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Previous: PAINEWEBBER INCOME PROPERTIES SEVEN LIMITED PARTNERSHIP, NT 10-K, 1998-12-29 |
Next: DREW INDUSTRIES INCORPORATED, 8-K, 1998-12-29 |
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
The Rightime Fund
The Rightime Blue Chip Fund
The Rightime Social Awareness Fund
The Rightime MidCap Fund
Annual Report
October 31, 1998
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
Table of Contents
Letter to Shareholders 3
Portfolios
The Rightime Fund 5
The Rightime Blue Chip Fund 7
The Rightime Social Awareness Fund 16
The Rightime MidCap Fund 19
Financial Statements
Statement of Assets & Liabilities 26
Statement of Operations 27
Statement of Changes in Net Assets 28
Financial Highlights 30
Notes to Financial Statements
Notes & Schedules 32
Report of Independent Certified Public Accountants 37
Performance Comparisons
The Rightime Fund 38
The Rightime Blue Chip Fund 40
The Rightime Social Awareness Fund 42
The Rightime MidCap Fund 44
Officers and Directors 46
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
1998
Annual Report
THE RIGHTIME FUND, INC.
Dear Shareholder:
Many have fond memories of watching Superman fly away to save the day
saying "Up, Up and Away" - usually after thwarting arch-villain Lex
Luthor. The current stock market seems to be imitating that scenario.
Superman (read: bull market) seemed vulnerable to the schemes of the
nefarious Lex Luthor (read: bear market); but, just when we've given up on
Superman (read: bull market) he's come back to save the day. In other
words, the bull was off to another strong year, was interrupted by the
bear, then, when it appeared darkest, the bull has apparently vanquished
the bear.
If it seems that lately the U.S. economy has taken on Superman's
resiliency and strength, we need to remember that even Superman had his
weakness. To continue the analogy, our current economic situation is not
without its own kryptonite. The economic fragility in many of the
developing countries, the possibility of deflation, the European economic
union, tenuous peace in the oil-producing nations and the much ballyhooed
year 2000 computer problems are just some of the possibilities that could
disrupt economic expansion. In spite of these potential disruptions,
however, the Rightime Family of Funds remains committed to seeking
equity-like returns at substantially reduced risk.
The fiscal year ending October 31, 1998 was a successful one for the
Rightime Family of Funds. The Rightime Fund achieved an annual return of
18.86%. The Rightime MidCap Fund returned 24.53%. The Rightime Blue Chip
Fund returned 27.06% and the Rightime Social Awareness Fund returned
27.37%. The Lipper Growth Fund Index returned 13.9% for the same period.
From a total return vantage, 1998 treated our shareholders well. But, this
does not tell the whole story. Standard deviation is a measurement that
shows the magnitude of swings in the value of an investor's portfolio. The
greater the standard deviation, the greater the volatility and the
oscillation in the investor's portfolio. Over the fiscal year, the Lipper
Growth Fund Index had a standard deviation of 19. The Rightime Family of
Funds had standard deviations ranging from 11 to 12.5. Thus, not only did
Rightime Funds add value for our shareholders in 1998; they also
diminished the volatility to which our shareholders were exposed.
What happened in 1998 that allowed our funds to have a healthy year? As
previously stated, we strive to manage risk for our clients as well as
their assets. During the summer of 1998, we correctly identified that the
market was overvalued and at an unsustainable level. We assumed a
conservative position in mid-May and reduced our shareholders' exposure to
equities. We remained conservative as the market retreated during the
sharp sell-off at the end of August and again at the end of September. We
ended our fiscal year fully invested once again. We increased our exposure
to equities during mid-October and participated in the rally that has
taken us into December.
What will 1999 bring? Although our intermediate market indicators remain
bullish, common sense suggests that when the price investors are paying
for earnings is at record highs, then risk also remains high. In order to
justify these high prices, the "rosy" scenario must continue. Investing
with an eye toward risk is prudent at any time. We hope that 1999 will be
the smoothest year ever. We also hope that the potential obstacles we
identified earlier will not develop into real problems. However, we need
to recognize that we are now in the longest peacetime economic expansion
ever. By nature, markets tend to be cyclical. This means that the present
cycle will eventually end. In an attempt to forestall the end, Alan
Greenspan, Chairman of the Federal Reserve Board, lowered rates three
times in five weeks. Clearly, Greenspan saw risks that drove him to
intervene.
To return to our Superman analogy, this bull market has shown the ability
to move faster than a speeding bullet and to leap tall buildings at a
single bound - all within a single trading day! But, just as surely as
Superman had his kryptonite, our new global world market has its
kryptonite equivalent as well. In 1997, we discussed the people of
Thailand and Malaysia. This year we could talk about the Russians. Last
year when the Thai and Malaysian economies imploded, the Russian stock
market returned 136%. This last twelve-month period the Russian market
lost 87%. The Russian people were probably aware that risks existed, but
awareness is different from actual experience. This is not to suggest that
our economy is as fragile as Russia's. It's not. But could our market
decline substantially? It has in the past and will in the future. Just
this year, investors who follow the Russell 2000, an index of 2000 small
company stocks, saw that index retreat 35% from its highs. That is
substantial and it's also current. The possibility exists that a similar
event could happen to the S&P 500.
Our investment philosophy remains the same. We believe that the same
principles that existed in 1979 when we began managing money will exist in
the new millennium. We believe that investing requires a discipline that
one follows through difficult times like 1998. A discipline that keeps an
eye toward managing risk as well as assets can be very prudent in times of
excess speculation, when risk is high, or in times of high volatility when
losses are real. We may not have Superman's abilities, but we do feel that
through exercising our discipline we can help protect our shareholders
from the risks they encounter as they strive to achieve their financial
goals.
/S/DAVID J. RIGHTS
David J. Rights
President, Rightime Econometrics, Inc.
Investors are reminded that they cannot invest directly in the Lipper
Growth, Russell 2000 or S&P 500 Indexes.
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
October 31, 1998
The Rightime Fund
Portfolio of Investments
- --------------------------------------------------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
--------- ------------
<S> <C> <C>
EQUITY FUNDS: (60.71%)
120,556 Aim Weingarten Equity Fund $ 2,618,466
55,841 Alliance Growth Advisor Fund 2,650,771
65,410 Alliance Quasar Fund 1,516,193
92,937 American Century 20th Growth Fund 2,605,019
83,088 American Century 20th Ultra Fund 2,580,727
7,823 Dreyfus Appreciation Fund 298,098
118,859 Federated Mini-Cap
Institutional Fund 1,547,543
47,384 Fidelity Advisors Equity
Growth Fund 2,644,522
59,909 Fidelity Blue Chip Fund 2,612,629
98,464 Fidelity Dividend Growth Fund 2,576,802
55,754 Fidelity Growth Company Fund 2,644,960
55,179 Fidelity Growth Opportunity
Fund Class I 2,577,391
97,584 IDS New Dimensions Fund 2,567,430
74,456 Janus Mercury Fund 1,546,459
87,925 Kemper Dreman Small Cap "A" Fund 1,523,740
53,135 Legg Mason Value Prime Fund 2,715,728
8,261 Mairs and Power Growth Fund 709,154
132,556 MAS Mid-Cap Growth Fund 2,682,927
136,091 MAS Mid-Cap Value Fund 2,617,039
176,056 MFS MIG "A" Fund 2,600,352
133,761 MFS MIT "A" Fund 2,560,193
9,305 MFS Research "A" Fund 211,129
22,436 Mutual Beacon Class Z Fund 299,743
34,282 Neuberger & Berman Genesis Fund 491,256
31,037 Nicholas Fund 2,585,971
69,099 Oakmark Fund 2,607,103
151,830 Pioneer MidCap "A" Fund 2,590,214
39,386 Stein Roe Special Fund 1,028,358
79,239 T. Rowe Price Small Cap Stock Fund 1,535,658
80,906 T. Rowe Price Stock Fund 2,623,786
67,659 Value Line Special Situations Fund 1,034,506
53,430 Vanguard Explorer Fund 2,650,139
83,329 Vanguard US Growth Fund 2,872,336
7,101 Vanguard Windsor II Fund 220,644
-------------
Total Equity Funds
(cost $64,181,078) 67,146,986
-------------
MONEY MARKET FUNDS: (25.38%)
118,456 AIM Money Market Fund 118,456
150,800 Delaware Group Cash Reserve Fund 150,800
1,321,250 Dreyfus Money Market Fund 1,321,250
594,332 IDS Cash Management Prime Fund 594,332
2,998,863 Kemper Government
Money Market Fund 2,998,863
1,950,779 MAS Cash Reserve Fund 1,950,779
455,271 MFS Money Market Fund 455,271
46,734 New England Money Market Fund 46,734
17,943 Oppenheimer Money Market Fund 17,943
1,625,665 Pioneer Cash Reserve Fund 1,625,665
11,512,178 Putnam Money Market Fund 11,512,178
2,500,502 Safeco Money Market Fund 2,500,502
104,527 Seligman Cash Management Fund 104,527
2,562,175 T. Rowe Price Prime Reserve Fund 2,562,175
2,103 Value Line Cash Fund 2,103
2,109,713 Vanguard Prime Reserve Fund 2,109,713
-------------
Total Money Market Funds
(cost $28,071,291) 28,071,291
-------------
Principal
Amount
---------
SHORT-TERM INVESTMENTS (12.86%)
Repurchase Agreement (8.98%)(b)
$ 9,927,000 C.S. First Boston
5.35%; 11/2/98 (cost $9,927,000;
maturity value $9,931,426) $ 9,927,000
-------------
United States Treasury Bills (3.88%)(c)
2,500,000 4.89%; 11/12/98 2,497,102
1,800,000 4.95%; 11/5/98 1,799,010
-------------
Total United States Treasury Bills
(cost $4,296,112) 4,296,112
-------------
Total Short-term Investments
(cost $14,223,112) 14,223,112
-------------
Total Investments
(cost $106,475,481)(98.95%)(a) 109,441,389
Other Assets Less Liabilities (1.05%) 1,157,334
-------------
Net Assets (100.00%) $110,598,723
=============
(a) Aggregate cost for federal income tax purposes is $106,475,481. At
October 31, 1998 unrealized appreciation (depreciation) of securities for
federal income tax purposes is as follows:
Gross unrealized appreciation $ 3,016,430
Gross unrealized depreciation (50,522)
-------------
Net unrealized appreciation $ 2,965,908
=============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$10,388,788 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, 1998, the market value of $4,296,112 of the U.S.
Treasury Bills were pledged to cover margin requirements for futures
contracts.
