<PAGE>
- ---------------
GALAXY
------
FUNDS
-----
- --------------------------------------------------------------------------------
[Graphic Omitted]
- --------------------------------------------------------------------------------
EQUITY FUNDS REPORT
- --------------------------------------------------------------------------------
ASSET ALLOCATION FUND . EQUITY INCOME FUND . GROWTH AND INCOME FUND .
EQUITY VALUE FUND . EQUITY GROWTH FUND . SMALL CAP VALUE FUND .
SMALL COMPANY EQUITY FUND . INTERNATIONAL EQUITY FUND
- ----------------------
SEMI-ANNUAL
REPORT
FOR THE SIX MONTHS
ENDED APRIL 30, 1997
- ----------------------
<PAGE>
- ----------
CHAIRMAN'S
MESSAGE
- ----------
Dear Shareholder:
Stock prices showed solid improvement in the last six months. Ongoing
uncertainty about the economy, inflation and interest rates kept prices somewhat
volatile, however. This uncertainty also caused fluctuations in bond prices.
While such changes are typical of most market cycles, and were relatively
average by historical standards, mutual fund shareholders who found this
volatility unsettling might keep two time-tested investment strategies in mind
- -- diversification and dollar cost averaging.
First, a well-diversified portfolio of stock, bond and money market
instruments can help reduce market risk over time and smooth out your returns.
Because individual asset classes often respond differently to the same economic
conditions, using several classes improves the chance that you will usually have
some investments that perform well. A regular review of your portfolio with your
financial professional can keep your investments properly diversified for your
long-term goals and tolerance for risk.
A second strategy, known as "dollar cost averaging" can also help to
stabilize your returns. This strategy, in which you invest the same amount of
money in mutual funds each month, helps you buy more shares when their prices
are low and fewer shares when their prices are high. Although dollar cost
averaging can't guarantee you a profit, or protect against a loss, it can
minimize the effect of market fluctuations for long-term investors.*
The Galaxy Automatic Investment Program offers a simple way to take
advantage of dollar cost averaging. Under the program, you can bypass the normal
$2,500 minimum initial fund investment by putting $50 into a fund each month.
Your investment will be automatically deducted from your money market checking
account or any bank or savings account.
The enclosed report covers the performance of the Galaxy equity funds for
the six months ended April 30, 1997. Inside you'll find a Market Overview, that
describes the major economic and market trends during this period, as well as
individual Portfolio Reviews, which discuss how Fleet Investment Advisors Inc.
managed each of the funds to make the most of this environment.
Should you have questions about this report, or want information on dollar
cost averaging and the Galaxy Automatic Investment Program, please contact the
Galaxy Service Center at 1- 800-628-0414.
Sincerely,
/s/ Dwight E.Vicks, Jr.
Dwight E.Vicks, Jr.
Chairman of the Board of Trustees
MUTUAL FUNDS:
O ARE NOT BANK DEPOSITS
O ARE NOT FDIC INSURED
O ARE NOT OBLIGATIONS OF FLEET BANK
O ARE NOT GUARANTEED BY FLEET BANK
O ARE SUBJECT TO INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED
* Dollar Cost Averaging does not assure a profit or protect against a loss in
declining markets. Since such a strategy involves continuous investment in
securities regardless of price fluctuations, you should consider your financial
ability to continue purchases through low price levels.
<PAGE>
- ---------------
MARKET OVERVIEW
- ---------------
EQUITY MARKET OVERVIEW
"Stocks of larger companies enjoyed the
strongest gains, while stocks of
smaller firms tended to lag."
By Fleet Investment Advisors Inc.
Stock prices improved strongly in the six months ended April 30, 1997,
advancing to record highs. Prices gained on solid earnings growth, moderate
inflation and strengthening demand for stocks against tighter supply. Stock
prices fluctuated throughout the period and corrected sharply in March and
April. These fluctuations occurred largely when the economy showed signs of
strengthening and investors became worried about future inflation and higher
interest rates.
Stocks of larger companies enjoyed the strongest gains, while stocks of
smaller firms tended to lag. This is typical in times of uncertainty, when
investors tend to favor the greater liquidity and more dependable earnings of
larger firms. As stock prices rose, and investors searched for pockets of value,
they continued to move quickly between different industry sectors.
By staying focused on stocks of high-quality companies with proven
earnings, the Galaxy equity funds enjoyed solid returns during the period. These
returns, in most instances, compared well with their market benchmarks and funds
with similar investment objectives.
ECONOMY WATCH
In November 1996, when the period began, inflation was about 3%, and
interest rates were falling. The Commerce Department reported that the gross
domestic product ("GDP") -- which measures U.S. goods and services -- had
improved at an annualized rate of 2.1% in the third quarter of 1996, down from
4.7% in the second quarter. Investors were also encouraged by the results of
federal elections that indicated new progress in balancing the federal budget.
With continued growth in earnings and a positive balance of stock demand
and supply, equities performed well in this environment. The strong flows of
cash into stock mutual funds that had raised prices earlier in 1996 continued as
the year drew to a close. While demand for stocks was growing, company stock
repurchase programs and further mergers and acquisitions continued to shrink
market supplies. Although prices dipped in December, they quickly recovered. At
the end of 1996 the Dow Jones Industrial Average stood at 6448 -- up 7% from
November 1.
Performance At-A-Glance
Average Annual Returns* as of April 30, 1997
Trust Shares
ASSET ALLOCATION FUND Inception Date 12/30/91
Six Months* ............................................. 7.71%
1 Year .................................................. 16.27%
3 Years ................................................. 16.80%
5 Years ................................................. 12.36%
Life of Fund ............................................ 11.30%
EQUITY INCOME FUND Inception Date 12/14/90
Six Months* ............................................. 10.87%
1 Year .................................................. 18.45%
3 Years ................................................. 19.59%
5 Years ................................................. 14.05%
Life of Fund ............................................ 14.58%
GROWTH AND INCOME FUND Inception Date 12/14/92
Six Months* ............................................. 12.70%
1 Year .................................................. 18.39%
3 Years ................................................. 20.54%
Life of Fund ............................................ 16.15%
EQUITY VALUE FUND Inception Date 9/1/88
Six Months* ............................................. 9.87%
1 Year .................................................. 19.09%
3 Years ................................................. 19.78%
5 Years ................................................. 14.99%
Life of Fund ............................................ 13.84%
EQUITY GROWTH FUND Inception Date 12/14/90
Six Months* ............................................. 10.41%
1 Year .................................................. 18.50%
3 Years ................................................. 21.06%
5 Years ................................................. 14.39%
Life of Fund ............................................ 15.59%
SMALL CAP VALUE FUND Inception Date 12/14/92
Six Months* ............................................. 5.10%
1 Year .................................................. 10.24%
3 Years ................................................. 18.87%
Life of Fund ............................................ 14.76%
SMALL COMPANY EQUITY FUND Inception Date 12/30/91
Six Months* ............................................. -13.84%
1 Year .................................................. -15.35%
3 Years ................................................. 14.33%
5 Years ................................................. 16.15%
Life of Fund ............................................ 11.62%
INTERNATIONAL EQUITY FUND Inception Date 12/30/91
Six Months* ............................................. 8.84%
1 Year .................................................. 6.26%
3 Years ................................................. 8.15%
5 Years ................................................. 10.32%
Life of Fund ............................................ 9.38%
*Six months returns are unannualized total returns.
<PAGE>
- ---------------
MARKET OVERVIEW
- ---------------
" In the final weeks of April, however,
with inflation still moderate and new
signs that the economy was cooling,
investors became less concerned that
another rate hike was imminent. Bond
yields fell, and stock prices rose --
pushing the Dow to 7009 by month's
end."
Stocks continued to rise in the first months of 1997, although they soon
became more volatile. The Commerce Department reported that the rate of GDP
growth for the fourth quarter of 1996 had accelerated to 4.7%. Although the
Commerce Department later revised its fourth quarter estimate to 3.8%, and the
inflation rate fell to 2.5%, investors worried that strong consumer demand and
tight labor markets might rekindle inflation and stunt future growth. Throughout
1997's first quarter, investors waited for the Federal Reserve (the "Fed") to
slow growth -- and what Fed Chairman Alan Greenspan called an "irrational
exuberance" in stock prices -- by raising short-term interest rates. At the end
of March, the Fed fulfilled these expectations and boosted its Fed Funds rate by
25 basis points.
As the anticipation of further rate hikes pushed bond yields higher, stock
prices fell sharply -- with the Dow losing nearly 10% in value. In the final
weeks of April, however, with inflation still moderate and new signs that the
economy was cooling, investors became less concerned that another rate hike was
imminent. Bond yields fell, and stock prices rose -- pushing the Dow to 7009 by
month's end.
Overseas, stock markets were mixed for the period. Many markets advanced
strongly -- in response to the rally in U.S. stocks and earlier declines in
foreign interest rates. European markets were the top performers over this time.
Stock prices retreated in Japan, however, over concerns about the nation's
economic recovery and financial structure. Other Asian markets, whose economies
are closely tied to Japan, also underperformed.
ATTENTION TO VALUE AND EARNINGS
As U.S. stock prices rose, investors gave increasing attention to shares
that offered reliable earnings and good value. These trends were particularly
evident in the small-company sector. Because larger companies have proven
earnings records and often dominate their markets, future growth in their
earnings tends to be more predictable than the earnings growth of smaller firms.
Performance At-A-Glance
Average Annual Returns* as of April 30, 1997
Retail A Shares
ASSET ALLOCATION FUND Inception Date 12/30/91
Six Months* ............................................. 3.62%
1 Year .................................................. 11.76%
3 Years ................................................. 15.12%
5 Years ................................................. 11.39%
Life of Fund ............................................ 10.39%
EQUITY INCOME FUND Inception Date 12/14/90
Six Months* ............................................. 6.53%
1 Year .................................................. 13.58%
3 Years ................................................. 17.58%
5 Years ................................................. 12.91%
Life of Fund ............................................ 13.67%
GROWTH AND INCOME FUND Inception Date 2/12/93
Six Months* ............................................. 8.40%
1 Year .................................................. 13.74%
3 Years ................................................. 18.66%
Life of Fund ............................................ 15.46%
EQUITY VALUE FUND Inception Date 9/1/88
Six Months* ............................................. 5.57%
1 Year .................................................. 14.22%
3 Years ................................................. 17.83%
5 Years ................................................. 13.86%
Life of Fund ............................................ 13.19%
EQUITY GROWTH FUND Inception Date 12/14/90
Six Months* ............................................. 6.07%
1 Year .................................................. 13.60%
3 Years ................................................. 19.09%
5 Years ................................................. 13.27%
Life of Fund ............................................ 14.70%
SMALL CAP VALUE FUND Inception Date 2/12/93
Six Months* ............................................. 1.05%
1 Year .................................................. 5.82%
3 Years ................................................. 17.06%
Life of Fund ............................................ 14.08%
SMALL COMPANY EQUITY FUND Inception Date 12/30/91
Six Months* ............................................. -17.31%
1 Year .................................................. -18.91%
3 Years ................................................. 12.33%
5 Years ................................................. 14.93%
Life of Fund ............................................ 10.51%
INTERNATIONAL EQUITY FUND Inception Date 12/30/91
Six Months* ............................................. 4.36%
1 Year .................................................. 1.55%
3 Years ................................................. 6.22%
5 Years ................................................. 9.14%
Life of Fund ............................................ 8.27%
*Six months returns are unannualized total returns.
**Return figures have been restated to include the effect of the maximum 3.75%
front-end sales charge which became effective on December 1, 1995.
<PAGE>
- ---------------
MARKET OVERVIEW
- ---------------
"During this period, we emphasized
companies with good earnings
visibility. This led us to focus on
leading companies in industries with
solid earnings prospects -- such as
technology, health care, finance and
energy. "
Uncertain about where the economy was headed, investors thus favored
larger companies over smaller ones during the period. Within the small-cap
sector, however, stocks whose prices were particularly attractive compared to
prospective earnings fared better than stocks that were more fully valued.
During this period, we emphasized companies with good earnings visibility.
This led us to focus on leading companies in industries with solid earnings
prospects -- such as technology, health care, finance and energy. We also
stressed shares whose prices represented reasonable or above-average value. As
the prices for individual issues met or exceeded our expectations, we sold those
stocks and purchased others with better value and appreciation potential.
SLOWER GROWTH, STABLE INFLATION
While the economy may vacillate between periods of excessive strength and
weakness, Fleet Investment Advisors Inc. believes that growth will moderate to
below 3% in the second half of 1997 -- as higher interest rates, the strong U.S.
dollar and an aging business cycle take their toll. A 5.6% GDP growth rate
reported by the Commerce Department for the first quarter of 1997 may still
indicate increased economic strength that would cause the Fed to raise interest
rates modestly. As slower growth takes hold, however, inflation should remain
moderate and interest rates could stabilize and even decline.
The combination of high valuations and economic uncertainty may cause
further stock market weakness in coming months -- especially if slower growth
brings earnings disappointments. Some of the Galaxy equity funds may maintain
cash reserves on hand to make the most of new investment opportunities that such
a weakness might bring. In the meantime, we will continue to focus on companies
with demonstrated earnings strength and attractive valuations.
PERFORMANCE AT-A-GLANCE
Average Annual Returns* as of April 30, 1997
Retail B Shares**
ASSET ALLOCATION FUND
Inception Date 3/4/96
Six month returns before contingent deferred sales
charge deducted. ................................................... 7.32%
Six month returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period. ....................... 2.32%
One year returns before contingent deferred sales charge deducted. ... 15.51%
One year returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 10.51%
Life of fund returns before contingent deferred sales charge deducted. 13.36%
Life of fund returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 9.96%
GROWTH AND INCOME FUND
Inception Date 3/4/96
Six month returns before contingent deferred sales
charge deducted. ................................................... 12.20%
Six month returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period. ....................... 7.20%
One year returns before contingent deferred sales charge deducted. ... 17.25%
One year returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 12.25%
Life of fund returns before contingent deferred sales charge deducted. 16.96%
Life of fund returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 13.58%
EQUITY VALUE FUND
Inception Date 3/4/96
Six month returns before contingent deferred sales
charge deducted. ................................................... 9.36%
Six month returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period. ....................... 4.51%
One year returns before contingent deferred sales charge deducted. ... 18.03%
One year returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 13.03%
Life of fund returns before contingent deferred sales charge deducted. 16.22%
Life of fund returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 12.83%
EQUITY GROWTH FUND
Inception Date 3/4/96
Six month returns before contingent deferred sales
charge deducted. ................................................... 9.83%
Six month returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period. ....................... 4.83%
One year returns before contingent deferred sales charge deducted. ... 17.36%
One year returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 12.36%
Life of fund returns before contingent deferred sales charge deducted. 15.86%
Life of fund returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ 12.47%
SMALL COMPANY EQUITY FUND
Inception Date 3/4/96
Six month returns before contingent deferred sales
charge deducted. ................................................... -14.39%
Six month returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period. ....................... -18.16%
One year returns before contingent deferred sales charge deducted. ... -16.24%
One year returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ -19.93%
Life of fund returns before contingent deferred sales charge deducted. -1.09%
Life of fund returns after contingent deferred sales charge deducted
as if shares were redeemed at end of period ........................ -4.11%
*Six months returns are unannualized total returns.
**Retail B Shares are subject to a 5.00% contingent deferred sales charge if
shares are redeemed within the first year. The charge decreases to 4.00%,
3.00%, 3.00%, 2.00% and 1.00% for redemptions made during the second through
sixth years, resectively. Retail B shares automatically convert to Retail A
Shares after six years. Total returns are from the date of inception.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- ------------------
Photo of Don Jones
- ------------------
Don Jones
GALAXY ASSET
ALLOCATION FUND
Distribution of Total Net Assets
as of April 30, 1997
Common Stocks ............................................................ 49%
U.S. Government & Agency Obligations & Net Other Assets & Liabilities .... 32%
Corporate Notes & Bonds .................................................. 17%
Asset-Backed Securities .................................................. 2%
GALAXY ASSET
ALLOCATION FUND
Growth of $10,000 investment*
Galaxy Galaxy Galaxy
Asset Allocation Asset Allocation Asset Allocation
S&P 500 Retail A Shares Trust Shares Retail B Shares
------- --------------- ---------------- ---------------
12/30/91 10,000 9,625 10,000
92 10,295 9,899 10,285
93 11,830 11,124 11,558
94 12,284 10,900 11,335
95 15,528 13,452 14,019 10,000
96 19,270 15,728 16,429 10,271
4/30/97 22,105 16,937 17,969 11,160
*Since inception on 12/30/91 for Trust and Retail A Shares. Since inception on
3/4/96 for Retail B Shares. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. Performance figures for Retail B
Shares reflect the deduction of the maximum 5.00% contingent deferred sales
charge as if shares were redeemed on April 30, 1997 . The S&P 500 is an
unmanaged index in which investors cannot invest. Results for the index do not
reflect the expenses and investment management fees incurred by the Fund.
GALAXY ASSET ALLOCATION FUND
By Don Jones
Portfolio Manager
With stock prices at all-time highs, we reduced stock investments in the
Galaxy Asset Allocation Fund over the last six months and increased investments
in bonds. We felt that with stock prices vulnerable to correction, bonds
represented good relative value.
For the six months ended April 30, 1997, this blend of investments helped
the Fund's Trust Shares earn a total return of 7.71%. For the same period, its
Retail A Shares returned 7.68%, before the deduction of the maximum 3.75%
front-end sales charge, and its Retail B Shares returned 7.32%, before the
deduction of the maximum 5.00% contingent deferred sales charge. (Please see the
chart on page 2 for total returns after deduction of the front-end sales charge
and, on page 3 for returns after deduction of the contingent deferred sales
charge.)
These returns compare with a return of 5.95% for the average flexible fund
tracked by Lipper Analytical Services ("Lipper"). During the same time, the
Standard & Poor's 500 Composite Stock Index ("S&P 500 Index"), which tracks the
performance of stocks only, returned 14.72%.
ADDING INCOME INVESTMENTS
We began to add bond investments in the third quarter of 1996, when bond
prices were especially attractive. As the recent six-month reporting period
began, fixed-income investments represented about 31% of the Fund's portfolio.
During the fourth quarter of 1996, we increased this allocation to 35% and
exchanged Treasury issues for high-grade asset-backed securities to enhance the
Fund's yield. As interest rates fell in the fourth quarter, this shift in
allocations helped us take advantage of gains in bond prices.
In the first quarter of 1997, we added more bond investments to the
portfolio -- boosting the allocation to 40%. We gave special attention to high
quality corporate bonds to further improve the Fund's yield. By the end of
April, corporate issues accounted for about half of the Fund's bond investments.
As interest rates rose, and bond prices fell, we added longer-term issues to the
income side so we could lock in the higher yields for more time.
To make these changes, we took profits in certain technology, consumer
staples and banking stocks. As we found attractive prices, we added selected
shares of telephone, technology-service, capital goods, basic materials and
insurance firms -- as well as shares of a real estate investment trust. We also
traded stocks of certain consumer-related firms and banks for those with better
potential. Despite a few individual disappointments on the stock side, we had
many strong performers -- including some of the new names we'd added during the
period.
FUTURE STRATEGIES
We believe further uncertainty about the economy may bring further
weakness in the prices of stocks and bonds. If this happens, we plan to continue
to look for opportunities to add attractively priced issues in both sectors.
With this in mind, we are keeping the Fund's cash reserves near 20%.
If inflation stays near 3%, returns from bonds should remain appealing
when long-term yields are above 7%. We expect, therefore, to maintain a large
commitment to fixed-income securities -- and increase the Fund's position there
if interest rates head higher.
On the stock side, we will probably remain overweighted in shares of
technology firms, believing that the sector continues to offer strong potential
for long-term growth. As before, we will focus on larger firms with visible
earnings that can hold up well under future market uncertainty. We feel that the
higher stock prices go, the more important the selection of individual issues
will be.
Don Jones became manager of the Galaxy Asset Allocation Fund in April 1995. He
has managed investment portfolios for Fleet Investment Advisors Inc. and its
predecessors since 1988.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- -----------------------
[Photo of Ed Klisiewicz
- -----------------------
Ed Klisiewicz
GALAXY EQUITY
INCOME FUND
Distribution of Total Net Assets
as of April 30, 1997
U.S. Government & Agency Obligations & Net Other Assets & Liabilities .... 19%
Consumer Staples ......................................................... 18%
Utilities ................................................................ 12%
Energy ................................................................... 11%
Finance .................................................................. 10%
Consumer Cyclical ........................................................ 9%
Capital Goods & Construction ............................................. 7%
Other Common Stocks ...................................................... 8%
Technology ............................................................... 6%
GALAXY EQUITY
INCOME FUND
Growth of $10,000 investment*
Galaxy Galaxy
Equity Income Equity Income
S&P 500 Retail A Shares Trust Shares
------- --------------- ------------
12/14/90 10,000 9,625 10,000
91 12,358 11,127 11,561
92 13,589 12,207 12,683
93 15,615 13,654 14,186
94 16,215 14,055 14,615
95 20,497 17,179 17,948
96 25,437 20,445 21,475
4/30/97 29,179 22,630 23,809
*Since inception on 12/14/90. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. The S&P 500 is an unmanaged index
in which investors cannot invest. Results for the index do not reflect the
expenses and investment management fees incurred by the Fund.
GALAXY EQUITY INCOME FUND
By Ed Klisiewicz
Portfolio Manager
Stocks with strong dividends performed relatively well in the last six
months. When interest rates were falling, the stocks attracted investors who
wanted stronger yields. When rates rose, the added income from these stocks
helped to minimize their price declines.
With good performances by individual holdings -- particularly shares of
drug and other consumer staples firms -- the Galaxy Equity Income Fund earned
solid returns during the period. For the six months ended April 30, 1997, the
Fund's Trust Shares had a total return of 10.87%. Over the same time, Retail A
Shares had a total return of 10.69%, before the deduction of the maximum 3.75%
front-end sales charge. (Please see the chart on page 2 for total returns after
deduction of the front-end sales charge.)
Those returns compare to a return of 9.97% for the average equity income
fund tracked by Lipper and a return of 14.72% for the S&P 500 Index.
HELP FROM BANKING AND HEALTH CARE STOCKS
At the end of 1996, the Fund enjoyed good returns from the stocks of
smaller regional banks -- which benefited from falling interest rates and
further mergers and acquisitions in their industry. During this time we took
profits in various technology and utility stocks whose prices had reached our
targets and increased positions in energy and basic materials stocks whose
prices were more attractive.
The Fund's financial stocks continued to perform well in the first months
of 1997. The Fund also earned good returns from its energy investments and from
shares of consumer staples firms. The best gains came from large drug and health
care companies, where the Fund has been overweighted compared to its benchmark.
At this point we began to trade shares of banks with the strongest appreciation
for bank stocks with better price potential. We also added shares of a real
estate investment trust ("REIT") to the portfolio.
FURTHER POTENTIAL
FROM CONSUMER STAPLES
If higher interest rates help to slow economic growth, as we believe they
will, consumer staples issues should continue to perform well. We expect,
therefore, to keep sizable investments in this area. Although utility stocks
have underperformed over the past six months, and we've trimmed the Fund's
investments in that sector, we think high quality utilities offer good value and
should remain a large part of the Fund.
Because we think stocks could be vulnerable to correction and cash returns
have become more competitive, we're keeping cash reserves of about 20%. These
reserves should let us take advantage of new investment opportunities that
further price weakness may produce. We continue to like the potential that REITs
seem to offer and will probably look for additional investment in that sector
that offer strong earnings and attractive income streams.
Ed Klisiewicz has been portfolio manager of the Galaxy Equity Income Fund since
its inception in December of 1990. He has managed portfolios for Fleet
Investment Advisors Inc. and its predecessors since 1970.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- --------------------------
[Photo of Brendan Henebry]
- --------------------------
Brendan Henebry
GALAXY GROWTH
AND INCOME FUND
Distribution of Total Net Assets
as of April 30, 1997
Consumer Staples ......................................................... 17%
Finance .................................................................. 14%
Technology ............................................................... 13%
Consumer Cyclical ........................................................ 11%
Energy ................................................................... 9%
U.S. Agency Obligation & Net Other Assets & Liabilities .................. 9%
Capital Goods ............................................................ 8%
Utilities ................................................................ 7%
Basic Materials .......................................................... 6%
Other Preferred & Common Stocks .......................................... 6%
GALAXY GROWTH
AND INCOME FUND
Growth of $10,000 investment*
Galaxy Galaxy Galaxy
Growth and Income Growth and Income Growth and Income
S&P 500 Retail A Shares Trust Shares Retail B Shares
------- --------------- ----------------- -----------------
92 10,000 9,625 10,000
93 10,890 10,457 10,880
94 11,548 11,410 11,908
95 14,601 13,522 14,147 10,000
96 18,120 16,261 17,085 10,183
4/30/97 20,785 19,255 19,255 11,586
*Since inception on 12/14/92 for Trust Shares and 2/12/93 for Retail A Shares.
Since inception on 3/4/96 for Retail B Shares. Performance figures for Retail A
Shares have been restated to include the effect of the maximum 3.75% front-end
sales charge which became effective on December 1, 1995. Performance figures
for Retail B Shares reflect the deduction of the maximum 5.00% contingent
deferred sales charge as if shares were redeemed on April 30, 1997 . The S&P
500 is an unmanaged index in which investors cannot invest. Results for the
index do not reflect the expenses and investment management fees incurred by
the Fund.
GALAXY GROWTH AND INCOME FUND
Brendan Henebry
Portfolio Manager
As stock prices rose further in the last six months, investors continued
to "rotate" from one market sector to another as they searched for stocks with
the best value versus their potential for growth. In this environment, we
maintained sizable cash reserves that we could put to work as individual sectors
fell out of favor and their prices became more attractive. We also added to
sectors that we thought investors might favor. These strategies helped the
Galaxy Growth and Income Fund earn solid returns and outperform other funds with
similar investment objectives.
In the six months ended April 30, 1997, the Fund's Trust Shares had a
total return of 12.70%. Over the same time Retail A Shares earned 12.65%, before
the deduction of the maximum 3.75% front-end sales charge, and Retail B Shares
earned 12.20%, before the deduction of the maximum 5.00% contingent deferred
sales charge. (Please see the chart on page 2 for total returns after deduction
of the front-end sales charge and, on page 3 for returns after deduction of the
contigent deferred sales charge.)
For the same period, the average growth and income fund tracked by Lipper
had a return of 10.43%, while the S & P 500 Index had a return of 14.72%.
PUTTING CASH TO WORK
In the final months of 1996, the Fund enjoyed relatively strong
performances from investments in finance, consumer staples and health care
stocks -- which benefited from steady improvements in earnings and falling
interest rates. As prices advanced, we trimmed holdings in sectors that had
performed well and boosted holdings in sectors that could continue to advance in
an uncertain market. In doing so, we increased positions in banking and energy
stocks.
During the first months of 1997, the Fund earned strong returns from its
energy shares -- particularly those of oil-service firms. The Fund's financial
stocks also performed well, along with its retail investments. As it became more
apparent that interest rates could rise, we sold enough banking stocks, when
their prices were strong, to underweight this sector relative to the Fund's
market benchmark. This let us build upon holdings of insurance and financial
services firms, as well as shares of a building supply company. Later on, we
took profits in selected drug stocks. As stock prices became more attractive
during the corrections, we purchased shares of technology, basic industry,
consumer cyclical and specialty chemical firms -- as well as additional shares
of insurance companies. Having let the Fund's cash reserves rise to 11%, we
reduced reserves to about 8% during the correction.
PREPARING FOR SLOWER GROWTH
We expect to maintain moderate reserves in coming months. If the economy
grows more slowly, and corporate earnings ebb enough to weaken stock prices,
these reserves would let us take advantage of new investment opportunities that
could occur.
In the meantime, we expect to emphasize stocks that could perform well in
a slowing economy -- such as shares of technology, energy and insurance firms.
As always, we will maintain a well-diversified portfolio of high-quality stocks
that can provide a good income stream.
Brendan Henebry has managed the Galaxy Growth and Income Fund since inception.
He has managed equity portfolios since 1969.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- -----------------------
[Photo of G. Jay Evans]
- -----------------------
G. Jay Evans
GALAXY EQUITY
VALUE FUND
Distribution of Total Net Assets
as of April 30, 1997
Other Common Stocks ...................................................... 9%
Technology ............................................................... 19%
Capital Goods & Construction ............................................. 6%
Finance .................................................................. 19%
Consumer Cyclical ........................................................ 16%
Consumer Staples ......................................................... 16%
Energy ................................................................... 6%
U.S. Agency Obligation & Net Other Assets & Liabilities .................. 9%
GALAXY EQUITY
VALUE FUND
Growth of $10,000 investment*
Galaxy Galaxy Galaxy
Equity Value Equity Value Equity Value
S&P 500 Retail A Shares Trust Shares Retail B Shares
------- --------------- ------------ ---------------
87 10,000 9,625 10,000
88 10,731 10,019 10,410
89 13,552 11,441 11,887
90 12,537 10,362 10,766
91 16,737 13,517 14,045
92 18,404 14,282 14,839
93 21,148 17,307 17,982
94 21,960 18,167 18,889
95 27,760 21,948 22,915 10,000
96 34,450 26,663 27,968 10,380
4/30/97 39,518 29,241 30,728 11,498
*Since inception on 9/1/88 for Trust and Retail A Shares. Since inception on
3/4/96 for Retail B Shares. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. Performance figures for Retail B
Shares reflect the deduction of the maximum 5.00% contingent deferred sales
charge as if shares were redeemed on April 30, 1997 . The S&P 500 is an
unmanaged index in which investors cannot invest. Results for the index do not
reflect the expenses and investment management fees incurred by the Fund.
