<PAGE>
[DLJ LOGO]
ANNUAL REPORT
Leadership through Experience
-----------------------------
DLJ Core Equity Fund
DLJ Growth and Income Fund
DLJ Small Company Value Fund
DLJ Technology Fund
DLJ Strategic Growth Fund
DLJ International Equity Fund
DLJ Developing Markets Fund
DLJ Fixed Income Fund
DLJ Municipal Trust Fund
DLJ High Income Fund
October 31, 2000
<PAGE>
DEAR SHAREHOLDERS:
Without a doubt, the most newsworthy development in the capital markets since
our April report has been the demise of the NASDAQ market, led by the collapse
of the 'new economy dot-coms'. While painful to watch, we think this return to
old economy concepts like earnings and valuation, is healthier for the markets
in the long term. We are pleased to note that all of our domestic equity funds
are ahead of their respective benchmarks for the calendar year to date,
rewarding patience and our sticking to our investment disciplines.
While the equity markets, particularly the international arena, have generally
been difficult, the fixed income markets have provided positive returns as
interest rates decline in anticipation of an economic slowdown and the Federal
Reserve's adoption of an easing bias. The notable exception has been the high
yield area, where weakness in the telecom area has impacted the entire market,
driving yield spreads significantly higher.
We believe our portfolios are relatively well positioned. The return to more
traditional valuation metrics can only help us. If the economy experiences only
a modest slowdown, even the high yield area may become attractive, while our
core fixed income portfolios should continue to do well.
DLJ CORE EQUITY FUND
For the twelve months ended October 31, 2000 the DLJ Core Equity Fund Class A
shares returned 14.39% versus a 6.09% return for the S&P 500. Investments in the
technology, pharmaceuticals, and financial sectors were among the Fund's best
performers. Among the Fund's more successful technology holdings were Ciena, EMC
Corp and Scientific Atlanta. In the pharmaceuticals/medical supplies group,
Amgen, Baxter International, and Medtronic performed especially well. Some of
our telecom and retail holdings were our poorer performers.
DLJ GROWTH AND INCOME FUND
For the year ended October 31, 2000 the DLJ Growth and Income Fund Class A
shares returned 8.44% versus a 6.09% return for the S&P 500. The recent rotation
back to more 'value' oriented issues has helped the fund considerably. Consumer
staples, led by healthcare issues, and energy have been our strongest performing
sectors. Technology, where we have only modest exposure, has been our weakest
sector.
We continue to reduce the number of names in the portfolio. At the end of
October, we held 62 issues, down from 73 as of October 1999. In an attempt to
make the portfolio more defensive, we have been trying to reduce the overall
price/earnings ratio of the portfolio. We have reduced or eliminated exposure to
some richly valued issues including: Walgreen's, Automatic Data Processing,
American International Group, and Enron.
On the buy side, we have modestly raised the yield of the portfolio through the
purchase of some high quality companies available at reasonable valuations,
including: Avery Dennison, CP&L Energy, Emerson Electric, Kimberly Clark, and
3M. Our worst purchases were in the technology sector, with Computer Associates
and Unisys among our biggest losers.
DLJ SMALL COMPANY VALUE FUND
For the fiscal year ended October 31, 2000 the DLJ Small Company Value Fund
Class A shares returned 21.69% versus 17.41% for the Russell 2000 Index. The
collapse of the NASDAQ market that began in the Spring of 2000 has helped the
Fund's performance dramatically relative to the Russell 2000 Index. We have had
no exposure to the 'new economy dot coms' that have imploded over the past six
months. Generally, our consumer staple holdings, particularly those that are
health care related, have been strong performers. Some of our technology stocks
have performed poorly.
Due in part to the volatility experienced by our technology holdings, we did
make a larger than usual capital gains distribution for the fiscal year just
ended. While we were fortunate in eliminating or reducing many of our technology
issues at much higher than current prices, many of these issues were relatively
short-lived holdings. We have tried to reduce the gain without sacrificing the
longer-term potential of the Fund.
While the Fund has enjoyed strong absolute and relative performance thus far in
2000, we believe our holdings remain significantly undervalued. To a large
degree, we feel this year has just been the start of a 'catch-up' period
following two very difficult years for the small cap value style. As investor
enthusiasm for all things technology wanes, we believe the Fund is well situated
for several years of potentially strong performance.
DLJ TECHNOLOGY FUND
From the inception of the Fund through the fiscal year ended October 31, 2000
the DLJ Technology Fund Class R shares returned 27.90% versus 11.81% for the
Hambrecht and Quist Technology Index. Investments in the Storage Networks and
Systems, Telecommunications Equipment, Software, and Semiconductor industries
were among the Fund's best performers. Investments in the Internet, Wireless
Telecommunication, and Information Services industries under-performed over the
period.
DLJ STRATEGIC GROWTH FUND
From the inception of the Fund through the fiscal year ended October 31, 2000
the DLJ Strategic Growth Fund Class R shares returned 9.40% versus - 3.01% for
the S&P BARRA Growth Index. Investments in the Software, Hardware, Electronics,
Semiconductor, and Securities and Asset Management industries were among the
Fund's best performers. Investments in the Department Stores,
Telecommunications, and Specialty Retail industries under-performed over the
period.
<PAGE>
DLJ INTERNATIONAL EQUITY FUND
The DLJ International Equity Fund Class A returned - 1.87% versus - 2.66% for
the Fund's benchmark, the MSCI EAFE Free Index, for the year ended October 31,
2000. International developed markets have had a disappointing year, with most
markets falling since the end of the first quarter. In Europe, despite some
anecdotal evidence of improving export competitiveness due to the weak Euro and
productivity gains, the automobile and machinery sectors underperformed, but the
real culprit was the telecommunications sector. Following frenzied expectations
for 3G spectrum auctions earlier in the year, mature reflection concluded that
there are some very large bills to be paid. A general sense of pessimism in
global markets, in general, was worsened by profit warnings from some US
technology companies.
The Fund maintained an overweighted position in Asia, underweighted in Japan,
and it was slightly underweighted in Europe.
DLJ DEVELOPING MARKETS FUND
The total return of the Class A shares of the DLJ Developing Markets Fund for
the year ended October 31, 2000 was - 13.67% versus - 8.81% for the Fund's
benchmark, the MSCI Emerging Markets Free Index. Following a spectacular 1999,
developing markets were down during most of 2000. Markets sold off sharply,
especially during the third and fourth quarter, primarily due to growing
concerns over the impact of a slowing US economy, rising oil prices, profit
warnings, and currency volatility. Asian markets have been the most impacted on
a relative basis. At these levels, Global Emerging Markets are poised to
recover, are oversold, and valuations look very cheap. Over the next 12 months,
we continue to expect that the best returns are likely to come from Brazil,
China and South Korea.
The Fund had higher weightings in Latin America and Asia relative to its index.
DLJ FIXED INCOME FUND
The DLJ Fixed Income Fund Class A shares returned 5.31% for the fiscal year
ended October 31, 2000 versus 6.46% for the Lehman Brothers Government
Corporate Intermediate Bond Index. The Federal Reserve maintained a bias toward
higher short-term interest rates throughout this time period, in an effort to
slow domestic growth. This effort to slow growth, coupled with the U.S.
Treasury's decision to implement a series of Treasury debt buybacks, increased
the overall demand for long maturity debt with no perceived credit risk. The
Fund increased it's exposure to Treasury debt throughout the year, in an effort
to capture the appreciation potential afforded this sector.
DLJ MUNICIPAL TRUST FUND
The DLJ Municipal Trust Fund Class A shares returned 5.20% for the fiscal year
ended October 31, 2000. Returns in the municipal bond markets were aided this
year by a significant decrease in interest rates as the marketplace responded to
decreases in economic activity, anticipating a more accomodative Federal Reserve
monetary policy. Additionally, municipal bond performance was aided from a
technical standpoint by reduced primary market municipal supply coupled with
strong demand by the investing public. The Fund was shorter in average maturity
than its peer group this year in order to accomodate liquidations made
throughout the year and consequently lagged the Lipper Intermediate Muni
Index return of 6.44% for the fiscal year ended October 31, 2000.
DLJ HIGH INCOME FUND
The DLJ High Income Fund outperformed the Lipper High Yield Bond Fund Index
(the Lipper Index) for the fiscal year ended October 31, 2000. The
Fund's average annual total return for the fiscal year periods noted above was
- 0.06% on its Class A shares versus - 3.20% for the Lipper Index for the same
time period. The Fund also outperformed the CSFB/DLJ High-Yield Bond Index
during that period. That index compiled a total return of - 0.99% for the
fiscal year period.
The high-yield bond market has been under heavy downward pressure for much of
the year 2000 and so our emphasis on higher quality, more defensive credits
enabled us to outperform the overall market. The pressure stems from widespread
concern over whether the economy will go into recession or just enter a slower
growth mode in 2001 and what that means for earnings and cash flow generation,
credit availability, and bond default and recovery rates. This has led to a
flight out of risk-assets (like equities and high yield bonds) and into U.S.
Treasuries in recent months. Given the sea-change in the economic and financial
environments in the past 6 months, investors' concerns are certainly
understandable. Investors are worried that they don't know where the market
'bottom' is at this point. We expect that over the next several months that
question will be answered. However, for the time being we will continue our
relatively defensive posture in the Fund. The portfolio is market-weighted by
sector with an emphasis on larger issuers and more liquid bonds.
The Officers and Trustees wish you a happy and prosperous New Year.
Sincerely,
[SIGNATURE]
G. Moffett Cochran
President December, 2000
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ CORE EQUITY FUND
PORTFOLIO CHANGES For the Year Ended October 31, 2000
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
American Home Products Corp.(1) Amgen, Inc.
Chevron Corp.(1) Ciena Corp.
Citigroup, Inc.(1) Coca Cola Company(2)
Computer Associates International, Inc. Freddie Mac(2)
EMC Corp.(1) MediaOne Group, Inc.(2)
Fleet Boston Corp.(1) Oracle Corp.
Johnson & Johnson(1) Pharmacia & Upjohn, Inc.(2)
Merck & Co., Inc. Phillips Petroleum Co.(2)
Qwest Communications International, Inc.(1) Sprint Corp. (PCS Group)
Sun Microsystems, Inc.(1) U.S. Bancorp.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
General Electric Co......................................... $10,249,937 4.3%
Merck & Co., Inc............................................ 7,590,725 3.2
Cisco Systems, Inc.......................................... 7,574,825 3.2
EMC Corp.................................................... 7,356,563 3.1
Microsoft Corp.............................................. 7,080,350 3.0
Exxon Mobil Corp............................................ 6,118,262 2.6
Intel Corp.................................................. 5,985,000 2.5
Ciena Corp.................................................. 5,151,125 2.1
American Express Co......................................... 4,828,860 2.0
Lehman Brothers Holdings, Inc............................... 4,811,700 2.0
----------- ----
$66,747,347 28.0%
----------- ----
----------- ----
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ Core Equity Fund
Class A
<TABLE>
<CAPTION>
Without Load With Load S&P 500
------------ --------- -------
<S> <C> <C> <C>
10/90 $10,000 $ 9,425 $10,000
10/91 12,970 12,225 13,352
10/92 13,575 12,795 14,680
10/93 15,524 14,632 16,873
10/94 16,169 15,239 17,524
10/95 18,143 17,099 22,155
10/96 21,829 20,574 27,496
10/97 27,610 26,022 36,327
10/98 33,408 31,487 44,318
10/99 43,688 41,176 55,690
10/00 49,974 47,101 59,082
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS 10 YEARS
------- -------- ---------
<S> <C> <C> <C>
DLJ CORE EQUITY FUND
Class A
With Load.......................... 7.80% 21.03% 16.76%
Without Load....................... 14.39% 22.46% 17.46%
Class B
With Load.......................... 9.58% N/A N/A
Without Load....................... 13.58% N/A N/A
Class D.............................. 14.69% N/A N/A
S&P 500.............................. 6.09% 21.67% 19.44%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION AVG. ANNUAL AGGREGATE
DATE TOTAL RETURN TOTAL RETURN S&P 500
--------- ------------ ------------ -------
<S> <C> <C> <C> <C>
Class B
With Load............ 02/28/96 20.25% N/A 20.43%
Without Load......... 02/28/96 20.25% N/A 20.43%
Class C
With Load............ 02/28/00 N/A 7.90% 5.38%
Without Load......... 02/28/00 N/A 8.90% 5.38%
Class D................ 05/13/99 13.01% N/A 4.31%
Class R................ 08/01/00 N/A 0.00% 0.18%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been
<PAGE>
made for any income taxes payable by shareholders on dividends or capital
gains, but the returns calculated above have been computed after deduction
of all fund expenses including advisory fees. Class A returns shown above
are computed with and without the imposition of the maximum 5.75% front-end
sales load. Effective February 28, 1996, the Fund began offering Class B
shares which, instead of a front-end sales load, are subject to a contingent
deferred sales charge (CDSC) ranging from 4% during the first year to 0%
after 4 years. The Fund also commenced offering Class C shares on
February 28, 2000, subject to a 1.00% CDSC during the first year, and
Class R shares on August 1, 2000. Class R shares are offered to eligible
institutions who purchase shares on behalf of their clients. Class D shares
are currently offered only to employees of Credit Suisse and its
subsidiaries who are eligible to participate in the Credit Suisse First
Boston Employees' Savings and Profit Sharing Plan. Class D and Class R
shares are not subject to any sales charges. The performance data for
Class A, B and C shares are referenced in the table above with and without
the imposition of their applicable sales charge.
The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged
index of overall stock market performance, which does not take into account
charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ GROWTH AND INCOME FUND
PORTFOLIO CHANGES For the Year Ended October 31, 2000
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Bell Atlantic Corp.(1) Abbot Laboratories Co.(2)
Burlington Resources, Inc.(1) BP Amoco PLC
Costco Wholesale Corp.(1) Cisco Systems, Inc.(2)
Emerson Electric Co.(1) Freddie Mac
General Mills, Inc.(1) Intel Corp.(2)
Minnesota Mining & Manufacturing Co.(1) NTL, Inc.(2)
Rohm & Haas Co.(1) Oracle Corp.(2)
Safeway, Inc.(1) Republic NY Corp.(2)
Unisys Corp. Texas Instruments, Inc.(2)
Viacom Inc.(1) Walgreen Co.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
Merck & Co., Inc............................................ $ 9,587,338 3.8%
American International Group, Inc........................... 9,354,296 3.7
United Technologies Corp.................................... 8,475,238 3.4
Tyco International Ltd...................................... 8,446,438 3.4
Automatic Data Processing, Inc.............................. 7,589,312 3.0
Enron Corp.................................................. 7,484,100 3.0
Cardinal Health, Inc........................................ 7,106,250 2.8
SYSCO Corp.................................................. 6,993,125 2.8
General Dynamics Corp....................................... 6,562,281 2.6
Avon Products, Inc.......................................... 6,523,250 2.6
----------- ----
$78,121,628 31.1%
----------- ----
----------- ----
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ Growth and Income Fund
Class A
<TABLE>
<CAPTION>
S&P 500 Without Load With Load
------- ------------ ---------
<S> <C> <C> <C>
10/90 $10,000 $10,000 $ 9,425
10/91 13,352 12,685 11,955
10/92 14,680 13,591 12,809
10/93 16,873 15,892 14,978
10/94 17,524 16,621 15,665
10/95 22,155 19,297 18,188
10/96 27,496 23,657 22,297
10/97 36,327 30,880 29,104
10/98 44,318 36,790 34,675
10/99 55,690 42,079 39,659
10/00 59,082 45,629 43,005
</TABLE>
Comparison of Change in Value
of $10,000 Investment
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS 10 YEARS
------- -------- ---------
<S> <C> <C> <C>
DLJ GROWTH AND INCOME FUND
Class A
With Load.......................... 2.22% 17.38% 15.71%
Without Load....................... 8.44% 18.78% 16.39%
Class B
With Load.......................... 3.66% N/A N/A
Without Load....................... 7.66% N/A N/A
Class D.............................. 8.75% N/A N/A
S&P 500.............................. 6.09% 21.67% 19.44%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION AVG. ANNUAL AGGREGATE
DATE TOTAL RETURN TOTAL RETURN S&P 500
--------- ------------ ------------ -------
<S> <C> <C> <C> <C>
Class B
With Load............ 02/28/96 16.23% N/A 20.43%
Without Load......... 02/28/96 16.23% N/A 20.43%
Class C
With Load............ 02/28/00 N/A 16.02% 5.38%
Without Load......... 02/28/00 N/A 17.02% 5.38%
Class D................ 04/30/99 5.25% N/A 5.88%
Class R................ 08/01/00 N/A 9.96% 0.18%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Class A returns shown above are computed with and
without the imposition of the maximum 5.75% front-end sales load. Effective
February 28, 1996, the Fund began offering Class B shares which, instead of
a front-end sales load, are subject to a contingent deferred sales charge
(CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund
also commenced offering Class C shares on February 28, 2000, subject to a
1.00% CDSC during the first year, and Class R shares on August 1, 2000.
Class R shares are offered to eligible institutions who purchase shares on
behalf of their clients. Class D shares are currently offered only to
employees of Credit Suisse and its subsidiaries who are eligible to
participate in the Credit Suisse First Boston Employees' Savings and Profit
Sharing Plan. Class D and Class R shares are not subject to any sales
charges. The performance data for Class A, B and C shares are referenced in
the table above with and without the imposition of their applicable sales
charge.
The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged
index of overall stock market performance, which does not take into account
charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ SMALL COMPANY VALUE FUND
PORTFOLIO CHANGES For the Year Ended October 31, 2000
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
BISYS Group, Inc.(1) Applied Power, Inc.(2)
CCB Financial Corp. Dallas Semiconductor Corp.
CFW Communications Co.(1) DII Group, Inc.(2)
Equitable Resources, Inc.(1) Electro Scientific Industries, Inc.
Mercury Computer Systems, Inc.(1) Helmerich & Payne, Inc.(2)
Modine Manufacturing Co. IGATE Capital Corp.
Oceaneering International, Inc.(1) Methode Electronics, Inc.
Performance Food Group, Inc.(1) Pericom Semiconductor, Inc.
Pharmaceutical Product Development, Inc.(1) Technitrol, Inc.
Rogers Corp.(1) WICOR, Inc.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
Performance Food Group, Inc................................. $ 5,143,500 2.5%
Brown & Brown, Inc.......................................... 4,998,500 2.4
BISYS Group, Inc............................................ 4,995,250 2.4
Equitable Resources, Inc.................................... 4,872,000 2.4
Pharmaceutical Product Development, Inc..................... 4,853,438 2.4
National Fuel Gas Co........................................ 4,804,800 2.3
Invacare Corp............................................... 4,750,950 2.3
Arrow International, Inc.................................... 4,676,250 2.3
Banta Corp.................................................. 4,618,266 2.2
Carlisle Companies, Inc..................................... 4,503,825 2.2
----------- ----
$48,216,779 23.4%
----------- ----
----------- ----
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ SMALL COMPANY VALUE FUND
Class A
<TABLE>
<CAPTION>
RUSSELL
WITHOUT LOAD WITH LOAD 2000
------------ --------- -------
<S> <C> <C> <C>
10/90 10,000 9,425 10,000
10/91 15,156 14,285 15,858
10/92 18,287 17,235 17,364
10/93 22,920 21,602 22,989
10/94 23,991 22,612 22,917
10/95 26,655 25,122 27,119
10/96 30,334 28,590 31,625
10/97 40,187 37,876 40,900
10/98 35,686 33,634 36,057
10/99 37,636 35,472 41,418
10/00 45,799 43,165 48,629
</TABLE>
Comparison of Change in Value
of $10,000 Investment
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS 10 YEARS
------- -------- ---------
<S> <C> <C> <C>
DLJ SMALL COMPANY VALUE FUND
Class A
With Load.......................... 14.70% 10.13% 15.75%
Without Load....................... 21.69% 11.43% 16.44%
Class B
With Load.......................... 16.80% N/A N/A
Without Load....................... 20.80% N/A N/A
RUSSELL 2000......................... 17.41% 12.39% 17.14%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION AVG. ANNUAL AGGREGATE RUSSELL
DATE TOTAL RETURN TOTAL RETURN 2000
--------- ------------ ------------ -------
<S> <C> <C> <C> <C>
Class B
With Load............. 02/28/96 9.72% N/A 10.96%
Without Load.......... 02/28/96 9.72% N/A 10.96%
Class C
With Load............. 02/28/00 N/A 21.16% -13.19%
Without Load.......... 02/28/00 N/A 22.16% -13.19%
Class R................. 08/01/00 N/A 5.95% -0.20%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Class A returns shown above are computed with and
without the imposition of the maximum 5.75% front-end sales load. Effective
February 28, 1996, the Fund began offering Class B shares which, instead of
a front-end sales load, are subject to a contingent deferred sales charge
(CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund
also commenced offering Class C shares on February 28, 2000, subject to a
1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class
R shares are offered to eligible institutions who purchase shares on behalf
of their clients. Class R shares are not subject to any sales charges. The
performance data for Class A, B and C shares are referenced in the table
above with and without the imposition of their applicable sales charge.
The Russell 2000 Index is an unmanaged index and is composed of the 2,000
smallest companies in the Russell 3000 Index. The Russell 3000 Index is
composed of 3,000 of the largest U.S. companies by market capitalization.
The Index does not take into account charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ TECHNOLOGY FUND
PORTFOLIO ALLOCATION October 31, 2000*
[CHART]
<TABLE>
<S> <C>
Business & I.T. Services 1.2%
Internet Business to B&C 2.1%
Software Products 19.4%
Telecommunications Equipment 10.1%
Electronic Manufacturing Services 8.5%
Computer Systems Manufacturers 8.5%
Communications Services 7.9%
Semicondutor Manufacturers-Large 7.3%
Internet Business-to-Business 6.8%
Storage Networks & Systems 5.8%
Semiconductor Capital Equipment 5.1%
Semiconductor Manufacturers-Fabless 4.5%
Personal Computer Manufacturers 3.6%
Computer Networking 3.4%
Internet Business-to-Consumer 3.3%
Cash & Other Assets/Liabilities 2.5%
</TABLE>
*Technology Industries defined by Chase Hambrecht & Quist.
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- ----------
<S> <C> <C>
Network Appliance, Inc...................................... $ 1,645,175 4.5%
Sun Microsystems, Inc....................................... 1,485,725 4.0
CIENA Corp.................................................. 1,329,831 3.6
Veritas Software Corp....................................... 1,329,072 3.6
EMC Corp.................................................... 1,242,422 3.4
Cognos, Inc................................................. 1,232,550 3.4
Sanmina Corp................................................ 1,140,267 3.1
Oracle Corp................................................. 1,072,500 2.9
Siebel Systems, Inc......................................... 1,015,270 2.8
Palm, Inc................................................... 995,406 2.7
----------- ----
$12,488,218 34.0%
----------- ----
----------- ----
</TABLE>
INVESTMENT RESULTS For the Period Ended October 31, 2000
<TABLE>
<CAPTION>
HAMBRECHT &
INCEPTION AGGREGATE QUIST
DATE TOTAL RETURN NASDAQ TECHNOLOGY INDEX
--------- ------------ ------- ----------------
<S> <C> <C> <C> <C>
DLJ TECHNOLOGY FUND
Class A
With Load....................... 08/01/00 -9.36% -10.52% -4.67%
Without Load.................... 08/01/00 -3.83% -10.52% -4.67%
Class B
With Load....................... 08/01/00 -7.83% -10.52% -4.67%
Without Load.................... 08/01/00 -3.98% -10.52% -4.67%
Class C
With Load....................... 08/01/00 -4.95% -10.52% -4.67%
Without Load.................... 08/01/00 -3.98% -10.52% -4.67%
Class D............................ 09/01/00 -19.00% -19.87% -18.95%
Class R............................ 11/18/99 27.90% 0.83% 11.81%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. The Fund
commenced offering Class A, B and C shares on August 1, 2000. Class A
returns shown above are computed with and without the imposition of the
maximum 5.75% front-end sales load. Class B shares which, instead of a
front-end sales load, are subject to a contingent deferred sales charge
(CDSC) ranging from 4% during the first year to 0% after 4 years. Class C
shares are subject to a 1.00% CDSC during the first year. Class D shares are
currently offered only to employees of Credit Suisse and its subsidiaries
who are eligible to participate in the Credit Suisse First Boston Employees'
Savings and Profit Sharing Plan. Class D and Class R shares are not subject
to any sales charges. The Fund commenced offering Class R shares on
November 18, 1999 to eligible institutions who purchase shares on behalf of
their clients. The performance data for Class A, B and C shares are
referenced in the table above with and without the imposition of their
applicable sales charge.
NASDAQ is a widely accepted value-weighted index of stock market
performance, which does not take into account charges, fees and other
expenses. The Hambracht & Quist Technology Index is comprised of the
publicly traded stocks of 250 technology companies. It is
market-capitalization weighted and is representative of the overall
industry at any point in time.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ STRATEGIC GROWTH FUND
PORTFOLIO ALLOCATION October 31, 2000*
[CHART]
<TABLE>
<S> <C>
Information Services 2.2%
Cash & Other Assets/Liabilities 1.7%
Technology 49.5%
Consumer Staples 25.7%
Consumer Cyclical 9.1%
Capital Goods 8.1%
Financial 3.7%
</TABLE>
*Industry sectors defined by Barra, Inc.
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
---------- ----------
<S> <C> <C>
General Electric Co......................................... $ 416,575 4.7%
Merck & Co., Inc............................................ 332,769 3.8
Microsoft Corp.............................................. 321,991 3.7
Cisco Systems, Inc.......................................... 320,556 3.7
EMC Corp.................................................... 307,266 3.5
Sun Microsystems, Inc....................................... 282,731 3.2
Intel Corp.................................................. 270,000 3.1
Oracle Corp................................................. 247,500 2.8
Veritas Software Corp....................................... 243,252 2.8
Johnson & Johnson........................................... 221,100 2.5
---------- ----
$2,963,740 33.8%
---------- ----
---------- ----
</TABLE>
INVESTMENT RESULTS For the Period Ended October 31, 2000
<TABLE>
<CAPTION>
INCEPTION AGGREGATE S&P 500/BARRA
DATE TOTAL RETURN GROWTH INDEX
--------- ------------ -------------
<S> <C> <C> <C>
DLJ STRATEGIC GROWTH FUND
Class A
With Load.................................... 08/01/00 -6.94% -7.01%
Without Load................................. 08/01/00 -1.26% -7.01%
Class B
With Load.................................... 08/01/00 -5.21% -7.01%
Without Load................................. 08/01/00 -1.26% -7.01%
Class C
With Load.................................... 08/01/00 -2.25% -7.01%
Without Load................................. 08/01/00 -1.26% -7.01%
Class R......................................... 11/18/99 9.40% -3.01%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. The Fund
commended offering Class A, B and C shares on August 1, 2000. Class A
returns shown above are computed with and without the imposition of the
maximum 5.75% front-end sales load. Class B shares which, instead of a
front-end sales load, are subject to a contingent deferred sales charge
(CDSC) ranging from 4% during the first year to 0% after 4 years. Class C
shares are subject to a 1.00% CDSC during the first year. The Fund commenced
offering Class R shares on November 18, 1999 to eligible institutions who
purchase shares on behalf of their clients. Class R shares are not subject
to any sales charges. The performance data for Class A, B and C shares are
referenced in the table above with and without the imposition of their
applicable shares charge.