Futures contracts at October 31, 1998:
(Contracts/delivery month/commitment)
Unrealized
Appreciation
-------------
S&P 500 Stock Index
($250 times premium)
120/December/Buy $ 801,951
S&P 400 MidCap Stock Index
($500 times premium)
57/December/Buy 578,124
-------------
$ 1,380,075
=============
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
October 31, 1998
The Rightime Blue Chip Fund
Portfolio of Investments
- --------------------------------------------------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
--------- ------------
<S> <C> <C>
COMMON STOCK (87.01%)
INDUSTRIALS (64.84%)
Aerospace/Defense (1.11%)
28,663 Boeing Co. $ 1,074,862
3,785 General Dynamics Corp. 224,025
4,806 Lockheed Martin Corp. 535,268
1,705 Northrop Grumman Corp. 135,974
8,490 Raytheon Co. Class B 492,951
126 Rockwell International Corp. 5,174
5,776 United Technologies Corp. 550,164
-------------
3,018,418
-------------
Aluminum (0.28%)
7,416 Alcan Aluminum Ltd. 187,718
5,794 Aluminum Co. of America 459,174
1,800 Reynolds Metals Co. 107,888
-------------
754,780
-------------
Automobiles (1.34%)
18,511 Chrysler Corp. 890,842
29,973 Ford Motor Co. 1,626,035
17,630 General Motors Corp. 1,111,792
-------------
3,628,669
-------------
Auto Parts After Market (0.23%)
1,970 Cooper Tire & Rubber Co. 32,751
5,196 Genuine Parts Co. 163,674
5,133 Goodyear Tire & Rubber Co. 276,540
2,993 ITT Industries, Inc. 107,000
478 Midas, Inc. 13,235
464 SPX Corp. 25,259
-------------
618,459
-------------
Beverages (Alcoholic) (0.52%)
1,562 Adolph Coors Co. Class B 78,100
15,700 Anheuser-Busch Co., Inc. 933,169
1,690 Brown-Forman Corp. Class B 114,814
8,849 Seagram Co. Ltd. 290,911
-------------
1,416,994
-------------
Beverages (Soft Drinks) (2.01%)
61,700 Coca-Cola Co. 4,172,462
37,789 PepsiCo, Inc. 1,275,379
-------------
5,447,841
-------------
Broadcast Media (0.77%)
30,158 CBS Corp.* 842,539
4,672 Clear Channel Communications* 212,868
10,428 Comcast Corp. Class A Special 514,883
12,602 Tele-Communications, Inc. Class A* 530,859
-------------
2,101,149
-------------
Building Materials (0.14%)
8,182 Masco Corp. 230,630
1,314 Owens Corning 47,715
4,283 Sherwin-Williams Co. 107,878
-------------
386,223
-------------
Chemicals (1.59%)
7,362 Air Products & Chemicals, Inc. 277,915
16,448 Applied Materials, Inc.* 570,540
5,613 Dow Chemical Co. 525,517
28,193 E.I. du Pont de Nemours & Co. 1,621,098
2,578 Eastman Chemical 151,457
1,891 Goodrich (B.F.) Co. 68,076
2,435 Hercules, Inc. 81,116
14,746 Monsanto Co. 599,056
3,893 Praxair, Inc. 156,693
4,689 Rohm & Haas Co. 158,254
3,077 Union Carbide Corp. 118,465
-------------
4,328,187
-------------
Chemicals (Diversified) (0.23%)
2,514 Avery Dennison Corp. 104,174
3,954 Engelhard Corp. 83,034
1,561 FMC Corp.* 79,709
1,781 Mallinckrodt, Inc. 50,758
4,439 PPG Industries, Inc. 253,855
2,110 Raychem Corp. 64,487
-------------
636,017
-------------
Chemicals (Specialty) (0.10%)
2,482 Grace (W.R.) & Co. 43,125
2,283 Great Lakes Chemical Corp. 95,030
3,373 Morton Int'l, Inc. 83,903
1,643 Nalco Chemical Co. 50,830
570 Octel Corp. 8,229
-------------
281,117
-------------
Commercial Services (0.15%)
5,203 Ecolab, Inc. 155,440
4,021 Omnicom Group, Inc. 198,788
1,113 National Service Industries, Inc. 39,929
4,566 Safety-Kleen Corp. 13,983
-------------
408,140
-------------
Communication (Equipment/
Manufacturers) (1.65%)
2,903 Alcatel Alsthom ADR 63,866
2,262 Andrew Corp.* 37,040
44,167 Cisco Systems, Inc.* 2,782,521
8,357 General Instrument Corp.* 214,670
25,619 Northern Telecom Ltd. 1,096,805
1,951 Scientific-Atlanta, Inc. 29,143
4,566 Tellabs, Inc.* 251,130
-------------
4,475,175
-------------
Computer Software & Services (4.39%)
9,699 3 Com Corp.* 349,770
5,616 ALLTEL Corp. 262,899
1,797 Adobe Systems, Inc. 66,714
1,789 Autodesk, Inc. 55,794
9,643 Automatic Data Processing, Inc. 750,346
15,659 Computer Associates
International, Inc. 616,573
4,043 Computer Sciences Corp.* 213,268
15,418 EMC Corp.* 992,534
12,146 First Data Corp. 321,869
5,134 IMS Health, Inc. 341,411
60,116 Microsoft Corp.* 6,364,781
8,683 Novell, Inc.* 129,160
24,429 Oracle Corp.* 722,182
6,465 Parametric Technology Corp.* 107,481
586 Shared Medical Systems Corp. 29,227
4,669 Silicon Graphics, Inc.* 52,526
9,363 Sun Microsystems, Inc.* 545,395
-------------
11,921,930
-------------
Computer Systems (3.41%)
4,051 Apple Computer, Inc. 150,393
68,704 COMPAQ Computer Corp. 2,172,776
4,302 Cabletron Systems, Inc.* 48,935
1,918 Ceridian Corp.* 110,045
1,618 Data General Corp.* 27,506
39,946 Dell Computer* 2,621,456
24,260 International Business
Machines Corp. 3,601,094
3,508 LSI Logic Corp.* 53,058
5,257 Micron Technology, Inc. 199,766
6,076 Seagate Technology* 160,255
4,134 Unisys Corp.* 110,068
-------------
9,255,352
-------------
Conglomerates (0.19%)
4,305 Allegheny Teledyne, Inc. 88,522
4,275 Tenneco, Inc. 129,853
4,108 Textron, Inc. 305,533
-------------
523,908
-------------
Containers (Metal & Glass) (0.08%)
788 Ball Corp. 33,244
5,499 Crown Cork & Seal Co., Inc. 175,281
-------------
208,525
-------------
Containers (Paper) (0.05%)
1,357 Bemis Co., Inc. 50,379
2,452 Stone Container Corp.* 23,447
1,389 Temple-Inland, Inc. 67,453
-------------
141,279
-------------
Cosmetics (0.71%)
1,422 Alberto-Culver Co. Class B 37,772
8,074 Avon Products, Inc. 320,437
32,482 Gillette Co. 1,459,660
2,754 International Flavors &
Fragrances, Inc. 103,103
-------------
1,920,972
-------------
Electrical Equipment (3.69%)
7,598 AMP, Inc. 311,993
15 Commscope, Inc. 209
11,023 Emerson Electric Co. 727,518
97,011 General Electric Co. 8,488,463
3,148 Honeywell, Inc. 251,446
1,380 Thomas & Betts Corp. 61,669
3,534 W.W. Grainger, Inc. 162,785
-------------
10,004,083
-------------
Electronics (Instrumentation) (0.62%)
25,895 Hewlett-Packard Co. 1,558,555
1,122 Perkin-Elmer Corp. 94,599
1,248 Tektronix, Inc. 22,299
-------------
1,675,453
-------------
Electronics (Semiconductors) (1.94%)
3,810 Advanced Micro Devices, Inc.* 85,963
73 General Semiconductor, Inc.* 579
40,803 Intel Corp. 3,639,118
2,152 KLA Instruments Corp.* 79,355
14,916 Motorola, Inc. 775,632
4,068 National Semiconductor Corp.* 51,613
9,756 Texas Instruments, Inc. 623,774
-------------
5,256,034
-------------
Engineering & Construction (0.04%)
2,117 Fluor Corp. 82,166
1,058 Foster Wheeler Corp. 16,796
-------------
98,962
-------------
Entertainment (0.54%)
2,883 Harrah's Entertainment, Inc. 40,722
1,895 King World Productions, Inc.* 49,744
50,568 Walt Disney Co. 1,362,176
-------------
1,452,642
-------------
Foods (1.97%)
298 Agribrands International 8,735
19,884 Archer-Daniels-Midland Co. 331,814
9,278 Bestfoods Intl. 505,651
13,749 Campbell Soup Co. 732,994
22,550 ConAgra, Inc. 686,366
66 Corn Products Intl. 1,881
5,259 General Mills, Inc. 386,536
11,253 H.J. Heinz Co. 654,081
3,521 Hershey Foods Corp. 238,768
10,239 Kellogg Co. 337,887
3,436 Quaker Oats Co. 202,939
8,013 Ralston-Purina Group 267,434
12,016 Sara Lee Corp. 717,205
1,509 Vlasic Foods Intl. 28,199
2,910 Wrigley, (Wm.) Jr. 235,528
-------------
5,336,018
-------------
Food Wholesalers (0.11%)
3,062 SuperValu, Inc. 73,488
8,463 Sysco Corp. 227,972
-------------
301,460
-------------
Gold Mining (0.19%)
9,652 Barrick Gold Corp. 206,312
6,570 Battle Mountain Gold Co. Class A 35,724
4,796 Freeport-McMoRan
Copper & Gold, Inc. Class B 59,051
3,694 Homestake Mining Co. 43,866
3,886 Newmont Mining Corp. 82,577
5,990 Placer Dome Group, Inc. 94,343
-------------
521,873
-------------
Hardware & Tools (0.09%)
2,375 Black & Decker Corp. 122,758
1,508 Snap-On, Inc. 53,440
2,217 Stanley Works 66,510
-------------
242,708
-------------
Health Care (Diversified) (4.30%)
48,288 Abbott Laboratories, Inc. 2,266,518
32,502 American Home Products Corp. 1,584,472
29,609 Bristol-Myers Squibb Co. 3,273,645
33,514 Johnson & Johnson 2,731,391
4,696 United Healthcare Corp. 204,570
20,412 Warner-Lambert Co. 1,599,790
-------------
11,660,386
-------------
Health Care (Drugs) (5.07%)
45,943 Eli Lilly & Co. 3,718,512
29,894 Merck & Co., Inc. 4,043,164
32,255 Pfizer, Inc. 3,461,365
12,614 Pharmacia & Upjohn, Inc. 667,754
18,262 Schering-Plough Corp. 1,878,703
-------------
13,769,498
-------------
Health Care (Miscellaneous) (0.11%)
2,375 ALZA Corp.* 113,703
2,100 Beverly Enterprises 14,175
100 Crescendo Pharm. 1,306
1,540 HCR Manor Care 50,050
9,788 HEALTHSOUTH Corp.* 118,680
39 Pharmerica, Inc. 132
-------------
298,046
-------------
Heavy Duty Trucks & Parts (0.19%)
910 Cummins Engine Co., Inc. 31,054
4,112 Dana Corp. 171,933
2,850 Eaton Corp. 192,909
1,877 Navistar International Corp.* 39,182
1,948 Paccar, Inc. 84,981
-------------
520,059
-------------
Hospital Management Companies (0.26%)
19,756 Columbia/HCA Healthcare Corp. 414,876
4,092 Humana, Inc.* 77,492
7,645 Tenet Healthcare Corp.* 213,582
-------------
705,950
-------------
Homebuilding (0.04%)
1,589 Centex Corp. 53,232
980 Kaufman & Broad Home Corp. 27,991
1,048 Pulte Corp. 26,986
-------------
108,209
-------------
Hotel/Motel (0.21%)
7,032 Hilton Hotels Corp. 141,079
6,411 Marriott Intl. 172,296
4,470 Mirage Resorts, Inc.* 75,711
895 Sodexho Marriott Services 28,864
5,091 Starwood Hotels & Resorts 144,139
-------------
562,089
-------------
Household Furnishings & Appliances (0.10%)
980 Armstrong World Industries, Inc. 60,760
2,376 Maytag Corp. 117,464
1,904 Whirlpool Corp. 97,580
-------------
275,804
-------------
Household Products (2.48%)
3,065 Clorox Co. 334,851
8,300 Colgate-Palmolive Co. 733,512
5,305 Fortune Brands 175,397
33,556 Procter & Gamble Co. 2,982,290
33,131 Unilever NV ADR 2,493,108
-------------
6,719,158
-------------
Housewares (0.12%)
3,973 Newell Co. 174,812
3,774 Rubbermaid, Inc. 125,250
1,538 Tupperware Corp. 23,935
-------------