GALAXY EQUITY VALUE FUND
By G. Jay Evans, CFA
Portfolio Manager
The economy surprised investors with its strength over the six months
ended April 30, 1997, and, even more remarkably, achieved a growth rate near 5%
with little apparent inflation. The stock market moved to an all-time high --
despite concern that tight employment would lead to wage-driven inflation.
During this time, Trust Shares of the Galaxy Equity Value Fund earned a total
return of 9.87%. For the same period, Retail A Shares returned 9.67%, before the
deduction of the maximum 3.75% front-end sales charge, and Retail B Shares
returned 9.36%, before the deduction of the maximum 5.00% contingent deferred
sales charge. (Please see the chart on page 2 for total returns after deduction
of the front-end sales charge and, on page 3 for returns after deduction of the
contigent deferred sales charge.)
Over the same six-month period, the average growth and income fund tracked
by Lipper earned a return of 10.43% and the S&P 500 Index returned 14.72%. The
Fund's performance was hurt by the strength of large capitalization, consumer
growth issues -- which were underweighted in the Fund versus its benchmarks.
Large cap, consumer growth issues often win favor late in a business cycle
because of their low economic sensitivity and easy tradability. Selling waves
that hit technology stocks in mid-winter, and financial stocks as spring
approached, also dampened the Fund's returns.
TECHNOLOGY AND FINANCIAL SECTORS
Over the last several years, market leadership has resided in the hands of
the technology and financial sectors -- areas that the Fund has overweighted for
some time. Although these leadership groups suffered major corrections during
the period, they later recovered and carried the market to new highs. Technology
stocks, can be thought of as the soul of the market's advance in the past two
years, and the banks, the financial backbone in this analogy. These two areas
remain important to the performance of the Fund. Indeed, it's difficult to see
the market advance significantly further without the leadership of these
sectors.
During the period strength in several retail issues -- driven by increased
consumer confidence -- offset the weakness in technology and banking stocks
somewhat. The Fund also benefited from its solid position in health care stocks
and its overweighting in airline issues.
LOOKING AHEAD
The Galaxy Equity Value Fund would clearly benefit from the not-too-hot,
not-too-cold moderation and extension of the current economic expansion that the
Fed intends to impose. Such an environment would encourage investors to venture
beyond the security of large consumer growth issues and take positions in the
out-of-favor, overlooked, low-priced stocks that our valuation models continue
to identify.
Value as a style has historically outperformed growth when consumer
confidence is strong. That is the condition today, and should remain the case
unless there is a significant change in the economic or political backdrop.
Ample opportunity should thus exist for our valuation system to identify
mispriced stocks that can add to shareholder returns.
G. Jay Evans has managed the Galaxy Equity Value Fund since April 1992. He has
managed value-oriented portfolios for Fleet Investment Advisors Inc. and its
predecessors since 1981.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- ------------------------
[Photo of Bob Armknecht]
- ------------------------
Bob Armknecht
GALAXY EQUITY
GROWTH FUND
Distribution of Total Net Assets
as of April 30, 1997
Consumer Staples ......................................................... 22%
Technology ............................................................... 17%
Energy ................................................................... 14%
Preferred & Other Common Stocks .......................................... 12%
Finance .................................................................. 11%
Capital Goods & Construction ............................................. 8%
Consumer Cyclical ........................................................ 8%
U.S. Agency Obligation & Net Other Assets & Liabilities .................. 8%
GALAXY EQUITY
GROWTH FUND
Growth of $10,000 investment*
Galaxy Galaxy Galaxy
Equity Growth Equity Growth Equity Growth
S&P 500 Retail A Shares Trust Shares Retail B Shares
------- --------------- ------------ ---------------
90 10,000 9,625 10,000
91 12,358 11,683 12,139
92 13,589 12,747 13,244
93 15,615 13,840 14,380
94 16,215 14,494 15,070
95 20,497 18,051 18,849 10,000
96 23,319 21,753 22,813 10,295
4/30/97 26,749 23,968 25,187 11,456
*Since inception on 12/14/90 for Trust and Retail A Shares. Since inception on
3/4/96 for Retail B Shares. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. Performance figures for Retail B
Shares reflect the deduction of the maximum 5.00% contingent deferred sales
charge as if shares were redeemed on April 30, 1997 . The S&P 500 is an
unmanaged index in which investors cannot invest. Results for the index do not
reflect the expenses and investment management fees incurred by the Fund.
GALAXY EQUITY GROWTH FUND
By Bob Armknecht
Portfolio Manager
As investors remained uncertain about the economy in past six months,
three strategies guided our investments for the Galaxy Equity Growth Fund.
First, we emphasized growth stocks of large companies, whose earnings tend to be
more reliable. Second, we focused on stocks of health care, energy, technology
and financial firms -- for which we believed the prospects of long-term earnings
growth was quite strong. Third, we periodically reduced stocks that had
performed well to provide buying power during times of weakness.
These strategies helped the Fund's Trust Shares earn a total return of
10.41% for the six months ended April 30, 1997. Over the same time, Retail A
Shares earned 10.18%, before the deduction of the 3.75% maximum front-end sales
charge, and Retail B Shares earned 9.83%, before the deduction of the 5.00%
maximum contingent deferred sales charge. (Please see the chart on page 2 for
total returns after deduction of the front-end sales charge and, on page 3 for
returns after deduction of the contigent deferred sales charge.)
Those returns compare with an average return of 7.16% for growth funds
tracked by Lipper, and a return of 14.72% for the S&P 500 Index.
CORE INVESTMENTS
The Fund's investments in health care, energy, technology and financial
firms performed well from the start of the period -- offsetting weak returns
from certain stocks in the capital goods sector. As we took profits in issues
with solid gains to buy shares with more room to grow, we increased the Fund's
position in energy service firms.
We remained focused on large cap companies and our four core sectors in
the first months of 1997. As stock prices became vulnerable to a correction,
however, we trimmed certain holdings in technology and consumer-related firms
whose valuations had become especially high. At the same time we added stocks of
energy, telephone and retail firms -- giving special attention to shares that
could give the Fund dividend income. We further increased income by adding
convertible bonds and raising the Fund's cash reserves.
When stock prices corrected in March and April, we invested these
additional cash reserves in issues with attractive valuations. In making these
investments, we continued to stress our core investment areas.
EARNINGS POTENTIAL
IN A SLOWER ECONOMY
We believe the same core areas will serve the Fund well in coming months.
All represent strong potential for growth even if the economy loses steam.
Energy firms should benefit from a need for extra supply, while technology firms
should prosper from product developments in software, computers and
communications systems. Health care firms should earn more as companies develop
new drugs, while financial firms should benefit from ongoing consolidation in
their industry and demographics that favor higher levels of savings.
After rising as high as 12% in recent months, the Fund's cash reserves are
now near 7%. The decline represents the timely purchases of some temporarily
depressed stocks. But this level should give us ample resources to take
advantage of new investment opportunities if the economy slows and stock prices
correct again.
Bob Armknecht has been managing the Galaxy Equity Growth Fund since its
inception in December 1990. He has managed equity portfolios for Fleet
Investment Advisors Inc. since 1988.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- -----------------------
[Photo of Peter Larson]
- -----------------------
Peter Larson
GALAXY SMALL CAP
VALUE FUND
Distribution of Total Net Assets as of April 30, 1997
Technology ............................................................... 21%
Finance .................................................................. 16%
Consumer Cyclical ........................................................ 17%
Corporate Bond & U.S. Agency Obligation & Net Other Assets & Liabilities . 10%
Energy ................................................................... 11%
Capital Goods & Construction ............................................. 9%
Consumer Staples ......................................................... 9%
Other Common Stocks ...................................................... 7%
GALAXY SMALL CAP
VALUE FUND
Growth of $10,000 investment*
Galaxy Galaxy
Russell Small Cap Value Small Cap Value
2000 Retail A Shares Trust Shares
------- --------------- ---------------
92 10,000 9,625 10,000
93 10,890 10,789 11,212
94 11,548 10,967 11,420
95 14,601 13,299 13,878
96 17,025 16,593 17,378
4/30/97 17,299 17,416 18,264
*Since inception on 12/14/92 for Trust Shares and 2/12/93 for Retail A Shares.
Performance figures for Retail A Shares have been restated to include the
effect of the maximum 3.75% front-end sales charge which became effective on
December 1, 1995. The Russell 2000 is an unmanaged index in which investors
cannot invest. Results for the index do not reflect the expenses and investment
management fees incurred by the Fund.
GALAXY SMALL CAP VALUE FUND
By Peter Larson
Portfolio Manager
Over the last six months investor confusion over the direction of the
economy favored stocks with greater earnings reliability. Since the earnings
records of many smaller companies are relatively short, the stocks of these
firms tended to underperform the stocks of larger corporations with proven
earnings records. Stocks of smaller companies whose prices offered good value
tended to fare somewhat better than those characterized by traditionally strong
growth potential, however, as investors looked for opportunities in an
increasingly expensive market. With its focus on value-oriented investments, the
Galaxy Small Cap Value Fund weathered this environment comparatively well. The
Fund also benefited by eliminating stocks that had appreciated strongly in price
for stocks with better potential for gains.
For the six months ended April 30, 1997, the Fund's Trust Shares earned a
total return of 5.10%. Over the same time, Retail A Shares earned 4.96%, before
the deduction of the maximum 3.75% front-end sales charge. (Please see the chart
on page 2 for total returns after deduction of the front-end sales charge.)
These returns compare to -3.50% earned by the average small company growth
fund tracked by Lipper and 1.52% earned by the Russell 2000 Index.
ADDING VALUE
Early in the period the Fund benefited from strong performance by stocks
of energy, basic materials and consumer staples firms. As certain stocks met our
price expectations, we took profits in those issues and bought shares that we
felt had better value. We made many of these trades in the technology sector,
where prices had risen quite sharply.
The Fund's technology investments continued to perform well in the first
months of 1997. There were also solid returns from a number of mergers of
portfolio holdings. Six of the companies in the Fund's portfolio were acquired
in the early part of 1997. As individual stocks reached prices that we felt were
high compared to their potential earnings, we sold them and used the proceeds
for stocks whose prices seemed more attractive.
GREATER VALUE IN SMALLER FIRMS
We expect value-oriented stocks to remain in vogue while stock prices as a
whole remain high. Now that prices for large company stocks have advanced so
strongly, we believe investors will find value in an increasing number of
smaller company issues.
If higher interest rates bring slower economic growth and another
correction in stock prices, there may be many new investment opportunities for
the Galaxy Small Cap Value Fund. We are, therefore, keeping a solid cash reserve
that we could deploy as such opportunities occur. As we look for new
investments, we expect to stay focused on stocks with strong values that can
outpace other small company shares. In a market where earnings disappointments
are quickly punished, we will continue to be highly selective in our investments
and emphasize quality companies with good earnings visibility.
Peter Larson has managed the Galaxy Small Cap Value Fund, and its predecessor,
since 1992. He has managed small company portfolios since 1981.
<PAGE>
- -----------------
PORTFOLIO REVIEWS
- -----------------
- ------------------------
[Photo of Steve Barbaro]
- ------------------------
Steve Barbaro
GALAXY SMALL COMPANY
EQUITY FUND
Distribution of Total Net Assets
as of April 30, 1997
Technology ............................................................... 29%
Consumer Staples ......................................................... 20%
Energy ................................................................... 15%
Consumer Cyclical ........................................................ 14%
Capital Goods & Construction ............................................. 6%
Other Common Stocks ...................................................... 6%
Finance .................................................................. 5%
U.S. Agency Obligation & Net Other Assets & Liabilities .................. 5%
GALAXY SMALL COMPANY
EQUITY FUND
Growth of $10,000 investment*
Galaxy Galaxy Galaxy
Small Company Small Company Small Company
Russell Equity Equity Equity
2000 Retail A Shares Trust Shares Retail B Shares
------- --------------- ------------- ---------------
91 10,000 9,625 10,000
92 10,650 8,460 8,790
93 14,101 11,944 12,410
94 14,058 11,937 12,413
95 16,638 15,997 16,723 10,000
96 19,400 19,832 20,862 11,040
4/30/97 19,724 17,041 17,966 9,526
*Since inception on 12/30/91 for Trust and Retail A Shares. Since inception on
3/4/96 for Retail B Shares. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. Performance figures for Retail B
Shares reflect the deduction of the maximum 5.00% contingent deferred sales
charge as if shares were redeemed on April 30, 1997 . The Russell 2000 is an
unmanaged index in which investors cannot invest. Results for the index do not
reflect the expenses and investment management fees incurred by the Fund.
GALAXY SMALL COMPANY EQUITY FUND
By Steve Barbaro
Portfolio Manager
Although the economy continued to grow in the past six months, and there
were solid gains in corporate earnings, concerns about higher interest rates and
inflation kept investors nervous about future earnings potential. As a result,
investors gravitated toward the stocks of larger firms -- whose earnings tend to
be more reliable than earnings for stocks of smaller companies. After enjoying
exceptional gains the year before, stocks of most small companies suffered
losses over this time.
These losses were much worse for the growth-oriented stocks of small
companies, in which the Galaxy Small Company Equity Fund concentrates its
investments, than for the value-oriented stocks of small companies. In the six
months ended April 30, 1997, the Fund's Trust Shares had a total return of
- -13.84%. For the same period, Retail A Shares earned -14.08%, before the
deduction of the maximum 3.75% front-end sales charge and Retail B Shares earned
- -14.39%, before the deduction of the maximum 5.00% contingent deferred sales
charge. (Please see the chart on page 2 for total returns after deduction of the
front-end sales charge and, on page 3 for returns after deduction of the
contigent deferred sales charge.)
These returns compare with a return of 1.52% for the Russell 2000 Index
and, a return of -10.66% for the average small company growth fund tracked by
Morningstar, Inc., a mutual fund performance tracking service. Unlike the Lipper
small company fund group used for comparison in the past, the Morningstar group
does not include small company value funds. The Morningstar average will be used
as a comparison group for the Galaxy Small Company Equity Fund in the future.
FOCUS ON EARNINGS AND VALUE
In this environment, we gave extra emphasis to stocks with visible
earnings and reasonable value. This, plus a large weighting in energy stocks,
helped Fund returns at the end of 1996 -- when small company stocks began to lag
large company issues. During this time we took profits in higher-priced stocks
that had met our expectations, including shares of technology software and
service firms. We used the proceeds to purchase other stocks that offered better
value -- adding modestly to shares of health care and financial services firms,
as well as companies that serve the airlines industry.
We continued to concentrate on value and earnings visibility as small
company stocks lost further ground in the first months of 1997. When investors
bid up shares of the bigger small-cap firms, we took profits in some of those
issues. With growth stocks falling out of favor with investors, we found many
attractive opportunities to use the proceeds from these sales for new
investments.
Throughout this time, we remained focused on stocks of health care, energy
and technology firms. We felt the prices for many companies in these sectors
were quite reasonable compared to their potential for dependable earnings
growth. These moves helped to somewhat contain the Fund's losses at a time when
small cap growth stocks were greatly out-of-favor.
SMALL-CAP VALUATIONS
INCREASINGLY ATTRACTIVE
In the months ahead we expect continued economic uncertainty to benefit
the stocks of larger companies. If interest rates rise further, economic growth
slows and stock prices weaken, however, we think investors could become more
optimistic about future market opportunities and see the strong values available
in small company shares. Already, valuations for small company stocks are in the
lower range of their historic averages.
In this environment, we expect to remain focused on high quality stocks
with visible earnings and attractive prices. We will probably also maintain our
emphasis on stocks in the technology, health care, and energy sectors.
Steve Barbaro has managed the Galaxy Small Company Equity Fund since its
inception in December 1991. He has managed small company portfolios for Fleet
Investment Advisors Inc. and its predecessors since 1977.
- -----------------
PORTFOLIO REVIEWS
- -----------------
- ---------------------------
[Photo of Thomas M. O'Neill
- ---------------------------
Thomas M. O'Neill
GALAXY INTERNATIONAL
EQUITY FUND
Distribution of Total Net Assets
as of April 30, 1997
U.S. Government & Agency Obligations & Net Other Assets & Liabilities .... 6%
Australia ................................................................ 5%
Far East ................................................................. 28%
United Kingdom ........................................................... 13%
Europe ................................................................... 41%
Central & South America .................................................. 7%
GALAXY INTERNATIONAL
EQUITY FUND
Growth of $10,000 investment*
Morgan Stanley Galaxy Galaxy
Europe, Australia International Equity International Equity
& Far East Index Retail A Shares Trust Shares
----------------- -------------------- --------------------
91 10,000 9,625 10,000
92 8,680 9,297 9,660
93 11,970 11,748 12,207
94 13,134 12,795 13,294
95 13,125 12,713 13,291
96 14,499 14,093 14,820
4/30/97 14,727 15,277 16,131
*Since inception on 12/30/91. Performance figures for Retail A Shares have been
restated to include the effect of the maximum 3.75% front-end sales charge
which became effective on December 1, 1995. The Morgan Stanley Europe,
Australia & Far East (EAFE) Index is an unmanaged index in which investors
cannot invest. Results for the index do not reflect the expenses and investment
management fees incurred by the Fund.
GALAXY INTERNATIONAL EQUITY FUND
By Thomas M. O'Neill, Chief Investment Officer
Fleet Investment Advisors Inc.
and Oechsle International Advisors, L.P.
Sub-Advisor
Buoyant bond markets overseas and strong gains in U.S. stocks helped many
foreign stock investments perform well over the last six months. Stock prices
continued to slide in Japan, however, which has the largest share of equities
abroad. During this time we made sizable investments in markets that performed
well, minimized investments in Japan, and chose individual issues that advanced
strongly. As a result, the Galaxy International Equity Fund enjoyed solid
returns that outpaced returns for its market benchmark and other funds with
similar investment objectives.
For the six months ended April 30, 1997, the Fund's Trust Shares earned a
total return of 8.84%. Over the same time, Retail A Shares earned 8.40%, before
the deduction of the maximum 3.75% front-end sales charge. (Please see the chart
on page 2 for total returns after deduction of the front-end sales charge.)
Those returns compare with 6.17% for the average international fund
tracked by Lipper, and 0.77% for the Morgan Stanley Europe, Australia, Far East
(EAFE) Index.
EUROPEAN STOCKS TOP PERFORMERS
During the period the Fund benefited from large investments in European
markets -- most of which performed quite well. Overweighted positions in Spain
and Sweden were particularly helpful to Fund returns. Stocks advanced strongly
there as it appeared the countries might join the European Monetary Union.
Although underweightings in Switzerland and Germany diminished returns in the
first months of 1997, the Fund enjoyed exceptional performances throughout the
period from the individual stocks that it held in Europe -- many of which were
the Fund's largest holdings.
Although Japanese stocks represented about 30% of investments in the EAFE
Index during this time, they accounted for roughly 20.2% of investments in the
Galaxy International Equity Fund. Because MSCI Japan stocks lost approximately
13.7% (in U.S. dollars) in value over the six-month period, the Fund's
underweighting in Japan contributed strongly to its returns. In addition, many
of the individual stocks that the Fund held in Japan outperformed their peers
for the period. The Fund concentrated its Japanese investments in blue-chip
companies, which Japanese investors favored in their search for quality
companies with appealing valuations.
SIGNS OF FURTHER STRENGTH
International markets should remain attractive in months to come. Interest
rates and inflation are low overseas, and most foreign economies still have much
room to grow. Although European markets have performed strongly in recent
months, stocks could get an extra boost if the European community makes progress
toward monetary union. Meanwhile, German pension funds are substantially
underweighted in equities. Demand for German stocks could increase dramatically
if the pension funds adjust their asset mix.
In Japan, a land reform package and the apparent bottoming of commercial
real estate property values suggest gradual improvements in the economy and
stock market there. Although stocks in Hong Kong have underperformed so far in
1997, they could continue their earlier advance if Hong Kong's return to China
on July 1 goes smoothly.
Thomas M. O'Neill is Chief Investment Officer of Fleet Investment Advisors Inc.
Oechsle International Advisors, L.P., serves as sub-advisor for the Fund.
Oechsle International Advisors, is a $9.4 billion firm dedicated to
international investing.
Investment returns and principal values will vary with market conditions so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. The Investment Adviser is presently waiving fees and/or
reimbursing expenses and may revise or discontinue such practice at any time.
Without such waivers and/or reimbursements, performance would be lower. Past
performance is no guarantee of future results. Unless otherwise indicated, total
return figures in this report include changes in share price, the effect of
sales charges, where applicable, and reinvestment of dividends and capital gains
distributions, if any.
<PAGE>
- -------------------
SHAREHOLDER
SERVICES
- -------------------
"A well-balanced asset
allocation plan may help
to control your risk while
pursuing your goals."
AUTOMATIC INVESTMENT PROGRAM
The Golden Rule of investing is "pay yourself first." That is easy to do with
Galaxy's Automatic Investment Program. For as little as $50 per month deducted
directly from your checking, savings or bank money market account, you can
consistently and conveniently add to your Galaxy investment. When you establish
an Automatic Investment Program, the $2,500 initial investment requirement for
Galaxy is waived. Of course, such a program does not assure a profit and does
not protect against loss in a declining market.
DIVERSIFICATION
A fundamental investment practice is "diversification." A well-balanced asset
allocation plan may help to control your risk while pursuing your goals. Many
mutual funds offer a low-cost way to diversify your investments while you
benefit from professional management. Galaxy's comprehensive array of investment
choices can be used in combination to match the needs of nearly everyone.
EXCHANGE PRIVILEGES
As your investment needs change, you can conveniently exchange your shares in
one fund for shares in another fund.
QUARTERLY MAGAZINE
Service also means giving you the practical information you need, in language
you can understand, to make smart investment decisions. The quarterly magazine,
Galaxy Observer, brings news, strategies and simple, straight-forward
explanations of investment basics and terminology.
CONSOLIDATED STATEMENTS
Timely, comprehensive mutual fund account statements offer detailed information
on your individual account. If you have a Fleet One or a Fleet Private Banking
Account, your Galaxy Fund information can be added to these statements.
INVESTMENT SPECIALISTS
In many Fleet branch offices or in the convenience of your home or office, you
can visit one-on-one with an Investment Specialist* who can help you select the
investments that match your individual needs. This service is at no cost to you.
24-HOUR ACCESS TO REGISTERED REPRESENTATIVES
24 hours a day, seven days a week, 365 days a year, we are ready and available
to help. Our toll-free telephone lines offer round-the-clock access to Fund
information and service. Call 1-800-628-0414 for information on initial
purchases and current performance.
CUSTOMER SERVICE
Quality customer service is only a phone call away. Call 1-800-628-0414 between
9 a.m. and 5 p.m. to arrange bank wires, or to make telephone exchanges and
redemptions.
In addition, Galaxy's state-of-the-art InvestConnect automated voice response
system is available to serve you 24-hours a day, seven days a week by calling
1-800-FOR-GLXY (367-4599).
- --------------------------------------------------------------------------------
Certain shareholder services may not be available for Trust Share investors.
Please consult your Fund Prospectus.
* Shares of the Funds are distributed through First Data Distributors, Inc.,
member NASD and SIPC. Investment Specialists are registered representatives of
FIS Securities, Inc., member NASD, Fleet Enterprises, Inc., member NASD and
SIPC, or MDS Securities Inc., member NASD and SIPC.
<PAGE>
----------------
ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 48.93%
CONSUMER STAPLES - 12.45%
60,000 American Home Products Corp. .................... $ 3,975,000
55,000 CPC International, Inc. ......................... 4,544,375
50,000 Gillette Co. .................................... 4,250,000
50,000 Johnson & Johnson ............................... 3,062,500
50,000 Lilly (Eli) & Co. ............................... 4,393,750
55,000 Merck & Co., Inc. ............................... 4,977,500
130,000 PepsiCo, Inc. .................................. 4,533,750
50,000 Pfizer, Inc. .................................... 4,800,000
25,000 Procter & Gamble Co. ............................ 3,143,750
-----------
37,680,625
-----------
TECHNOLOGY - 7.14%
60,000 Automatic Data Processing, Inc. ................. 2,715,000
70,000 Cisco Systems, Inc.* ............................ 3,622,500
30,000 Electronic Data Systems Corp. ................... 1,001,250
60,000 Hewlett-Packard Co. ............................. 3,150,000
25,000 Intel Corp. ..................................... 3,828,125
30,000 Maxim Integrated Products, Inc.* ................ 1,586,250
10,000 Microsoft Corp.* ................................ 1,215,000
20,000 Oracle Corp.* ................................... 795,000
60,000 Xerox Corp. ..................................... 3,690,000
-----------
21,603,125
-----------
FINANCE - 6.73%
33,000 American International Group, Inc. .............. 4,240,500
45,000 Barnett Banks, Inc. ............................. 2,199,375
40,000 Beacon Properties Corp., REIT ................... 1,235,000
15,000 Chase Manhattan Corp. ........................... 1,389,375
25,000 Citicorp ........................................ 2,815,625
24,000 Crestar Financial Corp. ......................... 888,000
100,000 Fannie Mae ...................................... 4,112,500
20,000 ITT Hartford Group, Inc. ........................ 1,490,000
40,000 Norwest Corp. ................................... 1,995,000
-----------
20,365,375
-----------
CONSUMER CYCLICAL - 6.18%
110,000 Ford Motor Co. .................................. 3,822,500
75,000 Home Depot, Inc. ................................ 4,350,000
90,000 McDonald's Corp. ................................ 4,826,250
45,000 Nike, Inc., Class B ............................. 2,531,250
105,000 Sherwin-Williams Co. ............................ 3,176,250
-----------
18,706,250
-----------
ENERGY - 5.54%
32,000 Amoco Corp. ..................................... $ 2,676,000
20,000 Enron Corp. ..................................... 752,500
50,000 Halliburton Co. ................................. 3,531,250
32,000 Mobil Corp. ..................................... 4,160,000
20,000 Schlumberger, Ltd. .............................. 2,215,000
60,000 Sonat, Inc. ..................................... 3,427,500
-----------
16,762,250
-----------
CAPITAL GOODS AND CONSTRUCTION - 4.29%
40,000 Boeing Co. ...................................... 3,945,000
40,000 Dresser Industries, Inc. ........................ 1,195,000
35,000 General Electric Co. ............................ 3,880,625
115,000 Thermo Electron Corp.* .......................... 3,967,500
-----------
12,988,125
-----------
BASIC MATERIALS - 3.54%
30,000 Minnesota Mining & Manufacturing Co. ............ 2,610,000
120,000 Monsanto Co. .................................... 5,130,000
60,000 Nucor Corp. ..................................... 2,985,000
-----------
10,725,000
-----------
UTILITIES - 2.11%
25,000 GTE Corp. ....................................... 1,146,875
60,000 SBC Communications, Inc. ........................ 3,330,000
80,000 WorldCom, Inc. .................................. 1,920,000
-----------
6,396,875
-----------
TRANSPORTATION - 0.95%
45,000 Union Pacific Corp. ............................. 2,868,750
-----------
TOTAL COMMON STOCKS ............................. 148,096,375
(Cost $103,805,850) -----------
PAR VALUE
---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 32.41%
FEDERAL HOME LOAN BANK (A) - 12.57%
$ 38,055,000 5.27%, 05/01/97 .............................. 38,055,000
-----------
U.S. TREASURY NOTES - 8.16%
2,000,000 6.13%, 03/31/98 .............................. 2,004,698
1,500,000 7.88%, 04/15/98 .............................. 1,526,925
750,000 6.25%, 07/31/98 .............................. 751,777
750,000 6.13%, 08/31/98 .............................. 750,247
2,000,000 5.88%, 01/31/99 .............................. 1,989,458
750,000 6.88%, 07/31/99 .............................. 758,497
500,000 6.00%, 08/15/99 .............................. 496,580
1,000,000 6.88%, 08/31/99 .............................. 1,011,530
1,500,000 6.00%, 10/15/99 .............................. 1,490,173
750,000 6.50%, 05/31/01 .............................. 749,415
2,000,000 6.50%, 08/31/01 .............................. 1,997,518
2,000,000 7.50%, 11/15/01 .............................. 2,073,480
1,000,000 5.88%, 11/30/01 .............................. 973,969
3,000,000 7.50%, 05/15/02 .............................. 3,121,800
3,000,000 6.38%, 08/15/02 .............................. 2,975,127
2,000,000 6.88%, 05/15/06 .............................. 2,016,618
-----------
24,687,812
-----------
U.S. TREASURY BONDS - 7.98%
2,000,000 7.63%, 02/15/07 .............................. 2,066,998
3,750,000 7.50%, 11/15/16 .............................. 3,931,425
1,000,000 8.13%, 08/15/19 .............................. 1,118,539
750,000 8.50%, 02/15/20 .............................. 871,364
3,000,000 7.88%, 02/15/21 .............................. 3,279,327
500,000 8.13%, 08/15/21 .............................. 561,355
3,500,000 7.25%, 08/15/22 .............................. 3,577,347
3,250,000 7.63%, 11/15/22 .............................. 3,465,699
3,000,000 7.13%, 02/15/23 .............................. 3,026,100
2,500,000 6.25%, 08/15/23 .............................. 2,264,623
-----------
24,162,777
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.97%
1,000,000 6.74%, 09/19/01 .............................. 1,000,640
1,000,000 6.49%, 01/19/06 .............................. 958,210
1,000,000 10.00%, 09/01/20 ............................. 1,092,180
2,000,000 8.18%, 04/15/24 .............................. 2,005,538
319,945 6.50%, 01/01/26 .............................. 302,048
637,072 6.50%, 01/01/26 .............................. 601,436
-----------
5,960,052
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 0.98%
1,000,000 7.74%, 06/01/04 .............................. 1,005,210
1,000,000 7.05%, 06/08/05 .............................. 987,199
996,787 7.00%, 01/01/27 .............................. 968,753
-----------
2,961,162
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.63%
882,184 9.00%, 12/15/17 .............................. 929,877
980,983 7.50%, 01/15/26 .............................. 973,319
-----------
1,903,196
-----------
FEDERAL FARM CREDIT BANK - 0.12%
250,000 6.40%, 12/11/00 .............................. 246,427
100,000 8.25%, 05/01/07 .............................. 100,004
-----------
346,431
-----------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS ....................... 98,076,430
(Cost $98,666,840) -----------
CORPORATE NOTES AND BONDS - 17.48%
500,000 American General Finance Corp.
