[GRAPHIC]
Galaxy Equity Funds
Galaxy Funds
Semi-Annual Report
April 30, 1999
Galaxy Asset Allocation Fund
Galaxy Equity Income Fund
Galaxy Growth and Income Fund
Galaxy Strategic Equity Fund
Galaxy Equity Value Fund
Galaxy Equity Growth Fund
Galaxy International Equity Fund
Galaxy Small Cap Value Fund
Galaxy Small Company Equity Fund
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Chairman's Message
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
Dear Shareholder:
Enclosed is the Galaxy Equity Funds' performance report for the six months
ended April 30, 1999. The report includes a Market Overview that describes the
different economic and market factors influencing your investments during this
time. Following the Market Overview are portfolio reviews for each of the Galaxy
Equity Funds that describe how Fleet Investment Advisors Inc. managed the Funds'
portfolios in this climate. Financial statements and a list of portfolio
holdings for each of the Funds as of April 30, 1999 appear at the end of the
report.
As the economic outlook brightened during the recent six-month period,
stocks of large growth companies rebounded strongly from their correction in the
summer of 1998. Stocks of smaller firms, among other sectors, performed less
well, as the market surveyed the new economic landscape. Individual sectors of
the bond market also responded to a changing outlook in different ways. As in
previous transitions, experienced investors held to their long-term strategies
and kept their portfolios well diversified.
During this time, Fleet Investment Advisors Inc. has also worked with us to
expand the information we provide to our shareholders. By giving you more
information that is easier to access, we hope to help you manage current market
conditions more effectively and develop investment plans that bring you closer
to your financial goals.
At the end of 1998, we launched The Galaxy, America's first mutual fund
newspaper. Sent to more than 200,000 retail shareholders of the Galaxy Funds,
this quarterly publication provides in-depth coverage of key market trends,
investment issues, and planning tools. There are also interviews with Galaxy
Fund portfolio managers, as well as announcements of new products and services
for shareholders.
In addition, we are expanding our web site (www.galaxyfunds.com). The
revised site - which should be completed by the end of this summer - will
include more educational articles, interactive services, and market reports.
Shareholders will also be able to access many of the articles from The Galaxy on
the site.
We hope these new shareholder services will help you make the most of your
Galaxy Fund investments. We encourage you to contact us for any additional
information you may need, including questions about the material in this report,
by calling the Galaxy Information Center toll-free at 1-877-BUY-GALAXY
(1-877-289-4252). You can also visit our investment professionals located at
Fleet branches.
Sincerely,
/s/Dwight E. Vicks, Jr.
Dwight E. Vicks, Jr.
Chairman of the Board of Trustees
1
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Market Overview
Equity Market Overview
By Fleet Investment Advisors Inc.
After a sharp decline during the fourth quarter of 1998, prices for stocks
of large companies advanced strongly in the months that followed. During the six
months ended April 30, 1999, the Standard & Poor's 500 Index (the "S&P 500
Index") earned a return of 22.31%. Following an initial rebound from the
correction, stocks of smaller firms fared less well - leaving their benchmark,
the Russell 2000 Index ("Russell 2000"), with a return of 15.16% for the
reporting period. With improving economic conditions overseas, the Morgan
Stanley Europe, Australasia & Far East ("EAFE") Index had a total return of
15.28% during that time.
A Brighter Economic Outlook
Investors continued to prefer a narrow group of large-company growth shares
despite an improving economic picture. After growing at an annualized rate of
3.7% in the third quarter of 1998, the gross domestic product ("GDP"), which
measures the output of U.S. goods and services, rose by 6% in the fourth
quarter. The strength of the U.S. economy was particularly impressive given that
Japan and emerging markets in Asia and other regions remained in serious
economic trouble and had reduced their imports of U.S. goods.
From August through October, however, concern about a world recession had driven
investors at home and abroad into U.S. Treasury securities for safety. This
flight to quality had created a liquidity crisis in international markets.
Following cuts in short-term interest rates in both September and October to
stem the crisis, the Federal Reserve (the "Fed") imposed a third 25 basis point
cut (0.25%) in November. Bond yields drifted lower in response, and investors
eventually became more confident about future growth. This encouraged a shift
from Treasuries into stocks. Although corporate earnings reports were
disappointing, stock prices rebounded strongly.
In the first months of 1999, a strong advance by large-company shares
helped push the Dow Jones Industrial Average above 10,000 for the first time.
Despite continued weakness in the reported fourth quarter corporate earnings,
investors hailed continued economic strength and an inflation rate that remained
near 1.5%. (In a later report, the Commerce Department estimated GDP growth for
the first quarter of 1999 at 4.1%.)
Overseas, stock prices rebounded strongly as economic prospects improved
there, too. Once the Fed had cut U.S. interest rates, rates also fell abroad.
This helped to stabilize foreign economies and create much-needed market
liquidity for stocks. Gains were particularly strong in the emerging markets of
Asia, where stock prices had fallen sharply for most of 1997 and 1998. After
keeping pace with the U.S. stock rally at the end of 1998, Japanese stocks
outperformed in the months that followed - as long-awaited corporate
restructuring picked up speed and investors sensed that the economy might be
bottoming out. Stocks in Europe also advanced, but gains were muted by weaker
economies and uncertainty about the region's recent monetary union.
Increasing Returns
Even as economic outlooks improved at home and abroad, investors in U.S.
stocks remained focused on large-company growth shares. With the exception of
Internet stocks and other issues in the technology sector, small-cap issues
lagged significantly after a short rebound in the fall of 1998. Value-oriented
shares also underperformed.
In this market environment, we increased returns for many of the Galaxy
Equity Funds by taking profits in shares that had performed well and investing
the proceeds in new investment opportunities with better performance potential.
As always, we tended to focus on quality companies with strong prospects for
earnings growth and reasonable prices. Toward the end of the period, when
economic confidence had finally encouraged investors to broaden their interest
to economically sensitive issues, we increased positions in cyclical shares in
some portfolios.
"After growing at an annualized rate of
3.7% in the third quarter of 1998, the
gross domestic product ("GDP"), which
measures the output of U.S. goods and services,
rose by 6% in the fourth quarter."
2
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"The current economic
expansion, now eight
years old, represents
the longest continu-
ous period of growth
in 30 years."
Market Correction Still Possible
The current economic expansion, now eight years old, represents the longest
continuous period of growth in 30 years. Although foreign economies have
stabilized in recent months, there are still many problems that could keep a lid
on U.S. exports. This, combined with a possible slowdown in consumer spending,
could keep GDP growth below 3% for the rest of 1999.
If growth moderates, inflation should remain in check. This would allow the
Fed to keep interest rates on hold and preserve the expansion. While slower
growth now could mean stronger growth down the road, any reduction in corporate
earnings could cause stock prices to correct - especially shares of large-cap
growth companies and Internet firms, whose valuations have increased
significantly. A stock correction could, however, set the stage for new gains by
many issues, as low inflation and interest rates help to strengthen earnings.
It is still uncertain whether investors will continue their most recent
shift into small- and medium-sized issues, value-oriented shares, and shares of
companies within economically sensitive industries. The brighter the economic
outlook, the more likely the market will broaden. As investors recognize the
attractive opportunities available in sectors that have been long neglected, we
believe those sectors are positioned to outperform."
PERFORMANCE AT-A-GLANCE
AVERAGE ANNUAL TOTAL RETURNS -- TRUST SHARES
<TABLE>
<CAPTION>
10 Years/
As of April 30, 1999 6 Months 1 Year 3 Years 5 Years Life of Fund
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Fund
(Inception date 12/30/91) 9.90%* 12.12% 17.67% 17.43% 13.18%
.....................................................................................................
Equity Income Fund
(Inception date 12/14/90) 13.59* 10.80 20.22 20.20 16.11
.....................................................................................................
Growth and Income Fund
(Inception date 12/14/92) 19.24* 10.00 21.62 21.63 18.34
.....................................................................................................
Strategic Equity Fund
(Inception date 3/4/98) 18.15* 11.97 N/A N/A 12.18
.....................................................................................................
Equity Value Fund
(Inception date 9/1/88) 22.32* 12.74 23.82 22.33 15.64
.....................................................................................................
Equity Growth Fund
(Inception date 12/14/90) 23.02* 18.34 26.20 24.65 18.93
.....................................................................................................
International Equity Fund
(Inception date 12/30/91) 16.60* 9.70 14.91 12.56 12.05
.....................................................................................................
Small Cap Value Fund
(Inception date 12/30/91) 5.71* -15.81 11.97 16.42 14.16
.....................................................................................................
Small Company Equity Fund
(Inception date 12/30/91) 2.01* -28.59 -3.92 9.38 9.01
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Unannualized total returns.
3
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PERFORMANCE AT-A-GLANCE (continued)
AVERAGE ANNUAL TOTAL RETURNS -- RETAIL A SHARES**
<TABLE>
<CAPTION>
10 Years/
As of April 30, 1999 6 Months 1 Year 3 Years 5 Years Life of Fund
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Fund
(Inception date 12/30/91) 5.79%* 7.75% 16.01% 16.34% 12.46%
.....................................................................................................
Equity Income Fund
(Inception date 12/14/90) 9.09* 6.22 18.23 18.78 15.29
.....................................................................................................
Growth and Income Fund
(Inception date 2/12/93) 14.54* 5.58 19.78 20.35 17.81
.....................................................................................................
Strategic Equity Fund
(Inception date 3/4/98) 13.57* 7.39 N/A N/A 7.95
.....................................................................................................
Equity Value Fund
(Inception date 9/1/88) 17.54* 8.15 21.85 20.98 15.47
.....................................................................................................
Equity Growth Fund
(Inception date 12/14/90) 18.21* 13.46 24.11 23.23 18.12
.....................................................................................................
International Equity Fund
(Inception date 12/30/91) 11.95* 5.01 12.79 11.11 11.06
.....................................................................................................
Small Cap Value Fund
(Inception date 12/30/91) 1.56* -19.32 10.15 15.17 13.53
.....................................................................................................
Small Company Equity Fund
(Inception date 12/30/91) 11.95* 5.01 12.79 11.11 11.06
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</TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- A PRIME SHARES***
<TABLE>
<CAPTION>
10 Years/
As of April 30, 1999 6 Months 1 Year 3 Years 5 Years Life of Fund
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Asset Allocation Fund
(Inception date 11/1/98) 4.00%* N/A N/A N/A 4.00%*
.....................................................................................................
Growth and Income Fund
(Inception date 11/1/98) 12.60* N/A N/A N/A 12.60*
.....................................................................................................
Equity Growth Fund
(Inception date 11/1/98) 15.63* N/A N/A N/A 15.63*
.....................................................................................................
International Equity Fund
(Inception date 11/1/98) 10.38* N/A N/A N/A 10.38*
.....................................................................................................
Small Cap Value Fund
(Inception date 11/1/98) -0.29* N/A N/A N/A -0.29*
- -----------------------------------------------------------------------------------------------------
</TABLE>
* 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.
*** Return figures include the effect of the maximum 5.50% front-end sales
charge which became effective on November 1, 1998.
4
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PERFORMANCE AT-A-GLANCE (continued)
AVERAGE ANNUAL TOTAL RETURNS--RETAIL B SHARES***
<TABLE>
<CAPTION>
6 Month 6 Month 1 Year 1 Year Life of Fund Life of Fund
Return Before Return After Return Before Return After Return Before Return After
Contingent Contingent Contingent Contingent Contingent Contingent
Deferred Sales Deferred Sales Deferred Sales Deferred Sales Deferred Sales Deferred Sales
As of April 30, 1999 Charge Deducted Charge Deducted** Charge Deducted Charge Deducted** Charge Deducted Charge Deducted**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Asset Allocation Fund
(Inception date 3/4/96) 9.52%* 4.52%* 11.27% 6.27% 15.89% 15.43%
....................................................................................................................................
Equity Income Fund
(Inception date 11/1/98) 11.73* 6.73* N/A N/A 11.73* 6.73*
....................................................................................................................................
Growth and Income Fund
(Inception date 3/4/96) 18.59* 13.59* 8.89 3.89 20.14 19.71
....................................................................................................................................
Strategic Equity Fund
(Inception date 3/4/98) 17.51* 12.51* 11.04 6.04 11.20 7.45
....................................................................................................................................
Equity Value Fund
(Inception date 3/4/96) 21.74* 16.74* 11.62 6.62 21.69 21.27
....................................................................................................................................
Equity Growth Fund
(Inception date 3/4/96) 22.33* 17.33* 17.07 12.07 23.93 23.53
....................................................................................................................................
International Equity Fund
(Inception date 11/1/98) 16.00* 11.00* N/A N/A 16.00* 11.00*
....................................................................................................................................
Small Cap Value Fund
(Inception date 11/1/98) 5.05* 0.27* N/A N/A 5.05* 0.27*
....................................................................................................................................
Small Company Equity Fund
(Inception date 3/4/96) 1.42* -3.58* -29.34 -32.88 0.43 -0.07
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS--B PRIME SHARES***
<TABLE>
<CAPTION>
6 Month 6 Month 1 Year 1 Year Life of Fund Life of Fund
Return Before Return After Return Before Return After Return Before Return After
Contingent Contingent Contingent Contingent Contingent Contingent
Deferred Sales Deferred Sales Deferred Sales Deferred Sales Deferred Sales Deferred Sales
As of April 30, 1999 Charge Deducted Charge Deducted** Charge Deducted Charge Deducted** Charge Deducted Charge Deducted**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Asset Allocation Fund
(Inception date 11/1/98) 9.67%* 4.67%* N/A N/A 9.67%* 4.67%*
....................................................................................................................................
Growth and Income Fund
(Inception date 11/1/98) 18.76* 13.76* N/A N/A 18.76* 13.76*
....................................................................................................................................
Equity Growth Fund
(Inception date 11/1/98) 22.35* 17.35* N/A N/A 22.35* 17.35*
....................................................................................................................................
International Equity Fund
(Inception date 11/1/98) 16.27* 11.27* N/A N/A 16.27* 11.27*
....................................................................................................................................
Small Cap Value Fund
(Inception date 11/1/98) 5.20* 0.41* N/A N/A 5.20* 0.41*
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</TABLE>
* Unannualized total returns
** As if shares were redeemed at end of period.
*** Retail B Shares and B Prime 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, respectively.
Retail B Shares automatically convert to Retail A Shares after six years
and B Prime Shares automatically convert to A Prime Shares after eight
years.
Past performance is no guarantee of future results. 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 Advisor 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. Total return figures in this report
include changes in share price, reinvestment of dividends and capital gains
distributions and include the deduction of any sales charges, where applicable,
unless otherwise indicated.
5
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Portfolio Reviews
GALAXY ASSET ALLOCATION FUND
[PHOTO]
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 1977.
By Don Jones
Portfolio Manager
As a changing economic outlook caused the prices for stocks and bonds to
fluctuate over the last six months, we used temporary periods of market strength
to lock in profits from investments in the Galaxy Asset Allocation Fund that had
performed particularly well. During times of market weakness, we added
investments that we felt had good value. To increase the stability of Fund
returns in a changeable environment, we maintained a 40% weighting in bonds
throughout the reporting period.
These strategies helped the Fund's Trust Shares earn a total return of
9.90% for the six months ended April 30, 1999. For the same period, its Retail A
Shares returned 9.91%, before deducting the maximum 3.75% front-end sales
charge, and its Retail B Shares returned 9.52%, before deducting the maximum
5.00% contingent deferred sales charge. A Prime Shares returned 10.07% before
deducting the maximum 5.50% front-end sales charge for the period since their
initial public offering on November 1, 1998 through April 30, 1999. B Prime
Shares returned 9.67% before deducting the maximum 5.00% contingent deferred
sales charge for the period since their initial public offering on November 1,
1998 through April 30, 1999. (Please see the charts on page 4 for total returns
after deducting the applicable front-end sales charge, and the charts on page 5
for total returns after deducting the applicable contingent deferred sales
charge.)
These returns compare with a return of 12.79% for the average of flexible
funds tracked by Lipper Analytical Services Inc. ("Lipper"). During the same
time, the S&P 500 Index, which tracks the performance of stocks only, returned
22.31%.
Investment Strategy
In the fourth quarter of 1998, when the period began, we found many new
investment opportunities in stocks that resulted from a sharp market correction
during the third quarter. During this time, we used the proceeds from selling
shares of manufacturing firms to buy stocks of financial and technology
companies. With investors nervous about the future of financial markets here and
abroad, we reduced the Fund's allocation to corporate bonds in the fixed-income
portfolio from 60% to 50%.
As a strong economy helped stocks rise briskly in the first months of 1999,
the Fund continued to benefit from our emphasis on individual stocks and market
sectors that investors have favored for some time -- such as stocks of consumer
staples and technology firms. An underweighting in economically sensitive
issues, which were out of favor at the time, enhanced the Fund's returns early
in 1999.
6
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Portfolio Reviews
At this point, we took profits in medical and energy stocks that had
performed well and used the proceeds to increase other positions with better
potential. Among the stocks we bought were shares of capital goods firms --
which performed well at the end of the period -- as well as stocks of oil
service, retail, transportation, and large Internet companies. In the fixed
income portfolio, we enjoyed strong performances by many corporate issues. This
helped increase the weighting in corporate bonds to about 52% of the fixed
income portfolio by the end of the period.
New Opportunities
If growth remains strong, and it looks like investors will continue to
favor economically sensitive issues, we may further increase the Fund's
positions in oil-service stocks and shares from other "cyclical" sectors. Now
that technology stocks have corrected, we may also increase investments in that
group. Some of the likely candidates for profit taking include stocks of drug
and telephone utility firms -- two groups that have performed especially well in
recent months.
The recent increase in yields has made bond prices quite attractive. As a
result, we may soon start to sell corporate bonds from the financial sector,
which is especially vulnerable to rises in interest rates, and look for
corporates from other sectors that offer better value. Given the potential for
slower growth and lower yields in the second half of the year, our position in
bonds with longer maturities should let us lock in the strong yields that have
become available. If economic uncertainty causes a significant correction in
stock prices, we may shift some of the Fund's assets from bonds into stocks as
we find new investment opportunities in the equity markets.
Galaxy Asset Allocation Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Government and Agency Obligations
& Net Other Assets and Liabilities 21%
Repurchase Agreement 10%
Corporate Notes and Bonds 17%
Asset-Backed and Mortgage-Backed Securities 3%
Common & Convertible Preferred Stocks 49%
Galaxy Asset Allocation Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 12/30/91 for Trust and Retail A Shares. Since inception
on 3/4/96 for Retail B Shares. Since inception on 11/1/98 for A Prime
Shares and B Prime Shares. Performance figures for Retail A Shares include
the effect of the maximum 3.75% front-end sales charge. Performance figures
for A Prime Shares include the effect of the maximum 5.50% front-end sales
charge. Performance figures for Retail B and B Prime Shares reflect the
deduction of the maximum 5.00% contingent deferred sales charge as if
shares were redeemed on April 30, 1999. The S&P 500 is an unmanaged index
in which investors cannot invest. Results for the index do not reflect the
investment management fees and other expenses incurred by the Fund.
7
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Portfolio Reviews
GALAXY EQUITY INCOME FUND
[PHOTO]
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.
By Ed Klisiewicz
Portfolio Manager
In a climate of changing expectations, the Galaxy Equity Income Fund
benefited from holding shares of quality companies representing diverse market
sectors. Mergers and acquisitions involving certain positions also enhanced Fund
returns.
For the six months ended April 30, 1999, the Fund's Trust Shares had a
total return of 13.59%. Over the same time, Retail A Shares had a total return
of 13.36%, before deducting the maximum 3.75% front-end sales charge. Retail B
Shares of the Fund earned a total return of 11.73% before deducting the maximum
5.00% contingent deferred sales charge for the period since their initial public
offering on November 1, 1998 through April 30, 1999. (Please see the chart on
page 4 for total returns after deducting the front-end sales charge, and the
chart on page 5 for returns after deducting the contingent deferred sales
charge.) Those returns compare to a return of 14.25% for the average of equity
income funds tracked by Lipper. Over the same time the S&P 500 Index had a total
return of 22.31%.
Well-Positioned for Market Conditions
Following a steep market correction in October of 1998, we put cash to work
in many of the Fund's existing positions -- especially shares of banks. In the
months that followed, strong returns from these and other holdings offset
disappointing performances by energy and utility shares. After a run up in
banking stocks, we took profits in that sector and bought office equipment
shares with better price potential.
During the first months of 1999, the Fund enjoyed strong gains from
consumer, energy and telephone utility stocks. These performances offset damage
from rising bond yields on shares of financial firms and non-telephone
utilities. Although we found several opportunities to enhance Fund holdings, we
felt the portfolio was well positioned for market conditions and made few
significant changes. Throughout the period, we maintained a healthy yield for
the Fund, despite falling yields for stocks generally.
Looking Ahead
If stock prices weaken later this year, stocks with higher yields could
perform relatively well -- as income from dividends offsets declines in share
price. In that environment, we would look for opportunities to add attractively
priced investments with good growth potential. If growth remains strong, and
stock prices rise further, the Fund should continue to benefit from its emphasis
on quality and diversification.
Galaxy Equity Income Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S.Government Obligations, Repurchase Agreement &
Net Other Assets and Liabilities 15%
Basic Materials 3%
Consumer Staples 18%
Consumer Cyclical 10%
Utilities 11%
Capital Goods and Construction 5%
Technology 11%
Energy 12%
Finance 15%
Galaxy Equity Income Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 12/14/90 for Retail A and Trust Shares. Since inception
on 11/1/98 for Retail B Shares. Performance figures for Retail A Shares
include the effect of the maximum 3.75% front-end sales charge. 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,
1999. The S&P 500 is an unmanaged index in which investors cannot invest.
Results for the index do not reflect investment management fees and other
expenses incurred by the Fund.
8
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Portfolio Reviews
GALAXY GROWTH AND INCOME FUND
[PHOTO]
Greg Miller has managed the Galaxy Growth and Income Fund since July of 1998. He
has managed equity portfolios since 1988.
By Greg Miller
Portfolio Manager
In a market where many stocks have become quite overvalued, the Galaxy
Growth and Income Fund benefited from taking profits in shares that had
performed well and adding shares that we believed to have better potential for
price gains over time. This strategy was particularly effective in the final
weeks of the reporting period, when investors turned their attention to the type
of value-oriented issues that we have long emphasized in the Fund.
For the six months ended April 30, 1999, strong performances by sectors
where the Fund was overweighted and healthy gains by many individual stocks
helped the Fund's Trust Shares earn a total return of 19.24%. Over the same time
Retail A Shares earned 19.01%, before deducting the maximum 3.75% front-end
sales charge, and Retail B Shares earned 18.59%, before deducting the maximum
5.00% contingent deferred sales charge. A Prime Shares of the Fund earned a
total return of 19.19% before deducting the maximum 5.50% front-end sales charge
for the period since their initial public offering on November 1, 1998 through
April 30, 1999. B Prime Shares of the Fund earned a total return of 18.76%
before deducting the maximum 5.00% contingent deferred sales charge for the
period since their initial public offering on November 1, 1998 through April 30,
1999. (Please see the charts on page 4 for total returns after deducting the
applicable front-end sales charge, and the charts on page 5 for total returns
after deducting the applicable contingent deferred sales charge.)
For the same period, the average of the growth and income funds tracked by
Lipper had a total return of 18.39%, and the S&P 500 Index had a total return of
22.31%.
Taking Advantage of Market Changes
When the period began in November of 1998, we were using the attractive
prices that had resulted from a recent stock market correction to increase Fund
positions in banking, retail, and energy firms. In the final months of 1998, the
Fund benefited from its specific selection of technology and retail stocks. The
strong gains by these shares helped to offset disappointing results from an
overweighted position in the poorly performing energy sector, which was hurt by
weak prices for oil. As additional market fluctuations occurred, we took profits
in certain technology, health care, and telecommunications shares that had
performed well and used the proceeds to buy other stocks with better promise. An
overweighted position in energy stocks served the Fund well in the first months
of 1999, when rising oil prices helped the sector rebound strongly.
Along with further gains from shares of retail firms, the Fund enjoyed
strong returns from its selection of transportation, basic materials, and
capital goods stocks. Overweightings in capital goods and basic materials
shares, and an underweighting in the lesser-performing consumer staples group,
also enhanced Fund returns. We continued to take profits in health
9
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Portfolio Reviews
care issues-- a strategy that proved particularly beneficial as the economy
strengthened and investors moved into stocks with greater cyclical exposure.
With interest waning in the technology sector, we focused on tech stocks with
more reasonable valuations.
Benefiting from Growth and Value
It remains to be seen whether the recent investor interest in
value-oriented stocks will last. A sustained rebound in this sector will require
continued optimism by investors about economic growth at home and abroad. Growth
stocks typically outperform when the economy is slowing and investors are
becoming worried about earnings, while value-oriented stocks generally do well
as the economy emerges from recession. Since the current economic outlook lies
somewhere in between these two scenarios, the stock market may rotate between
growth and value investments in the months to come.
We believe the Fund is well positioned for this type of environment. The
sector weightings and stock selection that we've chosen are oriented toward
value, while the estimated earnings growth rates for investments in the Fund are
more than twice the estimated earnings growth rate for stocks as a whole.
Because most of any future increases in oil prices have already been absorbed by
energy stocks, we may begin to trim the Fund's overweighted position in that
sector. If the rotation into economically sensitive issues continues, further
reducing the prices of consumer staples firms, we may add to investments in the
consumer staples sector.
Galaxy Growth and Income Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Other Preferred & Common Stocks 20%
Consumer Staples 17%
Technology 14%
Finance 13%
Consumer Cyclical 12%
Energy 8%
Utilities 8%
Repurchase Agreement & Net Other Assets
and Liabilities 8%
Galaxy Growth and Income Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* 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. Since inception on
11/1/98 for A Prime Shares and B Prime Shares. Performance figures for
Retail A Shares include the effect of the maximum 3.75% front-end sales
charge. Performance figures for A Prime Shares include the effect of the
maximum 5.50% front-end sales charge. Performance figures for Retail B and
B Prime Shares reflect the deduction of the maximum 5.00% contingent
deferred sales charge as if shares were redeemed on April 30, 1999. The S&P
500 is an unmanaged index in which investors cannot invest. Results for the
index do not reflect the investment management fees and other expenses
incurred by the Fund.
10
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Portfolio Reviews
GALAXY STRATEGIC EQUITY FUND
[PHOTO]
Peter Hathaway has managed the Galaxy Strategic Equity Fund since its inception
in March of 1998. He has worked for Fleet Investment Advisors Inc., or its
predecessors, since 1965 and has managed investments since 1974.
By Peter Hathaway
Portfolio Manager
As stocks of large growth companies led major market indices to new highs
in the past six months, many mid-sized firms underperformed. Although mid-sized
companies represent a large part of the Galaxy Strategic Equity Fund, the Fund
benefited from emphasizing industry sectors that performed well during the
period. Strong gains by many individual stocks further enhanced returns.
For the six months ended April 30, 1999, the Fund's Trust Shares earned a
total return of 18.15%. For the same period, Retail A Shares returned 17.94%,
before deducting the maximum 3.75% front-end sales charge, and Retail B Shares
returned 17.51%, before deducting the maximum 5.00% contingent deferred sales
charge. (Please see the chart on page 4 for total returns after deducting the
front-end sales charge, and the chart on page 5 for total returns after
deducting the contingent deferred sales charge.) Over the same time, the average
of growth and income funds tracked by Lipper earned a total return of 18.39% and
the S&P 500 Index returned 22.31%.