323,997
-------------
Machinery (Diversified) (0.42%)
638 Briggs & Stratton Corp. 29,986
9,243 Caterpillar, Inc. 415,935
4,569 Cooper Industries, Inc. 201,607
7,848 Deere & Co. 277,623
1,285 Harnischfeger Industries, Inc. 12,127
4,093 Ingersoll-Rand Co. 206,696
-------------
1,143,974
-------------
Manufacturing (Diversified Industries) (0.91%)
1,199 Aeroquip Vickers, Inc. 37,769
2,413 Case Corp. 53,086
1,695 Crane Co. 48,837
9,183 Dover Corp. 291,560
880 Fleetwood Enterprises, Inc. 28,380
6,175 Illinois Tool Works, Inc. 395,972
2,104 Johnson Controls, Inc. 118,350
1,060 Milacron, Inc. 20,538
1,131 Millipore Corp. 27,851
208 NACCO Industries, Inc. Class A 19,136
3,233 Pall Corp. 81,633
2,750 Parker Hannifin Corp. 98,312
1,558 Timkin Co. 27,752
19,881 Tyco Intl Ltd. 1,231,379
-------------
2,480,555
-------------
Medical Products & Supplies (0.65%)
2,471 Bausch & Lomb, Inc. 103,010
8,269 Baxter International, Inc. 495,623
6,910 Becton, Dickinson & Co. 291,084
4,501 Biomet, Inc.* 152,753
5,480 Boston Scientific Corp.* 298,318
1,381 C.R. Bard, Inc. 58,951
3,654 Guidant Corp. 279,531
2,513 Sigma Aldrich Corp. 77,667
351 St. Jude Medical, Inc.* 9,916
-------------
1,766,853
-------------
Metals Miscellaneous (0.08%)
2,165 ASARCO, Inc. 46,412
2,365 Cyprus Amax Minerals Co. 29,415
4,203 Inco Ltd. 44,920
1,488 Phelps Dodge Corp. 85,746
-------------
206,493
-------------
Miscellaneous (2.88%)
2,018 Allergan, Inc. 125,999
110 Allergan Specialty Therapy 962
16,314 AlliedSignal, Inc. 635,226
2,868 American Greetings Corp. Class A 115,079
8,416 Amgen, Inc.* 661,182
2,751 Brunswick Corp. 53,473
2,776 Cardinal Health, Inc. 262,506
23,488 Cendant Corporation 268,644
6,889 Corning, Inc. 250,157
2,411 Deluxe Corp. 78,056
1,111 EG & G, Inc. 27,914
527 Eastern Enterprises 21,640
9,911 Eastman Kodak Co. 768,102
10,554 HBO and Co. 277,043
2,561 H & R Block, Inc. 114,765
2,608 Harcourt General, Inc. 126,977
2,014 Harris Corp. 70,616
1,435 Hussmann Intl. 22,332
3,186 Interpublic Group of Cos., Inc. 186,381
8,702 ITT Hartford Group, Inc. 462,294
872 John H. Harland Co. 12,644
924 Jostens, Inc. 20,848
1,176 Kerr-McGee Corp. 46,893
2,915 Loews Corp. 273,828
6,357 Marsh & McLennan Cos., Inc. 352,813
10,205 Minnesota Mining &
Manufacturing Co. 816,400
3,485 Owens-Illinois, Inc.* 106,510
4,771 Pioneer Hi Bred International 133,588
1,147 Polaroid Corp. 30,467
3,664 R.R. Donnelley & Sons Co. 158,010
1,204 Sealed Air Corp.* 42,667
6,326 Service Corp. International 225,364
539 Springs Industries, Inc. Class A 19,067
3,753 Thermo Electron Corp.* 74,825
3,052 TRW, Inc. 173,773
8,825 Viacom International Class B* 528,397
2,871 Whitman Corp. 61,547
7,683 Williams Cos., Inc. 210,802
-------------
7,817,791
-------------
Office Equipment & Supplies (0.58%)
3,292 Ikon Office Solutions, Inc. 31,068
2,202 Moore Corp. Ltd. 24,910
13,278 Pitney Bowes, Inc. 731,120
8,126 Xerox Corp. 787,206
-------------
1,574,304
-------------
Oil & Gas Drilling (0.03%)
2,024 Helmerich & Payne, Inc. 48,196
2,159 Rowan Cos., Inc.* 31,440
-------------
79,636
-------------
Oil (Exploration & Production) (0.14%)
2,218 Apache Corp. 62,797
3,046 Anadarko Petroleum Corp. 103,183
4,708 Burlington Resources, Inc. 193,911
2,650 Oryx Energy Co.* 37,100
-------------
396,991
-------------
Oil (Domestic Integrated) (0.71%)
2,463 Amerada Hess Corp. 136,081
2,010 Ashland, Inc. 96,731
10,241 Atlantic Richfield Co. 705,349
8,413 Occidental Petroleum Corp. 167,208
1,199 Pennzoil Co. 43,014
6,533 Phillips Petroleum Co. 282,552
1,760 Sun Co., Inc. 60,390
7,238 USX-Marathon Group 236,592
6,162 Unocal Corp. 209,123
-------------
1,937,040
-------------
Oil (International Integrated) (4.67%)
30,692 Amoco Corp. 1,722,589
20,199 Chevron Corp. 1,646,218
61,469 Exxon Corp. 4,379,666
19,548 Mobil Corp. 1,479,539
53,522 Royal Dutch Petroleum Co. ADR 2,635,959
13,628 Texaco, Inc. 808,311
-------------
12,672,282
-------------
Oil Well Equipment & Services (0.54%)
7,919 Baker Hughes, Inc. 174,713
16,618 Halliburton Co. 597,209
1,432 McDermott International, Inc. 41,975
12,290 Schlumberger Ltd. 645,225
-------------
1,459,122
-------------
Paper & Forest Products (0.79%)
2,060 Boise Cascade Corp. 57,680
3,769 Champion International Corp. 120,372
5,176 Fort James Corp. 208,658
3,506 Georgia-Pacific Corp. 181,435
7,555 International Paper Co. 350,835
13,834 Kimberly-Clark Corp. 667,491
2,775 Louisiana-Pacific Corp. 49,256
2,630 Mead Corp. 83,174
764 Potlatch Corp. 27,886
1,200 Timber Co. 26,625
1,759 Union Camp Corp. 75,637
2,569 Westvaco Corp. 63,262
4,983 Weyerhaeuser Co. 233,267
-------------
2,145,578
-------------
Pollution Control (0.24%)
5,868 Browning-Ferris Industries, Inc. 207,947
8,158 Laidlaw, Inc. 76,991
8,241 Waste Management, Inc. 371,875
-------------
656,813
-------------
Publishing (0.63%)
4,210 Dun & Bradstreet Corp. 119,459
2,473 McGraw-Hill Cos. 222,415
1,296 Meredith Corp. 47,952
1,712 Nielsen Media Research 24,289
842 R.H. Donnelley Corp. 11,788
13,951 Time Warner, Inc. 1,294,827
-------------
1,720,730
-------------
Publishing (Newspapers) (0.56%)
2,392 Dow Jones & Co., Inc. 109,583
14,071 Gannett Co., Inc. 870,643
2,091 Knight-Ridder, Inc. 106,510
4,774 New York Times Co. Class A 134,866
2,236 Times Mirror Co. Class A 123,958
3,027 Tribune Co. 174,431
-------------
1,519,991
-------------
Restaurants (0.53%)
3,834 Darden Restaurants, Inc.* 63,261
17,159 McDonald's Corp. 1,147,508
3,819 Tricon Global Restaurants 166,126
3,276 Wendy's International, Inc. 68,796
-------------
1,445,691
-------------
Retail Stores (Department) (0.40%)
2,780 Dillard's, Inc. 86,354
6,485 Federated Department Stores* 249,267
6,254 J.C. Penney Co., Inc. 297,065
5,795 May Department Stores Co. 353,495
3,762 Nordstrom, Inc. 102,750
-------------
1,088,931
-------------
Retail Stores (Drugs) (0.32%)
926 Longs Drug Stores, Inc. 36,172
6,102 Rite Aid Corp. 242,173
12,246 Walgreen Co. 596,227
-------------
874,572
-------------
Retail Stores (Food Chains) (0.43%)
6,987 Albertson's, Inc. 388,215
8,332 American Stores Co. 271,311
1,272 Great Atlantic & Pacific Tea Co., Inc. 29,892
6,309 Kroger Co.* 350,150
3,729 Winn Dixie Stores, Inc. 126,553
-------------
1,166,121
-------------
Retail Stores (General Merchandise) (1.87%)
2,682 Consolidated Stores, Inc.* 44,085
12,560 Dayton-Hudson Corp. 532,230
12,159 Kmart Corp.* 171,746
9,727 Sears, Roebuck & Co. 437,107
56,229 Wal-Mart Stores, Inc. 3,879,801
-------------
5,064,969
-------------
Retail Stores (Specialty) (1.29%)
3,751 AutoZone, Inc.* 98,698
2,906 Circuit City Stores, Inc. 105,161
6,956 Costco Companies 394,753
10,166 CVS Corporation 464,459
42,168 Home Depot, Inc. 1,834,308
8,736 Lowes Cos., Inc. 294,294
1,615 Pep Boys (Manny, Moe & Jack) 25,234
2,573 Tandy Corp. 127,524
7,167 Toys R Us, Inc.* 140,205
3,352 Venator Group, Inc. 28,283
-------------
3,512,919
-------------
Retail Stores (Specialty-Apparel) (0.41%)
5,848 Abercrombie & Fitch Co. - Class A * 232,092
4,261 Charming Shoppes, Inc. * 15,979
11,863 Gap, Inc. 713,263
8,222 TJX Cos., Inc. 155,704
-------------
1,117,038
-------------
Shoes (0.13%)
7,261 Nike, Inc. Class B 317,215
1,408 Reebok International Ltd.* 23,408
-------------
340,623
-------------
Steel (0.10%)
2,726 Armco, Inc.* 12,948
5,444 Bethlehem Steel Corp.* 48,996
1,262 Inland Steel Industries, Inc.* 23,032
2,188 Nucor Corp. 99,144
2,190 USX-U.S. Steel Group 50,917
2,399 Worthington Industries, Inc. 32,536
-------------
267,573
-------------
Telecommunications (Long Distance) (3.09%)
40,472 AT&T Corp. 2,519,382
31,939 Lucent Technologies, Inc. 2,561,109
43,916 MCI WorldCom, Inc. * 2,426,359
11,434 Sprint Corp. 877,560
-------------
8,384,410
-------------
Textile (Apparel Manufacturers) (0.08%)
1,855 Fruit of the Loom, Inc.* 28,289
1,688 Liz Claiborne, Inc. 49,585
878 Russell Corp. 21,566
3,093 VF Corp. 129,326
-------------
228,766
-------------
Tobacco (1.20%)
60,439 Philip Morris Cos., Inc. 3,089,944
4,567 UST, Inc. 155,278
-------------
3,245,222
-------------
Toys (0.14%)
3,086 Hasbro, Inc. 108,203
7,277 Mattel, Inc. 261,062
-------------
369,265
-------------
Total Industrial 175,989,817
-------------
TRANSPORTATION (1.09%)
Airlines (0.37%)
6,674 AMR Corp.* 447,158
2,538 Delta Air Lines, Inc. 267,918
8,122 Southwest Airlines Co. 172,085
2,230 USAir Group, Inc.* 126,134
-------------
1,013,295
-------------
Railroads (0.60%)
14,049 Burlington Northern Santa Fe Corp. 433,763
5,452 CSX Corp. 213,991
18,537 Norfolk Southern Corp. 610,562
6,180 Union Pacific Corp. 294,322
6,355 Union Pacific Resources Group, Inc. 82,615
-------------
1,635,253
-------------
Transportation (Miscellaneous) (0.12%)
5,275 FDX Corp. 277,267
1,864 Ryder System, Inc. 45,901
-------------
323,168
-------------
Total Transportation 2,971,716
-------------
UTILITIES (7.26%)
Electric Companies (2.37%)
3,419 Ameren Corp. 136,546
4,697 American Electric Power Co., Inc. 229,860
5,702 Baltimore Gas & Electric Co. 178,900
4,624 CINergy Corp. 159,528
3,793 Carolina Power & Light Co. 174,004
7,061 Central & South West Corp. 196,384
6,476 Consolidated Edison, Inc. 324,610
5,205 DTE Energy Co. 221,863
8,626 Dominion Resources, Inc. 398,413
9,616 Duke Power Co. 622,035
9,488 Edison International 250,246
6,632 Entergy Corp. 190,670
5,419 FPL Group, Inc. 339,026
8,162 Firstenergy Corp. 244,860
4,115 Frontier Corp. 123,707
4,597 GPU Inc. 198,246
10,884 Houston Industries, Inc. 338,084
3,646 Niagara Mohawk Power Corp. 53,323
3,626 Northern States Power Co. 97,902
5,527 PECO Energy Corp. 213,826
10,952 PG & E Corporation 333,351
4,186 PP&L Resources, Inc. 113,545
7,384 PacifiCorp 140,758
5,825 Public Service Enterprise Group, Inc. 221,350
17,250 Southern Co. 486,234
5,708 Texas Utilities Co. 249,725
5,440 Unicom Corp. 205,020
-------------