The S&P500/Barra Growth Index is a widely accepted, unmanaged index that is
a subset of the S&P 500 Composite Stock Price Index. It includes companies
with higher than average price to book ratios and does not take into account
charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ INTERNATIONAL EQUITY FUND
ASSET ALLOCATION BY COUNTRY October 31, 2000
TEN LARGEST HOLDINGS October 31, 2000
[CHART]
<TABLE>
<S> <C>
Denmark 0.3%
Ireland 0.4%
Singapore 0.5%
Australia 0.7%
Portugal 0.8%
Belgium 1.8%
Finland 2.0%
Sweden 2.0%
Spain 2.7%
Netherlands 4.5%
Germany 4.9%
Cash & Other Assets/Liabilities 5.9%
Switzerland 6.2%
Italy 7.0%
Hong Kong 7.1%
France 13.5%
Japan 18.2%
United Kingdom 21.5%
</TABLE>
<TABLE>
<CAPTION>
PERCENT
COUNTRY US $ VALUE OF FUND
-------------- ----------- -------
<S> <C> <C> <C>
Vodafone Group Plc.............................. United Kingdom $ 1,851,499 2.9%
San Paolo -- IMI SPA............................ Italy 1,624,630 2.6
Total Fina SA................................... France 1,485,072 2.3
Shell Transport & Trading Co. Plc............... United Kingdom 1,409,491 2.2
Oy Nokia (Ab) Ser `A'........................... Finland 1,249,444 2.0
ING Groep NV.................................... Netherlands 1,112,357 1.8
China Telecom (Hong Kong) Ltd................... Hong Kong 1,108,205 1.8
Takeda Chemical Industries Ltd.................. Japan 1,053,576 1.7
Royal Bank of Scotland Group Plc................ United Kingdom 1,016,505 1.6
Nestle SA....................................... Switzerland 959,165 1.5
----------- ----
$12,869,944 20.4%
----------- ----
----------- ----
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ International Equity Fund
Class A
<TABLE>
<CAPTION>
Without Load With Load EAFE
------------ --------- ----
<S> <C> <C> <C>
9/95 10,000 9,425 10,000
10/95 9,580 9,029 9,852
10/96 10,380 9,783 10,916
10/97 11,420 10,763 11,454
10/98 12,357 11,646 12,594
10/99 15,045 14,180 15,537
10/00 14,764 13,915 15,124
</TABLE>
Comparison of Change in Value
of $10,000 Investment
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
-------------------------------
1 YEAR 5 YEARS
-------------- --------------
<S> <C> <C>
DLJ INTERNATIONAL
EQUITY FUND
Class A
With Load......... -7.49% 7.76%
Without Load...... -1.87% 9.03%
Class B
With Load......... -6.24% 8.18%
Without Load...... -2.84% 8.18%
Class D............. -1.70% N/A
MSCI EAFE INDEX..... -2.66% 8.95%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION AVG. ANNUAL AGGREGATE MSCI EAFE
DATE TOTAL RETURN TOTAL RETURN INDEX
--------- ------------ ------------ ---------
<S> <C> <C> <C> <C>
Class A
With Load................ 09/08/95 6.65% N/A 8.42%
Without Load............. 09/08/95 7.89% N/A 8.42%
Class B
With Load................ 09/08/95 7.04% N/A 8.42%
Without Load............. 09/08/95 7.04% N/A 8.42%
Class C
With Load................ 02/28/00 N/A -14.05% -10.31%
Without Load............. 02/28/00 N/A -13.18% -10.31%
Class D.................... 05/13/99 5.80% N/A 5.73%
Class R.................... 08/01/00 N/A -7.66% -6.25%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. Class A returns
shown above are computed with and without the imposition of the maximum 5.75%
front-end sales load. Class B shares which, instead of a front-end sales load,
are subject to a contingent deferred sales charge (CDSC) ranging from 4%
during the first year to 0% after 4 years. The Fund commenced offering Class C
shares on February 28, 2000, subject to a 1.00% CDSC during the first year,
and Class R shares on August 1, 2000. Class R shares are offered to eligible
institutions who purchase shares on behalf of their clients. Class D shares
are currently offered only to employees of Credit Suisse and its subsidiaries
who are eligible to participate in the Credit Suisse First Boston Employees'
Savings and Profit Sharing Plan. Class D and Class R shares are not subject
to any sales charges. The performance data for Class A, B and C shares are
referenced in the table above with and without the imposition of their
applicable sales charge.
The MSCI EAFE Index is an unmanaged index composed of a sample of companies
representative of the market structure of European and Pacific Basin
countries. The index is the property of Morgan Stanley & Co. Incorporated.
The index does not take into account charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, if applicable, is contained in the Financial Highlights
section of the Prospectus and elsewhere in this report.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ DEVELOPING MARKETS FUND
ASSET ALLOCATION BY COUNTRY October 31, 2000
[CHART]
<TABLE>
<S> <C>
Argentina 0.7%
Philippines 0.7%
Czech Republic 0.6%
Venezuela 0.4%
Morocco 0.3%
Cash & Other Assets/Liabilities (0.2)%
Brazil 13.3%
Taiwan 12.2%
South Korea 11.3%
Mexico 11.3%
China 8.7%
South Africa 5.6%
Malaysia 5.5%
India 4.8%
Israel 4.7%
Turkey 4.0%
Greece 4.0%
Russia 3.1%
Chile 2.4%
Hungary 1.9%
Thailand 1.8%
United Kingdom 1.6%
Poland 1.3%
</TABLE>
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US $ VALUE FUND
----------- ----------- ----------
<S> <C> <C> <C>
Taiwan Semiconductor Manufacturing Co. Ltd........ Taiwan $ 635,250 4.1%
China Telecom (Hong Kong) Ltd..................... China 599,204 3.9
Samsung Electronics GDR........................... South Korea 590,000 3.8
Petroleo Brasileiro SA Prf........................ Brazil 450,810 2.9
Check Point Software Technologies Ltd............. Israel 413,359 2.7
Cifra SA de CV Ser.`V'............................ Mexico 390,168 2.5
United Microelectronics Corp...................... Taiwan 366,367 2.4
Korea Electrical Power ADR........................ South Korea 365,625 2.3
Fomento Economico Mexicano SA de CV............... Mexico 362,311 2.3
Compania Vale do Rio Doce SA Prf.................. Brazil 345,821 2.2
---------- ----
$4,518,915 29.1%
---------- ----
---------- ----
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ Developing Markets Fund
Class A
<TABLE>
<CAPTION>
Without Load EAFE With Load
------------ --------- ---------
<S> <C> <C> <C>
9/95 $10,000 $9,425 $10,000
10/95 9,530 8,982 9,462
10/96 9,960 9,387 10,075
10/97 9,544 8,995 9,220
10/98 7,158 6,746 6,363
10/99 10,006 9,433 9,203
10/00 8,638 8,144 8,392
</TABLE>
Comparison of Change in Value
of $10,000 Investment
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS
-------------- -------------
<S> <C> <C>
DLJ DEVELOPING MARKETS FUND
Class A
With Load................................................. -18.66% -3.09%
Without Load.............................................. -13.67% -1.94%
Class B
With Load................................................. -17.71% -2.70%
Without Load.............................................. -14.29% -2.70%
MSCI EMERGING MARKETS FREE INDEX............................ -8.81% -2.37%
</TABLE>
<TABLE>
<CAPTION>
INCEPTION AVG. ANNUAL AGGREGATE MSCI EMERGING
DATE TOTAL RETURN TOTAL RETURN MARKETS FREE INDEX
--------- ------------ ------------ ------------------
<S> <C> <C> <C> <C>
Class A
With Load............... 09/08/95 -3.92% N/A -3.34%
Without Load............ 09/08/95 -2.81% N/A -3.34%
Class B
With Load............... 09/08/95 -3.56% N/A -3.34%
Without Load............ 09/08/95 -3.56% N/A -3.34%
Class C
With Load............... 02/28/00 N/A -33.79% -27.16%
Without Load............ 02/28/00 N/A -33.12% -27.16%
Class R................... 08/01/00 N/A -18.50% -14.93%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. Class A returns
shown above are computed with and without the imposition of the maximum
5.75% front-end sales load. Class B shares which, instead of a front-end
sales load, are subject to a contingent deferred sales charge (CDSC) ranging
from 4% during the first year to 0% after 4 years. The Fund commenced
offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during
the first year, and Class R shares on August 1, 2000. Class R shares are
offered to eligible institutions who purchase shares on behalf of their
clients. Class R shares are not subject to any sales charge. The performance
data for Class A, B and C shares are referenced in the table above with and
without the imposition of their applicable sales charge.
The MSCI Emerging Markets Free Index is an unmanaged index composed of a
sample of companies representative of the market structure of developing
countries worldwide. The index is the property of Morgan Stanley & Co.
Incorporated. The index does not take into account charges, fees and other
expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ FIXED INCOME FUND
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT PERCENT
VALUE OF FUND VALUE OF FUND
---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C>
U.S. Treasury Notes MBNA Master Credit Card Trust
7.000%, 07/15/06............. $7,486,737 5.6% 6.450%, 02/15/08.............. $4,938,250 3.7%
Federal Home Loan Bank MCI Communications Corp.
7.360%, 07/01/04............. 6,166,020 4.6 6.125%, 04/15/02.............. 4,937,500 3.7
U.S. Treasury Bond Ford Motor Credit Corp.
7.500%, 11/15/16............. 6,048,420 4.5 7.375%, 10/28/09.............. 4,887,500 3.7
U.S. Treasury Note U.S. Treasury Bill
6.125%, 12/31/01............. 5,343,901 4.0 6.375%, 03/31/01.............. 4,650,651 3.5
U.S. Treasury Note AT&T Corp.
6.250%, 08/31/02............. 5,023,650 3.8 6.000%, 03/15/09.............. 4,393,750 3.3
</TABLE>
PORTFOLIO CHARACTERISTICS October 31, 2000
<TABLE>
<S> <C> <C> <C>
30 DAY YIELD, CLASS A: 5.49% AVERAGE RATING: AA*
30 DAY YIELD, CLASS B: 5.01% AVERAGE YEARS TO MATURITY: 6.9 years*
30 DAY YIELD, CLASS C: 4.86% AVERAGE COUPON: 6.35%'D'*
30 DAY YIELD, CLASS D: 6.02% AVERAGE DURATION: 3.4 years*
30 DAY YIELD, CLASS R: 5.77%
* Weighted Averages
'D' Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ Fixed Income Fund
Class A
<TABLE>
<CAPTION>
Lehman Brothers
Without Load With Load Gov't Corp.
<S> <C> <C> <C>
10/90 10,000 9,425 10,000
10/91 11,392 10,851 11,379
10/92 12,574 11,977 12,517
10/93 14,056 13,388 13,760
10/94 13,440 12,802 13,495
10/95 15,084 14,368 15,185
10/96 15,739 14,991 16,069
10/97 16,816 16,017 17,272
10/98 18,238 17,372 18,844
10/99 18,190 17,376 19,030
10/00 19,157 18,247 20,259
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS 10 YEARS
------- -------- ---------
<S> <C> <C> <C>
DLJ FIXED INCOME FUND
Class A
With Load................................................. 0.31% 3.88% 6.20%
Without Load.............................................. 5.31% 4.90% 6.72%
Class B
With Load................................................. 0.57% N/A N/A
Without Load.............................................. 4.57% N/A N/A
Class D..................................................... 5.62% N/A N/A
LEHMAN BROS. GOV'T. CORPORATE INTERMEDIATE BOND INDEX....... 6.46% 5.94% 7.32%
</TABLE>
<TABLE>
<CAPTION>
LEHMAN BROS.
GOV'T. CORP.
INCEPTION AVG. ANNUAL AGGREGATE INTERMEDIATE
DATE TOTAL RETURN TOTAL RETURN BOND INDEX
--------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class B
With Load............................... 02/28/96 4.15% N/A 5.90%
Without Load............................ 02/28/96 4.15% N/A 5.90%
Class C
With Load............................... 02/28/00 N/A 2.86% 6.19%
Without Load............................ 02/28/00 N/A 3.86% 6.19%
Class D................................... 04/30/99 3.72% N/A 4.57%
Class R................................... 08/01/00 N/A 2.44% 2.57%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. Class A returns
shown above are computed with and without the imposition of the maximum 4.75%
front-end sales load. Effective February 28, 1996, the Fund began offering
Class B shares which, instead of a front-end sales load, are subject to a
contingent deferred sales charge (CDSC) ranging from 4% during the first
year to 0% after 4 years. The Fund also commenced offering Class C shares
on February 28, 2000, subject to a 1.00% CDSC during the first year, and
Class R shares on August 1, 2000. Class R shares are offered to eligible
institutions who purchase shares on behalf of their clients. Class D shares
are currently offered only to employees of Credit Suisse and its subsidiaries
who are eligible to participate in the Credit Suisse Employees' Savings and
Profit Sharing Plan. Class D and Class R shares are not subject to any sales
charges. The performance data for Class A, B and C shares are referenced in
the table above with and without the imposition of their applicable sales
charge.
The Lehman Brothers Government/Corporate Intermediate Bond Index is
comprised of securities in the Lehman Brothers Government/Corporate Bond
Index that have maturities of 5-10 years. The Lehman Brothers
Government/Corporate Bond Index includes the Lehman Brothers Government Bond
Index and the Lehman Brothers Corporate Bond Index, which do not take into
account charges, fees and other expenses.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ MUNICIPAL TRUST FUND
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Plano, Texas Independent
School District
6.000%, 02/15/05............ $2,107,500 8.9%
Houston, Texas Revenue
5.000%, 03/01/05............ 2,032,500 8.6
Grand River Dam Authority,
Oklahoma
6.250%, 06/01/11............ 1,678,125 7.1
Denver, Colorado City &
County Airport
6.750%, 11/15/22............ 1,629,375 6.9
Port Authority of Houston,
Texas
5.375%, 10/01/05............ 1,321,219 5.6
</TABLE>
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Chicago, Illinois
Metropolitan Water
Reclamation District
7.000%, 01/01/11........... $1,157,500 4.9%
Texas State Refunding
Ser. A
6.000%, 10/01/08........... 1,086,250 4.6
New York State Dormitory
Authority Revenue
6.500%, 05/15/06........... 1,086,250 4.6
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05........... 1,082,500 4.6
New York City, NY Ser. G
5.750%, 02/01/08........... 1,056,250 4.5
</TABLE>
PORTFOLIO CHARACTERISTICS October 31, 2000
<TABLE>
<S> <C> <C> <C>
30 DAY YIELD, CLASS A: 3.66% AVERAGE RATING: AA*
30 DAY YIELD, CLASS B: 3.11% AVERAGE YEARS TO MATURITY: 5.2 years*
30 DAY YIELD, CLASS C: 2.61% AVERAGE COUPON: 5.75%*
30 DAY YIELD, CLASS R: 3.89% AVERAGE DURATION: 4.3 years*
* Weighted Averages
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ Municipal Trust Fund
Class A
<TABLE>
<CAPTION>
Without Load With Load Lipper
------------ --------- ------
<S> <C> <C> <C>
07/93 10,000 9,525 10,000
10/93 10,183 9,699 10,309
10/94 9,952 9,479 10,060
10/95 10,953 10,433 11,160
10/96 11,373 10,832 11,639
10/97 12,211 11,631 12,403
10/98 12,982 12,365 13,248
10/99 12,849 12,239 13,127
10/00 13,517 12,875 13,972
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
------------------------------
1 YEAR 5 YEARS
-------------- -------------
<S> <C> <C>
DLJ MUNICIPAL TRUST FUND
Class A
With Load................................................. 0.21% 3.28%
Without Load.............................................. 5.20% 4.29%
Class B
With Load................................................. 0.45% N/A
Without Load.............................................. 4.45% N/A
LIPPER INTERMEDIATE MUNICIPAL FUND INDEX.................... 6.44% 4.64%
</TABLE>
<TABLE>
<CAPTION>
LIPPER
INTERMEDIATE
INCEPTION AVG. ANNUAL AGGREGATE MUNICIPAL
DATE TOTAL RETURN TOTAL RETURN FUND INDEX
--------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Class A
With Load.................. 07/28/93 3.54% N/A 4.71%
Without Load............... 07/28/93 4.24% N/A 4.71%
Class B
With Load.................. 02/28/96 3.45% N/A 4.39%
Without Load............... 02/28/96 3.45% N/A 4.39%
Class C
With Load.................. 02/28/00 N/A 2.65% 5.68%
Without Load............... 02/28/00 N/A 3.65% 5.68%
Class R...................... 08/01/00 N/A 1.46% 1.78%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. Class A returns
shown above are computed with and without the imposition of the maximum
4.75% front-end sales load. Effective February 28, 1996, the Fund began
offering Class B shares, which, instead of a front-end sales load, are
subject to a contingent deferred sales charge (CDSC) ranging from 4% during
the first year to 0% after 4 years. The Fund also commenced offering
Class C shares on February 28, 2000, subject to a 1.00% CDSC during the
first year, and Class R shares on August 1, 2000. Class R shares are offered
to eligible institutions who purchase shares on behalf of their clients.
Class R shares are not subject to any sales charges. The performance data
for Class A, B and C shares are referenced in the table above with and
without the imposition of their applicable sales charge.
The Lipper Intermediate Municipal Fund Index is an equally weighted
performance index of the 30 largest funds in the Lipper grouping of
intermediate municipal debt funds, adjusted for capital gains and income
dividends.
Further information relating to Fund performance, including expense
reimbursements, is contained in the Financial Highlights section of the
Prospectus and elsewhere in this report.
<PAGE>
FUND HIGHLIGHTS (unaudited)
DLJ HIGH INCOME FUND
TEN LARGEST HOLDINGS October 31, 2000
<TABLE>
Esat Telecom Group PLC Ser. B
11.875%, 12/01/08........... $296,250 2.2%
Triarc Consumer Group, Inc.
10.250%, 02/15/09........... 281,250 2.1
R&B Falcon Corp.
9.500%, 12/15/08............ 268,125 2.0
Dobson/Sygnet
Communications, Inc.
13.000%, 05/01/09........... 265,875 1.9
King Pharmaceutical, Inc.
10.750%, 02/15/09........... 265,000 1.9
<CAPTION>
PERCENT PERCENT
VALUE OF FUND VALUE OF FUND
-------- ------- -------- -------
<S> <C> <C>
Argosy Gaming Co.
10.750%, 06/01/09........... $262,500 1.9 %
Packaging Corp. of America
9.625%, 04/01/09............ 256,250 1.9
Express Scripts, Inc.
9.625%, 06/15/09............ 253,125 1.8
Station Casinos, Inc.
10.125%, 03/15/06........... 252,500 1.8
Canadaigua Brands, Inc.
8.500%, 03/01/09............ 252,200 1.8
</TABLE>
PORTFOLIO AND FUND INFORMATION October 31, 2000
<TABLE>
<S> <C> <C> <C>
30 Day Yield, Class A: 11.12% Average Rating: B*
30 Day Yield, Class B: 10.87% Average Years to Maturity: 6.4 years*
30 Day Yield, Class C: 10.87% Average Coupon: 8.70%'D'*
30 Day Yield, Class D: 11.94%
30 Day Yield, Class R: 11.68%
* Weighted Average
'D' Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS For the Periods Ended October 31, 2000
[CHART]
DLJ High Income Fund
Class A
<TABLE>
<CAPTION>
WITHOUT LOAD WITH LOAD LIPPER
------------ --------- ------
<S> <C> <C> <C>
3/99 10,000 9,525 10,000
10/99 10,219 9,734 10,011
10/00 10,213 9,728 9,806
</TABLE>
Comparison of Change in Value
of $10,000 Investment
<TABLE>
<CAPTION>
AVG. ANNUAL
TOTAL RETURN
1 YEAR
------------
<S> <C>
DLJ HIGH INCOME FUND
Class A
With Load................................................. -4.79%
Without Load.............................................. -0.06%
Class B
With Load................................................. -4.42%
Without Load.............................................. -0.81%
Class D..................................................... 0.29%
LIPPER HIGH YIELD BOND FUND INDEX........................... -3.20%
</TABLE>
<TABLE>
<CAPTION>
LIPPER
INCEPTION AVG. ANNUAL AGGREGATE HIGH YIELD
DATE TOTAL RETURN TOTAL RETURN BOND FUND INDEX
--------- ------------ ------------ ---------------
<S> <C> <C> <C> <C>
Class A
With Load................ 03/08/99 -1.67% N/A -1.91%
Without Load............. 03/08/99 1.29% N/A -1.91%
Class B
With Load................ 03/08/99 -1.84% N/A -1.91%
Without Load............. 03/08/99 0.48% N/A -1.91%
Class C
With Load................ 02/28/00 N/A -4.28% -6.20%
Without Load............. 02/28/00 N/A -3.31% -6.20%
Class D.................... 05/13/99 -0.92% N/A -4.49%
Class R.................... 08/01/00 N/A -2.98% -4.34%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains. Class A returns
shown above are computed with and without the imposition of the maximum
4.75% front-end sales load. Effective March 8, 1999, the Fund began offering
Class B shares which, instead of a front-end sales load, are subject to a
contingent deferred sales charge (CDSC) ranging from 4% during the first
year to 0% after 4 years. The Fund also commenced offering Class C shares on
February 28, 2000, subject to a 1.00% CDSC during the first year, and
Class R shares on August 1, 2000. Class R shares are offered to eligible
institutions who purchase shares on behalf of their clients. Class D shares
are currently offered only to employees of Credit Suisse and its
subsidiaries who are eligible to participate in the Credit Suisse First
Boston Employees' Savings and Profit Sharing Plan. Class D and Class R
shares are not subject to any sales charges. The performance data for
Class A, B and C shares are referenced in the table above with and without
the imposition of their applicable sales charge.
The Lipper High Yield Bond Fund Index is an equally weighted performance
index of the 30 largest funds within the investment objective of high yield
bonds, as defined by Lipper. The index is adjusted for the reinvestment of
capital gains and income dividends.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ CORE EQUITY FUND
COMMON STOCKS -- 99.0%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS -- 1.5% ----------- ------------
<S> <C> <C>
CHEMICALS-0.5%
Air Products and Chemicals, Inc. ... 31,000 $ 1,156,687
------------
METALS & MINING-1.0%
Alcoa, Inc. ........................ 83,300 2,389,669
------------
3,546,356
------------
CAPITAL GOODS -- 9.0%
AEROSPACE & DEFENSE-1.4%
General Dynamics Corp. ............. 47,100 3,370,594
------------
CONGLOMORATES-6.1%
General Electric Co. ............... 187,000 10,249,937
Tyco International Ltd. ............ 76,500 4,336,594
------------
14,586,531
------------
ELECTRICAL EQUIPMENT-1.5%
Emerson Electric Co. ............... 49,100 3,605,781
------------
21,562,906
------------
CONSUMER CYCLICAL -- 10.3%
BROADCASTING & CABLE TV-1.1%
Cablevision Systems Corp.*.......... 20,000 1,490,000
Comcast Corp.*...................... 30,000 1,222,500
------------
2,712,500
------------
LEISURE RELATED-1.4%
Disney (Walt) Co. .................. 94,500 3,384,281
------------
PERSONAL & HOUSEHOLD PRODUCTS-0.8%
Estee Lauder Companies, Inc. Cl.