As the Fund's technology stocks appreciated substantially from their
third-quarter correction, we traded some of these issues for shares of energy,
capital goods, and finance firms that offered better value. By March of 1999,
with the firming of oil prices, energy holdings were boosting returns. Energy
stocks remain a major Fund investment due to what we believe are excellent
long-term fundamentals.
More recently -- with increased stability abroad, a firmer profit outlook
for economically sensitive industries, and increased concern over the extremely
high valuations for a few large growth stocks -- there has been a healthy
rotation into other sectors. Our earlier emphasis on value and growth at a
reasonable price has positioned the Fund for this shift. Of added benefit were
solid gains from individual health care, transportation, and energy stocks that
offset lesser performances by certain consumer cyclical and technology shares.
Overweightings in health care, energy, and transportation stocks, and an
underweighting in consumer stocks, also enhanced Fund returns -- offsetting an
underweighting in the better-performing financial sector.
A Balance of Growth and Value
We continue to emphasize reasonably priced stocks of medium-sized companies
with strong long-term potential. Expected earnings growth for stocks in the
portfolio is 2% greater than that for stocks in the S&P 500 Index. Believing
that many stocks in the Index are overvalued, particularly shares of larger
firms, we have concentrated on more attractive alternatives. This should serve
the Fund well if the recent broadening of investor interest continues.
Galaxy Strategic Equity Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Repurchase Agreement & Net
Other Assets and Liabilities 8%
Consumer Cyclical 10%
Consumer Staples 13%
Technology 15%
Energy 20%
Capital Goods and Construction 9%
Finance 14%
Basic Materials 6%
Other Common Stocks 5%
Galaxy Strategic Equity Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 3/4/98 for Trust, Retail A Shares and Retail B Shares.
Performance figures for Retail A Shares include the effect of the maximum
3.75% front-end sales charge. 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, 1999. The S&P 500 is an unmanaged
index in which investors cannot invest. Results for the index do not
reflect the investment management fees and other expenses incurred by the
Fund.
11
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Portfolio Reviews
GALAXY EQUITY VALUE FUND
[PHOTO]
G. Jay Evans has managed the Galaxy Equity Value Fund since April of
1993. He has managed value-oriented portfolios for Fleet Investment Advisors
Inc., and its predecessors, since 1978.
By G. Jay Evans
Portfolio Manager
The Galaxy Equity Value Fund enjoyed strong returns for the six months
ended April 30, 1999 that outpaced the returns of its market benchmarks. Of
particular help were strong performances early in the period by holdings in
stocks of consumer cyclical and technology firms -- two sectors where the Fund
was overweighted versus its benchmarks. The Fund also benefited from excellent
selectivity in the energy and health care sectors.
These performances helped offset weaker returns from financial holdings
later in the period, which resulted as a strong economy drove interest rates
high, and underweightings in the soaring stocks of Internet, personal
communications and large-capitalization growth issues that were due to our
ongoing orientation toward value.
For the six months ended April 30, 1999, Trust Shares of the Galaxy Equity
Value Fund earned a total return of 22.32%. For the same period, Retail A Shares
returned 22.10%, before deducting the maximum 3.75% front-end sales charge, and
Retail B Shares returned 21.74%, before deducting the maximum 5.00% contingent
deferred sales charge. (Please see the chart on page 4 for total returns after
deducting the front-end sales charge, and the chart on page 5 for total returns
after deducting the contingent deferred sales charge.)
For the same 6-month period, the average of growth and income funds tracked
by Lipper earned a total return of 18.39% and the S&P 500 Index returned 22.31%.
Contributions to Performance
In the final months of 1998, the inventory correction that had plagued
technology stocks in the first half of the year became a fading memory. This
helped the sector rebound strongly. At the same time, there was less concern
that the stock market's summer sell-off would discourage consumer spending --
which drove consumer cyclical stocks sharply higher.
Consumer cyclical stocks continued to perform well in the first months of
1999, as year-end bonuses and tax rebates were spent on new cars, remodeled
kitchens, winter vacations and spring outfits. Although the Fund had little
exposure to the soaring Internet sector during this time, it enjoyed strong
performances from several positions in other technology stocks. Of additional
benefit was our move into the oil-service sector, which rebounded as oil prices
rose. The Fund's underweighting in the lesser-performing basic materials and
consumer growth sectors further enhanced returns.
Shift Toward Value Could Continue
After leading the market's advance for several years, large-capitalization
growth stocks now sell at unsupportable price/earnings premiums. In contrast,
many stocks with a value orientation -- where the Fund concentrates its
investments
12
<PAGE>
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Portfolio Reviews
- -- have become real bargains. Rarely has the value disparity between growth and
value stocks and between large-cap and mid-cap issues been as wide as it is
today.
The market now appears poised to either correct from its lofty level or
rotate from large-cap growth stocks into value shares. Given the positive
economic environment that now exists, the likelihood of a rotation in leadership
may be greater than the chance for a correction. Equity investors have, in fact,
already started their move from growth to value in recent weeks. The initial
stage of such a move is usually defensive. Investors need not look far into the
future now to find earnings support for low-priced value stocks.
If the economy remains strong, and long-term interest rates continue to
rise, the value of the long streams of earnings that support growth stock prices
will be reduced. Continued economic strength could also pave the way for the
second stage in the shift to value -- which is typically built on the increase
in pricing flexibility that accompanies higher levels of capacity utilization.
Value stocks should thus benefit if earnings expectations continue to rise.
The Galaxy Equity Value Fund is supported by a strong research effort,
which is focused on finding overlooked, undervalued companies that are
experiencing rising levels of profitability. We are helped in this effort by a
highly sophisticated valuation system that is designed to identify stocks for
our review.
Galaxy Equity Value Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Transportation 2%
Energy 7%
Technology 18%
Utilities 6%
Consumer Cyclical 26%
Capital Goods and Construction 7%
Consumer Staples 9%
Finance 21%
Repurchase Agreement & Net Other
Assets and Liabilities 4%
Galaxy Equity Value Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* 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 include
the effect of the maximum 3.75% front-end sales charge. 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, 1999. The S&P
500 is an unmanaged index in which investors cannot invest. Results for the
index do not reflect the investment management fees and other expenses
incurred by the Fund.
13
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Portfolio Reviews
GALAXY EQUITY GROWTH FUND
[PHOTO]
Bob Armknecht has been managing the Galaxy Equity Growth Fund since its
inception in December of 1990. He has managed equity portfolios for Fleet
Investment Advisors Inc. since 1988.
By Bob Armknecht
Portfolio Manager
As economic uncertainty kept investors focused on a narrowing group of
large-company growth stocks for most of the last six months, the Galaxy Equity
Growth Fund benefited from its continued emphasis on large domestic stocks that
have reliable earnings and come from sectors with strong growth potential.
Specifically, these included shares of technology, financial, and consumer
staples firms. This strategy helped the Fund perform well against both its
market benchmark and its fund peer group during the recent reporting period.
For the six months ended April 30, 1999, the Fund's Trust Shares earned a
total return of 23.02%. Over the same time, Retail A Shares earned 22.80%,
before deducting the 3.75% maximum front-end sales charge, and Retail B Shares
earned 22.33%, before deducting the 5.00% maximum contingent deferred sales
charge. A Prime Shares of the Fund earned a total return of 22.38% before
deducting the maximum 5.50% front-end sales charge for the period since their
initial public offering on November 1, 1998 through April 30, 1999. B Prime
Shares of the Fund earned a total return of 22.35% before deducting the 5.00%
maximum contingent deferred sales charge for the period since their initial
public offering on November 1, 1998 through April 30, 1999. (Please see the
charts on page 4 for total returns after deducting the applicable front-end
sales charge, and the charts on page 5 for total returns after deducting the
applicable contingent deferred sales charge.)
Over the same period, the total return for the average of growth funds
tracked by Lipper was 23.07% and the S&P 500 Index earned a total return of
22.31%.
Making the Most of Market Changes
In the first months of the period, we took advantage of the attractive
prices that were available following the third-quarter stock market correction
to add shares of broadcasting, finance, and entertainment firms.
During this time, we also traded investments within the technology sector
to enhance the earnings potential of Fund holdings in that group. This helped
the Fund benefit from a strong rebound by technology shares, which represented
an overweighted position in the Fund versus the S&P 500 Index. Solid gains by
shares of financial firms also enhanced returns. Although low oil prices hurt
returns from shares of energy firms, we were able to use volatility in that
sector to make several profitable trades for the portfolio.
When oil prices rebounded in the first months of 1999, the Fund benefited
from its overweighted position in energy stocks, and from overweightings in the
strongly performing semiconductor
14
<PAGE>
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Portfolio Reviews
and health care sectors. These gains helped offset disappointing returns from
shares of broadcasting, retail, and communications firms. We took profits in
certain technology and communications positions that had performed well and used
the proceeds to buy shares of broadcasting and communications firms whose prices
were particularly attractive. In the communications area, we added shares of
household electronics and cable television firms to the Fund's holdings in
wireless companies. We also found investment opportunities in shares of
manufacturing, industrial, and financial firms during temporary periods of price
weakness. These holdings also contributed positively to Fund returns during the
period.
Adding Economically Sensitive Shares
We continue to emphasize high-growth stocks in the technology, financial,
health care, and consumer staples sectors. With the recent shift by investors
into more economically sensitive groups, we have increased holdings in the
capital goods and consumer cyclical groups as well. In making these additions,
we have focused on high-quality firms that should experience superior growth
beyond that sparked by an improving economy. Although growth may slow in coming
months, creating occasional periods of market weakness, we feel the long-term
prospects for U.S. growth are bright. We expect, therefore, to use such
near-term price declines to increase investments in economically sensitive
issues further. As before, we expect to maintain sizable investments in the same
non-cyclical growth sectors that have served the Fund well in recent years --
upgrading positions in those groups as we find attractive opportunities to do
so.
Galaxy Equity Growth Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Repurchase Agreement & Net
Other Assets and Liabilities 4%
Finance 15%
Energy 9%
Convertible Preferred & Other Common Stocks 14%
Consumer Staples 14%
Technology 23%
Consumer Cyclical 10%
Capital Goods and Construction 11%
Galaxy Equity Growth Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 12/14/90 for Trust and Retail A Shares. Since inception
on 3/4/96 for Retail B Shares. Since inception on 11/1/98 for A Prime
Shares and B Prime Shares. Performance figures for Retail A Shares include
the effect of the maximum 3.75% front-end sales charge. Performance figures
for A Prime Shares include the effect of the maximum 5.50% front-end sales
charge. Performance figures for Retail B and B Prime Shares reflect the
deduction of the maximum 5.00% contingent deferred sales charge as if
shares were redeemed on April 30, 1999. The S&P 500 is an unmanaged index
in which investors cannot invest. Results for the index do not reflect the
investment management fees and other expenses incurred by the Fund.
15
<PAGE>
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Portfolio Reviews
GALAXY INTERNATIONAL EQUITY FUND
[PHOTO]
Thomas M. O'Neill is Chief Investment Officer of Fleet Investment Advisors Inc.,
Oechsle International Advisors, LLC serves as sub-advisor for the Fund Oechsle
International Advisors, LLC is a firm dedicated to international investing and
has approximately $12.2 billion in assets under management.
By Thomas O'Neill, Chief Investment Officer, Fleet Investment Advisors Inc., and
by Oechsle International Advisors, LLC, Sub-Advisor
During the six months ended April 30, 1999, the Galaxy International Equity
Fund enjoyed exceptional performances from many individual holdings. This offset
both a smaller weighting in Japanese stocks, which outperformed during the
period, and an overweighting in European stocks, which underperformed.
During the reporting period, the Fund's Trust Shares earned a total return
of 16.60%. Over the same time, Retail A Shares earned 16.30% before deducting
the maximum 3.75% front-end sales charge. Retail B Shares of the Fund earned a
total return of 16.00% before deducting the maximum 5.00% contingent deferred
sales charge for the period since their initial public offering on November 1,
1998 through April 30, 1999. A Prime Shares of the Fund earned a total return of
16.80% before deducting the maximum 5.50% front-end sales charge for the period
since their initial public offering on November 1, 1998 through April 30, 1999.
B Prime Shares of the Fund earned a total return of 16.27% before deducting the
maximum 5.00% contingent deferred sales charge for the period since their
initial public offering on November 1, 1998 through April 30, 1999.(Please see
the charts on page 4 for total returns after deducting the applicable front-end
sales charge, and the charts on page 5 for total returns after deducting the
applicable contingent deferred sales charge.) Those returns compare with 15.11%
for the average of international funds tracked by Lipper, and 15.28% for the
EAFE Index.
During the period, the Fund enjoyed exceptional individual performances by
many of its Japanese holdings -- particularly shares of telecommunications,
financial, and electric utility firms. Many European stocks also performed well,
including shares of telecommunications firms and companies involved in mergers.
During the period, we increased investments in Japan slightly and improved
the earnings quality of shares that we owned. We gave particular attention to
consumer-finance firms and companies that can benefit from corporate
restructuring. In Europe, we trimmed stocks in France that were particularly
sensitive to a weakening economy and increased holdings in the United Kingdom --
which should benefit from eventual membership in the European Monetary Union.
Late in the period we added investments in Mexico.
Future Strategies
We expect the recent economic progress in Japan to continue. As conditions
improve, we may increase the Fund's weighting in Japan -- which still offers
many attractive opportunities. With continued consolidations among European
firms likely, we plan to look for additional merger candidates.
Now that stocks have begun to rally in Latin America, we may also increase
investments there. As in other parts of the world, our choices will depend on
the relative attractiveness of individual companies versus opportunities in
other regions.
Galaxy International Equity Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Repurchase Agreement & Net
Other Assets and Liabilities 1%
Australia & New Zealand 4%
United Kingdom 22%
Europe 46%
Far East 24%
Canada 3%
Galaxy International Equity Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 12/30/91 for Trust and Retail A Shares. Since inception
on 11/1/98 for Retail B, A Prime Shares and B Prime Shares. Performance
figures for Retail A Shares include the effect of the maximum 3.75%
front-end sales charge. Performance figures for A Prime Shares include the
effect of the maximum 5.50% front-end sales charge. Performance figures for
Retail B and B Prime Shares reflect the deduction of the maximum 5.00%
contingent deferred sales charge as if shares were redeemed on April 30,
1999. The Morgan Stanley Europe, Australasia & Far East Index is an
unmanaged index in which investors cannot invest. Results for the index do
not reflect the investment management fees and other expenses incurred by
the Fund.
16
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Portfolio Reviews
GALAXY SMALL CAP VALUE FUND
[PHOTO]
Peter Larson has managed the Galaxy Small Cap Value Fund, and its predecessor,
since 1963. He has managed small company portfolios since 1981.
By Peter Larson
Portfolio Manager
After a brief rebound from the third-quarter market correction, stocks of
small companies lagged shares of larger firms. Meanwhile, value-oriented shares
continued to underperform growth-oriented issues. By April 1999, however,
investors were recognizing the attractive prices in the small cap and value
sectors. By taking advantage of special investment opportunities, we helped the
Galaxy Small Cap Value Fund make the most of this difficult market environment.
During the six months ended April 30, 1999, the Fund's Trust Shares earned
a total return of 5.71%. Over the same time, Retail A Shares earned 5.54%,
before deducting the maximum 3.75% front-end sales charge. Retail B Shares of
the Fund earned a total return of 5.05% before deducting the maximum 5.00%
contingent deferred sales charge for the period since their initial public
offering on November 1, 1998 through April 30, 1999. A Prime Shares of the Fund
earned a total return of 5.50% before deducting the maximum 5.50% front-end
sales charge for the period since their initial public offering on November 1,
1998 through April 30, 1999. B Prime Shares of the Fund earned a total return of
5.20% before deducting the maximum 5.00% contingent deferred sales charge for
the period since their initial public offering on November 1, 1998 through April
30, 1999. (Please see the charts on page 4 for total returns after deducting the
applicable front-end sales charge, and the charts on page 5 for total returns
after deducting the applicable contingent deferred sales charge.) These returns
compare to 14.68% earned by the average of small-company growth funds tracked by
Lipper and 15.16% earned by the Russell 2000.
Adding on Weakness
At the end of 1998, the Fund enjoyed a strong rebound from its technology,
basic materials, and capital goods shares. Gains from positions involved in
mergers further enhanced returns. These positives helped offset disappointing
performances from energy stocks hurt by weak oil prices. When small-cap prices
weakened, we increased many existing positions -- especially technology shares,
which we felt were much oversold. As oil prices rose in the first months of
1999, energy positions rebounded.
Once again, gains from shares involved in mergers improved returns. We
continued to use price weakness to increase existing positions. Late in the
period, we found attractive opportunities in shares of temporary employment
firms.
Most Attractive Prices in Decades
Although it is too soon to tell if recent market broadening will continue,
we believe a significant rebound in value-oriented shares of small firms lies
ahead. While this could be delayed if growth slows, prices for these shares are
more attractive than they have been in decades. Once investors become confident
about the economy, and give greater weight to company valuations, both the
small-cap and value sectors could substantially outperform.
Galaxy Small Cap Value Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Repurchase Agreement, Corporate Bond
& Net Other Assets and Liabilities 14%
Consumer Cyclical 16%
Finance 13%
Technology 19%
Basic Materials 4%
Capital Goods and Construction 12%
Consumer Staples 15%
Other Common Stocks 7%
Galaxy Small Cap Value Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED AS A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* Since inception on 12/14/92 for Trust Shares. Since inception on 2/12/93
for Retail A Shares. Since inception on 11/1/98 for Retail B, A Prime and B
Prime Shares. Performance figures for Retail A Shares include the effect of
the maximum 3.75% front-end sales charge. Performance figures for A Prime
Shares include the effect of the maximum 5.50% front-end sales charge.
Performance figures for Retail B and B Prime Shares reflect the deduction
of the maximum 5.00% contingent deferred sales charge as if shares were
redeemed on April 30, 1999. The Russell 2000 Index is an unmanaged index in
which investors cannot invest. Results for the index do not reflect the
investment management fees and other expenses incurred by the Fund.
17
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Portfolio Reviews
GALAXY SMALL COMPANY EQUITY FUND
[PHOTO]
Steve Barbaro has managed the Galaxy Small Company Equity Fund since its
inception in December of 1991. He has managed small company portfolios for Fleet
Investment Advisors Inc., and its predecessors, since 1976.
By Steven Barbaro
Portfolio Manager
With investors favoring stocks of large-company growth firms in the past
six months, stocks of small companies with the greatest capitalizations
outperformed. While we gave added weight to these issues, and focused on stocks
with strong growth potential, the Galaxy Small Company Equity Fund
underperformed its market benchmarks -- which were more heavily weighted in
small-cap stocks with greater capitalizations.
For the six months ended April 30, 1999, the Fund's Trust Shares had a
total return of 2.01%. For the same period, Retail A Shares earned 1.69%, before
deducting the maximum 3.75% front-end sales charge, and Retail B Shares earned
1.42%, before deducting the maximum 5.00% contingent deferred sales charge
(Please see the chart on page 4 for total returns after deducting the front-end
sales charge, and the chart on page 5 for returns after deducting the contingent
deferred sales charge.)
These returns compare with the total return of 14.68% for the average of
small-company growth funds tracked by Lipper, and a return of 15.16% for the
Russell 2000.
Technology Shares Aid Returns
As in the third quarter of 1998, we used market weakness at the end of the
year to increase the size of companies in the Fund. Meanwhile, the Fund enjoyed
strong performances from semiconductor stocks, which represented a large portion
of its assets. This, plus new holdings and increases in existing positions,
raised the Fund's technology weighting.
In the first months of 1999, the Fund earned solid returns from many
technology holdings and several positions involved in mergers. Generally,
however, the Fund's investments were neglected by investors seeking either very
rapid earnings growth or exceptional value. During this time, we traded shares
of computer hardware, service, and general software firms for stocks of
networking and semi-conductor companies. We sold some of the Fund's trucking
shares, due to rising costs for fuel.
Adding Economic Sensitivity
We have recently traded some technology positions for holdings in
growth-oriented stocks that can benefit from improving economic conditions.
Within the technology sector, we have shifted assets into positions offering
better value. These moves should enhance returns if the market continues to
broaden. Should the economy weaken, and market leadership narrows again, the
Fund holds many stocks whose growth potential is not tied to a strong economy.
Galaxy Small Company Equity Fund
Distribution of Total Net Assets as of April 30, 1999
[THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Capital Goods and Construction 11%
Consumer Staples 16%
Technology 35%
Consumer Cyclical 21%
Energy 7%
Other Common Stocks & Net Other
Assets and Liabilities 10%
Galaxy Small Company Equity Fund
Growth of $10,000 investment*
[THE FOLLOWING WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[PLOT POINTS TO COME]
* 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
include the effect of the maximum 3.75% front-end sales charge. 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,
1999. The Russell 2000 Index is an unmanaged index in which investors
cannot invest. Results for the index do not reflect the investment
management fees and other expenses incurred by the Fund.
18
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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 at no cost (as long as you exchange within
the same share class).
CONSOLIDATED STATEMENTS
Timely, comprehensive mutual fund account statements offer detailed information
on your individual account. If you have a FleetOne Gold or a Fleet Private
Banking Account, your Galaxy Fund information can be added to these statements.
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 toll-free 1-877-BUY-GALAXY (1-877-289-4252) for
information on initial purchases and current performance.
- --------------------------------------------------------------------------------
Certain shareholder services may not be available to Trust, A Prime and B Prime
Share investors. Please consult the 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., Fleet Enterprises, Inc., or Quick & Reilly, Inc., members
NASD and SIPC.
19
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Shareholder Information
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 and
Assistant Treasurer
William Greilich
Vice President
INVESTMENT ADVISOR
Fleet Investment
Advisors Inc.
75 State Street
Boston, MA
02109
DISRTIBUTOR
First Data
Distributors, Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581-5108
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 each Fund of The
Galaxy Fund, which contains more information concerning the investment policies
and expenses of the Funds as well as other pertinent information. For complete
information, and before making an investment decision on any of the Funds of The
Galaxy Fund, you should request a prospectus from First Data Distributors, Inc.
by calling toll-free 1-877-BUY-GALAXY (1-877-289-4252). Read the prospectus
carefully before you invest.
Shares of the Funds are not bank 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, guaranteed by, obligations of or otherwise supported by
the U.S. Government, the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other governmental 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 amount invested.
[LOGO]
This report was printed on recycled paper.
20
<PAGE>
Asset Allocation Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
-------- ------------
COMMON STOCKS - 48.94%
Consumer Staples - 11.36%
190,000 Becton Dickinson & Co. ........................ $ 7,065,625
130,000 Bestfoods ..................................... 6,524,375
200,000 Boston Scientific Corp.* ...................... 8,512,500
230,000 Coca-Cola Enterprises, Inc. ................... 7,935,000
60,000 Elan Corp. Plc, ADR* .......................... 3,090,000
110,000 Forest Laboratories, Inc.* .................... 4,895,000
80,000 Genzyme Corp.* ................................ 3,020,000
110,000 Gillette Co. .................................. 5,740,625
100,000 Lilly (Eli) & Co. ............................. 7,362,500
120,000 Merck & Co., Inc. ............................. 8,430,000
130,000 PepsiCo, Inc. ................................. 4,801,875
60,000 Pfizer, Inc. .................................. 6,903,750
50,000 Procter & Gamble Co. .......................... 4,690,625
80,000 Warner-Lambert Co. ............................ 5,435,000
------------
84,406,875
------------
Technology - 9.39%
100,000 Altera Corp.* ................................. 7,225,000
180,000 Automatic Data Processing, Inc. ............... 8,010,000
120,000 Cisco Systems, Inc.* .......................... 13,687,500
50,000 Dell Computer Corp* ........................... 2,059,375
80,000 EMC Corp.* .................................... 8,715,000
90,000 Hewlett-Packard Co. ........................... 7,098,750
170,000 Intel Corp. ................................... 10,401,875
160,000 Lucent Technologies, Inc. ..................... 9,620,000
50,000 Xerox Corp. ................................... 2,937,500
------------
69,755,000
------------
Finance - 8.77%
120,000 American International Group, Inc. ............ 14,092,500
89,998 Associates First Capital Corp. ................ 3,988,036
20,000 Bank One Corp. ................................ 1,180,000
40,000 Chase Manhattan Corp. ......................... 3,310,000
160,000 Citigroup, Inc. ............................... 12,040,000
130,000 Fannie Mae .................................... 9,221,875
90,000 First Union Corp. ............................. 4,983,750
120,000 Hartford Financial
Services Group, Inc. .......................... 7,072,500
100,000 Washington Mutual, Inc. ....................... 4,112,500
120,000 Wells Fargo & Co. ............................. 5,182,500
------------
65,183,661
------------
Consumer Cyclical - 5.52%
15,000 American On Line, Inc.* ....................... 2,141,250
150,000 CVS Corp. ..................................... 7,143,750
70,000 Dayton Hudson Corp. ........................... 4,711,875
220,000 Home Depot, Inc. .............................. 13,186,250
200,000 McDonald's Corp. .............................. 8,475,000
200,000 Walgreen Co. .................................. 5,375,000
------------
41,033,125
------------
Energy - 4.13%
120,000 Anadarko Petrolum Co. ......................... 4,552,500
20,000 Chevron Corp. ................................. 1,995,000
170,000 Halliburton Co. ............................... 7,246,250
70,000 Mobil Corp. ................................... 7,332,500
150,000 Schlumberger, Ltd. ............................ 9,581,250
------------
30,707,500
------------
Utilities - 3.82%
120,000 Frontier Corp. ................................ 6,622,500
180,000 MCI WorldCom, Inc.* ........................... 14,793,750
125,000 SBC Communications, Inc. ...................... 7,000,000
------------
28,416,250
------------
Capital Goods and Construction - 3.68%
170,000 Boeing Co. .................................... 6,906,250
60,000 Caterpillar, Inc. ............................. 3,862,500
115,000 Deere & Co. ................................... 4,945,000
110,000 General Electric Co. .......................... 11,605,000
------------
27,318,750
------------
Transportation - 1.82%
100,000 AMR Corp.* .................................... 6,981,250
200,000 Southwest Airlines Co. ........................ 6,512,500
------------
13,493,750
------------
Basic Materials - 0.45%
130,000 Sonoco Products Co. ........................... 3,355,625
------------
Total Common Stocks ........................... 363,670,536
------------
(Cost $225,329,616)
Par Value
- ---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 20.82%
U.S. Treasury Notes - 7.48%
$4,500,000 5.75%, 10/31/00 ............................... 4,546,620
6,000,000 4.50%, 01/31/01 ............................... 5,944,080
2,000,000 5.00%, 02/28/01 ............................... 1,997,440
2,000,000 5.63%, 02/28/01 ............................... 2,018,960
3,000,000 5.25%, 08/15/03 ............................... 2,999,730
5,510,000 4.75%, 02/15/04 ............................... 5,399,800
1,200,000 7.25%, 08/15/04 ............................... 1,306,536
2,300,000 5.63%, 02/15/06 ............................... 2,330,153
3,375,000 6.50%, 10/15/06 ............................... 3,595,860
2,390,000 6.63%, 05/15/07 ............................... 2,573,887
3,750,000 6.13%, 08/15/07 ............................... 3,919,162
800,000 5.63%, 05/15/08 ............................... 811,568
2,500,000 4.75%, 11/15/08 ............................... 2,389,050
1,000,000 8.13%, 08/15/19 ............................... 1,256,890
See Notes to Financial Statements.
