. If
the value falls below 101% of the amount to be paid at maturity,
additional collateral is obtained. The Fund makes payment for such
securities only upon physical delivery or evidence of book entry
transferred to the account of its custodian.
(c) At October 31, 1997, the market value of $4,948,854 of the U.S.
Treasury Bills were pledged to cover margin requirements for futures
contracts.
Futures contracts at October 31, 1997:
(Contracts-$500 times premium/delivery
month/commitment)
Unrealized
Depreciation
------------
S&P 500 Stock Index:
44/Dec/Buy $ (435,600)
============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime
Family of Funds Social Awareness Fund
Portfolio of Investments
Value
Shares (Note 1)
- ------------ -----------
<S> <C> <C>
COMMON STOCK (95.63%)
Chemicals & Materials (1.62%)
2,100 Praxair Inc. $ 91,481
2,700 Sigma-Aldrich Corp. 94,838
------------
186,319
------------
Computer Software & Services (3.40%)
3,100 Automatic Data Processing Corp. 158,487
3,100 Computer Associates Int'l. 231,144
------------
389,631
------------
Computer Manufacturers (7.42%)
5,250 Compaq Computers Corp. 334,687
6,200 Hewlett-Packard Co. 382,463
3,900 Sun Microsystems Corp. * 133,575
------------
850,725
------------
Electrical (Components) (1.67%)
2,800 Baldor Electric 81,900
2,800 Solectron Corp. 109,900
------------
191,800
------------
Electronics (Semi-Conductors) (2.95%)
4,400 Intel Corp. 338,800
------------
Financial (Miscellaneous) (5.33%)
3,300 American Express Co. 257,400
5,500 Federal Home Loan Mortgage 208,312
5,550 MBNA Corporation 146,034
------------
611,746
------------
Food Wholesaler (1.05%)
3,000 Sysco 120,000
------------
Heavy Duty Trucks & Parts (1.06%)
2,600 Dana Corp. 121,712
------------
Insurance (0.93%)
1,500 Marsh & McLennan 106,500
------------
Banks (9.95%)
2,900 Bank America 207,350
1,300 Bankers Trust N.Y. Corp. 153,400
2,500 Barnett Bank Inc. 172,500
1,400 Fifth Third Bancorp 89,775
6,200 Norwest Corp. 198,788
3,400 PNC Bank Corp. 161,500
2,100 Wachovia Corp. 158,156
------------
1,141,469
------------
Medical Equipment & Supplies (8.13%)
2,100 Becton, Dickinson & Co. 96,731
4,900 Biomet Inc. 122,194
7,500 Johnson & Johnson 430,313
4,200 Medtronic Inc. 182,700
2,700 Stryker Corp. 100,406
------------
932,344
------------
Miscellaneous (19.33%)
3,000 Bergen Brunswig 'A' 120,187
2,900 Brady (W.H) 92,800
2,100 Cooper Industries Inc. 109,462
2,600 Deere & Co. 136,825
3,000 Energen Corp. 108,562
1,800 Fastenal Co. 88,200
1,500 GATX Corp. 96,844
2,000 Harman International Ind. 108,000
500 Ionics Inc. 19,156
4,200 Kimberly Clark Corp. 218,138
1,400 Oxford Health Plan 36,138
9,700 Ryan's Family Steakhouse 83,663
3,500 Service Corp. 106,531
2,300 Snap On Inc. 98,900
2,200 Tellabs 118,800
8,200 Walt Disney Company 674,450
------------
2,216,656
------------
Oil & Gas Drilling (4.65%)
3,200 Amoco Corp. 293,400
6,300 Enron Corp. 239,400
------------
532,800
------------
Pharmaceuticals (5.87%)
5,400 Merck & Co. Inc. 481,950
3,400 Schering-Plough Corp. 190,613
------------
672,563
------------
Property-Casualty Insurance (3.85%)
1,400 St. Paul Companies, Inc. 111,913
1,000 General Re Corp. 197,187
2,000 Chubb Corp. 132,500
------------
441,600
------------
Retail Stores (General Merchandise) (4.27%)
3,300 Sears Roebuck & Co. 138,188
10,000 Wal Mart Stores Inc. 351,250
------------
489,438
------------
Retail Stores (Specialty) (4.34%)
4,800 Claire's Stores 106,200
3,400 Home Depot, Inc. 189,125
4,800 Lillian Vernon Corporation 77,400
3,000 Lowe's Companies Inc. 124,875
------------
497,600
------------
Shoes (0.90%)
2,200 Nike Inc. Cl B. 103,400
------------
Steel (0.82%)
1,800 Nucor Corp. 94,050
------------
Transportation Airlines (3.35%)
2,600 Delta Air Lines Inc. 261,950
1,400 UAL Corp. 122,675
------------
384,625
------------
Utilities (Telephone) (4.74%)
3,700 Ameritech 240,500
6,400 Bellsouth Corp. 302,800
------------
543,300
------------
Total Common Stock (cost $10,996,387) 10,967,078
------------
<CAPTION>
Principal
Amount
- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (4.33%)
Repurchase Agreement (4.15%)(b)
$476,000 Smith Barney;
5.66%; 11/3/97 (cost $476,000;
maturity value $476,225) 476,000
United States Treasury Bill (0.18%)(c)
20,000 5.13%; 1/22/98 (cost $19,765) 19,765
------------
Total Short-term Investments
(cost $495,765) 495,765
------------
Total Investments (cost $11,492,152)
(99.96%)(a) 11,462,843
Other Assets Less Liabilities (0.04%) 4,945
------------
Net Assets (100%) $11,467,788
============
* Non-income producing security.
(a) Aggregate cost for federal income tax purposes is $11,492,152. At
October 31, 1997 unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 572,145
Gross unrealized depreciation (601,454)
------------
Net unrealized depreciation $ (29,309)
============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$485,870, which exceeds the value of the repurchase agreement. It is
the Fund's policy to always receive, as collateral, securities whose
value, including accrued interest, will be at least equal to 102% of
the dollar amount to be paid to the Fund under each agreement at its
maturity. The value of the securities are monitored daily. If the
value falls below 101% of the amount to be paid at maturity,
additional collateral is obtained. The Fund makes payment for such
securities only upon physical delivery or evidence of book entry
transferred to the account of its custodian.
(c) At October 31, 1997, the market value of $19,765 of the U.S. Treasury
Bill was pledged to cover margin requirements for futures contracts.
Futures contracts at October 31, 1997:
(Contracts-$500 times premium/delivery
month/commitment)
Unrealized
Depreciation
------------
S&P 500 Stock Index:
1/December/Buy $ (9,925)
============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime MidCap Fund
Family of Funds Portfolio of Investments
Value
Shares (Note 1)
- ------------ -----------
<S> <C> <C>
COMMON STOCK (94.36%)
INDUSTRIALS (66.97%)
Aerospace/Defense (1.24%)
1,800 OEA, Inc. $ 72,450
2,100 Precision Castparts Corp. 123,506
2,200 Rohr, Inc.* 66,687
800 Sequa Corp. Class A* 45,900
5,200 Sundstrand Corp. 282,750
1,600 Thiokol Corp. 146,500
3,000 Universal Corp. 115,313
------------
853,106
------------
Auto Parts & Equipment (0.65%)
2,200 Arvin Industries, Inc. 82,362
2,000 Borg-Warner Automotive, Inc. 109,000
3,000 Federal-Mogul Corp. 126,938
5,700 Meritor Automotive Inc. 127,181
------------
445,481
------------
Biotechnology (1.25%)
6,400 Biogen, Inc.* 214,400
5,600 Centocor, Inc.* 246,400
11,700 Chiron Corp.* 225,225
6,600 Genzyme Corp.* 180,675
------------
866,700
------------
Broadcast Media (0.34%)
2,800 Chris-Craft Industries, Inc.* 144,725
2,200 TCA Cable Television, Inc. 90,750
------------
235,475
------------
Building Materials (0.27%)
2,000 Calmat Co. 50,375
1,600 Granite Construction Co. 33,800
1,800 Southdown, Inc.* 99,675
------------
183,850
------------
Cellular Communications (1.04%)
20,000 Nextel Communications* 525,000
8,000 360 Communications Co. 169,000
2,100 Vanguard Cellular Systems, Inc.