A.................................. 38,300 1,778,556
------------
PRINTING & PUBLISHING-1.1%
Time Warner, Inc. .................. 34,700 2,634,077
------------
RETAIL-GENERAL-5.9%
CVS Corp. .......................... 71,500 3,785,031
Home Depot, Inc. ................... 60,700 2,610,100
Target Corp. ....................... 117,300 3,240,413
Wal-Mart Stores, Inc. .............. 99,200 4,501,200
------------
14,136,744
------------
24,646,158
------------
CONSUMER STAPLES -- 19.2%
BEVERAGE & TOBACCO-0.6%
Pepsico, Inc. ...................... 29,000 1,404,688
------------
DRUGS-10.9%
American Home Products Corp. ....... 72,000 4,572,000
Amgen, Inc.*........................ 67,500 3,910,781
Johnson & Johnson................... 39,000 3,592,875
Merck & Co., Inc. .................. 84,400 7,590,725
Pharmacia Corp. .................... 55,700 3,063,500
Shering-Plough Corp. ............... 61,200 3,163,275
------------
25,893,156
------------
HOSPITAL SUPPLIES & SERVICES-0.6%
Medtronic, Inc. .................... 24,700 1,341,519
------------
FOOD & FOOD RETAILERS-3.0%
General Mills, Inc.................. 60,300 2,517,525
SYSCO Corp.......................... 88,000 4,592,500
------------
7,110,025
------------
MEDICAL EQUIPMENT & SUPPLIES-1.1%
Baxter International, Inc........... 33,000 2,712,187
------------
SOAPS & TOILETRIES - 3.0%
Colgate-Palmolive Co................ 61,200 3,596,112
Procter & Gamble Co................. 51,500 3,679,031
------------
7,275,143
------------
45,736,718
------------
<CAPTION>
SHARES VALUE
ENERGY -- 7.5% ----------- ------------
OIL-INTERNATIONAL-6.7%
<S> <C> <C>
Chevron Corp........................ 53,200 $ 4,369,050
Exxon Mobil Corp.................... 68,600 6,118,262
Royal Dutch Petroleum Co............ 43,100 2,559,063
Texaco, Inc......................... 49,500 2,923,594
------------
15,969,969
------------
OIL-SERVICES-0.8%
Schlumberger Ltd.................... 23,500 1,788,938
------------
17,758,907
------------
FINANCIAL -- 16.3%
BANKING-6.9%
Chase Manhattan Corp................ 69,400 3,157,700
Citigroup, Inc...................... 86,500 4,552,062
Fleet Boston Financial Corp......... 65,000 2,470,000
Northern Trust Corp................. 36,000 3,073,500
Wells Fargo & Co.................... 70,000 3,241,875
------------
16,495,137
------------
FINANCIAL SERVICES-4.8%
American Express Co................. 80,481 4,828,860
Lehman Brothers Holdings, Inc....... 74,600 4,811,700
Providian Financial Corp............ 16,200 1,684,800
------------
11,325,360
------------
INSURANCE-4.6%
American General Corp............... 30,500 2,455,250
American International Group,
Inc................................ 42,900 4,204,200
Hartford Financial Services, Inc.... 58,400 4,347,150
------------
11,006,600
------------
38,827,097
------------
TECHNOLOGY -- 33.4%
COMMUNICATIONS EQUIPMENT-4.1%
Ciena Corp.*........................ 49,000 5,151,125
Nortel Networks Corp................ 101,600 4,622,800
------------
9,773,925
------------
COMPUTERS-16.2%
Cisco Systems, Inc.*................ 140,600 7,574,825
EMC Corp.*.......................... 82,600 7,356,563
International Business Machines
Corp............................... 31,500 3,102,750
Microsoft Corp.*.................... 102,800 7,080,350
Oracle Corp.*....................... 131,600 4,342,800
Qwest Communications International,
Inc.*.............................. 72,000 3,501,000
Sun Microsystems, Inc.*............. 31,000 3,437,125
Veritas Software Corp.*............. 16,300 2,298,555
------------
38,693,968
------------
ELECTRONICS-8.7%
Intel Corp.......................... 133,000 5,985,000
Linear Technology Corp.............. 28,000 1,807,750
Sanmina Corp.*...................... 11,700 1,337,456
Scientific-Atlanta, Inc............. 60,000 4,106,250
Solectron Corp.*.................... 73,800 3,247,200
Texas Instruments, Inc.............. 88,500 4,342,031
------------
20,825,687
------------
OFFICE SUPPLIES-0.7%
Avery Dennison Corp................. 30,400 1,535,200
------------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ CORE EQUITY FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
TELECOMMUNICATIONS-3.7%
MCI WorldCom, Inc.*................. 127,000 $ 3,016,250
Nextel Communications, Inc.*........ 49,200 1,891,125
Sprint Corp. (PCS Group)*........... 34,800 1,326,750
Voicestream Wireless Corp........... 20,000 2,630,000
------------
8,864,125
------------
79,692,905
------------
TRANSPORT & SERVICE -- 1.8%
ADVERTISING-1.8%
Omnicom Group, Inc.................. 47,200 4,354,200
------------
TOTAL COMMON STOCKS
(cost $150,839,250)................ 236,125,247
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
COMMERCIAL PAPER -- 1.1% ----------- ------------
<S> <C> <C>
(amortized cost $2,644,000)
National Australia Funding
6.581%, 11/01/00**................. $ 2,644,000 $ 2,644,000
------------
TOTAL INVESTMENTS -- 100.1%
(cost $153,483,249)................ 238,769,247
------------
LIABILITIES NET OF CASH AND
OTHER ASSETS -- (0.1)%............. (147,241)
------------
NET ASSETS -- 100.0%................ $238,622,006
------------
------------
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
--------------------------------------------------------------------------------
DLJ GROWTH AND INCOME FUND
COMMON STOCKS -- 97.0%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS -- 11.2% ----------- ------------
<S> <C> <C>
CHEMICALS-0.4%
Rohm & Haas Co...................... 37,000 $ 1,112,313
------------
ELECTRICAL EQUIPMENT-2.0%
Emerson Electric Co................. 70,000 5,140,625
------------
OIL & GAS-7.0%
BP Amoco PLC........................ 28,566 1,455,081
Burlington Resources, Inc........... 110,000 3,960,000
Exxon Mobil Corp.................... 41,000 3,656,687
Schlumberger Ltd.................... 62,500 4,757,813
Texaco, Inc......................... 64,000 3,780,000
------------
17,609,581
------------
PAPER & PAPER PRODUCTS-1.5%
Kimberly Clark Corp................. 56,000 3,696,000
------------
PLASTIC & RUBBER-0.3%
Polyone Corp........................ 88,100 693,788
------------
28,252,307
------------
CAPITAL GOODS/
CONSTRUCTION -- 6.0%
AEROSPACE & DEFENSE-6.0%
General Dynamics Corp............... 91,700 6,562,281
United Technologies Corp............ 121,400 8,475,238
------------
15,037,519
------------
CONSUMER PRODUCTS
& SERVICES -- 32.4%
AUTO & TRUCK PARTS-1.8%
Modine Manufacturing Co............. 169,000 4,457,375
------------
BEVERAGES & TOBACCO-1.3%
Philip Morris Cos., Inc............. 89,000 3,259,625
------------
DRUGS-5.4%
Merck & Co., Inc.................... 106,600 9,587,338
Pharmacia Corp...................... 72,352 3,979,360
------------
13,566,698
------------
FOODS-5.4%
General Mills, Inc.................. 154,200 6,437,850
SYSCO Corp.......................... 134,000 6,993,125
------------
13,430,975
------------
HOSPITAL SUPPLIES & SERVICES-2.8%
Cardinal Health, Inc................ 75,000 7,106,250
------------
HOUSEHOLD FURNITURE-0.6%
Leggett & Platt, Inc................ 87,600 1,434,450
------------
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
LEISURE-0.8%
Cedar Fair LP....................... 111,400 $ 1,984,312
------------
MEDICAL & ENTERTAINMENT-1.9%
Viacom, Inc......................... 85,000 4,834,375
------------
PRINTING & PUBLISHING-2.7%
New York Times Co. Cl. A............ 50,000 1,837,500
Tribune Co.......................... 134,200 4,973,788
------------
6,811,288
------------
RETAIL-FOOD & DRUGS-2.5%
Safeway, Inc........................ 111,500 6,097,656
------------
RETAIL-GENERAL-0.7%
Federated Department Stores, Inc.... 54,000 1,758,375
------------
RETAIL-SPECIALTY-2.1%
Costco Wholesale Corp.*............. 145,000 5,310,625
------------
SOAPS & TOILETRIES-4.4%
Avon Products, Inc.................. 134,500 6,523,250
Johnson and Johnson................. 50,000 4,606,250
------------
11,129,500
------------
81,181,504
------------
ENERGY -- 7.2%
OIL-DOMESTIC-1.9%
National Fuel Gas Co................ 90,000 4,826,250
------------
OIL-SUPPLIES & CONSTRUCTION-5.3%
Enron Corp.......................... 91,200 7,484,100
Halliburton Co...................... 75,600 2,801,925
New Jersey Resources Corp........... 28,000 1,118,250
San Juan Basin Royalty Trust........ 180,000 1,845,000
------------
13,249,275
------------
18,075,525
------------
FINANCIAL SERVICES -- 15.1%
BANKING-8.4%
Bank of America Corp................ 49,337 2,371,260
Citigroup, Inc...................... 73,333 3,859,149
Federal Home Loan Mortgage Corp..... 62,400 3,744,000
Firstar Corp........................ 73,000 1,437,187
Household International, Inc........ 55,000 2,767,188
U.S. Bancorp........................ 146,196 3,536,116
Washington Mutual, Inc.............. 77,200 3,396,800
------------
21,111,700
------------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
INSURANCE-6.7%
American International Group,
Inc................................ 95,452 $ 9,354,296
Hartford Financial Services Group... 15,000 1,116,562
HSB Group, Inc...................... 114,000 4,510,125
Progressive Corp.................... 20,000 1,965,000
------------
16,945,983
------------
38,057,683
------------
PUBLIC UTILITIES -- 3.5%
ELECTRIC-2.0%
Ameren Corp......................... 30,000 1,192,500
Carolina Power & Light Co........... 95,000 3,829,687
------------
5,022,187
------------
OIL & GAS-1.5%
Washington Gas Light Co............. 150,000 3,825,000
------------
8,847,187
------------
SCIENCE & TECHNOLOGY -- 13.4%
COMPUTERS-7.4%
Automatic Data Processing, Inc...... 116,200 7,589,312
Computer Associates International,
Inc................................ 79,700 2,540,437
Gateway 2000, Inc.*................. 71,000 3,664,310
Hewlett-Packard Co.................. 100,400 4,662,325
------------
18,456,384
------------
OFFICE SUPPLIES-1.0%
Avery Dennison Corp................. 50,000 2,525,000
------------
SEMICONDUCTORS-1.6%
Dallas Semiconductor Corp........... 99,000 3,922,875
------------
TELECOMMUNICATIONS-3.4%
Alltel Corp......................... 6,800 438,175
Comcast Corp.-Special Cl. A......... 111,600 4,547,700
Verizon Communication, Inc.......... 61,300 3,543,906
------------
8,529,781
------------
33,434,040
------------
<CAPTION>
TRANSPORT & SERVICE -- 0.7% SHARES VALUE
----------- ------------
<S> <C> <C>
RAILROADS-0.7%
Burlington Northern Santa Fe........ 70,100 $ 1,862,031
------------
MISCELLANEOUS -- 7.5%
DIVERSIFIED-6.7%
Berkshire Hathaway, Inc............. 50 3,185,000
Minnesota Minning and Manufacturing
Co................................. 53,200 5,140,450
Tyco International Ltd.............. 149,000 8,446,438
------------
16,771,888
------------
LIMITED PARTNERSHIP-TIMBER-0.5%
Plum Creek Timber Co. LP............ 50,000 1,296,875
------------
REAL ESTATE INVESTMENT TRUST-0.3%
General Growth Properties, Inc...... 30,000 885,000
------------
18,953,763
------------
TOTAL COMMON STOCKS
(cost $163,448,918)................ 243,701,559
------------
<CAPTION>
PRINCIPAL
AMOUNT
COMMERCIAL PAPER -- 2.9% -----------
<S> <C> <C>
(amortized cost $7,264,000)
National Australia Funding
6.581%, 11/01/00**................. $ 7,264,000 7,264,000
------------
TOTAL INVESTMENTS -- 99.9%
(cost $170,712,918)................ 250,965,559
------------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 0.1%......... 399,111
------------
NET ASSETS -- 100.0%................ $251,364,670
------------
------------
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
--------------------------------------------------------------------------------
DLJ SMALL COMPANY VALUE FUND
COMMON STOCKS -- 98.3%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS -- 6.9% ----------- ------------
<S> <C> <C>
CHEMICALS-3.7%
Cambrex Corp........................ 104,800 $ 4,185,450
Rogers Corp.*....................... 96,600 3,453,450
------------
7,638,900
------------
PACKAGING-1.5%
AptarGroup, Inc..................... 146,600 3,032,787
------------
PAPER-1.3%
Longview Fibre Co................... 205,000 2,793,125
------------
PLASTIC & RUBBER-0.4%
Polyone Corp........................ 11,800 92,925
------------
13,557,737
------------
CAPITAL GOODS/
CONSTRUCTION -- 13.5%
AEROSPACE-3.0%
Esco Electronics Corp.*............. 148,000 2,691,750
Teleflex, Inc....................... 99,900 3,452,794
------------
6,144,544
------------
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
BUILDING & CONSTRUCTION-6.4%
Carlisle Companies, Inc............. 108,200 $ 4,503,825
Lydall, Inc.*....................... 184,500 1,948,781
Manitowoc, Inc.*.................... 85,000 2,310,938
Roper Industries, Inc............... 69,700 2,439,500
RPM, Inc. Ohio...................... 85,187 761,359
Stewart & Stevenson Services,
Inc................................ 50,000 1,200,000
------------
13,164,403
------------
ELECTRICAL EQUIPMENT-4.1%
AMETEK, Inc......................... 185,000 4,023,750
Woodhead Industries, Inc............ 197,800 4,351,600
------------
8,375,350
------------
27,684,297
------------
CONSUMER CYCLICAL -- 17.6%
AUTO RELATED-2.9%
Modine Manufacturing Co............. 131,400 3,465,675
Myers Industries, Inc............... 192,969 2,556,839
------------
6,022,514
------------
FOOD SERVICE/LODGING-5.4%
Marcus Corp......................... 149,975 2,127,770
Performance Food Group, Inc.*....... 127,000 5,143,500
Universal Foods Corp................ 196,800 3,886,800
------------
11,158,070
------------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
HOUSEHOLD FURNITURE/APPLIANCES-1.5%
Chromcraft Revington, Inc.*......... 156,600 $ 1,291,950
HON Industries, Inc................. 77,000 1,852,813
------------
3,144,763
------------
PRINTING & PUBLISHING-4.4%
Banta Corp.......................... 200,250 4,618,266
Harte Hanks, Inc.................... 100,000 2,212,500
Meredith Corp....................... 72,000 2,286,000
------------
9,116,766
------------
RETAIL-GENERAL-3.4%
Michael's Stores, Inc.*............. 39,000 948,188
Neiman Marcus Group, Inc.*.......... 90,000 3,116,250
Ruddick Corp........................ 227,700 2,988,563
------------
7,053,001
------------
36,495,114
------------
CONSUMER STAPLES -- 12.2%
DRUGS-3.7%
King Pharmaceuticals, Inc........... 64,312 2,881,981
Pharmaceutical Product Development,
Inc.*.............................. 155,000 4,853,438
------------
7,735,419
------------
HOSPITAL SUPPLIES & SERVICES-8.5%
Arrow International, Inc............ 116,000 4,676,250
Beckman Coulter, Inc................ 56,600 3,965,537
Dentsply International, Inc......... 50,000 1,734,375
H.B. Fuller Co...................... 59,610 2,015,563
Invacare Corp....................... 166,700 4,750,950
Patterson Dental Co................. 15,000 469,688
------------
17,612,363
------------
25,347,782
------------
ENERGY -- 3.3%
OIL-SUPPLIES & CONSTRUCTION-3.3%
Oceaneering International, Inc.*.... 112,000 1,575,000
Tidewater, Inc...................... 54,100 2,498,744
Varco International, Inc.*.......... 159,767 2,755,981
------------
6,829,725
------------
FINANCIAL -- 17.3%
BANKS-11.3%
AmSouth Bancorporation.............. 127,022 1,770,369
Associated Banc-Corp................ 24,300 584,719
Banknorth Group, Inc................ 198,000 3,588,750
Centura Banks, Inc.................. 33,000 1,268,437
Cullen/Frost Bankers, Inc........... 128,000 4,264,000
FirstMerit Corp..................... 180,000 4,106,250
National Commerce Bancorporation.... 156,800 3,332,000
Peoples' Bank, Inc.................. 105,000 2,126,250
Susquehanna Bancshares, Inc......... 75,000 1,059,375
Webster Financial Corp.............. 50,000 1,218,750
------------
23,318,900
------------
INSURANCE-6.0%
Brown & Brown, Inc.................. 153,800 4,998,500
Horace Mann Educators Corp.......... 52,400 880,975
HSB Group, Inc...................... 96,950 3,835,584
Protective Life Corp................ 120,200 2,779,625
------------
12,494,684
------------
35,813,584
------------
PUBLIC UTILITIES -- 6.3%
ELECTRIC-2.3%
Equitable Resources, Inc............ 84,000 4,872,000
------------
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
GAS-4.0%
National Fuel Gas Co................ 89,600 $ 4,804,800
Washington Gas Light Co............. 134,500 3,429,750
------------
8,234,550
------------
13,106,550
------------
TECHNOLOGY -- 15.9%
COMPUTER HARDWARE-1.7%
Mercury Computer Systems, Inc....... 112,000 3,472,000
------------
COMPUTER SERVICES-2.4%
BISYS Group, Inc.*.................. 106,000 4,995,250
------------
ELECTRONICS-9.3%
Benchmark Electronics, Inc.*........ 45,500 1,831,375
C&D Technologies, Inc.*............. 48,000 2,838,000
Dallas Semiconductor Corp........... 87,800 3,479,075
Electro Scientific Industries,
Inc.*.............................. 52,700 1,841,206
Methode Electronics, Inc............ 62,150 2,338,394
Pioneer Standard Electronics,
Inc................................ 239,450 3,322,369
Technitrol, Inc..................... 31,600 3,503,650
------------
19,154,069
------------
SOFTWARE & PROGRAMMING-2.4%
Mentor Graphics Corp.*.............. 81,100 1,900,781
Progress Software Corp.*............ 196,800 3,111,900
------------
5,012,681
------------
TELECOMMUNICATIONS-0.1%
CFW Communications Co............... 8,500 168,937
------------
32,802,937
------------
TRANSPORT & SERVICE -- 3.2%
PROFESSIONAL SERVICES-1.8%
Tetra Tech, Inc..................... 105,175 3,654,831
------------
TRUCKING & SHIPPING-1.4%
Werner Enterprises, Inc............. 206,750 2,894,500
------------
6,549,331
------------
MISCELLANEOUS -- 2.1%
DIVERSIFIED-1.5%
Brady (W.H.) Cl. A.................. 102,700 3,183,700
------------
REAL ESTATE INVESTMENT TRUST-0.6%
Liberty Property Trust.............. 49,000 1,295,437
------------
4,479,137
------------
TOTAL COMMON STOCKS
(cost $141,577,222)................ 202,666,194
------------
<CAPTION>
PRINCIPAL
AMOUNT
COMMERCIAL PAPER -- 3.0% -----------
<S> <C> <C>
(amortized cost $6,282,000)
National Australia Funding
6.581%, 11/01/00**................. $ 6,282,000 6,282,000
------------
TOTAL INVESTMENTS -- 101.3%
(cost $147,859,222)................ 208,948,194
------------
LIABILITIES NET OF CASH AND
OTHER ASSETS -- (1.3%)............. (2,866,540)
------------
NET ASSETS -- 100.0%................ $206,081,654
------------
------------
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ TECHNOLOGY FUND
<TABLE>
<CAPTION>
SHARES VALUE
COMMON STOCKS -- 97.5% ----------- ------------
<S> <C> <C>
BUSINESS & INFORMATION
TECHNOLOGY SERVICES-1.2%
Electronic Data Systems Corp.*...... 9,800 $ 459,988
------------
COMMUNICATIONS SERVICES-7.9%
Amdocs Ltd*......................... 7,475 484,473
Nextel Communications, Inc.*........ 9,300 357,469
Openwave Systems, Inc.*............. 5,725 529,920
Pegasus Communication Corp.*........ 7,850 279,166
Portal Software, Inc.*.............. 10,800 380,025
Qwest Communications International,
Inc.*.............................. 7,400 359,825
XO Communications, Inc.*............ 15,001 506,049
------------
2,896,927
------------
COMPUTER NETWORKING-3.4%
3Com Corp.*......................... 14,975 265,806
Cisco Systems, Inc.*................ 17,950 967,056
------------
1,232,862
------------
COMPUTER SYSTEMS MANUFACTURERS-8.5%
Network Appliance, Inc.*............ 13,825 1,645,175
Sun Microsystems, Inc. *............ 13,400 1,485,725
------------
3,130,900
------------
ELECTRONIC MANUFACTURING SERVICES-8.5%
Flextronics International Ltd*...... 20,350 773,300
Sanmina Corp.*...................... 9,975 1,140,267
SCI Systems, Inc.*.................. 13,275 570,825
Solectron Corp.*.................... 14,500 638,000
------------
3,122,392
------------
INTERNET BUSINESS-TO-BUSINESS &
CONSUMER-2.1%
RealNetworks, Inc.*................. 12,825 264,315
Yahoo! Inc.*........................ 8,500 498,313
------------
762,628
------------
INTERNET BUSINESS-TO-BUSINESS-6.8%
Agile Software Corp.*............... 8,200 618,075
DoubleClick, Inc.*.................. 10,500 170,625
Exodus Communications, Inc.*........ 21,200 711,525
Globix Corp.*....................... 20,000 202,500
I2 Technologies, Inc.*.............. 3,625 616,250
Vitria Technology, Inc.*............ 6,000 161,250
------------
2,480,225
------------
INTERNET BUSINESS-TO-CONSUMER-3.3%
America OnLine, Inc.*............... 12,825 646,765
eBay, Inc.*......................... 10,975 565,213
------------
1,211,978
------------
PERSONAL COMPUTER MANUFACTURERS-3.6%
Gateway, Inc.*...................... 6,350 327,723
Palm, Inc.*......................... 18,584 995,406
------------
1,323,129
------------
SEMICONDUCTOR MANUFACTURERS-LARGE-7.3%
Analog Devices, Inc.*............... 12,050 783,250
Linear Technology Corp.............. 15,375 992,648
Texas Instruments, Inc.............. 18,000 883,125
------------
2,659,023
------------
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
SEMICONDUCTOR MANUFACTURERS-FABLESS-4.5%
Lattice Semiconductor Corp.*........ 27,300 $ 796,819
Xilinx, Inc*........................ 12,075 874,683
------------
1,671,502
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-5.1%
Applied Materials, Inc.*............ 13,675 726,484
Kla-Tencor Corp.*................... 15,300 517,331
SDL, Inc.*.......................... 2,450 635,163
------------
1,878,978
------------
SOFTWARE PRODUCTS-19.4%
BEA Systems, Inc.*.................. 10,975 787,456
BMC Software, Inc.*................. 9,650 196,016
Cognos, Inc.*....................... 29,700 1,232,550
Microsoft Corp.*.................... 9,825 676,697
Oracle Corp.*....................... 32,500 1,072,500
Peregrine Systems, Inc.*............ 18,800 451,200
Quest Software, Inc.*............... 8,300 362,606
Siebel Systems, Inc.*............... 9,675 1,015,270
Veritas Software Corp.*............. 9,425 1,329,072
------------
7,123,367
------------
STORAGE NETWORKS & SYSTEMS-5.8%
EMC Corp.*.......................... 13,950 1,242,422
QLogic Corp.*....................... 9,300 899,775
------------
2,142,197
------------
TELECOMMUNICATIONS EQUIPMENT-10.1%
ANTEC Corp.*........................ 10,350 126,141
CIENA Corp.*........................ 12,650 1,329,831
Corning, Inc........................ 5,800 443,700
Scientific-Atlanta, Inc.*........... 12,100 828,094
Sycamore Networks, Inc.*............ 5,000 316,250
Tellabs, Inc.*...................... 12,975 647,939
------------
3,691,955
------------
TOTAL COMMON STOCKS
(cost $36,599,789)................. 35,788,051
------------
<CAPTION>
PRINCIPAL
AMOUNT
COMMERCIAL PAPER -- 2.4% -----------
<S> <C> <C>
(amortized cost $868,000)
National Australia Funding
6.581%, 11/01/00**................. $ 868,000 868,000
------------
TOTAL INVESTMENTS -- 99.9%
(cost $37,467,789)................. 36,656,051
------------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 0.1%......... 31,605
------------
NET ASSETS -- 100.0%................ $ 36,687,656
------------
------------
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ STRATEGIC GROWTH FUND
COMMON STOCKS -- 98.3%
<TABLE>
<CAPTION>
SHARES VALUE
CAPITAL GOODS -- 8.1% ---------- ------------
<S> <C> <C>
CONGLOMERATES-6.9%
General Electric Co.................. 7,600 $ 416,575
Tyco International Ltd............... 3,350 189,903
------------
606,478
------------
SEMICONDUCTOR CAPITAL EQUIPMENT-1.2%
Applied Materials, Inc.*............. 1,933 102,691
------------
709,169
------------
CONSUMER CYCLICAL -- 9.1%
BROADCASTING & CABLE TV-2.0%
Time Warner, Inc..................... 2,275 172,695
------------
172,695
------------
INTERNET-2.4%
America Online, Inc.*................ 3,150 158,854
Exodus Communications, Inc.*......... 1,600 53,700
------------
212,554
------------
RETAIL-GENERAL-4.7%
Costco Wholesale Corp.*.............. 1,975 72,334
Home Depot, Inc...................... 3,275 140,825
Wal-Mart Stores, Inc................. 4,325 196,247
------------
409,406
------------
794,655
------------
CONSUMER STAPLES -- 25.7%
DRUGS-16.9%
American Home Products Corp.......... 3,300 209,550
Amgen, Inc.*......................... 3,075 178,158
Merck & Co., Inc..................... 3,700 332,769
Millennium Pharmaceuticals, Inc.*.... 2,300 166,894
Pfizer, Inc.......................... 5,100 220,256
Pharmacia Corp....................... 3,167 174,185
Schering-Plough Corp................. 3,900 201,581
------------
1,483,393
------------
FOOD & BEVERAGE-1.2%
General Mills, Inc................... 2,575 107,506
------------
HOME PRODUCTS-3.1%
Colgate-Palmolive Co................. 2,200 129,272
Procter & Gamble Co.................. 2,025 144,661
------------
273,933
------------
MEDICAL PRODUCTS & SUPPLIES-4.5%
Johnson & Johnson.................... 2,400 221,100
Medtronic, Inc....................... 3,125 169,726
------------
390,826
------------
2,255,658
------------
FINANCIAL -- 3.7%
BANKING-1.0%
Citigroup, Inc....................... 1,766 92,936
------------
FINANCIAL SERVICES-2.7%
Lehman Brothers Holdings, Inc........ 2,000 129,000
Providian Financial Corp............. 1,000 104,000
------------
233,000
------------
325,936
------------
INFORMATION SERVICES -- 2.2%
Omnicom Group, Inc................... 2,075 191,419
------------
<CAPTION>
SHARES VALUE
TECHNOLOGY -- 49.5% ---------- ------------
<S> <C> <C>
COMPUTERS-25.5%
BMC Software, Inc.*.................. 1,525 $ 30,977
Cisco Systems, Inc.*................. 5,950 320,556
Computer Associates International,
Inc................................. 1,800 57,375
EMC Corp.*........................... 3,450 307,266
Microsoft Corp.*..................... 4,675 321,991
Network Appliance, Inc.*............. 1,750 208,250
Oracle Corp.*........................ 7,500 247,500
Siebel Systems, Inc.*................ 2,000 209,875
Sun Microsystems, Inc.*.............. 2,550 282,731
Veritas Software Corp.*.............. 1,725 243,252
------------
2,229,773
------------
ELECTRONICS-11.7%
Ciena Corp.*......................... 1,480 155,585
Corning, Inc.*....................... 2,100 160,650
Flextronics International Ltd*....... 2,350 89,300
Nortel Networks Corp................. 3,550 161,525
SCI Systems, Inc.*................... 1,775 76,325
Scientific-Atlanta, Inc.*............ 2,825 193,336
Solectron Corp.*..................... 2,650 116,600
Tellabs, Inc.*....................... 1,425 71,161
------------
1,024,482
------------
SEMICONDUCTORS-7.8%
Analog Devices, Inc.*................ 1,700 110,500
Intel Corp........................... 6,000 270,000
Linear Technology Corp............... 1,700 109,756
Texas Instruments, Inc............... 3,900 191,344
------------
681,600
------------
TELECOMMUNICATIONS-4.5%
MCI WorldCom, Inc.*.................. 3,000 71,250
Nextel Communications, Inc.*......... 1,800 69,187
Sprint Corp. (FON Group)............. 1,775 45,263
XO Communications, Inc.*............. 6,200 209,153
------------
394,853
------------
4,330,708
------------
TOTAL COMMON STOCKS
(cost $8,292,866)................... 8,607,545
------------
<CAPTION>
PRINCIPAL
AMOUNT
COMMERCIAL PAPER -- 1.9% ----------
<S> <C> <C>
(amortized cost $167,000)
National Australia Funding
6.581%, 11/01/00**.................. $ 167,000 167,000
------------
TOTAL INVESTMENTS -- 100.2%
(cost $8,459,866)................... 8,774,545
------------
LIABILITIES NET OF CASH
AND OTHER ASSETS -- (0.2)%.......... (15,059)
------------
NET ASSETS -- 100.0%................. $ 8,759,486
------------
------------
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
COMMON STOCKS -- 94.1% ------------ ------------
<S> <C> <C>
AUSTRALIA-0.7%
National Australia Bank Ltd........ 4,410 $ 61,239
Normandy Mining Ltd................ 46,400 22,359
Qantas Airways Ltd................. 42,100 84,639
Telstra Corporation Ltd............ 36,150 117,931
The News Corporation Ltd........... 9,810 102,576
Woodside Petroleum Ltd............. 8,100 59,178
-----------
447,922
-----------
BELGIUM-1.8%
Fortis Cl.`B'...................... 10,970 335,664
Dexia NPV.......................... 5,129 780,347
-----------
1,116,011
-----------
DENMARK-0.3%
Tele Danmark AS.................... 4,510 213,146
-----------
FINLAND-2.0%
Oy Nokia (Ab) Ser `A'.............. 30,400 1,249,444
-----------
FRANCE-13.5%
Accor SA........................... 8,000 323,444
Air Liquide SA..................... 2,350 277,466
Alcatel Alsthom.................... 14,354 874,768
Aventis SA......................... 12,579 906,267
CAP Gemini SA...................... 2,100 334,632
Carrefour SA....................... 3,646 244,447
Danone Groupe...................... 2,620 365,973
Lafarge SA......................... 11,459 845,000
Lagardere S.C.A.................... 2,937 166,541
LVMH (Moet-Hennessy Louis
Vuitton).......................... 4,300 313,442
Pinault-Printemps-Redoute SA....... 1,500 267,375
Publicis Groupe SA................. 3,250 106,194
Rhodia SA.......................... 10,365 129,496
STMicroelectronics NV.............. 11,250 566,885
Suez Lyonnaise des Eaux SA......... 2,350 358,136
Television Francaise............... 6,180 336,814
Total Fina SA...................... 10,392 1,485,072
Vivendi............................ 8,140 584,386
-----------
8,486,338
-----------
GERMANY-4.9%
Allianz AG......................... 2,681 910,102
Bayerische Vereinsbank AG.......... 5,450 298,876
BASF AG............................ 6,089 239,472
Deutsche Lufthansa AG.............. 14,959 295,427
Deutsche Telecom AG................ 13,220 493,592
SAP AG Vorzug...................... 4,140 836,912
-----------
3,074,381
-----------
HONG KONG-7.1%
Cheung Kong (Holdings) Ltd......... 60,000 663,538
China Resources Enterprises Ltd.... 110,000 124,117
China Telecom (Hong Kong) Ltd*..... 172,000 1,108,205
Citic Pacific Ltd.................. 170,000 682,258
Hong Kong & China Gas Company
Ltd............................... 309,100 390,383
Hong Kong Electric Holdings........ 55,000 181,591
Hutchison Whampoa Ltd.............. 49,500 614,061
I-Cable Communications Ltd*........ 235 86
New World China Land Ltd........... 190 61
New World Development Company
Ltd............................... 125,000 148,254
Shanghai Industrial Holdings
Ltd............................... 156,000 294,034
SmarTone Telecommunications
Holdings Ltd...................... 61,000 90,337
Wharf (Holdings) Ltd............... 94,000 191,638
-----------
4,488,563
-----------
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
ITALY-7.0%
Autogrill SPA...................... 29,412 $ 324,334
Banca Nazionale del Lavoro SPA..... 80,000 259,027
ENI SPA............................ 100,658 544,327
Italcementi SPA.................... 28,342 224,852
Saipem SPA......................... 141,700 737,444
San Paolo-IMI SPA.................. 100,353 1,624,630
Seat Pagine Gialle SPA............. 210,000 404,941
Telecom Italia SPA................. 25,752 297,944
-----------
4,417,499
-----------
IRELAND-0.4%
Bank of Ireland Plc................ 35,720...... 271,948
-----------
JAPAN-18.2%
Bank of Tokyo - Mitsubishi Ltd..... 36,000 431,578
Canon, Inc......................... 12,000 475,868
Daiwa Securities Group, Inc........ 15,000 166,087
Fujitsu Ltd........................ 10,000 178,038
Fujitsu Support and Service,
Inc............................... 2,000 242,879
Hitachi Ltd........................ 40,000 428,611
Ito EN Ltd......................... 8,000 575,144
Ito-Yokado Co. Ltd................. 10,000 451,507
Japan Airlines Co. Ltd............. 50,000 200,110
Japan Tobacco Inc.................. 39 267,882
Minebea Co. Ltd.................... 24,000 239,582
Mitsubishi Chemical Corp. Ltd...... 130,000 410,752
Mitsui Fudosan Co. Ltd............. 34,000 411,649
NEC Corp. Ltd...................... 15,000 285,740
Nintendo Co. Ltd................... 3,000 499,222
Nippon Express Co. Ltd............. 55,000 329,929
Nippon Telegraph & Telephone Corp.