21
<PAGE>
Asset Allocation Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Par Value Value
- ---------- ------------
U.S. Treasury Notes (continued)
$5,900,000 8.13%, 08/15/21 ............................... $ 7,480,610
6,000,000 7.25%, 08/15/22 ............................... 6,983,880
------------
55,554,226
------------
U.S. Treasury Bonds - 6.83%
1,500,000 7.63%, 02/15/07 ............................... 1,583,520
4,200,000 12.00%, 08/15/13 .............................. 6,102,138
13,375,000 7.50%, 11/15/16 ............................... 15,676,837
1,000,000 8.88%, 02/15/19 ............................... 1,340,210
750,000 8.50%, 02/15/20 ............................... 978,458
6,200,000 7.88%, 02/15/21 ............................... 7,654,582
3,250,000 7.63%, 11/15/22 ............................... 3,944,005
2,850,000 7.13%, 02/15/23 ............................... 3,280,920
8,950,000 6.13%, 11/15/27 ............................... 9,263,876
1,000,000 5.50%, 08/15/28 ............................... 952,470
------------
50,777,016
------------
Government National
Mortgage Association - 2.68%
252,818 6.50%, 05/15/13, Pool # 473566 ................ 255,978
197,637 6.50%, 06/15/13, Pool # 476470 ................ 200,044
319,199 6.50%, 08/15/13, Pool # 486453 ................ 323,087
85,976 6.50%, 11/15/13, Pool # 454228 ................ 87,024
497,430 6.50%, 11/15/13, Pool # 454234 ................ 503,489
200,941 6.50%, 11/15/13, Pool # 477529 ................ 203,388
1,060,244 6.50%, 11/15/13, Pool # 483663 ................ 1,073,158
254,567 6.50%. 11/15/13, Pool # 493623 ................ 257,667
3,068,098 7.00%, 11/15/13, Pool # 780921 ................ 3,145,751
469,000 9.00%, 12/15/17, Pool # 780201 ................ 502,708
602,974 7.50%, 01/15/26, Pool # 417191 ................ 621,437
2,440,000 6.00%, 10/01/28 ............................... 2,363,750
855,356 7.50%, 10/15/28, Pool # 482799 ................ 881,547
2,537,276 6.50%, 12/15/28, Pool # 495775 ................ 2,520,606
200,199 6.50%, 01/15/29, Pool # 482909 ................ 198,884
966,641 6.50%, 03/15/29, Pool # 464613 ................ 960,290
1,668,263 6.50%, 04/15/29, Pool # 473682 ................ 1,660,839
932,137 6.50%, 04/15/29, Pool # 483349 ................ 927,989
1,800,000 6.50%, 04/15/29, Pool # 488234 ................ 1,788,174
399,900 6.50%, 04/15/29, Pool # 506494 ................ 397,273
1,000,000 7.50%, 04/15/29, Pool # 434321 ................ 1,032,430
------------
19,905,513
------------
Federal National
Mortgage Association - 1.79%
1,000,000 6.74%, 09/19/01 ............................... 1,031,240
1,000,000 6.49%, 01/19/06 ............................... 1,003,870
711,866 6.00%, 01/01/09, Pool # 269929 ................ 708,307
3,990,000 5.25%, 01/15/09 ............................... 3,805,782
2,779,402 7.00%, 09/01/12, Pool # 398610 ................ 2,839,326
742,212 7.00%, 08/01/13, Pool # 434416 ................ 758,214
3,000,000 5.50%, 05/25/14 ............................... 2,922,423
242,813 6.50%, 01/01/26, Pool # 303676 ................ 241,521
------------
13,310,683
------------
Federal Home Loan
Mortgage Corporation - 1.51%
$4,500,000 5.38%, 03/02/01 ............................... 4,504,680
2,000,000 5.00%, 01/15/04 ............................... 1,947,620
1,000,000 7.74%, 06/01/04 ............................... 1,001,880
1,000,000 7.05%, 06/08/05 ............................... 1,008,580
269,312 7.00%, 10/01/13, Pool # E72863 ................ 275,202
727,038 7.00%, 11/01/13, Pool # E00586 ................ 742,938
968,411 7.00%, 12/01/28, Pool # C00698 ................ 982,327
748,000 7.00%, 04/01/29, Pool # C00756 ................ 758,749
------------
11,221,976
------------
Federal Farm Credit Bank - 0.53%
3,975,000 5.13%, 04/02/01 ............................... 3,962,995
------------
Total U.S. Government
and Agency Obl 154,732,409
------------
(Cost $154,285,393)
CORPORATE NOTES AND BONDS - 16.75%
2,500,000 Ahold Finance USA, Inc.
6.25%, 05/01/09................................ 2,459,375
2,500,000 American Express Credit Corp.
6.13%, 06/15/00 ............................... 2,514,300
1,000,000 American Express Co.
Senior Bond
6.75%, 06/23/04................................ 1,030,000
200,000 American Telephone & Telegraph Corp.
7.00%, 05/15/05................................ 208,250
1,000,000 Arizona Public Service Co.
First Mortgage
7.63%, 06/15/99................................ 1,002,500
3,250,000 Associates Corp. of North America
Senior Note
6.63%, 05/15/01................................ 3,310,938
1,000,000 Bank One Milwaukee, MTN
6.35%, 03/19/01................................ 1,012,500
675,000 Becton Dickinson
7.00%, 08/01/27................................ 685,969
1,900,000 Becton Dickinson
6.70%, 08/01/28................................ 1,878,625
200,000 Burlington Northern Santa Fe
6.88%, 02/15/16................................ 200,000
1,000,000 Caterpillar Financial Services Corp.
Series F, MTN
5.47%, 09/12/01................................ 995,000
1,700,000 Caterpillar Financial
Services Corp., MTN
6.00%, 05/23/02................................ 1,708,500
1,200,000 Citicorp, Senior MTN
8.63%, 11/01/04................................ 1,216,500
2,000,000 Coca-Cola Enterprises, Inc.
6.38%, 08/01/01................................ 2,027,500
1,000,000 Coca-Cola Enterprises, Inc.
7.13%, 08/01/17................................ 1,041,250
2,300,000 Colgate-Palmolive Co.
Series C, MTN
5.27%, 12/01/03 ............................... 2,245,375
See Notes to Financial Statements.
22
<PAGE>
Asset Allocation Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Par Value Value
- ---------- ------------
CORPORATE NOTES AND BONDS (continued)
$1,000,000 Commercial Credit Co.
5.75%, 07/15/00 ............................... $ 1,004,020
1,400,000 Commercial Credit Co.
6.50%, 08/01/04 ............................... 1,417,500
3,500,000 Diageo Capital, Plc
6.00%, 03/27/03 ............................... 3,503,500
1,000,000 Emerson Electric Co.
5.85%, 03/15/09 ............................... 987,410
1,000,000 First Union Corp.
6.60%, 06/15/00 ............................... 1,010,000
1,250,000 Ford Motor Credit Co.
6.85%, 08/15/00 ............................... 1,270,400
250,000 Ford Motor Credit Co.
6.25%, 11/08/00 ............................... 252,460
500,000 Ford Motor Credit Co.
7.00%, 09/25/01 ............................... 514,375
1,000,000 Ford Motor Credit Co.
Senior Note
6.50%, 02/28/02 ............................... 1,018,750
1,000,000 G.E. Capital Corp., Series A, MTN
5.92%, 04/03/01 ............................... 1,008,750
500,000 G.E. Capital Corp., Series A, MTN
5.50%, 04/15/02 ............................... 498,000
4,000,000 General Motors Acceptance Corp.
6.88%, 07/15/01 ............................... 4,100,000
1,000,000 General Motors Acceptance Corp.
7.00%, 09/15/02 ............................... 1,032,500
250,000 GTE Corp.
6.46%, 04/15/08 ............................... 253,325
1,000,000 GTE North, Inc., Series H
5.65%, 11/15/08 ............................... 956,250
3,000,000 Heinz (H.J.) Co., Euro Bond
5.75%, 02/03/03 ............................... 2,979,600
750,000 Heinz (H.J.) Co.
6.88%, 01/15/03 ............................... 776,250
500,000 Hershey Foods Corp.
6.70%, 10/01/05 ............................... 521,250
2,300,000 Hershey Foods Corp.
7.20%, 08/15/27 ............................... 2,466,750
1,000,000 Hertz Corp., Senior Note
7.00%, 04/15/01 ............................... 1,018,750
750,000 Illinois Tool Works
5.75%, 03/01/09 ............................... 734,037
2,000,000 Ingersoll-Rand, Senior Note
6.26%, 02/15/01 ............................... 2,022,500
1,000,000 International Business
Machines Corp.
6.38%, 06/15/00 ............................... 1,011,250
1,355,000 International Business
Machines Corp.
5.38%, 02/01/09 ............................... 1,285,556
1,000,000 International Business
Machines Corp.
7.50%, 06/15/13 ............................... 1,116,250
2,000,000 International Business
Machines Corp.
6.22%, 08/01/27 ............................... 2,050,000
500,000 International Paper Co.
7.00%, 06/01/01 ............................... 506,875
1,000,000 Keycorp Institutional Capital Corp.
Series A
6.63%, 06/15/29
Putable 06/01/99 (A) .......................... 1,000,840
1,500,000 Lockheed Martin Corp.
6.85%, 05/15/01 ............................... 1,526,250
500,000 May Department Stores Co.
6.88%, 11/01/05 ............................... 515,000
2,025,000 McDonald's Corp., Senior MTN
5.95%, 01/15/08 ............................... 2,014,875
500,000 McDonald's Corp.
8.88%, 04/01/11 ............................... 611,250
3,550,000 MCI WorldCom, Inc.
6.13%, 04/15/02 ............................... 3,567,750
500,000 Mead Corp.
6.84%, 03/01/37 ............................... 524,375
850,000 Merck & Co.
6.40%, 03/01/28 ............................... 831,937
2,500,000 Minnesota Mining & Manufacturing
6.38%, 02/15/28 ............................... 2,418,750
1,000,000 National City Bank of Kentucky
6.30%, 02/15/11 ............................... 968,750
1,000,000 National Rural Utilities
Cooperative Finance Corp.
6.38%, 10/15/04 ............................... 1,026,250
2,500,000 National Rural Utilities
Cooperative Finance Corp.
6.13%, 01/15/05 ............................... 2,515,625
1,025,000 National Rural Utilities
Cooperative Finance Corp.
5.75%, 11/01/08 ............................... 994,250
1,000,000 NationsBank Corp.
7.00%, 09/15/01 ............................... 1,027,500
2,500,000 NationsBank of North America
5.86%, 05/26/00 ............................... 2,509,375
500,000 Northern Telecom, Ltd.
6.00%, 09/01/03 ............................... 501,250
1,000,000 Pennsylvania Power & Light Co.
6.88%, 02/01/03 ............................... 1,030,000
1,000,000 PepsiCo, Inc.
5.75%, 01/01/03 ............................... 997,500
1,620,000 PepsiCo, Inc.
5.75%, 01/15/08 ............................... 1,577,475
1,590,000 Pitney Bowes Credit Corp.
6.63%, 06/01/02 ............................... 1,631,738
5,000,000 Pitney Bowes, Inc.
5.50%, 04/15/04 ............................... 4,937,500
1,800,000 Potomac Electric Power Co.
6.50%, 09/15/05 ............................... 1,827,000
2,000,000 Potomac Electric Power Co.
6.25%, 10/15/07 ............................... 2,017,500
325,000 Rite Aid Corp.
6.70%, 12/15/01 ............................... 328,656
1,000,000 Service Corp. International
7.38%, 04/15/04 ............................... 1,021,250
3,500,000 Sherwin-Williams Co.
6.50%, 02/01/02 ............................... 3,556,875
See Notes to Financial Statements.
23
<PAGE>
Asset Allocation Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Par Value Value
- ---------- ------------
CORPORATE NOTES AND BONDS (continued)
$1,900,000 Sherwin-Williams Co.
6.85%, 02/01/07 ............................... $ 1,985,500
1,000,000 Southwest Airlines Co.
8.75%, 10/15/03 ............................... 1,102,500
1,500,000 Sprint Capital Corp.
5.88%, 05/01/04 ............................... 1,485,000
1,000,000 Sprint Capital Corp.
6.90%, 05/01/19 ............................... 985,000
1,000,000 Suntrust Bank of Atlanta
7.25%, 09/15/06 ............................... 1,045,000
300,000 Suntrust Bank of Central Florida, MTN
6.90%, 07/01/07 ............................... 314,250
1,000,000 Sysco Corp.
7.25%, 04/15/07 ............................... 1,067,500
1,250,000 Sysco Corp.
6.50%, 08/01/28 ............................... 1,212,500
3,250,000 Tele-Communication, Inc.
7.25%, 08/01/05 ............................... 3,440,937
1,000,000 Texaco Capital, Inc.
8.50%, 02/15/03 ............................... 1,088,750
500,000 Texas Utilities Electric Co.
7.38%, 11/01/99 ............................... 505,000
1,000,000 United Technologies Corp.
6.70%, 08/01/28 ............................... 996,250
2,000,000 United Telecommunications, Inc.
9.50%, 04/01/03 ............................... 2,240,000
2,000,000 Wachovia Bank
6.30%, 03/15/01 ............................... 2,020,000
2,000,000 Wal-Mart Stores
6.75%, 05/15/02 ............................... 2,060,000
600,000 Xerox Corp.
8.13%, 04/15/02 ............................... 636,000
2,000,000 Xerox Corp.
5.50%, 11/15/03 ............................... 1,970,000
------------
Total Corporate Notes and Bonds ............... 124,486,598
------------
(Cost $124,431,466)
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES - 2.28%
2,950,000 Chemical Master Credit Card
Trust 1, Class A
5.55%, 09/15/03 ............................... 2,950,914
1,000,000 Citibank Credit Card Master Trust 1
Series 1999-1, Class A
5.50%, 02/15/06 ............................... 983,120
4,500,000 Discover Card Master Trust 1
Series 1999-1, Class A
5.30%, 08/15/04 ............................... 4,446,428
1,660,000 Discover Card Master Trust 1
Series 1999-4, Class A
5.65%, 11/16/04 ............................... 1,662,594
2,500,000 Ford Credit Auto Owner Trust
Series 1999-A, Class A-4
5.31%, 11/15/01 ............................... 2,497,713
1,400,000 National Rural Utilities
Cooperative Finance Corp.
Collateral Trust
5.50%, 01/15/05 ............................... 1,370,250
26,903 NationsBank Auto Owner Trust
Series 1996-A, Class A-3
6.38%, 07/15/00 ............................... 26,911
23,429 Premier Auto Trust
Series 1996-3, Class A-3
6.50%, 03/06/00 ............................... 23,429
1,840,000 Premier Auto Trust
Series 1999-2, Class A-4
5.59%, 02/09/04 ............................... 1,839,494
497,708 Prudential Home Mortgage Securities
Class 1996-7, Series A-1,
CMO 6.75%, 06/25/11 ........................... 499,261
630,010 Rural Housing Trust
Series 1987-1, Class 1-D, CMO
6.33%, 04/01/26 ............................... 629,223
------------
Total Asset-Backed and
Mortgage-Backed Securities .................... 16,929,337
------------
(Cost $16,945,639)
Shares
- ----------
CONVERTIBLE PREFERRED STOCK - 0.20%
30,000 Loral Space and
Communications, Ltd.,
Series C, 6.00% (A) ........................... 1,507,500
------------
Total Convertible Preferred Stock ............. 1,507,500
------------
(Cost $1,627,725)
Par Value
- ---------
REPURCHASE AGREEMENT - 10.46%
$77,751,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $77,782,554
(Collateralized by U.S. Treasury Bond
7.50%, Due 11/15/16;
Total Par $65,275,000
Market Value $81,554,080) ..................... 77,751,000
------------
Total Repurchase Agreement .................... 77,751,000
------------
(Cost $77,751,000)
Total Investments - 99.45% .................................. 739,077,380
------------
(Cost $600,370,839)
Net Other Assets and Liabilities - 0.55% 4,072,798
------------
Net Assets - 100.00%......................................... $743,150,178
============
- ----------
* Non-income producing security.
(A) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may only be
resold, in transactions exempt from registration, to qualified
institutional buyers. At April 30, 1999, these securities amounted
to $2,508,340, or 0.34% of net assets.
ADR American Depositary Receipt
CMO Collateralized Mortgage Obligation
Euro Bond Euro Dollar Denominated
MTN Medium Term Note
See Notes to Financial Statements.
24
<PAGE>
Equity Income Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 85.23%
Consumer Staples - 18.23%
265,000 Becton Dickinson & Co. ........................ $ 9,854,687
190,000 Bestfoods ..................................... 9,535,625
100,000 Gillette Co. .................................. 5,218,750
80,000 Lilly (Eli) & Co. ............................. 5,890,000
85,000 Merck & Co., Inc. ............................. 5,971,250
310,000 PepsiCo, Inc. ................................. 11,450,625
51,000 Pfizer, Inc. .................................. 5,868,188
65,000 Procter & Gamble Co. .......................... 6,097,812
95,000 Warner-Lambert Co. ............................ 6,454,063
------------
66,341,000
------------
Finance - 14.90%
134,000 Associates First Capital Corp. ................ 5,937,875
110,000 Bank One Corp. ................................ 6,490,000
85,000 Fannie Mae .................................... 6,029,687
85,000 First Union Corp. ............................. 4,706,875
215,000 Hartford Financial Services Group, Inc. ....... 12,671,563
135,000 Highwoods Properties, Inc., REIT .............. 3,476,250
90,000 Spieker Properties, Inc., REIT ................ 3,532,500
125,000 Washington Mutual, Inc. ....................... 5,140,625
145,000 Wells Fargo & Co. ............................. 6,262,187
------------
54,247,562
------------
Energy - 12.39%
132,000 Consolidated Natural Gas Co. .................. 7,854,000
96,000 Exxon Corp. ................................... 7,974,000
162,000 Halliburton Co. ............................... 6,905,250
77,000 Mobil Corp. ................................... 8,065,750
104,000 Schlumberger Ltd. ............................. 6,643,000
122,000 Texaco, Inc. .................................. 7,655,500
------------
45,097,500
------------
Technology - 11.06%
315,000 Automatic Data Processing, Inc. ............... 14,017,500
110,000 Hewlett-Packard Co. ........................... 8,676,250
150,000 Intel Corp. ................................... 9,178,125
143,000 Xerox Corp. ................................... 8,401,250
------------
40,273,125
------------
Utilities - 10.55%
127,500 American Telephone & Telegraph Corp. .......... 6,438,750
205,000 Frontier Corp. ................................ 11,313,438
125,000 SBC Communications, Inc. ...................... 7,000,000
165,000 Texas Utilities Co. ........................... 6,558,750
300,000 Washington Gas Light Co. ...................... 7,068,750
------------
38,379,688
------------
Consumer Cyclical - 9.95%
132,000 Dayton Hudson Corp. ........................... 8,885,250
160,000 Ford Motor Co. ................................ 10,230,000
210,000 McDonald's Corp. .............................. 8,898,750
305,000 Walgreen Co. .................................. 8,196,875
------------
36,210,875
------------
Capital Goods and Construction - 5.20%
180,000 Boeing Co. .................................... 7,312,500
110,000 General Electric Co. .......................... 11,605,000
------------
18,917,500
------------
Basic Materials - 2.95%
160,000 Weyerhauser Co. ............................... 10,740,000
------------
Total Common Stocks ........................... 310,207,250
------------
(Cost $221,003,229)
Par Value
- ----------
U.S. GOVERNMENT OBLIGATIONS - 1.10%
U.S. Treasury Bond - 0.55%
$1,700,000 7.50%, 11/15/16 ............................... 1,992,570
------------
U.S. Treasury Note - 0.55%
2,000,000 5.50%, 04/15/00 ............................... 2,010,580
------------
Total U.S. Government
Obligations ................................... 4,003,150
------------
(Cost $3,662,781)
REPURCHASE AGREEMENT - 12.60%
45,877,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $45,895,618
(Collateralized by U.S. Treasury Bond
8.50%, Due 2020;
Total Par $35,155,000
Market Value $46,800,094) ..................... 45,877,000
------------
Total Repurchase Agreement .................... 45,877,000
------------
(Cost $45,877,000)
Total Investments - 98.93%................................... 360,087,400
------------
(Cost $270,543,010)
Net Other Assets and Liabilities - 1.07%..................... 3,893,289
------------
Net Assets - 100.00%......................................... $363,980,689
============
- ----------
REIT Real Estate Investment Trust.
See Notes to Financial Statements.
25
<PAGE>
Growth and Income Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 90.59%
Consumer Staples - 17.40%
145,450 American Home Products Corp. .................. $ 8,872,450
118,000 Anheuser-Busch Cos., Inc. ..................... 8,628,750
128,000 Bestfoods ..................................... 6,424,000
180,300 Elan Corp. Plc, ADR* .......................... 9,285,450
170,000 Forest Laboratories, Inc.* .................... 7,565,000
225,000 Genzyme Corp.* ................................ 8,493,750
155,000 Hannaford Brothers Co. ........................ 6,761,875
475,000 Humana, Inc.* ................................. 6,471,875
140,000 International Flavors &
Fragances, Inc. ............................... 5,530,000
94,000 Johnson & Johnson ............................. 9,165,000
140,000 Merck & Co., Inc. ............................. 9,835,000
190,000 PepsiCo, Inc. ................................. 7,018,125
120,000 Pharmacia & Upjohn, Inc. ...................... 6,720,000
152,000 Stryker Corp. ................................. 9,300,500
------------
110,071,775
------------
Technology - 14.37%
122,000 Avnet, Inc. ................................... 5,177,375
120,000 Cisco Systems, Inc.* .......................... 13,687,500
198,000 Compaq Computer Corp. ......................... 4,417,875
87,000 Computer Sciences Corp.* ...................... 5,181,937
226,000 Electronic Data Systems Corp. ................. 12,147,500
163,000 Harris Corp. .................................. 5,633,688
154,000 Hewlett-Packard Co. ........................... 12,146,750
50,000 International Business
Machines Corp. ................................ 10,459,375
122,000 Motorola, Inc. ................................ 9,775,250
120,000 Texas Instruments, Inc. ....................... 12,255,000
------------
90,882,250
------------
Finance - 13.36%
172,000 Bank of America Corp. ......................... 12,384,000
195,000 Bank One Corp. ................................ 11,505,000
96,000 Chase Manhattan Corp. ......................... 7,944,000
85,000 Chubb Corp. ................................... 5,036,250
132,000 Citigroup, Inc. ............................... 9,933,000
150,000 Countrywide Credit Industries, Inc. ........... 6,796,875
110,000 Hartford Financial
Services Group, Inc. .......................... 6,483,125
68,000 Lincoln National Corp. ........................ 6,532,250
54,000 Morgan (J.P.) & Co., Inc. ..................... 7,276,500
245,000 Wells Fargo & Co. ............................. 10,580,937
------------
84,471,937
------------
Consumer Cyclical - 12.18%
180,000 Circuit City Stores ........................... 11,070,000
392,000 Cooper Tire & Rubber Co. ...................... 8,599,500
90,000 Eastman Kodak Co. ............................. 6,716,250
98,000 Ford Motor Co. ................................ 6,265,875
190,000 Lowe's Cos., Inc. ............................. 10,022,500
180,000 McDonald's Corp. .............................. 7,627,500
585,000 Office Depot, Inc.* ........................... 12,870,000
130,000 Penney (J.C.) Co., Inc. ....................... 5,931,250
255,000 Sherwin-Williams Co. .......................... 7,936,875
------------
77,039,750
------------
Utilities - 8.44%
159,000 American Telephone &
Telegraph Corp. ............................... 8,029,500
205,500 Century Telephone Enterprises, Inc. ........... 8,271,375
199,000 Entergy Corp. ................................. 6,218,750
122,000 GTE Corp. ..................................... 8,166,375
160,000 MCI WorldCom, Inc.* ........................... 13,150,000
170,000 SBC Communications, Inc. ...................... 9,520,000
------------
53,356,000
------------
Energy - 8.25%
90,000 Atlantic Richfield Co. ........................ 7,554,375
86,016 BP Amoco, Plc, ADR ............................ 9,735,936
205,000 Halliburton Co. ............................... 8,738,125
160,000 Kerr-McGee Corp. .............................. 6,780,000
97,000 Mobil Corp. ................................... 10,160,750
144,400 Schlumberger, Ltd. ............................ 9,223,550
------------
52,192,736
------------
Capital Goods and Construction - 7.86%
176,500 Boeing Co. .................................... 7,170,312
64,000 General Electric Co. .......................... 6,752,000
76,500 Honeywell, Inc. ............................... 7,248,375
136,000 Hubbell, Inc., Class A ........................ 6,069,000
111,316 Tyco International Ltd. ....................... 9,044,425
237,625 Waste Management, Inc. ........................ 13,425,813
------------
49,709,925
------------
Basic Materials - 5.68%
38,100 Crown Cork & Seal, Inc. ....................... 1,238,250
160,000 Goodrich (B.F.) Co. ........................... 6,360,000
84,000 Minnesota Mining &
Manufacturing Co. ............................. 7,476,000
245,000 Pall Corp. .................................... 4,517,188
190,000 Praxair, Inc. ................................. 9,832,500
200,000 Sigma Aldrich Corp. ........................... 6,500,000
------------
35,923,938
------------
See Notes to Financial Statements.
26
<PAGE>
Growth and Income Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Transportaion - 3.05%
101,500 British Airways Plc, ADR ...................... $ 8,043,875
168,000 Burlington Northern Santa Fe Corp. ............ 6,153,000
85,000 Union Pacific Corp. ........................... 5,100,000
------------
19,296,875
------------
Total Common Stocks ........................... 572,945,186
------------
(Cost $423,760,742)
CONVERTIBLE PREFERRED STOCKS - 1.57%
135,000 Crown Cork & Seal Co., Inc., 4.50% ............ 4,092,187
37,000 Loral Space and
Communications, Ltd., 6.00% ................... 1,859,250
80,000 Loral Space and
Communications, Ltd.,
Series C, 6.00% (A) ........................... 4,020,000
------------
Total Convertible Preferred Stocks ............ 9,971,437
------------
(Cost $12,414,478)
Par Value Value
- ---------- ------------
REPURCHASE AGREEMENT - 8.01%
$50,656,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $50,676,558
(Collateralized by U.S. Treasury Bond
7.25%, Due 05/15/16;
Total Par $43,560,000
Market Value $53,097,628) ..................... $ 50,656,000
------------
Total Repurchase Agreement .................... 50,656,000
------------
(Cost $50,656,000)
Total Investments - 100.17%.................................. 633,572,623
------------
(Cost $486,831,220)
Net Other Assets and Liabilities - (0.17)%................... (1,100,309)
------------
Net Assets - 100.00%......................................... $632,472,314
=============
- ----------
* Non-income producing security.
(A) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may only be resold, in
transactions exempt from registration, to qualified institutional buyers.
At April 30, 1999, these securities amounted to $4,020,000, or 0.64% of net
assets.