Class A* 29,006
------------
723,006
------------
Chemicals & Materials (3.59%)
6,000 Airgas, Inc.* 93,375
4,000 Albemarle Corp. 97,000
2,300 A. Schulman Inc. 51,750
2,500 Betz Laboratories, Inc. 160,312
4,500 Cabot Corp. 110,531
3,400 Calgon Carbon Corp. 40,163
6,400 Crompton & Knowles Corp. 161,600
4,000 Cytec Industries, Inc.* 195,000
2,000 Dexter Corp. 78,500
6,300 Ethyl Corp. 54,337
2,200 Ferro Corp. 82,363
1,200 Fuller (H.B.) Co. 56,700
3,000 Georgia Gulf Corp. 90,000
5,600 IMC Global Inc. 188,650
1,100 Lawter International Inc. 12,306
4,600 Lubrizol Corp. 177,100
7,000 Lyondell Petrochemical Co. 179,375
4,400 M.A. Hanna Co. 113,300
4,400 Olin Corp. 199,925
6,800 RPM Inc. (Ohio) 127,500
5,000 Witco Chemical Corp. 217,500
------------
2,487,287
------------
Commercial Services (Advertising) (0.65%)
2,100 Information Resources, Inc.* 34,650
5,900 Omnicom Group Inc. 416,687
------------
451,337
------------
Commercial Services (Specialized) (0.61%)
2,500 Banta Corp. 65,312
4,300 Comsat Corp. 98,363
3,100 Fiserv, Inc.* 138,725
2,200 Jacobs Engineering Group Inc.* 59,400
3,000 Rollins, Inc. 64,125
------------
425,925
------------
Computer Hardware (2.02%)
2,000 Exabyte Corp.* 21,125
6,400 Lexmark Intl. 195,600
5,700 Mentor Graphics Corp.* 62,344
9,200 Quantum Corp.* 290,950
3,000 Sequent Computer Systems, Inc.* 62,812
9,600 Solectron Corp.* 376,800
5,400 Storage Technology Corp.* 316,913
2,000 Stratus Computer, Inc.* 70,750
------------
1,397,294
------------
Computer Software & Services (4.22%)
7,700 America Online, Inc.* 592,900
7,600 BMC Software, Inc.* 458,850
8,600 Cadence Design Systems, Inc.* 457,950
6,400 Comdisco, Inc. 202,000
5,800 Compuware Corp.* 383,525
13,300 Informix Corp.* 90,606
3,000 Micro Warehouse Inc.* 45,000
1,600 Policy Management Systems Corp.* 98,000
7,800 Sterling Commerce 258,863
2,800 Structural Dynamics
Research Corp.* 53,550
7,600 SunGard Data Systems* 179,550
4,800 Symantec Corp.* 105,000
------------
2,925,794
------------
Consumer Products (0.47%)
1,700 Church and Dwight, Inc. 48,981
8,400 Dial Corp. 141,750
3,600 First Brands Corp. 91,800
1,600 Stanhome, Inc. 44,700
------------
327,231
------------
Electrical Components & Other Equipment (6.06%)
7,700 Altera Corp.* 341,688
12,500 Analog Devices, Inc.* 382,031
8,800 Arrow Electronics, Inc.* 249,700
6,700 Atmel Corp.* 173,363
3,600 Avnet, Inc. 226,575
3,800 Best Buy, Inc.* 106,162
5,800 Cirrus Logic* 87,725
7,700 Cypress Semiconductor Corp.* 86,625
5,800 Hubbell Inc. Class B 255,563
3,700 Imation Corp. 79,088
6,600 Linear Technology Corp. 414,975
2,200 Magnatek* 44,687
4,800 Maxim Integrated Products, Inc.* 318,000
10,900 Molex, Inc. 408,750
6,400 Sensormatic Electronics Corp. 95,600
3,400 Symbol Technologies, Inc.* 135,150
5,100 Teradyne, Inc.* 190,931
4,000 UCAR International, Inc.* 150,000
2,600 Varian Associates, Inc. 152,100
5,600 Vishay Intertechnology, Inc.* 134,050
4,800 Xilinx, Inc.* 163,800
------------
4,196,563
------------
Electrical Equipment (0.45%)
7,000 Integrated Device Technology Inc.* 80,937
5,200 SCI Systems, Inc.* 228,800
------------
309,737
------------
Food & Beverages (4.18%)
3,800 Bob Evans Farms, Inc. 71,963
29,500 Coca-Cola Enterprises, Inc. 829,687
3,500 Dean Foods Corp. 165,594
5,200 Dole Food Co. 230,425
1,100 Dreyer's Grand Ice Cream, Inc. 45,512
7,700 Flowers Industries, Inc. 146,300
3,700 Hannaford Brothers Co. 139,906
4,800 Hormel Foods Corp. 144,300
8,000 IBP, Inc. 185,500
1,600 International Multifoods Corp. 47,200
3,200 Interstate Bakeries 204,400
2,600 J.M. Smucker Co. Class A 70,688
2,600 Lance, Inc. 55,575
3,300 Lone Star Steakhouse & Saloon* 76,312
4,000 McCormick & Co., Inc. 100,000
15,600 Tyson Foods, Inc. 294,450
2,200 Universal Foods Corp. 86,762
------------
2,894,574
------------
Health Care Products (Distribution) (0.49%)
4,400 Bergen Brunswig Corp. Class A 176,275
4,100 Sybron Corp.* 164,512
------------
340,787
------------
Health Care Services (2.28%)
4,500 Apria Healthcare* 68,344
7,700 Foundation Health Systems "A" 221,375
14,100 Health Management Associates
Class A* 343,688
2,800 HealthCare Compare Corp.* 150,500
3,900 Healthcare & Retirement Corp.* 147,469
10,700 Laboratory Corp. of America* 25,412
5,300 NovaCare, Inc.* 69,231
6,800 Oxford Health Plan* 175,525
3,300 Pacificare Health System "B" 213,675
6,000 Vencor, Inc.* 162,000
------------
1,577,219
------------
Iron & Steel (0.16%)
1,000 Cleveland-Cliffs Iron Co. 43,437
1,300 Lukens, Inc. 23,400
2,200 Oregon Steel Mills, Inc. 46,338
------------
113,175
------------
Leisure Time (Products) (1.31%)
6,400 Callaway Golf Co. 206,400
4,700 Electronic Arts* 159,212
11,800 Harley-Davidson, Inc. 327,450
8,400 International Game Technology 214,725
------------
907,787
------------
Leisure Time (Services) (0.50%)
8,600 Circus Circus Enterprises Inc.* 191,350
8,400 Viad Corp. 153,300
------------
344,650
------------
Manufacturing (Diversified Industries) (2.01%)
5,400 AGCO Corp. 156,600
2,600 Ametek Inc. 61,263
5,400 Burlington Industries* 80,662
1,800 Carlisle Co., Inc. 77,850
5,200 Danaher Corp. 285,025
3,600 GenCorp, Inc. 87,975
4,300 Harsco Corp. 178,450
8,100 NCR Corporation 245,531
3,200 Pentair, Inc. 123,600
1,900 Tecumseh Products Co. Class A 98,563
------------
1,395,519
------------
Manufacturing (Specialized Industries) (3.01%)
2,200 Albany International Corp. 53,625
6,900 American Power Conversion Corp.* 188,025
273 Culligan Water Technologies* 11,637
4,800 Dentsply International 136,200
1,700 Donaldson Co., Inc. 86,062
4,000 Federal Signal Corp. 96,750
2,800 Flowserve Corp. 83,300
2,800 Kaydon Corp. 85,050
2,200 Kennametal, Inc. 106,700
900 Lawson Products, Inc. 24,919
8,100 Leggett & Platt, Inc. 338,175
2,600 Modine Manufacturing Co. 88,562
600 NCH Corp. 40,200
900 Nordson Corp. 44,662
2,000 R. P. Scherer Corp.* 117,750
2,900 Stewart & Stevenson Services, Inc. 63,075
3,200 Teleflex Inc. 119,200
3,800 Trinity Industries, Inc. 170,050
2,400 Watts Industries Class A 60,900
3,800 York International Corp. 173,376
------------
2,088,218
------------
Medical Products & Supplies (1.01%)
2,600 Acuson Corp.* 48,750
5,000 Allegiance Corp. 138,750
1,200 ATL Ultrasound Inc. 51,600
2,500 Beckman Instruments 98,437
1,200 Datascope Corp.* 28,950
800 Diagnostic Products Corp. 23,400
8,400 Stryker Corp. 312,375
------------
702,262
------------
Metals (Specialty) (0.39%)
4,800 Alumax, Inc.* 156,000
1,400 Brush Wellman, Inc. 33,688
1,700 Carpenter Technology Corp. 82,237
------------
271,925
------------
Miscellaneous (7.09%)
5,000 A.C. Nielson 114,375
11,400 ADC Telecommunications, Inc.* 377,625
2,400 AK Steel Holding Corp. 101,100
6,100 American Water Works Co., Inc. 138,013
1,800 APL Ltd. 59,175
2,500 Cintas Corp. 180,625
9,300 Clayton Homes Inc. 152,869
6,000 Diebold, Inc. 264,375
3,800 Gtech Holdings Corp.* 122,550
4,900 Hillenbrand Industries, Inc. 209,475
3,400 Kelly Services, Inc. Class A 120,700
2,600 Lancaster Colony Corp. 128,700
6,800 LCI International, Inc.* 175,950
4,000 Litton Industries, Inc.* 203,000
7,200 Manpower Inc. 276,300
5,600 Mark IV Industries, Inc. 135,800
800 Maxxam Inc.* 42,100
3,300 McKesson Corp. 354,131
6,300 Medaphis Corp.* 38,194
1,800 Minerals Technologies, Inc. 74,475
3,000 Newport News Shipbuilding 64,500
4,400 Ogden Corp. 111,100
7,100 Olsten Corp. 108,275
9,500 Paychex, Inc. 362,187
4,500 Promus Hotel Corp.* 176,625
7,800 Robert Half International, Inc.* 319,312
4,000 Ruddick Corp. 62,500
3,700 Sealed Air Corp.* 190,781
4,900 Sotheby's Holdings Class A 91,875
3,700 Stewart Enterprises, Inc. Class A 153,550
------------
4,910,237
------------
Office Equipment & Supplies (2.16%)
2,600 Hon Industries, Inc. 134,225
2,500 Miller (Herman), Inc. 122,188
13,700 Office Depot, Inc.* 282,563
10,800 Officemax Inc.* 144,450
7,100 Reynolds & Reynolds Class A 121,588
14,200 Staples, Inc.* 372,750
1,400 The Standard Register Co. 45,325
7,300 Viking Office Products* 174,744
2,600 Wallace Computer Services, Inc. 99,937
------------
1,497,770
------------
Oil & Gas (3.31%)
5,200 El Paso Natural Gas 311,675
2,000 Indiana Energy, Inc. 57,125
3,400 Keyspan Energy Corp. 105,613
4,800 Mapco Inc. 158,400
3,900 Murphy Oil Corp. 225,956
5,000 Noble Affiliates, Inc. 205,312
3,000 Pioneer Natural Resources 120,188
3,000 Quaker State Corp. 46,500
8,600 Ranger Oil Ltd. 74,175
5,600 Seagull Energy Corp.* 136,850
10,700 Tosco Corp. 353,100
6,500 Ultramar Diamond Shamrock 200,687
4,300 Valero Energy 129,538
2,800 Varco International, Inc.* 170,625
------------
2,295,744
------------
Oil & Gas Drilling (4.89%)
3,400 BJ Services Co.* 288,150
12,400 ENSCO International, Inc.* 521,575
14,900 Global Marine, Inc.* 463,763
8,400 Nabors Industries, Inc.* 345,450
11,600 Noble Drilling Corp.* 412,525
6,600 Parker Drilling Co.* 97,763
3,500 Smith International, Inc.* 266,875
4,300 Tidewater, Inc. 282,456
8,800 Transocean Offshore 475,200
4,600 Weatherford Enterra Inc.* 234,887
------------
3,388,644
------------
Paper/Forest Products/Containers (1.99%)
3,400 Bowater, Inc. 142,163
2,000 Chesapeake Corp. of Virginia 63,375
3,900 Consolidated Papers 202,556
1,400 Gibson Greetings, Inc.* 34,475
4,500 Longview Fiber Co. 71,437
3,700 P.H. Glatfelter Co. 73,075
2,600 Rayonier Inc. 113,587
7,900 Sonoco Products 254,281
5,800 Unisource Worlwide Inc. 94,613
3,000 Vulcan Materials Co. 266,438
3,200 Wausau Paper Mills Co. 64,600
------------
1,380,600
------------
Pharmaceuticals (1.19%)
4,000 Carter-Wallace, Inc. 62,750
2,700 Covance Inc. 47,756
3,600 Forest Laboratories, Inc.* 166,500
9,500 IVAX Corp. 71,844
10,700 Mylan Laboratories, Inc. 234,731
7,600 Watson Pharmaceuticals, Inc.* 241,300
------------
824,881
------------
Pollution Control (0.89%)
6,400 U.S. Filter Corp.* 256,800
9,700 USA Waste Service* 358,900
------------
615,700
Publishing (Books) (0.22%)
2,600 Houghton Mifflin Co. 92,300
1,400 Scholastic Corp.* 56,700
------------
149,000
------------
Publishing (Newspapers) (1.18%)
3,800 A. H. Belo Corp. Class A 179,550
4,000 Lee Enterprises, Inc. 106,250
2,400 Media General, Inc. Class A 97,800
1,000 Washington Post Co. Class B 434,000
------------
817,600
------------
Restaurants (0.59%)
6,800 Brinker International, Inc.* 95,200
2,500 Buffets Inc.* 26,250
3,200 Cracker Barrel Old Country
Stores, Inc. 94,400
2,000 International Dairy Queen, Inc.