Ltd............................... 83 754,822
NTT Mobile Communication Network,
Inc............................... 20 492,719
Sekisui House Ltd.................. 41,000 433,318
Shiseido Co. Ltd................... 21,000 271,179
Sony Corp. Ltd..................... 9,000 718,747
Sumitomo Bakelite Co. Ltd.......... 40,000 447,294
Sumitomo Bank Ltd.................. 30,000 364,044
Takeda Chemical Industries Ltd..... 16,000 1,053,576
TDK Corp. Ltd...................... 4,000 402,967
The Asahi Bank Ltd................. 100,000 393,809
Toyota Motor Corp. Ltd............. 12,000 479,165
World Co. Ltd...................... 3,000 110,450
-----------
11,516,668
-----------
NETHERLANDS-4.5%
Heineken NV........................ 9,236 501,020
ING Groep NV....................... 16,218 1,112,357
Koninklijke (Royal) Philips
Electronics NV.................... 18,167 713,097
VNU NV............................. 10,524 495,068
-----------
2,821,542
-----------
PORTUGAL-0.8%
Banco Portugues SA................. 55,236 275,758
Portugal Telecom SA................ 26,695 237,580
-----------
513,338
-----------
SINGAPORE-0.5%
Fraser & Neave Ltd................. 15,100 52,469
Singapore Airlines Ltd............. 10,900 108,659
Total Access Communication Public
Company Ltd....................... 44,000 139,920
-----------
301,048
-----------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
SPAIN-2.7%
Banco Santander SA................. 50,000 $ 483,980
Endesa SA.......................... 19,820 322,549
Grupo Dragados SA.................. 31,813 308,746
Telefonica SA...................... 31,387 597,783
-----------
1,713,058
-----------
SWEDEN-2.0%
Nordbanken Holding AB.............. 44,650 334,207
Telefonaktiebolaget LM Ericsson
AB................................ 68,236 905,727
Tele1 Europe Holding AB*........... 4,080 31,353
-----------
1,271,287
-----------
SWITZERLAND-6.2%
Nestle SA.......................... 463 959,165
Novartis AG -- Reg. Shares......... 612 928,160
Roche Holding AG................... 40 365,274
Schindler Holding AG............... 200 291,975
UBS -- Union Bank of Switzerland
Ltd............................... 5,698 789,056
Zurich Allied AG................... 1,156 559,324
-----------
3,892,954
-----------
UNITED KINGDOM-21.5%
AstraZeneca Group Plc.............. 6,500 304,669
Bank of Scotland Plc............... 50,909 475,321
Barclays Plc....................... 26,532 759,728
BG Group Plc....................... 100,000 400,766
BP Amoco Plc....................... 97,011 823,354
British Aerospace Plc.............. 58,642 333,366
British Telecommunications Plc..... 55,184 647,449
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
Cable & Wireless Plc............... 27,498 $ 389,302
Carlton Communications Plc......... 10 81
CGU Plc............................ 15,000 200,818
Dimension Data Holdings Plc........ 64,000 561,304
EMAP Plc........................... 12,000 141,139
Energis Plc*....................... 52,620 450,418
Glaxo Wellcome Plc................. 27,808 801,111
Invensys Plc....................... 230,970 551,700
Kingfisher Plc..................... 44,266 264,819
Lattice Group Plc.................. 100,000 213,451
Prudential Corporation Plc......... 49,835 670,804
Reed International Plc............. 67,700 626,195
Royal Bank of Scotland Group Plc... 45,252 1,016,505
Sema Group Plc..................... 16,070 203,011
Shell Transport & Trading Co.
Plc............................... 175,057 1,409,491
Smithkline Beecham Plc............. 18,788 242,802
Tesco Plc.......................... 61,860 236,011
Vodafone Group Plc................. 444,671 1,851,499
-----------
13,575,114
-----------
TOTAL INVESTMENTS -- 94.1%
(cost $54,282,569).............. 59,370,261
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 5.9%........ 3,701,316
-----------
NET ASSETS -- 100.0%............... $63,071,577
-----------
-----------
</TABLE>
* Non-income producing
--------------------------------------------------------------------------------
DLJ DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
COMMON STOCKS -- 86.9% ------------ ------------
<S> <C> <C>
ARGENTINA-0.7%
Perez Companc...................... 36,000 $ 51,850
Telefonica de Argentina SA ADR..... 3,000 51,563
-----------
103,413
-----------
CHILE-2.4%
Banco de A. Edwards SA ADR*........ 7,000 84,000
Cia Cervecerias Unidas SA ADR...... 5,000 96,563
Cia de Telecomunicaciones de Chile
SA ADR............................ 6,000 91,500
Empresa Nacional Electricida SA
ADR............................... 10,000 105,000
Quimica Minera Chile SA ADR........ 169 3,127
-----------
380,190
-----------
CHINA-8.7%
China Everbright International
Ltd*.............................. 1,516,000 58,314
China Petroleum and Chemical
Corporation Ltd*.................. 550,000 107,897
China Resources Enterprise Ltd..... 124,000 139,914
China Telecom (Hong Kong) Ltd...... 93,000 599,204
China Unicom Ltd*.................. 50,000 100,332
Citic Pacific Ltd.................. 50,000 200,664
PetroChina Company Ltd............. 678,000 142,570
-----------
1,348,895
-----------
CZECH REPUBLIC-0.6%
Ceske Energeticke Zavody AS*....... 40,000 97,380
-----------
GREECE-4.0%
Alpha Bank SA...................... 6,000 221,285
Hellenic Telecommunications
Organization SA................... 9,000 156,868
Panafon Hellenic Telecom SA........ 12,000 99,563
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
Titan Cement Company SA............ 4,000 $ 143,681
-----------
621,397
-----------
HUNGARY-1.9%
Gedeon Richter Rt.................. 2,020 97,718
Graphisoft NV...................... 7,500 94,163
Magyar Tavkozlesi Rt.*............. 3,900 91,650
Mol Magyar Olaj GDR................ 1,000 15,350
-----------
298,881
-----------
INDIA-4.8%
Grasim Industries Ltd. GDR......... 18,000 94,500
ICICI Bank Ltd.*................... 19,000 90,250
Infosys Technologies SP ADR........ 2,000 275,000
Mahindra & Mahindra Ltd. GDR*...... 29,000 82,650
Ranbaxy Laboratories GDR........... 7,000 121,625
Videsh Sanchar ADR*................ 11,000 82,139
-----------
746,164
-----------
ISRAEL-4.7%
Check Point Software Technologies
Ltd.*............................. 2,610 413,359
ECI Telecom Ltd.................... 3,000 70,875
Nice-Systems Ltd. ADR.............. 1,000 46,750
Orbotech Ltd....................... 1,500 79,406
Teva Pharmaceutical Industries
Ltd............................... 2,000 118,250
-----------
728,640
-----------
MALAYSIA-5.5%
Malayan Banking Bhd................ 59,000 236,000
Resorts World Bhd.................. 76,000 133,000
Telecom Malaysia Bhd............... 41,000 126,237
Tenaga Nasional Bhd................ 62,400 201,979
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
Unisem (M) Bhd..................... 23,000 $ 81,105
United Engineers Bhd............... 50,000 71,053
YTL Corporation Bhd Warrants....... 3,650 860
-----------
850,234
-----------
MEXICO-11.3%
Cifra SA de CV Ser.`V'............. 162,000 390,168
Fomento Economico Mexicano SA de
CV................................ 95,000 362,311
Grupo Carso SA de CV Ser.`A1'*..... 18,000 40,343
Grupo Financiero Banamex Accival SA
de CV............................. 123,000 191,495
Grupo Iusacell SA de CV ADR*....... 13,000 169,000
Grupo Televisa SA GDR*............. 5,000 270,624
Telefonos de Mexico SA Cl.`L'
ADR............................... 6,200 334,413
-----------
1,758,354
-----------
MOROCCO-0.3%
Managem............................ 775 41,409
-----------
PHILIPPINES-0.7%
SM Prime Holdings Inc.............. 1,469,000 114,878
-----------
POLAND-1.3%
Bank Slaski SA..................... 2,000 79,845
Polski Koncern Naftowy Orlen SA.... 8,000 62,000
Telekomukacja Polska SA............ 12,000 59,141
-----------
200,986
-----------
RUSSIA-3.1%
OAO Lukoil Holding ADR............. 4,000 249,000
Surgutneftegaz ADR................. 10,000 128,750
Unified Energy Systems ADR......... 8,000 100,500
-----------
478,250
-----------
SOUTH AFRICA-5.6%
De Beers Centenary AG.............. 5,000 137,590
Impala Platinum Holdings LTD....... 3,000 128,594
M-Cell Ltd......................... 54,000 200,034
Nedcor Ltd......................... 9,000 169,077
Sappi Ltd.......................... 12,000 82,236
Sasol Ltd.......................... 20,000 153,201
-----------
870,732
-----------
SOUTH KOREA-11.3%
Hyundai Motor Co. Ltd.............. 22,000 251,429
Korea Electrical Power ADR......... 30,000 365,625
Samsung Electronics GDR............ 8,000 590,000
Samsung Electro-Mechanics Co.
Ltd............................... 4,000 128,000
Shinhan Bank Ltd................... 24,000 240,527
SK Telecom Co. Ltd ADR............. 7,500 187,969
-----------
1,763,550
-----------
TAIWAN-12.2%
Acer, Inc.*........................ 33,250 137,988
Asustek Computer Inc............... 19,000 94,527
Cathay Construction Corp........... 50 12
Cathay Life Insurance Co. Ltd...... 108,804 195,007
Chinatrust Commercial Bank......... 181,680 115,090
Evergreen Marine Corp.............. 987 616
Far Eastern Textile Ltd............ 35 29
Formosa Chemicals & Fibre Corp..... 191 148
Formosa Plastic Corp............... 89,000 141,637
Hon Hai Precision Industry*........ 24,613 128,537
Hua Nan Commercial Bank............ 346 284
International Commercial Bank of
China............................. 771 569
Microtek International, Inc.*...... 980 164
Pacific Electrical Wire & Cable
Corp.*............................ 898 373
<CAPTION>
SHARES U.S. $ VALUE
------------ ------------
<S> <C> <C>
Taiwan Semiconductor Manufacturing
Co. Ltd*.......................... 28,000 $ 635,250
U-Ming Marine Transport Corp....... 211 48
United Microelectronics Corp....... 208,000 366,367
Winbond Electronics Corp........... 84,000 81,246
Yang Ming Marine Transport......... 849 308
-----------
1,898,200
-----------
THAILAND-1.8%
Advanced Info Service Co. Ltd.*.... 11,000 78,527
Hana Microelectronics Co. Ltd...... 18,000 43,788
Siam City Cement Public Co. Ltd.... 33,000 79,527
Thai Farmers Bank Public Co.
Ltd............................... 152,000 78,618
-----------
280,460
-----------
TURKEY-4.0%
Aygaz AS........................... 894,000 39,276
Efes Sinai Holding AS*............. 10,462,000 114,910
Haci Omer Sabanci Holding AS....... 11,199,000 113,164
Turkcell Iletisim Hizmetleri AS*... 2,000,000 87,869
Vestel Elektronik Sanayi ve Ticaret
AS*............................... 333,000 68,274
Yapi ve Kredi Bankasi AS........... 22,703,020 196,164
-----------
619,657
-----------
UNITED KINGDOM-1.6%
Dimension Data Holdings Plc........ 15,000 128,990
Old Mutual Plc..................... 52,000 114,204
-----------
243,194
-----------
VENEZUELA-0.4%
Compania Anonima Nacional Telefonos
de Venezuela...................... 3,000 57,000
-----------
TOTAL COMMON STOCKS
(cost $15,708,686)................ 13,501,864
-----------
PREFERRED STOCKS -- 13.3%
BRAZIL-13.3%
Banco Bradesco SA Prf.............. 18,186,000 112,442
Companhia de Bebidas das Americas
SA Prf*........................... 1,440,000 321,433
Centrais Electricas Brasileiras SA
Prf Cl.`B'........................ 10,722,000 190,451
Companhia Energetica de Minas
Gerais SA Prf..................... 5,757,000 87,418
Companhia Vale do Rio Doce SA
Prf............................... 15,000 345,821
Embratel Participacoes SA Prf...... 10,722,000 172,080
Empresa Brasileira de Aeronautica
SA ADR*........................... 4,200 121,538
Petroleo Brasileiro SA Prf......... 17,000 450,810
Tele Celular Sul Participacoes SA
Prf............................... 5,950,000 70,396
Tele Norte Leste Participacoes SA
Prf*.............................. 5,477,000 119,613
Unibanco-Uniao de Bancos
Brasileiros SA.................... 2,654,730 68,145
-----------
TOTAL PREFERRED STOCKS
(cost $1,950,725)................. 2,060,147
-----------
TOTAL INVESTMENTS -- 100.2%
(cost $17,659,411)................ 15,562,011
-----------
LIABILITIES NET OF CASH AND
OTHER ASSETS -- (0.2)%............ (23,904)
-----------
NET ASSETS -- 100.0%............... $15,538,107
-----------
-----------
</TABLE>
* Non-income producing
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ FIXED INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT AMOUNT VALUE
OBLIGATIONS -- 33.4% ----------- ------------
<S> <C> <C>
United States Treasury Bills
6.375%, 03/31/01................... $ 4,650,000 $ 4,650,651
6.375%, 09/30/01................... 4,150,000 4,153,237
United States Treasury Bonds
7.500%, 11/15/16................... 5,250,000 6,048,420
United States Treasury Notes
6.125%, 12/31/01................... 5,350,000 5,343,901
6.500%, 03/31/02................... 4,000,000 4,020,000
6.250%, 08/31/02................... 5,000,000 5,023,650
6.250%, 02/15/03................... 1,250,000 1,258,625
6.500%, 08/15/05................... 2,300,000 2,364,446
7.000%, 07/15/06................... 7,100,000 7,486,737
6.000%, 08/15/09................... 3,000,000 3,032,070
6.500%, 02/15/10................... 2,250,000 2,355,997
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(cost $45,551,151)................. 45,737,734
------------
U.S. GOVERNMENT
AGENCIES -- 20.1%
Federal Home Loan Bank
7.360%, 07/01/04................... 6,000,000 6,166,020
Federal Home Loan Mortgage Corp.
Pool #220016 8.750%, 10/01/01...... 1,793 1,814
6.000%, 07/19/04................... 2,000,000 1,951,700
6.875%, 11/22/06................... 500,000 492,040
7.625%, 09/09/09................... 3,000,000 2,991,300
Pool #260499 10.000%, 04/01/16..... 13,863 14,803
Pool #292065 8.500%, 04/01/17...... 1,519,982 1,571,753
Pool #606523 7.008%, 10/01/19...... 787,253 801,503
Federal National Mortgage
Association
Pool #312088 7.000%, 06/01/02...... 443,543 442,572
Pool #76368 9.250%, 09/01/03....... 25,738 26,993
Pool #76378 9.250%, 09/01/03....... 39,329 41,246
5.625%, 05/14/04................... 3,625,000 3,527,705
5.750%, 06/15/05................... 3,000,000 2,910,210
6.950%, 11/13/06................... 1,000,000 986,010
Pool #125136 8.000%, 07/01/07...... 588,647 599,496
Pool # 035574 8.750%, 10/01/08..... 85,310 87,576
Pool #004542 12.000%, 12/01/08..... 198,806 223,345
Pool #243876 9.000%, 01/01/09...... 142,548 147,002
6.375%, 06/15/09................... 2,404,000 2,355,559
Pool #270674 9.000%, 09/01/17...... 375,492 387,226
Pool #224635 9.000%, 09/01/20...... 77,358 79,776
Pool #124211 7.410%, 12/01/21...... 1,103,948 1,118,642
Pool #124790 9.000%, 02/01/23...... 407,388 420,119
Government National Mortgage Association
Pool #93401 9.500%, 01/15/10....... 111,954 115,837
Pool #058985 11.000%, 07/15/13..... 11,449 12,547
Pool #068764 12.000%, 09/15/13..... 17,163 19,324
Pool #296254 9.500%, 09/15/20...... 4,539 4,721
------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $27,845,545)................. 27,496,839
------------
CORPORATE BONDS -- 40.5%
CONSUMER PRODUCTS & SERVICES-6.5%
Anheuser Busch Cos.
7.000%, 09/01/05................... 1,500,000 1,498,125
Coca-Cola Enterprises
6.700%, 10/15/36................... 4,100,000 4,059,000
Tyco International Group, Inc.
6.375%, 06/15/05................... 3,500,000 3,390,625
------------
8,947,750
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
COMPUTERS-2.4%
Hewlett-Packard Co.
7.150%, 06/15/05................... $ 3,250,000 $ 3,258,125
------------
FINANCIAL-19.8%
Barclays Bank PLC
7.400%, 12/15/09................... 2,500,000 2,487,500
Ford Motor Credit Co.
7.375%, 10/28/09................... 5,000,000 4,887,500
J.P. Morgan & Co.
5.750%, 02/25/04................... 3,000,000 2,883,750
Household Finance Co.
6.000%, 05/01/04................... 4,550,000 4,379,375
MBNA Master Credit Card Trust
6.450%, 02/15/08................... 5,000,000 4,938,250
Sears Credit Account Master Trust
Series 1995-2
8.100%, 06/15/04................... 187,500 187,815
Standard Credit Card Master Trust
8.250%, 11/07/03................... 4,000,000 4,049,880
------------
23,814,070
------------
PUBLIC UTILITIES-5.0%
Consolidated Natural Gas Co.
6.875%, 10/15/26................... 2,000,000 1,952,500
National Rural Utilities Cooperative
Finance Corp.
6.125%, 05/15/05................... 1,000,000 968,750
Oklahoma Gas & Electric Co.
6.500%, 07/15/17................... 4,000,000 3,925,000
------------
6,846,250
------------
TELECOMMUNICATIONS-6.8%
AT&T Corp.
6.000%, 03/15/09................... 5,000,000 4,393,750
MCI Communications Corp.
6.125%, 04/15/02................... 5,000,000 4,937,500
------------
9,331,250
------------
TOTAL CORPORATE BONDS
(cost $54,031,267)................. 52,197,445
------------
COMMERCIAL PAPER -- 5.0%
(amortized cost $6,900,418)
DaimlerChrysler AG
6.448%, 11/01/00*.................. 1,500,000 1,500,000
Merrill Lynch & Co., Inc.
6.553%, 11/02/00*.................. 3,200,000 3,199,418
National Australia Funding
6.581%, 11/01/00*.................. 2,201,000 2,201,000
------------
6,900,418
------------
TOTAL INVESTMENTS -- 99.0%
(cost $134,328,381)................ 132,332,436
------------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 1.0%......... 1,368,234
------------
NET ASSETS -- 100.0%................ $133,700,670
------------
------------
</TABLE>
* Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ MUNICIPAL TRUST FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
MUNICIPAL BONDS -- 98.2% ----------- ------------
<S> <C> <C>
COLORADO-6.9%
Denver, Colorado City & County
Airport
6.750%, 11/15/22................... $ 1,580,000 $ 1,629,375
------------
ILLINOIS-11.3%
Chicago, Illinois General Obligation
5.250%, 01/01/10................... 500,000 513,750
Chicago, Illinois Metropolitan Water
Reclamation District
5.750%, 12/01/01................... 1,000,000 1,013,600
Chicago, Illinois Metropolitan Water
Reclamation District
7.000%, 01/01/11................... 1,000,000 1,157,500
------------
2,684,850
------------
INDIANA-4.6%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05................... 1,000,000 1,082,500
------------
IOWA-4.4%
Iowa Student Loan Liquidation Corp.
6.800%, 03/01/05................... 1,000,000 1,038,750
------------
NEW YORK-9.1%
New York City, New York Ser. G
5.750%, 02/01/08................... 1,000,000 1,056,250
New York State Dormitory Authority
Revenue
6.500%, 05/15/06................... 1,000,000 1,086,250
------------
2,142,500
------------
OKLAHOMA-7.1%
Grand River Dam Authority, Oklahoma
6.250%, 06/01/11................... 1,500,000 1,678,125
------------
PUERTO RICO-5.8%
Puerto Rico Commonwealth Refunding
5.100%, 07/01/02................... 1,000,000 1,012,500
Puerto Rico Electric Power Authority
6.000%, 07/01/11................... 330,000 367,125
------------
1,379,625
------------
TENNESSEE-4.4%
Memphis, Tennessee Electric System
6.000%, 01/01/05................... 1,000,000 1,055,000
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
TEXAS-36.0%
Dallas, Texas Improvement
4.000%, 02/15/04................... $ 1,000,000 $ 977,500
Houston, Texas Revenue
5.000%, 03/01/05................... 2,000,000 2,032,500
Plano, Texas Independent School
District
6.000%, 02/15/05................... 2,000,000 2,107,500
Port Authority of Houston, Texas
5.375%, 10/01/05................... 1,275,000 1,321,219
San Antonio, Texas Electric & Gas
5.000%, 02/01/12................... 1,000,000 1,000,000
Texas State Refunding Ser. A
6.000%, 10/01/08................... 1,000,000 1,086,250
------------
8,524,969
------------
WASHINGTON-4.3%
Washington State General Obligation
5.000%, 01/01/05................... 1,000,000 1,016,250
------------
WISCONSIN-4.3%
Wisconsin State Clean Water Revenue
5.000%, 06/01/03................... 1,000,000 1,013,750
------------
TOTAL MUNICIPAL BONDS
(cost $22,906,131)................. 23,245,694
------------
COMMERCIAL PAPER -- 0.7%
(amortized cost $157,000)
National Australia Funding
6.581%, 11/01/00*.................. 157,000 157,000
------------
TOTAL INVESTMENTS -- 98.9%
(cost $23,063,131)................. 23,402,694
------------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 1.1%......... 270,974
------------
NET ASSETS -- 100.0%................ $ 23,673,668
------------
------------
</TABLE>
* Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000
--------------------------------------------------------------------------------
DLJ HIGH INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
BONDS -- 84.6% ----------- -----------
<S> <C> <C>
AEROSPACE-1.7%
BE Aerospace, Inc. Ser. B
8.000%, 03/01/08**.................. $250,000 $ 232,500
-----------
CHEMICALS-5.2%
Avecia Group, Inc.
11.000%, 07/01/09**................. 250,000 241,250
Huntsman ICI Chemicals LLC
10.125%, 07/01/09**................. 250,000 238,750
Lyondell Chemical Co.
10.875%, 05/01/09**................. 250,000 240,625
-----------
720,625
-----------
CAPITAL GOODS-1.8%
Actuant Corp.
13.000%, 05/01/09*,**............... 250,000 246,250
-----------
CONSUMER NON-DURABLE-1.6%
Consolidated Container Co. LLC
10.125%, 07/15/09**................. 250,000 226,250
-----------
ENERGY-2.0%
R&B Falcon Corp.
9.500%, 12/15/08**.................. 250,000 268,125
-----------
FINANCIAL SERVICES-3.5%
AmeriCredit Corp.
9.875%, 04/15/06**.................. 250,000 245,625
Metris Companies, Inc.
10.125%, 07/15/06**................. 250,000 237,500
-----------
483,125
-----------
FOOD & TOBACCO-6.5%
Advantica Restaurant Group, Inc.
11.250%, 01/15/08**................. 250,000 121,250
Canandaigua Brands, Inc.
8.500%, 03/01/09**.................. 250,000 252,200
National Wine & Spirits Holdings
Corp.
10.125%, 01/15/09**................. 250,000 233,750
Triarc Consumer Group, Inc.
10.250%, 02/15/09**................. 250,000 281,250
-----------
888,450
-----------
FOREST PRODUCTS/CONTAINERS-2.9%
Packaging Corp. of America
9.625%, 04/01/09**.................. 250,000 256,250
Phoenix Color Corp.
10.375%, 02/01/09**................. 180,000 147,600
-----------
403,850
-----------
GAMING/LEISURE-5.5%
Argosy Gaming Co.
10.750%, 06/01/09**................. 250,000 262,500
Mohegan Tribal Gaming
8.750%, 01/01/09**.................. 250,000 245,000
Station Casinos, Inc.
10.125%, 03/15/06**................. 250,000 252,500
-----------
760,000
-----------
SERVICE-1.6%
Allied Waste North America, Inc.
10.000%, 08/01/09**................. 250,000 215,000
-----------
TELECOMMUNICATIONS-15.0%
Covad Communications Group, Inc.
12.000%, 02/15/10**................. 250,000 116,250
Crown Castle International Corp.
9.000%, 05/15/11**.................. 250,000 237,500
Esat Telecom Group PLC Ser. B
11.875%, 12/01/08**................. 250,000 296,250
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<S> <C> <C>
Hermes Europe Railtel BV
11.500%, 08/15/07**................. $ 250,000 $ 113,750
Nextlink Communications, Inc.
10.750%, 06/01/09**................. 250,000 220,625
NTL, Inc. Ser. B
12.375%, 10/01/08**,***............. 250,000 147,500
Pegasus Communications Corp.
9.750%, 12/01/06**.................. 250,000 245,000
Primus Telecommunications Group, Inc.
11.750%, 08/01/04**................. 250,000 123,750
PSI Net, Inc. Ser. B
10.000%, 02/15/05**................. 250,000 120,625
Time Warner Telecom, Inc.
9.750%, 07/15/08**.................. 250,000 222,500
Williams Communications Group, Inc.
10.875%, 10/01/09**................. 250,000 211,875
-----------
2,055,625
-----------
HEALTHCARE-5.6%
Express Scripts, Inc.
9.625%, 06/15/09**.................. 250,000 253,125
ICN Pharmaceutical, Inc.
8.750%, 11/15/08*................... 250,000 249,375
King Pharmaceutical, Inc.
10.750%, 02/15/09**................. 250,000 265,000
-----------
767,500
-----------
HOUSING-1.7%
HMH Properties
7.875%, 08/01/08**.................. 250,000 231,250
-----------
INFORMATION TECHNOLOGY-1.8%
Fairchild Semiconductor Corp.
10.375%, 10/01/07**................. 250,000 246,250
-----------
MANUFACTURING -- MISC.-5.2%
BGF Industries, Inc.
10.250%, 01/15/09**................. 250,000 235,000
Gentek, Inc.
11.000%, 08/01/09**................. 250,000 248,750
Riverwood International Corp.
10.875%, 04/01/08**................. 250,000 226,875
-----------
710,625
-----------
MEDIA/ENTERTAINMENT-9.4%
Adelphia Communications Corp.
7.875%, 05/01/09.................... 250,000 197,500
Charter Communications Holdings LLC
8.625%, 04/01/09**.................. 250,000 226,250
Echostar DBS Corp.
9.375%, 02/01/09**.................. 250,000 246,875
Liberty Group, Inc.
9.375%, 02/01/08**.................. 250,000 203,750
Premier Parks, Inc.
9.250%, 04/01/06**.................. 250,000 231,250
United Pan-Europe Communications NV
10.875%, 08/01/09**................. 250,000 186,250
-----------
1,291,875
-----------
METAL & MINERALS-2.2%
Kaiser Aluminum & Chemical Corp.
12.750%, 02/01/03**................. 250,000 188,750
LTV Corp.
8.200%, 09/15/07**.................. 250,000 118,750
-----------
307,500
-----------
RETAIL-5.2%
MusicLand Group, Inc.
9.000%, 06/15/03**.................. 250,000 228,750
Rent-A-Center, Inc.
11.000%, 08/15/08**................. 250,000 246,250
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
DLJ HIGH INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -----------
<S> <C> <C>
Simmons Co. Ser. B
10.250%, 03/15/09**................. $ 250,000 $ 233,750
-----------
708,750
-----------
TRANSPORTATION -- AUTOMOTIVE-6.2%
American Axle & Manufacturing
Holdings, Inc.
9.750%, 03/01/09**.................. 250,000 224,375
Atlas Air, Inc.