ADR American Depositary Receipt
See Notes to Financial Statements.
27
<PAGE>
Strategic Equity Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 92.23%
Energy - 19.80%
40,000 Anadarko Petroleum Corp. ...................... $ 1,517,500
60,000 Baker Hughes, Inc. ............................ 1,792,500
64,000 BJ Services Co.* .............................. 1,712,000
45,000 Burlington Resources, Inc. .................... 2,072,812
35,000 Coastal Corp.* ................................ 1,338,750
40,000 Cooper Cameron Corp.* ......................... 1,545,000
21,000 Duke Energy Corp. ............................. 1,176,000
40,000 Halliburton Co. ............................... 1,705,000
35,000 National Fuel Gas Co. ......................... 1,531,250
50,000 Noble Affiliates, Inc. ........................ 1,603,125
22,000 Schlumberger, Ltd. ............................ 1,405,250
------------
17,399,187
------------
Technology - 14.96%
91,000 Cambridge Technology Partners, Inc.* .......... 1,313,812
77,000 Diebold, Inc. ................................. 1,852,813
24,000 Electronic Data Systems Co. ................... 1,290,000
20,000 Hewlett Packard Co. ........................... 1,577,500
9,000 International Business
Machines Corp. ................................ 1,882,687
100,000 Molex, Inc., Class A .......................... 2,887,500
40,000 3Com Corp.* ................................... 1,045,000
22,000 Xerox Corp. ................................... 1,292,500
------------
13,141,812
------------
Finance - 13.61%
30,000 Bank One Corp. ................................ 1,770,000
13,000 Chase Manhattan Corp. ......................... 1,075,750
21,000 Equity Office Properties REIT ................. 578,813
13,000 Equity Residential Properties REIT ............ 601,250
25,000 Hartford Financial
Services Group, Inc. .......................... 1,473,437
22,000 MBIA, Inc. .................................... 1,479,500
15,000 Speiker Properties, Inc., REIT ................ 588,750
24,000 UNUM Corp. .................................... 1,311,000
75,000 Washington Mutual, Inc. ....................... 3,084,375
------------
11,962,875
------------
Consumer Staples - 13.45%
28,000 Becton Dickinson & Co. ........................ 1,041,250
50,000 ConAgra, Inc. ................................. 1,243,750
44,000 Elan Corp. Plc, ADR* .......................... 2,266,000
30,000 Genzyme Corp.* ................................ 1,132,500
20,000 Hannaford Brothers Co. ........................ 872,500
25,000 Kimberly Clark Corp. .......................... 1,532,813
60,000 Manpower, Inc. ................................ 1,357,500
12,000 Merck & Co., Inc. ............................. 843,000
25,000 Stryker Corp. ................................. 1,529,688
------------
11,819,001
------------
Consumer Cyclical - 10.20%
200,000 CompUSA, Inc.* ................................ 1,400,000
80,000 Cooper Tire & Rubber Co. ...................... 1,755,000
17,000 Dana Corp. .................................... 801,125
15,000 Eastman Kodak Co. ............................. 1,119,375
87,000 Office Depot, Inc.* ........................... 1,914,000
23,000 McKesson HBOC, Inc. ........................... 805,000
50,000 Rite Aid Corp. ................................ 1,165,625
------------
8,960,125
------------
Capital Goods and Construction - 8.94%
30,000 AES Corp.* .................................... 1,500,000
20,000 Emerson Electric Co. .......................... 1,290,000
40,000 Hubbell, Inc., Class B ........................ 1,912,500
55,000 Raychem Corp. ................................. 1,454,063
30,000 Waste Management, Inc. ........................ 1,695,000
------------
7,851,563
------------
Basic Materials - 6.00%
50,000 Crown Cork & Seal Co., Inc. ................... 1,625,000
24,000 Goodrich (B.F.) Co. ........................... 954,000
12,000 Minnesota Mining &
Manufacturing Co. ............................. 1,068,000
50,000 Sigma Aldrich Corp. ........................... 1,625,000
------------
5,272,000
------------
Transportation - 2.95%
35,000 Burlington Northern Santa Fe Corp. ............ 1,281,875
40,000 Norfolk Southern Corp. ........................ 1,307,500
------------
2,589,375
------------
See Notes to Financial Statements.
28
<PAGE>
Strategic Equity Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Utilities - 2.32%
21,000 AT&T Corp. .................................... $ 1,060,500
50,000 Loral Space and
Communications, Ltd.* ......................... 975,000
------------
2,035,500
------------
Total Common Stocks ........................... 81,031,438
------------
(Cost $70,656,522)
Par Value
- ----------
REPURCHASE AGREEMENT - 9.94%
$8,729,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $8,732,543
(Collateralized by U.S. Treasury Bond
7.50%, Due 11/15/16;
Total Par $7,330,000
Market Value $9,158,045) ...................... 8,729,000
------------
Total Repurchase Agreement .................... 8,729,000
------------
(Cost $8,729,000)
Total Investments - 102.17%.................................. 89,760,438
------------
(Cost $79,385,522)
Net Other Assets and Liabilities - (2.17)%................... (1,908,674)
------------
Net Assets - 100.00%......................................... $ 87,851,764
============
- ----------
* Non-income producing security.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
29
<PAGE>
Equity Value Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 96.25%
Consumer Cyclical - 25.84%
145,500 Albertson's, Inc. ............................. $ 7,493,250
374,100 Brinker International, Inc.* .................. 10,334,512
386,000 Carnival Corp., Class A ....................... 15,922,500
302,000 Fleetwood Enterprises, Inc. ................... 7,455,625
143,750 Gap, Inc. ..................................... 9,568,359
60,700 General Motors Corp. .......................... 5,398,506
104,300 Harley-Davidson, Inc. ......................... 6,218,888
424,000 Jones Apparel Group, Inc.* .................... 13,992,000
459,900 Kaufman & Broad Home Corp. .................... 11,181,319
319,400 Lowe's Cos., Inc. ............................. 16,848,350
388,050 Office Depot, Inc.* ........................... 8,537,100
112,500 Ross Stores, Inc. ............................. 5,167,969
10,000 Safeskin Corp.* ............................... 97,500
151,600 Sara Lee Corp. ................................ 3,373,100
603,600 Shaw Industries, Inc.* ........................ 10,940,250
511,000 TJX Cos., Inc. ................................ 17,022,687
140,000 Tommy Hilfiger Corp.* ......................... 9,782,500
------------
159,334,415
------------
Finance - 21.37%
83,900 Bank of America Corp. ......................... 6,040,800
251,490 Bank One Corp. ................................ 14,837,910
96,000 BankBoston Corp. .............................. 4,704,000
126,000 Bear Stearns Cos., Inc. ....................... 5,874,750
106,000 Chase Manhattan Corp. ......................... 8,771,500
23,250 Citigroup, Inc. ............................... 1,749,563
200,000 Countrywide Credit Industries, Inc. ........... 9,062,500
138,300 Fannie Mae .................................... 9,810,656
163,700 First Union Corp. ............................. 9,064,887
150,000 Household International, Inc. ................. 7,546,875
150,000 Marsh & McLennan Cos., Inc. ................... 11,484,375
106,100 MBIA, Inc. .................................... 7,135,225
481,800 MBNA Corp. .................................... 13,580,738
38,400 Mellon Bank Corp. ............................. 2,853,600
60,500 Merrill Lynch & Co., Inc. ..................... 5,078,219
259,850 SLM Holding Corp. ............................. 11,092,347
50,000 St. Paul Cos., Inc. ........................... 1,434,375
30,000 UNUM Corp. .................................... 1,638,750
------------
131,761,070
------------
Technology - 18.12%
69,000 Altera Corp.* ................................. 4,985,250
71,400 Applied Materials, Inc.* ...................... 3,828,825
287,200 Boston Scientific Corp.* ...................... 12,223,950
458,000 Cadence Design Systems, Inc.* . ............... 6,211,625
437,100 Cambridge Technology Partners, Inc.* .......... 6,310,631
48,725 Cisco Systems, Inc.* .......................... 5,557,695
358,021 Compaq Computer Corp. ......................... 7,988,344
228,000 Computer Associates
International, Inc. ........................... 9,732,750
62,700 EMC Corp.* .................................... 6,830,381
207,400 Intel Corp. ................................... 12,690,287
23,300 International Business
Machines Corp. ................................ 4,874,069
250,000 Oracle Corp.* ................................. 6,765,625
421,100 Parametric Technology Corp.* .................. 5,500,619
150,000 PeopleSoft, Inc.* ............................. 2,053,125
321,100 Sterling Commerce, Inc.* ...................... 10,054,444
55,600 Tellabs, Inc.* ................................ 6,091,675
------------
111,699,295
------------
Consumer Staples - 8.74%
87,200 Abbott Laboratories ........................... 4,223,750
44,600 Biomet, Inc. .................................. 1,828,600
150,000 Bristol-Myers Squibb Co. ...................... 9,534,375
200,000 HCR Manor Care, Inc.* ......................... 5,550,000
698,900 HEALTHSOUTH Corp.* ............................ 9,391,469
91,100 Heinz (H.J.) Co. .............................. 4,253,231
454,600 Rexall Sundown, Inc.* ......................... 7,870,263
49,200 Schering-Plough Corp. ......................... 2,376,975
126,500 Wellpoint Health Networks, Inc.* .............. 8,886,625
------------
53,915,288
------------
Capital Goods and Construction - 7.13%
114,125 Clayton Homes, Inc. ........................... 1,269,641
151,600 Ingersoll-Rand Co. ............................ 10,488,825
15,400 Johnson Controls, Inc. ........................ 1,121,312
232,400 Lockheed Martin Corp. ......................... 10,007,725
100,900 Owens-Corning ................................. 3,594,563
180,000 PACCAR, Inc. .................................. 10,080,000
31,900 United Technologies Corp. ..................... 4,621,512
200,000 Worthington Industries, Inc. .................. 2,762,500
------------
43,946,078
------------
See Notes to Financial Statements.
30
<PAGE>
Equity Value Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Energy - 6.99%
400,000 Baker Hughes, Inc. ............................ $ 11,950,000
226,000 Coastal Corp. ................................. 8,644,500
120,000 Diamond Offshore Drilling, Inc. ............... 3,967,500
60,000 Enron Corp. ................................... 4,515,000
350,000 PG&E Corp. .................................... 10,871,875
62,800 Phillips Petroleum Co. ........................ 3,179,250
------------
43,128,125
------------
Utilities - 6.43%
80,800 American Telephone & Telegraph Corp. .......... 4,080,400
139,600 Bell Atlantic Corp. ........................... 8,044,450
155,900 FPL Group, Inc. ............................... 8,788,862
52,000 GTE Corp. ..................................... 3,480,750
111,900 Public Service Enterprise Group, Inc. ......... 4,476,000
98,800 SBC Communications, Inc. ...................... 5,532,800
100,000 US WEST Communications Group .................. 5,231,250
------------
39,634,512
------------
Transportation - 1.63%
45,200 AMR Corp.* .................................... 3,155,525
4,000 Hunt (J.B.) Transport Services, Inc. .......... 83,250
200,000 Northwest Airlines Corp.* ..................... 6,812,500
------------
10,051,275
------------
Total Common Stocks ........................... 593,470,058
------------
(Cost $470,090,859)
Par Value Value
- ---------- ------------
REPURCHASE AGREEMENT - 3.90%
$24,039,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $24,048,756
(Collateralized by U.S. Treasury Bond
8.50%, Due 02/15/20;
Total Par $18,420,000
Market Value $24,841,685) ..................... $ 24,039,000
------------
Total Repurchase Agreement .................... 24,039,000
------------
(Cost $24,039,000)
Total Investments - 100.15%.................................. 617,509,058
------------
(Cost $494,129,859)
Net Other Assets and Liabilities - (0.15)%................... (952,035)
------------
Net Assets - 100.00%......................................... $616,557,023
============
- ----------
* Non-income producing security.
See Notes to Financial Statements.
31
<PAGE>
Equity Growth Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 94.41%
Technology - 22.79%
200,000 Applied Materials, Inc.* ...................... $ 10,725,000
605,000 Automatic Data Processing, Inc. ............... 26,922,500
225,000 Cisco Systems, Inc.* .......................... 25,664,063
270,000 Dell Computer Corp.* .......................... 11,120,625
229,000 EMC Corp.* .................................... 24,946,688
155,000 Hewlett Packard Co. ........................... 12,225,625
150,000 Honeywell, Inc.* .............................. 14,212,500
237,500 Intel Corp. ................................... 14,532,031
110,000 International Business
Machines Corp. ................................ 23,010,625
290,000 Lucent Technologies, Inc. ..................... 17,436,250
325,000 Maxim Integrated Products, Inc.* .............. 18,200,000
250,000 Microsoft Corp.* .............................. 20,328,125
190,400 Nokia Corp., Class A, ADR ..................... 14,125,300
200,000 Nortel Networks Corp.* ........................ 13,637,500
170,700 Tandy* ........................................ 12,365,081
160,000 Tellabs, Inc.* ................................ 17,530,000
327,900 Teradyne, Inc.* ............................... 15,472,781
115,000 Texas Instruments, Inc. ....................... 11,744,375
400,000 Xerox Corp. ................................... 23,500,000
------------
327,699,069
------------
Finance - 15.07%
300,000 American International Group, Inc. ............ 35,231,250
660,000 Associates First Capital Corp., Class A ....... 29,246,250
100,000 Capital One Financial Corp.* .................. 17,368,750
350,000 Chase Manhattan Corp. ......................... 28,962,500
425,000 Citigroup, Inc. ............................... 31,981,250
500,000 Cornerstone Properties, Inc., REIT ............ 8,156,250
350,000 Fannie Mae .................................... 24,828,125
352,200 UNUM Corp. .................................... 19,238,925
500,000 Wells Fargo Co. ............................... 21,593,750
------------
216,607,050
------------
Consumer Staples - 14.15%
400,000 Abbott Laboratories ........................... 19,375,000
300,000 American Home Products Corp. .................. 18,300,000
400,800 Becton Dickinson & Co. ........................ 14,904,750
250,000 Bristol-Myers Squibb Co. ...................... 15,890,625
345,000 Elan Corp. Plc, ADR* .......................... 17,767,500
350,000 Guidant Corp. ................................. 18,790,625
150,000 Johnson & Johnson ............................. 14,625,000
176,400 Lilly (Eli) & Co. ............................. 12,987,450
200,000 Merck & Co., Inc. ............................. 14,050,000
350,000 PepsiCo, Inc. ................................. 12,928,125
120,000 Pfizer, Inc. .................................. 13,807,500
175,000 Procter & Gamble Co. .......................... 16,417,188
200,000 Warner-Lambert Co. ............................ 13,587,500
------------
203,431,263
------------
Capital Goods and Construction - 11.51%
60,000 AES Corp.* .................................... 3,000,000
225,000 AlliedSignal, Inc. ............................ 13,218,750
270,000 Dana Corp.* ................................... 12,723,750
350,000 Federal- Mogul Corp. .......................... 15,356,250
400,000 General Electric Co. .......................... 42,200,000
375,000 Tyco International Ltd. ....................... 30,468,750
200,000 United Technologies Corp. ..................... 28,975,000
344,800 Waste Management, Inc. ........................ 19,481,200
------------
165,423,700
------------
Consumer Cyclical - 9.57%
63,300 Circuit City Stores* .......................... 3,892,950
550,000 CVS Corp. ..................................... 26,193,750
300,000 Dayton Hudson Corp. ........................... 20,193,750
300,000 Ford Motor Co. ................................ 19,181,250
425,000 Home Depot, Inc. .............................. 25,473,438
400,000 McDonald's Corp. .............................. 16,950,000
770,000 TJX Cos., Inc. ................................ 25,650,625
------------
137,535,763
------------
Energy - 9.29%
600,000 Anadarko Petroleum Corp. ...................... 22,762,500
175,000 Atlantic Richfield Co.* ....................... 14,689,063
350,000 Cooper Cameron Corp.* ......................... 13,518,750
400,000 Halliburton Co. ............................... 17,050,000
390,000 Mobil Corp. ................................... 40,852,500
200,000 Schlumberger Ltd. ............................. 12,775,000
400,000 Transocean Offshore, Inc. ..................... 11,875,000
------------
133,522,813
------------
Broadcasting - 5.77%
550,000 American Tower Corp., Class A* ................ 11,653,125
125,000 AT&T Corp., Liberty Media Group* .............. 7,984,375
649,200 Capstar Broadcasting
Corp., Class A* ............................... 17,203,800
118,500 EchoStar Communications
Corp., Class A* ............................... 11,887,030
500,000 Infinity Broadcasting Corp.. Class A* ......... 13,843,750
250,000 MediaOne Group, Inc.* ......................... 20,390,625
------------
82,962,705
------------
Utilities - 4.07%
337,500 AT&T Corp. .................................... 17,043,750
300,000 MCI WorldCom, Inc.* ........................... 24,656,250
300,000 SBC Communications, Inc. ...................... 16,800,000
------------
58,500,000
------------
See Notes to Financial Statements.
32
<PAGE>
Equity Growth Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- --------------
Transportation - 1.21%
250,000 AMR Corp.* .................................... $ 17,453,125
--------------
Basic Materials - 0.98%
200,000 duPont (E.I.) deNemours & Co. ................. 14,125,000
--------------
Total Common Stocks ........................... 1,357,260,488
--------------
(Cost $831,996,308)
CONVERTIBLE PREFERRED STOCKS - 1.68%
140,000 AES Trust I, Series A ......................... 10,360,000
275,000 Loral Space and
Communications, Ltd.,
Series C, 6.00% (A) ........................... 13,818,750
--------------
Total Convertible Preferred Stocks ............ 24,178,750
--------------
(Cost $20,750,000)
Par Value Value
- ---------- --------------
REPURCHASE AGREEMENT - 2.90%
$41,747,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $41,763,942
(Collateralized by U.S. Treasury Bond
7.25%, Due 05/15/16;
Total Par $35,900,000
Market Value $42,586,375) ..................... $ 41,747,000
--------------
Total Repurchase Agreement .................... 41,747,000
--------------
(Cost $41,747,000)
Total Investments - 98.99%....................... 1,423,186,238
--------------
(Cost $894,493,308)
Net Other Assets and Liabilities - 1.01%......... 14,423,567
--------------
Net Assets - 100.00%............................. $1,437,609,805
==============
- ----------
* Non-income producing security.
(A) Securities exempt from registration pursuant to Rule 144A under the
Securities Act of 1933, as amended. These securities may only be resold,
in transactions exempt from registration, to qualified institutional
buyers. At April 30, 1999, these securities amounted to $13,818,750, or
0.96% of net assets.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
33
<PAGE>
International Equity Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 98.52%
Australia - 2.11%
760,884 Australia & New Zealand ....................... $ 6,027,073
870,328 Coca-Cola Amatil, Ltd. ........................ 4,130,638
------------
10,157,711
------------
Canada - 3.26%
222,800 BCE, Inc. ..................................... 10,162,003
96,800 Seagram Co., Ltd. ............................. 5,510,562
------------
15,672,565
------------
France - 8.52%
37,154 Groupe Danone ................................. 9,931,999
79,490 Suez Lyonnaise ................................ 13,522,250
80,041 Valeo SA ...................................... 6,765,705
46,343 Vivendi ....................................... 10,826,385
------------
41,046,339
------------
Germany - 5.31%
71,226 Daimler-Chrysler AG ........................... 7,032,803
154,546 Hoechst AG .................................... 7,323,704
85,230 Mannesmann AG ................................. 11,220,730
------------
25,577,237
------------
Greece - 0.51%
106,500 Hellenic Telecommunications
Organization SA (OTE) ......................... 2,470,717
------------
Hong Kong - 1.77%
676,000 Cheung Kong, Ltd. ............................. 6,148,626
262,000 Hutchison Whampoa, Ltd. ....................... 2,349,245
------------
8,497,871
------------
Hungary - 0.36%
46,270 Gedeon Richter, GDR ........................... 1,730,498
------------
Italy - 9.54%
2,865,460 Banca Nazionale del Lavoro* ................... 9,779,293
141,700 Banca Popolare di Bergamo ..................... 3,570,827
1,287,569 Unicredito Italiano SPA ....................... 6,530,138
1,026,881 Mediaset SPA .................................. 8,897,020
1,613,000 Telecom Italia SPA ............................ 17,162,258
------------
45,939,536
------------
Japan - 21.21%
233,000 Denso Corp. ................................... 4,732,203
690,000 Fuji Bank, Ltd. ............................... 5,385,930
98,000 Ito-Yokado Co., Ltd. .......................... 6,016,248
226,000 KAO Corp. ..................................... 5,735,176
380,000 Matsushita Electric
Industrial Co., Ltd. .......................... 7,224,456
107,000 Murata Manufacturing Co., Ltd. ................ 6,120,687
345,000 Nikko Securities .............................. 1,979,271
960 Nippon Telegraph &
Telephone Corp. ............................... 10,452,261
252,000 Nomura Securities Co., Ltd. ................... 2,718,392
339 NTT Mobile Communications ..................... 19,874,372
64,000 Rohm Co., Ltd. ................................ 7,718,593
1,566,000 Sakura Bank, Ltd. ............................. 6,046,281
9,338 Shoskoh Fund & Co., Ltd. ...................... 5,474,539
168,000 Takeda Chemical Industries .................... 7,302,513
34,800 Takefuji Corp. ................................ 2,885,427
370,000 Toshiba Corp. ................................. 2,479,062
------------
102,145,411
------------
Netherlands - 9.29%
114,400 Gucci Group ................................... 8,630,050
245,533 Koninklijke Ptt ............................... 10,247,491
71,105 Laurus NV ..................................... 1,528,886
119,332 Royal Dutch Petroleum ......................... 6,947,349
196,098 Vendex International* ......................... 4,879,492
309,239 VNU NV ........................................ 12,514,215
------------
44,747,483
------------
New Zealand - 1.56%
1,438,887 Telecom Corp. of New Zealand .................. 7,495,064
------------
Phillipines - 0.44%
213,264 Metropolitan Bank & Trust Co. ................. 2,131,238
------------
Portugal - 1.45%
167,577 Portugal Telecom SA ........................... 6,985,090
------------
Singapore - 0.23%
106,000 Development Bank of Singapore ................. 1,124,801
------------
Spain - 4.20%
346,197 Argentaria, SA ................................ 8,142,524
69,265 Banco Popular Espnol SA ....................... 4,903,421
149,636 Telefonica de Espana SA ....................... 7,011,974
149,636 Telefonica de Espana SA
Bonus Rights* ................................. 139,133
------------
20,197,052
------------
See Notes to Financial Statements.
34
<PAGE>
International Equity Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Sweden - 2.12%
118,380 Hennes & Mauritz AB, Class B .................. $ 10,200,576
------------
Switzerland - 4.23%
4,031 Novartis AG, Registered ....................... 5,899,347
838 Roche Holdings AG ............................. 9,853,008
6,930 Schweizerische ................................ 4,587,298
------------
20,339,653
------------
United Kingdom - 22.41%
343,431 Allied Zurich, Plc* ........................... 4,690,533
3,187,572 ASDA Group Plc ................................ 10,653,101
343,431 B.A.T. Industries, Plc ........................ 2,881,170
2,058,624 British Aerospace, Plc ........................ 15,399,443
808,530 British Sky Broadcasting, Plc ................. 7,140,745
926,084 Diageo, Plc ................................... 10,689,252
448,913 Glaxo Wellcome, Plc ........................... 13,273,416
465,400 Imperial Chemical Industries, Plc ............. 5,038,676
1 PowerGen, Plc ................................. 11
364,502 Railtrack Group, Plc .......................... 7,605,275
801,743 Reed International Plc ........................ 7,293,615
1,322,829 Somerfield, Plc ............................... 7,352,360
863,879 Vodafone Group, Plc ........................... 15,912,317
------------
107,929,914
------------
Total Common Stocks ........................... 474,388,756
------------
(Cost $358,731,560)
Par Value Value
- ---------- ------------
REPURCHASE AGREEMENT - 2.53%
$12,164,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 04/30/99
Repurchase Price $12,168,937
(Collateralized by U.S. Treasury Bond
7.25%, Due 05/15/16;
Total Par $10,460,000
Market Value $12,408,175) ..................... $ 12,164,000
------------
Total Repurchase Agreement .................... 12,164,000
------------
(Cost $12,164,000)
Total Investments - 101.05%.................................. 486,552,756
------------
(Cost $ 370,895,560)
Net Other Assets and Liabilities - (1.05)% .................. (5,032,547)
------------
Net Assets - 100.00%......................................... $481,520,209
============
- ----------
* Non-income producing security.
GDR Global Depositary Receipt
FORWARD FOREIGN CURRENCY CONTRACTS SOLD:
Currency Contract To Settlement Contract Unrealized
Value Deliver Dates At Value Appreciation
----- ------- ----- -------- ------------
2,577,000,000 JPY 06/17/99 $21,726,790 $325,804
----------- --------
$325,804
========
- ----------
JPY Japanese Yen
See Notes to Financial Statements.