8.50%, 08/15/98 ................................ 513,469
1,000,000 American Home Products Corp.
7.70%, 02/15/00 ................................ 1,026,250
1,500,000 American Telephone & Telegraph
Capital Corp., Series 4, MTN
6.39%, 01/22/99 ................................ 1,496,250
200,000 American Telephone & Telegraph Corp.
7.00%, 05/15/05 ................................ 198,750
500,000 Archer-Daniels-Midland Co.
8.13%, 06/01/12 ................................ 535,625
1,000,000 Aristar, Inc., Senior Notes
8.13%, 12/01/97 ................................ 1,011,870
1,000,000 Associates Corp. N.A.
6.00%, 03/15/99 ................................ 992,500
1,000,000 Banc One Corp.
8.00%, 04/29/27 ................................ 1,004,500
1,000,000 Bank One Milwaukee, MTN
6.35%, 03/19/01 ................................ 983,750
500,000 Carnival Corp.
7.05%, 05/15/05 ................................ 490,000
1,080,000 Carolina Power & Light Co., MTN
5.06%, 09/13/98 ................................ 1,062,450
1,000,000 Caterpillar Financial
Services Corp., MTN
6.84%, 09/15/99 ................................ 1,005,000
500,000 CIT Group Holdings, Inc., MTN
5.88%, 11/09/98 ................................ 496,410
1,200,000 Citicorp, MTN
8.63%, 11/01/04 ................................ 1,246,500
1,000,000 Coca-Cola Enterprises, Inc.
6.70%, 10/15/36 ................................ 988,750
1,000,000 Columbia/HCA
Healthcare Corp., MTN
6.88%, 07/15/01 ................................ 996,250
1,000,000 Crown Cork & Seal Co., Inc.
5.88%, 04/15/98 ................................ 997,189
500,000 Disney (Walt) Co., Series A
6.38%, 03/30/01 ................................ 493,125
500,000 Disney (Walt) Co., Series B
6.75%, 03/30/06 ................................ 486,250
1,000,000 Ford Motor Credit Co.
8.00%, 01/15/99 ................................ 1,025,000
1,000,000 Ford Motor Credit Co.
8.38%, 01/15/00 ................................ 1,041,250
1,000,000 General Motors
Acceptance Corp., MTN
7.65%, 01/16/98 ................................ 1,011,579
1,000,000 General Motors Acceptance Corp.
6.88%, 07/15/01 ................................ 1,000,000
1,000,000 GTE North, Inc., Series D
6.90%, 11/01/08 ................................ 976,250
1,000,000 Hertz Corp., Senior Notes
7.00%, 04/15/01 ................................ 1,002,500
1,000,000 Household Finance Corp., MTN
5.80%, 03/09/98 ................................ 998,360
1,000,000 International Business Machines Corp.
7.50%, 06/15/13 ................................ 1,008,750
500,000 International Lease Finance Corp., MTN
5.55%, 02/16/98 ................................ 497,624
500,000 International Lease Finance Corp., MTN
8.35%, 10/01/98 ................................ 514,614
500,000 International Paper Co.
7.00%, 06/01/01 ................................ 501,875
1,325,000 KFW International Finance, Inc.
7.00%, 03/01/13 ................................ 1,283,594
1,500,000 Lockheed Martin Corp.
6.85%, 05/15/01 ................................ 1,498,125
500,000 Lucent Technologies, Inc.
7.25%, 07/15/06 ................................ 503,125
500,000 Masco Corp.
6.63%, 09/15/99 ................................ 500,625
500,000 May Department Stores Co.
6.88%, 11/01/05 ................................ 488,750
500,000 McDonald's Corp.
8.88%, 04/01/11 ................................ 567,500
500,000 Mead Corp.
6.84%, 03/01/37 ................................ 490,000
1,000,000 National City Bank of Kentucky, MTN
6.30%, 02/15/11 ................................ 897,500
1,000,000 National Rural Utilities Cooperative
Finance Corp.
7.30%, 09/15/06 ................................ 1,006,250
1,000,000 NationsBank Corp.
7.00%, 09/15/01 ................................ 1,002,500
500,000 Northern Telecom, Ltd.
6.00%, 09/01/03 ................................ 476,250
2,000,000 Norwest Corp., MTN
6.25%, 04/15/99 ................................ 1,995,000
1,000,000 Paccar Financial Corp., Series H, MTN
6.42%, 05/15/00 ................................ 992,500
1,000,000 Penney (J.C.) & Co., Inc.
7.95%, 04/01/17 ................................ 1,013,750
1,000,000 Pennsylvania Power & Light Co.
6.88%, 02/01/03 ................................ 993,750
2,000,000 PepsiCo, Inc. Series 1, MTN
6.80%, 05/15/00 ................................ 2,005,880
1,000,000 Pitney Bowes Credit Corp., MTN
6.54%, 07/15/99 ................................ 1,001,250
325,000 Rite Aid Corp.
6.70%, 12/15/01 ................................ 321,344
1,000,000 Sears Roebuck Acceptance Corp.
6.38%, 02/16/99 ................................ 998,750
1,000,000 Sears Roebuck & Co., MTN
7.82%, 02/23/98 ................................ 1,013,559
1,000,000 Sysco Corp.
7.25%, 04/15/07 ................................ 1,003,750
1,000,000 Texaco Capital, Inc.
8.50%, 02/15/03 ................................ 1,075,000
500,000 Texas Utilities Electric Co.
7.38%, 11/01/99 ................................ 507,500
500,000 Transamerica Finance Corp.
6.75%, 06/01/00 ................................ 497,500
500,000 Union Pacific Resources Group, Inc.
7.00%, 10/15/06 ................................ 493,125
2,000,000 Wachovia Bank
6.30%, 03/15/01 ................................ 1,965,000
1,000,000 Warner Lambert Co.
8.00%, 09/01/98 ................................ 1,022,500
500,000 WMX Technologies, Inc.
7.13%, 06/15/01 ................................ 503,125
1,000,000 Xerox Corp.
9.75%, 03/15/00 ................................ 1,077,500
100,000 Xerox Corp.
8.13%, 04/15/02 ................................ 104,750
-----------
TOTAL CORPORATE NOTES AND BONDS ................ 52,902,442
(Cost $53,129,474) -----------
ASSET-BACKED SECURITIES - 1.97%
1,000,000 Chemical Master Credit Card Trust I,
Class A
5.55%, 09/15/03 ................................ 962,309
1,000,000 Ford Credit Owner Trust, Class A3
6.50%, 11/15/99 ................................ 1,004,670
1,000,000 Green Tree Financial Corp., Class A3
6.23%, 03/15/28 ................................ 987,500
1,000,000 NationsBank Auto Owner Trust, Class A3
6.38%, 07/15/00 ................................ 999,759
1,100,000 Premier Auto Trust, Class A3
6.50%, 03/06/00 ................................ 1,099,138
931,639 Rural Housing Trust, Series 1, Class D
6.33%, 04/01/26 ................................ 910,095
-------------
TOTAL ASSET-BACKED SECURITIES .................. 5,963,471
(Cost $5,980,651) -------------
TOTAL INVESTMENTS - 100.79% ............................... 305,038,718
(Cost $261,582,815) -------------
NET OTHER ASSETS AND LIABILITIES - (0.79)% ................ (2,376,058)
-------------
NET ASSETS - 100.00% ...................................... $ 302,662,660
- ------------------------------- =============
* Non-income producing security.
(A) Annualized yield at time of purchase.
MTN Medium Term Note
REIT Real Estate Investment Trust
See Notes to Financial Statements.
<PAGE>
----------------
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 80.88%
CONSUMER STAPLES - 17.80%
63,000 American Home Products Corp. .................... $ 4,173,750
60,000 Bristol-Myers Squibb Co. ........................ 3,930,000
70,000 CPC International, Inc. ......................... 5,783,750
35,000 Gillette Co. .................................... 2,975,000
85,000 Johnson & Johnson ............................... 5,206,250
55,000 Merck & Co., Inc. ............................... 4,977,500
170,000 PepsiCo, Inc. ................................... 5,928,750
45,000 Pfizer, Inc. .................................... 4,320,000
40,000 Procter & Gamble Co. ............................ 5,030,000
34,000 Warner-Lambert Co. .............................. 3,332,000
-----------
45,657,000
-----------
UTILITIES - 11.96%
47,000 American Telephone & Telegraph Corp. ............ 1,574,500
30,000 Ameritech Corp. ................................. 1,833,750
200,000 Baltimore Gas & Electric Co. .................... 5,100,000
160,000 GTE Corp. ....................................... 7,340,000
101,000 SBC Communications, Inc. ........................ 5,605,500
238,000 Washington Gas Light Co. ........................ 5,474,000
150,000 Wisconsin Energy Corp. .......................... 3,750,000
-----------
30,677,750
-----------
ENERGY - 10.99%
75,000 Amoco Corp. ..................................... 6,271,875
50,000 Atlantic Richfield Co. .......................... 6,806,250
120,000 Exxon Corp. ..................................... 6,795,000
45,000 Mobil Corp. ..................................... 5,850,000
50,000 Occidental Petroleum Corp. ...................... 1,106,250
50,000 Union Pacific Resources Group, Inc. ............. 1,356,250
-----------
28,185,625
-----------
FINANCE - 10.03%
15,000 American International Group, Inc. .............. 1,927,500
90,000 Banc One Corp. .................................. 3,813,750
60,000 Barnett Banks, Inc. ............................. 2,932,500
30,000 Beacon Properties Corp., REIT ................... 926,250
60,000 Crestar Financial Corp. ......................... 2,220,000
110,000 Fannie Mae ...................................... 4,523,750
60,000 Hibernia Corp., Class A ......................... 772,500
80,000 ITT Hartford Group, Inc. ........................ 5,960,000
52,500 Old Kent Financial Corp. ........................ 2,664,375
-----------
25,740,625
-----------
CONSUMER CYCLICAL - 9.30%
40,000 Dayton-Hudson Corp. ............................. 1,800,000
290,000 Ford Motor Co. .................................. 10,077,500
125,000 McDonald's Corp. ................................ 6,703,125
25,000 Rite Aid Corp. .................................. 1,150,000
90,000 Walgreen Co. .................................... 4,140,000
-----------
23,870,625
-----------
CAPITAL GOODS AND CONSTRUCTION - 6.88%
44,000 Boeing Co. ...................................... 4,339,500
25,000 Deere & Co. ..................................... 1,150,000
30,000 Dresser Industries, Inc. ........................ 896,250
68,000 General Electric Co. ............................ 7,539,500
42,000 Thermo Electron Corp. ........................... 1,449,000
30,000 United Technologies Corp. ....................... 2,268,750
-----------
17,643,000
-----------
TECHNOLOGY - 6.26%
100,000 AMP, Inc. ...................................... 3,587,500
85,000 Automatic Data Processing, Inc. ................ 3,846,250
37,000 Electronic Data Systems Corp. .................. 1,234,875
120,000 Xerox Corp. .................................... 7,380,000
-----------
16,048,625
-----------
BASIC MATERIALS - 5.67%
50,000 Crown Cork & Seal Co., Inc. ..................... 2,737,500
70,000 Minnesota Mining & Manufacturing Co. ............ 6,090,000
125,000 Weyerhaeuser Co. ................................ 5,718,750
-----------
14,546,250
-----------
TRANSPORTATION - 1.99%
80,000 Union Pacific Corp. ............................. 5,100,000
-----------
TOTAL COMMON STOCKS ............................. 207,469,500
Cost $146,434,664) ------------
PAR VALUE
---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 18.98%
FEDERAL HOME LOAN BANK (A) - 16.75%
$ 42,950,000 5.27%, 05/01/97 ............................. 42,950,000
------------
U.S. TREASURY NOTES - 1.54%
2,000,000 5.13%, 03/31/98 ............................. 1,987,118
2,000,000 5.50%, 04/15/00 ............................. 1,952,660
------------
3,939,778
------------
U.S. TREASURY BOND - 0.69%
1,700,000 7.50%, 11/15/16 ............................. 1,782,246
TOTAL U. S. GOVERNMENT AND
AGENCY OBLIGATIONS .......................... 48,672,024
(Cost $48,612,781) ------------
TOTAL INVESTMENTS - 99.86% ................................ 256,141,524
(Cost $195,047,445) ------------
NET OTHER ASSETS AND LIABILITIES - 0.14% .................. 358,174
------------
NET ASSETS - 100.00% ...................................... $ 256,499,698
=============
- --------------------------
(A) Annualized yield at time of purchase.
REIT Real Estate Investment Trust
See Notes to Financial Statements.
<PAGE>
----------------
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 89.99%
CONSUMER STAPLES - 17.38%
160,000 American Home Products Corp. ................... $10,600,000
210,000 Archer-Daniels-Midland Co. ..................... 3,858,750
72,000 Baxter International, Inc. ..................... 3,447,000
194,000 Elan Corp. Plc, ADR* ........................... 6,596,000
74,000 Heinz (H. J.) Co. .............................. 3,071,000
90,000 Humana, Inc.* .................................. 1,957,500
52,000 Lilly (Eli) & Co. .............................. 4,569,500
70,000 Merck & Co., Inc. .............................. 6,335,000
144,000 PepsiCo, Inc. .................................. 5,022,000
38,000 Pfizer, Inc. ................................... 3,648,000
140,000 Pharmacia & Upjohn, Inc. ....................... 4,147,500
110,000 Stryker Corp. .................................. 3,616,250
116,000 Supervalu, Inc. ................................ 3,552,500
-----------
60,421,000
-----------
FINANCE - 13.97%
66,000 Chubb Corp. ..................................... 3,811,500
60,000 Corestates Financial Corp. ...................... 3,037,500
135,000 Countrywide Credit Industries, Inc. ............. 3,661,875
78,000 Exel, Ltd. ...................................... 3,042,000
80,000 Fannie Mae ...................................... 3,290,000
50,000 First Chicago NBD Corp. ......................... 2,812,500
118,000 First USA, Inc. ................................. 5,678,750
24,000 General Re Corp. ................................ 4,014,000
58,000 ITT Hartford Group, Inc. ........................ 4,321,000
80,000 Lincoln National Corp. .......................... 4,480,000
34,000 Morgan (J.P.) & Co., Inc. ....................... 3,463,750
64,000 National City Corp. ............................. 3,120,000
145,000 Nationwide Financial Services, Inc.
Class A* ........................................ 3,842,500
-----------
48,575,375
-----------
TECHNOLOGY - 12.97%
110,000 AMP, Inc. ....................................... 3,946,250
60,000 Avnet, Inc. ..................................... 3,652,500
60,000 Computer Sciences Corp.* ........................ 3,750,000
200,000 Electronic Data Systems Corp. ................... 6,675,000
40,000 Harris Corp. .................................... 3,420,000
84,000 Hewlett-Packard Co. ............................. 4,410,000
36,000 International Business Machines Corp. ........... 5,787,000
57,000 Motorola, Inc. .................................. 3,263,250
46,000 Pitney Bowes, Inc. .............................. 2,944,000
40,000 Texas Instruments, Inc. ......................... 3,570,000
60,000 Xerox Corp. ..................................... 3,690,000
-----------
45,108,000
-----------
CONSUMER CYCLICAL - 11.35%
84,000 Cooper Tire & Rubber Co. ........................ 1,848,000
155,000 Dun & Bradstreet Corp. .......................... 3,816,875
67,000 Eastman Kodak Co. ............................... 5,594,500
140,000 Ford Motor Co. .................................. 4,865,000
104,000 Lowe's Cos., Inc. ............................... 3,952,000
82,000 McDonald's Corp. ................................ 4,397,250
80,000 Penney (J.C.) Co., Inc. ......................... 3,820,000
124,000 Pep Boys-Manny, Moe & Jack ...................... 4,045,500
66,000 Reuters Holdings Plc, ADR ....................... 4,067,250
108,000 Wal-Mart Stores, Inc. ........................... 3,051,000
-----------
39,457,375
-----------
ENERGY - 9.17%
75,000 Amoco Corp. ..................................... 6,271,875
39,000 Atlantic Richfield Co. .......................... 5,308,875
51,000 Chevron Corp. ................................... 3,493,500
42,000 Halliburton Co. ................................. 2,966,250
59,000 Mobil Corp. ..................................... 7,670,000
168,000 Occidental Petroleum Corp. ...................... 3,717,000
22,000 Schlumberger, Ltd. .............................. 2,436,500
-----------
31,864,000
-----------
CAPITAL GOODS - 7.75%
26,000 Boeing Co. ...................................... 2,564,250
126,000 Dresser Industries, Inc. ........................ 3,764,250
124,000 Foster Wheeler Corp. ............................ 4,789,500
30,000 General Electric Co. ............................ 3,326,250
132,000 Hubbell, Inc., Class A .......................... 5,296,500
124,000 Thermo Electron Corp.* .......................... 4,278,000
100,000 WMX Technologies, Inc. .......................... 2,937,500
-----------
26,956,250
-----------
UTILITIES - 6.76%
64,000 American Telephone & Telegraph Corp. ............ 2,144,000
112,000 Century Telephone Enterprises, Inc. ............. 3,346,000
146,000 Entergy Corp. ................................... 3,412,750
86,000 GTE Corp. ....................................... 3,945,250
70,000 SBC Communications, Inc. ........................ 3,885,000
92,000 Southern New England Telecommunication .......... 3,358,000
77,000 Vodafone Group Plc, ADR ......................... 3,407,250
-----------
23,498,250
-----------
BASIC MATERIALS - 6.37%
110,000 Dexter Corp. .................................... 3,286,250
38,000 Dow Chemical Co. ................................ 3,225,250
190,000 Ethyl Corp. ..................................... 1,733,750
90,000 Goodrich (B.F.) Co. ............................. 3,588,750
106,000 Lubrizol Corp. .................................. 3,471,500
82,000 Morton International, Inc. ...................... 3,433,750
148,000 Pall Corp. ...................................... 3,422,500
-----------
22,161,750
-----------
TRANSPORTATION - 4.27%
30,000 British Airways Plc, ADR ........................ $ 3,438,750
50,000 Burlington Northern Santa Fe Corp. .............. 3,937,500
64,000 GATX Corp. ...................................... 3,504,000
62,000 Union Pacific Corp. ............................. 3,952,500
-----------
14,832,750
-----------
TOTAL COMMON STOCKS ............................. 312,874,750
(Cost $265,390,658) -----------
PREFERRED STOCKS - 1.60%
80,000 Loral Space and Communications (B) .............. 3,820,000
31,000 Tosco Financing Trust (B) ....................... 1,722,437
------------
Total Preferred Stocks ................................. 5,542,437
(Cost $5,585,750) ------------
PAR VALUE
---------
U.S. AGENCY OBLIGATION (A) - 9.08%
FEDERAL HOME LOAN BANK - 9.08%
$31,565,000 5.27%, 05/01/97 .............................. 31,565,000
------------
TOTAL U.S. AGENCY OBLIGATION ................. 31,565,000
(Cost $31,565,000) ------------
TOTAL INVESTMENTS - 100.67% .............................. 349,982,187
(Cost $302,541,408) -------------
NET OTHER ASSETS AND LIABILITIES - (0.67)% ............... (2,317,668)
------------
NET ASSETS - 100.00% ..................................... $347,664,519
============
- --------------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
(B) Securities exempt from registration under Rule 144A of the Securities
Act of 1933, as amended. These securities may be resold, in transactions
exempt from registration, to qualified institutional buyers. At 04/30/97,
these securities amounted to $5,542,437, or 1.60% of net assets.
ADR American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
----------------
EQUITY VALUE FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 90.86%
TECHNOLOGY - 19.24%
138,166 Analog Devices, Inc.* .......................... $ 3,695,941
109,400 Beckman Instruments, Inc. ...................... 4,594,800
214,800 Cabletron Systems, Inc.* ....................... 7,410,600
129,900 Cisco Systems, Inc.* ........................... 6,722,325
96,700 Compaq Computer Corp.* ......................... 8,255,763
136,800 Computer Associates International, Inc. ........ 7,113,600
156,000 EMC Corp.* ..................................... 5,674,500
108,300 Hewlett-Packard Co. ............................ 5,685,750
75,200 Intel Corp. .................................... 11,515,000
34,100 International Business Machines Corp. .......... 5,481,575
130,700 3Com Corp.* .................................... 3,790,300
-----------
69,940,154
-----------
FINANCE - 18.67%
64,450 AFLAC, Inc. .................................... 2,771,350
18,400 American International Group, Inc. ............. 2,364,400
128,000 Banc One Corp. ................................. 5,424,000
59,100 BankBoston Corp. ............................... 4,299,525
40,800 Beneficial Corp. ............................... 2,611,200
72,500 Chase Manhattan Corp. .......................... 6,715,313
14,600 Citicorp ....................................... 1,644,325
112,300 Edwards (A.G.), Inc. ........................... 3,930,500
151,700 Fannie Mae ..................................... 6,238,663
52,100 First Union Corp. .............................. 4,376,400
102,300 Firstar Corp. .................................. 3,005,063
52,500 MBIA, Inc. ..................................... 5,112,188
71,900 Mellon Bank Corp. .............................. 5,976,688
92,900 National City Corp. ............................ 4,528,875
113,300 Signet Banking Corp. ........................... 3,498,138
45,200 Student Loan Marketing Association ............. 5,344,892
-----------
67,841,520
-----------
CONSUMER CYCLICAL - 16.22%
91,700 Armstrong World Industries, Inc. ............... 6,029,275
50,000 Black & Decker Corp. ........................... 1,675,000
166,800 Carnival Corp., Class A ........................ 6,150,750
104,300 Chrysler Corp. ................................. 3,129,000
51,300 Circuit City Stores-Circuit City Group ......... 2,032,763
103,250 Dollar General Corp. ........................... 3,265,281
136,200 Echlin, Inc. ................................... 4,443,525
90,000 Family Dollar Stores, Inc. ..................... 2,351,250
142,400 Fleetwood Enterprises, Inc. .................... 3,755,800
108,200 Gap, Inc. ...................................... 3,448,875
99,400 Harley-Davidson, Inc. .......................... 3,926,300
204,300 Kaufman & Broad Home Corp. ..................... 2,834,663
164,500 Mattel, Inc. ................................... 4,585,438
91,100 Pep Boys-Manny, Moe & Jack ..................... 2,972,138
60,000 TJX Cos., Inc. ................................. 2,835,000
267,600 Wendy's International, Inc. .................... 5,519,250
-----------
58,954,308
-----------
CONSUMER STAPLES - 15.73%
35,500 Abbott Laboratories ............................ 2,165,500
103,000 American Home Products Corp. ................... 6,823,750
63,200 Amgen, Inc. .................................... 3,720,900
85,700 Becton Dickinson & Co. ......................... 3,942,200
114,800 Bergen Brunswig Corp., Class A ................. 3,917,550
252,000 Biomet, Inc. ................................... 3,827,250
33,600 Bristol-Myers Squibb Co. ....................... 2,200,800
32,900 Colgate Palmolive Co. .......................... 3,651,900
129,700 IBP, Inc. ...................................... 3,080,375
119,800 Kimberly-Clark Corp. ........................... 6,139,750
62,100 Manpower, Inc. ................................. 2,491,763
105,200 Nellcor Puritan Bennett, Inc.* ................. 1,788,400
199,800 Philip Morris Cos., Inc. ....................... 7,867,125
69,300 Schering-Plough Corp. .......................... 5,544,000
-----------
57,161,263
-----------
ENERGY - 5.97%
39,700 Amoco Corp. .................................... $ 3,319,913
14,616 British Petroleum Co. Plc, ADR ................. 2,011,527
141,600 Coastal Corp. .................................. 6,726,000
171,700 Phillips Petroleum Co. ......................... 6,760,688
20,000 Smith International, Inc.* ..................... 947,500
102,200 Union Texas Petroleum Holdings, Inc. ........... 1,929,025
-----------
21,694,653
-----------
CAPITAL GOODS AND CONSTRUCTION - 5.83%
89,000 Cincinnati Milacron, Inc. ...................... 1,802,250
34,400 General Electric Co. ........................... 3,814,100
27,100 Illinois Tool Works, Inc. ...................... 2,476,263
93,000 Ingersoll-Rand Co. ............................. 4,568,625
63,400 Johnson Controls, Inc. ......................... 2,432,975
68,300 Lockheed Martin Corp. .......................... 6,112,850
-----------
21,207,063
-----------
UTILITIES - 3.93%
118,000 GTE Corp. ...................................... 5,413,250
48,200 NYNEX Corp. .................................... 2,494,350
179,800 Public Service Enterprise Group, Inc. .......... 4,337,675
100,000 Southern Co. ................................... 2,037,500
-----------
14,282,775
-----------
TRANSPORTATION - 3.54%
32,000 AMR Corp.* ..................................... 2,980,000
20,900 British Airways Plc, ADR ....................... 2,395,663
20,000 Delta Air Lines, Inc. .......................... 1,842,500
169,800 Illinois Central Corp. ......................... 5,645,850
-----------
12,864,013
-----------
BASIC MATERIALS - 1.73%
26,800 Nalco Chemical Co. .............................. 964,800
107,100 Nucor Corp. ..................................... 5,328,225
-----------
6,293,025
-----------
TOTAL COMMON STOCKS ............................. 330,238,774
Cost $277,778,496) -----------
PAR
VALUE
-----
U.S. AGENCY OBLIGATION (A) - 8.92%
FEDERAL HOME LOAN BANK - 8.92%
$32,410,000 5.27%, 05/01/97 ............................... 32,410,000
-------------
TOTAL U.S. AGENCY OBLIGATION .................. 32,410,000
(Cost $32,410,000) -------------
TOTAL INVESTMENTS - 99.78% ................................ 362,648,774
(Cost $310,188,496) -------------
NET OTHER ASSETS AND LIABILITIES - 0.22% .................. 796,651
-------------
NET ASSETS - 100.00% ...................................... $ 363,445,425
=============
- --------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
ADR American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
----------------
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 88.91%
CONSUMER STAPLES - 21.88%
270,000 Abbott Laboratories ............................ $ 16,470,000
120,000 American Home Products Corp. ................... 7,950,000
150,000 Amgen, Inc.* ................................... 8,831,250
175,000 Bristol-Myers Squibb Co. ....................... 11,462,500
150,000 ConAgra, Inc. .................................. 8,643,750
110,000 CPC International, Inc. ........................ 9,088,750
250,000 Elan Corp. Plc, ADR* ........................... 8,500,000
175,000 Gillette Co. ................................... 14,875,000
175,000 Guidant Corp. .................................. 11,943,750
200,000 Johnson & Johnson .............................. 12,250,000
160,000 Lilly (Eli) & Co. .............................. 14,060,000
200,000 Merck & Co., Inc. .............................. 18,100,000
300,000 PepsiCo, Inc. .................................. 10,462,500
200,000 Pfizer, Inc. ................................... 19,200,000
100,000 Procter & Gamble Co. ........................... 12,575,000
------------
184,412,500
------------
TECHNOLOGY - 16.93%
350,000 Automatic Data Processing, Inc. ................ 15,837,500
285,500 BBN Corp.* ..................................... 6,637,875
250,000 CISCO Systems, Inc. ............................ 12,937,500
175,000 Compaq Computer Corp.* ......................... 14,940,625
325,000 DSC Communications Corp.* ...................... 6,621,875
250,000 Electronic Data Systems Corp. .................. 8,343,750
125,000 Intel Corp. .................................... 19,140,625
51,100 International Business Machines Corp. .......... 8,214,325
150,000 Lucent Technologies, Inc. ...................... 8,868,750
110,000 Microsoft Corp.* ............................... 13,365,000
220,000 Oracle Corp.* .................................. 8,745,000
225,000 Teradyne, Inc.* ................................ 7,368,750
190,000 Xerox Corp. .................................... 11,685,000
------------
142,706,575
------------
ENERGY - 14.52%
160,000 Amoco Corp. .................................... 13,380,000
250,000 Anadarko Petroleum Corp. ....................... 13,718,750
225,000 Baker Hughes, Inc. ............................. 7,762,500
150,000 Cooper Cameron Corp.* .......................... 10,687,500
125,000 Halliburton Co. ................................ 8,828,125
100,000 Mobil Corp. .................................... 13,000,000
375,000 Oryx Energy Co.* ............................... 7,500,000
150,000 Schlumberger, Ltd. ............................. 16,612,500
275,000 Sonat, Inc. .................................... 15,709,375
250,000 Transocean Offshore, Inc. ...................... 15,156,250
------------
122,355,000
------------
FINANCE - 10.97%
140,000 American International Group, Inc. ............. $ 17,990,000
225,000 Associates First Capital Corp. ................. 11,531,250
270,000 Barnett Banks, Inc. ............................ 13,196,250
150,000 Chase Manhattan Corp. .......................... 13,893,750
400,000 Fannie Mae ..................................... 16,450,000
225,000 First Chicago NBD Corp. ........................ 12,656,250
100,000 St. Paul Cos., Inc. ............................ 6,700,000
------------
92,417,500
------------
CONSUMER CYCLICAL - 7.90%
150,000 Disney (Walt) Co. .............................. 12,300,000
300,000 Ford Motor Co. ................................. 10,425,000
200,000 McDonald's Corp. ............................... 10,725,000
175,000 Penney (J.C.) Co., Inc. ........................ 8,356,250
350,000 Sherwin-Williams Co. ........................... 10,587,500
300,000 TJX Cos., Inc. ................................. 14,175,000
------------
66,568,750
------------
CAPITAL GOODS AND CONSTRUCTION - 7.87%
140,000 Boeing Co. ..................................... 13,807,500
225,000 Deere & Co. .................................... 10,350,000
150,000 General Electric Co. ........................... 16,631,250
150,000 Rockwell International Corp. ................... 9,975,000
450,000 Thermo Electron Corp.* ......................... 15,525,000
------------
66,288,750
------------
TRANSPORTATION - 3.44%
100,000 AMR Corp.* ..................................... 9,312,500
250,000 KLM Royal Dutch Air Lines NV ................... 7,437,500
225,000 Tidewater, Inc. ................................ 9,028,125
50,000 Union Pacific Corp. ............................ 3,187,500
------------
28,965,625
------------
BASIC MATERIALS - 2.74%
250,000 IMC Global, Inc. ............................... 9,218,750
325,000 Monsanto Co. ................................... 13,893,750
------------
23,112,500
------------
UTILITIES - 2.66%
275,000 SBC Communications, Inc. ....................... 15,262,500
300,000 WorldCom, Inc.* ................................ 7,200,000
------------
22,462,500
------------
TOTAL COMMON STOCKS ............................ 749,289,700
(Cost $521,977,512) ------------
PREFERRED STOCKS - 4.09%
140,000 AES Trust I, SeriesA* .......................... 7,647,500
275,000 Loral Space and Communications (B) ............. 13,131,250
300,000 Qualcomm Financial Trust (B) * ................. 13,650,000
------------
TOTAL PREFERRED STOCKS ................................. 34,428,750
(Cost $35,750,000) ------------
PAR VALUE
---------
U.S. AGENCY OBLIGATION (A) - 7.45%
FEDERAL HOME LOAN BANK - 7.45%
$62,815,000 5.27%, 05/01/97 ............................... 62,815,000
------------
TOTAL U.S. AGENCY OBLIGATION .................. 62,815,000
(Cost $62,815,000) ------------
TOTAL INVESTMENTS - 100.45% ............................... 846,533,450
(Cost $620,542,512) ------------
NET OTHER ASSETS AND LIABILITIES - (0.45)% ................ (3,782,935)
------------
NET ASSETS - 100.00% ...................................... $ 842,750,515
=============
- ---------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
(B) Securities exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold, in transactions
exempt from registration, to qualified institutional buyers. At 04/30/97,
these securities amounted to $26,781,250, or 3.18% of net assets.