6,442,016
-------------
Natural Gas (0.44%)
5,362 Coastal Corp. 189,010
2,116 Columbia Gas Systems, Inc. 122,464
2,350 Consolidated Natural Gas Co. 124,109
3,114 EEX Corp.* 12,067
9,017 Enron Corp. 475,647
1,215 NICOR, Inc. 51,486
807 Oneok, Inc. 27,639
845 Peoples Energy Corp. 31,159
3,192 Sempra Energy 82,992
2,038 Sonat, Inc. 61,777
-------------
1,178,350
-------------
Telephone (4.45%)
14,309 AirTouch Communications* 801,304
30,639 Ameritech Corp. 1,652,591
46,634 Bell Atlantic Corp. 2,477,431
27,386 BellSouth Corp. 2,185,745
25,371 GTE Corp. 1,488,961
15,148 Mediaone Group, Inc.* 640,950
45,630 SBC Communications, Inc. 2,113,239
12,489 U S WEST, Inc. 716,556
-------------
12,076,777
-------------
Total Utilities 19,697,143
-------------
FINANCIAL (13.82%)
Financial Miscellaneous (3.72%)
14,614 American Express Co. 1,291,512
7,592 American General Corp. 520,052
7,761 Associates First Capital 547,150
6,615 Charles Schwab Corp. 317,107
4,014 Cincinnati Financial Corp. 149,772
2,679 Countrywide Credit Industries, Inc. 115,699
3,756 Equifax, Inc. 145,310
21,355 Federal Home Loan Mortgage Corp. 1,227,913
31,395 Federal National Mortgage Assn. 2,223,159
14,257 Household International, Inc. 521,272
2,800 Lehman Brothers Holdings, Inc. 106,225
2,211 MBIA, Inc. 135,147
18,709 MBNA Corp. 426,799
8,268 Merrill Lynch & Co., Inc. 489,879
14,795 Morgan Stanley Dean Witter & Co. 957,976
1,787 Progressive Corp. of Ohio 263,136
6,574 Synovus Financial Corp. 152,435
4,823 SunAmerica, Inc. 340,021
1,609 Transamerica Corp. 167,336
-------------
10,097,900
-------------
Life Insurance (0.49%)
34 Aegon Nv 2,971
5,630 Aon Corp. 349,060
7,826 Conseco Co., Inc. 271,464
2,665 Jefferson-Pilot Corp. 161,899
2,509 Lincoln National Corp. 190,370
2,386 Providian Financial Corp. 189,389
3,502 Torchmark Corp. 153,213
-------------
1,318,366
-------------
Major Regional Banks (4.78%)
29,870 Banc One Corp. 1,459,896
46,566 Bankamerica Corp. 2,674,635
20,216 The Bank of New York Co., Inc. 638,068
6,758 BB&T Corp. 241,176
3,888 Comerica, Inc. 250,776
7,286 Fifth Third Bancorp 482,697
29,386 First Union Corp. 1,704,388
14,678 Fleet Financial Group, Inc. 586,203
5,208 Huntington Bancshares, Inc. 149,730
10,895 KeyCorp 330,255
4,966 National City Corp. 319,376
32,272 Norwest Corp. 1,200,115
7,606 PNC Bank Corp. 380,300
4,025 State Street Boston 251,059
5,262 SunTrust Banks, Inc. 366,696
18,291 U.S Bancorp Del Com 667,621
5,086 Wachovia Corp. 462,190
2,177 Wells Fargo & Co. 805,490
-------------
12,970,671
-------------
Money Center Banks (0.69%)
2,407 Bankers Trust New York Corp. 151,190
20,978 Chase Manhattan Corp. 1,191,813
4,470 J.P. Morgan & Co., Inc. 421,298
2,760 Republic New York Corp. 115,402
-------------
1,879,703
-------------
Multi-Line Insurance (3.14%)
4,002 Aetna, Inc. 298,649
25,276 Allstate Corp. 1,088,448
44,770 American International Group, Inc. 3,816,643
5,583 CIGNA Corp. 407,210
58,399 Citigroup, Inc. 2,748,403
3,451 UNUM Corp. 153,354
-------------
8,512,707
-------------
Other Major Banks (0.24%)
7,790 BankBoston Corp. 286,769
6,335 Mellon Bank Corp. 380,892
-------------
667,661
-------------
Property-Casualty Insurance (0.51%)
5,621 Chubb Corp. 345,692
2,625 General Re Corp. 576,680
2,809 MGIC Investment Corp. 109,551
3,535 SAFECO Corp. 153,110
5,764 St. Paul Cos., Inc. 190,932
-------------
1,375,965
-------------
Savings & Loans Companies (0.25%)
1,455 Golden West Financial Corp. 131,950
14,477 Washington Mutual, Inc. 541,983
-------------
673,933
-------------
Total Financial 37,496,906
-------------
Total Common Stock
(cost $152,840,673) 236,155,582
-------------
Principal
Amount
---------
SHORT-TERM INVESTMENTS (12.86%)
Repurchase Agreement, (8.41%)(b)
$22,830,000 First Boston
5.35%; 11/2/98 (cost $22,830,000;
maturity value $22,840,178) 22,830,000
United States Treasury Bills (4.45%)(c)
8,900,000 4.95%; 11/5/98 8,895,105
3,200,000 4.98%; 11/12/98 3,195,316
-------------
Total United States Treasury Bills
(cost $12,090,421) 12,090,421
-------------
Total Short-term Investments
(cost $34,920,421) 34,920,421
-------------
Total Investments (cost $187,761,094)
(99.87%)(a) 271,076,003
Other Assets Less Liabilities (0.13%) 339,780
-------------
Net Assets (100.00%) $ 271,415,783
=============
* Non-income producing security.
(a) Aggregate cost for federal income tax purposes is $187,761,094. At
October 31, 1998 unrealized appreciation (depreciation) of securities for
federal income tax purposes is as follows:
Gross unrealized appreciation $87,655,341
Gross unrealized depreciation (4,340,432)
-----------
Net unrealized appreciation $83,314,909
===========
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$23,892,015 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, 1998, the market value of $12,090,421 of the U.S.
Treasury Bills were pledged to cover margin requirements for futures
contracts.
Futures contracts at October 31, 1998:
(Contracts-$250 times premium/delivery
month/commitment)
Unrealized
Appreciation
-------------
S&P 500 Stock Index:
130/Dec/Buy $ 1,138,150
=============
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
October 31, 1998
The Rightime
Social Awareness Fund
Portfolio of Investments
- --------------------------------------------------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
--------- ------------
<S> <C> <C>
COMMON STOCK (99.19%)
Banks & Money Centers (11.78%)
7,400 Banc One Corp. $ 361,675
6,300 BankAmerica Corp. 361,856
1,900 Bankers Trust N. Y. 119,344
5,200 Citicorp 244,725
5,500 Dime Bancorp, Inc. 130,969
6,200 FirstFed Financial 101,525
8,500 Norwest Corp. 316,093
-------------
1,636,187
-------------
Commercial Services (1.67%)
3,100 Omnicom Group 153,256
2,300 Tennant Co. 78,488
-------------
231,744
-------------
Communication (5.24%)
8,500 Cisco Systems 535,500
3,500 Tellabs, Inc. 192,500
-------------
728,000
-------------
Computer Hardware,
Software & Services (4.62%)
12,000 Novell, Inc. 178,500
3,000 Solectron Corp. 171,750
5,000 Sun Microsystems 291,250
-------------
641,500
-------------
Electrical (1.46%)
4,300 Dionex Corp. 114,487
4,900 Thomas Industries 88,813
-------------
203,300
-------------
Financial (Miscellaneous) (13.54%)
4,400 American Express Co. 388,850
7,100 Federal Home Loan Mortgage 408,250
9,000 Fannie Mae 637,312
3,600 Rouse Co. 101,025
4,900 Schwab (Charles) Corp. 234,893
2,700 Value Line, Inc. 110,700
-------------
1,881,030
-------------
Foods & Beverages (6.51%)
5,200 Bob Evans Farms 102,375
10,000 Odwalla, Inc. 75,000
13,800 Pepsico, Inc. 465,750
3,500 Starbucks Corp. 151,813
15,400 TCBY Enterprises 108,763
-------------
903,701
-------------
Food Wholesaler (2.25%)
5,300 Super Valu, Inc. 127,200
6,900 Sysco Corp. 185,869
-------------
313,069
-------------
Healthcare (Miscellaneous) (3.41%)
3,000 Bergen Brunswig "A" 146,437
8,100 Humana, Inc. 153,394
3,900 Marquette Medical 173,794
-------------
473,625
-------------
Homebuilding (1.65%)
3,000 Centex Corp. 100,500
4,500 Kaufman & Broad 128,531
-------------
229,031
-------------
Household Products (1.95%)
2,300 Whirlpool Corp. 117,875
4,600 Rubbermaid, Inc. 152,663
-------------
270,538
-------------
Insurance (4.98%)
2,300 Jefferson-Pilot Corp. 139,725
1,000 General Re Corp. 219,687
3,700 Marsh & McLennan 205,350
2,900 Relistar Financial 127,056
-------------
691,818
-------------
Manufacturing (7.40%)
4,000 American Power Corp. 169,750
3,300 Fastenal Co. 119,213
3,000 Fleetwood Enterprises 96,750
5,600 Hunt Manufacturing 77,700
7,700 Interface, Inc. "A" 94,806
5,900 Leggett & Platt 137,912
3,400 Modine Manufacturing 111,350
4,400 TJ International 86,625
3,200 V.F. Corp 133,800
-------------
1,027,906
-------------
Miscellaneous (11.07%)
4,600 Cabot Corp. 129,088
5,800 Clarcor, Inc. 97,875
3,500 Dana Corp. 146,344
4,400 Deere & Co. 155,650
3,100 GATX Corp. 106,950
14,200 Handleman Co. 141,113
2,700 Harman International 109,181
3,600 Penney, (J.C.) Co. Inc. 171,000
3,800 Pitney Bowes, Inc. 209,237
6,600 Ruby Tuesday, Inc. 111,375
4,500 Service Corp. Int'l 160,313
-------------
1,538,126
-------------
Paper & Forest Products (1.59%)
4,200 Consolidated Paper 101,063
4,200 Sonoco Products 119,175
-------------
220,238
-------------
Pharmaceuticals (5.09%)
4,000 Merck & Co., Inc. 541,000
4,800 Mylan Labs 165,300
-------------
706,300
-------------
Retail Stores (Specialty) (8.53%)
6,200 Brown Group, Inc. 98,813
6,300 Claire's Stores 106,706
12,900 Home Depot, Inc. 561,150
6,200 Limited, Inc. 158,875
5,100 Lowe's Companies 171,806
2,200 Timberland 88,000
-------------
1,185,350
-------------
Transportation (1.89%)
4,300 Ryder System, Inc. 105,887
7,400 Southwest Airlines 156,788
-------------
262,675
-------------
Utilities (4.56%)
9,800 Ameritech 528,587
3,100 Cleco Corp. 104,819
-------------
633,406
-------------
Total Common Stock (cost $13,425,374) 13,777,544
-------------
Principal
Amount
---------
SHORT-TERM INVESTMENTS (0.86%)
Repurchase Agreement (0.86%)(b)
$ 119,000 C.S. First Boston
5.35%; 11/2/98; (cost $119,000;
maturity value $119,053) 119,000
-------------
Total Short-term Investments
(cost $119,000) 119,000
-------------
Total Investments (cost $13,544,374)
(100.05%)(a) 13,896,544
Liabilities Less Other Assets (-0.05%) (7,205)
-------------
Net Assets (100.00%) $13,889,339
=============
(a) Aggregate cost for federal income tax purposes is $13,544,374. At
October 31, 1998 unrealized appreciation (depreciation) of securities for
federal income tax purposes is as follows:
Gross unrealized appreciation $ 561,580
Gross unrealized depreciation (209,410)
-------------
Net unrealized appreciation $ 352,170
=============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of $124,536
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.