35
<PAGE>
Small Cap Value Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 86.50%
Technology - 18.51%
123,000 Analogic Corp. ................................ $ 4,520,249
107,200 Analysts International Corp. .................. 1,393,599
254,400 BancTec, Inc.* ................................ 4,134,000
50,000 Bell & Howell Co.* ............................ 1,671,874
170,200 Benchmark Electronics, Inc.* .................. 5,722,974
44,028 BMC Software, Inc.* ........................... 1,895,955
120,700 Chyron Corp.* ................................. 248,944
165,000 Clare (C.P.) Corp.* ........................... 660,000
152,200 Coherent, Inc.* ............................... 2,263,974
244,200 Computer Task Group, Inc. ..................... 4,548,224
139,800 Condor Technology Solutions, Inc.* ............ 1,415,474
15,000 Hadco Corp. ................................... 393,750
193,400 Hypercom Corp.* ............................... 1,257,100
254,800 Hyperion Solutions Corp.* ..................... 3,853,850
228,200 Infinium Software, Inc.* ...................... 998,375
81,600 Instron Corp. ................................. 1,387,200
73,800 Keithley Instruments, Inc. .................... 613,463
56,400 K-Tron International, Inc. .................... 1,038,112
37,200 Landmark Systems Corp.* ....................... 423,150
149,200 MacNeal-Schwendler Corp.* ..................... 876,550
126,100 MapInfo Corp.* ................................ 1,907,262
119,500 Mentor Graphics Corp.* ........................ 1,448,938
107,800 Methode Electronics, Inc., Class A ............ 1,603,525
53,500 Nashua Corp.* ................................. 575,125
21,200 ONIX Systems, Inc.* ........................... 116,600
108,380 Optek Technology, Inc.* ....................... 1,625,700
83,400 PairGain Technology, Inc.* .................... 1,068,563
24,800 Perceptron, Inc.* ............................. 134,850
65,800 Performance Technologies, Inc.* ............... 818,388
40,500 Pericom Semiconductor Corp.* .................. 308,813
62,400 Plannar Systems, Inc.* ........................ 460,200
400 Rogers Corp.* ................................. 11,850
27,600 Security Dynamics Technology, Inc.* ........... 600,300
140,100 Sybase, Inc.* ................................. 1,085,774
35,800 Tegal Corp.* .................................. 123,063
33,400 Tekelec* ...................................... 301,644
143,600 Teltrend, Inc.* ............................... 2,504,024
308,800 Unitrode Corp.* ............................... 5,461,899
50,100 Viasoft, Inc.* ................................ 216,056
84,900 Wood's (T.B.), Inc. ........................... 976,350
------------
60,665,741
------------
Consumer Cyclical - 16.03%
43,650 ADVO, Inc.* ................................... 862,088
194,100 American Homestar Corp.* ...................... 1,358,700
67,300 Applebee's International, Inc. ................ 1,737,181
57,900 ASI Solutions, Inc.* .......................... 528,338
70,050 Bassett Furniture Industries, Inc. ............ 1,681,200
61,300 Beazer Homes USA, Inc.* ....................... 1,413,730
74,400 Borg Warner Security Corp.* ................... 1,311,299
116,700 Budget Group, Inc., Class A* .................. 1,451,455
131,200 Children's Comprehensive Services* ............ 770,800
101 Cintas Corp. .................................. 6,944
78,100 CLARCOR, Inc. ................................. 1,464,374
63,100 Cooker Restaurant Corp. ....................... 414,094
52,200 Culp, Inc. .................................... 430,650
33,000 Engle Homes, Inc. ............................. 383,625
42,314 Fresh Foods, Inc.* ............................ 240,661
166,500 Friendly Ice Cream Corp.* ..................... 915,750
22,600 Happy Kids, Inc.* ............................. 285,325
48,000 Houghton Mifflin Co. .......................... 2,142,000
73,200 Infousa, Inc., Class A* ....................... 512,400
31,700 Infousa, Inc., Class B* ....................... 227,844
116,900 InterTAN, Inc.* ............................... 1,271,288
148,300 Iterim Services, Inc.* ........................ 2,576,712
142,900 ITI Technologies, Inc.* ....................... 3,804,712
111,500 Jones Intercable, Inc., Class A* .............. 5,170,811
65,400 Jostens, Inc. ................................. 1,402,013
92,800 K2, Inc. ...................................... 945,400
46,500 Newmark Homes Corp.* .......................... 308,063
128,005 O'Charley's, Inc.* ............................ 1,784,070
95,400 Protection One, Inc. .......................... 453,150
162,700 R & B, Inc.* .................................. 1,281,263
65,200 Rocky Shoes & Boots, Inc.* .................... 350,450
49,100 Ruby Tuesday, Inc. ............................ 896,075
83,500 Ryan's Family Steak Houses, Inc. .............. 1,033,313
52,600 Service Experts, Inc.* ........................ 851,463
50,800 TCA Cable TV, Inc. ............................ 2,530,475
20,000 Toll Brothers, Inc.* .......................... 427,500
98,100 Toro Co. ...................................... 3,415,106
260,600 Unifirst Corp. ................................ 4,544,213
29,700 Wackenhut Corp., Class A ...................... 666,394
78,100 York Group, Inc. .............................. 698,019
------------
52,548,948
------------
Consumer Staples - 14.98%
65,400 American Healthcorp, Inc.* .................... 506,850
102,250 Apple Orthodontix, Inc.* ...................... 319,531
47,500 Barrett Business Services, Inc.* .............. 320,625
90,200 Bindley Western Industries, Inc. .............. 2,784,925
24,900 Bioanalytical Systems, Inc.* .................. 88,706
32,100 Capital Senior Living Corp.* .................. 316,988
18,240 Cordiant Communications
Group, ADR .................................... 273,600
87,400 CTB International Corp.* ...................... 699,200
159,200 Datascope Corp.* .............................. 4,527,250
162,000 Health Management Systems, Inc.* .............. 749,250
55,900 Hologic, Inc.* ................................ 380,818
225,826 ICN Pharmaceuticals, Inc. ..................... 7,466,372
65,000 Ingles Markets, Inc., Class A ................. 747,500
67,100 Invacare Corp. ................................ 1,551,688
50,700 Korn/Ferry International* ..................... 595,725
67,900 LAI Worldwide, Inc.* .......................... 428,619
94,300 Lifecore Biomedical, Inc.* .................... 789,763
65,700 Merkert American Corp.* ....................... 632,362
139,875 Minntech Corp. ................................ 1,800,891
180,133 Morrison Health Care, Inc. .................... 3,377,493
98,000 Northland Cranberries, Inc., Class A .......... 784,000
68,000 Noven Pharmaceuticals, Inc.* .................. 357,000
143,700 Paracelsus Healthcare Corp.* .................. 152,681
108,500 Performance Food Group Co.* ................... 2,875,249
110,700 PMR Corp.* .................................... 477,394
See Notes to Financial Statements.
36
<PAGE>
Small Cap Value Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Consumer Staples (continued)
1,935 Priority Healthcare Corp., Class A* ........... $ 98,080
100,200 PSS World Medical, Inc.* ...................... 976,950
139,225 Res-Care, Inc.* ............................... 2,575,661
105,921 Respironics, Inc.* ............................ 1,496,134
284,300 Richfood Holdings, Inc. ....................... 3,553,750
184,900 Romac Inernational, Inc.* ..................... 2,080,125
241,000 SOS Staffing Services, Inc.* .................. 1,687,000
236,500 Unilab Corp.* ................................. 1,034,687
111,100 Westaff, Inc.* ................................ 819,363
41,700 Young Broadcasting, Inc. Class A* ............. 1,767,038
------------
49,093,268
------------
Finance - 13.14%
70,000 American Annuity Group, Inc. .................. 1,540,000
76,420 Amerus Life Holdings, Inc., Class A ........... 1,709,898
10,100 Annuity & Life Re (Holdings), Ltd. ............ 199,475
61,800 Brandywine Realty Trust, REIT ................. 1,166,475
53,450 Brown & Brown, Inc., Class A .................. 1,747,157
16,000 Colorado Business Bankshares* . ............... 192,000
86,800 Corporate Office
Properties Trust, Inc., REIT .................. 634,725
190,370 D & N Financial Corp. ......................... 4,378,510
43,900 Equity One, Inc., REIT ........................ 397,844
17,400 GBC Bancorp ................................... 307,763
36,260 Hanmi Bank* ................................... 503,113
119,000 HealthCare Financial
Partners, Inc.* ............................... 4,016,250
318,500 HealthCare Financial
Partners, Inc., REIT (A)* ..................... 6,370,000
127,400 Healthcare Financial
Partners, Inc., WTS, (A)*
Expires 04/29/2001 ............................ --
55,650 Healthcare Realty Trust, Inc., REIT ........... 1,213,866
65,400 Highlands Insurance Group, Inc.* .............. 719,400
77,500 Innkeepers USA Trust, REIT .................... 799,219
60,000 Intercargo Corp. .............................. 716,250
50,000 IRT Property Co., REIT ........................ 471,875
12,200 Kansas City Life Insurance Co. ................ 1,001,163
45,000 LaSalle Re Holdings, Ltd. ..................... 660,938
79,900 Life Financial Corp.* ......................... 329,588
112,700 Matrix Capital Corp.* ......................... 1,690,500
12,500 Medford Bancorp, Inc. ......................... 209,375
30,000 Ohio Casualty Corp. ........................... 1,114,688
42,000 Pacific Bank .................................. 837,375
18,300 PICO Holdings, Inc.* .......................... 356,850
28,200 Prime Group Realty Trust, REIT ................ 412,425
76,800 Reliance Bancorp, Inc. ........................ 2,188,800
90,000 Scottish Annuity & Life Holdings, Ltd.* ....... 900,000
63,000 Seacoast Financial Services Corp.* ............ 633,938
110,000 Selective Insurance Group, Inc. ............... 2,131,250
32,200 SL Green Realty Corp., REIT ................... 639,975
75,100 Superior Financial Corp.* ..................... 753,347
16,800 Terra Nova (Bermuda)
Holdings, Ltd., Class A ....................... 376,950
22,677 UMB Financial Corp. ........................... 942,513
50,600 Willis Lease Finance Corp.* ................... 784,300
------------
43,047,795
------------
Capital Goods and Construction - 12.14%
67,900 ABC Rail Products Corp.* ...................... 899,675
79,250 Advanced Technical Products, Inc.* ............ 1,010,437
75,500 Analysis & Technology, Inc.* .................. 1,863,905
22,000 Atchison Casting Corp. ........................ 220,000
133,900 Brown & Sharpe
Manufacturing Co., Class A* ................... 728,081
127,550 Chicago Bridge & Iron Co. N.V ................. 1,546,544
100,300 Comptek Research, Inc.* ....................... 840,013
45,800 Cuno, Inc.* ................................... 838,713
97,100 Denison International Plc, ADR* ............... 1,298,712
166,400 Evans & Sutherland
Computer Corp.* ............................... 2,912,000
150,875 Farr Co.* ..................................... 1,357,875
73,700 Giga-Tronics, Inc.* ........................... 152,006
55,500 Global Industrial Technologies, Inc.* ......... 731,906
100,100 Kaman Corp. ................................... 1,313,811
54,600 Key Technology, Inc.* ......................... 409,500
75,100 Ladish Co., Inc.* ............................. 502,231
104,000 Layne Christensen, Inc.* ...................... 702,000
38,800 Lindberg Co. .................................. 455,900
197,300 LSI Industries, Inc. .......................... 3,946,000
144,400 NCI Building Systems, Inc.* ................... 3,474,623
77,100 Reliance Steel & Aluminum Co. ................. 2,809,331
129,750 Shaw Group, Inc.* ............................. 1,816,500
53,600 SunSource, Inc. ............................... 864,300
59,744 Terex Corp.* .................................. 1,889,404
87,400 TransTechnology Corp. ......................... 1,676,988
33,400 Trex Co., Inc.* ............................... 534,400
99,500 Valmont Industries, Inc. ...................... 1,666,625
118,747 Varlen Corp. .................................. 3,324,916
------------
39,786,396
------------
Basic Materials - 4.23%
12,100 Barringer Technologies, Inc.* . ............... 68,819
30,000 Centex Construction Products .................. 1,061,250
79,400 Dexter Corp. .................................. 3,260,362
9,400 Elcor Corp. ................................... 363,075
111,900 Grief Brothers Corp., Class A ................. 2,839,463
46,400 JPS Packaging Co.* ............................ 232,000
66,800 Longview Fibre Co. ............................ 868,400
171,020 Meridian Resource Corp.* ...................... 994,054
117,400 MPW Industrial
Services Group, Inc.* ......................... 1,071,275
175,100 Northwest Pipe Co.* ........................... 2,473,288
86,650 Peak International, Ltd.* ..................... 281,613
10,900 Sybron Chemicals, Inc.* ....................... 175,081
50,100 Transmation, Inc. ............................. 181,613
------------
13,870,293
------------
Energy - 4.11%
108,700 Bellwether Exploration Co. .................... 434,800
44,200 Berry Petroleum Co., Class A .................. 558,025
125,100 Callon Petroleum Co.* ......................... 1,368,281
63,000 Cross Timbers Oil Co. ......................... 689,063
53,900 Devon Energy Corp. ............................ 1,792,175
91,500 Houston Exploration Co.* ...................... 1,738,500
See Notes to Financial Statements.
37
<PAGE>
Small Cap Value Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Energy (continued)
107,400 Key Production Co., Inc.* ..................... $ 1,074,000
73,300 Louis Dreyfus Natural Gas Corp.* .............. 1,401,863
30,000 MarkWest Hydrocarbon, Inc.* ................... 236,250
40,000 Nuevo Energy Co.* ............................. 635,000
18,800 Oceaneering International, Inc.* .............. 310,200
44,800 Pogo Producing Co. ............................ 859,600
53,700 Pride International, Inc.* .................... 627,619
125,618 Range Resources ............................... 643,792
102,000 Vintage Petroleum, Inc. ....................... 1,096,500
------------
13,465,668
------------
Transportation - 1.86%
170,700 AirNet Systems, Inc.* ......................... 1,792,350
38,875 Cannon Express, Inc.* ......................... 155,500
53,200 Gulfmark Offshore, Inc.* ...................... 904,400
24,000 Midwest Express Holdings, Inc.* ............... 750,000
154,800 RailTex, Inc.* ................................ 2,109,150
78,000 Simon Transportation Services, Inc.,
Class A ....................................... 390,000
------------
6,101,400
------------
Utilities - 1.50%
41,050 Atmos Energy Corp. ............................ 1,036,513
84,650 Cascade Natural Gas Corp. ..................... 1,338,528
20,000 Middlesex Water Co., Inc. ..................... 442,500
73,000 Southwest Gas Corp. ........................... 2,085,063
------------
4,902,604
------------
Total Common Stocks ........................... 283,482,113
------------
(Cost $291,378,205)
Par Value
- ----------
CORPORATE BOND - 0.10%
$ 369,900 MacNeal-Schwendler Corp.
Convertible Subordinated Debenture
7.88%, 08/18/04 ............................... 330,598
------------
Total Corporate Bond .......................... 330,598
------------
Cost $369,900)
Par Value Value
- ---------- ------------
REPURCHASE AGREEMENT - 12.37%
$40,520,000 Repurchase Agreement with:
State Street Bank
4.87%, 05/03/99, dated 4/30/99
Repurchase Price $40,536,444
(Collateralized by U.S. Treasury Bond
7.50%, Due 11/15/16;
Total Par $34,020,000
Market Value $41,334,300) ..................... $ 40,520,000
------------
Total Repurchase Agreement .................... 40,520,000
------------
(Cost $40,520,000)
Total Investments - 98.97%................................... 324,332,711
------------
(Cost $332,268,105)
Net Other Assets and Liabilities - 1.03%..................... 3,384,998
------------
Net Assets - 100.00%......................................... $327,717,709
============
- ----------
* Non-income producing security.
(A) Security exempt from registration pursuant to Rule 144A under the
securities Act of 1933, as amended. This security may only be resold, in a
transaction exempt from registration, to qualified institutional buyers.
At April 30, 1999, the security amounted to $6,370,000, or 1.93% of net
assets.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
WTS Warrants
See Notes to Financial Statements.
38
<PAGE>
Small Company Equity Fund
Portfolio of Investments
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
COMMON STOCKS - 101.07%
Technology - 35.34%
115,700 Actel Corp.* .................................. $ 1,561,950
39,280 Acxiom Corp.* ................................. 991,820
148,600 Advanced Fibre Communication* . ............... 1,133,075
87,300 Aeroflex, Inc.* ............................... 1,276,763
175,100 Amkor Technology, Inc.* ....................... 1,707,225
17,400 AnswerThink Consulting Group, Inc.* ........... 386,063
12,000 Applied Mirco Circuits Corp.* . ............... 639,750
62,600 Ardent Software, Inc.* ........................ 1,173,750
91,200 Aseco Corp. ................................... 102,600
115,700 BancTec, Inc.* ................................ 1,880,125
114,400 BEA Systems, Inc.* ............................ 1,730,300
36,200 Best Software, Inc.* .......................... 468,338
62,800 BindView Development Corp.* ................... 1,350,200
53,800 BISYS Group, Inc.* ............................ 2,730,350
41,600 Brio Technology, Inc.* ........................ 582,400
100,100 Clarify, Inc.* ................................ 2,352,350
58,700 Complete Business Solutions, Inc.* ............ 1,313,413
42,700 Concord Communications, Inc.* . ............... 1,910,825
232,400 Condor Technology Solutions* .................. 2,353,050
22,966 Cree Research, Inc.* .......................... 964,572
126,600 Deltek Systems, Inc. .......................... 1,091,925
175,700 Descartes System Group, Inc.* . ............... 1,109,106
13,500 Digital River, Inc.* .......................... 521,438
29,300 Emulex Corp.* ................................. 1,292,863
58,000 Etec Systems, Inc.* ........................... 1,790,750
25,150 FactSet Research Systems, Inc. ................ 1,172,619
86,800 FORE Systems, Inc.* ........................... 2,929,500
77,500 Forrester Research, Inc.* ..................... 2,635,000
29,300 Galileo Technology Ltd.* ...................... 673,900
127,800 Genesys Telecommunications
Laboratories, Inc.* ........................... 2,284,425
120,200 Gentex Corp.* ................................. 3,613,513
40,900 Great Plains Software, Inc.* .................. 1,250,006
47,200 Helix Technology Corp. ........................ 833,375
29,600 hi/fn, Inc.* .................................. 1,598,400
170,200 HTE, Inc.* .................................... 499,963
121,700 Hyperion Solutions Corp.* ..................... 1,840,712
57,300 ICG Communications, Inc.* ..................... 1,264,181
139,225 IMRglobal Corp.* .............................. 2,401,631
87,292 Information Advantage* ........................ 414,637
168,850 International Telecommunications
Data Systems, Inc.* ........................... 1,910,116
86,700 IntraNet Solutions, Inc.* ..................... 910,350
58,800 IONA Technology Plc., ADR* .................... 999,600
65,500 JDA Software Group, Inc.* ..................... 519,906
58,800 LeCroy Corp.* ................................. 848,925
61,000 Kopin Corp.* .................................. 1,151,375
155,400 Made2Manage Systems, Inc.* .................... 1,476,300
66,800 Mecon, Inc.* .................................. 404,975
43,500 Mercury Interactive Corp.* .................... 1,226,156
135,150 META Group, Inc.* ............................. 1,233,244
96,000 Metro Information Services, Inc.* ............. 2,070,000
8,800 Micromuse, Inc.* .............................. 303,050
73,100 MMC Networks, Inc.* ........................... 1,795,519
37,800 Optical Coating Laboratory, Inc. .............. 2,329,425
57,300 PairGain Technology, Inc.* .................... 734,156
179,800 Pervasive Software, Inc.* ..................... 2,607,100
629,800 Phonetel Technologies, Inc.* .................. 53,533
6,400 PMC Sierra, Inc.* ............................. 613,600
41,650 Probusiness Services, Inc.* ................... 1,494,194
205,600 ProSoft I-Net Solutions, Inc.* ................ 552,550
58,000 QLogic Corp.* ................................. 4,056,375
58,800 Rainbow Technologies, Inc.* ................... 565,950
115,700 Saville Sysems Plc., ADR* ..................... 1,395,631
136,700 Secure Computing Corp.* ....................... 555,344
170,100 SPR, Inc.* .................................... 893,025
71,245 SPSS, Inc.* ................................... 1,228,976
140,600 Tekelec* ...................................... 1,269,794
119,100 Teletech Holdings* ............................ 789,038
180,700 Tier Technologies, Inc.* ...................... 1,084,200
107,300 Tollgrade Communications, Inc.* ............... 1,609,500
15,000 Transwitch Corp.* ............................. 660,000
269,000 TSI International Software, Ltd.* ............. 4,236,750
122,800 Unitrode Corp.* ............................... 2,172,025
40,100 Veeco Instruments, Inc.* ...................... 1,543,850
11,400 Verity, Inc.* ................................. 399,000
3,000 VeriSign, Inc.* ............................... 345,000
42,900 Visual Networks, Inc.* ........................ 1,203,881
11,600 Vitesse Semiconductor Corp.* .................. 537,225
58,300 Whittman-Hart, Inc.* .......................... 1,646,975
143,550 YieldUP International Corp.* .................. 197,381
198,700 Zygo Corp.* ................................... 1,937,325
------------
107,388,182
------------
Consumer Cyclical - 21.12%
35,628 ABR Information Services, Inc.* ............... 623,490
145,500 American Classic Voyages Co.* . ............... 2,600,813
122,500 ASI Solutions, Inc.* .......................... 1,117,813
88,200 Avis Rental Car* .............................. 2,767,275
123,400 Bally's Total Fitness Corp.* .................. 2,992,450
171,700 Bombay Company, Inc.* ......................... 1,094,588
253,300 Brass Eagle, Inc.* ............................ 6,332,500
114,400 Callaway Golf Co. ............................. 1,723,150
65,200 Carriage Services, Inc.* ...................... 1,251,025
117,100 Cash America International, Inc. .............. 1,493,025
65,000 CEC Entertainment, Inc.* ...................... 2,437,500
14,400 Cheap Tickets, Inc.* .......................... 554,400
49,950 Cost Plus, Inc.* .............................. 1,760,738
120,925 Data Processing Resources Corp.* .............. 1,526,678
57,300 DM Management Co.* ............................ 1,360,875
92,420 First Years, Inc. ............................. 1,403,629
199,000 Funco, Inc. ................................... 3,905,375
29,700 Hertz Crop., Class A .......................... 1,772,719
147,300 Just For Feet, Inc.* .......................... 1,859,662
69,200 Kroll-O'Gara Co.* ............................. 1,656,475
21,500 Market Facts, Inc.* ........................... 655,750
89,400 Maxim Group, Inc.* ............................ 720,788
63,800 Metamor Worldwide, Inc.* ...................... 1,248,088
59,600 Osh Kosh B'Gosh, Class A ...................... 1,180,825
See Notes to Financial Statements.
39
<PAGE>
Small Company Equity Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Consumer Cyclical (continued)
87,400 Pacific Sunwear of California, Inc.* .......... $ 3,241,994
86,800 Pegasus Systems, Inc.* ........................ 4,057,900
78,300 Players International, Inc.* .................. 467,353
84,070 Pre-Paid Legal Services, Inc.* ................ 2,395,995
29,400 Racing Champions Corp.* ....................... 429,975
268,400 Silverleaf Resorts, Inc.* ..................... 2,130,425
116,800 Source Information
Management Co.* ............................... 1,430,800
49,000 Travel Services International, Inc.* .......... 434,875
114,600 Travis Boats & Motors, Inc.* .................. 1,819,275
57,200 Wet Seal, Inc.* ............................... 2,330,900
54,300 World Color Press, Inc.* ...................... 1,388,044
------------
64,167,167
------------
Consumer Staples - 16.08%
58,000 Alpharma, Inc., Class A ....................... 1,711,000
73,200 Anesta Corp.* ................................. 1,024,800
115,700 Aurora Foods, Inc.* ........................... 1,721,038
126,650 Cytyc Corp.* .................................. 2,477,591
76,800 Education Management Corp.* ................... 1,531,200
134,600 FirstService Corp.* ........................... 1,951,700
122,400 Geltex Pharmaceuticals, Inc.* . ............... 2,096,100
87,700 Insurance Management
Solutions Group, Inc.* ........................ 920,850
118,400 Isis Pharmaceuticals, Inc.* ................... 1,235,800
64,525 King Pharmaceuticals, Inc.* ................... 1,782,503
73,100 Labor Ready, Inc.* ............................ 2,869,175
180,100 Medaphis Corp.* ............................... 630,350
112,700 Natrol, Inc.* ................................. 760,725
34,600 NCS Healthcare Inc., Class A* . ............... 449,800
115,700 NOVA Corp.* ................................... 3,008,200
90,000 Ocular Sciences, Inc.* ........................ 2,745,000
47,512 On Assignment, Inc.* .......................... 1,440,208
132,900 Orthodontic Center of America, Inc.* .......... 1,644,638
101,500 Physicians Reliance Network* .................. 837,375
126,350 Renal Care Group, Inc.* ....................... 2,637,556
89,300 Rexall Sundown, Inc.* ......................... 1,546,006
168,164 Romac International, Inc.* .................... 1,891,845
89,400 Sonic Corp.* .................................. 2,514,363
74,700 Steiner Leisure Ltd.* ......................... 2,371,725
71,800 Superior Consultant Holdings Corp.* ........... 1,938,600
31,200 USWeb Corp.* .................................. 700,050
147,000 Weider Nutrition International, Inc. .......... 817,688
47,500 Whole Foods Market, Inc.* ..................... 1,852,500
42,075 Xomed Surgical Products, Inc.* ................ 1,751,372
------------
48,859,758
------------
Capital Goods and Construction - 10.91%
94,100 AAR Corp. ..................................... 1,787,900
117,100 Able Telecom Holding Corp.* ................... 819,700
60,500 Astec Industries, Inc.* ....................... 2,344,375
87,500 Asyst Technologies, Inc.* ..................... 1,602,344
45,000 Aviation Sales Co.* ........................... 1,800,000
58,700 Cognex Corp.* ................................. 1,702,300
105,275 Cuno, Inc.* ................................... 1,927,849
87,300 D.R. Horton, Inc. ............................. 1,685,981
43,200 HEICO Corp. ................................... 958,500
44,100 HEICO Corp., Class A .......................... 928,856
116,500 Maverick Tube Corp.* .......................... 1,179,563
145,500 Motivepower Industries, Inc.* . ............... 2,482,594
85,800 MSC Industrial Direct, Inc., Class A* ......... 1,850,063
339,200 Newpark Resources, Inc.* ...................... 3,116,400
116,500 NS Group, Inc.* ............................... 968,406
284,110 PCD, Inc.* .................................... 3,142,967
85,100 PRI Automation, Inc.* ......................... 2,111,544
119,100 Tower Automotive* ............................. 2,739,300
------------
33,148,642
------------
Energy - 7.04%
86,400 BJ Services Co.* .............................. 2,311,200
141,700 Cabot Oil & Gas Corp. ......................... 2,479,750
80,700 Devon Energy Corp.* ........................... 2,683,275
87,400 Global Industries Ltd.* ....................... 1,076,113
149,167 Magin Energy, Inc.* ........................... 343,128
157,300 Marine Drilling Cos., Inc.* ................... 2,703,594
87,700 Newfield Exploration Co.* ..................... 2,356,938
72,100 Noble Affiliates, Inc. ........................ 2,311,706
288,300 Santa Fe Energy Resources, Inc.* .............. 2,594,700
74,700 Stone Energy Corp.* ........................... 2,535,131
------------
21,395,535
------------
Transportation - 4.47%
86,800 Atlas Air, Inc.* .............................. 2,517,200
274,925 Dynamex, Inc.* ................................ 893,506
57,200 Eagle USA Airfreight, Inc.* ................... 2,087,800
64,400 Expeditors International of
Washington, Inc. .............................. 3,904,250
58,800 Midwest Express Holdings* ..................... 1,837,500
174,800 Trico Marine Services, Inc.* .................. 1,387,475
84,500 US Express Enterprises* ....................... 961,188
------------
13,588,919
------------
Communication Services - 2.51%
120,200 Boston Communications Group, Inc.* ............ 1,232,050
58,000 Heftel Broadcasting Corp.* .................... 3,153,750
57,300 Intermedia Communications, Inc.* .............. 1,844,344
28,600 WinStar Communications, Inc.* . ............... 1,390,675
------------
7,620,819
------------
Basic Materials - 1.79%
123,600 Millipore Corp. ............................... 3,792,975
58,300 RTI International Metals, Inc.* ............... 776,119
116,500 Titanium Metal Corp.* ......................... 859,188
------------
5,428,282
------------
See Notes to Financial Statements.
40
<PAGE>
Small Company Equity Fund
Portfolio of Investments (continued)
April 30, 1999 (unaudited)
Shares Value
- ---------- ------------
Finance - 1.49%
57,300 HealthCare Financial Partners, Inc.* .......... $ 1,933,875
54 Horizon Group
Properties, Inc., REIT* ....................... 179
251,000 Towne Services, Inc.* ......................... 2,572,750
------------
4,506,804
------------
Utilities - 0.32%
120,500 Davel Communication Corp. ..................... 979,063
------------
Total Common Stocks ........................... 307,083,171
------------
(Cost $303,308,407)
Total Investments - 101.07%.................................. 307,083,171
------------
(Cost $303,308,407)
Net Other Assets and Liabilities - (1.07)%................... (3,242,402)
------------
Net Assets - 100.00%......................................... $303,840,769
============
- ----------
* Non-income producing security.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
See Notes to Financial Statements.