9.375%, 11/15/06**.................. 250,000 246,250
Roller Bearing Company of America
Ser. B 9.625%, 06/15/07**........... 250,000 223,750
Venture Holdings Trust
11.000%, 06/01/07**................. 250,000 156,563
-----------
850,938
-----------
TOTAL BONDS
(cost $13,107,117).................. 11,614,488
-----------
<CAPTION>
PREFERRED STOCKS -- 1.9% SHARES
-----------
<S> <C> <C>
(cost $291,950)
TELECOMMUNICATIONS-1.9%
Dobson Communications, Inc........... 291 265,875
-----------
<CAPTION>
PRINCIPAL
COMMERCIAL PAPER -- 11.9% AMOUNT VALUE
----------- -----------
<S> <C> <C>
(amortized cost $1,640,000)
National Australia Funding
6.581%, 11/01/00'D'................. $ 1,640,000 $ 1,640,000
-----------
TOTAL INVESTMENTS -- 98.4%
(cost $15,039,067).................. 13,520,363
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 1.6%.......... 224,226
-----------
NET ASSETS -- 100.0%................. $13,744,589
-----------
-----------
</TABLE>
* Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from the
registration, normally to qualified institutional buyers. As of October 31,
2000, the value of these securities amounted to $495,625 or 3.6% of net
assets.
** Security has an effective maturity date less than the stated maturity date
due to a call feature.
*** Zero coupon until a specified date at which time the stated coupon rate
becomes effective until maturity.
'D' Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
CORE EQUITY GROWTH AND COMPANY TECHNOLOGY STRATEGIC
FUND INCOME FUND VALUE FUND FUND GROWTH FUND
---- ----------- ---------- ---- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$153,483,249, $170,712,918,
$147,859,222, $37,467,789, and
$8,459,866, respectively)............... $238,769,247 $250,965,559 $208,948,194 $36,656,051 $8,774,545
Cash -- domestic.......................... 73,315 -- -- 17,977 679
Receivable for investment securities
sold.................................... -- 675,245 1,414,374 -- --
Receivable for capital stock sold......... 168,440 8,713 23,095 132,611 --
Dividends and interest receivable......... 77,419 285,132 151,118 899 2,492
Reimbursement due from advisor............ -- -- -- -- 7,768
------------ ------------ ------------ ----------- ----------
Total assets.......................... 239,088,421 251,934,649 210,536,781 36,807,538 8,785,484
------------ ------------ ------------ ----------- ----------
LIABILITIES:
Payable to advisor........................ 119,465 107,948 135,173 4,283 --
Payable to distributor.................... 77,856 67,183 52,879 8,001 2,059
Payable for investment securities
purchased............................... -- -- 3,742,368 -- --
Payable for capital stock redeemed........ 64,535 109,445 157,799 -- --
Cash overdraft due to custodian........... -- 50,773 3,107 -- --
Accrued expenses and other liabilities.... 204,559 234,630 363,801 107,598 23,939
------------ ------------ ------------ ----------- ----------
Total liabilities..................... 466,415 569,979 4,455,127 119,882 25,998
------------ ------------ ------------ ----------- ----------
NET ASSETS................................... $238,622,006 $251,364,670 $206,081,654 $36,687,656 $8,759,486
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
NET ASSETS CONSIST OF:
Capital paid-in........................... $143,260,405 $148,739,486 $115,294,512 $39,466,325 $8,649,718
Undistributed net investment income....... -- 1,212,938 375,783 -- --
Accumulated net realized gain (loss) on
investments............................. 10,075,603 21,159,605 29,322,387 (1,966,931) (204,911)
Net unrealized appreciation (depreciation)
on investments.......................... 85,285,998 80,252,641 61,088,972 (811,738) 314,679
------------ ------------ ------------ ----------- ----------
$238,622,006 $251,364,670 $206,081,654 $36,687,656 $8,759,486
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
CLASS A SHARES:
Net assets................................ $159,945,469 $162,870,688 $188,501,273 $ 2,913,155 $ 478
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Shares outstanding........................ 7,096,595 6,614,170 8,362,136 227,763 9,097
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Net asset value and redemption value per
share................................... $22.54 $24.62 $22.54 $12.79 $10.93
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Maximum offering price per share (net
asset value plus maximum sales
charge)................................. $23.92 $26.12 $23.92 $13.57 $11.60
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS B SHARES:
Net assets................................ $ 50,233,410 $ 41,194,462 $ 17,255,162 $ 1,272,555 $ 359,117
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Shares outstanding........................ 2,305,013 1,685,549 786,118 99,643 32,864
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Net asset value and offering price per
share................................... $21.79 $24.44 $21.95 $12.77 $10.93
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS C SHARES:
Net assets................................ $ 4,412,358 $ 495,899 $ 219,866 $ 479,235 $ 38,306
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Shares outstanding........................ 202,480 20,331 10,020 37,523 3,504
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Net asset value and offering price per
share................................... $21.79 $24.39 $21.94 $12.77 $10.93
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS D SHARES:
Net assets................................ $ 23,028,747 $ 46,707,695 $ 3,293,904
------------ ------------ -----------
------------ ------------ -----------
Shares outstanding........................ 1,018,823 1,895,615 257,587
------------ ------------ -----------
------------ ------------ -----------
Net asset value and offering price per
share................................... $22.60 $24.64 $12.79
------ ------ ------
------ ------ ------
CLASS R SHARES:
Net assets................................ $ 1,002,022 $ 95,926 $ 105,353 $28,728,807 $8,262,585
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Shares outstanding........................ 44,432 3,894 4,658 2,246,647 755,256
------------ ------------ ------------ ----------- ----------
------------ ------------ ------------ ----------- ----------
Net asset value and offering price per
share................................... $22.55 $24.63 $22.62 $12.79 $10.94
------ ------ ------ ------ ------
------ ------ ------ ------ ------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 2000
(continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIXED
INTERNATIONAL DEVELOPING INCOME MUNICIPAL HIGH INCOME
EQUITY FUND MARKETS FUND FUND TRUST FUND FUND
----------- ------------ ---- ---------- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$54,282,569, $17,659,411, $134,328,381,
$23,063,131, and $15,039,067,
respectively)............................ $59,370,261 $15,562,011 $132,332,436 $23,402,694 $13,520,363
Cash -- foreign, at value (cost $788,817
and $152,271, respectively).............. 776,970 146,061 -- -- --
Cash -- domestic........................... 3,194,853 -- -- -- --
Receivable for capital stock sold.......... 18,395 2,000 50,000 -- --
Dividends and interest receivable.......... 140,742 13,159 2,039,139 370,303 369,780
Reimbursement due from advisor............. -- 71,457 -- -- --
Other assets............................... 89,408 -- 9,440 1,651 --
----------- ----------- ------------ ----------- -----------
Total assets........................... 63,590,629 15,794,688 134,431,015 23,774,648 13,890,143
----------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable to advisor......................... 64,590 -- 52,301 1,007 8,002
Payable to distributor..................... 15,235 4,754 10,091 5,691 3,664
Payable for capital stock redeemed......... 240,380 2,022 12,000 -- --
Cash overdraft due to custodian............ -- 76,181 655,953 94,151 38,465
Dividend payable........................... -- -- -- 131 --
Accrued expenses and other liabilities..... 198,847 173,624 -- -- 95,423
----------- ----------- ------------ ----------- -----------
Total liabilities...................... 519,052 256,581 730,345 100,980 145,554
----------- ----------- ------------ ----------- -----------
NET ASSETS.................................... $63,071,577 $15,538,107 $133,700,670 $23,673,668 $13,744,589
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
NET ASSETS CONSIST OF:
Capital paid-in............................ $54,242,175 $21,608,032 $138,421,483 $23,462,813 $15,667,540
Accumulated distributions in excess of net
investment income........................ -- -- -- (2,492) --
Accumulated net realized gain (loss) on
investments.............................. 3,763,140 (3,967,852) (2,724,868) (126,216) (404,247)
Net unrealized appreciation/(depreciation)
on investments........................... 5,066,262 (2,102,073) (1,995,945) 339,563 (1,518,704)
----------- ----------- ------------ ----------- -----------
$63,071,577 $15,538,107 $133,700,670 $23,673,668 $13,744,589
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
CLASS A SHARES:
Net assets................................. $52,965,713 $13,294,038 $ 34,950,921 $22,564,727 $10,708,907
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Shares outstanding......................... 4,396,677 1,547,554 3,564,039 2,235,412 1,226,214
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Net asset value and redemption value per
share.................................... $12.05 $8.59 $9.81 $10.09 $8.73
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Maximum offering price per share (net asset
value plus maximum sales charge)......... $12.79 $9.11 $10.30 $10.59 $9.17
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS B SHARES:
Net assets................................. $ 5,088,876 $ 2,214,010 $ 3,256,257 $ 1,082,464 $ 1,312,937
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Shares outstanding......................... 439,780 267,373 332,052 107,283 150,397
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Net asset value and offering price per
share.................................... $11.57 $8.28 $9.81 $10.09 $8.73
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS C SHARES:
Net assets................................. $ 140,966 $ 11,954 $ 261 $ 260 $ 78,468
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Shares outstanding......................... 12,162 1,447 26 26 8,983
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Net asset value and offering price per
share.................................... $11.59 $8.26 $9.81 $10.05 $8.73
------ ------ ------ ------ ------
------ ------ ------ ------ ------
CLASS D SHARES:
Net assets................................. $ 4,738,190 $ 95,471,436 $ 1,503,575
----------- ------------ -----------
----------- ------------ -----------
Shares outstanding......................... 391,789 9,734,448 172,207
----------- ------------ -----------
----------- ------------ -----------
Net asset value and offering price per
share.................................... $12.09 $9.81 $8.73
------ ------ ------
------ ------ ------
CLASS R SHARES:
Net assets................................. $ 137,832 $ 18,105 $ 21,795 $ 26,217 $ 140,702
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Shares outstanding......................... 11,436 2,108 2,222 2,597 16,116
----------- ----------- ------------ ----------- -----------
----------- ----------- ------------ ----------- -----------
Net asset value and offering price per
share.................................... $12.05 $8.59 $9.81 $10.09 $8.73
------ ------ ------ ------ ------
------ ------ ------ ------ ------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF OPERATIONS for the year ended October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
CORE EQUITY GROWTH AND COMPANY TECHNOLOGY STRATEGIC
FUND INCOME FUND VALUE FUND FUND* GROWTH FUND*
----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................ $ 1,720,853 $4,238,489 $ 3,216,557 $ 5,674 $ 28,639
Interest......................... 344,909 251,620 123,339 64,894 17,849
----------- ----------- ----------- ----------- --------
2,065,762 4,490,109 3,339,896 70,568 46,488
Less withholding tax on foreign
source dividends............... (1,848) -- -- -- --
----------- ----------- ----------- ----------- --------
Total investment income........ 2,063,914 4,490,109 3,339,896 70,568 46,488
----------- ----------- ----------- ----------- --------
EXPENSES:
Investment advisory fees (Note
B)............................. 1,338,293 1,442,618 1,622,703 208,699 47,380
Distribution fees -- Class A
(Note B)....................... 444,797 475,998 524,059 1,209 24
Distribution fees -- Class B
(Note B)....................... 428,149 408,174 176,261 2,158 550
Distribution fees -- Class C
(Note B)....................... 12,245 1,130 363 501 57
Distribution fees -- Class R
(Note B)....................... 225 36 19 56,922 15,618
Shareholder servicing fees (Note
B)............................. -- -- -- 32,907 8,850
Transfer agent fees.............. 209,000 219,000 264,000 26,800 18,000
Custodian fees................... 106,000 123,000 101,000 67,100 44,000
Registration fees................ 45,000 52,000 58,000 58,000 35,000
Printing fees.................... 23,000 21,000 31,000 14,000 6,000
Legal fees....................... 38,000 40,000 37,000 12,000 5,500
Auditing fees.................... 32,000 23,000 16,000 28,000 9,000
Trustees' fees (Note B).......... 19,000 31,000 27,000 11,000 2,000
Miscellaneous.................... 51,615 43,040 52,146 9,773 2,136
----------- ----------- ----------- ----------- --------
Total expenses................. 2,747,324 2,879,996 2,909,551 529,069 194,115
Less expenses reimbursed by
advisor (Note B)............. -- -- -- (196,374) (118,483)
----------- ----------- ----------- ----------- --------
Net expenses................... 2,747,324 2,879,996 2,909,551 332,695 75,632
----------- ----------- ----------- ----------- --------
NET INVESTMENT INCOME (LOSS)........ (683,410) 1,610,113 430,345 (262,127) (29,144)
----------- ----------- ----------- ----------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS -- NOTE C:
Net realized gain (loss) on
investments.................... 10,093,654 21,677,713 29,349,170 (1,966,931) (204,911)
Net change in unrealized
appreciation (depreciation) on
investments.................... 16,397,007 (3,306,323) 9,049,299 (811,738) 314,679
----------- ----------- ----------- ----------- --------
Net realized and unrealized gain
(loss) on investments.......... 26,490,661 18,371,390 38,398,469 (2,778,669) 109,768
----------- ----------- ----------- ----------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS.................... $25,807,251 $19,981,503 $38,828,814 $(3,040,796) $ 80,624
----------- ----------- ----------- ----------- --------
----------- ----------- ----------- ----------- --------
</TABLE>
* The Technology Fund and the Strategic Growth Fund commenced operations on
November 18, 1999.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF OPERATIONS for the year ended October 31, 2000
(continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIXED
INTERNATIONAL DEVELOPING INCOME MUNICIPAL HIGH INCOME
EQUITY FUND MARKETS FUND FUND TRUST FUND FUND
------------- ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends........................... $ 1,032,613 $ 308,555 $ -- $ -- $ --
Interest............................ 91,880 21,903 9,072,869 1,288,196 1,470,540
----------- ----------- ---------- ---------- -----------
1,124,493 330,458 9,072,869 1,288,196 1,470,540
Less withholding tax on foreign
source dividends.................. (99,143) (25,433) -- -- --
----------- ----------- ---------- ---------- -----------
Total investment income........... 1,025,350 305,025 9,072,869 1,288,196 1,470,540
----------- ----------- ---------- ---------- -----------
EXPENSES:
Investment advisory fees (Note B)... 809,279 262,585 837,673 163,791 98,962
Distribution fees -- Class A (Note
B)................................ 136,766 44,887 109,539 72,659 27,736
Distribution fees -- Class B (Note
B)................................ 57,612 30,488 35,617 9,984 15,943
Distribution fees -- Class C (Note
B)................................ 217 18 2 2 95
Distribution fees -- Class R (Note
B)................................ 44 4 7 11 227
Transfer agent fees................. 60,000 66,000 57,000 54,000 57,500
Custodian fees...................... 91,000 96,000 93,000 51,000 52,000
Registration fees................... 51,000 37,000 62,000 28,000 46,500
Printing fees....................... 29,500 11,000 18,000 7,000 15,000
Legal fees.......................... 36,000 21,000 30,000 8,000 34,000
Auditing fees....................... 25,000 13,000 23,000 3,000 17,000
Trustees' fees (Note B)............. 11,000 11,000 15,000 5,000 10,000
Amortization of organization costs
(Note A).......................... 13,819 13,819 -- -- --
Miscellaneous....................... 25,390 19,902 50,346 2,824 13,415
----------- ----------- ---------- ---------- -----------
Total expenses.................... 1,346,627 626,703 1,331,184 405,271 388,378
Less expenses reimbursed by
advisor and/or subadvisor (Note
B).............................. -- (152,177) (188,370) (138,175) (224,209)
----------- ----------- ---------- ---------- -----------
Net expenses...................... 1,346,627 474,526 1,142,814 267,096 164,169
----------- ----------- ---------- ---------- -----------
NET INVESTMENT INCOME (LOSS)........... (321,277) (169,501) 7,930,055 1,021,100 1,306,371
----------- ----------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- NOTE C:
Net realized gain (loss) on
investments....................... 4,262,030 575,610 (2,206,386) (126,217) (404,247)
Net realized loss on foreign
currency transactions............. (101,544) (42,582) -- -- --
Net change in unrealized
appreciation (depreciation) on
investments....................... (5,167,193) (2,832,139) 1,474,288 417,728 (959,036)
Net change in unrealized
appreciation (depreciation) on
translation of foreign currency
denominated assets and
liabilities....................... (37,551) (28,008) -- -- --
----------- ----------- ---------- ---------- -----------
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions............. (1,044,258) (2,327,119) (732,098) 291,511 (1,363,283)
----------- ----------- ---------- ---------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................ $(1,365,535) $(2,496,620) $7,197,957 $1,312,611 $ (56,912)
----------- ----------- ---------- ---------- -----------
----------- ----------- ---------- ---------- -----------
</TABLE>
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE EQUITY FUND GROWTH AND INCOME FUND
--------------------------- ---------------------------
YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)................ $ (683,410) $ (407,517) $ 1,610,113 $ 1,038,244
Net realized gain on investments............ 10,093,654 13,398,533 21,677,713 7,532,501
Net change in unrealized appreciation on
investments............................... 16,397,007 23,871,282 (3,306,323) 18,898,886
------------ ------------ ------------ ------------
Increase in net assets from operations...... 25,807,251 36,862,298 19,981,503 27,469,631
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Investment income:
Class A................................... -- -- (855,863) (694,625)
Class B................................... -- -- -- (16,859)
Class C................................... -- -- (436) --
Class D................................... -- -- (343,579) (141,754)
Class R................................... -- -- (118) --
Realized gains on investments:
Class A................................... (10,289,314) (1,523,410) (5,060,415) (14,556,598)
Class B................................... (2,597,317) (279,678) (1,204,657) (3,003,060)
Class D................................... (475,552) -- (1,367,048) --
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders.............................. (13,362,183) (1,803,088) (8,832,116) (18,412,896)
------------ ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS -- (NET) Note D..... 52,877,730 23,723,233 (23,292,901) 57,190,869
------------ ------------ ------------ ------------
Total increase (decrease) in net assets..... 65,322,798 58,782,443 (12,143,514) 66,247,604
NET ASSETS:
Beginning of year........................... 173,299,208 114,516,765 263,508,184 197,260,580
------------ ------------ ------------ ------------
End of year (including undistributed net
investment income of $1,212,938 and
$802,821 for the Growth and Income Fund at
10/31/00 and 10/31/99, respectively)...... $238,622,006 $173,299,208 $251,364,670 $263,508,184
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
<S> <C> <C> <C>
<CAPTION>
TECHNOLOGY
SMALL COMPANY VALUE FUND FUND
--------------------------- ------------
YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00*
------------ ------------ ------------
OPERATIONS:
<S> <C> <C> <C>
Net investment income (loss)................ $ 430,345 $ 543,857 $ (262,127)
Net realized gain (loss) on investments..... 29,349,170 20,499,594 (1,966,931)
Net change in unrealized appreciation
(depreciation) on investments............. 9,049,299 (9,202,368) (811,738)
------------ ------------ ------------
Increase (decrease) in net assets from
operations................................ 38,828,814 11,841,083 (3,040,796)
------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Investment income:
Class A................................... (404,478) (852,298) --
Realized gains on investments:
Class A................................... (18,572,467) (168,838) --
Class B................................... (1,941,783) (16,223) --
------------ ------------ ------------
Total dividends and distributions to
shareholders.............................. (20,918,728) (1,037,359) --
------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS -- (NET) Note D..... (19,277,621) (63,511,227) 39,678,452
------------ ------------ ------------
Total increase (decrease) in net assets..... (1,367,535) (52,707,503) 36,637,656
NET ASSETS:
Beginning of year........................... 207,449,189 260,156,692 50,000
------------ ------------ ------------
End of year (including undistributed net
investment income of $375,783 and $349,206
for the Small Company Value Fund at
10/31/00 and 10/31/99, respectively)...... $206,081,654 $207,449,189 $ 36,687,656
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
* The Technology Fund commenced operations on November 18, 1999.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRATEGIC
GROWTH FUND INTERNATIONAL EQUITY FUND
----------- --------------------------
YEAR ENDED YEAR ENDED
10/31/00* 10/31/00 10/31/99
----------- ----------- ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment loss.......................... $ (29,144) $ (321,277) $ (267,097)
Net realized gain (loss) on investments and
foreign currency transactions.............. (204,911) 4,160,486 7,275,061
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency denominated assets and
liabilities................................ 314,679 (5,204,744) 3,065,685
----------- ----------- ------------
Increase (decrease) in net assets from
operations................................. 80,624 (1,365,535) 10,073,649
----------- ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Realized gains on investments:
Class A.................................... -- (6,041,311) (2,412,264)
Class B.................................... -- (724,739) (358,183)
Class D.................................... -- (266,755) --
----------- ----------- ------------
Total dividends and distributions to
shareholders............................... -- (7,032,805) (2,770,447)
----------- ----------- ------------
CAPITAL STOCK TRANSACTIONS -- (NET) Note D...... 8,628,862 16,175,904 (2,428,179)
----------- ----------- ------------
Total increase in net assets................. 8,709,486 7,777,564 4,875,023
NET ASSETS:
Beginning of year............................ 50,000 55,294,013 50,418,990
----------- ----------- ------------
End of year.................................. $8,759,486 $63,071,577 $ 55,294,013
----------- ----------- ------------
----------- ----------- ------------
<S> <C> <C> <C> <C>
<CAPTION>
DEVELOPING MARKETS FUND FIXED INCOME FUND
------------------------- ---------------------------
YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
----------- ----------- ------------ ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss)................. $ (169,501) $ 37,837 $ 7,930,055 $ 5,607,375
Net realized gain (loss) on investments and
foreign currency transactions.............. 533,028 (470,533) (2,206,386) (554,334)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency denominated assets and
liabilities................................ (2,860,147) 5,298,723 1,474,288 (5,249,092)
Contribution from subadvisor................. -- 460,289 -- --
----------- ----------- ------------ ------------
Increase (decrease) in net assets from
operations................................. (2,496,620) 5,326,316 7,197,957 (196,051)
----------- ----------- ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Investment income:
Class A.................................... -- (7,744) (2,046,705) (2,198,867)
Class B.................................... -- -- (166,263) (228,041)
Class C.................................... -- -- (7) --
Class D.................................... -- -- (5,716,910) (3,180,467)
Class R.................................... -- -- (170) --
Realized gains on investments:
Class A.................................... -- -- -- (477,719)
Class B.................................... -- -- -- (58,661)
Tax return of capital:
Class A.................................... -- (34,031) -- --
----------- ----------- ------------ ------------
Total dividends and distributions to
shareholders............................... -- (41,775) (7,930,055) (6,143,755)
----------- ----------- ------------ ------------
CAPITAL STOCK TRANSACTIONS -- (NET) Note D...... (672,912) (5,440,079) (29,521,688) 116,610,870
----------- ----------- ------------ ------------
Total increase (decrease) in net assets...... (3,169,532) (155,538) (30,253,786) 110,271,064
NET ASSETS:
Beginning of year............................ 18,707,639 18,863,177 163,954,456 53,683,392
----------- ----------- ------------ ------------
End of year.................................. $15,538,107 $18,707,639 $133,700,670 $163,954,456
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
</TABLE>
* The Strategic Growth Fund commenced operations on November 18, 1999.
See notes to financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND HIGH INCOME FUND
-------------------------- -------------------------
YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99*
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................... $ 1,021,100 $ 1,429,752 $ 1,306,371 $ 547,160
Net realized gain (loss) on investments.................. (126,217) 216,865 (404,247) 88,352
Net change in unrealized appreciation (depreciation) on
investments............................................ 417,728 (1,926,952) (959,036) (559,668)
----------- ------------ ----------- -----------
Increase (decrease) in net assets from operations........ 1,312,611 (280,335) (56,912) 75,844
----------- ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A................................................ (988,865) (1,389,791) (1,038,792) (481,082)
Class B................................................ (32,042) (39,961) (137,149) (40,859)
Class C................................................ (5) -- (728) --
Class D................................................ -- -- (130,131) (25,219)
Class R................................................ (187) -- (7,647) --
Realized gains on investments:
Class A................................................ (218,980) -- (73,884) --
Class B................................................ (7,797) -- (11,116) --
Class D................................................ -- -- (6,589) --
----------- ------------ ----------- -----------
Total dividends and distributions to shareholders........ (1,247,876) (1,429,752) (1,406,036) (547,160)
----------- ------------ ----------- -----------
CAPITAL STOCK TRANSACTIONS -- (NET) Note D.................. (7,346,894) (13,070,060) 2,346,807 13,332,046
----------- ------------ ----------- -----------
Total increase (decrease) in net assets.................. (7,282,159) (14,780,147) 883,859 12,860,730
NET ASSETS:
Beginning of year........................................ 30,955,827 45,735,974 12,860,730 --
----------- ------------ ----------- -----------
End of year.............................................. $23,673,668 $ 30,955,827 $13,744,589 $12,860,730
----------- ------------ ----------- -----------
----------- ------------ ----------- -----------
</TABLE>
* The High Income Fund commenced operations on March 8, 1999.
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS October 31, 2000
--------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. DLJ Mutual Funds (the 'DLJ Funds' or
'Funds') consists of three trusts, DLJ Focus Funds (the 'Focus Funds'),
organized as a Massachusetts business trust on November 26, 1985, DLJ
Opportunity Funds (the 'Opportunity Funds') and DLJ Select Funds (the 'Select
Funds'), each a Delaware business trust organized under the laws of Delaware on
May 31, 1995 and August 3, 1999, respectively. Each Trust consists of separate
portfolios (the 'Portfolios') and constitute a diversified, open-end investment
company registered under the Investment Company Act of 1940, as amended ('Act').
On July 28, 2000, the Funds' Board of Trustees approved, effective August 1,
2000, a change of the Funds' name from 'DLJ Winthrop' to 'DLJ.' The Focus Funds
consist of DLJ Core Equity Fund, DLJ Growth and Income Fund, DLJ Small Company
Value Fund, DLJ Fixed Income Fund, and DLJ Municipal Trust Fund. The Opportunity
Funds consist of DLJ International Equity Fund, DLJ Developing Markets Fund, DLJ
Municipal Money Fund, DLJ U.S. Government Money Fund and DLJ High Income Fund.
The Municipal Money Fund and the U.S. Government Money Fund are included in a
separate report. The Select Funds consist of DLJ Technology Fund and DLJ
Strategic Growth Fund. Prior to the commencement of operations on November 18,
1999, the Select Funds had no operations other than the sale and issuance to
each of DLJ Asset Management Group and DLJdirect Inc. of 2,500 shares of
beneficial interest at $10.00 per share of each of the Technology Fund and the
Strategic Growth Fund. Effective August 1, 2000, the then existing shares of the
Select Funds were redesignated as Class R shares and the Select Funds commenced
offering additional classes of shares.
The investment objective of the Core Equity Fund and the Growth and Income Fund
is long-term capital appreciation. The Growth and Income Fund also seeks
continuity of income. The Strategic Growth Fund seeks long-term growth of
capital by investing in equity securities of a limited number of large,
carefully selected companies that the Advisor believes will achieve superior
growth. The investment objective of the Technology Fund is growth of capital
which the Fund seeks to achieve by investing in a broad number of industries
that comprise the U.S. domestic technology sector. The investment objective of
the Small Company Value Fund is a high level of growth of capital. The Fixed
Income Fund aims to provide as high a level of total return as is consistent
with capital preservation by investing principally in debt securities,
including, without limitation, convertible and nonconvertible debt securities of
foreign and domestic companies, including both well-known and established and
new and lesser-known companies. The Municipal Trust Fund's investment objective
is to provide as high a level of total return as is consistent with capital
preservation by investing principally in high-grade tax-exempt municipal
securities. The investment objective of the International Equity Fund is to seek
long-term growth of capital by investing primarily in common stocks and other
equity securities from established markets outside the United States. The
Developing Markets Fund seeks
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
long-term growth of capital by investing primarily in common stocks and other
equity securities from developing countries. The High Income Fund's primary
investment objective is to provide a high level of current income and its
secondary objective is capital appreciation.
Each portfolio offers Class A, Class B, Class C and Class R shares. In addition,
Core Equity Fund, Growth and Income Fund, Fixed Income Fund, International
Equity Fund, High Income Fund and Technology Fund offer Class D shares
exclusively to employees of Credit Suisse First Boston and its subsidiaries who
are eligible to participate in the Credit Suisse First Boston Employee's Savings
and Profit Sharing Plan. Class A shares of Core Equity Fund, Growth and Income
Fund, Small Company Value Fund, International Equity Fund, Developing Markets
Fund, Technology Fund and Strategic Growth Fund are sold with a front-end sales
charge of up to 5.75%. Class A shares of Fixed Income Fund, Municipal Trust Fund
and High Income Fund are sold with a front-end sales charge of up to 4.75%.