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
October 31, 1998
The Rightime MidCap Fund
Portfolio of Investments
- --------------------------------------------------------------------------------------------------------------------------
VALUE
SHARES (NOTE 1)
--------- ------------
<S> <C> <C>
COMMON STOCK (83.46%)
INDUSTRIALS (57.37%)
Aerospace/Defense (0.81%)
2,600 Cordant Technologies, Inc. $ 105,788
1,500 OEA, Inc. 16,781
1,800 Precision Castparts Corp. 79,200
700 Sequa Corp. Class A* 44,800
4,400 Sundstrand Corp. 206,525
2,500 Universal Corp. 92,813
-------------
545,907
-------------
Aluminum (0.20%)
1,213 Aluminum Co. of America 96,130
700 Maxxam, Inc.* 37,056
-------------
133,186
-------------
Auto Parts & Equipment (0.56%)
1,900 Arvin Industries, Inc. 75,288
1,700 Borg-Warner Automotive, Inc. 79,688
2,500 Federal-Mogul Corp. 135,469
4,700 Meritor Automotive, Inc. 87,831
-------------
378,276
-------------
Biotechnology (1.51%)
5,400 Biogen, Inc.* 375,300
4,600 Centocor, Inc.* 204,700
9,300 Chiron Corp.* 209,250
5,500 Genzyme Corp.* 231,344
-------------
1,020,594
-------------
Broadcast Media (0.32%)
2,472 Chris-Craft Industries, Inc.* 110,159
3,800 TCA Cable Television, Inc. 105,214
-------------
215,373
-------------
Building Materials (0.28%)
1,700 Calmat Co. 39,844
1,950 Granite Construction Co. 64,959
1,500 Southdown, Inc.* 81,656
-------------
186,459
-------------
Cellular Communications (0.49%)
16,400 Nextel Communications* 297,250
1,500 Vanguard Cellular
Systems, Inc. Class A* 34,500
-------------
331,750
-------------
Chemicals & Materials (1.98%)
1,800 A. Schulman, Inc. 35,775
5,000 Airgas, Inc.* 57,500
1,260 B.F. Goodrich Co. 45,360
3,500 Cabot Corp. 98,219
2,800 Calgon Carbon Corp. 19,775
5,400 Crompton & Knowles Corp. 86,738
3,400 Cytec Industries, Inc.* 81,600
1,700 Dexter Corp. 49,725
5,100 Ethyl Corp. 28,050
2,800 Ferro Corp. 71,400
2,500 Georgia Gulf Corp. 42,656
1,000 H.B. Fuller Co. 41,125
4,300 IMC Global, Inc. 111,800
500 Lawter International, Inc. 3,813
3,800 Lubrizol Corp. 105,925
5,900 Lyondell Petrochemical Co. 99,563
3,700 M.A. Hanna Co. 54,344
3,700 Olin Corp. 102,444
7,100 RPM, Inc. (Ohio) 119,369
4,200 Witco Chemical Corp. 79,013
-------------
1,334,194
-------------
Commercial Services (Advertising) (0.72%)
1,700 Information Resources, Inc.* 13,494
9,600 Omnicom Group, Inc. 474,600
-------------
488,094
-------------
Commercial Services (Specialized) (0.69%)
2,100 Banta Corp. 52,238
3,600 Comsat Corp. 141,975
3,600 Fiserv, Inc.* 167,400
1,800 Jacobs Engineering Group, Inc.* 58,725
2,500 Rollins, Inc. 43,125
-------------
463,463
-------------
Communications (Equipment/
Manufacturers) (0.71%)
9,600 ADC Telecommunications, Inc.* 220,800
6,646 Qwest Communications, Intl.* 260,025
-------------
480,825
-------------
Computer Hardware (2.01%)
2,000 Exabyte Corp.* 12,000
5,400 Lexmark, Intl. 377,663
4,800 Mentor Graphics Corp.* 38,700
7,400 Quantum Corp.* 129,500
2,400 Sequent Computer Systems, Inc.* 23,700
8,000 Solectron Corp.* 458,000
9,400 Storage Technology Corp.* 314,313
-------------
1,353,876
-------------
Computer Software & Services (6.41%)
4,662 ALLTEL Corp. 218,240
12,600 America Online, Inc.* 1,600,988
12,400 BMC Software, Inc.* 595,975
14,400 Cadence Design Systems, Inc.* 307,800
10,800 Comdisco, Inc. 166,725
9,200 Compuware Corp.* 498,525
3,900 Electronic Arts* 160,388
11,200 Informix Corp.* 57,050
2,500 Micro Warehouse, Inc.* 54,531
2,600 Policy Management Systems Corp.* 118,138
6,600 Sterling Commerce 232,650
2,300 Structural Dynamics Research Corp.* 33,063
6,400 SunGard Data Systems* 216,000
4,000 Symantec Corp.* 64,000
-------------
4,324,073
-------------
Consumer Products (0.57%)
1,400 Church and Dwight, Inc. 42,963
7,000 Dial Corp. 192,938
1,400 Enesco Group, Inc. 35,525
3,000 First Brands Corp. 113,250
-------------
384,676
-------------
Electrical Components & Other Equipment (4.91%)
6,500 Altera Corp.* 270,563
10,300 Analog Devices, Inc.* 204,713
7,400 Arrow Electronics, Inc.* 161,413
5,300 Atmel Corp.* 61,281
3,000 Avnet, Inc. 149,250
6,400 Best Buy, Inc.* 307,200
4,900 Cirrus Logic* 47,622
6,500 Cypress Semiconductor Corp.* 72,313
4,900 Hubbell, Inc. Class B 195,388
3,100 Imation Corp. 54,831
5,600 Linear Technology Corp. 333,900
1,800 Magnatek* 22,838
7,800 Maxim Integrated Products, Inc.* 278,363
11,425 Molex, Inc. 407,730
5,400 Sensormatic Electronics Corp. 30,375
4,350 Symbol Technologies, Inc.* 194,663
3,900 Teradyne, Inc.* 126,750
3,400 UCAR International, Inc.* 61,200
2,200 Varian Associates, Inc. 86,075
4,935 Vishay Intertechnology, Inc.* 74,642
3,800 Xilinx, Inc.* 169,694
-------------
3,310,804
-------------
Electrical Equipment (0.32%)
5,900 Integrated Device Technology, Inc.* 40,931
4,400 SCI Systems, Inc.* 173,800
-------------
214,731
-------------
Food & Beverages (3.72%)
3,200 Bob Evans Farms, Inc. 63,000
24,200 Coca-Cola Enterprises, Inc. 872,713
2,900 Dean Foods Corp. 135,938
4,400 Dole Food Co. 132,550
1,800 Dreyer's Grand Ice Cream, Inc. 23,625
6,500 Flowers Industries, Inc. 133,250
3,100 Hannaford Brothers Co. 135,819
3,700 Hormel Foods Corp. 120,481
6,700 IBP, Inc. 181,319
1,300 International Multifoods Corp. 27,056
5,400 Interstate Bakeries 135,338
2,200 J.M. Smucker Co. Class A 48,400
2,200 Lance, Inc. 42,075
3,000 McCormick & Co., Inc. 93,188
12,600 Tyson Foods, Inc. 289,800
3,600 Universal Foods Corp. 78,075
-------------
2,512,627
-------------
Health Care Products (Distribution) (0.74%)
3,700 Bergen Brunswig Corp. Class A 180,606
1,615 Cardinal Health, Inc. 152,718
6,800 Sybron Corp.* 168,300
-------------
501,624
-------------
Health Care Services (1.41%)
3,800 Apria Healthcare* 15,438
4,600 First Health Group Inc. 106,088
6,000 Foundation Health Systems-Class A 70,500
17,850 Health Management
Associates Class A* 317,953
3,300 Healthcare & Retirement Corp.* 107,250
9,000 Laboratory Corp. of America* 14,625
4,500 NovaCare, Inc.* 18,563
5,700 Oxford Health Plan* 67,331
2,700 Pacificare Health System 212,625
5,000 Vencor, Inc.* 23,125
-------------
953,498
-------------
Iron & Steel (0.08%)
800 Cleveland-Cliffs Iron Co. 31,750
1,800 Oregon Steel Mills, Inc. 22,050
-------------
53,800
-------------
Leisure Time (Products) (0.87%)
5,400 Callaway Golf Co. 58,725
9,700 Harley-Davidson, Inc. 375,875
6,800 International Game Technology 153,425
-------------
588,025
-------------
Leisure Time (Services) (0.41%)
7,300 Circus Circus Enterprises, Inc.* 81,669
7,100 Viad Corp. 194,806
-------------
276,475
-------------
Manufacturing (Diversified Industries) (1.67%)
4,500 AGCO Corp. 42,750
2,100 Ametek, Inc. 44,494
4,600 Burlington Industries* 42,550
1,400 Carlisle Co., Inc. 54,075
8,800 Danaher Corp. 351,450
3,000 GenCorp, Inc. 66,375
3,600 Harsco Corp. 117,900
6,700 NCR Corporation 225,288
2,700 Pentair, Inc. 101,588
1,600 Tecumseh Products Co. Class A 83,200
-------------
1,129,670
-------------
Manufacturing (Specialized Industries) (2.53%)
1,818 Albany International Corp. 33,179
5,600 American Power Conversion Corp.* 237,650
4,100 Dentsply International 105,575
5,000 Diebold, Inc. 155,938
2,800 Donaldson Co., Inc. 50,925
3,400 Federal Signal Corp. 81,813
2,200 Flowserve Corp. 39,600
2,300 Kaydon Corp. 80,788
1,800 Kennametal, Inc. 37,350
700 Lawson Products, Inc. 16,275
13,600 Leggett & Platt, Inc. 317,900
2,200 Modine Manufacturing Co. 72,050
500 NCH Corp. 34,250
700 Nordson Corp. 31,369
2,400 Stewart & Stevenson Services, Inc. 32,850
2,700 Teleflex, Inc. 104,456
3,200 Trinity Industries, Inc. 118,800
2,000 Watts Industries Class A 36,750
3,200 York International Corp. 120,400
-------------
1,707,918
-------------
Medical Products & Supplies (1.16%)
2,200 Acuson Corp.* 33,138
8,400 Allegiance Corp. 312,375
2,100 Beckman Coulter, Inc.* 98,700
1,000 Datascope Corp.* 22,563
600 Diagnostic Products Corp. 13,538
333 Sonosight, Inc. 2,289
7,100 Stryker Corp. 297,756
-------------
780,359
-------------
Metals (Specialty) (0.10%)
1,200 Brush Wellman 20,400
1,400 Carpenter Technology Corp. 49,088
-------------
69,488
-------------
Miscellaneous (5.89%)
4,200 A.C. Nielson 112,350
4,100 AK Steel Holding Corp. 70,981
5,000 American Water Works Co., Inc. 159,688
1,275 Ascend Communications 61,519
3,700 Cintas Corp. 197,950
7,700 Clayton Homes, Inc. 118,869
3,200 Gtech Holdings Corp.* 76,800
3,900 Hillenbrand 230,831
2,900 Kelly Services, Inc. Class A 91,169
3,300 Lancaster Colony Corp. 99,000
3,400 Litton Industries, Inc.* 221,850
6,100 Manpower, Inc. 147,163
4,700 Mark IV Industries, Inc. 72,263
5,400 McKesson Corp. 415,800
5,300 Medaphis Corp.* 17,225
1,082 Metris Companies 35,571
1,500 Minerals Technologies, Inc. 68,344
2,500 Newport News Shipbuilding 65,781
3,700 Ogden Corp. 99,438
6,000 Olsten Corp. 55,125
12,000 Paychex, Inc. 597,000
3,515 Promus Hotel Corp.* 112,041
6,500 Robert Half International, Inc.* 260,812
3,400 Ruddick Corp. 66,087
3,100 Sealed Air Corp.* 109,856
4,100 Sotheby's Holdings Class A 88,662
6,000 Stewart Enterprises 138,375
6,660 Williams Cos., Inc. 182,734
-------------
3,973,284
-------------
Office Equipment & Supplies (1.30%)
3,800 Herman Miller, Inc. 83,837
4,400 Hon Industries, Inc. 93,225
17,600 Office Depot, Inc.* 440,000
9,100 Officemax, Inc.* 83,037