41
<PAGE>
Galaxy Equity Funds
Statements of Assets and Liabilities
April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Asset Allocation Equity Income Growth and Income
Fund Fund Fund
---------------- ------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost ......................................... $522,619,839 $224,666,010 $436,175,220
Repurchase agreement ........................................ 77,751,000 45,877,000 50,656,000
Net unrealized appreciation (depreciation) on investments ... 138,706,541 89,544,390 146,741,403
------------ ------------ ------------
Total investments at value .................................. 739,077,380 360,087,400 633,572,623
Cash .......................................................... 4,428 1,213 902
Receivable for investments sold ............................... 28,392,021 6,640,604 --
Receivable for open forward foreign currency contracts (Note 2) -- -- --
Receivable for shares sold .................................... 3,051,867 164,410 303,601
Interest and dividend receivable .............................. 4,501,105 507,120 461,993
Deferred organizational expense (Note 2) ...................... -- -- --
------------ ------------ ------------
Total Assets ................................................ 775,026,801 367,400,747 634,339,119
------------ ------------ ------------
LIABILITIES:
Dividends payable ............................................. -- -- --
Foreign currency payable (Cost $1,706,560) .................... -- -- --
Payable for investments purchased ............................. 30,352,687 2,967,625 --
Payable to custodian .......................................... -- -- --
Payable for shares repurchased ................................ 803,799 73,003 1,394,369
Advisory fee payable (Note 3) ................................. 454,955 222,399 305,649
Payable to Fleet affiliates (Note 3) .......................... 177,648 61,148 132,128
Payable to Administrator (Note 3) ............................. 54,744 63,105 17,852
Trustees' fees and expenses payable (Note 3) .................. 10,311 8,276 11,288
Accrued expenses and other payables ........................... 22,479 24,502 5,519
------------ ------------ ------------
Total Liabilities ........................................... 31,876,623 3,420,058 1,866,805
------------ ------------ ------------
NET ASSETS ...................................................... $743,150,178 $363,980,689 $632,472,314
============ ============ ============
</TABLE>
See Notes to Financial Statements.
42
<PAGE>
<TABLE>
<CAPTION>
Strategic Equity Equity Value Equity Growth International Small Cap Small Company
Fund Fund Fund Equity Fund Value Fund Equity Fund
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
$ 70,656,522 $ 470,090,859 $ 852,746,308 $ 358,731,560 $ 291,748,105 $ 303,308,407
8,729,000 24,039,000 41,747,000 12,164,000 40,520,000 --
10,374,916 123,379,199 528,692,930 115,657,196 (7,935,394) 3,774,764
-------------- -------------- -------------- -------------- -------------- --------------
89,760,438 617,509,058 1,423,186,238 486,552,756 324,332,711 307,083,171
720 9,517 449 1,258,990 -- --
212,052 8,853,099 32,904,778 2,385,991 4,483,660 3,982,500
-- -- -- 325,804 -- --
66,579 963,165 3,781,806 151,972 501,917 1,189,959
74,002 478,464 1,177,362 1,496,845 130,032 9,462
12,992 -- -- -- -- --
-------------- -------------- -------------- -------------- -------------- --------------
90,126,783 627,813,303 1,461,050,633 492,172,358 329,448,320 312,265,092
-------------- -------------- -------------- -------------- -------------- --------------
-- -- -- -- -- 5,224
-- -- -- 1,860,042 -- --
2,224,991 10,438,000 21,032,338 8,076,330 960,080 3,831,071
-- -- -- -- 39,872 3,788,605
2,866 244,444 1,208,255 370,756 547,556 412,216
37,625 374,963 887,338 252,074 100,545 184,199
2,024 108,958 175,237 25,305 23,250 68,015
3,798 49,893 62,595 51,289 48,247 64,639
1,840 11,880 25,326 7,709 7,620 10,821
1,875 28,142 49,739 8,644 3,441 59,533
-------------- -------------- -------------- -------------- -------------- --------------
2,275,019 11,256,280 23,440,828 10,652,149 1,730,611 8,424,323
-------------- -------------- -------------- -------------- -------------- --------------
$ 87,851,764 $ 616,557,023 $1,437,609,805 $ 481,520,209 $ 327,717,709 $ 303,840,769
============== ============== ============== ============== ============== ==============
</TABLE>
43
<PAGE>
Galaxy Equity Funds
Statements of Assets and Liabilities (continued)
April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Asset Allocation Equity Income Growth and Income
Fund Fund Fund
---------------- ------------- -----------------
<S> <C> <C> <C>
NET ASSETS consists of:
Par value (Note 5) ......................................... $ 41,313 $ 18,039 $ 37,968
Paid in capital in excess of par value ..................... 596,973,428 248,446,589 471,762,986
Undistributed (overdistributed) net investment income (loss) 1,978,765 304,463 14,885
Accumulated net realized gain (loss) on investments sold ... 5,450,131 25,667,208 13,915,072
Net unrealized appreciation (depreciation) of investments .. 138,706,541 89,544,390 146,741,403
------------ ------------- ------------
TOTAL NET ASSETS .............................................. $743,150,178 $ 363,980,689 $632,472,314
============ ============= ============
Retail A Shares:
Net Assets ................................................. $398,582,889 $ 229,289,658 $247,945,581
Shares of beneficial interest outstanding .................. 22,147,652 11,368,202 14,899,690
NET ASSET VALUE and redemption price per share ............. $ 18.00 $ 20.17 $ 16.64
Sales charge - 3.75% of offering price ..................... 0.70 0.79 0.65
------------ ------------- ------------
Maximum offering price per share ........................... $ 18.70 $ 20.96 $ 17.29
============ ============= ============
Retail B Shares:
Net Assets ................................................. $ 80,319,121 $ 1,476,840 $ 63,384,129
Shares of beneficial interest outstanding .................. 4,473,598 74,169 3,822,228
------------ ------------- ------------
NET ASSET VALUE and offering price per share* .............. $ 17.95 $ 19.91 $ 16.58
============ ============= ============
Trust Shares:
Net Assets ................................................. $263,747,905 $ 133,214,191 $320,986,170
Shares of beneficial interest outstanding .................. 14,663,515 6,596,660 19,237,062
------------ ------------- ------------
NET ASSET VALUE, offering and redemption price per share ... $ 17.99 $ 20.19 $ 16.69
============ ============= ============
A Prime Shares:
Net Assets ................................................. $ 210,462 N/A $ 97,982
Shares of beneficial interest outstanding .................. 11,699 N/A 5,881
NET ASSET VALUE and redemption price per share ............. $ 17.99 N/A $ 16.66
Sales charge - 5.50% of offering price per shares .......... 1.05 N/A 0.97
------------ ------------- ------------
Maximum offering price per shares .......................... $ 19.04 N/A $ 17.63
============ ============= ============
B Prime Shares:
Net Assets ................................................. $ 289,801 N/A $ 58,452
Shares of beneficial interest outstanding .................. 16,128 N/A 3,512
------------ ------------- ------------
NET ASSET VALUE and offering price per share* .............. $ 17.97 N/A $ 16.64
============ ============= ============
</TABLE>
- ----------
* Redemption price per share is equal to the Net Asset Value per share less
any applicable contingent deferred sales charge.
See Notes to Financial Statements.
44
<PAGE>
<TABLE>
<CAPTION>
Strategic Equity Equity Value Equity Growth International Small Cap Small Company
Fund Fund Fund Equity Fund Value Fund Equity Fund
--------------- --------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
$ 7,756 $ 31,644 $ 51,451 $ 25,340 $ 25,123 $ 21,534
70,249,038 420,645,044 819,286,191 353,591,988 318,727,330 338,006,760
59,269 (193,648) (400,156) 5,714,169 395,730 (1,999,033)
7,160,785 72,694,784 89,979,389 6,362,569 16,504,920 (35,963,256)
10,374,916 123,379,199 528,692,930 115,826,143 (7,935,394) 3,774,764
--------------- --------------- --------------- --------------- --------------- ---------------
$ 87,851,764 $ 616,557,023 $ 1,437,609,805 $ 481,520,209 $ 327,717,709 $ 303,840,769
=============== =============== =============== =============== =============== ===============
$ 6,410,054 $ 281,394,544 $ 410,003,612 $ 75,873,893 $ 85,487,377 $ 80,711,806
566,348 14,452,652 14,694,196 4,035,505 6,587,580 5,823,511
$ 11.32 $ 19.47 $ 27.90 $ 18.80 $ 12.98 $ 13.86
0.44 0.76 1.09 0.73 0.51 0.54
--------------- --------------- --------------- --------------- --------------- ---------------
$ 11.76 $ 20.23 $ 28.99 $ 19.53 $ 13.49 $ 14.40
=============== =============== =============== =============== =============== ===============
$ 888,994 $ 30,688,404 $ 55,439,995 $ 617,756 $ 604,624 $ 11,380,200
78,796 1,586,875 2,030,245 32,875 46,524 837,965
--------------- --------------- --------------- --------------- --------------- ---------------
$ 11.28 $ 19.34 $ 27.31 $ 18.79 $ 13.00 $ 13.58
=============== =============== =============== =============== =============== ===============
$ 80,552,716 $ 304,474,075 $ 971,995,988 $ 404,974,494 $ 241,317,594 $ 211,748,763
7,110,428 15,604,542 34,720,556 21,268,658 18,464,802 14,872,849
--------------- --------------- --------------- --------------- --------------- ---------------
$ 11.33 $ 19.51 $ 27.99 $ 19.04 $ 13.07 $ 14.24
=============== =============== =============== =============== =============== ===============
N/A N/A $ 79,609 $ 11,038 $ 156,901 N/A
N/A N/A 2,861 584 12,040 N/A
N/A N/A $ 27.83 $ 18.89 $ 13.03 N/A
N/A N/A 1.62 1.10 0.76 N/A
--------------- --------------- --------------- --------------- --------------- ---------------
N/A N/A $ 29.45 $ 19.99 $ 13.79 N/A
=============== =============== =============== =============== =============== ===============
N/A N/A $ 90,602 $ 43,028 $ 151,213 N/A
N/A N/A 3,255 2,285 11,626 N/A
--------------- --------------- --------------- --------------- --------------- ---------------
N/A N/A $ 27.83 $ 18.83 $ 13.01 N/A
=============== =============== =============== =============== =============== ===============
</TABLE>
45
<PAGE>
Galaxy Equity Funds
Statements of Operations
For the six months ended April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Asset Allocation Equity Income Growth and Income
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2) .................................................. $ 9,865,713 $ 1,158,368 $ 1,107,835
Dividends (Note 2) ................................................. 1,576,582 2,721,923 4,184,037
Less: net foreign taxes withheld (Note 2) .......................... -- -- --
------------ ------------ ------------
Total investment income .......................................... 11,442,295 3,880,291 5,291,872
------------ ------------ ------------
EXPENSES:
Investment advisory fee (Note 3) ................................... 2,523,462 1,301,058 2,189,209
Administration fee (Note 3) ........................................ 255,928 131,975 222,052
Custodian fee ...................................................... 18,992 9,171 13,593
Fund accounting fee (Note 3) ....................................... 57,656 30,803 31,852
Legal fee (Note 3) ................................................. 12,194 6,842 10,536
Audit fee .......................................................... 9,741 9,741 9,741
Transfer agent fee (Note 3) ........................................ 520,670 167,676 481,236
Shareholder servicing fee and 12b-1 fees (Note 3) .................. 813,790 314,967 603,186
Trustees' fees and expenses (Note 3) ............................... 7,423 4,165 6,415
Amortization of organization cost (Note 2) ......................... -- -- --
Amortization of prepaid expenses ................................... -- -- --
Reports to shareholders ............................................ 55,752 35,145 61,779
Miscellaneous ...................................................... 52,929 21,187 43,673
------------ ------------ ------------
Total expenses before reimbursement/waiver ...................... 4,328,537 2,032,730 3,673,272
------------ ------------ ------------
Less:~reimbursement/waiver (Note 4) ............................. (356) (393) (80,045)
------------ ------------ ------------
Total expenses net of reimbursement/waiver ...................... 4,328,181 2,032,337 3,593,227
------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) .......................................... 7,114,114 1,847,954 1,698,645
------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (Notes 2 & 6):
Net realized gain (loss)~on investments sold ....................... 5,613,393 25,693,501 14,358,243
Net realized loss on forward foreign currency
contracts and foreign currency .................................. -- -- --
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts ......... 49,382,388 16,590,842 83,585,670
------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS ....................... 54,995,781 42,284,343 97,943,913
------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................. $ 62,109,895 $ 44,132,297 $ 99,642,558
============ ============ ============
</TABLE>
See Notes to Financial Statements.
46
<PAGE>
<TABLE>
<CAPTION>
Strategic Equity Equity Value Equity Growth International Small Cap Small Company
Fund Fund Fund Equity Fund Value Fund Equity Fund
---------------- ------------ ------------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C>
$ 172,611 $ 244,198 $ 1,277,516 $ 226,298 $ 1,044,277 $ 26,206
430,101 3,163,683 5,831,141 2,177,420 1,250,616 108,959
-- -- -- (266,466) -- --
------------- ------------- ------------- ------------- ------------- -------------
602,712 3,407,881 7,108,657 2,137,252 2,294,893 135,165
------------- ------------- ------------- ------------- ------------- -------------
290,976 2,163,756 4,917,820 2,002,738 1,168,704 1,248,835
29,511 219,476 498,751 170,373 118,589 126,762
8,759 11,255 14,076 199,381 15,749 25,197
18,435 31,827 49,009 46,998 36,014 35,001
409 10,261 22,507 9,088 6,000 8,105
1,478 9,741 9,741 10,979 9,741 9,742
2,404 429,485 620,603 236,574 188,363 432,301
10,728 503,137 708,719 101,408 124,590 180,001
248 6,246 13,704 5,533 3,653 4,067
1,755 -- -- -- -- --
24,466 -- -- -- -- --
1,604 59,428 75,312 25,047 33,563 45,598
7,238 40,228 68,321 26,397 30,534 26,021
------------- ------------- ------------- ------------- ------------- -------------
398,011 3,484,840 6,998,563 2,834,516 1,735,500 2,141,630
------------- ------------- ------------- ------------- ------------- -------------
(77,594) -- (148) (560,477) (90,203) (7,432)
------------- ------------- ------------- ------------- ------------- -------------
320,417 3,484,840 6,998,415 2,274,039 1,645,297 2,134,198
------------- ------------- ------------- ------------- ------------- -------------
282,295 (76,959) 110,242 (136,787) 649,596 (1,999,033)
------------- ------------- ------------- ------------- ------------- -------------
7,482,036 73,475,005 90,813,381 11,079,273 16,513,056 (2,443,282)
-- -- -- (4,701,156) -- --
5,508,938 39,356,474 174,031,216 62,305,068 (1,260,459) 12,242,350
------------- ------------- ------------- ------------- ------------- -------------
12,990,974 112,831,479 264,844,597 68,683,185 15,252,597 9,799,068
------------- ------------- ------------- ------------- ------------- -------------
$ 13,273,269 $ 112,754,520 $ 264,954,839 $ 68,546,398 $ 15,902,193 $ 7,800,035
============= ============= ============= ============= ============= =============
</TABLE>
47
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Asset Allocation Fund
-------------------------------------
Six months ended Year ended
April 30, 1999 October 31,
(unaudited) 1998
---------------- -------------
<S> <C> <C>
NET ASSETS at beginning of the period ................... $ 600,040,305 $ 379,667,751
------------- -------------
Increase in Net Assets resulting from operations:
Net investment income ................................ 7,114,114 12,249,136
Net realized gain on investments sold ................ 5,613,393 15,626,374
Net change in unrealized appreciation on investments . 49,382,388 32,906,427
------------- -------------
Net increase in net assets resulting from operations 62,109,895 60,781,937
------------- -------------
Dividends to shareholders from:
Retail A Shares:
Net investment income ................................ (3,656,361) (6,075,376)
Net realized gain on investments ..................... (8,515,997) (13,560,204)
------------- -------------
Total Dividends .................................... (12,172,358) (19,635,580)
------------- -------------
Retail B Shares:
Net investment income ................................ (467,101) (791,253)
Net realized gain on investments ..................... (1,510,323) (2,342,924)
------------- -------------
Total Dividends .................................... (1,977,424) (3,134,177)
------------- -------------
Trust Shares:
Net investment income ................................ (2,682,368) (5,157,025)
Net realized gain on investments ..................... (5,671,923) (13,004,072)
------------- -------------
Total Dividends .................................... (8,354,291) (18,161,097)
------------- -------------
A Prime Shares:
Net investment income ................................ (1,049) N/A
Net realized gain on investments ..................... (880) N/A
------------- -------------
Total Dividends .................................... (1,929) N/A
------------- -------------
B Prime Shares:
Net investment income ................................ (1,806) N/A
Net realized gain on investments ..................... (3,982) N/A
------------- -------------
Total Dividends .................................... (5,788) N/A
------------- -------------
Total Dividends to shareholders .................... (22,511,790) (40,930,854)
------------- -------------
Net increase from share transactions(1) ................. 103,511,768 200,521,471
------------- -------------
Net increase in net assets ......................... 143,109,873 220,372,554
------------- -------------
Net assets at end of the period (including line A) ...... $ 743,150,178 $ 600,040,305
============= =============
(A) Undistributed net investment income ................. $ 1,978,765 $ 1,673,336
============= =============
</TABLE>
- ----------
(1) For detail on share transactions by series, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 54-55.
See Notes to Financial Statements.
48
<PAGE>
<TABLE>
<CAPTION>
Equity Income Fund Growth and Income Fund
-------------------------------------------- --------------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------- ---------------- -------------
<S> <C> <C> <C>
$ 335,217,600 $ 288,780,499 $ 521,385,834 $ 423,715,404
------------- ------------- ------------- -------------
1,847,954 4,804,077 1,698,645 4,180,366
25,693,501 31,256,958 14,358,243 31,756,496
16,590,842 8,105,519 83,585,670 4,195,055
------------- ------------- ------------- -------------
44,132,297 44,166,554 99,642,558 40,131,917
------------- ------------- ------------- -------------
(1,169,422) (2,568,825) (643,844) (1,497,114)
(19,453,842) (14,397,057) (13,044,487) (24,191,677)
------------- ------------- ------------- -------------
(20,623,264) (16,965,882) (13,688,331) (25,688,791)
------------- ------------- ------------- -------------
(1,562) N/A -- (88,866)
(10,595) N/A (3,253,512) (5,994,237)
------------- ------------- ------------- -------------
(12,157) N/A (3,253,512) (6,083,103)
------------- ------------- ------------- -------------
(973,528) (2,137,883) (1,117,809) (2,841,771)
(11,818,814) (9,987,624) (15,292,610) (41,422,903)
------------- ------------- ------------- -------------
(12,792,342) (12,125,507) (16,410,419) (44,264,674)
------------- ------------- ------------- -------------
N/A N/A (203) N/A
N/A N/A (1,743) N/A
------------- ------------- ------------- -------------
N/A N/A (1,946) N/A
------------- ------------- ------------- -------------
N/A N/A (8) N/A
N/A N/A (300) N/A
------------- ------------- ------------- -------------
N/A N/A (308) N/A
------------- ------------- ------------- -------------
(33,427,763) (29,091,389) (33,354,516) (76,036,568)
------------- ------------- ------------- -------------
18,058,555 31,361,936 44,798,438 133,575,081
------------- ------------- ------------- -------------
28,763,089 46,437,101 111,086,480 97,670,430
------------- ------------- ------------- -------------
$ 363,980,689 $ 335,217,600 $ 632,472,314 $ 521,385,834
============= ============= ============= =============
$ 304,463 $ 601,021 $ 14,885 $ 78,104
============= ============= ============= =============
</TABLE>
49
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Strategic Equity Fund
---------------------------------------
Six months ended Period ended
April 30, 1999 October 31,
(unaudited) 1998*
---------------- ------------
<S> <C> <C>
NET ASSETS at beginning of the period ..................................... $ 67,694,596 $ 30(a)
------------ ------------
Increase in Net Assets resulting from operations:
Net investment income (loss) ........................................... 282,295 21,691
Net realized gain (loss) on investments sold and written options ....... 7,482,036 (240,711)
Net change in unrealized appreciation on investments and written options 5,508,938 4,865,978
------------ ------------
Net increase in net assets resulting from operations ................. 13,273,269 4,646,958
------------ ------------
Dividends to shareholders from:
Retail A Shares:
Net investment income .................................................. (6,064) (1,095)
Dividends in excess of net investment income ........................... -- --
Net realized gain on investments and written options ................... (4,996) --
------------ ------------
Total Dividends ...................................................... (11,060) (1,095)
------------ ------------
Retail B Shares:
Net investment income .................................................. -- --
Net realized gain on investments and written options ................... (642) --
------------ ------------
Total Dividends ...................................................... (642) --
------------ ------------
Trust Shares:
Net investment income .................................................. (225,905) (13,906)
Dividends in excess of net investment income ........................... -- --
Net realized gain on investments and written options ................... (74,902) --
------------ ------------
Total Dividends ...................................................... (300,807) (13,906)
------------ ------------
A Prime Shares:
Net investment income .................................................. N/A N/A
Net realized gain on investments and written options ................... N/A N/A
------------ ------------
Total Dividends ...................................................... N/A N/A
------------ ------------
B Prime Shares:
Net investment income .................................................. N/A N/A
Net realized gain on investments and written options ................... N/A N/A
------------ ------------
Total Dividends ...................................................... N/A N/A
------------ ------------
Total Dividends to shareholders ...................................... (312,509) (15,001)
------------ ------------
Net increase from share transactions(1) ................................... 7,196,408 63,062,609
------------ ------------
Net increase in net assets ............................................. 20,157,168 67,694,566
------------ ------------
Net assets at end of the period (including line A) ....................... $ 87,851,764 $ 67,694,596
============ ============
(A) Undistributed (overdistributed) net investment income (loss) .......... $ 59,269 $ 8,943
============ ============
</TABLE>
- ----------
(1) For detail on share transactions by series, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 56-57.
(a) Represents initial seed money.
* The Strategic Equity Fund commenced operations on March 4, 1998.
See Notes to Financial Statements.
50
<PAGE>
<TABLE>
<CAPTION>
Equity Value Fund Equity Growth Fund
------------------------------------------- --------------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C>
$ 512,264,110 $ 439,131,322 $ 1,163,399,747 $ 992,229,709
--------------- --------------- --------------- ---------------
(76,959) 1,507,455 110,242 3,055,413
73,475,005 18,125,207 90,813,381 89,513,054
39,356,474 21,688,342 174,031,216 55,319,656
--------------- --------------- --------------- ---------------
112,754,520 41,321,004 264,954,839 147,888,123
--------------- --------------- --------------- ---------------
-- (476,968) -- (289,751)
-- -- -- (15,743)
(8,586,482) (32,768,243) (24,495,721) (35,424,489)
--------------- --------------- --------------- ---------------
(8,586,482) (33,245,211) (24,495,721) (35,729,983)
--------------- --------------- --------------- ---------------
-- -- -- --
(858,586) (2,708,059) (2,777,726) (3,245,295)
--------------- --------------- --------------- ---------------
(858,586) (2,708,059) (2,777,726) (3,245,295)
--------------- --------------- --------------- ---------------
(116,689) (1,186,963) (510,391) (3,238,930)
-- -- -- (176,015)
(9,247,391) (42,454,539) (62,804,790) (113,959,378)
--------------- --------------- --------------- ---------------
(9,364,080) (43,641,502) (63,315,181) (117,374,323)
--------------- --------------- --------------- ---------------
N/A N/A (7) N/A
N/A N/A (1,717) N/A
--------------- --------------- --------------- ---------------
N/A N/A (1,724) N/A
--------------- --------------- --------------- ---------------
N/A N/A -- N/A
N/A N/A (552) N/A
--------------- --------------- --------------- ---------------
N/A N/A (552) N/A
--------------- --------------- --------------- ---------------
(18,809,148) (79,594,772) (90,590,904) (156,349,601)
--------------- --------------- --------------- ---------------
10,347,541 111,406,556 99,846,123 179,631,516
--------------- --------------- --------------- ---------------
104,292,913 73,132,788 274,210,058 171,170,038
--------------- --------------- --------------- ---------------
$ 616,557,023 $ 512,264,110 $ 1,437,609,805 $ 1,163,399,747
=============== =============== =============== ===============
$ (193,648) $ -- $ (400,156) $ --
=============== =============== =============== ===============
</TABLE>
51
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
International Equity Fund
-----------------------------------------
Six months ended Year ended
April 30, 1999 October 31,
(unaudited) 1998
----------------- -------------
<S> <C> <C>
NET Assets at beginning of the period ................................. $ 412,233,003 $ 321,715,516
------------- -------------
Increase (Decrease) in Net Assets resulting from operations:
Net investment income (loss) ....................................... (136,787) 3,112,383
Net realized gain (loss) on investments sold ....................... 6,378,117 13,739,754
Net realized gain on forward foreign currency
contracts and foreign currency ................................... -- 5,322,536
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts .......... 62,305,068 21,492,799
------------- -------------
Net increase (decrease) in net assets resulting from operations .. 68,546,398 43,667,472
------------- -------------
Dividends to shareholders from:
Retail A Shares:
Net investment income .............................................. (216,041) (239,530)
Net realized gain on investments, forward foreign
currency contracts and foreign currency .......................... (2,270,202) (1,235,651)
In excess of net realized gains on investments ..................... -- --
------------- -------------
Total Dividends .................................................. (2,486,243) (1,475,181)
------------- -------------
Retail B Shares:
Net investment income .............................................. (1,893) N/A
Net realized gain on investments, forward foreign
currency contracts and foreign currency .......................... (8,529) N/A
In excess of net realized gains on investments ..................... -- N/A
------------- -------------
Total Dividends .................................................. (10,422) N/A
------------- -------------
Trust Shares:
Net investment income .............................................. (2,952,898) (1,544,939)
Net realized gain on investments, forward foreign
currency contracts and foreign currency .......................... (11,473,156) (6,265,777)
In excess of net realized gains on investments ..................... -- --
------------- -------------
Total Dividends .................................................. (14,426,054) (7,810,716)
------------- -------------
A Prime Shares:
Net investment income .............................................. (39) N/A
Net realized gain on investments, forward foreign
currency contracts and foreign currency .......................... (145) N/A
------------- -------------
Total Dividends .................................................. (184) N/A
------------- -------------
B Prime Shares:
Net investment income .............................................. (226) N/A
Net realized gain on investments, forward foreign
currency contracts and foreign currency ......................... (990) N/A
------------- -------------
Total Dividends ................................................. (1,216) N/A
------------- -------------
Total Dividends to shareholders ................................. (16,924,119) (9,285,897)
------------- -------------
Net increase from share transactions(1) ............................... 17,664,927 56,135,912
------------- -------------
Net increase (decrease) in net assets ........................ 69,287,206 90,517,487
------------- -------------
Net assets at end of the period (including line A) .................... $ 481,520,209 $ 412,233,003
============= =============
(A) Undistributed (overdistributed) net investment income (loss) ...... $ 5,714,169 $ 9,022,053
============= =============
</TABLE>
- ----------
(1) For detail on share transactions by series, see Statements of Changes in
Net Assets - Capital Stock Activity on pages 58-59.