ADR American Depositary Receipt
See Notes to Financial Statements.
<PAGE>
----------------
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 89.84%
TECHNOLOGY - 20.61%
56,200 Analogic Corp. .................................. $ 1,643,850
65,900 BancTec, Inc.* .................................. 1,507,463
50,000 Benchmark Electronics, Inc.* .................... 1,412,500
32,400 Berg Electronics Corp.* ......................... 972,000
69,000 BGS Systems, Inc. ............................... 2,001,000
180,112 Boole & Babbage, Inc.* .......................... 3,827,380
63,500 Burr-Brown Corp.* ............................... 1,873,250
56,200 Clare (C.P.) Corp.* ............................. 505,800
19,300 Complete Business Solutions, Inc.* .............. 197,825
90,700 Computer Task Group, Inc. ....................... 3,911,438
57,510 Deltek Systems, Inc.* ........................... 560,723
10,000 DONCASTERS Plc, ADR* ............................ 225,000
24,700 Flextronics International, Ltd.* ................ 475,475
15,000 Fluke Corp. ..................................... 676,875
27,500 Fusion Medical Technologies, Inc.* .............. 106,563
29,200 Information Resources, Inc.* .................... 386,900
58,600 Instron Corp. ................................... 681,225
17,200 Interphase Corp.* ............................... 116,100
26,700 INTERSOLV, Inc.* ................................ 203,588
46,600 Keithley Instruments, Inc. ...................... 384,450
37,700 K-Tron International, Inc.* ..................... 438,263
57,600 MacNeal-Schwendler Corp. ........................ 547,200
47,500 MapInfo Corp.* .................................. 480,938
113,520 May & Speh, Inc.* ............................... 837,210
15,000 MDSI Mobile Data Solutions, Inc.* ............... 249,375
40,000 Mentor Graphics Corp.* .......................... 282,500
38,500 Nashua Corp.* ................................... 437,938
24,000 National Computer Systems, Inc. ................. 603,000
43,000 NovAtel, Inc.* .................................. 231,125
25,000 Pasifik (P.T.) Satelit Nusantara, ADR* .......... 250,000
77,500 Peerless Group, Inc.* ........................... 552,188
23,100 Perceptron, Inc.* ............................... 652,575
35,000 Performance Technologies, Inc.* ................. 389,375
23,500 Phoenix Technologies, Ltd.* ..................... 267,313
8,700 SEEC, Inc.* ..................................... 101,138
25,000 Summa Four, Inc.* ............................... 187,500
50,000 Sybase, Inc.* ................................... 737,500
29,400 Symix Systems, Inc.* ............................ 238,875
39,500 Teltrend, Inc.* ................................. 730,750
31,000 Total Control Products, Inc.* ................... 240,250
81,100 Unitrode Corp.* ................................. 3,203,450
40,000 Viewlogic Systems, Inc.* ........................ 560,000
19,600 Viisage Technology, Inc.* ....................... 178,850
24,000 VMARK Software, Inc.* ........................... 156,000
44,900 Wood's (T.B.), Inc. ............................. 622,988
------------
34,845,706
------------
CONSUMER CYCLICAL - 17.30%
82,450 ADVO, Inc.* ..................................... $ 999,706
43,500 American Business Information, Inc.* ............ 826,500
44,000 American Homestar Corp.* ........................ 715,000
33,800 Applied Graphics Technologies, Inc.* ............ 1,022,450
48,400 ASI Solutions, Inc.* ............................ 296,450
66,900 Beazer Homes USA, Inc.* ......................... 928,238
59,300 Cash America International, Inc. ................ 526,288
23,388 Champion Enterprises, Inc.* ..................... 356,667
22,600 CN Biosciences, Inc.* ........................... 327,700
40,000 Cooker Restaurant Corp. ......................... 365,000
12,500 Culp, Inc.* ..................................... 221,875
58,600 El Chico Restaurants, Inc.* ..................... 395,550
71,000 Fieldcrest Cannon, Inc.* ........................ 1,278,000
32,242 Harte-Hanks Communications, Inc. ................ 878,595
72,025 Horton (D.R.), Inc. ............................. 702,244
26,500 Houghton Mifflin Co. ............................ 1,487,313
28,400 Interim Services, Inc.* ......................... 1,100,500
21,500 K2, Inc. ........................................ 561,688
40,000 Lazare Kaplan International, Inc.* .............. 545,000
32,700 Monaco Coach Corp.* ............................. 654,000
37,070 O'Charley's, Inc.* .............................. 486,544
22,000 PCA International, Inc. ......................... 352,000
45,000 Platinum Entertainment, Inc.* ................... 243,281
32,950 Pluma, Inc.* .................................... 411,875
80,400 Protection One, Inc.* ........................... 814,050
85,400 R & B, Inc.* .................................... 619,150
61,800 Rival Co. ....................................... 842,025
11,375 Ruby Tuesday, Inc.* ............................. 224,656
83,500 Ryan's Family Steak Houses, Inc.* ............... 741,063
61,000 Sagebrush, Inc.* ................................ 335,500
106,700 SEI Corp. ....................................... 2,240,700
65,500 Spaghetti Warehouse, Inc.* ...................... 319,313
31,400 TCA Cable TV, Inc. .............................. 1,004,800
40,000 The O'Gara Co.* ................................. 427,500
26,000 Thomas Group, Inc.* ............................. 186,875
20,000 Toll Brothers, Inc.* ............................ 365,000
49,600 Toro Co. ........................................ 1,736,000
48,500 Unifirst Corp. .................................. 921,500
108,750 Unitog Co. ...................................... 2,202,188
89,900 Worldtex, Inc.* ................................. 584,350
------------
29,247,134
------------
FINANCE - 15.88%
29,600 ACC Consumer Finance Corp.* ..................... $ 247,900
58,000 American Annuity Group, Inc. .................... 971,500
37,500 AmVestors Financial Corp. ....................... 600,000
24,800 BancFirst Corp. ................................. 706,800
17,650 BSB Bancorp, Inc. ............................... 529,500
9,735 CENFED Financial Corp. .......................... 277,448
4,100 Centennial Bancorp* ............................. 76,875
20,100 Coast Savings Financial, Inc.* .................. 809,025
17,000 Coastal Bancorp, Inc. ........................... 403,750
37,000 Colonial Downs Holdings, Inc., Class A* ......... 263,625
16,300 Consumer Portfolio Services, Inc.* .............. 126,325
60,800 Cordiant Plc, ADR* .............................. 380,000
116,700 D & N Financial Corp.* .......................... 2,027,663
77,500 Dignity Partners, Inc.* ......................... 208,281
54,000 Emergent Group, Inc.* ........................... 526,500
13,000 First Alliance Corp.* ........................... 266,500
10,000 First Industrial Realty Trust, Inc., REIT ....... 295,000
25,700 FirstBank Puerto Rico ........................... 671,413
11,500 GBC Bancorp ..................................... 368,000
29,970 Hanmi Bank* ..................................... 406,468
28,700 HealthCare Financial Partners, Inc.* ............ 344,400
34,850 Healthcare Realty Trust, Inc., REIT ............. 901,744
39,800 Home State Holdings, Inc.* ...................... 111,938
77,500 Innkeepers USA Trust, REIT ...................... 1,085,000
61,180 Integon Corp. ................................... 619,448
30,000 Intercargo Corp. ................................ 292,500
807 Investors Financial Services Corp., Class A ..... 28,245
12,200 Kansas City Life Insurance Co. .................. 843,325
15,000 LaSalle Re Holdings, Ltd. ....................... 416,250
54,300 Matrix Capital Corp.* ........................... 617,663
50,000 NHP, Inc.* ...................................... 1,134,375
25,000 Ohio Casualty Corp. ............................. 971,875
4,460 Oriental Financial Group ......................... 102,580
17,700 PennCorp Financial Group, Inc. .................. 608,438
41,500 Poe & Brown, Inc. ............................... 1,089,375
18,700 RedFed Bancorp, Inc.* ........................... 245,438
31,200 Security Connecticut Corp. ...................... 1,439,100
40,000 Selective Insurance Group, Inc. ................. 1,610,000
36,750 Southwest Securities Group, Inc. ................ 578,813
20,000 Symons International Group, Inc.* ............... 295,000
37,900 Team Rental Group, Inc.* ........................ 852,750
25,000 Terra Nova (Bermuda) Holdings, Ltd., Class A .... 468,750
21,598 UMB Financial Corp. ............................. 836,923
12,000 UnionBancorp, Inc. .............................. 147,000
23,200 USBANCORP, Inc. ................................. 1,049,800
------------
26,853,303
------------
ENERGY - 10.92%
75,000 Alamco, Inc.* ................................... $ 984,375
20,000 American Exploration Co.* ....................... 225,000
31,000 Belden & Blake Corp.* ........................... 798,250
85,000 Bellwether Exploration Co.* ..................... 743,750
44,200 Berry Petroleum Co., Class A .................... 646,425
64,000 Cairn Energy USA, Inc.* ......................... 712,000
42,000 Cross Timbers Oil Co.* .......................... 651,000
5,000 Dawson Geophysical Co.* .......................... 54,375
32,200 Devon Energy Corp. .............................. 1,062,600
198,000 Gulf Canada Resources, Ltd.* ................... 1,608,750
19,000 Gulfmark International, Inc.* ................... 1,353,750
20,000 MarkWest Hydrocarbon, Inc.* ..................... 260,000
25,000 Nuevo Energy Co.* ............................... 859,375
18,800 Oceaneering International, Inc.* ................ 272,600
12,500 Offshore Logistics, Inc.* ....................... 225,000
97,200 Parker & Parsley Petroleum Co. .................. 3,207,600
50,800 Pogo Producing Co. .............................. 1,860,550
30,200 Pride Petroleum Services, Inc.* ................. 520,950
11,962 Tejas Gas Corp.* ................................ 496,423
18,000 United Meridian Corp.* .......................... 510,750
50,000 Vintage Petroleum, Inc. ......................... 1,412,500
------------
18,466,023
------------
CONSUMER STAPLES - 9.38%
31,800 Ballard Medical Products ........................ 604,200
43,900 Bindley Western Industries, Inc. ................ 823,125
10,500 Biosite Diagnostics, Inc.* ...................... 90,563
52,600 Fine Host Corp.* ................................ 1,328,127
36,000 Gish Biomedical, Inc.* .......................... 180,000
13,600 Healthdyne Technologies, Inc.* .................. 200,600
105,151 ICN Pharmaceuticals, Inc. ....................... 2,221,315
75,000 Kinetic Concepts, Inc. .......................... 1,115,625
84,300 Lifecore Biomedical, Inc.* ...................... 1,053,750
10,700 Marquette Medical Systems, Inc., Class A* ....... 215,338
64,875 Minntech Corp. .................................. 681,188
7,583 Morrison Health Care, Inc. ...................... 112,797
78,000 Northland Cranberries, Inc., Class A ............ 897,000
58,000 Noven Pharmaceuticals, Inc.* .................... 435,000
32,767 Paracelsus Healthcare Corp.* .................... 119,625
31,100 Paragon Trade Brands, Inc.* ..................... 497,600
60,000 Physicians Corp. Of America* .................... 292,500
84,150 Res-Care, Inc.* ................................. 1,356,919
15,900 Respironics, Inc.* .............................. 296,138
48,000 Richfood Holdings, Inc. ......................... 978,000
56,500 Rykoff-Sexton, Inc. ............................. 1,024,063
31,300 SOS Staffing Services, Inc.* .................... 367,775
21,700 Staffmark, Inc.* ................................ 292,950
130,500 Unilab Corp.* ................................... 73,406
20,000 United American Healthcare Corp.* ............... 87,500
25,000 U.S. Bioscience, Inc.* .......................... 220,313
32,000 Western Staff Services, Inc.* ................... 304,000
------------
15,869,417
------------
CAPITAL GOODS AND CONSTRUCTION - 8.73%
32,000 ABC Rail Products Corp.* ........................ 556,000
93,200 Aeroflex, Inc.* ................................. 314,550
41,000 Analysis & Technology, Inc. ..................... 579,125
20,000 Atchison Casting Corp.* ......................... 355,000
44,500 Brown & Sharpe Manufacturing Co., Class A* ...... 556,250
20,328 Chemi-Trol Chemical Co. ......................... 259,183
31,950 Chicago Bridge & Iron Co. N.V.* ................. 543,150
55,200 Comptek Research, Inc.* ......................... 303,600
23,300 Durco International, Inc. ....................... 579,588
77,000 Evans & Sutherland Computer Corp.* .............. 1,790,250
45,250 Farr Co.* ....................................... 543,000
73,700 Giga-Tronics, Inc.* ............................. 552,750
20,000 Gilbert Associates,Inc., Class A ................ 265,000
37,000 Global Industrial Technologies, Inc.* ........... 675,250
34,600 Key Technology, Inc.* ........................... 579,550
54,500 Layne, Inc.* .................................... 858,375
104,300 LSI Industries, Inc. ........................... 1,134,263
12,600 NCI Building Systems, Inc.* ..................... 390,600
27,900 Newpark Resources, Inc.* ........................ 1,252,013
15,000 Osmonics, Inc.* ................................. 236,250
21,600 Rexel, Inc.* .................................... 380,700
10,650 Shaw Group, Inc.* ............................... 143,775
15,000 Sun Hydraulics, Inc. ............................ 159,375
21,200 Triangle Pacific Corp.* ......................... 575,050
17,000 Valmont Industries, Inc. ........................ 677,875
24,299 Varlen Corp. .................................... 504,205
------------
14,764,727
------------
BASIC MATERIALS - 3.76%
35,700 Dexter Corp. .................................... 1,066,538
20,000 Elcor Corp. ..................................... 522,500
10,300 Fuller (H.B.) Co. ............................... 552,338
17,000 Greif Brothers Corp., Class A ................... 433,500
22,000 Petrolite Corp. ................................. 1,333,750
64,000 Sealright Co., Inc. ............................. 680,000
28,700 SEDA Specialty Packaging Corp.* ................. 473,550
26,700 Steel of West Virginia, Inc.* ................... 240,300
64,500 Sybron Chemicals, Inc.* ......................... 1,056,188
------------
6,358,664
------------
TRANSPORTATION - 1.63%
62,000 AirNet Systems, Inc.* ........................... 961,000
20,000 Arnold Industries, Inc. ......................... 295,000
28,875 Cannon Express, Inc., Class A* .................. 187,688
77,000 Simon Transportation Services, Inc.* ............ 1,309,000
------------
2,752,688
------------
UTILITIES - 1.63%
47,000 Aerial Communications, Inc.* .................... $ 229,125
20,400 Atmos Energy Corp. .............................. 461,550
21,300 Cascade Natural Gas Corp. ....................... 348,788
20,000 Middlesex Water Co., Inc. ....................... 340,000
33,333 NTL, Inc.* ...................................... 649,994
43,300 Southwest Gas Corp. ............................. 719,863
------------
2,749,320
------------
TOTAL COMMON STOCKS ............................. 151,906,982
(Cost $128,792,432) ------------
PAR VALUE
---------
CORPORATE BOND - 0.21%
$ 369,900 MacNeal-Schwendler Corp.
Convertible Subordinate Debenture
7.88%, 08/18/04 ................................ 361,577
-------------
TOTAL CORPORATE BOND ........................... 361,577
(Cost $369,900) --------------
U.S. AGENCY OBLIGATION (A) - 10.23%
FEDERAL HOME LOAN BANK - 10.23%
17,290,000 5.27%, 05/01/97 ................................ 17,290,000
-------------
TOTAL U.S. AGENCY OBLIGATION ................... 17,290,000
(Cost $17,290,000) -------------
TOTAL INVESTMENTS - 100.28% ............................... 169,558,559
(Cost $146,452,332) -------------
NET OTHER ASSETS AND LIABILITIES - (0.28)% ................ (476,979)
--------------
NET ASSETS - 100.00% ...................................... $ 169,081,580
=============
- ----------------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
<PAGE>
----------------
SMALL COMPANY EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 94.79%
TECHNOLOGY - 28.85%
13,000 Actel Corp.* ................................... $ 232,375
38,700 Affiliated Computer Services, Inc., Class A* ... 1,006,200
26,800 Allen Telecom, Inc.* ........................... 462,300
24,946 Alternative Resources Corp.* ................... 361,717
56,175 ANADIGICS, Inc.* ............................... 1,586,944
85,750 Arbor Software Corp.* .......................... 2,133,031
77,900 Aseco Corp.* ................................... 701,100
47,232 Aspen Technology, Inc.* ........................ 1,434,672
16,850 Aware, Inc.* ................................... 176,925
35,100 Berg Electronics Corp.* ........................ 1,053,000
29,605 BISYS Group, Inc.* ............................. 947,360
27,100 Black Box Corp.* ............................... 640,238
20,350 Broadband Technologies, Inc.* .................. 190,781
105,800 Cognex Corp.* .................................. 2,605,325
30,719 Comverse Technology, Inc.* ..................... 1,205,721
137,431 Concord EFS, Inc.* ............................. 2,714,262
68,616 Cree Research, Inc.* ........................... 823,392
35,450 Cybercash, Inc.* ............................... 496,300
33,300 CyberMedia, Inc.* .............................. 416,250
120,200 Deltek Systems, Inc.* .......................... 1,171,950
169,944 DSP Communications, Inc.* ...................... 1,348,931
47,000 Dynatech Corp.* ................................ 1,633,250
33,900 Eltron International, Inc.* .................... 678,000
70,600 FactSet Research Systems, Inc.* ................ 1,429,650
72,500 Forrester Research, Inc.* ...................... 1,323,125
59,282 Helix Technology Corp. ......................... 1,800,691
107,500 IDT Corp.* ..................................... 591,250
87,150 IKOS Systems, Inc.* ............................ 1,437,975
50,650 ILOG S.A., ADR* ................................ 215,263
19,200 Infinity Financial Technology, Inc.* ........... 242,400
68,500 Information Management Resources, Inc.* ........ 1,746,750
87,892 Inso Corp.* .................................... 1,845,732
49,400 International Telecommunication
Data Systems, Inc.* ............................ 592,800
24,150 I2 Technologies, Inc.* ......................... 917,700
74,300 JDA Software Group, Inc.* ...................... 1,876,075
82,750 Kent Electronics Corp.* ........................ 2,068,750
97,250 Lightbridge, Inc.* ............................. 680,750
64,450 May & Speh, Inc.* .............................. 475,319
67,800 Natural Microsystems Corp.* .................... 1,423,800
157,500 Norstan, Inc.* ................................. 2,205,000
23,850 Novellus Systems, Inc.* ........................ 1,377,338
29,600 Open Market, Inc.* ............................. 222,000
34,750 Ortel Corp.* ................................... 451,750
36,250 P-Com, Inc.* ................................... 1,037,656
105,300 Periphonics Corp.* ............................. 1,447,875
377,800 Phonetel Technologies, Inc.* ................... 873,663
74,750 Planning Sciences International Plc, ADR* ...... 327,031
221,120 Polycom, Inc.* ................................. 635,720
66,700 Premisys Communications, Inc.* ................. 591,963
57,399 PRI Automation, Inc.* .......................... 2,941,699
65,739 Pure Atria Corp.* .............................. 640,955
33,900 RadiSys Corp.* ................................. 995,813
58,250 Rational Software Corp.* ....................... $ 804,578
104,100 Registry, Inc.* ................................ 4,411,238
130,150 Restrac, Inc.* ................................. 325,375
68,500 Richey Electronics, Inc.* ...................... 693,563
45,270 Saville Systems Ireland Plc, ADR* .............. 1,861,729
53,400 SEEC, Inc.* .................................... 620,775
104,900 Sigma Designs, Inc.* ........................... 281,919
104,450 SmarTalk Teleservices, Inc.* ................... 1,122,838
44,350 Speedfam International, Inc.* .................. 1,075,488
62,695 SPSS, Inc.* .................................... 1,661,418
22,900 STB Systems, Inc.* ............................. 581,088
97,676 SystemSoft Corp.* .............................. 744,780
62,000 Tekelec* ....................................... 1,426,000
128,000 Teknor Industrial Computers, Inc.* ............. 778,240
68,500 Teltrend, Inc.* ................................ 1,267,250
38,451 TESSCO Technologies, Inc.* ..................... 605,603
78,789 The Learning Company, Inc.* .................... 512,129
75,400 Tollgrade Communications, Inc.* ................ 1,489,150
65,600 Total Control Products, Inc.* .................. 508,400
48,500 TriQuint Semiconductor, Inc.* .................. 1,442,875
34,100 Unitrode Corp.* ................................ 1,346,950
22,700 VideoServer, Inc.* ............................. 383,063
117,650 Viisage Technology, Inc.* ...................... 1,073,556
34,100 Visio Corp.* ................................... 1,730,575
40,800 VLSI Technology, Inc.* ......................... 810,900
178,970 VMARK Software, Inc.* .......................... 1,163,305
115,600 Voice Control Systems, Inc.* ................... 563,550
176,960 White Pine Software, Inc.* ..................... 519,820
124,400 Whittman-Hart, Inc.* ........................... 2,363,600
106,400 Xionics Document Technologies, Inc.* ........... 1,236,900
------------
89,843,172
------------
CONSUMER STAPLES - 19.97%
84,400 Anesta Corp.* .................................. 1,181,600
47,250 Arterial Vascular Engineering, Inc.* ........... 702,817
122,650 Biofield Corp.* ................................ 544,259
13,000 Biopsys Medical, Inc.* ......................... 266,500
103,850 Boston Biomedica, Inc.* ........................ 986,575
78,477 Casey's General Stores, Inc. ................... 1,481,253
151,097 Chad Therapeutics, Inc.* ....................... 982,131
82,575 Clintrials Research, Inc.* ..................... 639,956
23,300 CRA Managed Care, Inc.* ........................ 821,325
73,600 Cytyc Corp.* ................................... 1,564,000
44,520 G & K Services, Inc., Class A .................. 1,291,080
64,900 Heartport, Inc.* ............................... 1,663,063
129,454 Hologic, Inc.* ................................. 2,686,171
103,773 Horizon Mental Health Management, Inc.* ........ 1,699,283
94,700 HPR, Inc.* ..................................... 1,337,638
65,427 Lunar Corp.* ................................... 1,144,973
161,550 MedCath, Inc.* ................................. 2,140,538
41,895 Medicis Pharmaceutical Corp.,
Class A* ....................................... 1,026,428
69,550 National Surgery Centers, Inc.* ................ 2,086,500
343,250 Nature's Sunshine Products, Inc. ............... 4,676,781
125,800 NeoPath, Inc.* ................................. 1,981,350
81,356 On Assignment, Inc.* ........................... 2,522,036
257,800 OncorMed, Inc.* ................................ 998,975
95,650 Opta Food Ingredients, Inc.* ................... 418,469
34,100 Parexel International Corp.* ................... 954,800
43,850 Patterson Dental Co.* .......................... 1,468,975
37,500 Pediatrix Medical Group, Inc.* ................. 1,237,500
68,500 Penederm, Inc.* ................................ 736,375
78,150 Pharmaceutical Product
Development, Inc.* ............................. 1,309,013
75,600 Photoelectron Corp.* ........................... 330,750
136,800 Physicians Specialty Corp.* .................... 803,700
60,600 Prime Medical Services, Inc.* .................. 560,550
51,698 QLT Phototherapeutics, Inc.* ................... 1,195,516
174,530 Rexall Sundown, Inc.* .......................... 3,468,784
45,460 Robert Half International, Inc.* ............... 1,784,305
56,182 Romac International, Inc.* ..................... 1,095,549
114,050 RoTech Medical Corp.* .......................... 1,796,288
129,619 RTW, Inc.* ..................................... 1,085,559
104,400 Sano Corp.* .................................... 991,800
31,792 Sofamor/Danek Group, Inc.* ..................... 1,239,888
47,100 Spine-Tech, Inc.* .............................. 1,354,125
139,500 Tecnol Medical Products, Inc.* ................. 2,458,688
80,430 TheraTech, Inc.* ............................... 743,978
103,250 Urologix, Inc.* ................................ 1,677,813
95,600 Weider Nutrition International, Inc.* .......... 1,051,600
------------
62,189,257
------------
ENERGY - 15.38%
129,322 Alamco, Inc.* ................................... 1,697,351
39,290 American Oilfield Divers, Inc.* ................. 353,610
42,350 Belco Oil & Gas Corp.* .......................... 857,588
60,162 Bellwether Exploration Co.* ..................... 526,418
42,321 BJ Services Co.* ................................ 1,994,377
46,858 Brown (Tom), Inc.* .............................. 855,159
82,900 Cairn Energy USA, Inc.* ......................... 922,263
99,050 Chieftain International, Inc.* .................. 1,981,000
145,850 Coho Energy, Inc.* .............................. 1,093,875
276,320 Comstock Resources, Inc.* ....................... 2,348,720
190,890 Dawson Production Services, Inc.* ............... 2,052,068
49,274 Devon Energy Corp. .............................. 1,626,042
61,894 Dreco Energy Services, Ltd., Class A* ........... 1,965,135
33,700 Flores & Rucks, Inc.* ........................... 1,470,163
107,240 HarCor Energy, Inc.* ............................ 623,333
50,400 KCS Energy, Inc. ................................ 1,638,000
647,500 Magin Energy, Inc.* ............................. 1,130,341
117,800 Marine Drilling Co., Inc.* ...................... 1,855,350
448,400 Mercantile International
Petroleum, Inc.* ................................ 605,340
18,750 National-Oilwell, Inc.* ......................... 728,906
78,400 Nuevo Energy Co.* ............................... 2,695,000
99,700 Offshore Logistics, Inc.* ....................... 1,794,600
83,371 PetroCorp, Inc.* ................................ 729,496
26,000 Pool Energy Services Co.* ....................... 338,000
213,433 Pride Petroleum Services, Inc.* ................. 3,681,719
26,850 Production Operators Corp. ...................... 1,543,875
90,100 Stone Energy Corp.* ............................. 2,410,175
136,807 Swift Energy Co.* ............................... 2,890,048
229,176 Texas Meridian Resources Corp.* ................. 2,549,583
168,900 Titan Exploration, Inc.* ........................ 1,266,750
58,900 Vintage Petroleum, Inc. ......................... 1,663,925
------------
47,888,210
------------
CONSUMER CYCLICAL - 14.09%
113,528 ABR Information Services, Inc.* ................. 2,284,751
56,150 Amrion, Inc.* ................................... 982,625
81,600 AnnTaylor Stores Corp.* ......................... 1,978,800
127,150 Applied Graphics Technologies, Inc.* ............ 3,846,288
97,850 Barnett, Inc.* .................................. 1,810,225
43,847 CDW Computer Centers, Inc.* ..................... 2,104,656
68,900 Dendrite International, Inc.* ................... 577,038
85,900 Desktop Data, Inc.* ............................. 622,775
150,265 Durakon Industries, Inc.* ....................... 1,540,216
58,450 Equity Marketing, Inc.* ......................... 1,022,875
145,550 First Years, Inc. ............................... 2,219,638
136,900 Funco, Inc.* .................................... 2,378,638
42,300 Harman International Industries, Inc. ........... 1,617,975
90,400 Keystone Automotive Industries, Inc.* ........... 1,423,800
115,369 Lo-Jack Corp.* .................................. 1,139,269
87,500 Manhattan Bagel Co., Inc.* ...................... 470,313
69,066 Men's Wearhouse, Inc.* .......................... 1,718,017
23,250 Michaels Stores, Inc.* .......................... 447,563
115,400 National Media Corp.* ........................... 923,200
29,200 Papa John's International, Inc.* ................ 751,900
150,320 Pre-Paid Legal Services, Inc.* .................. 2,142,060
61,450 RockShox, Inc.* ................................. 925,591
31,510 Rural/Metro Corp.* .............................. 905,913
121,050 Safety 1st, Inc.* ............................... 817,088