Class B shares are sold with a contingent deferred sales charge which declines
from 4% to zero depending on the period of time the shares are held. Class C
shares are sold with a contingent deferred sales charge of 1% if redeemed within
the first year of purchase. Class R shares are available for purchase at net
asset value by eligible institutions on behalf of their clients. Each class is
identical in all respects except that Class A and Class R shares bear similar
distribution service fees which are different than Class B and Class C shares;
and Class D shares are not subject to any distribution service fees. Class A,
Class B, Class C and Class R shares have exclusive voting rights with respect to
each class's distribution plan. Each class has different exchange privileges and
only Class B shares have a conversion feature.
The Funds account separately for the assets, liabilities and operations of each
Portfolio. Expenses directly attributable to each Portfolio are charged to that
Portfolio's operations; expenses which are applicable to all Portfolios are
allocated among them on a pro rata basis. The Funds' financial statements are
prepared in accordance with accounting principles generally accepted in the
United States which may require the use of management estimates and assumptions.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the DLJ Funds.
(1) SECURITY VALUATION: Securities and options traded on national exchanges
and over-the-counter securities listed in the NASDAQ National Market System
are valued at the last reported sales price at the close of the New York Stock
Exchange. Securities for which there have been no sales on such day are valued
at the mean of the current bid and asked prices. Over-the-counter securities
not listed on the NASDAQ National Market System are valued at the mean of the
current bid and asked prices. Fixed-income securities, except short-term
securities, may be valued on the basis of prices provided by a pricing service
when such prices are believed by the Advisor to reflect the fair market value
of such securities. The prices provided by a pricing service are determined
without regard to bid or last sale prices but take into account institutional
size, trading in similar groups of securities and any developments related to
the specific securities. Short-term investments, those with a remaining
maturity of 60 days or less, are valued at amortized cost, which approximates
market value.
(2) REPURCHASE AGREEMENTS: The Funds may enter into repurchase agreements with
financial institutions, deemed to be creditworthy by the Funds' Advisor,
subject to the seller's agreement to repurchase and the Funds' agreement to
resell such securities at a mutually agreed-upon price. Securities purchased
subject to repurchase agreements are deposited with the Funds' custodian and,
pursuant to the terms of the repurchase agreement, must have an aggregate
market value greater than or equal to the repurchase price plus accrued
interest at all times. If the value of the underlying securities falls below
the value of the repurchase price plus accrued interest, the Funds will
require the seller to deposit additional collateral by the next business day.
If the request for additional collateral is not met, or the seller defaults on
its repurchase obligation, the Funds maintain the right to sell the underlying
securities at market value and may claim any resulting loss against the
seller.
(3) FOREIGN CURRENCY TRANSACTIONS: Investment securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
at the bid prices of such currencies against the U.S. dollar as of the date of
valuation. Purchases and sales of portfolio securities, commitments under
forward foreign currency contracts, income receipts and expense accruals are
translated at the prevailing exchange rate on the date of each transaction.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments. Reported net realized gain (loss) on foreign currency
transactions arises from sales and maturities of short-term securities, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
fund's books and the U.S. dollar equivalent of the amounts actually received
or paid. Net change in unrealized appreciation on translation of foreign
currency denominated assets and liabilities arises from changes in the value
of assets and liabilities other than investments in securities at fiscal year
end, resulting from changes in exchange rates.
(4) FEDERAL INCOME TAXES: The Funds intend to be treated as 'regulated
investment companies' under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable income. Accordingly, no
provisions for Federal income taxes have been made in the accompanying
financial statements.
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
The Fixed Income Fund, Municipal Trust Fund, Developing Markets Fund,
Strategic Growth Fund and Technology Fund each have unused capital loss
carryovers available for Federal income tax purposes to be applied against
future net securities profits, if any, realized subsequent to October 31,
2000. The approximate amounts and the fiscal year upon which the carryovers
will be terminated are as follows:
<TABLE>
<CAPTION>
FIXED MUNICIPAL HIGH TECHNOLOGY STRATEGIC DEVELOPING
INCOME FUND TRUST FUND INCOME FUND FUND GROWTH FUND MARKETS FUND
----------- ---------- ----------- ---- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Capital Loss Carryovers
Total:........................ $2,636,000 $126,000 $404,000 $1,948,000 $188,000 $3,942,000
---------- -------- -------- ---------- -------- ----------
---------- -------- -------- ---------- -------- ----------
Expires in: Fiscal 2008....... $2,094,000 $126,000 $404,000 $1,948,000 $188,000 $ --
Fiscal 2007........... 542,000 -- -- -- -- 771,000
Fiscal 2006........... -- -- -- -- -- 587,000
Fiscal 2005........... -- -- -- -- -- 2,584,000
</TABLE>
(5) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is recorded
on the ex-dividend date or as soon as the Fund is informed of the dividend.
Interest income is accrued daily. Security transactions are accounted for on
the date securities are purchased or sold. Security gains and losses are
determined on the identified cost basis. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
In November 2000, the American Institute of Certified Public Accountants
(AICPA) issued a revised version of the AICPA Audit and Accounting Guide for
Investment Companies (the 'Guide'). The revised version of the Guide is
effective for annual financial statements beginning after December 15, 2000
and will require investment companies to amortize premiums and discounts on
fixed income securities. Currently, the Municipal Trust Fund does not amortize
discounts and the High Income Fund does not amortize premiums. Upon adoption,
the Funds will be required to record a cumulative effect adjustment to reflect
the amortization. The adjustment will result in a reclassification between net
investment income and unrealized appreciation/(depreciation) and, therefore,
will not impact total net assets. At this time, the Funds have not completed
their analysis of the impact of this accounting change.
(6) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date.
(7) DEFERRED ORGANIZATION COSTS: Costs incurred in connection with the
International Equity Fund's and the Developing Markets Fund's organization are
being amortized on a straight-line basis over five years commencing with the
Fund's operation.
(8) CONCENTRATION OF RISK: At October 31, 2000, the Municipal Trust Fund had
approximately 36% of its net assets invested in municipal obligations of
Texas. Economic changes affecting the state and certain of its public bodies
and municipalities may affect the ability of issuers within the state to pay
interest on, or repay principal of, municipal obligations of the Fund.
The High Income Fund invests in fixed income securities rated below
investment-grade quality or unrated fixed income securities deemed to be of
comparable quality. Lower grade fixed income securities are commonly known
as 'junk bonds' and are subject to special risks, including greater price
volatility and a greater risk of loss of principal and non-payment of
interest.
The Technology Fund concentrates its investments in companies that rely
significantly on technological events or advances in their product
development, production or operations. Market or economic factors impacting
these companies could have a major effect on the value of the Fund's
investments. The value of stocks of these companies is particularly vulnerable
to rapid changes in technological product cycles, government regulation and
competition.
The International Equity Fund and Developing Markets Fund each invest
substantially all of their net assets in foreign securities. Foreign
securities are generally more volatile and less liquid than U.S. securities,
in part because of greater political and economic risks, less public
information available about foreign companies and differing degrees of
regulation and differing reporting, accounting and auditing standards. In
addition, the Developing Markets Fund is subject to the risks of investing in
developing or emerging markets.
(9) RECLASSIFICATION OF COMPONENTS OF NET ASSETS: At October 31, 2000, the
following reclassifications were recorded to reflect permanent book to tax
differences. These reclassifications had no effect on net assets or net asset
value per share.
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UNDISTRIBUTED ACCUMULATED
NET NET REALIZED GAIN
CAPITAL INVESTMENT (LOSS) ON
FUND PAID-IN INCOME INVESTMENTS
---- ------- ------ -----------
<S> <C> <C> <C>
Core Equity Fund................................... (683,410) 683,410 --
Growth and Income Fund............................. 20,275 -- (20,275)
Small Company Value Fund........................... -- 710 710
Strategic Growth Fund.............................. (29,144) 29,144 --
Technology Fund.................................... (262,127) 262,127 --
International Equity Fund.......................... -- 321,277 (321,277)
Developing Markets Fund............................ (211,471) 168,889 42,582
Fixed Income Fund.................................. (72,067) 48,592 23,475
Municipal Trust Fund............................... -- (2,492) 2,492
High Income Fund................................... (11,313) 8,076 3,237
</TABLE>
NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: Donaldson, Lufkin &
Jenrette, Inc. ('DLJ') was acquired by Credit Suisse Group ('Credit Suisse') on
November 3, 2000 (the 'Acquisition'). Prior to the Acquisition, DLJ Asset
Management Group ('DLJAM'), a wholly-owned subsidiary of Donaldson, Lufkin &
Jenrette Securities Corporation ('DLJSC'), a wholly-owned subsidiary of DLJ,
served as advisor to the Funds. Credit Suisse combined the investment advisory
business of DLJAM with its existing U.S. asset management business, Credit
Suisse Asset Management, LLC ('CSAM'). Accordingly, CSAM presently acts as the
investment advisor to the Funds (the 'Advisor'). In anticipation of the
Acquisition, at a meeting held on October 26, 2000, the Board of Trustees of the
Funds approved an interim investment advisory agreement (the 'Interim Advisory
Agreement') with CSAM on behalf of the Funds. The Interim Advisory Agreement
will terminate, upon the earlier of 150 days from November 3, 2000 which is
April 2, 2001 or the date of approval by the shareholders of a new investment
advisory agreement. Under the Interim Advisory Agreement with the Funds, the
Advisor will provide investment advisory services and order placement facilities
for the DLJ Funds and pay all compensation of Trustees of the DLJ Funds who are
affiliated persons of the Advisor. The Advisor or its affiliates will also
furnish the DLJ Funds, without charge, management supervision and assistance and
office facilities. As required by rule 15a-4(vi) of the 1940 Act, the Interim
Advisory Agreement provides that fees earned by the Advisor with respect to each
Fund will be deposited into an interest-bearing escrow account with Citibank,
N.A., the Funds' Custodian, and will only be paid to CSAM if a majority of the
shareholders of such Fund approves a New Investment Advisory Agreement for that
Fund. If shareholders of a DLJ Fund do not approve a New Investment Advisory
Agreement, CSAM will receive as compensation or reimbursement in respect of such
Fund the lesser of: (i) the fee under such Interim Advisory Agreement (the
'Advisory Fee'); or (ii) the costs of providing services during the term of such
Interim Advisory Agreement (plus, in each case, interest earned on that amount
while in escrow). The advisory fees paid by the Funds for the fiscal year ended
October 31, 2000 were based on the following annual percentage rates of the
average daily net assets of each Fund: Core Equity Fund, .750 of 1% of the first
$100,000,000, .500 of 1% of the balance; Growth and Income Fund, .750 of 1% of
the first $75,000,000, .500 of 1% of the balance; Small Company Value Fund, .875
of 1% of the first $100,000,000, .750 of 1% of the next $100,000,000 and .625 of
1% of net assets in excess of $200,000,000; Fixed Income Fund, .625 of 1% of the
first $100,000,000, .500 of 1% of the balance; Municipal Trust Fund, .625 of 1%
of the first $100,000,000, .500 of 1% of the balance; Technology Fund, .875 of
1% of the first $500,000,000, .750 of 1% of the next $500,000,000 and .625 of 1%
of the balance; Strategic Growth Fund, .750 of 1% of the first $500,000,000 and
.625 of 1% of the balance; International Equity Fund and Developing Markets
Fund, 1.25% of the first $100,000,000, 1.15% of the next $100,000,000 and 1% of
the balance; and High Income Fund, .70 of 1% of the first $500,000,000 and .625
of 1% of the balance. Such fees are accrued daily. Effective November 1, 2000,
the Advisory Fee for the International Equity Fund was reduced to 1.00% of the
average daily net assets.
Through October 31, 2000, the Advisor had retained AXA Investment Managers GM
Ltd. ('AXA') as subadvisor to the International Equity Fund and the Developing
Markets Fund. The Advisor paid AXA for its services, out of the Advisor's own
resources, at the following annual percentage rates of the average daily net
assets of each of the International Equity Fund and Developing Markets Fund:
.625 of 1% of each Portfolio's first $100,000,000, .575 of 1% of the next
$100,000,000 and .50 of 1% of the balance. Effective November 1, 2000, upon the
termination of AXA as subadviser of the Developing Markets Fund and
International Equity Fund (the 'International Funds'), the Adviser became solely
responsible for investment management of the International Funds. The investment
objective of each Fund has remained unchanged.
Through October 31, 2001, the Advisor has agreed to contractual expense
limitations to reduce its management fees and reimburse operating expenses by
the amount that total fund operating expenses exceed the percentage of the
average daily net assets of each share class of each Fund referenced below:
<TABLE>
<CAPTION>
TECHNOLOGY STRATEGIC INTERNATIONAL DEVELOPING FIXED INCOME MUNICIPAL HIGH INCOME
FUND GROWTH FUND EQUITY FUND MARKETS FUND FUND TRUST FUND FUND
---- ----------- ----------- ------------ ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Class A................... 1.39% 1.19% 2.15% 2.15% 0.95% 0.95% 1.10%
Class B................... 2.14 1.94 2.90 2.90 1.70 1.70 1.85
Class C................... 2.14 1.94 2.90 2.90 1.70 1.70 1.85
Class D................... 1.14 N/A 1.90 N/A 0.70 N/A 0.85
Class R................... 1.39 1.19 2.15 2.15 0.95 0.95 1.10
</TABLE>
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
After October 31, 2001, the Advisor may, in its sole discretion, determine to
discontinue this practice with respect to all or any of such Funds. As a result
of the assumption of expenses, the Advisor reimbursed the Technology Fund,
Strategic Growth Fund, Fixed Income Fund, Municipal Trust Fund and High Income
Fund $196,374, $118,483, $188,370, $138,175, and $224,209, respectively, during
the year ended October 31, 2000. The Advisor and AXA waived fees amounting to
$152,177 for the Developing Markets Fund during the year ended October 31, 2000.
Pursuant to Rule 12b-1 under the Act, the DLJ Funds have entered into a
Distribution Services Agreement (the 'Agreement') with Donaldson, Lufkin &
Jenrette Securities Corporation, the Funds' Distributor. Effective as of August
1, 2000, the annual distribution service fee for Class A shares of each Focus
Fund portfolio was reduced from .30 of 1.00% to .25 of 1.00%. Accordingly, under
the Agreement, each Fund portfolio will pay a distribution services fee to the
Distributor at an annual rate of .25 of 1% of the average daily net assets
attributable to Class A and Class R shares and 1% of the average daily net
assets attributable to Class B and Class C shares. Under the Agreement, each
Focus Fund and Select Fund portfolio is obligated to pay distribution and/or
service fees to the Distributor as compensation for its distribution and service
activities ('Compensation Agreement') not as reimbursement for specific expenses
incurred. If the Distributor's expenses exceed its distribution and service
fees, such Funds will not be obligated to pay additional expenses. If the
Distributor's expenses are less than such distribution and service fees, it will
retain its full fees and realize a profit. Under the Agreement with the
Opportunity Fund portfolios, amounts paid are used in their entirety to
reimburse the Distributor for actual expenses incurred for distribution
assistance and promotional activities ('Reimbursement Agreement'). In addition,
the Agreement provides that the Advisor may use its own resources including fees
from investment companies (including the DLJ Funds) to finance the distribution
of DLJ Funds' shares. Prior to August 1, 2000, the Select Funds had a
Shareholder Servicing Plan that permitted each Fund to pay banks, broker-dealers
or other financial institutions for shareholder support services they provide at
a rate of up to .25 of 1% of the average daily net assets of each Fund. This fee
was discontinued at the time the Funds adopted a multiclass structure.
Effective May 16, 2000, each Focus Fund Trustee who is not an affiliated person
as defined in the Act will be paid a fee of $2,500 for each board meeting
attended, a $500 fee for each special meeting attended, a $250 fee for each
audit committee meeting and an annual retainer of $500. Each Opportunity Fund
Trustee who is not an affiliated person as defined in the Act will be paid a fee
of $1,500 for each board meeting attended, a $500 fee for each special meeting
attended, a $250 fee for each audit committee meeting and an annual retainer of
$500. Each Select Fund Trustee who is not an affiliated person as defined in the
Act will be paid a $500 fee for each board meeting attended, a $500 fee for each
special meeting attended, a $250 fee for each audit committee meeting and an
annual retainer fee of $500. Prior to May 16, 2000, each Focus Fund Trustee who
is not an affiliated person as defined in the Act received an attendance fee of
$2,000 per meeting and $500 per audit committee meeting and an annual retainer
of $2,000. Each Opportunity Fund Trustee who is not an affiliated person as
defined in the Act received attendance fees of $2,000 per meeting and $1,000 per
audit committee meeting. Each Select Fund Trustee who is not an affiliated
person as defined in the Act received attendance fees of $1,000 per meeting and
$500 per audit committee meeting. Trustees' fees are charged to all series of
the appropriate Trust and are allocated on a pro rata basis.
During the year ended October 31, 1999, the Subadvisor reimbursed the Developing
Markets Fund $460,289 for realized and unrealized losses on certain security
transactions.
NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of
securities owned at October 31, 2000 was substantially the same as the cost of
securities for financial statement purposes. At October 31, 2000, the components
of the net unrealized appreciation (depreciation) on investments were as
follows:
<TABLE>
<CAPTION>
GROWTH AND SMALL STRATEGIC DEVELOPING
CORE EQUITY INCOME COMPANY TECHNOLOGY GROWTH INTERNATIONAL MARKETS
FUND FUND VALUE FUND FUND FUND EQUITY FUND FUND
---- ---- ---------- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross appreciation
(investments having
an excess of value
over cost).......... $87,651,487 $81,116,921 $62,350,828 $ 5,504,219 $1,137,352 $ 5,086,151 $ 1,812,792
Gross depreciation
(investments having
an excess of cost
over value)......... (2,365,489) (864,280) (1,261,856) (6,315,957) (822,673) (10,173,843) (3,910,192)
----------- ----------- ----------- ----------- ---------- ------------ -----------
Net unrealized
appreciation
(depreciation) of
investments......... $85,285,998 $80,252,641 $61,088,972 $ (811,738) $ 314,679 $ (5,087,692) $(2,097,400)
----------- ----------- ----------- ----------- ---------- ------------ -----------
----------- ----------- ----------- ----------- ---------- ------------ -----------
<CAPTION>
FIXED MUNICIPAL HIGH
INCOME TRUST INCOME
FUND FUND FUND
---- ---- ----
<S> <C> <C> <C>
Gross appreciation
(investments having
an excess of value
over cost).......... $ 269,412 $411,784 $ 156,136
Gross depreciation
(investments having
an excess of cost
over value)......... (2,265,357) (72,221) (1,674,840)
----------- -------- -----------
Net unrealized
appreciation
(depreciation) of
investments......... $(1,995,945) $339,563 $(1,518,704)
----------- -------- -----------
----------- -------- -----------
</TABLE>
For the year ended October 31, 2000, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
SMALL STRATEGIC DEVELOPING
CORE EQUITY GROWTH AND COMPANY TECHNOLOGY GROWTH INTERNATIONAL MARKETS
FUND INCOME FUND VALUE FUND FUND FUND EQUITY FUND FUND
---- ----------- ---------- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases............ $97,857,211 $138,472,742 $ 83,168,818 $42,083,114 $9,883,322 $34,417,375 $23,309,285
Sales................ 55,136,716 169,484,105 119,922,879 3,516,394 1,385,545 28,018,238 23,550,084
<CAPTION>
HIGH
FIXED INCOME MUNICIPAL INCOME
FUND TRUST FUND FUND
---- ---------- ----
<S> <C> <C> <C>
Purchases............ $115,012,501 $ 4,613,355 $6,910,875
Sales................ 151,481,210 11,971,729 5,647,900
</TABLE>
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.01 par value for the Focus Funds; $0.001 for the Opportunity Funds and
Select Funds) authorized. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
CLASS A* CLASS B* CLASS C*'D'
-------- -------- ----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
CORE EQUITY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold.................... 1,110,169 $ 24,346,169 835,369 $17,925,689 203,183 $4,500,995
Shares issued through
reinvestment of dividends and
distributions................. 444,968 9,019,526 126,449 2,494,838 -- --
----------- ------------ ---------- ----------- ------- ----------
1,555,137 33,365,695 961,818 20,420,527 203,183 4,500,995
----------- ------------ ---------- ----------- ------- ----------
Shares redeemed................ (838,237) (18,427,363) (236,791) (5,072,241) (703) (15,544)
----------- ------------ ---------- ----------- ------- ----------
Net increase................... 716,900 $ 14,938,332 725,027 $15,348,286 202,480 $4,485,451
----------- ------------ ---------- ----------- ------- ----------
----------- ------------ ---------- ----------- ------- ----------
YEAR ENDED OCTOBER 31, 1999
Shares sold.................... 1,065,641 $ 20,539,658 667,503 $12,806,960
Shares issued through
reinvestment of dividends and
distributions................. 79,584 1,318,711 16,719 272,358
----------- ------------ ---------- -----------
1,145,225 21,858,369 684,222 13,079,318
----------- ------------ ---------- -----------
Shares redeemed................ (640,696) (12,397,268) (177,148) (3,396,569)
----------- ------------ ---------- -----------
Net increase................... 504,529 $ 9,461,101 507,074 $ 9,682,749
----------- ------------ ---------- -----------
----------- ------------ ---------- -----------
GROWTH AND INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold.................... 586,384 $ 13,390,153 309,030 $ 5,937,239 20,313 $ 471,254
Shares issued through
reinvestment of dividends and
distributions................. 213,248 4,986,997 50,221 1,168,147 18 436
----------- ------------ ---------- ----------- ------- ----------
799,632 18,377,150 359,251 7,105,386 20,331 471,690
----------- ------------ ---------- ----------- ------- ----------
Shares redeemed................ (1,601,084) (36,923,636) (434,467) (8,818,730) -- --
----------- ------------ ---------- ----------- ------- ----------
Net increase (decrease)........ (801,452) $(18,546,486) (75,216) $(1,713,344) 20,331 $ 471,690
----------- ------------ ---------- ----------- ------- ----------
----------- ------------ ---------- ----------- ------- ----------
YEAR ENDED OCTOBER 31, 1999
Shares sold.................... 678,846 $ 15,276,701 397,678 $ 9,035,772
Shares issued through
reinvestment of dividends and
distributions................. 614,712 12,914,181 139,759 2,921,650
----------- ------------ ---------- -----------
1,293,558 28,190,882 537,437 11,957,422
----------- ------------ ---------- -----------
Shares redeemed................ (1,133,237) (25,802,845) (254,577) (5,820,349)
----------- ------------ ---------- -----------
Net increase................... 160,321 $ 2,388,037 282,860 $ 6,137,073
----------- ------------ ---------- -----------
----------- ------------ ---------- -----------
<CAPTION>
CLASS D'D'D' CLASS R'D'D'D'
------------ --------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
CORE EQUITY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold.................... 1,002,764 $21,958,459 45,018 $1,025,450
Shares issued through
reinvestment of dividends and
distributions................. 23,461 475,552 -- --
----------- ----------- ------- ----------
1,026,225 22,434,011 45,018 1,025,450
----------- ----------- ------- ----------
Shares redeemed................ (234,930) (5,341,036) (586) (12,764)
----------- ----------- ------- ----------
Net increase................... 791,295 $17,092,975 44,432 $1,012,686
----------- ----------- ------- ----------
----------- ----------- ------- ----------
YEAR ENDED OCTOBER 31, 1999
Shares sold.................... 231,750 $ 4,666,053
Shares issued through
reinvestment of dividends and
distributions................. -- --
----------- -----------
231,750 4,666,053
----------- -----------
Shares redeemed................ (4,222) (86,670)
----------- -----------
Net increase................... 227,528 $ 4,579,383
----------- -----------
----------- -----------
GROWTH AND INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold.................... 190,523 $ 4,416,217 5,481 $ 129,310
Shares issued through
reinvestment of dividends and
distributions................. 73,095 1,710,627 -- --
----------- ----------- ------- ----------
263,618 6,126,844 5,481 129,310
----------- ----------- ------- ----------
Shares redeemed................ (417,169) (9,723,691) (1,587) (37,224)
----------- ----------- ------- ----------
Net increase (decrease)........ (153,551) $(3,596,847) 3,894 $ 92,086
----------- ----------- ------- ----------
----------- ----------- ------- ----------
YEAR ENDED OCTOBER 31, 1999
Shares sold.................... 2,283,021 $54,169,244
Shares issued through
reinvestment of dividends and
distributions................. 6,193 141,754
----------- -----------
2,289,214 54,310,998
----------- -----------
Shares redeemed................ (240,048) (5,645,239)
----------- -----------
Net increase................... 2,049,166 $48,665,759
----------- -----------
----------- -----------
</TABLE>
-----------------------
* The Technology Fund and the Strategic Growth Fund commenced offering
Class A, Class B and Class C shares on August 1, 2000.
'D' The Core Equity Fund, the Growth and Income Fund and the Small Company
Value Fund commenced offering Class C shares on February 28, 2000.
'D'D' The Core Equity Fund commenced offering Class D shares on May 13, 1999.
The Growth and Income Fund commenced offering Class D shares on
April 30, 1999. The Technology Fund commenced offering Class D shares
on September 1, 2000.
'D'D'D' The Core Equity Fund, the Growth and Income Fund and the Small Company
Value Fund commenced offering Class R shares on August 1, 2000. The
Technology Fund and the Strategic Growth Fund commenced offering Class R
shares on November 18, 1999.
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A* CLASS B* CLASS C*'D'
-------- -------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
SMALL COMPANY VALUE FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 220,007 $ 4,504,981 57,246 $ 1,113,353 10,020 $214,880
Shares issued through reinvestment of
dividends and distributions.......... 911,259 17,657,103 99,388 1,884,400 -- --
---------- ------------ -------- ----------- ------ --------
1,131,266 22,162,084 156,634 2,997,753 10,020 214,880
---------- ------------ -------- ----------- ------ --------
Shares redeemed....................... (1,939,527) (38,421,201) (327,158) (6,333,402) -- --
---------- ------------ -------- ----------- ------ --------
Net increase (decrease)............... (808,261) $(16,259,117) (170,524) $(3,335,649) 10,020 $214,880
---------- ------------ -------- ----------- ------ --------
---------- ------------ -------- ----------- ------ --------
YEAR ENDED OCTOBER 31, 1999
Shares sold........................... 531,219 $ 10,797,131 164,059 $ 3,282,346
Shares issued through reinvestment of
dividends and distributions.......... 46,275 936,650 790 15,587
---------- ------------ -------- -----------
577,494 11,733,781 164,849 3,297,933
---------- ------------ -------- -----------
Shares redeemed....................... (3,582,104) (71,324,894) (366,848) (7,218,047)
---------- ------------ -------- -----------
Net decrease.......................... (3,004,610) $(59,591,113) (201,999) $(3,920,114)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
TECHNOLOGY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 229,719 $ 3,336,439 99,751 $ 1,408,302 37,523 $526,634
Shares redeemed....................... (1,956) (24,958) (108) (1,500) -- --
---------- ------------ -------- ----------- ------ --------
Net increase.......................... 227,763 $ 3,311,481 99,643 $ 1,406,802 37,523 $526,634
---------- ------------ -------- ----------- ------ --------
---------- ------------ -------- ----------- ------ --------
STRATEGIC GROWTH FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 9,097 $ 100,773 33,000 $ 374,735 3,504 $ 41,785
Shares redeemed....................... -- -- (136) (1,535) -- --
---------- ------------ -------- ----------- ------ --------
Net increase.......................... 9,097 $ 100,773 32,864 $ 373,200 3,504 $ 41,785
---------- ------------ -------- ----------- ------ --------
---------- ------------ -------- ----------- ------ --------
INTERNATIONAL EQUITY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 6,796,992 $ 88,597,638 101,412 $ 1,330,439 12,162 $151,084
Shares issued through reinvestment of
dividends and distributions.......... 472,799 5,990,357 57,330 704,010 -- --
---------- ------------ -------- ----------- ------ --------
7,269,791 94,587,995 158,742 2,034,449 12,162 151,084
---------- ------------ -------- ----------- ------ --------
Shares redeemed....................... (6,314,145) (82,923,347) (124,475) (1,616,495) -- --
---------- ------------ -------- ----------- ------ --------
Net increase.......................... 955,646 $ 11,664,648 34,267 $ 417,954 12,162 $151,084
---------- ------------ -------- ----------- ------ --------
---------- ------------ -------- ----------- ------ --------
YEAR ENDED OCTOBER 31, 1999
Shares sold........................... 860,513 $ 11,381,549 68,854 $ 881,626
Shares issued through reinvestment of
dividends and distributions.......... 208,666 2,393,398 31,390 352,824
---------- ------------ -------- -----------
1,069,179 13,774,947 100,244 1,234,450
---------- ------------ -------- -----------
Shares redeemed....................... (1,256,969) (16,356,572) (206,542) (2,568,893)
---------- ------------ -------- -----------
Net increase (decrease)............... (187,790) $ (2,581,625) (106,298) $(1,334,443)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
<CAPTION>
CLASS D'D'D' CLASS R'D'D'D'
------------ --------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
SMALL COMPANY VALUE FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 5,709 $ 124,927
Shares issued through reinvestment of
dividends and distributions.......... -- --
---------- ------------
5,709 124,927
---------- ------------
Shares redeemed....................... (1,051) (22,662)
---------- ------------
Net increase (decrease)............... 4,658 $ 102,265
---------- ------------
---------- ------------
YEAR ENDED OCTOBER 31, 1999
Shares sold...........................