See Notes to Financial Statements.
52
<PAGE>
<TABLE>
<CAPTION>
Small Cap Value Fund Small Company Equity Fund
----------------------------------------- ----------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------- ---------------- -------------
<S> <C> <C> <C>
$ 290,165,115 $ 252,915,472 $331,071,417 $ 461,077,407
------------- ------------- ------------ -------------
649,596 1,806,802 (1,999,033) (3,835,593)
16,513,056 27,382,595 (2,443,282) (33,381,616)
-- -- -- --
(1,260,459) (70,528,722) 12,242,350 (78,673,832)
------------- ------------- ------------ -------------
15,902,193 (41,339,325) 7,800,035 (115,891,041)
------------- ------------- ------------ -------------
(66,569) (335,684) -- --
(8,121,983) (9,778,432) -- (13,856,463)
-- -- -- (2,617)
------------- ------------- ------------ -------------
(8,188,552) (10,114,116) -- (13,859,080)
------------- ------------- ------------ -------------
-- N/A -- --
(6,269) N/A -- (1,647,828)
-- N/A -- (312)
------------- ------------- ------------ -------------
(6,269) N/A -- (1,648,140)
------------- ------------- ------------ -------------
(427,142) (1,582,494) -- --
(19,251,259) (28,007,227) -- (33,024,373)
-- -- -- (6,237)
------------- ------------- ------------ -------------
(19,678,401) 29,589,721 -- (33,030,610)
------------- ------------- ------------ -------------
(167) N/A N/A N/A
(3,618) N/A N/A N/A
------------- ------------- ------------ -------------
(3,785) N/A N/A N/A
------------- ------------- ------------ -------------
-- N/A N/A N/A
(7,602) N/A N/A N/A
------------- ------------- ------------ -------------
(7,602) N/A N/A N/A
------------- ------------- ------------ -------------
(27,884,609) (39,703,837) -- (48,537,830)
------------- ------------- ------------ -------------
49,535,010 118,292,805 (35,030,683) 34,422,881
------------- ------------- ------------ -------------
37,552,594 37,249,643 (27,230,648) (130,005,990)
------------- ------------- ------------ -------------
$ 327,717,709 $ 290,165,115 $303,840,769 $ 331,071,417
============= ============= ============ =============
$ 395,730 $ 240,012 $ (1,999,033) $ --
============= ============= ============ =============
</TABLE>
53
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets --
Capital Stock Activity
<TABLE>
<CAPTION>
Asset Allocation Fund
----------------------------------------
Six months ended Year ended
April 30, 1999 October 31,
(unaudited) 1998
---------------- -------------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold .............................................. $ 79,152,749 $ 165,898,714
Issued to shareholders in reinvestment of dividends 12,007,219 19,205,127
Repurchased ....................................... (37,383,313) (49,327,967)
------------- -------------
Net increase in shares outstanding .................. $ 53,776,655 $ 135,775,874
============= =============
Retail B Shares:
Sold .............................................. $ 20,954,144 $ 28,201,780
Issued to shareholders in reinvestment of dividends 1,938,635 3,057,363
Repurchased ....................................... (4,357,783) (5,925,878)
------------- -------------
Net increase in shares outstanding ................ $ 18,534,996 $ 25,333,265
============= =============
Trust Shares:
Sold .............................................. $ 54,095,941 $ 72,415,149
Issued to shareholders in reinvestment of dividends 7,808,210 16,323,828
Repurchased ....................................... (31,188,836) (49,326,645)
------------- -------------
Net increase in shares outstanding ................ $ 30,715,315 $ 39,412,332
============= =============
A Prime Shares:
Sold .............................................. $ 203,213 N/A
Issued to shareholders in reinvestment of dividends 1,532 N/A
Repurchased ....................................... -- N/A
------------- -------------
Net increase in shares outstanding ................ $ 204,745 N/A
============= =============
B Prime Shares:
Sold .............................................. $ 282,917 N/A
Issued to shareholders in reinvestment of dividends 5,738 N/A
Repurchased ....................................... (8,598) N/A
------------- -------------
Net increase in shares outstanding ................ $ 280,057 N/A
============= =============
SHARE ACTIVITY
Retail A Shares:
Sold .............................................. 4,526,352 10,096,211
Issued to shareholders in reinvestment of dividends 696,001 1,234,122
Repurchased ....................................... (2,160,304) (3,012,818)
------------- -------------
Net increase in shares outstanding ................ 3,062,049 8,317,515
============= =============
Retail B Shares:
Sold .............................................. 1,187,176 1,720,422
Issued to shareholders in reinvestment of dividends 112,595 197,145
Repurchased ....................................... (247,473) (363,558)
------------- -------------
Net increase in shares outstanding ................ 1,052,298 1,554,009
============= =============
Trust Shares:
Sold .............................................. 3,041,719 4,431,090
Issued to shareholders in reinvestment of dividends 452,712 1,053,874
Repurchased ....................................... (1,727,349) (3,019,092)
------------- -------------
Net increase in shares outstanding ................ 1,767,082 2,465,872
============= =============
A Prime Shares:
Sold .............................................. 11,611 N/A
Issued to shareholders in reinvestment of dividends 88 N/A
Repurchased ....................................... -- N/A
------------- -------------
Net increase in shares outstanding ................ 11,699 N/A
============= =============
B Prime Shares:
Sold .............................................. 16,277 N/A
Issued to shareholders in reinvestment of dividends 333 N/A
Repurchased ....................................... (482) N/A
------------- -------------
Net increase in shares outstanding ................ 16,128 N/A
============= =============
</TABLE>
See Notes to Financial Statements.
54
<PAGE>
<TABLE>
<CAPTION>
Equity Income Fund Growth and Income Fund
------------------------------------- --------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C>
$16,606,482 $47,393,968 $ 22,580,374 $99,093,005
20,010,981 16,360,921 13,581,512 25,378,015
(22,065,349) (33,988,418) (29,135,604) (38,410,144)
----------- ----------- ------------ -----------
$14,552,114 $29,766,471 $ 7,026,282 $86,060,876
=========== =========== ============ ===========
$ 1,420,988 N/A $ 4,866,054 $21,007,328
14,813 N/A 3,188,900 5,973,835
(19,736) N/A (4,538,226) (5,571,374)
----------- ----------- ------------ -----------
$ 1,416,065 N/A $ 3,516,728 $21,409,789
=========== =========== ============ ===========
$ 6,314,954 $14,958,563 $ 47,493,309 $56,352,388
7,589,723 6,743,274 15,476,410 41,712,836
(11,814,301) (20,106,372) (28,861,616) (71,960,808)
----------- ----------- ------------ -----------
$ 2,090,376 $ 1,595,465 $ 34,108,103 $26,104,416
=========== =========== ============ ===========
N/A N/A $ 87,116 N/A
N/A N/A 4,826 N/A
N/A N/A -- N/A
----------- ----------- ------------ -----------
N/A N/A $ 91,942 N/A
=========== =========== ============ ===========
N/A N/A $ 61,466 N/A
N/A N/A 306 N/A
N/A N/A (6,389) N/A
----------- ----------- ------------ -----------
N/A N/A $ 55,383 N/A
=========== =========== ============ ===========
848,620 2,432,108 1,432,763 6,417,123
1,076,100 908,536 906,517 1,806,453
(1,125,861) (1,764,920) (1,841,408) (2,556,615)
----------- ----------- ------------ -----------
798,859 1,575,724 497,872 5,666,961
=========== =========== ============ ===========
74,374 N/A 308,569 1,368,708
803 N/A 213,317 425,584
(1,008) N/A (287,336) (374,402)
----------- ----------- ------------ -----------
74,169 N/A 234,550 1,419,890
=========== =========== ============ ===========
323,579 780,277 2,986,348 3,666,013
410,258 376,283 1,028,637 2,916,670
(606,250) (1,031,181) (1,824,100) (4,690,328)
----------- ----------- ------------ -----------
127,587 125,379 2,190,885 1,892,355
=========== =========== ============ ===========
N/A N/A 5,560 N/A
N/A N/A 321 N/A
N/A N/A -- N/A
----------- ----------- ------------ -----------
N/A N/A 5,881 N/A
=========== =========== ============ ===========
N/A N/A 3,896 N/A
N/A N/A 20 N/A
N/A N/A (404) N/A
----------- ----------- ------------ -----------
N/A N/A 3,512 N/A
=========== =========== ============ ===========
</TABLE>
55
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets --
Capital Stock Activity (continued)
<TABLE>
<CAPTION>
Strategic Equity Fund
------------------------------------
Six months ended Period ended
April 30, 1999 October 31,
(unaudited) 1998(1)
---------------- ------------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold .............................................. $2,107,568 $ 4,292,625
Issued to shareholders in reinvestment of dividends 11,157 1,069
Repurchased ....................................... (642,335) (220,560)
---------- ------------
Net increase in shares outstanding ................ $1,476,390 $ 4,073,134
========== ============
Retail B Shares:
Sold .............................................. $ 262,962 $ 597,208
Issued to shareholders in reinvestment of dividends 641 --
Repurchased ....................................... (73,893) (17,158)
---------- ------------
Net increase in shares outstanding ................ $ 189,710 $ 580,050
========== ============
Trust Shares:
Sold .............................................. $5,266,308 $ 58,395,708
Issued to shareholders in reinvestment of dividends 297,215 13,717
Repurchased ....................................... (33,215) --
---------- ------------
Net increase in shares outstanding ................ $5,530,308 $ 58,409,425
========== ============
A Prime Shares:
Sold .............................................. N/A N/A
Issued to shareholders in reinvestment of dividends N/A N/A
Repurchased ....................................... N/A N/A
---------- ------------
Net increase in shares outstanding ................ N/A N/A
========== ============
B Prime Shares:
Sold .............................................. N/A N/A
Issued to shareholders in reinvestment of dividends N/A N/A
Repurchased ....................................... N/A N/A
---------- ------------
Net increase in shares outstanding ................ N/A N/A
========== ============
SHARE ACTIVITY
Retail A Shares:
Sold .............................................. 207,200 445,623
Issued to shareholders in reinvestment of dividends 1,121 112
Repurchased ....................................... (62,958) (24,750)
---------- ------------
Net increase in shares outstanding ................ 145,363 420,985
========== ============
Retail B Shares:
Sold .............................................. 25,191 62,555
Issued to shareholders in reinvestment of dividends 66 --
Repurchased ....................................... (7,142) (1,874)
---------- ------------
Net increase in shares outstanding ................ 18,115 60,681
========== ============
Trust Shares:
Sold .............................................. 535,972 6,546,472
Issued to shareholders in reinvestment of dividends 29,766 1,438
Repurchased ....................................... (3,220) --
---------- ------------
Net increase in shares outstanding ................ 562,518 6,547,910
========== ============
A Prime Shares:
Sold .............................................. N/A N/A
Issued to shareholders in reinvestment of dividends N/A N/A
Repurchased ....................................... N/A N/A
---------- ------------
Net increase in shares outstanding ................ N/A N/A
========== ============
B Prime Shares:
Sold .............................................. N/A N/A
Issued to shareholders in reinvestment of dividends N/A N/A
Repurchased ....................................... N/A N/A
---------- ------------
Net increase in shares outstanding ................ N/A N/A
========== ============
</TABLE>
- ----------
(1) The Strategic Equity Fund commenced operations on March 4, 1998.
See Notes to Financial Statements.
56
<PAGE>
<TABLE>
<CAPTION>
Equity Value Fund Equity Growth Fund
------------------------------------- ---------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------ ---------------- ------------
<S> <C> <C> <C>
$ 25,915,707 $ 71,563,855 $ 62,209,594 $ 99,063,789
8,468,750 32,705,099 24,188,540 35,167,848
(30,795,694) (35,674,663) (37,269,684) (45,470,844)
------------ ------------ ------------ ------------
$ 3,588,763 $ 68,594,291 $ 49,128,450 $ 88,760,793
============ ============ ============ ============
$ 4,206,813 $ 9,284,286 $ 16,401,065 $ 14,302,986
855,621 2,694,779 2,743,781 3,227,617
(1,724,043) (2,282,148) (3,776,030) (3,039,846)
------------ ------------ ------------ ------------
$ 3,338,391 $ 9,696,917 $ 15,368,816 $ 14,490,757
============ ============ ============ ============
$ 29,548,636 $ 56,562,120 $ 63,970,863 $119,883,832
7,703,532 34,594,314 53,246,212 93,593,644
(33,831,781) (58,041,086) (82,030,359) (137,097,510)
------------ ------------ ------------ ------------
$ 3,420,387 $ 33,115,348 $ 35,186,716 $ 76,379,966
============ ============ ============ ============
N/A N/A $ 74,487 N/A
N/A N/A 1,719 N/A
N/A N/A -- N/A
------------ ------------ ------------ ------------
N/A N/A $ 76,206 N/A
============ ============ ============ ============
N/A N/A $ 85,389 N/A
N/A N/A 546 N/A
N/A N/A -- N/A
------------ ------------ ------------ ------------
N/A N/A $ 85,935 N/A
============ ============ ============ ============
1,401,632 4,201,249 2,334,295 4,078,424
483,897 2,147,298 976,131 1,625,130
(1,663,085) (2,145,298) (1,403,835) (1,917,325)
------------ ------------ ------------ ------------
222,444 4,203,249 1,906,591 3,786,229
============ ============ ============ ============
224,959 547,518 618,739 603,613
49,029 176,860 112,870 150,964
(92,098) (139,566) (142,913) (130,378)
------------ ------------ ------------ ------------
181,890 584,812 588,696 624,199
============ ============ ============ ============
1,585,438 3,384,178 2,394,669 5,054,546
439,340 2,265,774 2,148,881 4,313,303
(1,832,847) (3,499,469) (3,091,680) (5,715,179)
------------ ------------ ------------ ------------
191,931 2,150,483 1,451,870 3,652,670
============ ============ ============ ============
N/A N/A 2,788 N/A
N/A N/A 73 N/A
N/A N/A -- N/A
------------ ------------ ------------ ------------
N/A N/A 2,861 N/A
============ ============ ============ ============
N/A N/A 3,234 N/A
N/A N/A 21 N/A
N/A N/A -- N/A
------------ ------------ ------------ ------------
N/A N/A 3,255 N/A
============ ============ ============ ============
</TABLE>
57
<PAGE>
Galaxy Equity Funds
Statements of Changes in Net Assets --
Capital Stock Activity (continued)
<TABLE>
<CAPTION>
International Equity Fund
----------------------------------------
Six months ended Year ended
April 30, 1999 October 31,
(unaudited) 1998
---------------- ------------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold ................................................ $ 23,941,176 $238,332,225
Issued to shareholders in reinvestment of dividends . 2,446,568 1,448,658
Repurchased ......................................... (25,537,125) (236,467,330)
------------- ------------
Net increase (decrease) in shares outstanding ....... $ 850,619 $ 3,313,553
============= ============
Retail B Shares:
Sold ................................................ $ 14,951,427 N/A
Issued to shareholders in reinvestment of dividends . 1,254 N/A
Repurchased ......................................... (14,422,797) N/A
------------- ------------
Net increase (decrease) in shares outstanding ....... $ 529,884 N/A
============= ============
Trust Shares:
Sold ................................................ $ 137,521,912 $248,673,207
Issued to shareholders in reinvestment of dividends . 8,378,109 4,418,249
Repurchased ......................................... (129,666,166) (200,269,097)
------------- ------------
Net increase (decrease) in shares outstanding ....... $ 16,233,855 $ 52,822,359
============= ============
A Prime Shares:
Sold ................................................ $ 14,518 N/A
Issued to shareholders in reinvestment of dividends . 566 N/A
Repurchased ......................................... (4,960) N/A
------------- ------------
Net increase in shares outstanding .................. $ 10,124 N/A
============= ============
B Prime Shares:
Sold ................................................ $ 42,325 N/A
Issued to shareholders in reinvestment of dividends . 1,217 N/A
Repurchased ......................................... (3,097) N/A
------------- ------------
Net increase in shares outstanding .................. $ 40,445 N/A
============= ============
SHARE ACTIVITY
Retail A Shares:
Sold ................................................ 1,335,659 13,783,137
Issued to shareholders in reinvestment of dividends . 142,832 99,496
Repurchased ......................................... (1,415,230) (13,638,723)
------------- ------------
Net increase (decrease) in shares outstanding ....... 63,261 243,910
============= ============
Retail B Shares:
Sold ................................................ 829,324 N/A
Issued to shareholders in reinvestment of dividends . 73 N/A
Repurchased ......................................... (796,522) N/A
------------- ------------
Net increase (decrease) in shares outstanding ....... 32,875 N/A
============= ============
Trust Shares:
Sold ................................................ 7,570,998 14,546,109
Issued to shareholders in reinvestment of dividends . 484,004 300,561
Repurchased ......................................... (7,120,590) (11,806,941)
------------- ------------
Net increase (decrease) in shares outstanding ....... 934,412 3,039,729
============= ============
A Prime Shares:
Sold ................................................ 815 N/A
Issued to shareholders in reinvestment of dividends . 33 N/A
Repurchased ......................................... (264) N/A
------------- ------------
Net increase in shares outstanding .................. 584 N/A
============= ============
B Prime Shares:
Sold ................................................ 2,385 N/A
Issued to shareholders in reinvestment of dividends . 71 N/A
Repurchased ......................................... (171) N/A
------------- ------------
Net increase in shares outstanding .................. 2,285 N/A
============= ============
</TABLE>
See Notes to Financial Statements.
58
<PAGE>
<TABLE>
<CAPTION>
Small Cap Value Fund Small Company Equity Fund
---------------------------------------- ---------------------------------------
Six months ended Year ended Six months ended Year ended
April 30, 1999 October 31, April 30, 1999 October 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------- ---------------- -------------
<S> <C> <C> <C>
$ 11,379,083 $ 106,572,187 $ 141,440,178 $ 512,095,154
8,165,712 10,065,718 -- 13,430,846
(18,215,700) (69,195,926) (159,396,265) (522,137,062)
------------ ------------- ------------- -------------
$ 1,329,095 $ 47,441,979 $ (17,956,087) $ 3,388,938
============ ============= ============= =============
$ 652,564 N/A $ 9,665,976 $ 7,810,194
6,217 N/A -- 1,613,677
(57,036) N/A (11,128,973) (5,481,887)
------------ ------------- ------------- -------------
$ 601,745 N/A $ (1,462,997) $ 3,941,984
============ ============= ============= =============
$ 65,209,253 $ 74,813,946 $ 109,726,851 $ 277,438,222
15,624,366 25,163,148 -- 24,548,356
(33,548,497) (29,126,268) (125,338,450) (274,894,619)
------------ ------------- ------------- -------------
$ 47,285,122 $ 70,850,826 $ (15,611,599) $ 27,091,959
============ ============= ============= =============
$ 163,978 N/A N/A N/A
1,632 N/A N/A N/A
(4,898) N/A N/A N/A
------------ ------------- ------------- -------------
$ 160,712 N/A N/A N/A
============ ============= ============= =============
$ 155,318 N/A N/A N/A
7,601 N/A N/A N/A
(4,583) N/A N/A N/A
------------ ------------- ------------- -------------
$ 158,336 N/A N/A N/A
============ ============= ============= =============
875,654 6,791,402 9,784,966 29,780,474
640,254 666,385 -- 787,731
(1,414,867) (4,451,699) (10,993,197) (30,011,680)
------------ ------------- ------------- -------------
101,041 3,006,088 (1,208,231) 556,525
============ ============= ============= =============
50,556 N/A 702,804 458,341
487 N/A -- 95,825
(4,519) N/A (803,370) (326,209)
------------ ------------- ------------- -------------
46,524 N/A (100,566) 227,957
============ ============= ============= =============
4,973,145 4,874,052 7,398,216 15,624,925
1,218,986 1,629,237 -- 1,410,015
(2,592,301) (1,941,937) (8,472,740) (15,661,716)
------------ ------------- ------------- -------------
3,599,830 4,561,352 (1,074,524) 1,373,224
============ ============= ============= =============
12,317 N/A N/A N/A
128 N/A N/A N/A
(405) N/A N/A N/A
------------ ------------- ------------- -------------
12,040 N/A N/A N/A
============ ============= ============= =============
11,409 N/A N/A N/A
594 N/A N/A N/A
(377) N/A N/A N/A
------------ ------------- ------------- -------------
11,626 N/A N/A N/A
============ ============= ============= =============
</TABLE>
59
<PAGE>
Asset Allocation Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- ----------------------------------------
Net
Net Increase
Net Realized and Dividends Distributions (Decrease)
Asset Value, Net Unrealized Total from from Net from in Net
Beginning Investment Gain (Loss) on Investment Investment Net Realized Total Asset
of Period Income(B) Investments Operations Income Capital Gains Distributions Value
------------ ---------- -------------- ---------- ---------- ------------- ------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $16.95 $0.18 $1.09 $1.27 $(0.18) $(0.04) $(0.22) $1.05
10/31/98 16.46 0.38 1.72 2.10 (0.40) (1.21) (1.61) 0.49
10/31/97 14.52 0.40 2.43 2.83 (0.38) (0.51) (0.89) 1.94
10/31/96 12.82 0.30 1.83 2.13 (0.30) (0.13) (0.43) 1.70
10/31/95 10.67 0.30 2.16 2.46 (0.31) -- (0.31) 2.15
10/31/94 11.15 0.27 (0.49) (0.22) (0.26) -- (0.26) (0.48)
Retail B
04/30/99 (unaudited) 16.92 0.12 1.07 1.19 (0.12) (0.04) (0.16) 1.03
10/31/98 16.43 0.29 1.71 2.00 (0.30) (1.21) (1.51) 0.49
10/31/97 14.51 0.29 2.42 2.71 (0.28) (0.51) (0.79) 1.92
10/31/96(1) 13.59 0.13 0.91 1.04 (0.12) -- (0.12) 0.92
Trust
04/30/99 (unaudited) 16.96 0.20 1.07 1.27 (0.20) (0.04) (0.24) 1.03
10/31/98 16.47 0.42 1.71 2.13 (0.43) (1.21) (1.64) 0.49
10/31/97 14.53 0.43 2.42 2.85 (0.40) (0.51) (0.91) 1.94
10/31/96 12.83 0.33 1.83 2.16 (0.33) (0.13) (0.46) 1.70
10/31/95 10.68 0.32 2.16 2.48 (0.33) -- (0.33) 2.15
10/31/94 11.15 0.28 (0.49) (0.21) (0.26) -- (0.26) (0.47)
A Prime
04/30/99(2) (unaudited) 16.95 0.22 1.06 1.28 (0.20) (0.04) (0.24) 1.04
B Prime
04/30/99(2) (unaudited) 16.95 0.15 1.07 1.22 (0.16) (0.04) (0.20) 1.02
</TABLE>
- ----------
* Annualized.
** Not Annualized.
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(2) The Fund began issuing A Prime and B Prime Shares on November 1, 1998.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares.
(B) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Retail A Shares for the six
months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $0.18, $0.38, $0.40, $0.30, $0.30 and
$0.27, respectively. Net investment income per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the six months ended April 30, 1999 (unaudited),
the years ended October 31, 1998 and 1997 and the period ended October 31,
1996 were $0.12, $0.29, $0.28 and $0.12, respectively. Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or Administrator for Trust Shares for the six months ended
April 30, 1999 (unaudited) and the years ended October 31, 1998, 1997,
1996, 1995 and 1994 were $0.20, $0.42, $0.43, $0.33, $0.32 and $0.28,
respectively. Net investment income per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for A Prime Shares
for the period ended April 30, 1999 (unaudited) was $0.20. Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or Administrator for B Prime Shares for the period ended April
30, 1999 (unaudited) was $0.13.
See Notes to Financial Statements.
60
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
--------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, Total End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
---------------- --------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$18.00 9.91%** $398,583 2.11%* 1.29%* 1.29%* 57%**
16.95 13.85% 323,498 2.43% 1.33% 1.33% 108%
16.46 20.23% 177,239 2.66% 1.37% 1.37% 58%
14.52 16.92% 116,852 2.29% 1.42% 1.42% 48%
12.82 23.42% 76,368 2.52% 1.48% 1.50% 41%
10.67 (2.02)% 73,574 2.66% 1.21% 1.22% 23%
17.95 9.52%** 80,319 1.45%* 1.95%* 1.95%* 57%**
16.92 13.14% 57,876 1.77% 1.99% 1.99% 108%
16.43 19.34% 30,688 1.95% 2.10% 2.19% 58%
14.51 7.71%** 3,557 1.73%* 1.95%* 2.15%* 48%
17.99 9.90%** 263,748 2.31%* 1.09%* 1.09%* 57%**
16.96 14.05% 218,666 2.63% 1.13% 1.13% 108%
16.47 20.42% 171,741 2.82% 1.21% 1.22% 58%
14.53 17.19% 123,603 2.52% 1.19% 1.21% 48%
12.83 23.68% 76,771 2.74% 1.26% 1.30% 41%
10.68 (1.93)% 65,464 2.70% 1.18% 1.18% 23%
17.99 10.07%** 210 2.26%* 1.14%* 1.32%* 57%**
17.97 9.67%** 290 1.52%* 1.88%* 2.11%* 57%**
</TABLE>
61
<PAGE>
Equity Income Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- --------------------------------------
Net Net
Net Realized and Dividends Distributions Increase
Asset Value, Net Unrealized Total from from Net from (Decrease)
Beginning Investment Gain on Investment Investment Net Realized Total in Net
of Period Income(B) Investments Operations Income Capital Gains Distributions Asset Value
----------- ---------- ------------ ---------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $19.67 $0.09 $2.37 $2.46 $(0.11) $(1.85) $(1.96) $ 0.50
10/31/98 18.82 0.25 2.43 2.68 (0.25) (1.58) (1.83) 0.85
10/31/97 16.91 0.30 3.35 3.65 (0.30) (1.44) (1.74) 1.91
10/31/96 14.98 0.30 2.47 2.77 (0.30) (0.54) (0.84) 1.93
10/31/95 12.74 0.28 2.47 2.75 (0.30) (0.21) (0.51) 2.24
10/31/94 12.85 0.30 0.07 0.37 (0.29) (0.19) (0.48) (0.11)
Retail B
04/30/99(1) (unaudited) 19.69 0.02(2) 2.13 2.15 (0.08) (1.85) (1.93) 0.22
Trust
04/30/99 (unaudited) 19.69 0.13 2.37 2.50 (0.15) (1.85) (2.00) 0.50
10/31/98 18.84 0.34 2.42 2.76 (0.33) (1.58) (1.91) 0.85
10/31/97 16.93 0.38 3.35 3.73 (0.38) (1.44) (1.82) 1.91
10/31/96 14.99 0.37 2.48 2.85 (0.37) (0.54) (0.91) 1.94
10/31/95 12.75 0.36 2.45 2.81 (0.36) (0.21) (0.57) 2.24
10/31/94 12.85 0.31 0.07 0.38 (0.29) (0.19) (0.48) (0.10)
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on November 1, 1998.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B Shares.