Class A* 53,000
4,200 Outback Steakhouse* 113,663
1,000 Sbarro, Inc. 26,437
------------
408,950
------------
Retail Stores (General Merchandise) (0.83%)
7,300 Consolidated Stores, Inc.* 291,088
3,300 Fastenal Co. 161,700
4,400 Fred Meyer Inc. 125,675
------------
578,463
------------
Retail Stores (Specialty) (4.17%)
2,200 AnnTaylor Stores Corp.* 31,487
6,000 Bed Bath & Beyond, Inc.* 190,500
2,800 BJ's Wholesale Club 80,850
4,200 Claire's Stores, Inc. 92,925
10,000 Dollar General Corp. 330,625
7,500 Family Dollar Stores, Inc. 176,250
4,000 Fingerhut Co. 88,500
4,600 Heilig-Meyers Co. 61,525
4,600 Jones Apparel Group, Inc.* 234,025
6,400 Kohls Corp.* 429,600
2,800 Lands' End, Inc.* 88,375
2,200 MacFrugal's Bargains
Close-Outs, Inc.* 74,800
3,200 Nine West Group, Inc.* 113,000
2,300 Payless Shoesource Inc. 128,225
6,700 Perrigo Co.* 103,013
8,400 Service Merchandise Co., Inc.* 34,125
8,100 Shaw Industries, Inc. 98,212
6,800 Starbucks Corp.* 224,400
2,400 Superior Industries
International, Inc. 64,050
3,000 Tiffany & Co. 118,500
4,500 Warnaco Group 127,125
------------
2,890,112
------------
Textile Specialty (0.26%)
3,200 Unifi, Inc. 123,000
2,800 Wellman, Inc. 56,875
------------
179,875
------------
Total Industrials 46,402,478
------------
TRANSPORTATION (1.87%)
Airfreight (0.35%)
1,800 Airborne Freight Corp. 114,075
3,500 Pittston Services Group 126,437
------------
240,512
------------
Airlines (0.12%)
1,200 Alaska Air Group, Inc.* 40,050
1,500 ASA Holdings Inc. 41,813
------------
81,863
------------
Railroads (0.81%)
5,400 Illinois Central Corp. 192,375
2,200 GATX Corp. 142,038
7,500 Kansas City Southern
Industries, Inc. 228,750
------------
563,163
------------
Shipping (0.20%)
3,000 Alexander & Baldwin, Inc. 82,500
2,300 Overseas Shipholding Group Inc. 56,925
------------
139,425
------------
Truckers (0.39%)
2,300 Arnold Industries, Inc. 48,875
4,000 CNF Transportation Inc. 178,500
2,900 J.B. Hunt Transport Services, Inc. 44,587
------------
271,962
------------
Total Transportation 1,296,925
------------
UTILITIES (10.27%)
Electric Utilities (8.20%)
13,000 AES Corp.* 515,125
10,700 Allegheny Energy Inc. 302,275
4,600 Atlantic Energy, Inc. 84,812
1,200 Black Hills Corp. 36,150
8,300 CMS Energy Corp. 302,950
5,600 Calenergy 191,800
2,000 Central Louisiana Electric Co. 52,625
2,800 Central Maine Power Co. 37,100
5,300 Delmarva Power & Light Co. 105,006
4,600 Florida Progress Corp. 149,788
2,700 Hawaiian Electric Industries Inc. 102,094
2,900 Idaho Power Co. 92,437
6,300 Illinova Corp. 140,175
3,600 Ipalco Enterprises, Inc. 126,000
5,400 Kansas City Power & Light Co. 158,287
5,800 LG&E Energy Corp. 123,250
8,800 Midamerican Energy Hldgs. 157,300
2,800 Minnesota Power & Light Co. 101,850
4,800 Montana Power Co. 121,500
1,700 NIPSCO Industries, Inc. 74,694
4,000 Nevada Power Co. 86,000
9,120 New Century Energies 380,760
5,600 New England Electric System 219,450
3,600 New York State Electric & Gas Corp. 96,075
11,200 Northeast Utilities 128,800
3,600 OGE Energy Corp. 174,375
2,382 PG & E Corporation 60,890
6,400 Pinnacle West Capital Corp. 222,800
9,300 Potomac Electric Power Co. 208,669
3,600 Public Service Co. of New Mexico 69,975
7,400 Puget Sound Power & Light Co. 197,025
9,300 SCANA Corp. 234,825
11,300 TECO Energy, Inc. 269,787
4,700 Utilicorp United, Inc. 148,344
1,800 WPL Holdings, Inc. 52,538
6,100 Wisconsin Energy Corp. 154,406
------------
5,679,937
------------
Gas Utilities (1.01%)
4,400 AGL Resources Inc. 79,750
6,700 MCN Corp. 231,987
3,400 National Fuel & Gas Co. 150,025
3,600 Questar Corp. 139,050
3,800 Washington Gas Light Corp. 97,613
------------
698,425
------------
Telephone Companies (Local) (1.06%)
3,200 Aliant Communication 82,000
5,200 Century Telephone Enterprises, Inc. 220,675
5,800 Southern New England
Telecommunications Corp. 248,675
4,400 Telephone & Data Systems, Inc. 187,000
------------
738,350
------------
Total Utilities 7,116,712
------------
FINANCIAL (15.25%)
Banks (9.18%)
3,700 Central Fidelity Banks, Inc. 172,050
3,780 Charter One Financial 219,713
4,000 City National Corp. 120,250
9,600 Crestar Financial Corp. 454,200
7,100 First American Bank Corp. 395,825
9,800 First Security Corp. 284,200
5,100 First Tennessee National Corp. 293,888
4,650 First Virginia Banks, Inc. 215,934
12,600 Firstar Corp. 455,175
11,300 Hibernia Corp. Class A 201,281
6,200 Marshall & Ilsley Corp. 321,625
9,750 Mercantile Bancorp, Inc. 473,484
6,200 Mercantile Bankshares Corp. 220,875
9,700 Northern Trust Corp. 567,450
3,600 Pacific Century Financial Corp. 181,350
11,600 Regions Financial Corp. 426,300
8,600 SouthTrust Corp. 412,800
11,850 Summit Bancorp 505,847
5,700 Union Planters Corp. 338,081
1,800 Wilmington Trust Corp. 100,350
------------
6,360,678
------------
Brokerage (1.51%)
10,500 Bear Stearns Co., Inc. 416,719
8,400 A.G. Edwards & Sons, Inc. 275,625
8,000 PaineWebber Group, Inc. 353,500
------------
1,045,844
------------
Financial Miscellaneous (0.88%)
5,800 Capital One Financial Corp. 264,625
3,800 Finova Group, Inc. 166,963
3,000 The PMI Group Inc. 181,313
------------
612,901
------------
Insurance (2.16%)
10,500 AFLAC, Inc. 534,188
3,600 AMBAC, Inc. 152,100
5,400 American Financial Group, Inc. 205,538
1,800 HSB Group Inc. 93,938
9,200 Provident Cos., Inc.* 307,050
3,000 Transatlantic Holdings 207,563
------------
1,500,377
------------
Investment Management (1.52%)
8,000 Franklin Resources Corp. 719,000
5,000 T. Rowe Price 331,250
------------
1,050,250
------------
Total Financial 10,570,050
------------
Total Common Stock (cost $63,135,742) 65,386,165
------------
<CAPTION>
Principal
Amount
- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS (5.20%)
Repurchase Agreement (2.33%)(b)
$ 1,620,000 Smith Barney Inc.
5.66%; 11/3/97 (cost $1,620,000;
maturity value $1,620,764) 1,620,000
------------
United States Treasury Bills (2.87%)(c)
2,000,000 4.92%; 12/18/97 (cost $1,987,179) 1,987,179
------------
Total Short-term Investments
(cost $3,607,179) 3,607,179
------------
Total Investments (cost $66,742,921)
(99.56%)(a) 68,993,344
Other Assets Less Liabilities (0.44%) 301,852
------------
Net Assets (100%) $ 69,295,196
============
* Non-income producing security.
(a) Aggregate cost for federal income tax purposes is $66,742,921. At
October 31, 1997 unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 4,804,479
Gross unrealized depreciation (2,554,056)
------------
Net unrealized appreciation $ 2,250,423
============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$1,653,592 which exceeds the value of the repurchase agreement.
It is the Fund's policy to always receive, as collateral,
securities whose value, including accrued interest, will be at
least equal to 102% of the dollar amount to be paid to the Fund
under each agreement at its maturity. The value of the
securities are monitored daily. If the value falls below 101%
of the amount to be paid at maturity, additional collateral is
obtained. The Fund makes payment for such securities only upon
physical delivery or evidence of book entry transferred to the
account of its custodian.
(c) At October 31, 1997, the market value of $1,987,179 of the U.S.
Treasury Bills were pledged to cover margin requirements for
futures contracts.
Futures contracts at October 31, 1997:
(Contracts-$500 times premium/delivery
month/commitment)
Unrealized
Depreciation
------------
S&P MidCap 400 Stock Index:
22/December/Buy $ (95,250)
============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Statement of
[LOGO] Assets and Liabilities
- ------------------------------------------------------------------------------------------------------------------
The Rightime
Government The Rightime
The Rightime Securities Blue Chip
Fund Fund Fund
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $111,300,159, $7,544,813
and $186,443,544, respectively) (Note 1) $126,373,541 $8,052,313 $254,732,422
Cash 73,491 931 81,575
Receivables:
Dividends and interest 109,077 91,541 288,803
Fund shares sold 4,893 1,773 77,705
Variation margin 324,760 4,062 292,050
Prepaid expenses and other assets 38,106 3,127 61,899
------------- ------------- -------------
Total assets 126,923,868 8,153,747 255,534,454
------------- ------------- -------------
LIABILITIES
Payable for fund shares repurchased 884,685 13,782 1,085,660
Accrued expenses 31,595 6,499 53,296
Other liabilities 5,781 1,179 8,544
------------- ------------- -------------
Total liabilities 922,061 21,460 1,147,500
------------- ------------- -------------
NET ASSETS (applicable to 4,207,224; 684,505; and 7,883,113
outstanding shares, respectively) (Note 4) $126,001,807 $8,132,287 $254,386,954
============= ============= =============
Net asset value and redemption price per share $29.95 $11.88 $32.27
====== ====== ======
Maximum offering price per share $29.95 $12.47(1) $33.88(1)
====== ====== ======
NET ASSETS
At October 31, 1997 net assets consisted of:
Paid-in capital $126,178,366 $14,313,026 $204,064,296
Undistributed net investment income 1,586,565 24,101 130,214
Accumulated net realized losses on investments (16,340,256) (6,771,371) (17,660,834)
Net unrealized appreciation of investments 15,073,382 507,500 68,288,878
Net unrealized appreciation (depreciation) of futures contracts (496,250) 59,031 (435,600)
------------- ------------- -------------
$126,001,807 $8,132,287 $254,386,954
============= ============= =============
(1) Net asset value, plus 4.99% of net asset value or 4.75% of offering price.
See accompanying notes to financial statements
<CAPTION>
October 31, 1997
- ---------------------------------------------------------------------------------------------------
The Rightime
Social The Rightime
Awareness MidCap
Fund Fund
------------ ------------
<S> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $11,492,152 and $66,742,921, respectively) (Note 1) $11,462,843 $68,993,344
Cash 3,429 14,455
Receivables:
Dividends and interest 7,880 64,014
Fund shares sold 8,338 207,918
Investment securities sold -- 88,967
Variation margin 5,875 85,250
Prepaid expenses and other assets 1,812 18,003
------------ ------------
Total assets 11,490,177 69,471,951
------------ ------------
LIABILITIES
Payable for fund shares repurchased 12,936 164,628
Accrued expenses 9,185 10,524
Other liabilities 268 1,603
------------ ------------
Total liabilities 22,389 176,755
------------ ------------
NET ASSETS (applicable to 391,194 and 2,379,488 outstanding shares,
respectively) (Note 4) $11,467,788 $69,295,196
============ ============
Net asset value and redemption price per share $29.31 $29.12
======= =======
Maximum offering price per share $30.77(1) $30.57(1)
======= =======
NET ASSETS
At October 31, 1997 net assets consisted of:
Paid-in capital $11,045,516 $65,026,422
Undistributed net investment income 57,049 511,954
Undistributed net realized gains on investments 404,457 1,601,647
Net unrealized appreciation (depreciation) of investments (29,309) 2,250,423
Net unrealized depreciation of futures contracts (9,925) (95,250)
------------ ------------
$11,467,788 $69,295,196
============ ============
(1) Net asset value, plus 4.99% of net asset value or 4.75% of offering price.