Shares issued through reinvestment of
dividends and distributions..........
Shares redeemed.......................
Net decrease..........................
TECHNOLOGY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 301,181 $4,272,189 3,245,020 $ 44,571,558
Shares redeemed....................... (43,594) (573,272) (1,003,373) (13,836,940)
-------- ---------- ---------- ------------
Net increase.......................... 257,587 $3,698,917 2,241,647 $ 30,734,618
-------- ---------- ---------- ------------
-------- ---------- ---------- ------------
STRATEGIC GROWTH FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 1,032,690 $ 11,279,363
Shares redeemed....................... (282,434) (3,166,259)
---------- ------------
Net increase.......................... 750,256 $ 8,113,104
---------- ------------
---------- ------------
INTERNATIONAL EQUITY FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold........................... 447,723 $6,062,902 13,473 $ 169,837
Shares issued through reinvestment of
dividends and distributions.......... 21,021 266,755 -- --
-------- ---------- ---------- ------------
468,744 6,329,657 13,473 169,837
-------- ---------- ---------- ------------
Shares redeemed....................... (190,108) (2,533,295) (2,037) (23,981)
-------- ---------- ---------- ------------
Net increase.......................... 278,636 $3,796,362 11,436 $ 145,856
-------- ---------- ---------- ------------
-------- ---------- ---------- ------------
YEAR ENDED OCTOBER 31, 1999
Shares sold........................... 122,267 $1,606,921
Shares issued through reinvestment of
dividends and distributions.......... -- --
-------- ----------
122,267 1,606,921
-------- ----------
Shares redeemed....................... (9,114) (119,032)
-------- ----------
Net increase (decrease)............... 113,153 $1,487,889
-------- ----------
-------- ----------
</TABLE>
-----------------------
* The Technology Fund and the Strategic Growth Fund commenced offering
Class A, Class B and Class C shares on August 1, 2000.
'D' The Small Company Value Fund and the International Equity Fund commenced
offering Class C shares on February 28, 2000.
'D'D' The International Equity Fund commenced offering Class D shares on
May 13, 1999. The Technology Fund commenced offering Class D shares on
September 1, 2000.
'D'D'D' The Technology Fund and the Strategic Growth Fund commenced offering
Class R shares on November 18, 1999. The Small Company Value Fund and
the International Equity Fund commenced offering Class R shares on
August 1, 2000.
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C'D'
------- ------- ----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
DEVELOPING MARKETS FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 186,207 $ 2,274,649 55,944 $ 625,955 1,447 $14,240
Shares redeemed......................... (249,683) (2,912,298) (66,506) (694,884) -- --
---------- ------------ -------- ----------- ----- -------
Net increase (decrease)................. (63,476) $ (637,649) (10,562) $ (68,929) 1,447 $14,240
---------- ------------ -------- ----------- ----- -------
---------- ------------ -------- ----------- ----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold............................. 295,113 $ 2,812,440 25,395 $ 232,158
Shares issued through reinvestment of
dividends and distributions............ 5,473 40,773 -- --
---------- ------------ -------- -----------
300,586 2,853,213 25,395 232,158
---------- ------------ -------- -----------
Shares redeemed......................... (980,986) (7,682,356) (108,041) (843,094)
---------- ------------ -------- -----------
Net decrease............................ (680,400) $ (4,829,143) (82,646) $ (610,936)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
FIXED INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 336,527 $ 3,256,988 32,723 $ 319,589 25 $ 250
Shares issued through reinvestment of
dividends and distributions............ 157,180 1,526,182 14,273 138,551 1 6
---------- ------------ -------- ----------- ----- -------
493,707 4,783,170 46,996 458,140 26 256
---------- ------------ -------- ----------- ----- -------
Shares redeemed......................... (1,308,905) (12,689,386) (169,646) (1,649,910) -- --
---------- ------------ -------- ----------- ----- -------
Net increase (decrease)................. (815,198) $ (7,906,216) (122,650) $(1,191,770) 26 $ 256
---------- ------------ -------- ----------- ----- -------
---------- ------------ -------- ----------- ----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold............................. 441,735 $ 4,439,974 96,962 $ 984,089
Shares issued through reinvestment of
dividends and distributions............ 207,086 2,087,393 26,021 262,583
---------- ------------ -------- -----------
648,821 6,527,367 122,983 1,246,672
---------- ------------ -------- -----------
Shares redeemed......................... (841,917) (8,495,678) (227,336) (2,280,058)
---------- ------------ -------- -----------
Net increase (decrease)................. (193,096) $ (1,968,311) (104,353) $(1,033,386)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
MUNICIPAL TRUST FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 506,447 $ 4,666,724 12,796 $ 128,248 25 $ 250
Shares issued through reinvestment of
dividends and distributions............ 87,675 875,336 1,576 15,731 1 5
---------- ------------ -------- ----------- ----- -------
594,122 5,542,060 14,372 143,979 26 255
---------- ------------ -------- ----------- ----- -------
Shares redeemed......................... (1,334,680) (12,950,312) (11,036) (109,160) -- --
---------- ------------ -------- ----------- ----- -------
Net increase (decrease)................. (740,558) $ (7,408,252) 3,336 $ 34,819 26 $ 255
---------- ------------ -------- ----------- ----- -------
---------- ------------ -------- ----------- ----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold............................. 1,193,944 $ 12,204,296 19,981 $ 208,455
Shares issued through reinvestment of
dividends and distributions............ 110,367 1,144,940 1,941 20,128
---------- ------------ -------- -----------
1,304,311 13,349,236 21,922 228,583
---------- ------------ -------- -----------
Shares redeemed......................... (2,534,110) (26,096,460) (53,743) (551,419)
---------- ------------ -------- -----------
Net decrease............................ (1,229,799) $(12,747,224) (31,821) $ (322,836)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
<CAPTION>
CLASS D'D'D' CLASS R'D'D'D'
------------ --------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
DEVELOPING MARKETS FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 2,296 $21,100
Shares redeemed......................... (188) (1,674)
----- -------
Net increase (decrease)................. 2,108 $19,426
----- -------
----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold.............................
Shares issued through reinvestment of
dividends and distributions............
Shares redeemed.........................
Net decrease............................
FIXED INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 386,500 $ 3,757,752 2,737 $26,766
Shares issued through reinvestment of
dividends and distributions............ 589,143 5,721,468 1 2
---------- ------------ ----- -------
975,643 9,479,220 2,738 26,768
---------- ------------ ----- -------
Shares redeemed......................... (3,081,629) (29,924,903) (516) (5,043)
---------- ------------ ----- -------
Net increase (decrease)................. (2,105,986) $(20,445,683) 2,222 $21,725
---------- ------------ ----- -------
---------- ------------ ----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold............................. 12,857,121 $129,704,316
Shares issued through reinvestment of
dividends and distributions............ 321,819 3,176,577
---------- ------------
13,178,940 132,880,893
---------- ------------
Shares redeemed......................... (1,338,506) (13,268,326)
---------- ------------
Net increase (decrease)................. 11,840,434 $119,612,567
---------- ------------
---------- ------------
MUNICIPAL TRUST FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold............................. 2,597 $26,283
Shares issued through reinvestment of
dividends and distributions............ -- 1
----- -------
2,597 26,284
----- -------
Shares redeemed......................... -- --
----- -------
Net increase (decrease)................. 2,597 $26,284
----- -------
----- -------
YEAR ENDED OCTOBER 31, 1999
Shares sold.............................
Shares issued through reinvestment of
dividends and distributions............
Shares redeemed.........................
Net decrease............................
</TABLE>
-----------------------
'D' The Funds commenced offering Class C shares on February 28, 2000.
'D'D' The International Equity Fund commenced offering Class D shares on
May 13, 1999. The Fixed Income Fund commenced offering Class D shares
on April 30, 1999.
'D'D'D' The Funds commenced offering Class R shares on August 1, 2000.
<PAGE>
DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C'D'
----------------------- ---------------------- ----------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
HIGH INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold................................ 223,661 $ 2,151,376 96,854 $ 930,638 8,900 $81,668
Shares issued through reinvestment of
dividends and distributions............... 69,212 649,902 10,360 97,280 83 729
--------- ----------- -------- ----------- ----- -------
292,873 2,801,278 107,214 1,027,918 8,983 82,397
--------- ----------- -------- ----------- ----- -------
Shares redeemed............................ (152,603) (1,455,897) (106,669) (1,012,257) -- --
--------- ----------- -------- ----------- ----- -------
Net increase............................... 140,270 $ 1,345,381 545 $ 15,661 8,983 $82,397
--------- ----------- -------- ----------- ----- -------
--------- ----------- -------- ----------- ----- -------
YEAR ENDED OCTOBER 31, 1999*
Shares sold................................ 1,147,988 $11,482,944 146,586 $ 1,472,897
Shares issued through reinvestment of
dividends and distributions............... 29,206 289,072 3,485 34,378
--------- ----------- -------- -----------
1,177,194 11,772,016 150,071 1,507,275
--------- ----------- -------- -----------
Shares redeemed............................ (91,250) (901,341) (219) (2,146)
--------- ----------- -------- -----------
Net increase............................... 1,085,944 $10,870,675 149,852 $ 1,505,129
--------- ----------- -------- -----------
--------- ----------- -------- -----------
<CAPTION>
CLASS D'D'D' CLASS R'D'D'D'
-------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- -----------
<S> <C> <C> <C> <C>
HIGH INCOME FUND
YEAR ENDED OCTOBER 31, 2000
Shares sold................................ 128,646 $1,221,941 173,806 $ 1,579,027
Shares issued through reinvestment of
dividends and distributions............... 14,720 136,886 1 2
------- ---------- -------- -----------
143,366 1,358,827 173,807 1,579,029
------- ---------- -------- -----------
Shares redeemed............................ (67,043) (635,769) (157,691) (1,398,719)
------- ---------- -------- -----------
Net increase............................... 76,323 $ 723,058 16,116 $ 180,310
------- ---------- -------- -----------
------- ---------- -------- -----------
YEAR ENDED OCTOBER 31, 1999*
Shares sold................................ 95,325 $ 951,003
Shares issued through reinvestment of
dividends and distributions............... 2,578 25,219
------- ----------
97,903 976,222
------- ----------
Shares redeemed............................ (2,019) (19,980)
------- ----------
Net increase............................... 95,884 $ 956,242
------- ----------
------- ----------
</TABLE>
-----------------------
'D' The High Income Fund commenced offering Class C shares on February 28,
2000.
'D'D' The High Income Fund commenced offering Class D shares on May 13, 1999.
'D'D'D' The High Income Fund commenced offering Class R shares on August 1,
2000.
* The High Income Fund commenced operations on March 8, 1999.
NOTE (E) SUBSEQUENT EVENTS: On December 18, 2000 the Board of Trustees of each
of the DLJ Funds listed below ('Acquired Funds') approved an Agreement and Plan
of Reorganization providing for a proposed acquisition (each such transition, an
'Acquisition') of all of the assets and liabilities of each Acquired Fund by
certain CSAM advised Warburg Pincus Funds (the 'Acquiring Funds'). The
Acquisition would be considered a tax free exchange of shares of beneficial
interest of the Acquired Fund at net asset value and the assumption of stated
liabilities. The Agreement and Plan of Reorganization is subject to the approval
of the shareholders of each of the Acquired Funds.
<TABLE>
<CAPTION>
ACQUIRED FUNDS ACQUIRING FUNDS
-------------- ---------------
<S> <C>
DLJ Strategic Growth Fund Warburg Pincus Focus Fund
DLJ Developing Markets Fund Warburg Pincus Emerging Markets Fund
DLJ Fixed Income Fund Warburg Pincus Fixed Income Fund
DLJ Municipal Trust Fund Warburg Pincus Municipal Bond Fund
</TABLE>
In addition, on December 18, 2000, upon the approval of new distribution
agreements ('New Distribution Agreements') by each Board of Trustees of the DLJ
Funds, Credit Suisse Asset Management Securities, Inc. ('CSAMI') assumed the
role as the Funds' Distributor. The New Distribution Agreements with CSAMI are
in the same form as the prior agreements with DLJSC, except for the identity of
the parties, the commencement date and certain other minor changes. Importantly,
there are no changes to fees, services, standards of care, identification or
termination provisions.
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
CORE EQUITY FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- -----------------------------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
---------------------------------------------------- -----------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996(1)
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 11.35 $ 20.75 $ 16.25 $ 14.41 $ 12.63 $11.88
Net investment income
(loss)............ (0.04)* (0.03)* --*(6) 0.03 0.05 (0.20)* (0.17)* (0.12)* (0.03) (0.01)
Net realized and
unrealized gain
(loss) on
investments....... 2.92 5.04 2.88 3.07 2.11 2.85 4.93 2.86 3.02 0.76
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Net increase in net
asset value from
operations........ 2.88 5.01 2.88 3.10 2.16 2.65 4.76 2.74 2.99 0.75
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Dividends from net
investment income. -- -- (0.02) (0.05) (0.04) -- -- -- (0.03) --
Distributions from
capital gains..... (1.61) (0.26) (0.90) (1.18) (0.78) (1.61) (0.26) (0.90) (1.18) --
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Total distributions. (1.61) (0.26) (0.92) (1.23) (0.82) (1.61) (0.26) (0.90) (1.21) --
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Net asset value, end
of period......... $ 22.54 $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 21.79 20.75 $ 16.25 $ 14.41 $12.63
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Total return'D'D'.. 14.39% 30.77% 21.00% 26.48% 20.32% 13.58% 29.73% 20.20% 25.66% 6.40%
Ratio of expenses to
average net
assets............ 1.14% 1.23% 1.29% 1.36% 1.48% 1.85% 1.93% 1.99% 2.06% 2.17%'D'
Ratio of net
investment income
(loss) to average
net assets........ (0.19)% (0.16)% (0.02)% 0.21% 0.47% (0.91)% (0.86)% (0.72)% (0.51)% (0.34)%'D'
Portfolio turnover
rate.............. 26.0% 34.7% 21.0% 41.1% 60.6% 26.0% 34.7% 21.0% 41.1% 60.6%
Net assets, end of
period (000
omitted).......... $159,945 $135,677 $ 97,078 $ 82,926 $ 68,096 $50,233 $32,783 $17,438 $10,378 $3,177
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------------
CLASS C CLASS D CLASS R
------------ -------------------------- ------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000(2) 2000 1999(3) 2000(5)
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of
period.............. $20.01 $ 21.27 $ 20.29 $22.55
Net investment income
(loss).............. (0.17)* 0.02* 0.01* (0.02)*
Net realized and
unrealized gain
(loss) on
investments......... 1.95 2.92 0.97 0.02
------ ------- ------- ------
Net increase in net
asset value from
operations.......... 1.78 2.94 0.98 --
------ ------- ------- ------
Dividends from net
investment income... -- -- -- --
Distributions from
capital gains....... -- (1.61) -- --
------ ------- ------- ------
Total distributions.. -- (1.61) -- --
------ ------- ------- ------
Net asset value, end
of period........... $21.79 $ 22.60 $ 21.27 $22.55
------ ------- ------- ------
------ ------- ------- ------
Total return'D'D'.... 8.90% 14.69% 4.83% (0.00)%
Ratio of expenses to
average net
assets.............. 1.32% 0.85% 1.17%'D' 0.27%
Ratio of net
investment income
(loss) to average
net assets.......... (0.91)% 0.07% 0.07%'D' (0.11)%
Portfolio turnover
rate................ 26.0% 26.0% 34.7% 26.0%
Net assets, end of
period (000
omitted)............ $4,412 $23,029 $ 4,839 $1,002
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
------------------------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------------------- -----------------------------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
---------------------------------------------------- -----------------------------------------------
2000 1999 1998 1997 1996 2000 1999 1998 1997 1996(1)
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............ $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 14.57 $ 23.37 $ 22.55 $ 20.06 $ 17.15 $16.05
Net investment income
(loss)............. 0.16* 0.12* 0.20* 0.21 0.27 --(6) (0.04)* 0.04* 0.08 0.14
Net realized and
unrealized gain
(loss) on
investments........ 0.16 2.87 3.51 4.59 2.93 0.38 2.88 3.50 4.58 1.11
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Net increase
(decrease) in net
asset value from
operations......... 0.32 2.99 3.71 4.80 3.20 0.38 2.84 3.54 4.66 1.25
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Dividends from net
investment income.. (0.12) (0.09) (0.17) (0.21) (0.24) -- (0.01) (0.02) (0.07) (0.15)
Distributions from
capital gains...... (0.69) (2.01) (1.03) (1.68) (0.35) (0.69) (2.01) (1.03) (1.68) --
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Total distributions. (0.81) (2.10) (1.20) (1.89) (0.59) (0.69) (2.02) (1.05) (1.75) (0.15)
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Net asset value, end
of period......... $ 24.62 $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 24.44 $ 23.37 $ 22.55 $ 20.06 $17.15
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
-------- -------- -------- -------- -------- ------- ------- ------- ------- ------
Total return'D'D'... 8.44% 14.37% 19.14% 30.53% 22.60% 7.66% 13.66% 18.29% 29.59% 7.67%
Ratio of expenses to
average net
assets............. 1.08% 1.11% 1.13% 1.22% 1.36% 1.80% 1.81% 1.83% 1.92% 1.99%'D'
Ratio of net
investment income
(loss) to average
net assets......... 0.71% 0.52% 0.92% 1.15% 1.68% (0.01)% (0.18)% 0.22% 0.39% 1.06%'D'
Portfolio turnover
rate............... 55.4% 24.5% 32.7% 19.8% 44.0% 55.4% 24.5% 32.7% 19.8% 44.0%
Net assets, end of
period (000
omitted).......... $162,871 $174,213 $163,936 $145,586 $113,803 $41,194 $41,144 $33,325 $19,664 $6,545
<CAPTION>
GROWTH AND INCOME FUND
--------------------------------------------------------
CLASS C CLASS D CLASS R
------------ -------------------------- ------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000(2) 2000 1999(4) 2000(5)
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of
period............. $20.87 $ 23.50 $ 23.73 $22.44
Net investment income
(loss)............. (0.01)* 0.23* 0.10* 0.02*
Net realized and
unrealized gain
(loss) on
investments........ 3.50 0.04 (0.26) 2.13
------ ------- ------- ------
Net increase
(decrease) in net
asset value from
operations......... 3.49 0.27 (0.16) 2.15
------ ------- ------- ------
Dividends from net
investment income.. (0.03) (0.18) (0.07) (0.04)
Distributions from
capital gains...... -- (0.69) -- --
------ ------- ------- ------
Total distributions. (0.03) (0.87) (0.07) (0.04)
------ ------- ------- ------
Net asset value, end
of period.......... $24.39 $ 24.64 $ 23.50 $24.63
------ ------- ------- ------
------ ------- ------- ------
Total return'D'D'... 17.02% 8.75% (0.67)% 9.96%
Ratio of expenses to
average net
assets............. 1.28% 0.80% 0.97%'D' 0.43%
Ratio of net
investment income
(loss) to average
net assets......... (0.03)% 1.00% 0.99%'D' 0.07%
Portfolio turnover
rate............... 55.4% 55.4% 24.5% 55.4%
Net assets, end of
period (000
omitted)........... $ 496 $46,708 $48,152 $ 96
</TABLE>
------------------------
'D' Annualized.
'D'D' Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total return. Total
return calculated for a period of less than one year is not annualized.
* Based on average shares outstanding.
(1) The Funds commenced offering Class B shares on February 28, 1996.
(2) The Funds commenced offering Class C shares on February 28, 2000.
(3) The Growth Fund commenced offering Class D shares on May 13, 1999.
(4) The Growth and Income Fund commenced offering Class D shares on April 30,
1999.
(5) The Funds commenced offering Class R shares on August 1, 2000.
(6) Amount rounds to less than $0.01.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
SMALL COMPANY VALUE FUND
----------------------------------------------------
CLASS A
----------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 20.52 $ 19.54 $ 23.34 $ 18.41 $ 16.61
Net investment income (loss).............. 0.06* 0.06* 0.07* 0.07 0.09
Net realized and unrealized gain (loss) on
investments.............................. 4.05 1.01 (2.55) 5.66 2.16
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value
from operations.......................... 4.11 1.07 (2.48) 5.73 2.25
-------- -------- -------- -------- --------
Dividends from net investment income...... (0.04) (0.07) (0.06) (0.08) (0.04)
Distributions from capital gains.......... (2.05) (0.02) (1.26) (0.72) (0.41)
-------- -------- -------- -------- --------
Total distributions....................... (2.09) (0.09) (1.32) (0.80) (0.45)
-------- -------- -------- -------- --------
Net asset value, end of period............ $ 22.54 $ 20.52 $ 19.54 $ 23.34 $ 18.41
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total return'D''D'........................ 21.69% 5.47% (11.20)% 32.48% 13.80%
Ratio of expenses to average net assets... 1.39% 1.37% 1.29% 1.35% 1.47%
Ratio of net investment income (loss) to
average net assets....................... 0.28% 0.33% 0.30% 0.37% 0.48%
Portfolio turnover rate................... 41.6% 29.6% 41.5% 21.1% 35.1%
Net assets, end of period (000 omitted)... $188,501 $188,192 $237,873 $283,001 $227,716
<CAPTION>
SMALL COMPANY VALUE FUND
-----------------------------------------------------------------------------
CLASS B CLASS C CLASS R
----------------------------------------------- ------------ ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED PERIOD ENDED
----------------------------------------------- OCTOBER 31, OCTOBER 31,
2000 1999 1998 1997 1996(1) 2000(3) 2000(4)
------- ------- ------- ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 20.13 $ 19.23 $ 23.12 $ 18.34 $17.41 $17.96 $21.35
Net investment income (loss).............. (0.09)* (0.14)* (0.09)* (0.02) (0.02) (0.07)* 0.02*
Net realized and unrealized gain (loss) on
investments.............................. 3.96 1.06 (2.55) 5.57 0.95 4.05 1.25
------- ------- ------- ------- ------ ------ ------
Net increase (decrease) in net asset value
from operations.......................... 3.87 0.92 (2.64) 5.55 0.93 3.98 1.27
------- ------- ------- ------- ------ ------ ------
Dividends from net investment income...... -- -- -- (0.05) -- -- --
Distributions from capital gains.......... (2.05) (0.02) (1.25) (0.72) -- -- --
------- ------- ------- ------- ------ ------ ------
Total distributions....................... (2.05) (0.02) (1.25) (0.77) -- -- --
------- ------- ------- ------- ------ ------ ------
Net asset value, end of period............ $ 21.95 $ 20.13 $ 19.23 $ 23.12 $18.34 $21.94 $22.62
------- ------- ------- ------- ------ ------ ------
------- ------- ------- ------- ------ ------ ------
Total return'D''D'........................ 20.80% 4.75% (11.98)% 31.55% 5.28% 22.16% 5.95%
Ratio of expenses to average net assets... 2.10% 2.07% 1.99% 2.05% 2.15%'D' 1.42% 0.34%
Ratio of net investment income (loss) to
average net assets....................... (0.43)% (0.71)% (0.40)% (0.32)% (0.34)%'D' (0.33)% 0.09%
Portfolio turnover rate................... 41.6% 29.6% 41.5% 21.1% 35.1% 41.6% 41.6%
Net assets, end of period (000 omitted)... $17,255 $19,257 $22,284 $18,395 $6,305 $ 220 $ 105
<CAPTION>
TECHNOLOGY FUND
------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D CLASS R
------------ ------------ ------------ ------------ ------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000(5) 2000(5) 2000(5) 2000(6) 2000(2)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $13.30 $13.30 $13.30 $15.79 $ 10.00
Net investment loss....................... (0.04)* (0.07)* (0.06)* (0.02)* (0.14)*
Net realized and unrealized loss on
investments.............................. (0.47) (0.46) (0.47) (2.98) 2.93
------ ------ ------ ------ -------
Net decrease in net asset value from
operations............................... (0.51) (0.53) (0.53) (3.00) 2.79
------ ------ ------ ------ -------
Net asset value, end of period............ $12.79 $12.77 $12.77 $12.79 $ 12.79
------ ------ ------ ------ -------
------ ------ ------ ------ -------
Total return'D''D'........................ (3.83)% (3.98)% (3.98)% (19.00)% 27.90%
Ratio of expenses to average net
assets(7)................................ 0.35% 0.53% 0.54% 0.18% 1.31%
Ratio of net investment loss to average
net assets(7)............................ (0.29)% (0.47)% (0.48)% (0.15)% (1.03)%
Portfolio turnover rate................... 14.2% 14.2% 14.2% 14.2% 14.2%
Net assets, end of period (000 omitted)... $2,913 $1,277 $ 479 $3,292 $28,726
</TABLE>
------------------------
'D' Annualized.
'D''D' Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total return. Total
return calculated for a period of less than one year is not annualized.
* Based on average shares outstanding.
(1) The Small Company Value Fund commenced offering Class B shares on
February 28, 1996.
(2) The Technology Fund commenced operations on November 18, 1999.
(3) The Small Company Value Fund commenced offering Class C shares on
February 28, 2000.
(4) The Small Company Value Fund commenced offering Class R shares on
August 1, 2000.
(5) The Technology Fund commenced offering Class A, Class B and Class C
shares on August 1, 2000.
(6) The Technology Fund commenced offering Class D shares on
September 1, 2000.