153,000 SRS Labs, Inc.* ................................. 1,415,250
85,800 The O'Gara Co.* ................................. 916,988
173,500 Travis Boats & Motors, Inc.* .................... 1,865,125
6,400 Ugly Duckling Corp.* ............................ 90,400
153,300 West Coast Entertainment Corp.* ................. 843,150
102,200 Wilmar Industries, Inc.* ........................ 1,686,300
60,277 Wolverine World Wide, Inc. ...................... 2,426,149
------------
43,894,576
------------
CAPITAL GOODS AND CONSTRUCTION - 5.94%
75,389 AFC Cable Systems, Inc.* ........................ 1,658,558
9,700 Chicago Miniature Lamp, Inc.* ................... 226,738
81,600 Cuno, Inc.* ..................................... 1,132,200
122,500 Firearms Training Systems, Inc.* ................ 1,715,000
25,100 Greenfield Industries, Inc. ..................... 511,413
124,400 Hexcel Corp.* ................................... 2,223,650
81,600 Maverick Tube Corp.* ............................ 1,785,000
60,300 MSC Industrial Direct Co., Inc.,Class A* ........ 1,854,225
169,110 PCD, Inc.* ...................................... 2,494,373
123,700 RMI Titanium Co.* ............................... 2,644,088
60,018 Tetra Technologies, Inc.* ....................... 1,395,419
51,282 Thermedics, Inc.* ............................... 858,974
1 Varlen Corp. .................................... 21
------------
18,499,659
------------
FINANCE - 5.48%
131,400 ACC Consumer Finance Corp.* ..................... 1,100,475
10,050 American Business Financial Services, Inc. ...... 192,206
20,450 Ameritrade Holding Corp., Class A* .............. 255,625
86,100 Colonial Downs Holdings, Inc., Class A* ......... 613,463
53,650 Consumer Portfolio Services, Inc.* .............. 415,788
150,022 Credit Acceptance Corp.* ........................ 1,622,113
100,600 CRIIMI MAE, Inc., REIT .......................... 1,571,875
34,100 Enhance Financial Services Group, Inc. .......... 1,312,850
163,822 General Acceptance Corp.* ....................... 655,288
126,985 HCC Insurance Holdings, Inc. .................... 3,190,498
41,100 Imperial Credit Industries, Inc.* ............... 598,519
202,000 Long Beach Financial Corp.* ..................... 1,376,125
99,900 Prime Retail, Inc., REIT ........................ 1,211,288
32,900 Redwood Trust, Inc., REIT ....................... 1,546,300
75,600 Riggs National Corp. ............................ 1,398,600
------------
17,061,013
------------
TRANSPORTATION - 2.94%
112,800 AirNet Systems, Inc.* ........................... $ 1,748,400
45,000 Alaska Air Group, Inc.* ......................... 1,119,375
79,200 Atlas Air, Inc.* ................................ 2,178,000
175,050 Dynamex, Inc.* .................................. 1,006,538
45,750 Midwest Express Holdings, Inc.* ................. 1,887,188
34,100 Trico Marine Services, Inc.* .................... 1,210,550
------------
9,150,051
------------
BASIC MATERIALS - 1.39%
32,500 AMCOL International Corp. ....................... 552,500
30,580 Brady (W.H.) Co., Class A ....................... 768,323
29,891 OM Group, Inc. .................................. 833,212
84,400 Titanium Metals Corp.* .......................... 2,183,850
------------
4,337,885
------------
UTILITIES - 0.75%
114,400 Davel Communications Group, Inc.* ............... 1,372,800
89,500 HighwayMaster Communications, Inc.* ............. 984,500
2,357,300
------------
TOTAL COMMON STOCKS ............................. 295,221,123
(Cost $317,722,115) ------------
PAR VALUE
---------
U.S. AGENCY OBLIGATION (A) - 5.68%
FEDERAL HOME LOAN BANK - 5.68%
$17,665,000 5.27%, 05/01/97 ............................... 17,665,000
-------------
TOTAL U.S. AGENCY OBLIGATION .................. 17,665,000
(Cost $17,665,000) -------------
TOTAL INVESTMENTS - 100.47% ............................... 312,886,123
(Cost $335,387,115) -------------
NET OTHER ASSETS AND LIABILITIES - (0.47)% ................ (1,449,349)
-------------
NET ASSETS - 100.00% ...................................... $ 311,436,774
=============
- ---------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
<PAGE>
----------------
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
THE GALAXY FUND
----------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 93.84%
AUSTRALIA - 5.16%
541,884 Australia & New Zealand Banking ................ $ 3,468,929
392,075 Coca-Cola Amatil, Ltd .......................... 4,492,403
819,635 News Corp., Ltd ................................ 3,786,284
272,207 Western Mining Corp., Ltd ...................... 1,617,030
-----------
13,364,646
-----------
BRAZIL - 3.04%
50,778 Cia Vale Do Rio Doce, ADR ....................... 1,289,253
57,228 Telebras, ADR ................................... 6,566,913
------------
7,856,166
------------
FRANCE - 5.89%
11,670 Alcatel Alsthom ................................. 1,297,694
2,589 Carrefour Supermarche S.A. ...................... 1,616,469
50,078 Renault ......................................... 1,185,802
67,374 Schneider S.A. .................................. 3,797,914
50,706 Total S.A., Class B ............................. 4,204,957
51,011 Valeo ........................................... 3,146,467
------------
15,249,303
------------
GERMANY - 6.55%
128,969 Hoechst AG ...................................... 5,060,704
10,535 Mannesmann AG ................................... 4,144,244
12,238 Volkswagen AG ................................... 7,759,771
------------
16,964,719
------------
HONG KONG - 3.83%
603,000 Hutchison Whampoa, Ltd ......................... 4,475,882
585,000 New World Development Co., Ltd ................. 3,375,645
190,000 Sun Hung Kai Properties, Ltd ................... 2,060,281
------------
9,911,808
------------
INDIA - 1.36%
32,400 Hindalco Industries, Ltd, GDR .................. 1,048,788
151,800 India Cements, Ltd, GDR ........................ 417,450
39,600 Reliance Industries, Ltd, GDR .................. 772,200
104,800 Tata Engineering & Locomotive Co., GDR ......... 1,278,560
------------
3,516,998
------------
ITALY - 7.33%
1,138,000 Fiat SPA ..................................... 3,755,939
2,64,1600 Istituto Nationale Delle Assicuraz ........... 3,541,421
2,217,900 Pirelli SPA .................................. 4,884,399
1,434,000 Stet - Societa Finanziaria Telefonica SPA .... 6,781,004
------------
18,962,763
------------
JAPAN - 20.23%
196,000 Canon Inc. ...................................... 4,648,648
438 DDI Corp. ....................................... 2,909,416
48,000 Ito-Yokado Co., Ltd ............................. 2,303,364
45,000 Kyocera Corp. ................................... 2,694,823
137,000 Matsuzakaya Co. ................................. 937,010
110,000 Murata Manufacturing Co., Ltd ................... 4,056,417
1,377,000 Nippon Steel Co. ................................ 3,927,775
444 Nippon Telegraph & Telephone Corp. .............. 3,131,195
217,000 Nippondenso Co. ................................. 4,941,532
1,690,000 NKK Corp. ....................................... 3,648,727
94 NTT Data Corp. .................................. 2,747,932
56,000 Rohm Corp. ...................................... 4,341,974
309,000 Sharp Corp. ..................................... 4,017,414
53,200 Sony Corp. ...................................... 3,873,358
137,000 Sumitomo Bank ................................... 1,565,282
371,000 Sumitomo Realty & Development Co., Ltd .......... 2,633,921
------------
52,378,788
------------
LUXEMBOURG - 0.12%
15,500 Reliance Industries Ltd, GDR (B) ................ 302,250
------------
MALAYSIA - 0.84%
1,592,000 Renong Berhad ................................... 2,181,879
------------
MEXICO - 3.84%
22,000 Acer Computec Latino, GDR* ..................... 362,399
207,800 Carso Global Telecom, Series A-1* .............. 645,411
211,100 Grupo Carso S.A., Series A1 .................... 1,218,414
111,700 Grupo Televisa S.A., ADR* ...................... 2,583,063
415,000 Kimberly-Clark de Mexico S.A., Class A ......... 1,539,444
87,168 Telefonos de Mexico S.A., Class L, ADR ......... 3,595,680
------------
9,944,411
------------
NETHERLANDS - 5.67%
151,170 Ing Groep NV ................................... 5,936,275
361,320 Vnu-Verenigd Bezit ............................. 7,474,532
28,730 Wolters Kluwer Coupon* ......................... 31,088
10,495 Wolters Kluwer NV .............................. 1,243,923
------------
14,685,818
------------
SINGAPORE - 1.55%
267,000 City Developments, Ltd ......................... 2,159,894
155,750 Development Bank of Singapore, Ltd ............. 1,852,217
------------
4,012,111
------------
SPAIN - 4.93%
39,470 Banco de Santander S.A. ........................ 2,972,240
58,090 Endesa ......................................... 4,064,212
223,700 Telefonica de Espana S.A. ...................... 5,735,112
------------
12,771,564
------------
SWEDEN - 5.72%
188,550 Astra AB, Class A .............................. 7,714,561
24,290 Hennes & Mauritz AB, Class B ................... 3,514,010
351,160 Skandinaviska Enskilda Bank, Class A ........... 3,580,756
------------
14,809,327
------------
SWITZERLAND - 4.83%
5,907 Ciba Speciallty Chemicals AG, Registered* ....... 509,142
5,907 Novartis AG, Registered ......................... 7,785,461
499 Roche Holdings AG ............................... 4,216,363
-----------
12,510,966
----------
THAILAND - 0.47%
132,200 Bangkok Bank Public Co., Ltd ................... 1,224,587
-----------
UNITED KINGDOM - 12.48%
230,400 Boc Group, Plc ................................. 3,534,723
269,966 British Aerospace, Plc ......................... 5,742,792
380,361 British Petroleum, Plc ......................... 4,369,589
262,837 Carlton Communications, Plc .................... 2,153,720
282,413 Glaxo Wellcome, Plc ............................ 5,560,781
504,203 Orange, Plc* ................................... 1,767,138
1 Powergen, Plc .................................. 11
633,839 Safeway, Plc ................................... 3,501,930
1,268,179 Vodafone Group, Plc ............................ 5,669,093
------------
32,299,777
------------
TOTAL COMMON STOCKS ............................ 242,947,881
(Cost $218,402,171) ------------
U.S. AGENCY OBLIGATION (A) - 6.84%
FEDERAL HOME LOAN BANK - 6.84%
$17,710,000 5.27%, 05/01/97 ............................. $ 17,710,000
-------------
TOTAL U.S. AGENCY OBLIGATION ................ 17,710,000
(Cost $17,710,000) -------------
TOTAL INVESTMENTS - 100.68% ............................. 260,657,881
(Cost $236,112,171) -------------
NET OTHER ASSETS AND LIABILITIES - (0.68)% .............. (1,772,314)
--------------
NET ASSETS - 100.00% .................................... $ 258,885,567
=============
- -----------------------------
* Non-income producing security.
(A) Annualized yield at time of purchase.
(B) Securities exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold, in transactions
exempt from registration, to qualified institutional buyers. At 04/30/97,
these securities amounted to $302,250, or 0.12% of net assets.
ADR American Depositary Receipt
GDR Global Depositary Receipt
<PAGE>
FORWARD FOREIGN CURRENCY CONTRACTS SOLD:
<TABLE>
<CAPTION>
UNREALIZED
CURRENCY CONTRACTS SETTLEMENT CONTRACTS AT IN EXCHANGE APPRECIATION
VALUE TO DELIVER DATES VALUE FOR U.S. $ (DEPRECIATION)
-------- ---------- ---------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C>
3,513,000 CHF 06/18/97 $ 2,398,842 $ 2,410,540 $ 11,698
3,513,000 CHF 06/18/97 2,398,842 2,409,465 10,623
17,855,000 DEM 06/18/97 10,355,359 10,327,794 (27,565)
20,215,000,000 ITL 06/18/97 11,801,274 11,877,622 76,348
----------- ----------- --------
$26,954,317 $27,025,421 $ 71,104
=========== =========== ========
</TABLE>
DEM Deutsche Marks
CHF Swiss Francs
ITL Italian Lira
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
STATEMENTS OF ASSETS AND LIABILITIES
THE GALAXY FUND APRIL 30, 1997 (UNAUDITED)
---------------
<CAPTION>
ASSET ALLOCATION EQUITY INCOME GROWTH AND INCOME
FUND FUND FUND
---------------- ------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost ............................ $ 261,582,815 $ 195,047,445 $ 302,541,408
Net unrealized appreciation .................... 43,455,903 61,094,079 47,440,779
------------- ------------- -------------
Total investments at value .................. 305,038,718 256,141,524 349,982,187
Cash ............................................. 180 1,539 644
Receivable for forward foreign currency contracts
sold ............................................ -- -- --
Receivable for foreign currency sold .............. -- -- --
Foreign currency at value (Cost $2,391,478) ....... -- -- --
Receivable for investments sold ................... 1,015,546 -- 620,154
Receivable for shares sold ........................ 1,083,878 181,859 899,962
Interest and dividend receivable .................. 2,088,941 493,822 306,528
Tax reclaim receivable ............................ -- -- --
Receivable from investment adviser (Note 4) ....... 10,892 2,315 52,460
------------- ------------- -------------
Total Assets ................................ 309,238,155 256,821,059 351,861,935
------------- ------------- -------------
LIABILITIES:
Forward foreign currency contracts sold at value
(cost $27,025,421) .............................. -- -- --
Payable for foreign currency purchased ............ -- -- --
Payable for investments purchased ................. 5,790,110 -- 2,032,430
Payable to custodian .............................. -- -- --
Payable for shares repurchased .................... 462,632 65,676 1,870,917
Advisory fee payable (Note 3) ..................... 178,185 152,127 205,877
Payable to Fleet and affiliates (Note 3) .......... 61,926 33,480 38,128
Payable to FDISG (Note 3) ......................... 31,243 40,803 31,244
Trustees' fees and expenses payable (Note 3) ...... 3,003 3,375 4,322
Accrued expenses and other payables ............... 48,396 25,900 14,498
------------- ------------- -------------
Total Liabilities ........................... 6,575,495 321,361 4,197,416
------------- ------------- -------------
NET ASSETS ........................................... $ 302,662,660 $ 256,499,698 $ 347,664,519
============= ============= =============
NET ASSETS CONSISTS OF:
Par value (Note 5) ................................ $ 20,271 $ 15,060 $ 24,564
Paid in capital in excess of par value ............ 248,049,704 193,859,845 269,232,319
Undistributed (overdistributed) net investment
income (loss) ................................... 1,004,783 387,691 317,717
Accumulated net realized gain on investments sold . 10,131,999 1,143,023 30,649,140
Net unrealized appreciation (depreciation) of
investments, foreign currency and forward
foreign currency contracts .................... 43,455,903 61,094,079 47,440,779
------------- ------------- -------------
TOTAL NET ASSETS ..................................... $ 302,662,660 $ 256,499,698 $ 347,664,519
============= ============= =============
Retail A Shares:
Net Assets ........................................ $ 138,379,121 $ 145,985,608 $ 103,856,620
Shares of beneficial interest outstanding ......... 9,268,885 8,574,247 7,345,662
NET ASSET VALUE and redemption
price per share ................................ $ 14.93 $ 17.03 $ 14.14
Sales charge - 3.75% of offering price ............ 0.58 0.66 0.55
------------- ------------- -------------
Maximum offering price per share .................. $ 15.51 $ 17.69 $ 14.69
============= ============= =============
Retail B Shares:
Net Assets ........................................ $ 14,545,489 $ N/A $ 18,247,799
Shares of beneficial interest outstanding ......... 975,596 N/A 1,292,232
NET ASSET VALUE and offering
price per share* ............................... $ 14.91 $ N/A $ 14.12
============= ========== =============
Trust Shares:
Net Assets ........................................ $ 149,738,050 $ 110,514,090 $ 225,560,100
Shares of beneficial interest outstanding ......... 10,026,193 6,485,353 15,926,008
NET ASSET VALUE, offering and redemption
price per share ................................ $ 14.93 $ 17.04 $ 14.16
============= ============= =============
- ----------------------------
* REDEMPTION PRICE PER SHARE IS EQUAL TO THE NET ASSET VALUE PER SHARE LESS ANY APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
EQUITY VALUE EQUITY GROWTH SMALL CAP SMALL COMPANY INTERNATIONAL
FUND FUND VALUE FUND EQUITY FUND EQUITY FUND
------------ ------------- ----------------------- ------------- ------------
<S> <C> <C> <C> <C>
$ 310,188,496 $ 620,542,512 $ 146,452,332 $ 335,387,115 $ 236,112,171
52,460,278 225,990,938 23,106,227 (22,500,992) 24,545,710
------------- ------------- ------------- ------------- -------------
362,648,774 846,533,450 169,558,559 312,886,123 260,657,881
538 1,378 4,185 3,635 --
-- -- -- -- 27,025,421
-- -- -- -- 3,406,830
-- -- -- -- 2,366,623
657,138 -- 173,569 3,841,666 3,398,674
675,443 491,487 116,338 498,639 323,661
359,274 756,220 36,230 61,462 590,682
-- -- -- -- 249,787
8,279 12,190 24,898 180,647 88,076
------------- ------------- ------------- ------------- -------------
364,349,446 847,794,725 169,913,779 317,472,172 298,107,635
------------- ------------- ------------- ------------- -------------
-- -- -- -- 26,954,317
-- -- -- -- 5,810,603
-- 2,608,575 326,638 4,788,524 5,780,600
-- -- -- -- 5,588
547,706 1,732,437 279,935 834,223 369,589
211,281 494,033 104,079 191,543 189,697
46,905 67,533 32,089 67,979 20,233
53,144 97,065 23,526 46,069 37,691
4,304 8,055 3,220 1,464 1,503
40,681 36,512 62,712 105,596 52,247
------------- ------------- ------------- ------------- -------------
904,021 5,044,210 832,199 6,035,398 39,222,068
------------- ------------- ------------- ------------- -------------
$ 363,445,425 $ 842,750,515 $ 169,081,580 $ 311,436,774 $ 258,885,567
============= ============= ============= ============= =============
$ 23,473 $ 39,953 $ 12,625 $ 20,398 $ 18,113
287,156,619 552,950,959 131,036,505 313,870,738 234,008,035
72,983 262,896 (185,668) (1,127,858) (129,854)
23,732,072 63,505,769 15,111,891 21,174,488 407,830
52,460,278 225,990,938 23,106,227 (22,500,992) 24,581,443
------------- ------------- ------------- ------------- -------------
$ 363,445,425 $ 842,750,515 $ 169,081,580 $ 311,436,774 $ 258,885,567
============= ============= ============= ============= =============
$ 148,453,349 $ 184,308,874 $ 38,999,588 $ 94,875,982 $ 39,482,192
9,587,479 8,743,868 2,916,959 6,281,175 2,780,022
$ 15.48 $ 21.08 $ 13.37 $ 15.10 $ 14.20
0.60 0.82 0.52 0.59 0.55
------------- ------------- ------------- ------------- -------------
$ 16.08 $ 21.90 $ 13.89 $ 15.69 $ 14.75
============= ============= ============= ============= =============
$ 7,571,630 $ 11,191,916 $ N/A $ 7,432,845 $ N/A
488,167 535,003 N/A 495,324 N/A
$ 15.51 $ 20.92 $ N/A $ 15.01 $ N/A
============= ============= ============= ============= =============
$ 207,420,446 $ 647,249,725 $ 130,081,992 $ 209,127,947 $ 219,403,375
13,397,422 30,673,702 9,707,783 13,621,447 15,332,835
$ 15.48 $ 21.10 $ 13.40 $ 15.35 $ 14.31
============= ============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
---------------
STATEMENTS OF OPERATIONS
THE GALAXY FUND FOR THE SIX MONTHS ENDED APRIL 30,1997 (UNAUDITED)
---------------
<CAPTION>
ASSET ALLOCATION EQUITY INCOME GROWTH AND INCOME
FUND FUND FUND
---------------- ------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend (Note 2) ................................. $ 1,166,790 $ 2,652,995 $ 3,175,865
Interest (Note 2) ................................. 4,281,265 1,284,333 798,497
Less: net foreign taxes withheld (Note 2) ......... -- -- --
------------ ----------- ------------
Total Investment Income ........................ 5,448,055 3,937,328 3,974,362
------------ ----------- ------------
EXPENSES:
Investment advisory fee (Note 3) .................. 1,019,735 917,397 1,152,852
Administration fee (Note 3) ....................... 111,426 100,255 125,962
Custodian fee ..................................... 9,557 8,173 17,715
Fund accounting fee (Note 3) ...................... 30,386 36,440 32,521
Legal fee (Note 3) ................................ 5,425 4,983 5,831
Audit fee ......................................... 32,967 32,500 7,613
Transfer agent fee (Note 3) ....................... 323,343 146,832 255,788
12b-1 fee (Note 3) ................................ 25,405 -- 31,937
Shareholder servicing fee (Note 3) ................ 191,771 193,667 145,214
Trustees' fees and expenses (Note 3) .............. 2,540 2,589 3,700
Amortization of organization cost (Note 2) ........ 576 -- --
Reports to shareholders ........................... 39,425 48,773 31,718
Registration fee .................................. 16,642 14,875 24,145
Insurance ......................................... 1,360 1,610 2,048
Miscellaneous ..................................... 2,933 3,285 2,620
------------ ----------- ------------
Total expenses before reimbursement/waiver ..... 1,813,491 1,511,379 1,839,664
Less: reimbursement/waiver (Note 4) ............ (12,086) -- (113,526)
------------ ----------- ------------
Total expenses net of reimbursement/waiver ..... 1,801,405 1,511,379 1,726,138
------------ ----------- ------------
NET INVESTMENT INCOME (LOSS) ......................... 3,646,650 2,425,949 2,248,224
------------ ----------- ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTES 2 & 6):
Net realized gain (loss) on investments sold ...... 10,181,858 1,142,722 30,929,065
Net realized gain on forward foreign currency
contracts and foreign currency ................. -- -- --
Net change in unrealized appreciation
(depreciation) on investments, foreign currency
and forward foreign currency contracts .......... 6,063,324 21,399,684 1,408,185
------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS ........................ 16,245,182 22,542,406 32,337,250
------------ ----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS .................. $ 19,891,832 $ 24,968,355 $ 34,585,474
============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
EQUITY VALUE EQUITY GROWTH SMALL CAP SMALL COMPANY INTERNATIONAL
FUND FUND VALUE FUND EQUITY FUND EQUITY FUND
------------ ------------- ----------------------- ------------- -----------
<S> <C> <C> <C> <C>
$ 3,072,589 $ 4,891,572 $ 282,157 $ 228,061 $ 1,673,364
548,393 1,528,220 461,720 556,673 255,393
-- -- -- -- (161,148)
------------ ------------ ------------ ------------- ------------
3,620,982 6,419,792 743,877 784,734 1,767,609
------------ ------------ ------------ ------------- ------------
1,296,325 2,939,982 644,659 1,185,974 1,083,594
141,668 321,273 70,457 129,589 94,912
11,103 13,027 16,449 19,476 118,613
32,024 48,402 20,007 31,935 54,615
7,573 17,871 3,779 4,756 3,780
7,613 13,216 7,613 35,149 42,900
284,772 437,621 118,014 330,562 173,553
12,723 21,957 -- 17,738 --
189,340 253,572 56,637 141,206 33,916
3,858 8,030 2,335 2,663 2,108
-- -- -- 457 586
82,947 76,259 23,249 100,586 43,487
17,085 21,801 23,631 85,755 45,739
1,852 3,777 1,409 1,785 1,282
4,600 8,637 1,862 2,964 7,669
------------ ------------ ------------ ------------- ------------
2,093,483 4,185,425 990,101 2,090,595 1,706,754
(9,521) (12,100) (60,556) (178,003) (377,284)
------------ ------------ ------------ ------------- ------------
2,083,962 4,173,325 929,545 1,912,592 1,329,470
------------ ------------ ------------ ------------- ------------
1,537,020 2,246,467 (185,668) (1,127,858) 438,139
------------ ------------ ------------ ------------- ------------
23,813,882 63,507,913 15,112,748 21,333,769 (595,415)
-- -- -- -- 1,004,327
6,646,643 9,790,596 (5,805,988) (71,445,301) 18,612,044
------------ ------------ ------------ ------------- ------------
30,460,525 73,298,509 9,306,760 (50,111,532) 19,020,956
$ 31,997,545 $ 75,544,976 $ 9,121,092 $ (51,239,390) $ 19,459,095
============ ============ ============ ============= ============
</TABLE>
<PAGE>
<TABLE>
---------------
THE GALAXY FUND STATEMENTS OF CHANGES IN NET ASSETS
---------------
<CAPTION>
ASSET ALLOCATION FUND
----------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996
---------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD ................................ $ 244,011,978 $ 153,138,605
------------- -------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income ............................................... 3,646,650 4,675,780
Net realized gain on investments sold ............................... 10,181,858 8,828,444
Net change in unrealized appreciation on investments ................ 6,063,324 17,143,392
------------- -------------
Net increase in net assets resulting from operations ............. 19,891,832 30,647,616
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income ............................................... (1,484,846) (2,124,795)
Net realized gain on investments .................................... (4,172,278) (805,180)
------------- -------------
Total Dividends .................................................. (5,657,124) (2,929,975)
------------- -------------
RETAIL B SHARES:
Net investment income ............................................... (64,974) (15,152)
Net realized gain on investments .................................... (156,296) --
------------- -------------
Total Dividends .................................................. (221,270) (15,152)
------------- -------------
TRUST SHARES:
Net investment income ............................................... (1,714,494) (2,323,359)
Net realized gain on investments .................................... (4,447,875) (791,001)
------------- -------------
Total Dividends .................................................. (6,162,369) (3,114,360)
------------- -------------
Total Dividends to shareholders .................................. (12,040,763) (6,059,487)
------------- -------------
NET INCREASE FROM SHARE TRANSACTIONS(1) ............................... 50,799,613 66,285,244
------------- -------------
Net increase in net assets .......................................... 58,650,682 90,873,373
------------- -------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A) .................... $ 302,662,660 $ 244,011,978
============= =============
(A) Undistributed net investment income ............................... $ 1,004,783 $ 622,447
============= =============
- ------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets - Capital Stock Activity on
pages 42-43.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
EQUITY INCOME FUND GROWTH AND INCOME FUND
------------------------------------------ -----------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
-------------- ----------- -------------- -----------
<S> <C> <C> <C>
$ 233,045,808 $ 169,620,776 $ 269,046,012 $ 240,089,195
------------- ------------- ------------- -------------
2,425,949 4,254,491 2,248,224 4,970,763
1,142,722 19,910,652 30,929,065 25,439,278
21,399,684 10,612,766 1,408,185 17,120,059
------------- ------------- ------------- -------------
24,968,355 34,777,909 34,585,474 47,530,100
------------- ------------- ------------- -------------
(1,240,082) (1,939,416) (724,812) (1,026,722)
(10,947,177) (3,071,779) (6,955,593) (3,122,453)
------------- ------------- ------------- -------------
(12,187,259) (5,011,195) (7,680,405) (4,149,175)
------------- ------------- ------------- -------------
-- -- (39,171) (12,819)
-- -- (514,692) --
------------- ------------- ------------- -------------
-- -- (553,863) (12,819)
------------- ------------- ------------- -------------
(1,223,514) (2,274,333) (1,773,564) (3,688,324)
(8,963,174) (3,159,136) (15,545,257) (10,955,643)
------------- ------------- ------------- -------------
(10,186,688) (5,433,469) (17,318,821) (14,643,967)
------------- ------------- ------------- -------------
(22,373,947) (10,444,664) (25,553,089) (18,805,961)
------------- ------------- ------------- -------------
20,859,482 39,091,787 69,586,122 232,678
------------- ------------- ------------- -------------
23,453,890 63,425,032 78,618,507 28,956,817
------------- ------------- ------------- -------------
$ 256,499,698 $ 233,045,808 $ 347,664,519 $ 269,046,012
============= ============= ============= =============
$ 387,691 $ 425,338 $ 317,717 $ 607,040
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
---------------
THE GALAXY FUND
--------------- STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
EQUITY VALUE FUND
----------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996