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of
[LOGO] Operations
- ------------------------------------------------------------------------------------------------------------------
The Rightime
Government The Rightime
The Rightime Securities Blue Chip
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $3,896,533 $-- $5,084,864
Interest 1,715,621 555,322 1,025,958
------------ ------------ ------------
Total income 5,612,154 555,322 6,110,822
------------ ------------ ------------
EXPENSES
Administrative services (Note 2) 1,479,198 62,081 2,434,829
Investment advisory fees (Note 2) 778,525 33,110 1,432,253
Distribution costs -- 12b-1 (Notes 2 and 3) 778,525 -- 716,126
Distribution costs -- service charge (Notes 2 and 3) 389,263 20,694 716,127
Transfer agent fees (Note 2) 185,276 30,270 355,726
Accounting services (Note 2) 58,383 17,028 78,615
Legal and audit fees 38,721 8,196 64,059
Insurance 15,330 922 29,622
Reports to shareholders 21,753 1,178 41,362
Custody fees 20,835 4,034 48,552
Registration fees 22,439 9,889 21,670
Directors fees 14,369 795 26,612
Miscellaneous 12,157 1,377 15,798
------------ ------------ ------------
Total expenses 3,814,774 189,574 5,981,351
------------ ------------ ------------
Net investment income 1,797,380 365,748 129,471
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) from security transactions (3,854,154) (72,031) 42,321,971
Capital gain distribution from regulated investment companies 7,369,199 -- --
Net realized loss on futures contracts (20,966,302) (1,185,795) (67,116,929)
Increase in unrealized appreciation of investments 11,322,305 247,075 26,089,829
Increase in unrealized appreciation of futures contracts 614,750 392,125 6,698,525
------------ ------------ ------------
Net gain (loss) on investments (5,514,202) (618,626) 7,993,396
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations ($3,716,822) ($252,878) $8,122,867
============ ============ ============
See accompanying notes to financial statements
<CAPTION>
For The Year Ended October 31, 1997
- ---------------------------------------------------------------------------------------------------
The Rightime The Rightime
Social Awarenes MidCap
Fund Fund
------------ ------------
<S> <C> <C>
INVESTMENT INCOME
Income
Dividends $101,931 $760,378
Interest 206,006 1,582,723
------------ ------------
Total income 307,937 2,343,101
------------ ------------
EXPENSES
Administrative services (Note 2) 90,259 671,073
Investment advisory fees (Note 2) 53,093 394,749
Distribution costs -- 12b-1 (Notes 2 and 3) 26,547 197,374
Distribution costs -- service charge (Notes 2 and 3) 26,547 197,375
Transfer agent fees (Note 2) 11,717 111,823
Accounting services (Note 2) 12,811 47,460
Legal and audit fees 7,107 19,977
Insurance 1,281 8,043
Reports to shareholders 1,635 11,007
Custody fees 4,853 19,369
Registration fees 9,401 12,018
Directors fees 994 7,153
Organization costs -- 557
Miscellaneous 3,294 --
------------ ------------
Total expenses 249,539 1,697,978
------------ ------------
Net investment income 58,398 645,123
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain from security transactions 371,641 1,365,900
Net realized gain on futures contracts 32,260 225,405
Increase (decrease) in unrealized appreciation of investments (29,309) 2,250,423
Decrease in unrealized appreciation of futures contracts (9,925) (95,250)
------------ ------------
Net gain on investments 364,667 3,746,478
------------ ------------
Net increase in net assets resulting from operations $423,065 $4,391,601
============ ============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of
[LOGO] Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------
The Rightime
The Rightime Government
Fund Securities Fund
----------------------------------------------------------------------------
For Year For Year For Year For Year
Ended Ended Ended Ended
October 31, 1997 October 31, 1996 October 31, 1997 October 31, 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $1,797,380 $5,175,810 $365,748 $588,199
Net realized gain (loss) from security
transactions (3,854,154) 28,372,193 (72,031) 169,582
Capital gain distributions from
regulated investment companies 7,369,199 7,461,168 -- --
Net realized gain (loss) on
futures contracts (20,966,302) 61,593 (1,185,795) 593,236
Net increase (decrease) in unrealized
appreciation of investments 11,322,305 (25,822,507) 247,075 (769,653)
Net increase (decrease) in unrealized
appreciation of futures contracts 614,750 (1,181,000) 392,125 (344,438)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations (3,716,822) 14,067,257 (252,878) 236,926
Undistributed investment income
included in price of shares sold
and repurchased -- -- (2,805) (18,607)
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized
gains on investments (4,673,075) (34,013,909) -- --
Distributions from net investment
income (2,141,411) (3,245,214) (340,930) (694,855)
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets resulting
from capital share transactions
(Note 4) (29,957,165) 30,716,107 (1,983,711) (7,443,712)
------------- ------------- ------------- -------------
Total increase (decrease) (40,488,473) 7,524,241 (2,580,324) (7,920,248)
NET ASSETS
Beginning of year 166,490,280 158,966,039 10,712,611 18,632,859
------------- ------------- ------------- -------------
End of year * $126,001,807 $166,490,280 $8,132,287 $10,712,611
============= ============= ============= =============
* Including undistributed net
investment income of: $1,586,565 $1,930,596 $24,101 $2,088
============= ============= ============= =============
<CAPTION> Statement of
Changes in Net Assets
(Continued)
- ----------------------------------------------------------------------------------
The Rightime
Blue
Chip Fund
--------------------------------------
For Year For Year
Ended Ended
October 31, 1997 October 31, 1996
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income $129,471 $3,390,694
Net realized gain (loss) from security
transactions 42,321,971 37,947,305
Capital gain distributions from
regulated investment companies -- --
Net realized gain (loss) on
futures contracts (67,116,929) (1,450,289)
Net increase (decrease) in unrealized
appreciation of investments 26,089,829 (2,218,293)
Net increase (decrease) in unrealized
appreciation of futures contracts 6,698,525 (7,174,125)
------------- -------------
Net increase (decrease) in net assets
resulting from operations 8,122,867 30,495,292
Undistributed investment income
included in price of shares sold
and repurchased -- --
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized
gains on investments (640,796) (35,771,172)
Distributions from net investment
income (3,389,952) (2,047,018)
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets resulting
from capital share transactions
(Note 4) (27,344,248) 35,342,710
------------- -------------
Total increase (decrease) (23,252,129) 28,019,812
NET ASSETS
Beginning of year 277,639,083 249,619,271
------------- -------------
End of year * $254,386,954 $277,639,083
============= =============
* Including undistributed net
investment income of: $130,214 $3,408,045
============= =============
See accompanying notes to financial statements
<CAPTION> The Rightime
Social
Awareness Fund
--------------------------------------
For Year For Year
Ended Ended
October 31, 1997 October 31, 1996
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income $58,398 $123,444
Net realized gain from security transactions 371,641 1,911,874
Net realized gain on futures contracts 32,260 57,305
Net increase (decrease) in unrealized appreciation of investments (29,309) (1,099,843)
Net increase (decrease) in unrealized appreciation of futures contracts (9,925) (375)
------------- -------------
Net increase in net assets resulting from operations 423,065 992,405
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gains on investments (296,922) (1,799,322)
Distributions from net investment income (124,793) --
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets resulting from
capital share transactions (Note 4) 2,772,190 2,123,102
------------- -------------
Total increase (decrease) 2,773,540 1,316,185
NET ASSETS
Beginning of year 8,694,248 7,378,063
------------- -------------
End of year * $11,467,788 $8,694,248
============= =============
* Including undistributed net investment income of: $57,049 $123,444
============= =============
<CAPTION>
The Rightime
MidCap Fund
--------------------------------------
For Year For Year
Ended Ended
October 31, 1997 October 31, 1996
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income $645,123 $1,367,373
Net realized gain from security transactions 1,365,900 15,611,628
Net realized gain on futures contracts 225,405 181,498
Net increase (decrease) in unrealized appreciation of investments 2,250,423 (10,246,725)
Net increase (decrease) in unrealized appreciation of futures contracts (95,250) 270,000
------------- -------------
Net increase in net assets resulting from operations 4,391,601 7,183,774
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gains on investments (2,647,618) (15,773,543)
Distributions from net investment income (1,467,850) (328,544)
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets resulting from
capital share transactions (Note 4) (11,284,897) 14,135,978
------------- -------------
Total increase (decrease) (11,008,764) 5,217,665
NET ASSETS
Beginning of year 80,303,960 75,086,295
------------- -------------
End of year * $69,295,196 $80,303,960
============= =============
* Including undistributed net investment income of: $511,954 $1,334,681
============= =============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial
Highlights
[RIGHTIME LOGO] (For a Share Outstanding Throughout Each Year)
- -----------------------------------------------------------------------------------------
Net
Realized
Net and Distributions
Asset Net Unrealized from
Value Investment Gain Total Net
Beginning Income (Loss) on From Investment
of Year (Loss) Investments Operations Income
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Rightime Fund
1997 $32.09 $0.43 ($1.24) ($0.81) ($0.42)
1996 37.55 1.14 2.11 3.25 (0.77)
1995 35.50 (0.10) 7.21 7.11 (0.30)
1994 37.42 0.29 (0.49) (0.20) --
1993 34.70 (0.32) 5.47 5.15 (0.05)
- -----------------------------------------------------------------------------------------
The Rightime Government Securities Fund
1997 $12.65 $0.53 ($0.81) ($0.28) ($0.49)
1996 13.06 0.52 (0.32) 0.20 (0.61)
1995 12.93 0.68 0.08 0.76 (0.63)
1994 14.31 0.61 (1.34) (0.73) (0.65)
1993 13.16 0.66 1.21 1.87 (0.72)
- -----------------------------------------------------------------------------------------
The Rightime Blue Chip Fund
1997 $31.88 $0.03 $0.83 $0.86 ($0.40)
1996 32.84 0.40 3.52 3.92 (0.28)
1995 33.08 0.35 5.66 6.01 (0.46)
1994 33.14 0.39 (0.04) 0.35 (0.23)
1993 29.70 0.26 3.41 3.67 (0.23)
- -----------------------------------------------------------------------------------------
The Rightime Social Awareness Fund
1997 $29.09 $0.17 $1.52 $1.69 ($0.43)
1996 32.37 0.41 3.88 4.29 --
1995 26.84 0.08 5.91 5.99 (0.46)
1994 29.07 0.33 (0.72) (0.39) --
1993 29.64 (0.02) 1.76 1.74 (0.04)
- -----------------------------------------------------------------------------------------
The Rightime MidCap Fund
1997 $29.02 $0.27 $1.33 $1.60 ($0.54)
1996 32.95 0.49 2.56 3.05 (0.14)
1995 28.44 0.26 5.25 5.51 (0.45)
1994 31.07 0.32 (0.78) (0.46) --
1993 27.08 (0.03) 4.80 4.77 (0.05)
<CAPTION>
- ----------------------------------------------------------------------------
Distributions Net
from Asset
Realized Value
Capital Total End Total
Gains Distributions of Year Return (1)
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Rightime Fund