(7) Net of voluntary assumption by Advisor of expenses, expressed as a
percentage of average net assets, as follows: Technology Fund, 0.83%
(annualized) for the period ended 10/31/00.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
STRATEGIC GROWTH FUND
---------------------------------------------------------
CLASS A CLASS B CLASS C CLASS R
------------ ------------ ------------ ------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000(4) 2000(4) 2000(4) 2000(1)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $11.07 $11.07 $11.07 $10.00
Net investment loss............... (0.02)* (0.04)* (0.04)* (0.05)*
Net realized and unrealized gain
(loss) on investments............ (0.12) (0.10) (0.10) 0.99
------ ------ ------ ------
Net increase (decrease) in net
asset value from operations...... (0.14) (0.14) (0.14) 0.94
------ ------ ------ ------
Net asset value, end of period.... $10.93 $10.93 $10.93 $10.94
------ ------ ------ ------
------ ------ ------ ------
Total return'D'D'................. (1.26)% (1.26)% (1.26)% 9.40%
Ratio of expenses to average net
assets(6)........................ 0.30% 0.48% 0.48% 1.13%
Ratio of net investment loss to
average net assets(6)............ (0.17)% (0.34)% (0.35)% (0.43)%
Portfolio turnover rate........... 21.4% 21.4% 21.4% 21.4%
Net assets, end of period (000
omitted)......................... $ 100 $ 359 $ 38 $8,263
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
-----------------------------------------------
CLASS A
-----------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------
2000 1999 1998 1997 1996
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.............. $ 14.00 $ 12.20 $ 11.42 $ 10.38 $ 9.58
Net investment income
(loss).............. (0.06)* (0.06)* (0.06)* (0.07)* (0.04)*
Net realized and
unrealized gain
(loss) on
investments and
foreign currency
transactions........ (0.11) 2.56 0.99 1.11 0.84
------- ------- ------- ------- -------
Net increase in net
asset value from
operations.......... (0.17) 2.50 0.93 1.04 0.80
------- ------- ------- ------- -------
Dividends from net
investment income... -- -- (0.06) -- --
Distributions from
capital gains....... (1.78) (0.70) (0.09) -- --
------- ------- ------- ------- -------
Total distributions.. (1.78) (0.70) (0.15) -- --
------- ------- ------- ------- -------
Net asset value, end
of period........... $ 12.05 $ 14.00 $ 12.20 $ 11.42 $ 10.38
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total return'D'D'.... (1.87)% 21.76% 8.20% 10.02% 8.35%
Ratio of expenses to
average net
assets(6)........... 2.03% 2.15% 2.15% 2.15% 2.15%
Ratio of net
investment income
(loss) to average
net assets(6)....... (0.45)% (0.44)% (0.49)% (0.59)% (0.39)%
Portfolio turnover
rate................ 45.2% 82.0% 69.7% 73.9% 94.1%
Net assets, end of
period (000
omitted)............ $52,966 $48,181 $44,286 $44,316 $42,170
<CAPTION>
INTERNATIONAL EQUITY FUND
-------------------------------------------------------------------------------------------------------
CLASS B CLASS C CLASS D CLASS R
-------------------------------------------- ------------ -------------------------- ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
-------------------------------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000 1999 1998 1997 1996 2000(2) 2000 1999(3) 2000(5)
-------- ------ ------ ------ ------ ------- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.............. $ 13.63 $11.98 $11.24 $10.29 $ 9.57 $13.35 $14.02 $12.69 $13.05
Net investment income
(loss).............. (0.16)* (0.15)* (0.15)* (0.15)* (0.13)* (0.24)* 0.02* (0.14)* (0.11)*
Net realized and
unrealized gain
(loss) on
investments and
foreign currency
transactions........ (0.12) 2.50 0.98 1.10 0.85 (1.52) (0.17) 1.47 (0.89)
-------- ------ ------ ------ ------ ------ ------ ------ ------
Net increase in net
asset value from
operations.......... (0.28) 2.35 0.83 0.95 0.72 (1.76) (0.15) 1.33 (1.00)
-------- ------ ------ ------ ------ ------ ------ ------ ------
Dividends from net
investment income... -- -- -- -- -- -- -- -- --
Distributions from
capital gains....... (1.78) (0.70) (0.09) -- -- -- (1.78) -- --
-------- ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.. (1.78) (0.70) (0.09) -- -- -- (1.78) -- --
-------- ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end
of period........... $ 11.57 $13.63 $11.98 $11.24 $10.29 $11.59 $12.09 $14.02 $12.05
-------- ------ ------ ------ ------ ------ ------ ------ ------
-------- ------ ------ ------ ------ ------ ------ ------ ------
Total return'D'D'.... (2.84)% 20.86% 7.43% 9.23% 7.52% (13.18)% (1.70)% 10.48% (7.66)%
Ratio of expenses to
average net
assets(6)........... 2.78% 2.90% 2.90% 2.90% 2.90% 2.59% 1.50% 1.90%'D' 1.63%
Ratio of net
investment income
(loss) to average
net assets(6)....... (1.22)% (1.18)% (1.24)% (1.32)% (1.25)%'D' (1.81)% 0.18% (1.14)%'D' (0.87)%
Portfolio turnover
rate................ 45.2% 82.0% 69.7% 73.9% 94.1% 45.2% 45.2% 82.0% 45.2%
Net assets, end of
period (000
omitted)............ $ 5,089 $5,527 $6,133 $6,821 $4,955 $ 141 $4,738 $1,586 $ 138
</TABLE>
------------------------
'D' Annualized.
'D'D' Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total return. Total
return calculated for a period of less than one year is not annualized.
* Based on average shares outstanding.
(1) The Strategic Growth Fund commenced operations on November 18, 1999.
(2) The International Equity Fund commenced offering Class C shares on
February 28, 2000.
(3) The International Equity Fund commenced offering Class D shares on May 13,
1999.
(4) The Strategic Growth Fund commenced offering Class A, Class B and Class C
shares on August 1, 2000.
(5) The International Equity Fund commenced offering Class R shares on
August 1, 2000.
(6) Net of voluntary assumption by Advisor and Subadvisor of expenses,
expressed as a percentage of average net assets, as follows: Strategic
Growth Fund, 1.87% (annualized) for the period ended 10/31/00;
International Equity Fund Class A and Class B shares, .04%, .10%, .18%
and .27% for the years ended 10/31/99, 98, 97 and 96, respectively; and
International Equity Fund Class D shares, .04% (annualized) for the period
05/13/99 through 10/31/99.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
DEVELOPING MARKETS FUND
-----------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------------------- ------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
----------------------------------------------------------- ------------------
2000 1999 1998 1997 1996 2000 1999
------- ------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 9.53 $ 9.66 $ 6.96
Net investment income (loss)................. (0.08)* 0.03* 0.02* (0.02)* (0.01)* (0.16)* (0.03)*
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions................................ (1.28) 2.58 (2.40) (0.40) 0.44 (1.22) 2.50
Contribution from subadvisor................. -- 0.23 -- -- -- -- 0.23
------- ------- ------- ------- ------- ------ ------
Net increase (decrease) in net asset value
from operations............................. (1.36) 2.84 (2.38) (0.42) 0.43 (1.38) 2.70
------- ------- ------- ------- ------- ------ ------
Dividends from net investment income......... -- (0.01) -- -- -- -- --
Distributions from capital gains............. -- -- -- (0.02) -- -- --
Tax return of capital........................ -- (0.02) -- -- -- -- --
------- ------- ------- ------- ------- ------ ------
Total distributions.......................... -- (0.03) -- (0.02) -- -- --
------- ------- ------- ------- ------- ------ ------
Net asset value, end of period............... $ 8.59 $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 8.28 $ 9.66
------- ------- ------- ------- ------- ------ ------
------- ------- ------- ------- ------- ------ ------
Total return'D''D'........................... (13.67)% 39.82% (25.00)% (4.18)% 4.51% (14.29)% 38.79%
Ratio of expenses to average net assets(5)... 2.15% 2.15% 2.15% 2.15% 2.15% 2.90% 2.90%
Ratio of net investment income (loss) to
average net assets(5)....................... (0.70)% 0.32% 0.22% (0.17)% (0.14)% (1.43)% (0.36)%
Portfolio turnover rate...................... 115.4% 36.9% 43.6% 52.8% 26.8% 115.4% 36.9%
Net assets, end of period (000 omitted)...... $13,294 $16,023 $16,355 $29,402 $36,918 $2,214 $2,685
<CAPTION>
DEVELOPING MARKETS FUND
-------------------------------------------------------------
CLASS B CLASS C CLASS R
------------------------------- ------------ ------------
YEAR ENDED OCTOBER 31,
------------------------------- OCTOBER 31, OCTOBER 31,
1998 1997 1996 2000(3) 2000(4)
------- ------ ------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 9.36 $ 9.86 $ 9.52 $12.35 $10.54
Net investment income (loss)................. (0.04)* (0.19)* (0.08)* (0.28)* (0.19)*
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions................................ (2.36) (0.29) 0.42 (3.81) (1.76)
Contribution from subadvisor................. -- -- -- -- --
------- ------ ------ ------ ------
Net increase (decrease) in net asset value
from operations............................. (2.40) (0.48) 0.34 (4.09) (1.95)
------- ------ ------ ------ ------
Dividends from net investment income......... -- -- -- -- --
Distributions from capital gains............. -- (0.02) -- -- --
Tax return of capital........................ -- -- -- -- --
------- ------ ------ ------ ------
Total distributions.......................... -- (0.02) -- -- --
------- ------ ------ ------ ------
Net asset value, end of period............... $ 6.96 $ 9.36 $ 9.86 $ 8.26 $ 8.59
------- ------ ------ ------ ------
------- ------ ------ ------ ------
Total return'D''D'........................... (25.64)% (4.83)% 3.57% (33.12)% (18.50)%
Ratio of expenses to average net assets(5)... 2.90% 2.90% 2.90% 1.97% 0.54%
Ratio of net investment income (loss) to
average net assets(5)....................... (0.50)% (1.74)% (0.83)% (1.97)% (0.54)%
Portfolio turnover rate...................... 43.6% 52.8% 26.8% 115.4% 115.4%
Net assets, end of period (000 omitted)...... $ 2,509 $4,941 $3,641 $ 12 $ 18
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
--------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------- ------------------------
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
----------------------------------------------- ------------------------
2000 1999 1998 1997 1996 2000 1999 1998
------- ------- ------- ------- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 10.22 $ 9.83 $10.46 $10.16
Net investment income........................ 0.52 0.50 0.53 0.58 0.58 0.45 0.43 0.46
Net realized and unrealized gain (loss) on
investments................................. (0.02) (0.53) 0.30 0.09 (0.15) (0.02) (0.53) 0.30
------- ------- ------- ------- ------- ------ ------ ------
Net increase (decrease) in net asset value
from operations............................. 0.50 (0.03) 0.83 0.67 0.43 0.43 (0.10) 0.76
------- ------- ------- ------- ------- ------ ------ ------
Dividends from net investment income......... (0.52) (0.50) (0.53) (0.58) (0.58) (0.45) (0.43) (0.46)
Distributions from capital gains............. -- (0.10) -- -- -- -- (0.10) --
------- ------- ------- ------- ------- ------ ------ ------
Total distributions.......................... (0.52) (0.60) (0.53) (0.58) (0.58) (0.45) (0.53) (0.46)
------- ------- ------- ------- ------- ------ ------ ------
Net asset value, end of period............... $ 9.81 $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 9.81 $ 9.83 $10.46
------- ------- ------- ------- ------- ------ ------ ------
------- ------- ------- ------- ------- ------ ------ ------
Total return'D''D'........................... 5.31% (0.26)% 8.46% 6.84% 4.34% 4.57% (0.97)% 7.71%
Ratio of expenses to average net assets(5)... 0.99% 1.00% 1.00% 1.00% 1.00% 1.70% 1.70% 1.70%
Ratio of net investment income to average net
assets(5)................................... 5.38% 4.91% 5.24% 5.74% 5.72% 4.67% 4.21% 4.50%
Portfolio turnover rate...................... 84.2% 84.3% 114.0% 119.3% 90.2% 84.2% 84.3% 114.0%
Net assets, end of period (000 omitted)...... $34,951 $43,060 $47,834 $54,755 $56,388 $3,256 $4,471 $5,849
<CAPTION>
FIXED INCOME FUND
-------------------------------------------------------------------------------
CLASS B CLASS C CLASS D CLASS R
------------------- ------------ --------------------------- ------------
YEAR ENDED OCTOBER 31, ERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996(1) 2000(3) 2000 1999(2) 2000(4)
------ ------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $10.07 $10.22 $ 9.69 $ 9.83 $ 10.09 $ 9.71
Net investment income........................ 0.50 0.34 0.25 0.55 0.26 0.14
Net realized and unrealized gain (loss) on
investments................................. 0.09 (0.15) 0.12 (0.02) (0.26) 0.10
------ ------ ------ ------- -------- ------
Net increase (decrease) in net asset value
from operations............................. 0.59 0.19 0.37 0.53 -- 0.24
------ ------ ------ ------- -------- ------
Dividends from net investment income......... (0.50) (0.34) (0.25) (0.55) (0.26) (0.14)
Distributions from capital gains............. -- -- -- -- -- --
------ ------ ------ ------- -------- ------
Total distributions.......................... (0.50) (0.34) (0.25) (0.55) (0.26) (0.14)
------ ------ ------ ------- -------- ------
Net asset value, end of period............... $10.16 $10.07 $ 9.81 $ 9.81 $ 9.83 $ 9.81
------ ------ ------ ------- -------- ------
------ ------ ------ ------- -------- ------
Total return'D''D'........................... 6.10% 2.23% 3.86% 5.62% 0.04% 2.44%
Ratio of expenses to average net assets(5)... 1.70% 1.70%'D' 1.70%'D' 0.70% 0.70%'D' 0.99%'D'
Ratio of net investment income to average net
assets(5)................................... 4.99% 5.03%'D' 4.08%'D' 5.67% 6.30%'D' 6.51%'D'
Portfolio turnover rate...................... 119.3% 90.2% 84.2% 84.2% 84.3% 84.2%
Net assets, end of period (000 omitted)...... $3,375 $1,629 $ --(6) $95,471 $116,424 $ 22
</TABLE>
------------------------
'D' Annualized.
'D''D' Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total return. Total
return calculated for a period of less than one year is not annualized.
Total return for the year ended October 31, 1999 excluding the effect of
the contribution from the Subadvisor for realized and unrealized
securities losses was 36.59% and 35.49% for the Developing Markets Fund
Class A and B shares, respectively.
* Based on average shares outstanding.
(1) The Fixed Income Fund commenced offering Class B shares on February 28,
1996.
(2) The Fixed Income Fund commenced offering Class D shares on
April 30, 1999.
(3) The Funds commenced offering Class C shares on February 28, 2000.
(4) The Funds commenced offering Class R shares on August 1, 2000.
(5) Net of voluntary assumption by Advisor and Subadvisor of expenses,
expressed as a percentage of average net assets, as follows: Developing
Markets Fund Class A and Class B shares, .72%, .76%, .61%, .34% and .54%
for the years ended 10/31/00, 99, 98, 97 and 96, respectively; Developing
Markets Fund Class C shares, .72% (annualized) for the period 02/28/00
through 10/31/00; Developing Markets Fund Class R shares, .72%
(annualized) for the period 08/01/00 through 10/31/00; Fixed Income
Fund Class A shares, .13%, .14%, .30%, .30% and .34% for the years
ended 10/31/00, 99, 98, 97 and 96, respectively; Fixed Income Fund
Class B shares, .13%, .14%, .30%, and .30% for the years ended 10/31/00,
99, 98 and 97, respectively, and .34% (annualized) for the period
02/28/96 through 10/31/96; Fixed Income Fund Class C shares, .13%
(annualized) for the period 02/28/00 through 10/31/00; Fixed Income
Fund Class D shares, .13% for the year ended 10/31/00 and .14%
(annualized) for the period 04/30/99 through 10/31/99; and Fixed
Income Fund Class R shares, .13% (annualized) for the period
08/01/00 through 10/31/00.
(6) Amount rounds to less than $1,000.
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
-----------------------------------------------
CLASS A
-----------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------------------------
2000 1999 1998 1997 1996
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 10.05 $ 10.53 $ 10.29 $ 10.01 $ 10.06
Net investment income..................... 0.39 0.38 0.38 0.45 0.43
Net realized and unrealized gain (loss) on
investments.............................. 0.12 (0.48) 0.24 0.28 (0.05)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value
from operations.......................... 0.51 (0.10) 0.62 0.73 0.38
------- ------- ------- ------- -------
Dividends from net investment income...... (0.39) (0.38) (0.38) (0.45) (0.43)
Distributions from capital gains.......... (0.08) -- -- -- --
------- ------- ------- ------- -------
Total distributions....................... (0.47) (0.38) (0.38) (0.45) (0.43)
------- ------- ------- ------- -------
Net asset value, end of period............ $ 10.09 $ 10.05 $ 10.53 $ 10.29 $ 10.01
------- ------- ------- ------- -------
------- ------- ------- ------- -------
Total return'D'D'......................... 5.20% (1.02)% 6.28% 7.37% 3.83%
Ratio of expenses to average net
assets(6)................................ 0.99% 1.00% 1.00% 0.70% 0.80%
Ratio of net investment income to average
net assets(6)............................ 3.92% 3.65% 3.78% 4.38% 4.26%
Portfolio turnover rate................... 17.7% 76.5% 51.5% 84.3% 79.3%
Net assets, end of period (000 omitted)... $22,565 $29,912 $44,306 $35,878 $38,794
<CAPTION>
MUNICIPAL TRUST FUND
-------------------------------------------------------------------------
CLASS B CLASS C CLASS R
------------------------------------------- ------------ ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED PERIOD ENDED
------------------------------------------- OCTOBER 31, OCTOBER 31,
2000 1999 1998 1997 1996(1) 2000(3) 2000(5)
------ ------ ------ ------ ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $10.05 $10.53 $10.29 $10.01 $10.12 $ 9.88 $10.04
Net investment income..................... 0.32 0.31 0.32 0.37 0.25 0.19 0.10
Net realized and unrealized gain (loss) on
investments.............................. 0.12 (0.48) 0.24 0.28 (0.11) 0.17 0.05
------ ------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value
from operations.......................... 0.44 (0.17) 0.56 0.65 0.14 0.36 0.15
------ ------ ------ ------ ------ ------ ------
Dividends from net investment income...... (0.32) (0.31) (0.32) (0.37) (0.25) (0.19) (0.10)
Distributions from capital gains.......... (0.08) -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------
Total distributions....................... (0.40) (0.31) (0.32) (0.37) (0.25) (0.19) (0.10)
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period............ $10.09 $10.05 $10.53 $10.29 $10.01 $10.05 $10.09
------ ------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------ ------
Total return'D'D'......................... 4.45% (1.71)% 5.54% 6.62% 1.42% 3.65% 1.46%
Ratio of expenses to average net
assets(6)................................ 1.70% 1.70% 1.70% 1.40% 1.23%'D' 1.70%'D' 0.99%'D'
Ratio of net investment income to average
net assets(6)............................ 3.21% 2.94% 3.04% 3.66% 3.81%'D' 2.91%'D' 4.01%'D'
Portfolio turnover rate................... 17.7% 76.5% 51.5% 84.3% 79.3% 17.7% 17.7%
Net assets, end of period (000 omitted)... $1,082 $1,044 $1,430 $ 546 $ 489 $ --(7) $ 26
</TABLE>
<TABLE>
<CAPTION>
HIGH INCOME FUND
---------------------------------------------------------
CLASS A CLASS B
--------------------------- ---------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000 1999(2) 2000 1999(2)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 9.66 $ 10.00 $ 9.66 $10.00
Net investment income..................... 0.88 0.56 0.81 0.50
Net realized and unrealized gain (loss) on
investments.............................. (0.86) (0.34) (0.86) (0.34)
------- ------- ------ ------
Net increase (decrease) in net asset value
from operations.......................... 0.02 0.22 (0.05) 0.16
------- ------- ------ ------
Dividends from net investment income...... (0.88) (0.56) (0.81) (0.50)
Distributions from capital gains.......... (0.07) -- (0.07) --
------- ------- ------ ------
Total distributions....................... (0.95) (0.56) (0.88) (0.50)
------- ------- ------ ------
Net asset value, end of period............ $ 8.73 $ 9.66 $ 8.73 $ 9.66
------- ------- ------ ------
------- ------- ------ ------
Total return'D'D'......................... (0.06)% 2.19% (0.81)% 1.60%
Ratio of expenses to average net
assets(6)................................ 1.10% 1.10%'D' 1.85% 1.85%'D'
Ratio of net investment income to average
net assets(6)............................ 9.35% 8.61%'D' 8.60% 7.83%'D'
Portfolio turnover rate................... 43.9% 188.4% 43.9% 188.4%
Net assets, end of period (000 omitted)... $10,709 $10,488 $1,313 $1,447
<CAPTION>
HIGH INCOME FUND
---------------------------------------------------------
CLASS C CLASS D CLASS R
------------ --------------------------- ------------
PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000(3) 2000 1999(4) 2000(5)
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 9.57 $ 9.65 $10.23 $ 9.21
Net investment income..................... 0.53 0.90 0.41 0.21
Net realized and unrealized gain (loss) on
investments.............................. (0.84) (0.85) (0.58) (0.48)
------ ------ ------ ------
Net increase (decrease) in net asset value
from operations.......................... (0.31) 0.05 (0.17) (0.27)
------ ------ ------ ------
Dividends from net investment income...... (0.53) (0.90) (0.41) (0.21)
Distributions from capital gains.......... -- (0.07) -- --
------ ------ ------ ------
Total distributions....................... (0.53) (0.97) (0.41) (0.21)
------ ------ ------ ------
Net asset value, end of period............ $ 8.73 $ 8.73 $ 9.65 $ 8.73
------ ------ ------ ------
------ ------ ------ ------
Total return'D'D'......................... (3.31)% 0.29% (1.63)% (2.98)
Ratio of expenses to average net
assets(6)................................ 1.85%'D' 0.85% 0.85%'D' 1.10%'D'
Ratio of net investment income to average
net assets(6)............................ 7.57%'D' 9.62% 9.36%'D' 9.14%'D'
Portfolio turnover rate................... 43.9% 43.9% 188.4% 43.9%
Net assets, end of period (000 omitted)... $ 78 $1,504 $ 926 $ 141
</TABLE>
------------------------
'D' Annualized.
'D'D' Total return is calculated assuming an initial investment made at the net
asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on
the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total return. Total
return calculated for a period of less than one year is not annualized.
* Based on average shares outstanding.
(1) The Municipal Trust Fund commenced offering Class B shares on February 28,
1996.
(2) The High Income Fund commenced operations on March 8, 1999.
(3) The Funds commenced offering Class C shares on February 28, 2000.
(4) The High Income Fund commenced offering Class D shares on May 13, 1999.
(5) The Funds commenced offering Class R shares on August 1, 2000.
(6) Net of voluntary assumption by Advisor of expenses, expressed as a
percentage of average net assets, as follows: Municipal Trust Fund
Class A, .53%, .42%, .41%, .74% and .64% for the years ended 10/31/00,
99, 98, 97 and 96, respectively; Municipal Trust Fund Class B, .53%,
.42%, .41% and .74% for the years ended 10/31/00, 99, 98 and 97,
respectively, and .64% (annualized) for the period 02/28/96 through
10/31/96; Municipal Trust Fund Class C shares, .53% (annualized) for the
period 02/28/00 through 10/31/00; Municipal Trust Fund Class R shares,
.53% (annualized) for the period 08/01/00 through 10/31/00; High Income
Fund Class A shares, 1.58% for the year ended 10/31/00 and 1.43%
(annualized) for the period 03/08/99 through 10/31/99; High Income Fund
Class B shares, 1.58% for the year ended 10/31/00 and 1.43% (annualized)
for the period 03/08/99 through 10/31/99; High Income Fund Class C
shares, 1.58% (annualized) for the period 02/28/00 through 10/31/00; High
Income Fund Class D shares, 1.58% for the year ended 10/31/00 and 1.43%
(annualized) for the period 05/13/99 through 10/31/99; and High Income
Fund Class R shares, 1.58% (annualized) for the period 08/01/00 through
10/31/00.
(7) Amount rounds to less than $1,000.
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
--------------------------------------------------------------------------------
Shareholders and Board of Trustees
DLJ Focus Funds
DLJ Opportunity Funds and
DLJ Select Funds
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of DLJ Focus Funds (comprising, respectively, DLJ
Core Equity Fund, DLJ Fixed Income Fund, DLJ Growth and Income Fund, DLJ
Municipal Trust Fund and DLJ Small Company Value Fund), DLJ Select Funds
(comprising, respectively, DLJ Strategic Growth Fund and DLJ Technology Fund)
and DLJ High Income Fund, DLJ International Equity Fund and DLJ Developing
Markets Fund (three of the funds comprising DLJ Opportunity Funds) as of October
31, 2000, and the related statements of operations and changes in net assets and
financial highlights for each of the periods indicated therein. 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 auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds at October 31, 2000, and the results of their
operations, the changes in their net assets and the financial highlights for
each of the indicated periods, in conformity with accounting principles
generally accepted in the United States.
ERNEST & YOUNG LLP
New York, New York
December 20, 2000
<PAGE>
DLJ MUTUAL FUNDS -- TAX INFORMATION (unaudited)
--------------------------------------------------------------------------------
We are required by Subchapter M of the Internal Revenue Code of 1986 to advise
you as to the federal tax status of distributions received by shareholders
during the Funds' fiscal year ended October 31, 2000. Accordingly, we are
advising you that the following distributions paid during the fiscal year by the
Funds were derived from the following sources:
<TABLE>
<CAPTION>
ORDINARY INCOME
DISTRIBUTIONS PER SHARE
-----------------------
TAX ALTERNATIVE FROM FROM FROM
EXEMPT MINIMUM TAX INVESTMENT SHORT-TERM LONG-TERM
FUND INCOME* INCOME INCOME CAPITAL GAINS CAPITAL GAINS
---- ------- ------ ------ ------------- -------------
<S> <C> <C> <C> <C> <C>
DLJ Core Equity Fund -- Class A.............. $-- $-- $-- $-- $1.610
DLJ Core Equity Fund -- Class B.............. -- -- -- -- 1.610
DLJ Core Equity Fund -- Class D.............. -- -- -- -- 1.610
DLJ Growth and Income Fund -- Class A........ -- -- 0.121 -- 0.685
DLJ Growth and Income Fund -- Class B........ -- -- -- -- 0.685
DLJ Growth and Income Fund -- Class C........ -- -- 0.031 -- --
DLJ Growth and Income Fund -- Class D........ -- -- 0.179 -- 0.685
DLJ Growth and Income Fund -- Class R........ -- -- 0.044 -- --
DLJ Small Company Value Fund -- Class A...... -- -- 0.040 0.595 1.450
DLJ Small Company Value Fund -- Class B...... -- -- -- 0.595 1.450
DLJ International Equity Fund -- Class A..... -- -- -- 0.185 1.590
DLJ International Equity Fund -- Class B..... -- -- -- 0.185 1.590
DLJ International Equity Fund -- Class D..... -- -- -- 0.185 1.590
DLJ Fixed Income Fund -- Class A............. -- -- 0.524 -- --
DLJ Fixed Income Fund -- Class B............. -- -- 0.454 -- --
DLJ Fixed Income Fund -- Class C............. -- -- 0.249 -- --
DLJ Fixed Income Fund -- Class D............. -- -- 0.553 -- --
DLJ Fixed Income Fund -- Class R............. -- -- 0.136 -- --
DLJ Municipal Trust Fund -- Class A.......... 0.335 0.053 0.004 -- 0.080
DLJ Municipal Trust Fund -- Class B.......... 0.274 0.044 0.003 -- 0.080
DLJ Municipal Trust Fund -- Class C.......... 0.160 0.025 0.002 -- --
DLJ Municipal Trust Fund -- Class R.......... 0.082 0.013 0.001 -- --
DLJ High Income Fund -- Class A.............. -- -- 0.879 0.070 --
DLJ High Income Fund -- Class B.............. -- -- 0.808 0.070 --
DLJ High Income Fund -- Class C.............. -- -- 0.533 -- --
DLJ High Income Fund -- Class D.............. -- -- 0.902 0.070 --
DLJ High Income Fund -- Class R.............. -- -- 0.210 -- --
</TABLE>
* Federally exempt interest dividends.
Because each Fund's fiscal year is not the calendar year, calendar year
taxpayers should use the dollar amounts and the nature of those amounts
referenced on Form 1099-Div which will be mailed to you in late January, 2001.
Included with your 1099-Div will be a notice identifying the percentage of
ordinary dividends paid in 2000 which were derived from Federal obligations. In
addition, for use by our DLJ Municipal Trust shareholders, a schedule
referencing the source of federal tax exempt income identified by state will be
provided. Shareholders are advised to consult their own tax advisors with
respect to the tax consequences of their investments in each Fund.
<PAGE>
TRUSTEES
G. Moffett Cochran
Robert E. Fischer
Stig Host
Martin Jaffe
Wilmot H. Kidd, III
Peter F. Krogh
John J. Sheehan
OFFICERS
G. Moffett Cochran, Chairman and President
Martin Jaffe, Vice President, Treasurer and Secretary
William Butler, Vice President
Richard J. Hanlon, Vice President
Cathy A. Jameson, Vice President
Brian A. Kammerer, Vice President
Marybeth B. Leithead, Vice President
Luisa Michel, Vice President
Hugh M. Neuburger, Vice President
Roger W. Vogel, Vice President
INVESTMENT ADVISOR
Credit Suisse Asset Management, LLC
An Investment Management Subsidiary of
Credit Suisse Group
277 Park Avenue, New York, NY 10172
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
PFPC, Inc.
P.O. Box 61787 (211 South Gulph Road)
King of Prussia, PA 19406-0903
DISTRIBUTOR
Credit Suisse Asset Management Securities, Inc.
277 Park Avenue, New York, NY 10172
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue, New York, NY 10019
LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street, New York, NY 10004
This report is submitted for the general information
of the shareholders of the Fund. It is not authorized for
distribution to prospective investors in the Fund unless
preceded or accompanied by an effective prospectus, which
should be read carefully before investing.
[DLJ LOGO]
ANNUAL combined 10/00
277 Park Avenue, New York, NY 10172
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as .................................. 'D'