---------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD ................................. $ 328,740,298 $ 261,884,877
------------- -------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss) ........................................ 1,537,020 3,736,661
Net realized gain on investments sold ............................... 23,813,882 38,931,940
Net change in unrealized appreciation (depreciation) on investments . 6,646,643 15,119,614
------------- -------------
Net increase in net assets resulting from operations ............. 31,997,545 57,788,215
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income ............................................... (569,317) (1,097,197)
Dividends in excess of net investment income ........................ -- --
Net realized gain on investments .................................... (15,644,273) (7,667,373)
------------- -------------
Total Dividends .................................................. (16,213,590) (8,764,570)
------------- -------------
RETAIL B SHARES:
Net investment income ............................................... (4,176) (1,799)
Net realized gain on investments .................................... (266,616) --
------------- -------------
Total Dividends .................................................. (270,792) (1,799)
------------- -------------
TRUST SHARES:
Net investment income ............................................... (1,178,868) (2,569,302)
Dividends in excess of net investment income ........................ -- --
Net realized gain on investments .................................... (23,060,210) (12,767,986)
------------- -------------
Total Dividends .................................................. (24,239,078) (15,337,288)
------------- -------------
Total Dividends to shareholders .................................. (40,723,460) (24,103,657)
------------- -------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1) .................... 43,431,042 33,170,863
------------- -------------
Net increase (decrease) in net assets ............................... 34,705,127 66,855,421
------------- -------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A) .................... $ 363,445,425 $ 328,740,298
============= =============
(A) Undistributed (overdistributed) net investment income (loss) ...... $ 72,983 $ 288,324
============= =============
- ----------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets - Capital Stock Activity on
pages 43-44.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
EQUITY GROWTH FUND SMALL CAP VALUE FUND
------------------------------------------ --------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------- ---------------- -------------
<S> <C> <C> <C>
$ 727,214,473 $ 518,927,133 $ 171,743,742 $ 148,910,020
------------- ------------- ------------- -------------
2,246,467 5,258,877 (185,668) 631,542
63,507,913 48,132,075 15,112,748 25,576,246
9,790,596 69,078,894 (5,805,988) 9,455,938
------------- ------------- ------------- -------------
75,544,976 122,469,846 9,121,092 35,663,726
------------- ------------- ------------- -------------
(246,174) (745,079) -- (48,278)
-- -- -- (8,276)
(10,203,437) (1,757,610) (4,993,083) (1,894,554)
------------- ------------- ------------- -------------
(10,449,611) (2,502,689) (4,993,083) (1,951,108)
------------- ------------- ------------- -------------
-- -- -- --
(297,157) -- -- --
------------- ------------- ------------- -------------
(297,157) -- -- --
------------- ------------- ------------- -------------
(2,132,438) (4,784,442) -- (564,833)
-- -- -- (96,746)
(35,183,098) (7,280,310) (20,583,646) (8,656,766)
------------- ------------- ------------- -------------
(37,315,536) (12,064,752) (20,583,646) (9,318,345)
------------- ------------- ------------- -------------
(48,062,304) (14,567,441) (25,576,729) (11,269,453)
------------- ------------- ------------- -------------
88,053,370 100,384,935 13,793,475 (1,560,551)
------------- ------------- ------------- -------------
115,536,042 208,287,340 (2,662,162) 22,833,722
------------- ------------- ------------- -------------
$ 842,750,515 $ 727,214,473 $ 169,081,580 $ 171,743,742
============= ============= ============= =============
$ 262,896 $ 395,041 $ (185,668) $ --
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
---------------
THE GALAXY FUND STATEMENTS OF CHANGES IN NET ASSETS
---------------
<CAPTION>
SMALL COMPANY EQUITY FUND INTERNATIONAL EQUITY FUND
----------------------------------- ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------- ---------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD ... $ 289,749,249 $ 140,499,013 $ 207,704,676 $ 119,717,837
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS:
Net investment income (loss) ........... (1,127,858) (1,593,544) 438,139 2,133,246
Net realized gain (loss) on investments
sold ................................. 21,333,769 36,017,542 (595,415) 10,933,936
Net realized gain on forward foreign
currency contracts and foreign currency -- -- 1,004,327 477,968
Net change in unrealized appreciation
(depreciation) on investments ........ (71,445,301) 5,841,537 18,612,044 1,358,635
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations ......... (51,239,390) 40,265,535 19,459,095 14,903,785
------------- ------------- ------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .................. -- -- (451,614) (271,437)
Net realized capital gains (losses) .... (13,205,190) (513,596) (1,728,957) (538,170)
------------- ------------- ------------- -------------
Total Dividends ..................... (13,205,190) (513,596) (2,180,571) (809,607)
------------- ------------- ------------- -------------
RETAIL B SHARES:
Net realized capital gains (losses) .... (511,664) -- -- --
------------- ------------- ------------- -------------
Total Dividends ..................... (511,664) -- -- --
------------- ------------- ------------- -------------
TRUST SHARES:
Net investment income .................. -- -- (2,613,586) (1,437,075)
Net realized capital gains (losses) .... (21,205,020) (1,014,801) (8,813,613) (1,766,390)
------------- ------------- ------------- -------------
Total Dividends ..................... (21,205,020) (1,014,801) (11,427,199) (3,203,465)
------------- ------------- ------------- -------------
Total Dividends to shareholders ..... (34,921,874) (1,528,397) (13,607,770) (4,013,072)
------------- ------------- ------------- -------------
NET INCREASE FROM SHARE TRANSACTIONS(1) .. 107,848,789 110,513,098 45,329,566 77,096,126
------------- ------------- ------------- -------------
Net increase in net assets ............. 21,687,525 149,250,236 51,180,891 87,986,839
------------- ------------- ------------- -------------
NET ASSETS AT END OF THE PERIOD (INCLUDING
LINE A) ................................ $ 311,436,774 $ 289,749,249 $ 258,885,567 $ 207,704,676
============= ============= ============= =============
(A) Undistributed (overdistributed) net
investment income (loss) ............. $ (1,127,858) $ -- $ (129,854) $ 2,497,207
============= ============= ============= =============
- ----------------------------------------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net Assets - Capital Stock Activity on page 45.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
THE GALAXY FUND STATEMENTS OF CHANGES IN NET ASSETS -
--------------- Capital Stock Activity
<CAPTION>
Asset Allocation Fund Equity Income Fund
-------------------------------- ---------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1997 October 31, April 30, 1997 October 31,
(unaudited) 1996 (unaudited) 1996
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold ..................... $ 23,695,857 $ 41,468,535 $ 17,172,140 $ 43,450,662
Issued to shareholders in
reinvestment of dividends 5,539,556 2,837,001 11,747,849 4,801,918
Repurchased .............. (11,354,402) (15,903,019) (11,454,282) (15,665,697)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... $ 17,881,011 $ 28,402,517 $ 17,465,707 $ 32,586,883
============ ============ ============ ============
Retail B Shares:
Sold ..................... $ 11,447,439 $ 3,509,640 $ N/A $ N/A
Issued to shareholders in
reinvestment of dividends 212,434 14,490 N/A N/A
Repurchased .............. (927,304) (121,309) N/A N/A
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... $ 10,732,569 $ 3,402,821 $ N/A $ N/A
============ ============ ============ ============
Trust Shares:
Sold ..................... $ 35,793,410 $ 67,329,259 $ 7,025,612 $ 15,153,962
Issued to shareholders in
reinvestment of dividends 5,183,249 2,461,350 6,295,636 2,551,413
Repurchased .............. (18,790,626) (35,310,703) (9,927,473) (11,200,471)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... $ 22,186,033 $ 34,479,906 $ 3,393,775 $ 6,504,904
============ ============ ============ ============
SHARE ACTIVITY
Retail A Shares:
Sold ..................... 1,609,452 3,042,746 1,022,249 2,714,966
Issued to shareholders in
reinvestment of dividends 383,652 210,404 728,028 308,813
Repurchased .............. (770,739) (1,161,408) (682,068) (976,982)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... 1,222,365 2,091,742 1,068,209 2,046,797
============ ============ ============ ============
Retail B Shares:
Sold ..................... 779,884 252,898 N/A N/A
Issued to shareholders in
reinvestment of dividends 14,701 1,036 N/A N/A
Repurchased .............. (64,161) (8,762) N/A N/A
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... 730,424 245,172 N/A N/A
============ ============ ============ ============
Trust Shares:
Sold ..................... 2,438,281 4,908,780 421,280 942,247
Issued to shareholders in
reinvestment of dividends 359,022 182,572 390,626 166,080
Repurchased .............. (1,279,580) (2,565,189) (594,828) (696,629)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... 1,517,723 2,526,163 217,078 411,698
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
STATEMENTS OF CHANGES IN NET ASSETS -
THE GALAXY FUND Capital Stock Activity (continued)
---------------
<CAPTION>
Growth and Income Fund Equity Value Fund
------------------------------------- -------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1997 October 31, April 30, 1997 October 31,
(unaudited) 1996 (unaudited) 1996
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold ..................... $ 24,355,598 $ 26,575,675 $ 16,720,665 $ 30,226,307
Issued to shareholders in
reinvestment of dividends 7,552,970 4,114,650 16,042,224 8,656,906
Repurchased .............. (8,428,551) (11,113,016) (12,962,829) (16,887,461)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... $ 23,480,017 $ 19,577,309 $ 19,800,060 $ 21,995,752
============ ============ ============ ============
Retail B Shares:
Sold ..................... $ 13,243,148 $ 4,475,967 $ 5,515,059 $ 1,841,623
Issued to shareholders in
reinvestment of dividends 544,332 12,313 267,372 1,761
Repurchased .............. (389,995) (63,831) (148,837) (32,058)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... $ 13,397,485 $ 4,424,449 $ 5,633,594 $ 1,811,326
============ ============ ============ ============
Trust Shares:
Sold ..................... $ 59,049,571 $ 45,240,851 $ 42,491,612 $ 46,072,552
Issued to shareholders in
reinvestment of dividends 16,235,611 11,235,662 18,555,258 12,028,475
Repurchased .............. (42,576,562) (80,245,593) (43,049,482) (48,737,242)
------------ ------------ ------------ ------------
Net increase (decrease) in
shares outstanding ..... $ 32,708,620 $(23,769,080) $ 17,997,388 $ 9,363,785
============ ============ ============ ============
SHARE ACTIVITY
Retail A Shares:
Sold ..................... 1,739,939 2,022,637 1,077,200 2,045,357
Issued to shareholders in
reinvestment of dividends 562,859 333,718 1,067,732 624,668
Repurchased .............. (600,605) (849,811) (826,751) (1,139,827)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... 1,702,193 1,506,544 1,318,181 1,530,198
============ ============ ============ ============
Retail B Shares:
Sold ..................... 948,462 334,965 360,386 121,818
Issued to shareholders in
reinvestment of dividends 40,578 913 17,751 114
Repurchased .............. (28,162) (4,524) (9,746) (2,156)
------------ ------------ ------------ ------------
Net increase in
shares outstanding ..... 960,878 331,354 368,391 119,776
============ ============ ============ ============
Trust Shares:
Sold ..................... 4,207,200 3,456,356 2,765,315 3,112,141
Issued to shareholders in
reinvestment of dividends 1,209,038 924,527 1,235,597 866,812
Repurchased .............. (3,023,713) (6,147,255) (2,810,486) (3,306,476)
------------ ------------ ------------ ------------
Net increase (decrease) in
shares outstanding ..... 2,392,525 (1,766,372) 1,190,426 672,477
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
STATEMENTS OF CHANGES IN NET ASSETS -
THE GALAXY FUND CAPITAL STOCK ACTIVITY (CONTINUED)
---------------
<CAPTION>
Equity Growth Fund Small Cap Value Fund
--------------------------------- ---------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1997 October 31, April 30, 1997 October 31,
(unaudited) 1996 (unaudited) 1996
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold ..................... $ 19,914,262 $ 47,189,209 $ 6,009,476 $ 5,161,336
Issued in connection with
acquisition (Note 8) ... -- 10,225,316 -- --
Issued to shareholders in
reinvestment of dividends 10,314,094 2,454,356 4,978,000 1,944,464
Repurchased .............. (12,827,153) (20,716,176) (3,001,040) (5,148,767)
------------- ------------- ------------- ------------
Net increase in
shares outstanding ..... $ 17,401,203 $ 39,152,705 $ 7,986,436 $ 1,957,033
============= ============= ============= ============
Retail B Shares:
Sold ..................... $ 6,973,574 $ 3,960,553 $ N/A $ N/A
Issued to shareholders in
reinvestment of dividends 296,379 -- N/A N/A
Repurchased .............. (329,593) (173,837) N/A N/A
------------- ------------- ------------- ------------
Net increase in
shares outstanding ..... $ 6,940,360 $ 3,786,716 $ N/A $ N/A
============= ============= ============= ============
Trust Shares:
Sold ..................... $ 116,627,299 $ 131,387,247 $ 24,023,074 $ 28,375,657
Issued in connection with
acquisition (Note 8) ... -- 19,288,050 -- --
Issued to shareholders in
reinvestment of dividends 25,329,306 7,869,807 20,272,927 8,667,254
Repurchased .............. (78,244,798) (101,099,590) (38,488,962) (40,560,495)
------------- ------------- ------------- ------------
Net increase (decrease) in
shares outstanding ..... $ 63,711,807 $ 57,445,514 $ 5,807,039 $ (3,517,584)
============= ============= ============= ============
SHARE ACTIVITY
Retail A Shares:
Sold ..................... 960,560 2,555,583 430,575 380,571
Issued in connection with
acquisition (Note 8) ... -- 578,307 -- --
Issued to shareholders in
reinvestment of dividends 510,141 136,463 367,923 157,870
Repurchased .............. (620,330) (1,097,610) (213,867) (379,218)
------------- ------------- ------------- ------------
Net increase in
shares outstanding ..... 850,371 2,172,743 584,631 159,223
============= ============= ============= ============
Retail B Shares:
Sold ..................... 339,200 206,085 N/A N/A
Issued to shareholders in
reinvestment of dividends 14,752 -- N/A N/A
Repurchased .............. (16,134) (8,900) N/A N/A
------------- ------------- ------------- ------------
Net increase in
shares outstanding ..... 337,818 197,185 N/A N/A
============= ============= ============= ============
Trust Shares:
Sold ..................... 5,624,452 7,179,412 1,665,701 2,090,020
Issued in connection with
acquisition (Note 8) ... -- 1,090,562 -- --
Issued to shareholders in
reinvestment of dividends 1,251,499 436,189 1,496,157 705,170
Repurchased .............. (3,782,401) (5,400,445) (2,758,370) (3,036,094)
------------- ------------- ------------- ------------
Net increase (decrease) in
shares outstanding ..... 3,093,550 3,305,718 403,488 (240,904)
============= ============= ============= ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
STATEMENTS OF CHANGES IN NET ASSETS -
THE GALAXY FUND CAPITAL STOCK ACTIVITY (CONTINUED)
---------------
<CAPTION>
Small Company Equity Fund International Equity Fund
-------------------------------- --------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1997 October 31, April 30, 1997 October 31,
(unaudited) 1996 (unaudited) 1996
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold ..................... $ 158,008,610 $ 397,053,745 $ 6,151,915 $ 13,188,755
Issued to shareholders in
reinvestment of dividends 12,694,889 502,766 2,141,487 774,929
Repurchased .............. (159,151,439) (346,365,223) (4,787,830) (11,262,073)
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... $ 11,552,060 $ 51,191,288 $ 3,505,572 $ 2,701,611
============= ============= ============= =============
Retail B Shares:
Sold ..................... $ 5,207,416 $ 3,690,344 $ N/A $ N/A
Issued to shareholders in
reinvestment of dividends 507,890 -- N/A N/A
Repurchased .............. (312,661) (92,260) N/A N/A
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... $ 5,402,645 $ 3,598,084 $ N/A $ N/A
============= ============= ============= =============
Trust Shares:
Sold ..................... $ 172,532,203 $ 140,211,402 $ 81,219,864 $ 114,166,862
Issued to shareholders in
reinvestment of dividends 14,295,814 652,265 6,098,028 1,580,379
Repurchased .............. (95,933,933) (85,139,941) (45,493,898) (41,352,726)
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... $ 90,894,084 $ 55,723,726 $ 41,823,994 $ 74,394,515
============= ============= ============= =============
SHARE ACTIVITY
Retail A Shares:
Sold ..................... 8,892,060 21,317,981 442,104 957,795
Issued to shareholders in
reinvestment of dividends 724,595 30,882 159,099 58,885
Repurchased .............. (8,902,949) (18,586,441) (343,137) (825,685)
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... 713,706 2,762,422 258,066 190,995
============= ============= ============= =============
Retail B Shares:
Sold ..................... 300,953 187,682 N/A N/A
Issued to shareholders in
reinvestment of dividends 29,089 -- N/A N/A
Repurchased .............. (18,466) (3,934) N/A N/A
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... 311,576 183,748 N/A N/A
============= ============= ============= =============
Trust Shares:
Sold ..................... 9,543,883 7,215,898 5,816,066 8,260,799
Issued to shareholders in
reinvestment of dividends 804,039 39,743 450,371 120,090
Repurchased .............. (5,389,378) (4,383,755) (3,246,727) (2,973,379)
------------- ------------- ------------- -------------
Net increase in
shares outstanding ..... 4,958,544 2,871,886 3,019,710 5,407,510
============= ============= ============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
---------------
ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
--------------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 14.52 $ 12.82 $ 10.67 $ 11.15 $ 10.16 $ 10.00
--------- --------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (C) ......... 0.18 0.30 0.30 0.27 0.25 0.15
Net realized and unrealized gain (loss)
on investments .................. 0.91 1.83 2.16 (0.49) 0.99 0.13
--------- --------- -------- -------- -------- --------
Total from Investment Operations: 1.09 2.13 2.46 (0.22) 1.24 0.28
--------- --------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income (0.17) (0.30) (0.31) (0.26) (0.25) (0.12)
Dividends from net realized capital gains (0.51) (0.13) -- -- -- --
--------- --------- -------- -------- -------- --------
Total Dividends: ................ (0.68) (0.43) (0.31) (0.26) (0.25) (0.12)
--------- --------- -------- -------- -------- --------
Net increase (decrease) in net asset value 0.41 1.70 2.15 (0.48) 0.99 0.16
--------- --------- -------- -------- -------- --------
Net Asset Value, End of Period ..... $ 14.93 $ 14.52 $ 12.82 $ 10.67 $ 11.15 $ 10.16
========= ========= ======== ======== ======== ========
Total Return (B) ..................... 7.68%** 16.92% 23.42% (2.02)% 12.37% 2.85%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's) .... $ 138,379 $ 116,852 $ 76,368 $ 73,574 $ 92,348 $ 11,555
Ratios to average net assets:
Net investment income including
reimbursement/waiver ............ 2.62%* 2.29% 2.52% 2.66% 2.59% 2.80%*
Operating expenses including
reimbursement/waiver ............ 1.40%* 1.42% 1.48% 1.21% 1.14% 1.11%*
Operating expenses excluding
reimbursement/waiver ............ 1.40%* 1.42% 1.50% 1.22% 1.25% 2.39%*
Portfolio Turnover Rate .............. 19%** 48% 41% 23% 7% 2%**
Average Commission Rate Paid (A) ..... $ 0.0610 $ 0.0635 N/A N/A N/A N/A
- ----------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares.
(3) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.18 $ 0.30 $ 0.30 $ 0.27 $ 0.24 $ 0.08
Trust Shares ....... 0.20 0.33 0.32 0.28 0.24 0.08
Retail B Shares .... 0.13 0.12 N/A N/A N/A N/A
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES RETAIL B SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 ------------------------------------------------------------- APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2) (UNAUDITED) 1996(3)
--------- --------- -------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 14.53 $ 12.83 $ 10.68 $ 11.15 $ 10.16 $ 10.00 $ 14.51 $ 13.59
--------- --------- -------- -------- -------- -------- -------- -------
0.20 0.33 0.32 0.28 0.25 0.15 0.14 0.13
0.90 1.83 2.16 (0.49) 0.99 0.13 0.90 0.91
--------- --------- -------- -------- -------- -------- -------- -------
1.10 2.16 2.48 (0.21) 1.24 0.28 1.04 1.04
--------- --------- -------- -------- -------- -------- -------- -------
(0.19) (0.33) (0.33) (0.26) (0.25) (0.12) (0.13) (0.12)
(0.51) (0.13) -- -- -- -- (0.51) --
--------- --------- -------- -------- -------- -------- -------- -------
(0.70) (0.46) (0.33) (0.26) (0.25) (0.12) (0.64) (0.12)
--------- --------- -------- -------- -------- -------- -------- -------
0.40 1.70 2.15 (0.47) 0.99 0.16 0.40 0.92
--------- --------- -------- -------- -------- -------- -------- -------
$ 14.93 $ 14.53 $ 12.83 $ 10.68 $ 11.15 $ 10.16 $ 14.91 $ 14.51
========= ========= ======== ======== ======== ======== ======== =======
7.71%** 17.19% 23.68% (1.93)% 12.37% 2.85%** 7.32%** 7.71%**
$ 149,738 $ 123,603 $ 76,771 $ 65,464 $ 92,348 $ 11,555 $ 14,545 $ 3,557
2.80%* 2.52% 2.74% 2.70% 2.59% 2.80%* 2.01%* 1.73%*
1.22%* 1.19% 1.26% 1.18% 1.14% 1.11%* 2.04%* 1.95%*
1.22%* 1.21% 1.30% 1.18% 1.25% 2.39%* 2.20%* 2.15%*
19%** 48% 41% 23% 7% 2%** 19%** 48%
$ 0.0610 $ 0.0635 N/A N/A N/A N/A $ 0.0610 $0.0635
- ----------------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares.
(3) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.18 $ 0.30 $ 0.30 $ 0.27 $ 0.24 $ 0.08
Trust Shares ....... 0.20 0.33 0.32 0.28 0.24 0.08
Retail B Shares .... 0.13 0.12 N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
---------------
EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ---------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
---------------- --------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 16.91 $ 14.98 $ 12.74 $ 12.85 $ 11.85 $ 11.29
--------- --------- -------- -------- --------- --------
Income from Investment Operations:
Net investment income (C) ......... 0.14 0.30 0.28 0.30 0.30 0.30
Net realized and unrealized gain
on investments .................. 1.57 2.47 2.47 0.07 1.09 0.76
--------- --------- -------- -------- --------- --------
Total from Investment Operations: 1.71 2.77 2.75 0.37 1.39 1.06
--------- --------- -------- -------- --------- --------
Less Dividends:
Dividends from net investment income (0.15) (0.30) (0.30) (0.29) (0.28) (0.30)
Dividends from net realized capital
gains ........................... (1.44) (0.54) (0.21) (0.19) (0.11) (0.20)
--------- --------- -------- -------- --------- --------
Total Dividends: .............. (1.59) (0.84) (0.51) (0.48) (0.39) (0.50)
--------- --------- -------- -------- --------- --------
Net increase (decrease) in net asset
value ............................. 0.12 1.93 2.24 (0.11) 1.00 0.56
--------- --------- -------- -------- --------- --------
Net Asset Value, End of Period ....... $ 17.03 $ 16.91 $ 14.98 $ 12.74 $ 12.85 $ 11.85
========= ========= ======== ======== ========= ========
Total Return (B) ..................... 10.69%** 19.01% 22.23% 2.94% 11.85% 9.71%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) .... $ 145,986 $ 126,952 $ 81,802 $ 63,532 $ 123,970 $ 21,778
Ratios to average net assets:
Net investment income
including reimbursement/waiver .. 1.78%* 1.86% 2.08% 2.45% 2.34% 2.84%
Operating expenses including
reimbursement/waiver ............ 1.44%* 1.40% 1.49% 1.11% 1.16% 1.03%
Operating expenses excluding
reimbursement/waiver ............ 1.44%* 1.40% 1.51% 1.12% 1.22% 1.54%
Portfolio Turnover Rate .............. 3%** 45% 21% 31% 27% 18%
Average Commission Rate Paid (A) ..... $ 0.0602 $ 0.0620 N/A N/A N/A N/A
- ------------------------------
* Annualized
** Not Annualized
(1) For the periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.14 $ 0.30 $ 0.28 $ 0.30 $ 0.29 $ 0.25
Trust Shares ....... 0.19 0.37 0.36 0.31 0.29 0.25
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 --------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C>
$ 16.93 $ 14.99 $ 12.75 $ 12.85 $ 11.85 $ 11.29
--------- --------- -------- -------- --------- --------
0.19 0.37 0.36 0.31 0.30 0.30
1.55 2.48 2.45 0.07 1.09 0.76
--------- --------- -------- -------- --------- --------
1.74 2.85 2.81 0.38 1.39 1.06
--------- --------- -------- -------- --------- --------
(0.19) (0.37) (0.36) (0.29) (0.28) (0.30)
(1.44) (0.54) (0.21) (0.19) (0.11) (0.20)
--------- --------- -------- -------- --------- --------
(1.63) (0.91) (0.57) (0.48) (0.39) (0.50)
--------- --------- -------- -------- --------- --------
0.11 1.94 2.24 (0.10) 1.00 0.56
--------- --------- -------- -------- --------- --------
$ 17.04 $ 16.93 $ 14.99 $ 12.75 $ 12.85 $ 11.85
========= ========= ======== ======== ========= ========
10.87%** 19.65% 22.81% 3.02% 11.85% 9.71%
$ 110,514 $ 106,094 $ 87,819 $ 78,880 $ 123,970 $ 21,778
2.24%* 2.32% 2.60% 2.49% 2.34% 2.84%
0.98%* 0.94% 0.98% 1.07% 1.16% 1.03%
0.98%* 0.94% 1.00% 1.07% 1.22% 1.54%
3%** 45% 21% 31% 27% 18%
$ 0.0602 $ 0.0620 N/A N/A N/A N/A
- ------------------------------
* Annualized
** Not Annualized
(1) For the periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.14 $ 0.30 $ 0.28 $ 0.30 $ 0.29 $ 0.25
Trust Shares ....... 0.19 0.37 0.36 0.31 0.29 0.25
</TABLE>
<PAGE>
<TABLE>
---------------
GROWTH AND INCOME FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------
(UNAUDITED) 1996(3) 1995 1994 1993(1)(2)
----------- ------- ---- ---- ----------
Net Asset Value, Beginning of Period .. $ 13.78 $ 12.35 $ 11.15 $ 10.69 $ 10.23
--------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (C & D) ...... 0.10 0.21 0.24 0.22 0.15
Net realized and unrealized
gain on investments .............. 1.57 2.16 1.70 0.72 0.48
--------- -------- -------- -------- --------
Total from Investment Operations: 1.67 2.37 1.94 0.94 0.63
--------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income (0.12) (0.21) (0.25) (0.20) (0.17)
Dividends from net realized capital
gains ............................ (1.19) (0.73) (0.49) (0.28) --
--------- -------- -------- -------- --------
Total Dividends: ................. (1.31) (0.94) (0.74) (0.48) (0.17)
--------- -------- -------- -------- --------
Net increase in net asset value ....... 0.36 1.43 1.20 0.46 0.46
--------- -------- -------- -------- --------
Net Asset Value, End of Period ........ $ 14.14 $ 13.78 $ 12.35 $ 11.15 $ 10.69
========= ======== ======== ======== ========
Total Return (B) ...................... 12.65%** 20.25% 18.52% 9.12% 6.20%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ..... $ 103,857 $ 77,776 $ 51,078 $ 22,244 $ 16,280
Ratios to average net assets:
Net investment income including
reimbursement/waiver ............ 1.33%* 1.65% 2.10% 2.06% 1.77%*
Operating expenses including
reimbursement/waiver ............ 1.25%* 1.34% 1.32% 1.29% 1.25%*
Operating expenses excluding
reimbursement/waiver ............ 1.46%* 1.45% 1.77% 1.74% 1.78%*
Portfolio Turnover Rate .............. 52%** 59% 51% 73% 38%**
Average Commission Rate Paid(A) ...... $ 0.0599 $ 0.0654 N/A N/A N/A
- --------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment portfolio (the "Predecessor Fund") of The
Shawmut Funds.