1997 ($0.91) ($1.33) $29.95 (2.77%)
1996 (7.94) (8.71) 32.09 8.96
1995 (4.76) (5.06) 37.55 23.38
1994 (1.72) (1.72) 35.50 (0.48)
1993 (2.38) (2.43) 37.42 15.49
- ----------------------------------------------------------------------------
The Rightime Government Securities Fund
1997 $-- ($0.49) $11.88 (2.10%)
1996 -- (0.61) 12.65 1.48
1995 -- (0.63) 13.06 6.00
1994 -- (0.65) 12.93 (5.15)
1993 -- (0.72) 14.31 14.60
- ----------------------------------------------------------------------------
The Rightime Blue Chip Fund
1997 ($0.07) ($0.47) $32.27 2.63%
1996 (4.60) (4.88) 31.88 12.26
1995 (5.79) (6.25) 32.84 22.31
1994 (0.18) (0.41) 33.08 1.06
1993 -- (0.23) 33.14 12.41
- ----------------------------------------------------------------------------
The Rightime Social Awareness Fund
1997 ($1.04) ($1.47) $29.31 5.77%
1996 (7.57) (7.57) 29.09 13.62
1995 -- (0.46) 32.37 22.70
1994 (1.84) (1.84) 26.84 (1.27)
1993 (2.27) (2.31) 29.07 5.82
- ----------------------------------------------------------------------------
The Rightime MidCap Fund
1997 ($0.96) ($1.50) $29.12 5.55%
1996 (6.84) (6.98) 29.02 9.65
1995 (0.55) (1.00) 32.95 20.07
1994 (2.17) (2.17) 28.44 (1.38)
1993 (0.73) (0.78) 31.07 17.93
(1) Excludes sales charge
See accompanying notes to financial statements
<CAPTION>
October 31, 1997
- -----------------------------------------------------------------------------------------
RATIOS
-----------------------------------------------------------------
Net
Investment
Net Assets Expenses to Income (Loss) Average
At The Average To Average Portfolio Commission
End of Year Net Assets Net Assets Turnover Rate Paid
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
The Rightime Fund
1997 $126,001,807 2.45% 1.16% 62.01% --
1996 166,490,280 2.45 3.11 15.40 --
1995 158,966,039 2.47 (0.27) 9.45 --
1994 149,207,566 2.51 0.78 11.50 --
1993 172,178,587 2.52 (0.83) 1.86 --
- -----------------------------------------------------------------------------------------
The Rightime Government Securities Fund
1997 $8,132,287 2.29% 4.42% 52.14% --
1996 10,712,611 2.15 4.08 109.47 --
1995 18,632,859 1.90 5.29 77.98 --
1994 25,746,377 1.90 4.62 216.70 --
1993 33,934,808 1.98 4.72 120.80 --
- -----------------------------------------------------------------------------------------
The Rightime Blue Chip Fund
1997 $254,386,954 2.09% 0.05% 39.27% $0.0294
1996 277,639,083 2.08 1.25 1.30 0.0304
1995 249,619,271 2.17 1.13 17.52 --
1994 221,681,939 2.22 1.16 0.98 --
1993 223,687,834 2.16 0.72 1.97 --
- -----------------------------------------------------------------------------------------
The Rightime Social Awareness Fund
1997 $11,467,788 2.35% 0.55% 107.98% $0.0282
1996 8,694,248 2.42 1.51 46.57 0.0500
1995 7,378,063 2.75 0.32 36.49 --
1994 7,221,772 2.56 1.04 54.85 --
1993 10,556,506 2.40 (0.19) 238.52 --
- -----------------------------------------------------------------------------------------
The Rightime MidCap Fund
1997 $69,295,196 2.15% 0.82% 107.08% $0.0360
1996 80,303,960 2.19 1.72 3.59 0.0211
1995 75,086,295 2.19 0.84 24.67 --
1994 65,252,084 2.28 1.14 0.75 --
1993 62,124,470 2.28 (0.19) 38.79 --
See accompanying notes to financial statements
</TABLE>
October 31, 1997
[RIGHTIME LOGO]
Rightime Notes to Financial Statements
Family of Funds
NOTE 1 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The Rightime Fund, The Rightime Government Securities Fund, The
Rightime Blue Chip Fund, The Rightime Social Awareness Fund, and The
Rightime MidCap Fund (the "Funds") are each a series of shares of
common stock of The Rightime Fund Inc., which is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end
management company. The company was incorporated in the state of
Maryland on November 15, 1984.
The investment objective of the Rightime Fund, the Rightime Blue Chip
Fund and the Rightime MidCap Fund is to achieve high total return
consistent with reasonable risk. The Rightime Fund seeks to achieve
this objective by concentrating in shares of registered investment
companies. The Rightime Blue Chip Fund seeks to achieve this objective
by investing in securities of well known and established companies
("Blue Chips"). The Rightime MidCap Fund seeks to achieve this
objective by investing in securities of companies with medium-size
market capitalization ("MidCaps").
The investment objective of the Rightime Social Awareness Fund is to
achieve growth of capital and its second objective is current income,
consistent with reasonable risk. The Rightime Social Awareness Fund
seeks to achieve its objective by investing in securities of companies
with prospect for above-average capital growth which, in the opinion
of the fund's advisor, show evidence in the conduct of their business,
relative to other companies in the same industry, of contributing to
the enhancement of the qualitiy of human life.
The investment objective of the Rightime Government Securities Fund is
to achieve high current income consistent with safety and liquidity of
principal. The fund seeks to achieve this objective by investing in
securities that are issued or guaranteed as to principal and interest
by the U.S. government, its agencies, authorities or instrumentalities
or secured by such securities.
The following is a summary of significant accounting policies followed
by the Funds.
SECURITY VALUATION
The Funds' investments in securities are carried at market value.
Securities listed on an exchange or quoted on a national market
system are valued at the last sales price. Other securities are valued
at the most recent bid price. Investments in regulated investment
companies are valued at the net asset value per share as quoted by the
National Association of Securities Dealers on the last business day of
the fiscal period. Investments in money market funds are valued at
cost which approximates market value. Short-term investments are
valued at amortized cost which approximates market value.
FUTURES CONTRACTS
Initial margin deposits required upon entering into futures contracts
are satisfied by the segregation of specific securities or cash,
and/or by securing a standby letter of credit from a major commercial
bank, as collateral, for the account of the broker (the Fund's agent
in acquiring the futures position). During the period the futures
contract is open, changes in the value of the contract are recognized
as unrealized gains or losses by "marking to market" on a daily basis
to reflect the market value of the contract at the end of each day's
trading. Variation margin payments are made or received depending upon
whether unrealized gains or losses are incurred. When the contract is
closed, the Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing
transaction and the Fund's basis in the contract.
The Rightime Government Securities Fund may purchase or sell future
contracts which are based on government securities, including any
index of government securities in order to protect itself against the
adverse effects of fluctuations in interest rates. Risks of entering
into these future contracts include the possibility that there may be
an illiquid market and that if the advisor's investment judgement
about the general direction of interest rates is incorrect the fund's
overall performance may be poorer than if it had not entered into any
such contracts. The other four Rightime Funds may purchase or sell
stock index future contracts as a hedge against changes in market
conditions. Risk include the possibility of an illiquid market and
that a change in the value of the contract may not correlate with
changes in the securities being hedged.
FEDERAL INCOME TAXES
No provision has been made for federal income taxes since it is the
policy of the Fund to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and to make
sufficient distributions of taxable income to relieve it from all
federal income taxes.
At October 31, 1997, the funds listed below have capital loss
carryovers available to offset future capital gains if any. The detail
for each fund is as follows:
Capital Loss
Carryover Expire
------------ -------
The Rightime Fund $16,836,508 2005
The Rightime Government Securities Fund $ 6,712,341 1998-2005
The Rightime Blue Chip Fund $18,096,434 2005
SECURITY TRANSACTIONS, INVESTMENT
INCOME AND OTHER
Security transactions are recorded on the trade date. Interest income
is recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences
are primarily due to differing treatments for wash sales and futures
transactions.
DEFERRED ORGANIZATION EXPENSE
All of the Funds' expenses in connection with its organization and the
public offering of its shares of common stock have been paid by the
Funds. Such expenses were deferred and were amortized as charges
against net investment income over a period of five years.
EQUALIZATION
The Rightime Government Securities Fund follows the accounting
practice of "equalization" whereby part of the proceeds from the
capital share transactions, equivalent to a proportionate share of the
distributable investment income on the date of the transaction, is
transferred to or from the undistributed net investment income
account. Undistributed net investment income is therefore unaffected
by capital share transactions.
USE OF ESTIMATES IN FINANCIAL STATEMENTS
In preparing financial statements in conformity with generally
accepted accounting principals, management makes estimates and
assumptions that effect the reported amounts of assets and liabilities
at the date of the financial statements, as well as the reported
amounts of income and expenses during the period. Actual results may
differ from the estimates.
NOTE 2 - INVESTMENT ADVISORY FEE AND
OTHER TRANSACTIONS WITH AFFILIATES
The Investment Advisor, Rightime Econometrics, Inc., is paid a monthly
fee based on an annual rate (summarized below) of the Funds' average
daily net assets.
The Funds' Administrator, Rightime Administrators, Inc., is paid a
monthly fee based on an annual rate (summarized below) of the Funds'
average daily net assets for providing office facilities and certain
administrative services.
The Funds' Distributor, Lincoln Investment Planning, Inc., is paid a
monthly fee based on an annual rate (summarized below) of the Funds'
average daily net assets for costs incurred in connection with the
sale of the Funds' capital stock (see Note 3).
A summary of annual fee rates applied to average daily net assets are
as follows:
Advisory Administration Distribution
Fee Fee Costs
-------- -------------- ------------
The Rightime Fund .50% .95% .75%
The Rightime
Government
Securities Fund .40% .75% .25%
The Rightime
Blue Chip Fund .50% .85% .50%
The Rightime
Social Awareness Fund .50% .85% .50%
The Rightime
MidCap Fund .50% .85% .50%
During the year ended October 31, 1997, the Distributor received
commissions as an underwriter and a retail dealer of Fund shares as
follows:
The Rightime Government Securities Fund $ 24,025
The Rightime Blue Chip Fund $872,031
The Rightime Social Awareness Fund $ 71,916
The Rightime MidCap Fund $180,663
Lincoln Investment Planning, Inc., also provides the Funds with
transfer agent and accounting and recordkeeping services. Aggregate
transfer agent and accounting services fees received by Lincoln
Investment Planning, Inc. were $565,484 and $214,297, respectively.
During the year ended October 31, 1997, Lincoln Investment Planning,
Inc. voluntarily waived fees of $8,977 and $12,811, respectively, for
transfer agent and accounting services provided to the Rightime Social
Awareness Fund. During the year ended October 31, 1997, Lincoln
Investment Planning, Inc. voluntarily waived fees of $11,488 and
$8,767, respectively, for transfer agent and accounting services
provided to the Rightime Government Securities Fund.