6,000 Reynolds & Reynolds Class A 108,000
1,000 Standard Register Co. 28,687
2,000 Wallace Computer Services, Inc. 43,750
-------------
880,536
-------------
Oil & Gas (1.62%)
2,266 Indiana Energy, Inc. 50,702
2,700 Keyspan Energy 80,662
3,300 Murphy Oil Corp. 136,331
4,200 Noble Affiliates, Inc. 137,550
2,000 Pioneer Natural Resources 30,125
2,500 Quaker State Corp. 35,312
6,900 Ranger Oil Ltd.* 43,987
4,700 Seagull Energy Corp.* 56,106
8,500 Tosco Corp. 238,531
5,300 Ultramar Diamond Shamrock 142,769
3,600 Valero Energy 90,000
4,700 Varco International, Inc.* 50,819
-------------
1,092,894
-------------
Oil & Gas Drilling (2.41%)
5,800 BJ Services Co.* 118,537
8,800 El Paso Energy Corp. 311,850
10,400 ENSCO International, Inc.* 139,750
12,500 Global Marine, Inc.* 154,687
7,000 Nabors Industries, Inc.* 129,500
9,800 Noble Drilling Corp.* 168,437
5,500 Parker Drilling Co.* 27,156
2,900 Smith International, Inc.* 104,219
3,500 Tidewater, Inc. 99,094
7,400 Transocean Offshore 273,337
3,610 Weatherford, Inc. 98,147
-------------
1,624,714
-------------
Paper / Forest Products / Containers (1.64%)
2,800 Bowater, Inc. 114,275
1,700 Chesapeake Corp. of Virginia 59,500
6,600 Consolidated Papers 158,812
1,200 Gibson Greetings, Inc.* 12,525
3,800 Longview Fiber Co. 45,600
3,100 P.H. Glatfelter Co. 38,169
2,200 Rayonier Inc. 86,212
7,260 Sonoco Products 206,002
4,900 Unisource Worlwide, Inc. 45,019
2,500 Vulcan Materials Co. 296,562
2,700 Wausau-Mosinee Paper Corp. 47,081
-------------
1,109,757
-------------
Pharmaceuticals (1.64%)
3,400 Carter-Wallace, Inc. 60,350
1,900 Covance, Inc. 52,962
6,000 Forest Laboratories, Inc.* 250,875
7,800 IVAX Corp. 74,100
9,000 Mylan Laboratories, Inc. 309,937
6,400 Watson Pharmaceuticals, Inc.* 356,000
-------------
1,104,224
-------------
Pollution Control (0.63%)
5,811 U.S. Filter Corp.* 123,121
6,700 Waste Management, Inc. 302,337
-------------
425,458
-------------
Publishing (Books) (0.20%)
2,200 Houghton Mifflin Co. 85,800
1,200 Scholastic Corp.* 47,325
-------------
133,125
-------------
Publishing (Newspapers) (1.13%)
5,800 A. H. Belo Corp. Class A 105,488
3,400 Lee Enterprises, Inc. 92,437
2,000 Media General, Inc. Class A 89,500
900 Washington Post Co. Class B 477,900
-------------
765,325
-------------
Restaurants (0.57%)
5,900 Brinker International, Inc.* 142,706
1,900 Buffets, Inc.* 20,544
2,400 Cracker Barrel Old
Country Stores, Inc. 62,100
2,700 Lone Star Steakhouse & Saloon* 21,600
3,500 Outback Steakhouse* 121,187
700 Sbarro, Inc. 16,450
-------------
384,587
-------------
Retail Stores (General Merchandise) (0.59%)
7,886 Consolidated Stores, Inc.* 129,626
2,800 Fastenal Co. 101,150
3,200 Fred Meyer, Inc. 170,600
-------------
401,376
-------------
Retail Stores (Specialty) (4.47%)
2,200 AnnTaylor Stores Corp.* 63,800
10,000 Bed Bath & Beyond, Inc.* 275,625
2,800 BJ's Wholesale Club 100,625
3,500 Claire's Stores, Inc. 59,281
13,125 Dollar General Corp. 313,359
12,600 Family Dollar Stores, Inc. 228,375
3,400 Fingerhut Co. 28,687
3,800 Heilig-Meyers Co. 29,212
7,800 Jones Apparel Group, Inc.* 134,550
10,600 Kohls Corp.* 506,812
2,400 Lands' End, Inc.* 40,950
2,700 Nine West Group, Inc.* 34,256
1,800 Payless Shoesource, Inc. 84,487
5,600 Perrigo Co.* 44,450
7,000 Service Merchandise Co., Inc.* 10,062
18,000 Staples, Inc.* 587,250
5,700 Starbucks Corp.* 247,237
2,000 Superior Industries
International, Inc. 52,375
2,500 Tiffany & Co. 80,781
3,600 Warnaco Group 92,025
-------------
3,014,199
-------------
Textile Specialty (0.10%)
2,300 Unifi, Inc. 38,812
2,400 Wellman, Inc. 30,150
-------------
68,962
-------------
Total Industrial 38,718,206
-------------
TRANSPORTATION (1.25%)
Airfreight (0.23%)
3,000 Airborne Freight Corp. 70,312
2,900 Pittston Services Group 86,275
-------------
156,587
-------------
Airlines (0.11%)
1,100 ASA Holdings, Inc. 39,462
1,000 Alaska Air Group, Inc.* 35,937
-------------
75,399
-------------
Railroads (0.54%)
50 Canadian National Railway Co . 2,522
3,800 GATX Corp. 131,100
6,000 Kansas City Southern
Industries, Inc. 231,750
-------------
365,372
-------------
Shipping (0.12%)
2,400 Alexander & Baldwin, Inc. 48,750
1,800 Overseas Shipholding Group, Inc. 31,725
-------------
80,475
-------------
Truckers (0.25%)
1,900 Arnold Industries, Inc. 24,225
3,400 CNF Transportation, Inc. 102,850
2,400 J.B. Hunt Transport Services, Inc. 40,200
-------------
167,275
-------------
Total Transportation 845,108
-------------
UTILITIES (10.38%)
Electric Utilities (8.13%)
10,600 AES Corp.* 433,937
9,000 Allegheny Energy, Inc. 276,750
1,500 Black Hills Corp. 38,719
7,000 CMS Energy Corp. 308,437
4,500 Calenergy 123,187
1,700 Cleco Corp. 57,481
2,300 CMP Group, Inc. 42,406
7,425 Conectiv, Inc. 169,847
487 Conectiv, Inc. Pref. "A" 17,989
2,700 Energy East Corp. 131,962
3,300 Florida Progress Corp. 138,394
2,300 Hawaiian Electric Industries, Inc. 91,137
2,400 Idaho Power Co. 75,000
5,300 Illinova Corp. 134,156
1,400 Interstate Energy Corp. 43,312
3,000 Ipalco Enterprises, Inc. 137,625
4,500 Kansas City Power & Light Co. 129,656
4,900 LG&E Energy Corp. 129,237
7,400 Midamerican Energy Hldgs. 192,400
2,300 Minnesota Power & Light Co. 96,456
4,000 Montana Power Co. 173,250
1,600 NIPSCO Industries, Inc. 47,900
3,300 Nevada Power Co. 83,325
7,720 New Century Energies 372,972
4,700 New England Electric System 191,231
9,400 Northeast Utilities 146,875
6,000 OGE Energy Corp. 159,375
2,382 PG & E Corporation 72,502
5,200 Pinnacle West Capital Corp. 227,825
7,700 Potomac Electric Power Co. 201,644
3,000 Public Service Co. of New Mexico 66,187
6,200 Puget Sound Power & Light Co. 167,400
7,800 SCANA Corp. 263,737
9,500 TECO Energy, Inc. 262,437
4,000 Utilicorp United, Inc. 143,750
4,500 Wisconsin Energy Corp. 137,812
-------------
5,486,310
-------------
Gas Utilities (0.78%)
3,600 AGL Resources, Inc. 75,375
5,600 MCN Corp. 108,150
2,900 National Fuel & Gas Co. 137,025
6,000 Questar Corp. 118,125
3,200 Washington Gas Light Corp. 84,600
-------------
523,275
-------------
Telephone Companies (Local) (1.47%)
2,700 Aliant Communication 76,191
6,600 Century Telephone Enterprises, Inc. 374,962
8,608 SBC Communications, Inc. 398,673
3,600 Telephone & Data Systems, Inc. 143,550
-------------
993,376
-------------
Total Utilities 7,002,961
-------------
FINANCIAL (14.46%)
Banks (8.58%)
6,048 Charter One Financial 165,942
3,400 City National Corp. 116,237
8,100 Crestar Financial Corp. 533,587
12,300 First Security Corp. 251,381
8,400 First Tennessee National Corp. 266,175
3,950 First Virginia Banks, Inc. 180,219
10,600 Firstar Corp. 601,550
9,500 Hibernia Corp. Class A 158,531
4,800 Marshall & Ilsley Corp. 234,000
7,950 Mercantile Bancorp, Inc. 363,216
5,200 Mercantile Bankshares Corp. 169,650
7,080 National City Corp. 455,332
8,200 Northern Trust Corp. 604,750
6,100 Pacific Century Financial Corp. 124,287
9,700 Regions Financial Corp. 358,900
10,800 SouthTrust Corp. 394,200
9,450 Summit Bancorp 358,509
4,700 Union Planters Corp. 218,256
1,827 Wachovia Corp. 166,029
1,300 Wilmington Trust Corp. 71,581
-------------
5,792,332
-------------
Brokerage (1.33%)
7,100 A.G. Edwards & Sons, Inc. 245,394
8,900 Bear Stearns Co., Inc. 317,619
10,100 PaineWebber Group, Inc. 337,719
-------------
900,732
-------------
Financial Miscellaneous (1.23%)
4,900 Capital One Financial Corp. 498,575
3,000 Finova Group, Inc. 146,250
2,500 PMI Group, Inc. 126,094
5,000 Ventas, Inc. 57,188
-------------
828,107
-------------
Insurance (2.17%)
17,200 AFLAC, Inc. 655,750
2,600 AMBAC, Inc. 151,288
4,600 American Financial Group, Inc. 161,287
2,250 HSB Group, Inc. 90,844
7,300 Provident Cos., Inc.* 212,156
2,500 Transatlantic Holdings 195,000
-------------
1,466,325
-------------
Investment Management (1.15%)
12,600 Franklin Resources Corp. 476,437
8,400 T. Rowe Price 298,725
-------------
775,162
-------------
Total Financial 9,762,658
-------------
Total Common Stock
(cost $51,651,410) 56,328,933
-------------
Principal
Amount
---------
SHORT-TERM INVESTMENTS (16.15%)
Repurchase Agreement, (12.01%)(b)
$ 8,103,000 First Boston
5.35%; 11/2/98 (cost $8,103,000;
maturity value $8,106,613) 8,103,000
-------------
United States Treasury Bill (4.14%)(c)
2,800,000 4.94%; 11/12/98 (cost $2,796,200) 2,796,200
-------------
Total Short-term Investments
(cost $10,899,200) 10,899,200
-------------
Total Investments (cost $62,550,610)(a)
(99.61%)(a) 67,228,133
Other Assets Less Liabilities (0.39%) 264,441
-------------
Net Assets (100.00%) $ 67,492,574
=============
* Non-income producing security.
(a) Aggregate cost for federal income tax purposes is $62,550,610. At
October 31, 1998 unrealized appreciation (depreciation) of securities for
federal income tax purposes is as follows:
Gross unrealized appreciation $ 11,521,898
Gross unrealized depreciation (6,844,375)
-------------
Net unrealized appreciation $ 4,677,523
=============
(b) The Repurchase Agreement is collateralized by obligations of the
United States government and its agencies with a market value of
$8,479,939 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, 1998, the market value of $2,796,200 of the U.S.
Treasury Bills were pledged to cover margin requirements for futures
contracts.