(2) The Predecessor Fund began offering Investment Shares on February 12, 1993.
(3) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust. Prior to the reorganization, the
Predecessor Fund offered and sold two series of shares, Investment Shares and Trust Shares, that were similar to the Fund's
Retail A and Trust Shares, respectively. In connection with the reorganization, the shareholders of the Predecessor Fund
exchanged Investment Shares and Trust Shares for Retail A Shares and Trust Shares, respectively, in the Galaxy Growth and
Income Fund. (Note 8).
(4) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties were as
follows:
<CAPTION>
YEARS ENDED OCTOBER 31,
-------------------------------------------------
SIX MONTHS ENDED (UNAUDITED)
APRIL 30, 1997 -------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Retail A Shares ... $ 0.08 $ 0.19 $ 0.22 $ 0.18 $ 0.18
Trust Shares ...... 0.10 0.27 0.25 0.22 0.15
Retail B Shares ... 0.03 0.05 N/A N/A N/A
(D) Net investment income per share does not reflect the tax reclassifications arising in the current period.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES RETAIL B SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 ------------------------------------------------------ APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996(3) 1995 1994 1993(1)(2) (UNAUDITED) 1996(4)
----------- ------- ---- ---- ---------- ----------- -------
$ 13.80 $ 12.35 $ 11.15 $ 10.69 $ 10.00 $ 13.77 $ 12.97
--------- --------- --------- --------- --------- -------- --------
0.10 0.27 0.28 0.25 0.18 0.07 0.07
1.57 2.16 1.69 0.72 0.69 1.54 0.81
--------- --------- --------- --------- --------- -------- --------
1.67 2.43 1.97 0.97 0.87 1.61 0.88
--------- --------- --------- --------- --------- -------- --------
(0.12) (0.25) (0.28) (0.23) (0.18) (0.07) (0.08)
(1.19) (0.73) (0.49) (0.28) -- (1.19) --
--------- --------- --------- --------- --------- -------- --------
(1.31) (0.98) (0.77) (0.51) (0.18) (1.26) (0.08)
--------- --------- --------- --------- --------- -------- --------
0.36 1.45 1.20 0.46 0.69 0.35 0.80
--------- --------- --------- --------- --------- -------- --------
$ 14.16 $ 13.80 $ 12.35 $ 11.15 $ 10.69 $ 14.12 $ 13.77
========= ========= ========= ========= ========= ======== ========
12.70%** 20.77% 18.80% 9.45% 8.80% 12.20%** 6.83%**
$ 225,560 $ 186,708 $ 189,011 $ 156,827 $ 147,090 $ 18,248 $ 4,562
1.57%* 2.01% 2.42% 2.31% 2.11% 0.47%* 0.79%*
1.03%* 1.02% 1.07% 1.04% 0.98% 2.01%* 1.96%*
1.03%* 1.03% 1.27% 1.24% 1.25% 2.32%* 2.11%*
52%** 59% 51% 73% 38%** 52%** 59%
$ 0.0599 $ 0.0654 N/A N/A N/A $ 0.0599 $ 0.0654
- --------------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment portfolio (the "Predecessor Fund") of The
Shawmut Funds.
(2) The Predecessor Fund began offering Investment Shares on February 12, 1993.
(3) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust. Prior to the reorganization, the
Predecessor Fund offered and sold two series of shares, Investment Shares and Trust Shares, that were similar to the Fund's
Retail A and Trust Shares, respectively. In connection with the reorganization, the shareholders of the Predecessor Fund
exchanged Investment Shares and Trust Shares for Retail A Shares and Trust Shares, respectively, in the Galaxy Growth and
Income Fund. (Note 8).
(4) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties were as
follows:
<CAPTION>
YEARS ENDED OCTOBER 31,
-------------------------------------------------
SIX MONTHS ENDED (UNAUDITED)
APRIL 30, 1997 -------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Retail A Shares ... $ 0.08 $ 0.19 $ 0.22 $ 0.18 $ 0.18
Trust Shares ...... 0.10 0.27 0.25 0.22 0.15
Retail B Shares ... 0.03 0.05 N/A N/A N/A
(D) Net investment income per share does not reflect the tax reclassifications arising in the current period.
</TABLE>
<PAGE>
<TABLE>
---------------
EQUITY VALUE FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.96 $ 14.33 $ 13.31 $ 13.12 $ 11.41 $ 11.52
--------- --------- -------- -------- --------- ---------
Income from Investment Operations:
Net investment income (C) ......... 0.05 0.14 0.22 0.18 0.19 0.26
Net realized and unrealized gain
on investments .................. 1.43 2.74 2.24 0.45 2.14 0.33
--------- --------- -------- -------- --------- ---------
Total from Investment Operations: 1.48 2.88 2.46 0.63 2.33 0.59
--------- --------- -------- -------- --------- ---------
Less Dividends:
Dividends from net investment income (0.06) (0.14) (0.23) (0.16) (0.20) (0.27)
Dividends from net realized capital
gains ........................... (1.90) (1.11) (1.21) (0.28) (0.42) (0.43)
--------- --------- -------- -------- --------- ---------
Total Dividends: .............. (1.96) (1.25) (1.44) (0.44) (0.62) (0.70)
--------- --------- -------- -------- --------- ---------
Net increase (decrease) in net asset
value ............................. (0.48) 1.63 1.02 0.19 1.71 (0.11)
--------- --------- -------- -------- --------- ---------
Net Asset Value, End of Period .... $ 15.48 $ 15.96 $ 14.33 $ 13.31 $ 13.12 $ 11.41
========= ========= ======== ======== ========= =========
Total Return (B) .................... 9.67%** 21.49% 20.81% 4.97% 21.18% 5.66%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ... $ 148,453 $ 131,998 $ 96,555 $ 74,001 $ 176,107 $ 133,578
Ratios to average net assets:
Net investment income (loss)
including reimbursement/waiver .. 0.69%* 1.00% 1.62% 1.45% 1.52% 2.24%
Operating expenses
including reimbursement/waiver .. 1.40%* 1.45% 1.49% 1.08% 0.97% 0.94%
Operating expenses
excluding reimbursement/waiver .. 1.40%* 1.45% 1.50% 1.11% 0.97% 0.94%
Portfolio Turnover Rate ............. 44%** 116% 76% 71% 50% 136%
Average Commission Rate Paid (A) ..... $ 0.0604 $ 0.0605 N/A N/A N/A N/A
- ----------------------
* Annualized
** Not Annualized
(1) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(2) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B SHARES.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .. $ 0.05 $ 0.14 $ 0.22 $ 0.18 $ 0.19 $ 0.26
Trust Shares ..... 0.08 0.21 0.28 0.19 0.19 0.26
Retail B Shares .. 0.10 0.01 N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES RETAIL B SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 1997 SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 ------------------------------------------------------------------ APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1) (UNAUDITED) 1996(2)
----------- ---- ---- ---- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 15.96 $ 14.33 $ 13.32 $ 13.12 $ 11.41 $ 11.52 $ 15.99 $ 14.74
--------- --------- --------- --------- --------- --------- ------- -------
0.08 0.21 0.28 0.19 0.19 0.26 0.01 0.04
1.43 2.74 2.24 0.45 2.14 0.33 1.43 1.25
--------- --------- --------- --------- --------- --------- ------- -------
1.51 2.95 2.52 0.64 2.33 0.59 1.44 1.29
--------- --------- --------- --------- --------- --------- ------- -------
(0.09) (0.21) (0.30) (0.16) (0.20) (0.27) (0.02) (0.04)
(1.90) (1.11) (1.21) (0.28) (0.42) (0.43) (1.90) --
--------- --------- --------- --------- --------- --------- ------- -------
(1.99) (1.32) (1.51) (0.44) (0.62) (0.70) (1.92) (0.04)
--------- --------- --------- --------- --------- --------- ------- -------
(0.48) 1.63 1.01 0.20 1.71 (0.11) (0.48) 1.25
--------- --------- --------- --------- --------- --------- ------- -------
$ 15.48 $ 15.96 $ 14.33 $ 13.32 $ 13.12 $ 11.41 $ 15.51 $ 15.99
========= ========= ========= ========= ========= ========= ======= =======
9.87%** 22.05% 21.31% 5.05% 21.18% 5.66% 9.36%** 8.80%**
$ 207,420 $ 194,827 $ 165,330 $ 154,403 $ 176,107 $ 133,578 $ 7,572 $ 1,916
1.04%* 1.42% 2.10% 1.46% 1.52% 2.24% (0.03)%* 0.43%*
1.05%* 1.03% 1.02% 1.06% 0.97% 0.94% 2.06%* 1.94%*
1.05%* 1.03% 1.02% 1.06% 0.97% 0.94% 2.41%* 2.24%*
44%** 116% 76% 71% 50% 136% 44%** 116%
$ 0.0604 $ 0.0605 N/A N/A N/A N/A $0.0604 $0.0605
- ----------------------
* Annualized
** Not Annualized
(1) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(2) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B SHARES.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .. $ 0.05 $ 0.14 $ 0.22 $ 0.18 $ 0.19 $ 0.26
Trust Shares ..... 0.08 0.21 0.28 0.19 0.19 0.26
Retail B Shares .. 0.10 0.01 N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
---------------
EQUITY GROWTH FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 20.37 $ 17.29 $ 14.18 $ 13.76 $ 12.90 $ 11.99
--------- --------- -------- -------- --------- ---------
Income from Investment Operations:
Net investment income (C) ......... 0.03 0.10 0.14 0.17 0.15 0.17
Net realized and unrealized gain
on investments .................. 1.99 3.39 3.28 0.47 0.95 0.91
--------- --------- -------- -------- --------- ---------
Total from Investment Operations: 2.02 3.49 3.42 0.64 1.10 1.08
--------- --------- -------- -------- --------- ---------
Less Dividends:
Dividends from net investment income (0.03) (0.11) (0.14) (0.16) (0.15) (0.17)
Dividends from net realized capital
gains ........................... (1.28) (0.30) (0.17) (0.06) (0.09) --
--------- --------- -------- -------- --------- ---------
Total Dividends: ................ (1.31) (0.41) (0.31) (0.22) (0.24) (0.17)
--------- --------- -------- -------- --------- ---------
Net increase in net asset value ...... 0.71 3.08 3.11 0.42 0.86 0.91
--------- --------- -------- -------- --------- ---------
Net Asset Value, End of Period ....... $ 21.08 $ 20.37 $ 17.29 $ 14.18 $ 13.76 $ 12.90
========= ========= ======== ======== ========= =========
Total Return (B) .................... 10.18%** 20.51% 24.54% 4.72% 8.58% 9.10%
Ratios/Supplemental Data:
Net Assets, End of Period (000's) .... $ 184,309 $ 160,800 $ 98,911 $ 70,338 $ 427,298 $ 224,630
Ratios to average net assets:
Net investment income (loss)
including reimbursement/waiver .. 0.25%* 0.50% 0.85% 1.22% 1.20% 1.37%
Operating expenses
including reimbursement/waiver .. 1.39%* 1.40% 1.45% 0.98% 0.97% 0.95%
Operating expenses
excluding reimbursement/waiver .. 1.39%* 1.40% 1.47% 0.99% 0.97% 0.95%
Portfolio Turnover Rate .............. 31%** 36% 14% 18% 16% 22%
Average Commission Rate Paid (A) ..... $ 0.0598 $ 0.0615 N/A N/A N/A N/A
- ---------------------------
* Annualized
** Not Annualized
(1) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(2) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.03 $ 0.10 $ 0.13 $ 0.17 $ 0.15 $ 0.17
Trust Shares ....... 0.07 0.17 0.20 0.18 0.15 0.17
Retail B Shares .... (0.04) (0.03) N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES RETAIL B SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 1997 SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 --------------------------------------------------------------------- APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1) (UNAUDITED) 1996(2)
--------- --------- --------- --------- --------- --------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 20.39 $ 17.30 $ 14.19 $ 13.76 $ 12.90 $ 11.99 $ 20.26 $ 18.77
--------- --------- --------- --------- --------- --------- -------- -------
0.07 0.17 0.20 0.18 0.15 0.17 (0.02) (0.01)
1.99 3.40 3.28 0.47 0.95 0.91 1.96 1.50
--------- --------- --------- --------- --------- --------- -------- -------
2.06 3.57 3.48 0.65 1.10 1.08 1.94 1.49
--------- --------- --------- --------- --------- --------- -------- -------
(0.07) (0.18) (0.20) (0.16) (0.15) (0.17) -- --
(1.28) (0.30) (0.17) (0.06) (0.09) -- (1.28) --
--------- --------- --------- --------- --------- --------- -------- -------
(1.35) (0.48) (0.37) (0.22) (0.24) (0.17) (1.28) --
--------- --------- --------- --------- --------- --------- -------- -------
0.71 3.09 3.11 0.43 0.86 0.91 0.66 1.49
--------- --------- --------- --------- --------- --------- -------- -------
$ 21.10 $ 20.39 $ 17.30 $ 14.19 $ 13.76 $ 12.90 $ 20.92 $ 20.26
========= ========= ========= ========= ========= ========= ======== =======
10.41%** 21.03% 25.08% 4.80% 8.58% 9.10% 9.83%** 7.95%**
$ 647,250 $ 562,419 $ 420,016 $ 362,094 $ 427,298 $ 224,630 $ 11,192 $ 3,995
0.68%* 0.92% 1.31% 1.27% 1.20% 1.37% (0.37)%* (0.16)%*
0.96%* 0.98% 1.00% 0.93% 0.97% 0.95% 2.01%* 1.92%*
0.96%* 0.98% 1.00% 0.93% 0.97% 0.95% 2.37%* 2.29%*
31%** 36% 14% 18% 16% 22% 31%** 36%
$ 0.0598 $ 0.0615 N/A N/A N/A N/A $ 0.0598 $0.0615
- ---------------------------
* Annualized
** Not Annualized
(1) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(2) The Fund began issuing Retail B Shares on March 4, 1996.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ 0.03 $ 0.10 $ 0.13 $ 0.17 $ 0.15 $ 0.17
Trust Shares ....... 0.07 0.17 0.20 0.18 0.15 0.17
Retail B Shares .... (0.04) (0.03) N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
---------------
SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------
(UNAUDITED) 1996(3) 1995 1994 1993(1)(2)
----------- ------- ---- ---- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ....... $ 14.75 $ 12.68 $ 11.06 $ 11.21 $ 10.52
-------- -------- -------- --------- ---------
Income from Investment Operations:
Net investment income (loss) (C, D & E) . (0.03) 0.01 (0.02) (0.01) (0.01)
Net realized and unrealized
gain on investments ................... 0.79 2.95 2.21 0.18 0.70
-------- -------- -------- --------- ---------
Total from Investment Operations: ..... 0.76 2.96 2.19 0.17 0.69
-------- -------- -------- --------- ---------
Less Dividends:
Dividends from net investment income (C) -- (0.02) -- -- --
Dividends in excess of net investment income -- -- -- -- --
Dividends from net realized capital gains (2.14) (0.87) (0.57) (0.32) --
-------- -------- -------- --------- ---------
Total Dividends (C): .................. (2.14) (0.89) (0.57) (0.32) --
-------- -------- -------- --------- ---------
Net increase (decrease) in net asset value . (1.38) 2.07 1.62 (0.15) 0.69
-------- -------- -------- --------- ---------
Net Asset Value, End of Period ............. $ 13.37 $ 14.75 $ 12.68 $ 11.06 $ 11.21
======== ======== ======== ========= =========
Total Return (B) ........................... 4.96%** 24.77% 21.27% 1.64% 6.56%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's) .......... $ 39,000 $ 34,402 $ 27,546 $ 19,764 $ 15,014
Ratios to average net assets:
Net investment income (loss)
including reimbursement/waiver ........ (0.46)%* 0.08% (0.19)% (0.10)% (0.19)%*
Operating expenses
including reimbursement/waiver ........ 1.29%* 1.40% 1.35% 1.31% 1.33%*
Operating expenses
excluding reimbursement/waiver ........ 1.56%* 1.55% 1.85% 1.84% 1.87%*
Portfolio Turnover Rate .................... 18%** 39% 32% 29% 29%**
Average Commission Rate Paid (A) ........... $ 0.0582 $ 0.0559 N/A N/A N/A
- -------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment portfolio (the "Predecessor Fund") of The
Shawmut Funds.
(2) The Predecessor Fund began offering Investment Shares on February 12, 1993.
(3) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust. Prior to the reorganization, the
Predecessor Fund offered and sold two series of shares, Investment Shares and Trust Shares, that were similar to the Fund's
Retail A and Trust Shares, respectively. In connection with the reorganization, the shareholders of the Predecessor Fund
exchanged Investment Shares and Trust Shares for Retail A Shares and Trust Shares, respectively, in the Galaxy Small Cap
Value Fund. (Note 8).
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Represents less than $0.01 per Trust Share for year 1993.
(D) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties were as
follows:
<CAPTION>
YEARS ENDED OCTOBER 31,
----------------------------------------------------
SIX MONTHS ENDED (UNAUDITED)
APRIL 30, 1997 ------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Retail A Shares .... $ (0.05) $ 0.01 $ (0.08) $ (0.06) $ (0.05)
Trust Shares ....... (0.01) 0.05 (0.03) (0.01) 0.00
(E) Net investment income per share does not reflect the tax reclassifications arising in the current period.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------
(UNAUDITED) 1996(3) 1995 1994 1993(1)(2)
----------- ------- ---- ---- ----------
<S> <C> <C> <C> <C>
$ 14.76 $ 12.71 $ 11.07 $ 11.21 $ 10.00
--------- --------- --------- --------- ---------
(0.01) 0.05 0.01 0.02 --
0.79 2.97 2.21 0.17 1.21
--------- --------- --------- --------- ---------
0.78 3.02 2.22 0.19 1.21
--------- --------- --------- --------- ---------
-- (0.05) (0.01) (0.01) --
-- (0.01) -- -- --
(2.14) (0.91) (0.57) (0.32) --
--------- --------- --------- --------- ---------
(2.14) (0.97) (0.58) (0.33) --
--------- --------- --------- --------- ---------
(1.36) 2.05 1.64 (0.14) 1.21
--------- --------- --------- --------- ---------
$ 13.40 $ 14.76 $ 12.71 $ 11.07 $ 11.21
========= ========= ========= ========= =========
5.10%** 25.22% 21.52% 1.86% 12.12%**
$ 130,082 $ 137,341 $ 121,364 $ 101,905 $ 100,382
(0.15)%* 0.45% 0.07% 0.15% 0.02%*
1.02%* 1.05% 1.10% 1.06% 1.01%*
1.04%* 1.06% 1.35% 1.34% 1.29%*
18%** 39% 32% 29% 29%**
$ 0.0582 $ 0.0559 N/A N/A N/A
- -------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment portfolio (the "Predecessor Fund") of The
Shawmut Funds.
(2) The Predecessor Fund began offering Investment Shares on February 12, 1993.
(3) On December 4, 1995, the Predecessor Fund was reorganized as a new portfolio of the Trust. Prior to the reorganization, the
Predecessor Fund offered and sold two series of shares, Investment Shares and Trust Shares, that were similar to the Fund's
Retail A and Trust Shares, respectively. In connection with the reorganization, the shareholders of the Predecessor Fund
exchanged Investment Shares and Trust Shares for Retail A Shares and Trust Shares, respectively, in the Galaxy Small Cap
Value Fund. (Note 8).
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Represents less than $0.01 per Trust Share for year 1993.
(D) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or other parties were as
follows:
<CAPTION>
YEARS ENDED OCTOBER 31,
----------------------------------------------------
SIX MONTHS ENDED (UNAUDITED)
APRIL 30, 1997 ------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2)
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Retail A Shares .... $ (0.05) $ 0.01 $ (0.08) $ (0.06) $ (0.05)
Trust Shares ....... (0.01) 0.05 (0.03) (0.01) 0.00
(E) Net investment income per share does not reflect the tax reclassifications arising in the current period.
</TABLE>
<PAGE>
<TABLE>
---------------
SMALL COMPANY EQUITY FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 19.96 $ 16.28 $ 12.35 $ 12.41 $ 8.79 $ 10.00
--------- --------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (loss) (C) .. (0.08) (0.14) (0.09) (0.01) (0.04) (0.03)
Net realized and unrealized gain
(loss) on investments ........... (2.40) 3.99 4.21 -- 3.66 (1.18)
--------- --------- -------- -------- -------- --------
Total from Investment Operations: (2.48) 3.85 4.12 (0.01) 3.62 (1.21)
--------- --------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income -- -- -- -- -- --
Dividends from net realized capital
gains ........................... (2.38) (0.17) (0.19) (0.05) -- --
--------- --------- -------- -------- -------- --------
Total Dividends: .............. (2.38) (0.17) (0.19) (0.05) -- --
--------- --------- -------- -------- -------- --------
Net increase (decrease) in net asset
value ............................. (4.86) 3.68 3.93 (0.06) 3.62 (1.21)
--------- --------- -------- -------- -------- --------
Net Asset Value, End of Period ....... $ 15.10 $ 19.96 $ 16.28 $ 12.35 $ 12.41 $ 8.79
========= ========= ======== ========= ======== ========
Total Return (B) ..................... (14.08)%** 23.97% 34.01% (0.06)% 41.18% (12.10)%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's) .... $ 94,876 $ 111,101 $ 45,668 $ 30,845 $ 55,683 $ 29,072
Ratios to average net assets:
Net investment income (loss)
including reimbursement/waiver .. (0.97)%* (1.03)% (0.85)% (0.40)% (0.66)% (0.63)%*
Operating expenses
including reimbursement/waiver .. 1.46%* 1.57% 1.60% 1.31% 1.18% 1.06%*
Operating expenses
excluding reimbursement/waiver .. 1.53%* 1.57% 1.64% 1.34% 1.22% 1.33%*
Portfolio Turnover Rate .............. 32%** 82% 54% 35% 57% 87%**
Average Commission Rate Paid (A) ..... $ 0.0568 $ 0.0531 N/A N/A N/A N/A
- -----------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and the selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(3) The Fund began issuing Retail B Shares on March 4, 1996.
(4) The selected per share data was calculated using the weighted average shares outstanding method for the period. (A) For
fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ (0.09) $ (0.14) $ (0.09) $ (0.01) $ (0.04) $ (0.05)
Trust Shares ....... (0.05) (0.09) (0.04) -- (0.04) (0.05)
Retail B Shares .... (0.11) (0.24) N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES RETAIL B SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31, SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1997 ------------------------------------------------------------------- APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2) (UNAUDITED) 1996(3)
----------- ---- ---- ---- ------- ---------- ----------- -------
$ 20.20 $ 16.38 $ 12.36 $ 12.41 $ 8.79 $ 10.00 $ 19.91 $ 17.27
--------- --------- -------- -------- -------- -------- ------- -------
(0.04) (0.09) (0.04) -- (0.04) (0.03) (0.10) (0.19)(4)
(2.43) 4.08 4.25 -- 3.66 (1.18) (2.42) 2.83
--------- --------- -------- -------- -------- -------- ------- -------
(2.47) 3.99 4.21 -- 3.62 (1.21) (2.52) 2.64
--------- --------- -------- -------- -------- -------- ------- -------
-- -- -- -- -- -- -- --
(2.38) (0.17) (0.19) (0.05) -- -- (2.38) --
--------- --------- -------- -------- -------- -------- ------- -------
(2.38) (0.17) (0.19) (0.05) -- -- (2.38) --
--------- --------- -------- -------- -------- -------- ------- -------
(4.85) 3.82 4.02 (0.05) 3.62 (1.21) (4.90) 2.64
--------- --------- -------- -------- -------- -------- ------- -------
$ 15.35 $ 20.20 $ 16.38 $ 12.36 $ 12.41 $ 8.79 $ 15.01 $ 19.91
========= ========= ======== ======== ======== ======== ======= =======
(13.84)%** 24.69% 34.73% 0.02% 41.18% (12.10)%** (14.39)%** 15.34%**
$ 209,128 $ 174,990 $ 94,831 $ 66,462 $ 55,683 $ 29,072 $ 7,433 $ 659
(0.56)%* (0.60)% (0.37)% (0.35)% (0.66)% (0.63)%* (1.86)%* (1.50)%*
1.05%* 1.14% 1.12% 1.27% 1.18% 1.06%* 2.35%* 2.04%*
1.18%* 1.14% 1.12% 1.27% 1.22% 1.33%* 2.66%* 2.44%*
32%** 82% 54% 35% 57% 87%** 32%** 82%
$ 0.0568 $ 0.0531 N/A N/A N/A N/A $0.0568 $0.0531
- -----------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and the selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(3) The Fund began issuing Retail B Shares on March 4, 1996.