Certain officers and directors of the company are also officers and/or
directors of the Advisor, Administrator, Transfer Agent and/or
Distributor.
NOTE 3 - DISTRIBUTION COSTS
The Fund's Board of Directors, including a majority of the Directors
who are not "interested persons" of the Funds as defined in the
Investment Company Act of 1940, have adopted a distribution plan
pursuant to Rule 12b-1 of the Act. The Plan regulates the manner in
which a regulated investment company may assume costs of distributing
and promoting the sales of its shares.
The Plan provides that the Funds may incur certain costs which may not
exceed the rates detailed above per annum of the Funds' average daily
net assets for payments to the Distributor for items such as
advertising expenses, selling expenses, commissions or travel
reasonably intended to result in sales of shares of the Funds and for
commissions for Fund shares sold by representatives of the Distributor
or other broker/dealers. The distribution costs include a service
charge based on an annual rate of .25% of the Funds' average daily net
assets.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
NOTE 4 - CAPITAL SHARES
The Rightime Fund, Inc. has 500,000,000 shares of $.01 par value stock authorized which may
be allocated to any series. Currently, 50,000,000 shares have been allocated to the Rightime
Fund and 20,000,000 shares to each of the other four Funds. Transactions in capital stock
were as follows:
The Rightime Fund
---------------------------------------------------------
1997 1996
--------------------------- ---------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold 501,144 $15,711,129 468,508 $16,805,846
Shares issued in reinvestment
of distributions 213,105 6,783,154 1,129,061 37,071,501
------------ ------------ ------------ ------------
714,249 22,494,283 1,597,569 53,877,347
Shares redeemed (1,695,912) (52,451,448) (641,747) (23,161,240)
------------ ------------ ------------ ------------
Net increase (decrease) (981,663) ($29,957,165) 955,822 $30,716,107
============ ============ ============ ============
<CAPTION>
The Rightime Government Securities Fund
---------------------------------------------------------
1997 1996
--------------------------- ---------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
<C> <C> <C> <C>
Shares sold 162,567 $1,889,088 70,161 $905,052
Shares issued in reinvestment
of distributions 27,458 324,160 50,386 655,134
------------ ------------ ------------ ------------
190,025 2,213,248 120,547 1,560,186
Shares redeemed (352,560) (4,196,959) (699,840) (9,003,898)
------------ ------------ ------------ ------------
Net increase (decrease) (162,535) ($1,983,711) (579,293) ($7,443,712)
============ ============ ============ ============
<CAPTION>
The Rightime Blue Chip Fund
---------------------------------------------------------
1997 1996
--------------------------- ---------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
Shares sold 988,116 $33,214,473 891,634 $30,005,701
Shares issued in reinvestment
of distributions 119,492 4,003,675 1,175,013 37,609,632
------------ ------------ ------------ ------------
1,107,608 37,218,148 2,066,647 67,615,333
Shares redeemed (1,932,293) (64,562,396) (959,181) (32,272,623)
------------ ------------ ------------ ------------
Net increase (decrease) (824,685) ($27,344,248) 1,107,466 $35,342,710
============ ============ ============ ============
<CAPTION>
The Rightime Social Awareness Fund
---------------------------------------------------------
1997 1996
--------------------------- ---------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
Shares sold 162,214 $4,900,176 43,737 $1,472,939
Shares issued in reinvestment
of distributions 13,915 411,036 60,687 1,764,746
------------ ------------ ------------ ------------
176,129 5,311,212 104,424 3,237,685
Shares redeemed (83,817) (2,539,022) (33,480) (1,114,583)
------------ ------------ ------------ ------------
Net increase (decrease) 92,312 $2,772,190 70,944 $2,123,102
============ ============ ============ ============
<CAPTION>
The Rightime MidCap Fund
---------------------------------------------------------
1997 1996
--------------------------- ---------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
Shares sold 248,536 $7,262,137 261,155 $8,362,050
Shares issued in reinvestment
of distributions 141,518 4,094,113 547,119 16,052,380
------------ ------------ ------------ ------------
390,054 11,356,250 808,274 24,414,430
Shares redeemed (777,511) (22,641,147) (320,085) (10,278,452)
------------ ------------ ------------ ------------
Net increase (decrease) (387,457) ($11,284,897) 488,189 $14,135,978
============ ============ ============ ============
</TABLE>
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term investments
during the year ended October 31, 1997 were as follows:
Purchases Sales
------------- -------------
The Rightime Fund $149,372,229 $ 71,234,171
The Rightime Government
Securities Fund $ 4,925,000 $ 3,511,094
The Rightime Blue Chip Fund $131,085,427 $101,477,007
The Rightime Social
Awareness Fund $ 21,179,077 $ 10,554,331
The Rightime MidCap Fund $137,651,848 $ 75,882,007
[RIGHTIME LOGO]
Rightime Report of Independent
Family of Funds Certified Public Accountants
To the Shareholders
and Board of Directors
of The Rightime Fund, Inc.
We have audited the accompanying statement of assets and liabilities
of The Rightime Fund, The Rightime Government Securities Fund, The
Rightime Blue Chip Fund, The Rightime Social Awareness Fund and The
Rightime MidCap Fund, each a series of shares of common stock of The
Rightime Fund, Inc., including the portfolios of investments, as of
October 31, 1997 and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years in the period then ended and the financial highlights for each
of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of October 31, 1997 by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of The Rightime Fund, The Rightime Government
Securities Fund, The Rightime Blue Chip Fund, The Rightime Social
Awareness Fund and The Rightime MidCap Fund as of October 31, 1997,
the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended
and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
November 26, 1997
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime Fund
Family of Funds Performance Comparison
The fiscal year ending October 31, 1997 was the third straight year of
excellent returns for equity investors. Although there have been
turbulent months, investors have been rewarded for their perseverance.
Most broad stock indices performed strongly. Large capitalization
stocks and technology issues were strongest over the previous twelve
month period. However, as October wound down, economic upheaval in
Southeast Asia made investing in multi-national stocks and technology
companies riskier.
Unfortunately, the Rightime Fund missed a good portion of 1997 gains.
February and March were difficult months in the market. Smaller
capitalization stocks and technology issues were declining rapidly. By
March even the S&P 500 had given back much of its year-to-date
returns. Our model, the Rightime Market Model (RTMM(registered
trademark)), turned negative in April and we limited our exposure to
equities. Our model did not tell us to buy equities until July.
Typically, we would expect to see improvement in fundamental
indicators, followed by monetary indicators, then improved sentiment,
and finally the market building momentum changes. These market
indicators reversed their normal course of action in the spring of
1997. Investors were willing to believe that the fundamentals would
improve eventually. This drove stocks higher. RTE's risk-averse nature
kept us out of the market until the fundamentals supported the rise.
The bulk of the gains which were registered by investors this year
took place during those twelve weeks.
Since April we have seen a downward trend in long-term interest rates.
Earnings have remained strong although not as strong as in 1996.
Unemployment is at near-record levels and yet there has been limited
data to indicate that the economy is so strong that inflation may
become a problem. Since July, we have remained invested in equities in
accordance with the Rightime Market Model (RTMM(registered trademark))
and have been rewarded with moderate gains.
Performance Comparison
The "Performance Comparison" chart assesses the Rightime Fund's
performance against the Lipper Growth Fund Index, a broad based index.
The "Risk Adjusted Performance Comparison" more closely reflects the
fund's performance as compared to a consistent risk level.
The Rightime Fund utilizes a modeled approach to investing which
attempts to minimize risk by moving assets to money market equivalent
investments during periods in which the market appears to be
overvalued. This approach, over full market cycles, tends to invest in
low risk, or money market-like securities approximately half of the
time. In order to provide an equivalent risk level this comparison
assumes that assets are invested half in the Lipper Growth Fund Index
and half in a money market fund index. This balanced index approaches
the risk level of each fund that has been in existence for at least
one full market cycle and therefore provides a more meaningful
performance comparison.
The performance shown represents past performance and is not a
guarantee of future results. A mutual fund's share price and
investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than the original
cost.
Average annual total returns are historical in nature and measure net
investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends.
Average Annual Total Return
Since Inception
1 Year 5 Years 10 Years Sept. 17, 1985
- -2.77% 8.48% 8.26% 10.24%
Performance Comparison
Rightime Fund
Lipper Growth Fund Index
Money Market Fund Index
Comparison of change in
value of $10,000 investment
in the Rightime Fund,
Lipper Growth Fund Index
and Money Market Fund
Index.
Risk-adjusted Performance Comparison
Rightime Fund
Balanced Reference Index (50% Lipper/50% Money Market)
Money Market Fund Index
Risk-adjusted
comparison of change in
value of $10,000 investment
in the Rightime Fund,
Balanced Reference Index
(50% Lipper/50% Money
Market), and Money
Market Fund Index.
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime Government Securities Fund
Family of Funds Performance Comparison
The fiscal year ending October 31, 1997 has been a good environment
for investors in the fixed-income arena. Declining interest rates over
the last six months of the fiscal year provided investors with
excellent returns. Fixed-income securities with long durations and/or
below investment grade quality were the top performing securities over
the fiscal year.
The fiscal year began with the fund holding shorter-maturity
securities and their equivalent until the beginning of December.
During this time, the inactivity of the Federal Reserve and the
continued perception of inactivity caused a decline in bond yields.
When the Rightime Government Securities Fund did expose itself to the
market in December it coincided with the statement of Federal Reserve
Chairman Alan Greenspan that investors had "irrational exuberance."
After some turbulence, the market remained flat. We built a more
conservative position again in April and extended maturities in July.
April was the beginning of what has been a long trend downward for
bond yields resulting in rising bond prices. The equity markets may
have received much of the press concerning the troubled Asian economy
but there has been a marked effect within the fixed-income world. Most
notably, there has been a perceived reduction in the likelihood of the
Federal Reserve raising rates to combat inflation. This has powered
bond prices even higher. The Rightime Government Securities Fund
adheres to the allocation determined by the Rightime Market Model
which has been positive on fixed-income securities since July.
Performance Comparison
The "Performance Comparison" chart assesses the Rightime Government
Securities Fund's performance against the Shearson Lehman Hutton U.S.
Treasury Intermediate Index, a broad based fixed income index.
The performance shown represents past performance and is not a
guarantee of future results. A mutual fund's share price and
investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than the original
cost.
Average annual total returns are historical in nature and measure net
investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends reflecting the 4.75% sales charge.
(At inception, the Government Securities Fund was no load.)
Average Annual Total Return
Since Inception
1 Year 5 Years 10 Years Jan. 2, 1987
- -6.75% 1.75% 4.59% 3.80%
Performance Comparison
Rightime Government Securities Fund
Shearson Lehman Hutton U.S. Treasury Intermediate Index
Money Market Fund Index
Comparison of change in
value of $10,000 investment
in the Rightime Government Securities
Fund, Shearson Lehman
Hutton U.S. Treasury
Intermediate Index and
Money Market Fund Index.
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime Blue Chip Fund
Family of Funds Performance Comparison
The fiscal year ending October 31, 1997 was the straight year of
excellent returns for equity investors. Although there have been
turbulent months, investors have been rewarded for their perseverance.