Futures contracts at October 31, 1998:
(Contracts-$500 times premium/delivery
month/commitment)
Unrealized
Appreciation
-------------
S&P 400 MidCap Stock Index:
65/Dec/Buy $ 551,743
=============
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
Statement of
Assets and Liabilities
October 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
The Rightime
The Rightime Social The Rightime
The Rightime Blue Chip Awareness MidCap
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at market value
(Identified cost $106,475,481; $187,761,094;
$13,544,374 and $62,550,610, respectively)
(Note 1) $109,441,389 $271,076,003 $13,896,544 $ 67,228,133
Cash 495,143 22,454 570 4,751
Receivables:
Dividends and interest 202,815 235,319 8,320 62,164
Fund shares sold 6,445 95,934 1,712 127,849
Investment securities sold -- 48,516 -- --
Variation margin 515,702 276,250 -- 177,125
Prepaid expenses and other assets 38,106 65,026 1,812 18,003
------------ ------------ ------------ ------------
Total assets 110,699,600 271,819,502 13,908,958 67,618,025
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Fund shares repurchased 58,388 266,668 1,850 90,339
Accrued expenses 36,708 127,328 17,501 33,509
Other liabilities 5,781 9,723 268 1,603
------------ ------------ ------------ ------------
Total liabilities 100,877 403,719 19,619 125,451
------------ ------------ ------------ ------------
NET ASSETS
(applicable to 3,147,865; 6,622,561; 386,297 and
1,917,678 outstanding shares, respectively)
(Note 4) $110,598,723 $271,415,783 $13,889,339 $67,492,574
============ ============ ============ ============
Net asset value and redemption price per share $35.13 $40.98 $35.96 $35.19
====== ====== ====== ======
Maximum offering price per share $35.13 $43.02(1) $37.75(1) $36.94(1)
====== ====== ====== ======
NET ASSETS
At October 31, 1998 net assets consisted of:
Paid-in capital $ 92,311,095 $157,571,781 $ 10,849,967 $ 50,344,861
Undistributed net investment income 1,253,954 -- 105,343 --
Undistributed net realized gain on investments 12,687,691 29,390,943 2,581,859 11,918,447
Net unrealized appreciation of investments 2,965,908 83,314,909 352,170 4,677,523
Net unrealized appreciation
of futures contracts 1,380,075 1,138,150 -- 551,743
------------ ------------ ------------ ------------
$110,598,723 $271,415,783 $ 13,889,339 $ 67,492,574
============ ============ ============ ============
(1) Net asset value, plus 4.99% of net asset value or
4.75% of offering price.
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
Statement of Operations
For the Year Ended October 31, 1998
- -----------------------------------------------------------------------------------------------------------------------------
The Rightime
The Rightime Social The Rightime
The Rightime Blue Chip Awareness MidCap
Fund Fund Fund Fund
------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 1,879,134 $ 3,694,283 $ 87,927 $ 752,961
Interest 2,221,887 1,328,675 325,165 441,637
------------ ------------ ------------ ------------
Total income 4,101,021 5,022,958 413,092 1,194,598
------------ ------------ ------------ ------------
EXPENSES
Administrative services (Note 2) 1,067,932 2,248,302 111,199 572,704
Investment advisory fees (Note 2) 562,069 1,322,530 65,411 336,885
Distribution costs -- 12b-1 (Notes 2 and 3) 562,069 661,265 32,705 168,443
Distribution costs -- service charge
(Notes 2 and 3) 281,035 661,265 32,705 168,443
Transfer agent fees (Note 2) 187,335 400,735 14,814 118,535
Accounting services (Note 2) 50,748 78,416 12,808 41,998
Legal and audit fees 39,187 76,506 7,279 22,013
Reports to shareholders 17,167 44,977 2,119 10,752
Custody fees 16,165 32,137 4,168 10,621
Registration fees 13,403 13,193 11,455 11,425
Directors fees 13,319 33,463 1,549 8,172
Insurance 11,102 30,087 1,435 7,224
Miscellaneous 25,039 84,302 9,785 28,861
------------ ------------ ------------ ------------
Total expenses 2,846,570 5,687,178 307,432 1,506,076
------------ ------------ ------------ ------------
Net investment income (loss) 1,254,451 (664,220) 105,660 (311,478)
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions 17,891,366 30,148,296 2,481,462 664,389
Capital gain distribution from
regulated investment companies 5,710,686 -- -- --
Net realized gain on futures contracts 5,425,895 16,903,481 90,134 11,484,174
Increase (decrease) in unrealized appreciation of
investments (12,107,474) 15,026,031 381,479 2,427,100
Increase in unrealized appreciation
of futures contracts 1,876,325 1,573,750 9,925 646,993
------------ ------------ ------------ ------------
Net gain on investments 18,796,798 63,651,558 2,963,000 15,222,656
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations $ 20,051,249 $ 62,987,338 $ 3,068,660 $ 14,911,178
============ ============ ============ ============
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
Statement of
Changes in Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
The Rightime Fund The Rightime Blue Chip Fund
------------------------------ ------------------------------
For Year Ended For Year Ended For Year Ended For Year Ended
October 31, October 31, October 31, October 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) $ 1,254,451 $ 1,797,380 $ (664,220) $ 129,471
Net realized gain (loss)
from security transactions 17,891,366 (3,854,154) 30,148,296 42,321,971
Capital gain distributions
from regulated investment companies 5,710,686 7,369,199 -- --
Net realized gain (loss) on futures contracts 5,425,895 (20,966,302) 16,903,481 (67,116,929)
Net increase (decrease) in unrealized appreciation
of investments (12,107,474) 11,322,305 15,026,031 26,089,829
Net increase in unrealized appreciation
of futures contracts 1,876,325 614,750 1,573,750 6,698,525
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations 20,051,249 (3,716,822) 62,987,338 8,122,867
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gains
on investments -- (4,673,075) -- (640,796)
Distributions from net investment income (1,587,062) (2,141,411) (132,463) (3,389,952)
CAPITAL SHARE TRANSACTIONS
Decrease in net assets resulting from
capital share transactions (Note 4) (33,867,271) (29,957,165) (45,826,046) (27,344,248)
------------ ------------ ------------ ------------
Total increase (decrease) (15,403,084) (40,488,473) 17,028,829 (23,252,129)
NET ASSETS
Beginning of year 126,001,807 166,490,280 254,386,954 277,639,083
------------ ------------ ------------ ------------
End of year * $110,598,723 $126,001,807 $271,415,783 $254,386,954
============ ============ ============ ============
* Including undistributed
net investment income of: $ 1,253,954 $ 1,586,565 $ -- $ 130,214
============ ============ ============ ============
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
The Rightime
Social Awareness Fund The Rightime MidCap Fund
------------------------------ ------------------------------
For Year Ended For Year Ended For Year Ended For Year Ended
October 31, October 31, October 31, October 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income (loss) $ 105,660 $ 58,398 $ (311,478) $ 645,123
Net realized gain from security transactions 2,481,462 371,641 664,389 1,365,900
Net realized gain on futures contracts 90,134 32,260 11,484,174 225,405
Net increase (decrease) in unrealized appreciation
of investments 381,479 (29,309) 2,427,100 2,250,423
Net increase (decrease) in unrealized appreciation
of futures contracts 9,925 (9,925) 646,993 (95,250)
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 3,068,660 423,065 14,911,178 4,391,601
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net realized gains
on investments (394,194) (296,922) (1,494,460) (2,647,618)
Distributions from net investment income (57,366) (124,793) (537,779) (1,467,850)
CAPITAL SHARE TRANSACTIONS
Increase (decrease) in net assets resulting from
capital share transactions (Note 4) (195,549) 2,772,190 (14,681,561) (11,284,897)
------------ ------------ ------------ ------------
Total increase (decrease) 2,421,551 2,773,540 (1,802,622) (11,008,764)
NET ASSETS
Beginning of year 11,467,788 8,694,248 69,295,196 80,303,960
------------ ------------ ------------ ------------
End of year * $ 13,889,339 $ 11,467,788 $ 67,492,574 $ 69,295,196
============ ============ ============ ============
* Including undistributed
net investment income of: $ 105,343 $ 57,049 $ -- $ 511,954
============ ============ ============ ============
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
Financial
Highlights
(For a Share Outstanding Throughout Each Year)
October 31, 1998
Net
Realized
Net and
Asset Net Unrealized
Value Investment Gain Total
Beginning Income (Loss) on From
of Year (Loss) Investments Operations
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Rightime Fund
1998 $29.95 $ 0.43 $5.16 $5.59
1997 32.09 0.43 (1.24) (0.81)
1996 37.55 1.14 2.11 3.25
1995 35.50 (0.10) 7.21 7.11
1994 37.42 0.29 (0.49) (0.20)
- -------------------------------------------------------------------------------------------------------
The Rightime Blue Chip Fund
1998 $32.27 $(0.10) $8.83 $8.73
1997 31.88 0.03 0.83 0.86
1996 32.84 0.40 3.52 3.92
1995 33.08 0.35 5.66 6.01
1994 33.14 0.39 (0.04) 0.35
- -------------------------------------------------------------------------------------------------------
The Rightime Social Awareness Fund
1998 $29.31 $ 0.27 $7.55 $7.82
1997 29.09 0.17 1.52 1.69
1996 32.37 0.41 3.88 4.29
1995 26.84 0.08 5.91 5.99
1994 29.07 0.33 (0.72) (0.39)
- -------------------------------------------------------------------------------------------------------
The Rightime MidCap Fund
1998 $29.12 $(0.16) $7.13 $6.97
1997 29.02 0.27 1.33 1.60
1996 32.95 0.49 2.56 3.05
1995 28.44 0.26 5.25 5.51
1994 31.07 0.32 (0.78) (0.46)
(1) Excludes sales charge
<CAPTION>
Distributions Distributions Net
from from Asset
Net Realized Value
Investment Capital Total End Total
Income Gains Distributions of Year Return (1)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
The Rightime Fund
1998 $(0.41) $ -- $(0.41) $35.13 18.86%
1997 (0.42) (0.91) (1.33) 29.95 (2.77)
1996 (0.77) (7.94) (8.71) 32.09 8.96
1995 (0.30) (4.76) (5.06) 37.55 23.38
1994 -- (1.72) (1.72) 35.50 (0.48)
- -----------------------------------------------------------------------------------------------------------------------
The Rightime Blue Chip Fund
1998 $(0.02) $ -- $(0.02) $40.98 27.06%
1997 (0.40) (0.07) (0.47) 32.27 2.63
1996 (0.28) (4.60) (4.88) 31.88 12.26
1995 (0.46) (5.79) (6.25) 32.84 22.31
1994 (0.23) (0.18) (0.41) 33.08 1.06
- -----------------------------------------------------------------------------------------------------------------------
The Rightime Social Awareness Fund
1998 $(0.15) $(1.02) $(1.17) $35.96 27.37%
1997 (0.43) (1.04) (1.47) 29.31 5.77
1996 -- (7.57) (7.57) 29.09 13.62
1995 (0.46) -- (0.46) 32.37 22.70
1994 -- (1.84) (1.84) 26.84 (1.27)
- -----------------------------------------------------------------------------------------------------------------------
The Rightime MidCap Fund
1998 $(0.24) $(0.66) $(0.90) $35.19 24.53%
1997 (0.54) (0.96) (1.50) 29.12 5.55
1996 (0.14) (6.84) (6.98) 29.02 9.65
1995 (0.45) (0.55) (1.00) 32.95 20.07
1994 -- (2.17) (2.17) 28.44 (1.38)
(1) Excludes sales charge
See accompanying notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
RATIOS
-------------------------------------------------------------
Net
Investment
Net Assets Expenses Income (Loss)
At The to Average To Average Portfolio
End of Year Net Assets Net Assets Turnover
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
The Rightime Fund
1998 $110,598,723 2.53% 1.12% 117.73%
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
- -------------------------------------------------------------------------------------------------------
The Rightime Blue Chip Fund
1998 $271,415,783 2.15% (0.25)% 7.97%
1997 254,386,954 2.09 0.05 39.27
1996 277,639,083 2.08 1.25 1.30
1995 249,619,271 2.17 1.13 17.52
1994 221,681,939 2.22 1.16 0.98
- -------------------------------------------------------------------------------------------------------
The Rightime Social Awareness Fund
1998 $13,889,339 2.35% 0.81% 142.15%
1997 11,467,788 2.35 0.55 107.98
1996 8,694,248 2.42 1.51 46.57
1995 7,378,063 2.75 0.32 36.49
1994 7,221,772 2.56 1.04 54.85
- -------------------------------------------------------------------------------------------------------
The Rightime MidCap Fund
1998 $67,492,574 2.25% (0.46)% 0.00%
1997 69,295,196 2.15 0.82 107.08
1996 80,303,960 2.19 1.72 3.59
1995 75,086,295 2.19 0.84 24.67
1994 65,252,084 2.28 1.14 0.75
See accompanying notes to financial statements
</TABLE>
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
October 31, 1998
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
The Rightime 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 quality of human life.