(4) The selected per share data was calculated using the weighted average shares outstanding method for the period. (A) For
fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares and Retail B Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ (0.09) $ (0.14) $ (0.09) $ (0.01) $ (0.04) $ (0.05)
Trust Shares ....... (0.05) (0.09) (0.04) -- (0.04) (0.05)
Retail B Shares .... (0.11) (0.24) N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
---------------
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
THE GALAXY FUND FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
---------------
<CAPTION>
RETAIL A SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .... $ 13.94 $ 12.92 $ 13.20 $ 12.13 $ 9.66 $ 10.00
-------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income (C) ........... --(3) 0.11 0.11 0.06 0.02 0.06
Net realized and unrealized gain (loss)
on investments .................... 1.12 1.27 (0.21) 1.02 2.51 (0.40)
-------- -------- -------- -------- -------- --------
Total from Investment Operations: 1.12 1.38 (0.10) 1.08 2.53 (0.34)
-------- -------- -------- -------- -------- --------
Less Dividends:
Dividends from net investment income (0.18) (0.12) (0.02) (0.01) (0.06) --
Dividends from net realized capital
gains ............................. (0.68) (0.24) (0.16) -- -- --
-------- -------- -------- -------- -------- --------
Total Dividends: ................ (0.86) (0.36) (0.18) (0.01) (0.06) --
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset
value ............................... 0.26 1.02 (0.28) 1.07 2.47 (0.34)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ......... $ 14.20 $ 13.94 $ 12.92 $ 13.20 $ 12.13 $ 9.66
======== ======== ======== ======== ======== ========
Total Return (B) ....................... 8.40%** 10.86% (0.64)% 8.91% 26.36% (3.40)%**
Ratios/Supplemental Data:
Net Assets, End of Period (000's) ...... $ 39,482 $ 35,144 $ 30,104 $ 32,887 $ 39,246 $ 12,584
Ratios to average net assets:
Net investment income
including reimbursement/waiver .... (0.09)%* 0.78% 0.84% 0.69% 0.37% 1.19%*
Operating expenses
including reimbursement/waiver .... 1.61%* 1.70% 1.76% 1.49% 1.57% 1.61%*
Operating expenses
excluding reimbursement/waiver .... 1.92%* 1.98% 2.03% 1.79% 2.04% 2.79%*
Portfolio Turnover Rate ................ 15%** 146% 48% 39% 29% 21%**
Average Commission Rate Paid (A) ....... $ 0.0166 $ 0.0381 N/A N/A N/A N/A
- ---------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(3) Represents less than $0.01 per share.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ -- $ 0.07 $ 0.08 $ 0.03 -- --
Trust Shares ....... 0.01 0.13 0.13 0.04 -- --
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
TRUST SHARES
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(2) 1992(1)(2)
----------- ---- ---- ---- ------- ----------
<S> <C> <C> <C> <C> <C>
$ 14.01 $ 12.98 $ 13.20 $ 12.13 $ 9.66 $ 10.00
--------- --------- -------- -------- -------- --------
0.03 0.17 0.16 0.06 0.02 0.06
1.15 1.30 (0.18) 1.02 2.51 (0.40)
--------- --------- -------- -------- -------- --------
1.18 1.47 (0.02) 1.08 2.53 (0.34)
--------- --------- -------- -------- -------- --------
(0.20) (0.20) (0.04) (0.01) (0.06) --
(0.68) (0.24) (0.16) -- --
--------- --------- -------- -------- -------- --------
(0.88) (0.44) (0.20) (0.01) (0.06) --
--------- --------- -------- -------- -------- --------
0.30 1.03 (0.22) 1.07 2.47 (0.34)
--------- --------- -------- -------- -------- --------
$ 14.31 $ 14.01 $ 12.98 $ 13.20 $ 12.13 $ 9.66
========= ========= ======== ======== ======== ========
8.84%** 11.51% (0.02)% 8.91% 26.36% (3.40)%**
$ 219,403 $ 172,561 $ 89,614 $ 82,350 $ 39,246 $ 12,584
0.46%* 1.40% 1.36% 0.74% 0.37% 1.19%*
1.06%* 1.08% 1.22% 1.43% 1.57% 1.61%*
1.39%* 1.36% 1.48% 1.72% 2.04% 2.79%*
15%** 146% 48% 39% 29% 21%**
$ 0.0166 $ 0.0381 N/A N/A N/A N/A
- ---------------------------------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 30, 1991.
(2) For periods prior to the year ended October 31, 1994, the per share amounts and selected ratios reflect the financial
results of both Retail A and Trust Shares (See Note 5).
(3) Represents less than $0.01 per share.
(A) For fiscal years beginning on or after September 1, 1995, the Fund is required to disclose its average commission rate per
share.
(B) Calculation does not include sales charge for Retail A Shares.
(C) Net investment income per share before reimbursement/waiver of fees by the Investment Adviser and/or Administrator was as
follows:
<CAPTION>
SIX MONTHS ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993(1) 1992(1)
----------- ---- ---- ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Retail A Shares .... $ -- $ 0.07 $ 0.08 $ 0.03 -- --
Trust Shares ....... 0.01 0.13 0.13 0.04 -- --
</TABLE>
<PAGE>
---------------
THE GALAXY FUND NOTES TO FINANCIAL STATEMENTS
(unaudited)
---------------
1. ORGANIZATION
The Galaxy Fund, a Massachusetts business trust (the "Trust"), is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company. As of the date of this report, the Trust
offered twenty-four managed investment portfolios. The accompanying financial
statements and financial highlights are those of the Asset Allocation, Equity
Income, Growth and Income, Equity Value, Equity Growth, Small Cap Value, Small
Company Equity and International Equity Funds (individually, a "Fund,"
collectively, the "Funds") only.
The Equity Value, Equity Growth, Small Company Equity, Asset Allocation and
Growth and Income Funds are authorized to issue three series of shares (Trust
Shares, Retail A Shares and Retail B Shares). The Equity Income, Small Cap Value
and International Equity Funds are authorized to issue two series of shares
(Trust Shares and Retail A Shares). Trust Shares, Retail A Shares and Retail B
Shares are substantially the same, except that (i) Retail A Shares are subject
to a maximum 3.75% front-end sales charge, (ii) Retail B Shares are subject to a
maximum 5.00% contingent deferred sales charge, and (iii) series specific
expenses (distribution and/or shareholder servicing fees and transfer agent
fees) are borne by the specific series of shares to which they relate. Six years
after purchase, Retail B Shares will convert automatically to Retail A Shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies in conformity with generally accepted accounting
principles consistently followed by the Funds in the preparation of the
financial statements.
PORTFOLIO VALUATION: Investments in securities which are traded on a
recognized stock exchange are valued at the last sale price on the securities
exchange on which such securities are primarily traded, or at the last sale
price on the national securities market. Securities traded on over-the-counter
markets are valued at the last bid price. Short-term obligations that mature in
60 days or less are valued at amortized cost, which constitutes fair value. All
other securities and other assets are appraised at their fair value as
determined in good faith under consistently applied procedures established by
and under the general supervision of the Board of Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are accounted for on a trade date basis. Net realized
gains or losses on sales of securities are determined by the identified cost
method. Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. Investment income and realized and unrealized
gains and losses are allocated to the separate series of a Fund based upon the
relative net assets of each series.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The International Equity Fund may
enter into forward foreign currency exchange contracts whereby the Fund agrees
to buy or sell a specific currency at a specified price at a future date in an
attempt to hedge against fluctuations in the value of the underlying currency of
certain portfolio instruments. Forward foreign currency exchange contracts are
valued at the daily exchange rate of the underlying currency. Purchases and
sales of forward foreign currency exchange contracts having the same settlement
date and broker are offset and presented on a net basis in the Statement of
Assets and Liabilities. Gains or losses on the purchase or sale of forward
foreign currency exchange contracts having the same settlement date and broker
are recognized on the date of offset, otherwise gains or losses are recognized
on the settlement date.
FOREIGN CURRENCY TRANSLATION: The books and records of the International
Equity Fund are maintained in U.S. dollars. Investment valuations and other
assets and liabilities initially expressed in foreign currencies are converted
each business day into U.S. dollars based upon current exchange rates. Purchases
and sales of foreign investments and income and expenses are converted into U.S.
dollars based upon exchange rates prevailing on the respective dates of such
transactions. That portion of unrealized gains or losses on investments due to
fluctuations in foreign currency exchange rates is not separately disclosed.
DIVIDENDS TO SHAREHOLDERS: Dividends from net investment income are determined
separately for each series of a Fund and are declared and paid quarterly, with
the exception of the International Equity Fund which declares and pays dividends
annually. Net realized capital gains, if any, are distributed at least annually.
Income dividends and capital gain dividends are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
FEDERAL INCOME TAXES: The Trust treats each Fund as a separate entity for
federal income tax purposes. Each Fund intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal Revenue Code
of 1986, as amended. By so qualifying, each Fund will not be subject to federal
income taxes to the extent that it distributes substantially all of its taxable
or tax-exempt income, if any, for its tax year ending October 31. In addition,
by distributing in each calendar year substantially all of its net investment
income, capital gains and certain other amounts, if any, each Fund will not be
subject to a Federal excise tax. Therefore, no Federal income or excise tax
provision is recorded. Withholding taxes on foreign dividends have been paid or
provided for in accordance with the applicable country's tax rules and rates.
EXPENSES: The Trust accounts separately for the assets, liabilities and
operations of each Fund. Expenses directly attributable to a Fund are charged to
the Fund, while the expenses which are attributable to more than one fund of the
Trust are allocated among the respective funds.
In addition, expenses of a Fund not directly attributable to the operations of
a particular series of shares of the Fund are allocated to the separate series
based upon the relative net assets of each series. Operating expenses directly
attributable to a series of shares of a Fund are charged to the operations of
that series.
ORGANIZATION COSTS: Each Fund bears all costs in connection with its
organization, including the fees and expenses of registering and qualifying its
initial shares for distribution under Federal and state securities laws. All
such costs have been fully amortized using the straight-line method over a
period of five years beginning with the commencement of each Fund's operations.
3. INVESTMENT ADVISORY, ADMINISTRATION, SHAREHOLDER SERVICES, DISTRIBUTION AND
OTHER FEES
The Trust and Fleet Investment Advisors Inc. (the "Investment Adviser"), an
indirect wholly-owned subsidiary of Fleet Financial Group, Inc., are parties to
an investment advisory agreement under which the Investment Adviser provides
services for a fee, computed daily and paid monthly, at the annual rate of 0.75%
of the average daily net assets of the Asset Allocation, Equity Income, Growth
and Income, Equity Value, Equity Growth, Small Cap Value and Small Company
Equity Funds (See Note 4).
The Trust pays the Investment Adviser a fee, computed daily and paid monthly,
with respect to the International Equity Fund at the annual rate of 1.15% of the
first $50 million of the Fund's average daily net assets, plus 0.95% of the next
$50 million of such net assets, plus 0.85% of net assets in excess of $100
million.
Effective August 12, 1996 (see Note 10), the Investment Adviser entered into a
sub-advisory agreement with Oechsle International Advisors, L.P. ("Oechsle")
with respect to the International Equity Fund pursuant to which the Investment
Adviser pays fees to Oechsle, computed daily and paid quarterly, at the annual
rate of 0.40% of the first $50 million of the Fund's average daily net assets,
plus 0.35% of all net assets in excess of $50 million.
Prior to August 12, 1996, the Investment Adviser had a sub-advisory agreement
with Wellington Management Company ("Wellington Management") with respect to the
International Equity Fund pursuant to which the Investment Adviser paid fees to
Wellington Management, computed daily and paid quarterly, at the annual rate of
0.50% of the first $50 million of the Fund's average daily net assets, plus
0.30% of the next $50 million of such assets, plus 0.20% of net assets in excess
of $100 million.
Prior to December 4, 1995, Shawmut Bank, N.A., ("Shawmut Bank") provided
investment advisory services to the Shawmut Growth and Income Equity and Shawmut
Small Capitalization Equity Funds, predecessor funds of the Galaxy Growth and
Income and Galaxy Small Cap Value Funds (collectively, the "Predecessor Funds,"
see Note 8). Shawmut Bank was paid a fee for its services at the annual rate of
1.00% of each Predecessor Fund's average daily net assets (See also Note 4).
The Trust and First Data Investor Services Group, Inc. ("FDISG"), a
wholly-owned subsidiary of First Data Corporation, are parties to an
administration agreement under which FDISG provides services for a fee, computed
daily and paid monthly, at the annual rate of 0.09% of the first $2.5 billion of
the combined average daily net assets of the Funds and the other funds offered
by the Trust (whose financial statements are provided in separate reports),
0.085% of the next $2.5 billion of combined average daily net assets and 0.075%
of combined average daily net assets over $5 billion.
Prior to September 5, 1996, FDISG was entitled to receive administration fees,
computed daily and paid monthly, at the annual rate of 0.09% of the first $2.5
billion of the combined average daily net assets of the Funds and the other
funds offered by the Trust, 0.085% of the next $2.5 billion of combined average
daily net assets and 0.08% of combined average daily net assets over $5 billion.
In addition, FDISG also provides certain fund accounting, custody
administration and transfer agency services pursuant to certain fee
arrangements. Pursuant to such fee arrangements, FDISG compensates the Trust's
custodian bank, The Chase Manhattan Bank, for its services.
Prior to December 4, 1995, Federated Administrative Services ("FAS") provided
certain administrative and other services to the Predecessor Funds. The fee paid
to FAS was based on the average aggregate net assets of The Shawmut Funds. In
addition, prior to December 4, 1995, Federated Services Company ("FSC") provided
transfer agency and dividend disbursing services to the Predecessor Funds in
return for fees at rates based on the size, type and number of accounts and
transactions made by shareholders. FSC also maintained accounting records for
the Predecessor Funds and was paid fees based on each Predecessor Fund's average
net assets plus out-of-pocket expenses.
Retail A Shares, Trust Shares and, effective March 1, 1996, Retail B Shares of
the Funds each bear series specific transfer agent charges based upon the number
of shareholder accounts for each series. In addition, Trust Shares also bear
additional transfer agency fees in order to compensate FDISG for payments made
to Fleet Bank, an affiliate of the Investment Adviser, for performing certain
sub-account and administrative functions on a per account basis with respect to
Trust Shares held by defined contribution plans. For the six months ended April
30, 1997, transfer agent charges for each series were as follows:
RETAIL A RETAIL B TRUST
-------- -------- -----
Asset Allocation $ 111,955 $ 12,557 $ 198,831
Equity Income 135,013 N/A 11,819
Growth and Income 119,085 22,072 114,631
Equity Value 149,786 10,030 124,956
Equity Growth 198,177 18,152 221,292
Small Cap Value 58,505 N/A 59,509
Small Company Equity 139,905 18,473 172,184
International Equity 81,666 N/A 91,887
First Data Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of FDISG and an indirect wholly-owned subsidiary of First Data Corporation,
serves as the exclusive distributor of the Trust's Shares.
Prior to December 4, 1995, Federated Securities Corp. (the "Shawmut
Distributor") served as the principal distributor of the Predecessor Funds. The
Predecessor Funds had adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act. Under the terms of the Plan, the Predecessor Funds
compensated the Shawmut Distributor, from the net assets of the Predecessor
Funds, to finance activities primarily intended to result in the sale of the
Predecessor Funds' Investment Shares. The Plan permitted the Predecessor Funds
to incur distribution expenses of up to 1/2 of 1% of the average daily net
assets of a Predecessor Fund's Investment Shares.
The Trust has implemented a shareholder services plan (the "Services Plan")
with respect to Retail A Shares of the Funds. Currently, the Services Plan has
not been implemented with respect to the Funds' Trust Shares. The Services Plan
provides compensation to institutions (including and currently limited to Fleet
Bank and its affiliates) which provide administrative and support services to
their customers who beneficially own Retail A Shares, at an aggregate annual
rate not to exceed 0.50% of the average daily net asset value of the outstanding
Retail A Shares of each Fund beneficially owned by such customers. The Trust,
under the direction of the Board of Trustees, is currently limiting fees payable
under the Services Plan with respect to each Fund to an aggregate annual rate
not to exceed 0.30% of the average daily net asset value of the outstanding
Retail A Shares beneficially owned by such customers.
The Trust has adopted a distribution and shareholder services plan (the "12b-1
Plan") with respect to Retail B Shares of the Asset Allocation, Growth and
Income, Equity Value, Equity Growth and Small Company Equity Funds. Under the
12b-1 Plan, the Trust may pay (i) the Distributor or another person for expenses
and activities primarily intended to result in the sale of Retail B Shares, (ii)
institutions for shareholder liaison services and (iii) institutions for
administrative support services. Currently, payments under the 12b-1 Plan for
distribution services are being made solely to broker-dealer affiliates of Fleet
Bank and payments under the 12b-1 Plan for shareholder liaison/shareholder
administrative support services are being made solely to Fleet Bank and its
affilitates. Payments for distribution expenses may not exceed an annual rate of
0.65% of the average daily net assets attributable to each Fund's outstanding
Retail B Shares. The fees paid for shareholder liaison services and/or
administrative support services may not exceed the annual rates of 0.25% and
0.25%, respectively, of the average daily net assets attributable to each Fund's
outstanding Retail B Shares owned of record or beneficially by the institution's
customers. The Trust, under the direction of the Board of Trustees, is currently
limiting each Fund's payments for shareholder liaison and administrative support
services under the 12b-1 Plan to an aggregate fee of not more than 0.30% of the
average daily net asset value of Retail B Shares of the Fund owned of record or
beneficially by the institution's customers.
For the six months ended April 30, 1997, the Funds paid distribution and/or
shareholder servicing fees under the Services Plan and 12b-1 Plan as follows:
SHAREHOLDER SERVICES DISTRIBUTION
RETAIL A RETAIL B RETAIL B
----------- -------- ------------
Asset Allocation $ 180,046 $ 11,725 $ 25,405
Equity Income 193,667 N/A N/A
Growth and Income 130,474 14,740 31,937
Equity Value 183,468 5,872 12,723
Equity Growth 243,438 10,134 21,957
Small Cap Value 56,637 N/A N/A
Small Company Equity 133,020 8,186 17,738
International Equity 33,916 N/A N/A
Certain officers of the Trust may be officers of the Administrator and/or
Distributor. Such officers receive no compensation from the Trust for serving in
their respective roles. No officer, director or employee of the Investment
Adviser serves as an officer, Trustee or employee of the Trust. Each Trustee is
entitled to receive for services as a trustee of the Trust, The Galaxy VIP Fund
("VIP") and Galaxy Fund II ("Galaxy II") an aggregate fee of $29,000 per annum
plus certain other fees for attending or participating in meetings as well as
reimbursement for expenses incurred in attending meetings. The Chairman of the
Boards of Trustees and the President and Treasurer of the Trust, VIP and Galaxy
II are also entitled to additional fees for their services in these capacities.
These fees are allocated among the funds of the Trust, VIP and Galaxy II, based
on their relative net assets. Prior to November 1, 1996, each Trustee was
entitled to receive for services as a trustee of the Trust and VIP an aggregate
fee of $18,000 per annum plus certain other fees for attending or participating
in meetings as well as reimbursement for expenses incurred in attending
meetings. The Chairman of the Boards of Trustees of the Trust and VIP and the
President and Treasurer of the Trust and VIP were entitled to additional annual
fees for their services in these capacities.
In addition, effective March 1, 1996, each Trustee became eligible to
participate in the Trust's Deferred Compensation Plan (the "Plan"), an unfunded,
non-qualified deferred compensation plan. The Plan allows each Trustee to defer
receipt of all or a percentage of fees which otherwise would be payable for
services performed. On January 1, 1997, the Plan was merged into a combined
Deferred Compensation Plan for the Trust, VIP and Galaxy II.
Expenses for the six months ended April 30, 1997 include legal fees paid to
Drinker Biddle & Reath LLP. A partner of that firm is Secretary to the Trust.
4. WAIVER OF FEES AND REIMBURSEMENT OF EXPENSES
The Investment Adviser voluntarily agreed to waive a portion of its fees and
to reimburse the Funds for certain expenses so that total expenses would not
exceed certain expense limitations established for each series. The Investment
Adviser at its discretion, may revise or discontinue the voluntary fee waivers
and expense reimbursements at any time. For the six months ended April 30, 1997,
the Investment Adviser waived fees and/or reimbursed expenses with respect to
the Funds in the following amounts:
FEES EXPENSES
FUND WAIVED REIMBURSED
---- ------ ----------
Asset Allocation $-- $ 12,086
Growth and Income -- 113,526
Equity Value -- 9,521
Equity Growth -- 12,100
Small Cap Value -- 60,556
Small Company Equity -- 178,003
International Equity 289,536 87,748
5. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest, each with a par value of $0.001. Shares
of the Trust are currently classified into twenty-four classes of shares, each
consisting of one or more series including: Class N-Series 1 Shares (Trust
Shares), Class N-Series 2 Shares (Retail A Shares) and Class N-Series 3 Shares
(Retail B Shares) -Asset Allocation Fund; Class I-Series 1 Shares (Trust Shares)
and Class I-Series 2 Shares (Retail A Shares) -Equity Income Fund; Class
U-Series 1 Shares (Trust Shares), Class U-Series 2 Shares (Retail A Shares) and
Class U-Series 3 Shares (Retail B Shares)-Growth and Income Fund; Class C Shares
(Trust Shares), Class C-Special Series 1 Shares (Retail A Shares) and Class
C-Special Series 2 Shares (Retail B Shares)-Equity Value Fund; Class H-Series 1
Shares (Trust Shares), Class H-Series 2 Shares (Retail A Shares) and Class
H-Series 3 Shares (Retail B Shares)-Equity Growth Fund; Class X-Series 1 Shares
(Trust Shares) and Class X-Series 2 Shares (Retail A Shares)-Small Cap Value
Fund; Class K-Series 1 Shares (Trust Shares), Class K-Series 2 Shares (Retail A
Shares) and Class K-Series 3 Shares (Retail B Shares) - Small Company Equity
Fund; and Class G-Series 1 Shares (Trust Shares) and Class G-Series 2 Shares
(Retail A Shares) - International Equity Fund.
Each share represents an equal proportionate interest in the respective Fund,
bears the same fees and expenses (except that Retail A Shares bear the expense
of payments under the Services Plan, Retail B Shares bear the expense of
payments under the 12b-1 Plan and Trust Shares, Retail A Shares and Retail B
Shares each bear series specific transfer agent charges) and are entitled to
such dividends and distributions of income earned as are declared at the
discretion of the Trust's Board of Trustees.
Shareholders are entitled to one vote for each full share held and will vote
in the aggregate and not by class or series, except as otherwise expressly
required by law or when the Board of Trustees determines that the matter to be
voted on affects only the interests of shareholders of a particular class or
series.
6. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the six months ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------------- ------------------------------
FUND U.S. Government Other U.S. Government Other
- ----- --------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Asset Allocation ........ $ 21,977,910 $ 58,624,008 $ 11,610,227 $ 33,487,439
Equity Income ........... -- 6,511,690 -- 6,904,323
Growth and Income ....... -- 183,553,121 -- 145,119,404
Equity Value ............ -- 143,029,154 -- 144,539,194
Equity Growth ........... -- 249,637,065 -- 229,660,140
Small Cap Value ......... -- 27,568,462 -- 43,712,009
Small Company Equity .... -- 170,773,460 -- 93,459,828
International Equity .... -- 57,584,521 -- 33,561,191
</TABLE>
The aggregate gross unrealized appreciation and depreciation, net unrealized
appreciation (depreciation) and cost for all securities as computed on a federal
income tax basis, at April 30, 1997 for each Fund is as follows:
<TABLE>
<CAPTION>
FUND APPRECIATION (DEPRECIATION) NET COST
- ----- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
Asset Allocation ........ $ 45,986,987 $ (2,531,084) $ 43,455,903 $ 261,582,815
Equity Income ........... 62,764,630 (1,670,551) 61,094,079 195,047,445
Growth and Income ....... 53,618,120 (6,177,341) 47,440,779 302,541,408
Equity Value ............ 59,709,161 (7,248,883) 52,460,278 310,188,496
Equity Growth ........... 239,459,536 (13,468,598) 225,990,938 620,542,512
Small Cap Value ......... 39,537,627 (16,431,400) 23,106,227 146,452,332
Small Company Equity .... 35,799,137 (58,300,129) (22,500,992) 335,387,115
International Equity .... 47,606,807 (23,061,097) 24,545,710 236,112,171
</TABLE>
7. FOREIGN SECURITIES
Each Fund may purchase securities of foreign issuers. Investing in securities
of foreign issuers involves special risks not typically associated with
investing in securities of U.S. issuers. The risks include possible revaluation
of currencies, less complete financial information about companies and possible
future adverse political and economic developments. Moreover, securities of many
foreign issuers and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. issuers.
8. ACQUISITION OF SHAWMUT FUNDS
At a meeting held on June 12, 1995, the Board of Trustees of the Trust
approved an Agreement and Plan of Reorganization (the "Agreement") for the
acquisition of The Shawmut Funds ("Shawmut") by the Trust. Pursuant to the
Agreement, all of the assets and liabilities of the Shawmut Growth Equity Fund
were transferred to the Galaxy Equity Growth Fund in exchange for shares of the
Galaxy Equity Growth Fund. In addition, all of the assets and liabilities of the
Shawmut Growth and Income Equity Fund and the Shawmut Small Capitalization
Equity Fund were transferred to the Galaxy Growth and Income Fund and the Galaxy
Small Cap Value Fund, respectively, new portfolios of the Trust, in exchange for
shares of the Galaxy Growth and Income Fund and the Galaxy Small Cap Value Fund,
respectively. Accordingly, the net assets attributable to Investment Shares and
Trust Shares of the Shawmut Growth Equity Fund were exchanged for 578,307 Retail
A Shares and 1,090,562 Trust Shares, respectively, of the Galaxy Equity Growth
Fund, the net assets attributable to the Investment Shares and Trust Shares of
the Shawmut Growth and Income Equity Fund were exchanged for 4,539,659 Retail A
and 15,827,841 Trust Shares of the Galaxy Growth and Income Fund and the net
assets attributable to Investment Shares and Trust Shares of the Shawmut Small
Capitalization Equity Fund were exchanged for 2,337,814 Retail A and 10,259,304
Trust Shares of the Galaxy Small Cap Value Fund. In related transactions, the
assets and liabilities of other Shawmut portfolios were transferred to
corresponding Galaxy portfolios in exchange for shares in such Galaxy
portfolios. The reorganization, which qualified as a tax-free reorganization for
federal income tax purposes, was completed on December 4, 1995, following the
approval of the reorganization by Shawmut shareholders. Certain share
registration fees incurred in connection with the reorganization were borne by
the Trust. The following is a summary of the Net Assets, Shares Outstanding, Net
Asset Values per share and unrealized Appreciation associated with the
transaction:
<TABLE>
<CAPTION>
Before Acquisition After Acquisition
--------------------------- -----------------
Galaxy Shawmut Galaxy
Equity Growth Equity
Growth Equity Growth
------------ ------------ -----------------
<S> <C> <C> <C>
Net Assets ............................. $ 541,014,789 $ 29,513,366 $ 570,528,155
Shares outstanding ..................... 30,602,041 2,442,515 32,270,910
Retail A (Investment) and Trust
Net Asset Value, per share ............ $ 17.68 $ 12.08 $ 17.68
Unrealized Appreciation ................ $ 165,620,815 $ 4,373,967
Before Acquisition After Acquisition
--------------------------- -----------------
Galaxy Shawmut Galaxy
Growth Growth and Growth
and Income Income Equity and Income
------------ ------------- -----------------
Net Assets .............................. $ 10.00 $247,375,548 $ 247,375,558
Shares outstanding ...................... 1.00 20,367,500 20,367,501
Retail A (Investment)
Net Asset Value, per share ............. $ 10.00 $ 12.14 $ 12.14
Trust Net Asset Value, per share ........ $ 10.00 $ 12.15 $ 12.15
Unrealized Appreciation ................. -- $ 36,544,615
Before Acquisition After Acquisition
--------------------------- -----------------
Galaxy Shawmut Small Galaxy
Small Cap Capitalization Small Cap
Value Equity Value
------------ ------------ ----------------
Net Assets .............................. $ 10.00 $ 154,893,661 $ 154,893,671
Shares outstanding ...................... 1.00 12,597,118 12,597,119
Retail A (Investment)
Net Asset Value, per share ............. $ 10.00 $ 12.31 $ 12.31
Trust Net Asset Value, per share ........ $ 10.00 $ 12.29 $ 12.29
Unrealized Appreciation ................. -- $ 25,218,968
</TABLE>
9. IMPOSITION OF FRONT-END SALES LOAD
Effective December 1, 1995, the public offering price for Retail A Shares of
the Funds is the sum of the net asset value of the Retail A Shares purchased
plus, if applicable, a maximum 3.75% front-end sales charge. Reduced sales
charges are available in certain circumstances. No sales charge will be assessed
on certain transactions and/or investors, including purchases by persons who
were beneficial owners of shares of Galaxy or any other funds advised by Fleet
Investment Advisors, Inc. or its affiliates before December 1, 1995.
<PAGE>
TRUSTEES
AND OFFICERS
Dwight E. Vicks, Jr.
Chairman and Trustee
John T. O'Neill
President, Treasurer
and Trustee
Louis DeThomasis,
F.S.C., Ph.D.
Trustee
Donald B. Miller
Trustee
James M. Seed
Trustee
Bradford S. Wellman
Trustee
W. Bruce
McConnel, III, Esq.
Secretary
Jylanne Dunne
Vice President &
Assistant Treasurer
INVESTMENT ADVISOR
Fleet Investment
Advisors Inc.
75 State Street
Boston, MA
02109
DISTRIBUTOR
First Data
Distributors, Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581
ADMINISTRATOR
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581-5108
This report is submitted for the general information of shareholders of The
Galaxy Fund. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective prospectus for the Fund, which
contains more information concerning the Fund's investment policies, as well as
fees and expenses and other pertinent information. Read the prospectus carefully
before you invest.
Shares of the Funds are not deposits or obligations of, or guaranteed or
endorsed by Fleet Financial Group, Inc. or any of its affiliates, Fleet
Investment Advisors Inc., or any Fleet bank. Shares of the Funds are not
federally insured by the U.S. Government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board or any other agency. Investment return
and principal value will vary as a result of market conditions or other factors
so that shares of the Funds, when redeemed, may be worth more or less than their
original cost. An investment in the Funds involves investment risks, including
the possible loss of principal.
[Recycle Logo]
This report was printed on recycled paper.
<PAGE>
- --------------- ----------------
4400 Computer Drive BULK RATE
GALAXY Box 5108 U.S. POSTAGE PAID
FUNDS Westborough, MA 01581-5108 PERMIT NO. 105
- --------------- N. READING, MA
----------------
FN-085 (6/97) Date of first use 7/1/97