Most broad stock indices performed strongly. Large capitalization
stocks and technology issues were strongest over the previous twelve
month period. However, as October wound down, economic upheaval in
Southeast Asia made investing in multi-national stocks and technology
companies riskier.
Unfortunately, the Rightime Blue Chip Fund missed much of these gains.
February and March were difficult months in the market. Smaller
capitalization stocks and technology issues were declining rapidly. By
March even the S&P 500 had given back much of its year-to-date
returns. Our model, the Rightime Market Model (RTMM(registered
trademark)), turned negative in April and we limited our exposure to
equities. Our model did not tell us to buy equities until July.
Typically, we would expect to see improvement in fundamental
indicators, followed by monetary indicators, then improved sentiment,
and finally the market building momentum changes. These market
indicators reversed their normal course of action in the spring of
1997. Investors were willing to believe that the fundamentals would
improve eventually. This drove stocks higher. RTE's risk-averse nature
kept us out of the market until the fundamentals supported the rise.
The bulk of the gains which were registered by investors this year
took place during those twelve weeks.
Since April we have seen a downward trend in long-term interest rates.
Earnings have remained strong although not as strong as in 1996.
Unemployment is at near-record levels and yet there has been limited
data to indicate that the economy is so strong that inflation may
become a problem. Since July, we have remained invested in equities in
accordance with the Rightime Market Model (RTMM(registered trademark))
and have been rewarded with moderate gains.
Performance Comparison
The "Performance Comparison" chart assesses the Rightime Blue Chip
Fund's performance against the S&P 500 Index, an unmanaged index of
common stock prices. The "Risk Adjusted Performance Comparison" more
closely reflects the fund's performance as compared to a consistent
risk level.
The Rightime Blue Chip Fund utilizes a modeled approach to investing
which attempts to minimize risk by moving assets to money market
equivalent investments during periods in which the market appears to
be overvalued. This approach, over full market cycles, tends to invest
in low risk, or money market-like securities approximately half of the
time. In order to provide an equivalent risk level this comparison
assumes that assets are invested half in the S&P 500 Index and half in
a money market fund index. This balanced index approaches the risk
level of each fund that has been in existence for at least one full
market cycle and therefore provides a more meaningful performance
comparison.
The performance shown represents past performance and is not a
guarantee of future results. A mutual fund's share price and
investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than the original
cost.
Average annual total returns are historical in nature and measure net
investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends and reflecting the 4.75% sales
charge.
Average Annual Total Return
Since Inception
1 Year 5 Years 10 Years July 22, 1987
- -2.24% 8.80% 8.76% 8.63%
Performance Comparison
Rightime Blue Chip Fund
S&P 500 Index
Money Market Fund Index
Comparison of change in
value of $10,000 investment
in the Rightime Blue
Chip Fund, S&P 500 Index
and Money Market Fund
Index.
Risk-adjusted Performance Comparison
Rightime Blue Chip Fund
Balanced Reference Index (50% S&P 500/50% Money Market)
Money Market Fund Index
Risk-adjusted
comparison of change in
value of $10,000 investment
in the Rightime Blue
Chip Fund, Balanced
Reference Index (50%
S&P/50% Money Market),
and Money Market Fund
Index.
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime
Family of Funds Social Awareness Fund
Performance Comparison
The fiscal year ending October 31, 1997 was the third straight year of
excellent returns for equity investors. Although there have been
turbulent months, investors have been rewarded for their perseverance.
Most broad stock indices performed strongly. Large capitalization
stocks and technology issues were strongest over the previous twelve
month period. However, as October wound down, economic upheaval in
Southeast Asia made investing in multi-national stocks and technology
companies riskier.
Unfortunately, the Rightime Social Awareness Fund missed much of these
gains. February and March were difficult months in the market. Smaller
capitalization stocks and technology issues were declining rapidly. By
March even the S&P 500 had given back much of its year-to-date
returns. Our model, the Rightime Market Model (RTMM(registered
trademark)), turned negative in April and we limited our exposure to
equities. Our model did not tell us to buy equities until July.
Typically, we would expect to see improvement in fundamental
indicators, followed by monetary indicators, then improved sentiment,
and finally the market building momentum changes. These market
indicators reversed their normal course of action in the spring of
1997. Investors were willing to believe that the fundamentals would
improve eventually. This drove stocks higher. RTE's risk-averse nature
kept us out of the market until the fundamentals supported the rise.
The bulk of the gains which were registered by investors this year
took place during those twelve weeks.
Since April we have seen a downward trend in long-term interest rates.
Earnings have remained strong although not as strong as in 1996.
Unemployment is at near-record levels and yet there has been limited
data to indicate that the economy is so strong that inflation may
become a problem. Since July, we have remained invested in equities in
accordance with the Rightime Market Model (RTMM(registered trademark))
and have been rewarded with moderate gains.
Performance Comparison
The "Performance Comparison" chart assesses the Rightime Social
Awareness Fund's performance against the Lipper Growth Fund Index, a
broad based index. The "Risk Adjusted Performance Comparison" more
closely reflects the fund's performance as compared to a consistent
risk level.
The Social Awareness Fund utilizes a modeled approach to investing
which attempts to minimize risk by moving assets to money market
equivalent investments during periods in which the market appears to
be overvalued. This approach, over full market cycles, tends to invest
in low risk, or money market-like securities approximately half of the
time. In order to provide an equivalent risk level this comparison
assumes that assets are invested half in the Lipper Growth Fund Index
and half in a money market fund index. This balanced index approaches
the risk level of each fund that has been in existence for at least
one full market cycle and therefore provides a more meaningful
performance comparison.
The performance shown represents past performance and is not a
guarantee of future results. A mutual fund's share price and
investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than the original
cost.
Average annual total returns are historical in nature and measure net
investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends and reflecting the 4.75% sales
charge.
Average Annual Total Return
Since Inception
1 Year 5 Years March 1, 1990
.75% 7.97% 7.91%
Performance Comparison
Rightime Social Awareness Fund
Lipper Growth Fund Index
Money Market Fund Index
Comparison of change in
value of $10,000 investment
in the Rightime Social
Awareness Fund, Lipper
Growth Fund Index and
Money Market Fund Index.
Risk-adjusted Performance Comparison
Rightime Social Awareness Fund
Balanced Reference Index (50% Lipper/50% Money Market)
Money Market Fund Index
Risk-adjusted
comparison of change in
value of $10,000 investment
in the Rightime Social
Awareness Fund, Balanced
Reference Index (50%
Lipper/50% Money Market), and Money
Market Fund Index.
[RIGHTIME LOGO]
October 31, 1997
Rightime The Rightime MidCap Fund
Family of Funds Performance Comparison
The fiscal year ending October 31, 1997 was the third straight year of
excellent returns for equity investors. Although there have been
turbulent months, investors have been rewarded for their perseverance.
Most broad stock indices performed strongly. Large capitalization
stocks and technology issues were strongest over the previous twelve
month period. The Standard & Poor's MidCap 400 Index had returns of
just under the market leaders with less volatility. However, as
October wound down, economic upheaval in Southeast Asia made investing
in multi-national stocks and technology companies riskier.
Unfortunately, the Rightime MidCap Fund missed much of these gains.
February and March were difficult months in the market. Smaller
capitalization stocks and technology issues were declining rapidly. By
March even the S&P 500 had given back much of its year-to-date
returns. Our model, the Rightime Market Model (RTMM(registered
trademark)), turned negative in April and we limited our exposure
to equities. Our model did not tell us to buy equities until July.
Typically, we would expect to see improvement in fundamental
indicators, followed by monetary indicators, then improved sentiment,
and finally the market building momentum changes. These market
indicators reversed their normal course of action in the spring of
1997. Investors were willing to believe that the fundamentals would
improve eventually. This drove stocks higher. RTE's risk-averse nature
kept us out of the market until the fundamentals supported the rise.
The bulk of the gains which were registered by investors this year
took place during those twelve weeks.
Since April we have seen a downward trend in long-term interest rates.
Earnings have remained strong although not as strong as in 1996.
Unemployment is at near-record levels and yet there has been limited
data to indicate that the economy is so strong that inflation may
become a problem. Since July, we have remained invested in equities in
accordance with the Rightime Market Model (RTMM(registered trademark))
and have been rewarded with moderate gains.
Performance Comparison
The "Performance Comparison" chart assesses the Rightime MidCap Fund's
performance against the Lipper Growth Fund Index, a broad based index.
The "Risk Adjusted Performance Comparison" more closely reflects the
fund's performance as compared to a consistent risk level.
The MidCap Fund utilizes a modeled approach to investing which
attempts to minimize risk by moving assets to money market equivalent
investments during periods in which the market appears to be
overvalued. This approach, over full market cycles, tends to invest in
low risk, or money market-like securities approximately half of the
time. In order to provide an equivalent risk level this comparison
assumes that assets are invested half in the Lipper Growth Fund Index
and half in a money market fund index. This balanced index approaches
the risk level of each fund that has been in existence for at least
one full market cycle and therefore provides a more meaningful
performance comparison.
The performance shown represents past performance and is not a
guarantee of future results. A mutual fund's share price and
investment return will vary with market conditions, and the principal
value of shares, when redeemed, may be more or less than the original
cost.
Average annual total returns are historical in nature and measure net
investment income and capital gain or loss from portfolio investments
assuming reinvestment of dividends and reflecting the 4.75% sales
charge.
Average Annual Total Return
Since Inception
1 Year 5 Years Nov. 11, 1991
.53% 9% 8.95%
Performance Comparison
Rightime MidCap Fund
Lipper Growth Fund Index
Money Market Fund Index
Comparison of change in
value of $10,000 investment
in the Rightime
MidCap Fund, Lipper
Growth Fund Index and
Money Market Fund Index.
Risk-adjusted Performance Comparison
Rightime MidCap Fund
Balanced Reference Index (50% Lipper/50% Money Market)
Money Market Fund Index
Risk-adjusted
comparison of change in
value of $10,000 investment
in the Rightime
MidCap Fund, Balanced
Reference Index (50%
Lipper/50% Money
Market), and Money
Market Fund Index.
<TABLE>
<CAPTION>
[RIGHTIME LOGO] Officers and Directors
of The Rightime Fund, Inc.
- -------------------------------------------------------------------------------------------------------
Name Principal Occupation
and Address Position and Office during the past five years
- ---------------------------- ---------------------- ----------------------------------------
<S> <C> <C>
David J. Rights* Chairman of the Board, President of Rightime Econometrics, Inc., a
1095 Rydal Road President, and registered investment advisor. Consultant
Rydal, PA 19046 Treasurer to and registered representative of Lincoln
Investment Planning, Inc., a registered
investment advisor and broker dealer.
Edward S. Forst Sr.* Director, Vice-President Chairman of the Board,
The Forst Pavilion and Secretary Lincoln Investment Planning
218 Glenside Avenue Inc., a registered investment advisor
Wyncote, PA 19095 and broker dealer.
Francis X. Barrett Director Director and Member of the Finance and
Reading, PA 19805 Pension Committee, Sacred Heart
Hospital, Formerly, Executive Director,
National Catholic Education Association,
Pastor, Church of Holy Guardian Angels,
Reading, PA.
Dr. Winifred L. Tillery Director Superintendent of Schools,
Mt. Laurel, NJ 08054 Camden County, New Jersey.