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 Funds may purchase or sell stock index future contracts as a hedge
against changes in market conditions. Risk includes 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.
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 net operating losses, wash sales and futures
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. In the event the expenses of the Fund for any fiscal year
(including the advisory and administrative fees, but excluding interest,
taxes, brokerage commissions, distribution fees, litigation and
indemnification expenses and other extraordinary expenses not incurred in
the ordinary course of the Funds' business) exceed the limits set by
applicable regulation of state securities commissions, if any, the
compensation due to the Advisor will be reduced by the amount of such
excess.
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
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, 1998, the Distributor received
commissions as an underwriter and a retail dealer of Fund shares as
follows:
The Rightime Blue Chip Fund $486,818
The Rightime Social Awareness Fund $ 37,391
The Rightime MidCap Fund $103,963
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 $694,874 and $178,766, respectively. During the year ended October
31, 1998, Lincoln Investment Planning, Inc. waived fees of $8,745 and
$11,672, respectively, for transfer agent and accounting services provided
to the Rightime Social Awareness 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.
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 three Funds. Transactions in capital stock were as
follows:
<TABLE>
<CAPTION>
The Rightime Fund
----------------------------------------------------------
1998 1997
-------------------------- ---------------------------
Shares Value Shares Value
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 280,002 $ 9,304,396 501,144 $ 15,711,129
Shares issued in reinvestment
of distributions 50,697 1,542,726 213,105 6,783,154
---------- ------------ ---------- ------------
330,699 10,847,122 714,249 22,494,283
Shares redeemed (1,390,058) (44,714,393) (1,695,912) (52,451,448)
---------- ------------ ---------- ------------
Net decrease (1,059,359) $(33,867,271) (981,663) $(29,957,165)
========== ============ ========== ============
The Rightime Blue Chip Fund
----------------------------------------------------------
1998 1997
-------------------------- ---------------------------
Shares Value Shares Value
---------- ------------ ---------- ------------
Shares sold 675,121 $ 25,441,729 988,116 $ 33,214,473
Shares issued in reinvestment
of distributions 3,822 130,930 119,492 4,003,675
---------- ------------ ---------- ------------
678,943 25,572,659 1,107,608 37,218,148
Shares redeemed (1,939,495) (71,398,705) (1,932,293) (64,562,396)
---------- ------------ ---------- ------------
Net decrease (1,260,552) $(45,826,046) (824,685) $(27,344,248)
========== ============ ========== ============
The Rightime Social Awareness Fund
----------------------------------------------------------
1998 1997
-------------------------- ---------------------------
Shares Value Shares Value
---------- ------------ ---------- ------------
Shares sold 54,325 $ 1,789,588 162,214 $ 4,900,176
Shares issued in reinvestment
of distributions 13,629 415,697 13,915 411,036
---------- ------------ ---------- ------------
67,954 2,205,285 176,129 5,311,212
Shares redeemed (72,851) (2,400,834) (83,817) (2,539,022)
---------- ------------ ---------- ------------
Net increase (decrease) (4,897) $ (195,549) 92,312 $ 2,772,190
========== ============ ========== ============
The Rightime MidCap Fund
----------------------------------------------------------
1998 1997
-------------------------- ---------------------------
Shares Value Shares Value
---------- ------------ ---------- ------------
Shares sold 140,278 $ 4,394,868 248,536 $ 7,262,137
Shares issued in reinvestment
of distributions 68,685 2,020,018 141,518 4,094,113
---------- ------------ ---------- ------------
208,963 6,414,886 390,054 11,356,250
Shares redeemed (670,773) (21,096,447) (777,511) (22,641,147)
---------- ------------ ---------- ------------
Net increase (decrease) (461,810) $(14,681,561) (387,457) $(11,284,897)
========== ============ ========== ============
</TABLE>
NOTE 5 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities other than short-term investments during
the year ended October 31, 1998 were as follows:
Purchases Sales
-------------- --------------
The Rightime Fund $85,349,282 $125,919,626
The Rightime Blue Chip Fund $18,911,154 $ 61,696,467
The Rightime Social
Awareness Fund $17,348,053 $ 17,391,392
The Rightime MidCap Fund $ 0 $ 12,148,721
THIS PAGE INTENTIONALLY LEFT BLANK
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
Report of Independent
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 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, 1998 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, 1998 by correspondence
with the custodian. 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 Blue Chip Fund, The Rightime Social
Awareness Fund and The Rightime MidCap Fund as of October 31, 1998, 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 19, 1998
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
October 31, 1998
The Rightime Fund
Performance Comparison
The fiscal year ending October 31, 1998 was the fourth straight year of
above average returns for large-cap equity investors. Although there have
been turbulent months, large-cap investors have been rewarded for their
perseverance. Small-cap investors tended to lose money, as did investors
in natural resources and many other commodities. For the second straight
year, volatility in foreign countries roiled the market with a magnitude
unseen since 1990. However, as October ended, the market reacted to
interest rate cuts and began a spirited rally which has lasted through the
beginning of December.
The Rightime Fund navigated the treacherous markets of 1998 with much
success. We were fully invested through the beginning of May. We became
more conservative during the summer months. After the end of the summer
sell-off, the econometric Rightime Market Model RTMM(r) turned positive and
we became more aggressively invested in the market. In this way we limited
our losses in the turbulent summer months and participated in the rally
during late October.
We have entered the next fiscal year with a bullish bias towards equities.
However, the global market place remains troubled and the confidence that
investors have shown over the last eighteen months has proven fleeting at
times. That being stated, the domestic economy remains in solid shape.
Employment remains robust and the decreasing interest rate environment has
been favorably received. Earnings are what drive stock prices and
companies that are perceived to have dependable earnings have been richly
rewarded. However, 1999 may be the year that many companies miss earnings
expectations. We will continue to invest with the discipline that the
RTMM(r) establishes.
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
- ------------ ------------ ------------ ---------------
18.86% 9.10% 9.47% 10.88%
- ---------------------------------------------------------------------------
Performance Comparison
[GRAPHIC OMITTED: WORM CHART]
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
[GRAPHIC OMITTED: WORM CHART]
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]
RIGHTIME
FAMILY OF FUNDS
October 31, 1998
The Rightime Blue Chip Fund
Performance Comparison
The fiscal year ending October 31, 1998 was the fourth straight year of
above average returns for large-cap equity investors. Although there have
been turbulent months, large-cap investors have been rewarded for their
perseverance. Small-cap investors tended to lose money, as did investors
in natural resources and many other commodities. For the second straight
year, volatility in foreign countries roiled the market with a magnitude
unseen since 1990. However, as October ended, the market reacted to
interest rate cuts and began a spirited rally which has lasted through the
beginning of December.
The Rightime Blue Chip Fund navigated the treacherous markets of 1998 with
much success. We were fully invested through the beginning of May. We
became more conservative during the summer months. After the end of the
summer sell-off, the econometric Rightime Market Model RTMM(r) turned
positive and we became more aggressively invested in the market. In this
way we limited our losses in the turbulent summer months and participated
in the rally during late October.
We have entered the next fiscal year with a bullish bias towards equities.
However, the global market place remains troubled and the confidence that
investors have shown over the last eighteen months has proven fleeting at
times. That being stated, the domestic economy remains in solid shape.
Employment remains robust and the decreasing interest rate environment has
been favorably received. Earnings are what drive stock prices and
companies that are perceived to have dependable earnings have been richly
rewarded. However, 1999 may be the year that many companies miss earnings
expectations. We will continue to invest with the discipline that the
RTMM(r) establishes.
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
- ------------ ------------ ------------ ---------------
21.02% 11.50% 10.72% 10.15%
- ---------------------------------------------------------------------------
Performance Comparison
[GRAPHIC OMITTED: WORM CHART]
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
[GRAPHIC OMITTED: WORM CHART]
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]
RIGHTIME
FAMILY OF FUNDS
October 31, 1998
The Rightime
Social Awareness Fund
Performance Comparison
The fiscal year ending October 31, 1998 was the fourth straight year of
above average returns for large-cap equity investors. Although there have
been turbulent months, large-cap investors have been rewarded for their
perseverance. Small-cap investors tended to lose money, as did investors
in natural resources and many other commodities. For the second straight
year, volatility in foreign countries roiled the market with a magnitude
unseen since 1990. However, as October ended, the market reacted to
interest rate cuts and began a spirited rally which has lasted through the
beginning of December.
The Rightime Social Awareness Fund navigated the treacherous markets of
1998 with much success. We were fully invested through the beginning of
May. We became more conservative during the summer months. After the end
of the summer sell-off, the econometric Rightime Market Model RTMM(r) turned
positive and we became more aggressively invested in the market. In this
way we limited our losses in the turbulent summer months and participated
in the rally during late October.
We have entered the next fiscal year with a bullish bias towards equities.
However, the global market place remains troubled and the confidence that
investors have shown over the last eighteen months has proven fleeting at
times. That being stated, the domestic economy remains in solid shape.
Employment remains robust and the decreasing interest rate environment has
been favorably received. Earnings are what drive stock prices and
companies that are perceived to have dependable earnings have been richly
rewarded. However, 1999 may be the year that many companies miss earnings
expectations. We will continue to invest with the discipline that the
RTMM(r) establishes.
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
- ------------ ------------ ---------------
21.33% 12.05% 9.99%
- -------------------------------------------------------
Performance Comparison
[GRAPHIC OMITTED: WORM CHART]
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
[GRAPHIC OMITTED: WORM CHART]
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]
RIGHTIME
FAMILY OF FUNDS
October 31, 1998
The Rightime MidCap Fund
Performance Comparison
The fiscal year ending October 31, 1998 was the fourth straight year of
above average returns for large-cap equity investors. Although there have
been turbulent months, large-cap investors have been rewarded for their
perseverance. Small-cap investors tended to lose money, as did investors
in natural resources and many other commodities. For the second straight
year, volatility in foreign countries roiled the market with a magnitude
unseen since 1990. However, as October ended, the market reacted to
interest rate cuts and began a spirited rally which has lasted through the
beginning of December.
The Rightime MidCap Fund navigated the treacherous markets of 1998 with
much success. We were fully invested through the beginning of May. We
became more conservative during the summer months. After the end of the
summer sell-off, the econometric Rightime Market Model RTMM(r) turned
positive and we became more aggressively invested in the market. In this
way we limited our losses in the turbulent summer months and participated
in the rally during late October.
We have entered the next fiscal year with a bullish bias towards equities.
However, the global market place remains troubled and the confidence that
investors have shown over the last eighteen months has proven fleeting at
times. That being stated, the domestic economy remains in solid shape.
Employment remains robust and the decreasing interest rate environment has
been favorably received. Earnings are what drive stock prices and
companies that are perceived to have dependable earnings have been richly
rewarded. However, 1999 may be the year that many companies miss earnings
expectations. We will continue to invest with the discipline that the
RTMM(r) establishes.
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
- ------------ ------------ ---------------
18.63% 10.20% 11.06%
- -------------------------------------------------------
Performance Comparison
[GRAPHIC OMITTED: WORM CHART]
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
[GRAPHIC OMITTED: WORM CHART]
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.
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
<TABLE>
<CAPTION>
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 Vice Chairman of the Board and Member of the
Belleair, FL 33456 Finance, Investment and Executive Committee,
Sacred Heart Hospital, Formerly, Executive
Director, National Catholic Education
Association, Pastor Emertis, Church of Holy
Guardian Angels, Reading, PA.
Dr. Winifred L. Tillery Director Education Consultant, Former Superintendent of
Mt. Laurel, NJ 08054 Schools, 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").
</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
First Union National Bank
530 Walnut Street
Philadelphia, PA 19106
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
Printed on recycled paper
[RIGHTIME LOGO]
RIGHTIME
FAMILY OF FUNDS
218 Glenside Ave.
Wyncote, PA 19095-1594
BULK RATE
U.S. POSTAGE
PAID
LANCASTER, PA
PERMIT NO. 1793
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