Dr. Carol A. Wacker Director Former Assistant Superintendent for Senior
Encinitas, CA 92024 High Schools, the Philadelphia School
District.
- ------------
* "Interested" director as defined
in the Investment Company Act
of 1940 (the "1940 ACT").
See accompanying notes to financial statements
</TABLE>
The Rightime Family of Funds
218 Glenside Ave.
Wyncote, PA 19095-1594
Client Services Department
800-866-9393
Administrator
Rightime Administrators Inc.
218 Glenside Ave.
Wyncote, PA 19095-1594
Investment Advisor
Rightime Econometrics Inc.
1095 Rydal Road
Rydal, PA 19046
Distributor
Lincoln Investment Planning, Inc.
218 Glenside Ave.
Wyncote, PA 19095-1595
Custodian
CoreStates Bank N.A.
Broad & Chestnut Streets
Philadelphia, PA 19101
Transfer Agent
Lincoln Investment Planning, Inc.
218 Glenside Ave.
Wyncote, PA 19095-1595
Legal Counsel
Stradley, Ronon, Stevens & Young
2600 One Commerce Square
Philadelphia, PA 19103
Auditors
Tait, Weller & Baker
Eight Penn Center, Suite 800
Philadelphia, PA 19103
See accompanying notes to financial statements
Printed on recycled paper
This page intentionally left blank
This page intentionally left blank
[LOGO]
Rightime
Family of Funds
218 Glenside Ave.
Wyncote, PA 19095-1594
BULK RATE
U.S. POSTAGE
PAID
LANCASTER, PA
PERMIT NO. 1793
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE RIGHTIME FAMILY OF FUNDS EXHIBIT 27 - FINANCIAL DATA SCHEDULE.
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> RIGHTIME BLUE CHIP FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 186,443,544
<INVESTMENTS-AT-VALUE> 254,732,422
<RECEIVABLES> 658,558
<ASSETS-OTHER> 61,899
<OTHER-ITEMS-ASSETS> 81,575
<TOTAL-ASSETS> 255,534,454
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,147,500
<TOTAL-LIABILITIES> 1,147,500
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 204,064,296
<SHARES-COMMON-STOCK> 7,883,113
<SHARES-COMMON-PRIOR> 8,707,798
<ACCUMULATED-NII-CURRENT> 130,214
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (17,660,834)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 67,853,278
<NET-ASSETS> 254,386,954
<DIVIDEND-INCOME> 5,084,864
<INTEREST-INCOME> 1,025,958
<OTHER-INCOME> 0
<EXPENSES-NET> (5,981,351)
<NET-INVESTMENT-INCOME> 129,471
<REALIZED-GAINS-CURRENT> (24,794,958)
<APPREC-INCREASE-CURRENT> 32,788,354
<NET-CHANGE-FROM-OPS> 8,122,867
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,389,952)
<DISTRIBUTIONS-OF-GAINS> (640,796)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 988,116
<NUMBER-OF-SHARES-REDEEMED> (1,932,293)
<SHARES-REINVESTED> 119,492
<NET-CHANGE-IN-ASSETS> (23,252,129)
<ACCUMULATED-NII-PRIOR> 3,408,045
<ACCUMULATED-GAINS-PRIOR> 7,757,570
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,432,253
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,432,253
<AVERAGE-NET-ASSETS> 286,387,608
<PER-SHARE-NAV-BEGIN> 31.88
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0.83
<PER-SHARE-DIVIDEND> 0.40
<PER-SHARE-DISTRIBUTIONS> 0.07
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 32.27
<EXPENSE-RATIO> 2.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE RIGHTIME FAMILY OF FUNS EXHIBIT 27 - FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> RIGHTIME FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 111,300,159
<INVESTMENTS-AT-VALUE> 126,373,541
<RECEIVABLES> 438,730
<ASSETS-OTHER> 38,106
<OTHER-ITEMS-ASSETS> 73,491
<TOTAL-ASSETS> 126,923,868
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 922,061
<TOTAL-LIABILITIES> 922,061
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 126,178,366
<SHARES-COMMON-STOCK> 4,207,224
<SHARES-COMMON-PRIOR> 5,188,887
<ACCUMULATED-NII-CURRENT> 1,586,565
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (16,340,256)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 14,577,132
<NET-ASSETS> 126,001,807
<DIVIDEND-INCOME> 3,896,533
<INTEREST-INCOME> 1,715,621
<OTHER-INCOME> 0
<EXPENSES-NET> (3,814,774)
<NET-INVESTMENT-INCOME> 1,797,380
<REALIZED-GAINS-CURRENT> (17,451,257)
<APPREC-INCREASE-CURRENT> 11,937,055
<NET-CHANGE-FROM-OPS> (3,716,822)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,141,411)
<DISTRIBUTIONS-OF-GAINS> (4,673,075)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 213,105
<NUMBER-OF-SHARES-REDEEMED> (1,695,912)
<SHARES-REINVESTED> 501,144
<NET-CHANGE-IN-ASSETS> (40,488,473)
<ACCUMULATED-NII-PRIOR> 1,930,596
<ACCUMULATED-GAINS-PRIOR> 5,784,076
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 778,525
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 778,525
<AVERAGE-NET-ASSETS> 155,596,183
<PER-SHARE-NAV-BEGIN> 32.09
<PER-SHARE-NII> 0.43
<PER-SHARE-GAIN-APPREC> (1.29)
<PER-SHARE-DIVIDEND> 0.42
<PER-SHARE-DISTRIBUTIONS> 0.91
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.90
<EXPENSE-RATIO> 2.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE RIGHTIME FAMILY OF FUNDS EXHIBIT 27 - FINANCIAL DATA SCHEDULE.
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> RIGHTIME GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 7,544,813
<INVESTMENTS-AT-VALUE> 8,052,313
<RECEIVABLES> 97,376
<ASSETS-OTHER> 3,127
<OTHER-ITEMS-ASSETS> 931
<TOTAL-ASSETS> 8,153,747
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 21,460
<TOTAL-LIABILITIES> 21,460
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,313,026
<SHARES-COMMON-STOCK> 684,505
<SHARES-COMMON-PRIOR> 847,040
<ACCUMULATED-NII-CURRENT> 24,101
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (6,771,371)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 566,531
<NET-ASSETS> 8,132,287
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 555,322
<OTHER-INCOME> 0
<EXPENSES-NET> (189,574)
<NET-INVESTMENT-INCOME> 365,748
<REALIZED-GAINS-CURRENT> (1,257,826)
<APPREC-INCREASE-CURRENT> 639,200
<NET-CHANGE-FROM-OPS> (252,878)
<EQUALIZATION> (2,805)
<DISTRIBUTIONS-OF-INCOME> (340,930)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 162,567
<NUMBER-OF-SHARES-REDEEMED> (352,560)
<SHARES-REINVESTED> 27,458
<NET-CHANGE-IN-ASSETS> (2,580,324)
<ACCUMULATED-NII-PRIOR> 2,088
<ACCUMULATED-GAINS-PRIOR> (5,513,545)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33,110
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 33,110
<AVERAGE-NET-ASSETS> 8,270,388
<PER-SHARE-NAV-BEGIN> 12.65
<PER-SHARE-NII> 0.53
<PER-SHARE-GAIN-APPREC> (0.81)
<PER-SHARE-DIVIDEND> 0.49
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.88
<EXPENSE-RATIO> 2.29
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE RIGHTIME FAMILY OF FUNDS EXHIBIT 27 - FINANCIAL DATA SCHEDULE.
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<SERIES>
<NUMBER> 5
<NAME> RIGHTIME MIDCAP FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 66,742,921
<INVESTMENTS-AT-VALUE> 68,993,344
<RECEIVABLES> 446,149
<ASSETS-OTHER> 18,003
<OTHER-ITEMS-ASSETS> 14,465
<TOTAL-ASSETS> 69,471,961
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 176,755
<TOTAL-LIABILITIES> 176,755
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 65,026,422
<SHARES-COMMON-STOCK> 2,379,488
<SHARES-COMMON-PRIOR> 2,766,945
<ACCUMULATED-NII-CURRENT> 511,594
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,601,647
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,155,173
<NET-ASSETS> 69,295,196
<DIVIDEND-INCOME> 760,378
<INTEREST-INCOME> 1,582,723
<OTHER-INCOME> 0
<EXPENSES-NET> (1,697,978)
<NET-INVESTMENT-INCOME> 645,123
<REALIZED-GAINS-CURRENT> 1,591,305
<APPREC-INCREASE-CURRENT> 2,155,173
<NET-CHANGE-FROM-OPS> 4,391,601
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,467,850)
<DISTRIBUTIONS-OF-GAINS> 2,647,618
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 248,536
<NUMBER-OF-SHARES-REDEEMED> (777,511)
<SHARES-REINVESTED> 141,518
<NET-CHANGE-IN-ASSETS> (11,008,764)
<ACCUMULATED-NII-PRIOR> 1,334,681
<ACCUMULATED-GAINS-PRIOR> 2,657,960
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 394,749
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 394,749
<AVERAGE-NET-ASSETS> 78,918,344
<PER-SHARE-NAV-BEGIN> 29.02
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 1.33
<PER-SHARE-DIVIDEND> 0.54
<PER-SHARE-DISTRIBUTIONS> .096
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.12
<EXPENSE-RATIO> 2.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE RIGHTIME FAMILY OF FUNDS EXHIBIT 27 - FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ANNUAL REPORT TO SHAREHOLDERS DATED OCTOBER 31, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> RIGHTIME SOCIAL AWARENESS FUND
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 11,492,152
<INVESTMENTS-AT-VALUE> 11,462,843
<RECEIVABLES> 22,093
<ASSETS-OTHER> 1,812
<OTHER-ITEMS-ASSETS> 3,429
<TOTAL-ASSETS> 11,490,177
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,389
<TOTAL-LIABILITIES> 22,389
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,045,516
<SHARES-COMMON-STOCK> 391,194
<SHARES-COMMON-PRIOR> 298,882
<ACCUMULATED-NII-CURRENT> 57,049
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 404,457
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (39,234)
<NET-ASSETS> 11,467,788
<DIVIDEND-INCOME> 101,931
<INTEREST-INCOME> 206,006
<OTHER-INCOME> 0
<EXPENSES-NET> (249,539)
<NET-INVESTMENT-INCOME> 58,398
<REALIZED-GAINS-CURRENT> 403,901
<APPREC-INCREASE-CURRENT> (39,234)
<NET-CHANGE-FROM-OPS> 423,065
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (124,793)
<DISTRIBUTIONS-OF-GAINS> (296,922)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 162,214
<NUMBER-OF-SHARES-REDEEMED> (83,817)
<SHARES-REINVESTED> 13,915
<NET-CHANGE-IN-ASSETS> 2,773,540
<ACCUMULATED-NII-PRIOR> 123,444
<ACCUMULATED-GAINS-PRIOR> 297,478
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 53,093
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 53,093
<AVERAGE-NET-ASSETS> 10,626,282
<PER-SHARE-NAV-BEGIN> 29.09
<PER-SHARE-NII> 0.17
<PER-SHARE-GAIN-APPREC> 1.52
<PER-SHARE-DIVIDEND> 0.43
<PER-SHARE-DISTRIBUTIONS> 1.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 29.31
<EXPENSE-RATIO> 2.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