(B) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Retail A Shares for the six
months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $0.09, $0.25, $0.30, $0.30, $0.28 and
$0.30, respectively. Net investment income per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the period ended April 30, 1999 (unaudited) was
$0.01(2). Net investment income per share before reimbursement/waiver of
fees by the Investment Advisor and/or Administrator for Trust Shares for
the six months ended April 30, 1999 (unaudited) and the years ended October
31, 1998, 1997, 1996, 1995 and 1994 were $0.13, $0.34, $0.38, $0.37, $0.36
and $0.31, respectively.
See Notes to Financial Statements.
62
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
--------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$20.17 13.36%** $229,290 0.91%* 1.33%* 1.33%* 21%**
19.67 15.23% 207,850 1.30% 1.34% 1.34% 46%
18.82 23.28% 169,276 1.70% 1.39% 1.41% 37%
16.91 19.01% 126,952 1.86% 1.40% 1.40% 45%
14.98 22.23% 81,802 2.08% 1.49% 1.51% 21%
12.74 2.94% 63,532 2.45% 1.11% 1.12% 31%
19.91 11.73%** 1,477 0.24%* 2.00%* 2.13%* 21%**
20.19 13.59%** 133,214 1.33%* 0.91%* 0.91%* 21%**
19.69 15.67% 127,367 1.72% 0.92% 0.92% 46%
18.84 23.80% 119,505 2.14% 0.95% 0.97% 37%
16.93 19.65% 106,094 2.32% 0.94% 0.94% 45%
14.99 22.81% 87,819 2.60% 0.98% 1.00% 21%
12.75 3.02% 78,880 2.49% 1.07% 1.07% 31%
</TABLE>
63
<PAGE>
Growth and Income Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------- ----------------------------------------
Net Net
Net Net Realized and Dividends Distributions Increase
Asset Value, Investment Unrealized Total from from Net from (Decrease)
Beginning Income Gain on Investment Investment Net Realized Total in Net
of Period (Loss)(B) Investments Operations Income Capital Gains Distributions Asset Value
----------- ---------- ------------ ---------- ------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $14.87 $0.04 $2.68 $2.72 $(0.04) $(0.91) $(0.95) $1.77
10/31/98 16.24 0.12 1.32 1.44 (0.13) (2.68) (2.81) (1.37)
10/31/97 13.78 0.18 3.67 3.85 (0.20) (1.19) (1.39) 2.46
10/31/96(1) 12.35 0.21 2.16 2.37 (0.21) (0.73) (0.94) 1.43
10/31/95 11.15 0.24 1.70 1.94 (0.25) (0.49) (0.74) 1.20
10/31/94 10.69 0.22 0.72 0.94 (0.20) (0.28) (0.48) 0.46
Retail B
04/30/99 (unaudited) 14.83 (0.02) 2.68 2.66 -- (0.91) (0.91) 1.75
10/31/98 16.23 --(4) 1.31 1.31 (0.03) (2.68) (2.71) (1.40)
10/31/97 13.77 0.10 3.65 3.75 (0.10) (1.19) (1.29) 2.46
10/31/96(2) 12.97 0.07 0.81 0.88 (0.08) -- (0.08) 0.80
Trust
04/30/99 (unaudited) 14.90 0.06 2.70 2.76 (0.06) (0.91) (0.97) 1.79
10/31/98 16.28 0.15 1.31 1.46 (0.16) (2.68) (2.84) (1.38)
10/31/97 13.80 0.22 3.68 3.90 (0.23) (1.19) (1.42) 2.48
10/31/96(1) 12.35 0.27 2.16 2.43 (0.25) (0.73) (0.98) 1.45
10/31/95 11.15 0.28 1.69 1.97 (0.28) (0.49) (0.77) 1.20
10/31/94 10.69 0.25 0.72 0.97 (0.23) (0.28) (0.51) 0.46
A Prime
04/30/99(3) (unaudited) 14.88 0.07 2.68 2.75 (0.06) (0.91) (0.97) 1.78
B Prime
04/30/99(3) (unaudited) 14.88 0.01 2.68 2.69 (0.02) (0.91) (0.93) 1.76
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment
portfolio (the "Predecessor Fund") of The Shawmut Funds. 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, 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.
(2) The Fund began issuing Retail B Shares on March 4, 1996.
(3) The Fund began issuing A Prime and B Prime Shares on November 1, 1998.
(4) Net investment income per share is less than $0.005.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares.
(B) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Retail A Shares for the six
months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $0.04, $0.10, $0.18, $0.19, $0.22 and
$0.18, respectively. Net investment income (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the six months ended April 30, 1999, (unaudited),
the years ended October 31, 1998 and 1997 and the period ended October 31,
1996 were $(0.01), $0.00, $0.08 and $0.05, respectively. Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or Administrator for Trust Shares for the six months ended
April 30, 1999 (unaudited) and the years ended October 31, 1998, 1997,
1996, 1995 and 1994 were $0.06, $0.15, $0.21, $0.27, $0.25 and $0.22,
respectively. Net investment income per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for A Prime Shares
for the period ended April 30, 1999 (unaudited) was $0.04. Net investment
income per share before reimbursement/waiver of fees by the Investment
Advisor and/or Administrator for B Prime Shares for the period ended April
30, 1999 (unaudited) was $0.17.
See Notes to Financial Statements.
64
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
----------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
--------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$16.64 19.01%** $247,946 0.53%* 1.28%* 1.35%* 9%**
14.87 9.93% 214,110 0.75% 1.28% 1.35% 38%
16.24 30.10% 141,884 1.18% 1.27% 1.45% 93%
13.78 20.25% 77,776 1.65% 1.34% 1.45% 59%
12.35 18.52% 51,078 2.10% 1.32% 1.77% 51%
11.15 9.12% 22,244 2.06% 1.29% 1.74% 73%
16.58 18.59%** 63,384 (0.21)%* 2.02%* 2.02%* 9%**
14.83 9.09% 53,216 0.01% 2.02% 2.02% 38%
16.23 29.11% 35,178 0.31% 2.05% 2.28% 93%
13.77 6.83%** 4,562 0.79%* 1.96%* 2.11%* 59%
16.69 19.24%** 320,986 0.78%* 1.03%* 1.03%* 9%**
14.90 10.10% 254,060 1.00% 1.03% 1.03% 38%
16.28 30.43% 246,654 1.44% 1.03% 1.06% 93%
13.80 20.77% 186,708 2.01% 1.02% 1.03% 59%
12.35 18.80% 189,011 2.42% 1.07% 1.27% 51%
11.15 9.45% 156,827 2.31% 1.04% 1.24% 73%
16.66 19.19%** 98 0.68%* 1.13%* 1.40%* 9%**
16.64 18.76%** 58 (0.07)%* 1.88%* 2.38%* 9%**
</TABLE>
65
<PAGE>
Strategic Equity Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- ---------------------------------------
Net Net
Net Net Realized and Dividends Distributions Increase
Asset Value, Investment Unrealized Total from from Net from (Decrease)
Beginning Income Gain (Loss) on Investment Investment Net Realized Total in Net
of Period (Loss)(B) Investments Operations Income Capital Gains Distributions Asset Value
----------- ---------- -------------- ---------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $9.62 $0.02 $1.70 $1.72 $(0.01) $(0.01) $(0.02) $1.70
10/31/98(1) 10.00 --(2) (0.38) (0.38) -- -- -- (0.38)
Retail B
04/30/99 (unaudited) 9.61 (0.01) 1.69 1.68 -- (0.01) (0.01) 1.67
10/31/98(1) 10.00 (0.02) (0.37) (0.39) -- -- -- (0.39)
Trust
04/30/99 (unaudited) 9.63 0.04 1.70 1.74 (0.03) (0.01) (0.04) 1.70
10/31/98(1) 10.00 0.01 (0.37) (0.36) (0.01) -- (0.01) (0.37)
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund commenced operations on March 4, 1998.
(2) Net investment income per share is less than $0.005.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B Shares.
(B) Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Retail A Shares for the six
months ended April 30, 1999 (unaudited) and the period ended October 31,
1998 were $0.01 and $0.00, respectively. Net investment income (loss) per
share before reimbursement/waiver of fees by the Investment Advisor and/or
Administrator for Retail B Shares for six months ended April 30, 1999,
(unaudited) and the period ended October 31, 1998 were $(0.02) and $(0.06),
respectively. Net investment income per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for Trust Shares for
the six months ended April 30, 1999 (unaudited) and the period ended
October 31, 1998 were $0.03 and $0.00, respectively.
See Notes to Financial Statements.
66
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
---------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$11.32 17.94%** $6,410 0.38%* 1.17%* 1.37%* 47%**
9.62 (3.75)%** 4,051 0.06%* 1.40%* 2.41%* 30%**
11.28 17.51%** 889 (0.27)%* 1.82%* 2.02%* 47%**
9.61 (4.76)%** 583 (0.55)%* 2.01%* 3.05%* 30%**
11.33 18.15%** 80,553 0.76%* 0.79%* 0.99%* 47%**
9.63 (3.62)%** 63,061 0.19%* 1.27%* 1.47%* 30%**
</TABLE>
67
<PAGE>
Equity Value Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------- --------------------------------------
Net Net
Net Net Realized and Dividends Dividends Increase
Asset Value, Investment Unrealized Total from from Net from (Decrease)
Beginning Income Gain on Investment Investment Net Realized Total in Net
of Period (Loss)(B) Investments Operations Income Capital Gains Dividends Asset Value
------------ ---------- ------------ ---------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $16.50 $(0.01) $3.59 $3.58 $ -- $(0.61) $(0.61) $2.97
10/31/98 18.21 0.03 1.50 1.53 (0.04) (3.20) (3.24) (1.71)
10/31/97 15.96 0.11 4.16 4.27 (0.12) (1.90) (2.02) 2.25
10/31/96 14.33 0.14 2.74 2.88 (0.14) (1.11) (1.25) 1.63
10/31/95 13.31 0.22 2.24 2.46 (0.23) (1.21) (1.44) 1.02
10/31/94 13.12 0.18 0.45 0.63 (0.16) (0.28) (0.44) 0.19
Retail B
04/30/99 (unaudited) 16.44 (0.07) 3.58 3.51 -- (0.61) (0.61) 2.90
10/31/98 18.24 (0.08) 1.48 1.40 -- (3.20) (3.20) (1.80)
10/31/97 15.99 -- 4.17 4.17 (0.02) (1.90) (1.92) 2.25
10/31/96(1) 14.74 0.04 1.25 1.29 (0.04) -- (0.04) 1.25
Trust
04/30/99 (unaudited) 16.51 0.02 3.60 3.62 (0.01) (0.61) (0.62) 3.00
10/31/98 18.21 0.08 1.49 1.57 (0.07) (3.20) (3.27) (1.70)
10/31/97 15.96 0.17 4.16 4.33 (0.18) (1.90) (2.08) 2.25
10/31/96 14.33 0.21 2.74 2.95 (0.21) (1.11) (1.32) 1.63
10/31/95 13.32 0.28 2.24 2.52 (0.30) (1.21) (1.51) 1.01
10/31/94 13.12 0.19 0.45 0.64 (0.16) (0.28) (0.44) 0.20
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B shares.
(B) Net investment income (loss) per share before reimbursement/waiver of fees
by the Investment Advisor and/or Administrator for Retail A Shares for the
six months ended April 30, 1999 (unaudited), and the years ended October
31, 1998, 1997, 1996, 1995, and 1994 were $(0.01) $0.03, $0.11, $0.14,
$0.22 and $0.18, respectively. Net investment income (loss) per share
before reimbursement/waiver of fees by the Investment Advisor and/or
Administrator for Retail B Shares for six months ended April 30, 1999,
(unaudited), the years ended October 31, 1998 and 1997 and the period ended
October 31, 1996 were $(0.07), $(0.08), $(0.03) and $0.01, respectively.
Net investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Trust Shares for the six months
ended April 30, 1999 (unaudited) and the years ended October 31, 1998,
1997, 1996, 1995, and 1994 were $0.02, $0.08, $0.17, $0.21, $0.28 and
$0.19, respectively.
See Notes to Financial Statements.
68
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
-------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
---------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$19.47 22.10%** $281,395 (0.16)%* 1.34%* 1.34%* 30%**
16.50 9.88% 234,730 0.15% 1.37% 1.37% 82%
18.21 29.48% 182,641 0.63% 1.38% 1.38% 111%
15.96 21.49% 131,998 1.00% 1.45% 1.45% 116%
14.33 20.81% 96,555 1.62% 1.49% 1.50% 76%
13.31 4.97% 74,001 1.45% 1.08% 1.11% 71%
19.34 21.74%** 30,688 (0.86)%* 2.04%* 2.04%* 30%**
16.44 9.07% 23,103 (0.54)% 2.06% 2.06% 82%
18.24 28.60% 14,958 (0.13)% 2.07% 2.38% 111%
15.99 8.80%** 1,916 0.43%* 1.94%* 2.24%* 116%
19.51 22.32%** 304,474 0.18%* 1.00%* 1.00%* 30%**
16.51 10.27% 254,432 0.49% 1.03% 1.03% 82%
18.21 29.87% 241,532 0.98% 1.04% 1.04% 111%
15.96 22.05% 194,827 1.42% 1.03% 1.03% 116%
14.33 21.31% 165,330 2.10% 1.02% 1.02% 76%
13.32 5.05% 154,403 1.46% 1.06% 1.06% 71%
</TABLE>
69
<PAGE>
Equity Growth Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
-------------------------------------- ------------------------------------
Net Dividends
Net Net Realized and Dividends in Excess Dividends
Asset Value, Investment Unrealized Total from from Net of Net from Net
Beginning Income Gain on Investment Investment Investment Realized Total
of Period (Loss)(B) Investments Operations Income Income Capital Gains Dividends
------------ ---------- ------------ ---------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $24.47 $(0.03) $5.36 $5.33 $ -- $ -- $(1.90) $(1.90)
10/31/98 25.14 0.01 3.19 3.20 (0.03) --(3) (3.84) (3.87)
10/31/97 20.37 0.07 6.05 6.12 (0.07) -- (1.28) (1.35)
10/31/96 17.29 0.10 3.39 3.49 (0.11) -- (0.30) (0.41)
10/31/95 14.18 0.14 3.28 3.42 (0.14) -- (0.17) (0.31)
10/31/94 13.76 0.17 0.47 0.64 (0.16) -- (0.06) (0.22)
Retail B
04/30/99 (unaudited) 24.07 (0.12)(2) 5.26 5.14 -- -- (1.90) (1.90)
10/31/98 24.91 (0.16)(2) 3.16 3.00 -- --(3) (3.84) (3.84)
10/31/97 20.26 (0.09)(2) 6.02 5.93 -- -- (1.28) (1.28)
10/31/96(1) 18.77 (0.01) 1.50 1.49 -- -- -- --
Trust
04/30/99 (unaudited) 24.52 0.02 5.37 5.39 (0.02) -- (1.90) (1.92)
10/31/98 25.17 0.09 3.20 3.29 (0.09) (0.01) (3.84) (3.94)
10/31/97 20.39 0.16 6.06 6.22 (0.16) -- (1.28) (1.44)
10/31/96 17.30 0.17 3.40 3.57 (0.18) -- (0.30) (0.48)
10/31/95 14.19 0.20 3.28 3.48 (0.20) -- (0.17) (0.37)
10/31/94 13.76 0.18 0.47 0.65 (0.16) -- (0.06) (0.22)
A Prime
04/30/99(4) (unaudited) 24.49 (0.01) 5.26 5.25 (0.01) -- (1.90) (1.91)
B Prime
04/30/99(4) (unaudited) 24.49 (0.10)(2) 5.34 5.24 -- -- (1.90) (1.90)
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the year.
(3) Dividends in excess of net investment income per share were less than
$0.005.
(4) The Fund began issuing A Prime and B Prime Shares on November 1, 1998.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares.
(B) Net investment income (loss) per share before reimbursement/waiver of fees
by the Investment Advisor and/or Administrator for Retail A Shares for the
six months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $(0.03), $0.01, $0.07, $0.10, $0.13
and $0.17, respectively. Net investment income (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the six months ended April 30, 1999, (unaudited),
the years ended October 31, 1998 and 1997 and the period ended October 31,
1996 were $(0.12)(2), $(0.16)(2), $(0.14)(2) and $(0.03), respectively. Net
investment income per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Trust Shares for the six months
ended April 30, 1999 (unaudited) and the years ended October 31, 1998,
1997, 1996, 1995 and 1994 were $0.02, $0.09, $0.16, $0.17, $0.20 and $0.18,
respectively. Net investment (loss) per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for A Prime Shares
for the period ended April 30, 1999 (unaudited) was $(0.04). Net investment
(loss) per share before reimbursement/waiver of fees by the Investment
Advisor and/or Administrator for B Prime Shares for the period ended April
30, 1999 (unaudited) was $(0.14)(2).
See Notes to Financial Statements.
70
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
----------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Increase Net Assets, Including Including Excluding
(Decrease) in Net Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
Asset Value End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
- ----------------- --------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$3.43 $27.90 22.80%** $410,004 (0.22)%* 1.31%* 1.31%* 37%**
(0.67) 24.47 14.73% 312,951 0.02% 1.34% 1.34% 60%
4.77 25.14 31.61% 226,330 0.30% 1.37% 1.37% 66%
3.08 20.37 20.51% 160,800 0.50% 1.40% 1.40% 36%
3.11 17.29 24.54% 98,911 0.85% 1.45% 1.47% 14%
0.42 14.18 4.72% 70,338 1.22% 0.98% 0.99% 18%
3.24 27.31 22.33%** 55,440 (0.89)%* 1.98%* 1.98%* 37%**
(0.84) 24.07 13.98% 34,693 (0.68)% 2.04% 2.04% 60%
4.65 24.91 30.78% 20,363 (0.40)% 2.07% 2.30% 66%
1.49 20.26 7.95%** 3,995 (0.16)%* 1.92%* 2.29%* 36%
3.47 27.99 23.02%** 971,996 0.16%* 0.93%* 0.93%* 37%**
(0.65) 24.52 15.17% 815,756 0.40% 0.96% 0.96% 60%
4.78 25.17 32.16% 745,537 0.72% 0.95% 0.95% 66%
3.09 20.39 21.03% 562,419 0.92% 0.98% 0.98% 36%
3.11 17.30 25.08% 420,016 1.31% 1.00% 1.00% 14%
0.43 14.19 4.80% 362,094 1.27% 0.93% 0.93% 18%
3.34 27.83 22.38%** 80 (0.02)%* 1.11%* 1.41%* 37%**
3.34 27.83 22.35%** 91 (0.75)%* 1.84%* 2.15%* 37%**
</TABLE>
71
<PAGE>
International Equity Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------- --------------------------------------
Net Net
Net Net Realized and Dividends Dividends Increase
Asset Value, Investment Unrealized Total from from Net from (Decrease)
Beginning Income Gain (Loss) on Investment Investment Net Realized Total in Net
of Period (Loss)(B) Investments Operations Income Capital Gains Dividends Asset Value
------------ ---------- -------------- ---------- ---------- ------------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $16.75 $(0.05) $2.72 $2.67 $(0.05) $(0.57) $(0.62) $2.05
10/31/98 15.18 0.07 1.93 2.00 (0.07) (0.36) (0.43) 1.57
10/31/97 13.94 0.01 2.09 2.10 (0.18) (0.68) (0.86) 1.24
10/31/96 12.92 0.11 1.27 1.38 (0.12) (0.24) (0.36) 1.02
10/31/95 13.20 0.11 (0.21) (0.10) (0.02) (0.16) (0.18) (0.28)
10/31/94 12.13 0.06 1.02 1.08 (0.01) -- (0.01) 1.07
Retail B
04/30/99(1) (unaudited) 16.85 (0.10)(2) 2.74 2.64 (0.13) (0.57) (0.70) 1.94
Trust
04/30/99 (unaudited) 17.00 -- 2.76 2.76 (0.15) (0.57) (0.72) 2.04
10/31/98 15.33 0.14 1.98 2.12 (0.09) (0.36) (0.45) 1.67
10/31/97 14.01 0.08 2.12 2.20 (0.20) (0.68) (0.88) 1.32
10/31/96 12.98 0.17 1.30 1.47 (0.20) (0.24) (0.44) 1.03
10/31/95 13.20 0.16 (0.18) (0.02) (0.04) (0.16) (0.20) (0.22)
10/31/94 12.13 0.06 1.02 1.08 (0.01) -- (0.01) 1.07
A Prime
04/30/99(1) (unaudited) 16.85 --(2) 2.76 2.76 (0.15) (0.57) (0.72) 2.04
B Prime
04/30/99(1) (unaudited) 16.85 (0.08)(2) 2.76 2.68 (0.13) (0.57) (0.70) 1.98
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B, A Prime and B Prime Shares on November 1,
1998.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the year.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares.
(B) Net investment income (loss) per share before reimbursement/waiver of fees
by the Investment Advisor and/or Administrator for Retail A Shares for the
six months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $(0.07), $0.03, $(0.01), $0.07, $0.08,
and $0.03, respectively. Net investment (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the period ended April 30, 1999 (unaudited) was
$(0.14)(2). Net investment income per share before reimbursement/waiver of
fees by the Investment Advisor and/or Administrator for Trust Shares for
the six months ended April 30, 1999 (unaudited) and the years ended October
31, 1998, 1997, 1996, 1995 and 1994 were $0.00, $0.10, $0.04, $0.13, $0.13,
and $0.04, respectively. Net investment income per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for A Prime Shares for the period ended April 30, 1999 (unaudited) was
$0.00(2). Net investment (loss) per share before reimbursement/waiver of
fees by the Investment Advisor and/or Administrator for B Prime Shares for
the period ended April 30, 1999 (unaudited) was $(0.15)(2).
See Notes to Financial Statements.
72
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
-------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
---------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$18.80 16.30%** $75,874 (0.50)%* 1.45%* 1.70%* 21%**
16.75 13.64% 66,541 0.39% 1.48% 1.73% 49%
15.18 15.88% 56,592 0.03% 1.60% 1.85% 45%
13.94 10.86% 35,144 0.78% 1.70% 1.98% 146%
12.92 (0.64)% 30,104 0.84% 1.76% 2.03% 48%
13.20 8.91% 32,887 0.69% 1.49% 1.79% 39%
18.79 16.00%** 618 (1.08)%* 2.04%* 2.54%* 21%**
19.04 16.60%** 404,974 0.02%* 0.93%* 1.18%* 21%**
17.00 14.32% 345,692 0.91% 0.96% 1.21% 49%
15.33 16.60% 265,124 0.57% 1.06% 1.32% 45%
14.01 11.51% 172,561 1.40% 1.08% 1.36% 146%
12.98 (0.02)% 89,614 1.36% 1.22% 1.48% 48%
13.20 8.91% 82,350 0.74% 1.43% 1.72% 39%
18.89 16.80%** 11 0.03%* 0.93%* 1.69%* 21%**
18.83 16.27%** 43 (0.88)%* 1.83%* 2.69%* 21%**
</TABLE>
73
<PAGE>
Small Cap Value Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------- --------------------------------------
Net Dividends
Net Net Realized and Dividends in Excess Dividends
Asset Value, Investment Unrealized Total from from Net of Net from Net
Beginning Income Gain (Loss) on Investment Investment Investment Realized Total
of Period (Loss)(B) Investments Operations Income Income Capital Gains Dividends
------------ ---------- -------------- ---------- ---------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $13.53 $ 0.01 $ 0.72 $ 0.73 $(0.01) $ -- $(1.27) $(1.28)
10/31/98 18.29 0.08 (2.08) (2.00) (0.08) -- (2.68) (2.76)
10/31/97 14.75 (0.04)(2) 5.72 5.68 -- -- (2.14) (2.14)
10/31/96(1) 12.68 0.01 2.95 2.96 (0.02) -- (0.87) (0.89)
10/31/95 11.06 (0.02) 2.21 2.19 -- -- (0.57) (0.57)
10/31/94 11.21 (0.01) 0.18 0.17 -- -- (0.32) (0.32)
Retail B
04/30/99(3) (unaudited) 13.65 (0.02) 0.64 0.62 -- -- (1.27) (1.27)
Trust
04/30/99 (unaudited) 13.61 0.03 0.72 0.75 (0.02) -- (1.27) (1.29)
10/31/98 18.37 0.11 (2.06) (1.95) (0.13) -- (2.68) (2.81)
10/31/97 14.76 0.01(2) 5.74 5.75 -- -- (2.14) (2.14)
10/31/96(1) 12.71 0.05 2.97 3.02 (0.05) (0.01) (0.91) (0.97)
10/31/95 11.07 0.01 2.21 2.22 (0.01) -- (0.57) (0.58)
10/31/94 11.21 0.02 0.17 0.19 (0.01) -- (0.32) (0.33)
A Prime
04/30/99(3) (unaudited) 13.59 0.02 0.71 0.73 (0.02) -- (1.27) (1.29)
B Prime
04/30/99(3) (unaudited) 13.59 (0.02) 0.71 0.69 -- -- (1.27) (1.27)
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund commenced operations on December 14, 1992 as a separate investment
portfolio (the "Predecessor Fund") of the Shawmut Funds. 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, 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.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the periods indicated.
(3) The Fund began issuing Retail B, A Prime and B Prime Shares on November 1,
1998.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares.
(B) Net investment income (loss) per share before reimbursement/waiver of fees
by the Investment Advisor and/or Administrator for Retail A Shares for the
six months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $0.00, $0.05, $(0.02)(2), $0.01,
$(0.08) and $(0.06), respectively. Net investment (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the period ended April 30, 1999 (unaudited), was
$(0.07). Net investment income (loss) per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for Trust Shares for
the six months ended April 30, 1999 (unaudited) and the years ended October
31, 1998, 1997, 1996, 1995 and 1994 were $0.03, $0.11, $0.05(2), $0.05,
$(0.03) and $(0.01), respectively. Net investment income per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for A Prime Shares for the period ended April 30, 1999 (unaudited) was
$0.01. Net investment (loss) per share before reimbursement/waiver of fees
by the Investment Advisor and/or Administrator for B Prime Shares for the
period ended April 30, 1999 (unaudited) was $(0.03).
See Notes to Financial Statements.
74
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
----------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Increase Net Assets, Including Including Excluding
(Decrease) in Net Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
Asset Value End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
- ----------------- --------------- --------------- ------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.55) $12.98 5.54%** $ 85,487 0.16%* 1.31%* 1.51%* 20%**
(4.76) 13.53 (12.52)% 87,781 0.38% 1.31% 1.45% 33%
3.54 18.29 43.58% 63,658 (0.25)% 1.30% 1.52% 52%
2.07 14.75 24.77% 34,402 0.08% 1.40% 1.55% 39%
1.62 12.68 21.27% 27,546 (0.19)% 1.35% 1.85% 32%
(0.15) 11.06 1.64% 19,764 (0.10)% 1.31% 1.84% 29%
(0.65) 13.00 5.05%** 605 (0.62)%* 2.09%* 3.63%* 20%**
(0.54) 13.07 5.71%** 241,318 0.52%* 0.95%* 0.95%* 20%**
(4.76) 13.61 (12.07)% 202,385 0.73% 0.96% 0.96% 33%
3.61 18.37 44.08% 189,257 0.09% 0.96% 0.96% 52%
2.05 14.76 25.22% 137,341 0.45% 1.05% 1.06% 39%
1.64 12.71 21.52% 121,364 0.07% 1.10% 1.35% 32%
(0.14) 11.07 1.86% 101,905 0.15% 1.06% 1.34% 29%
(0.56) 13.03 5.50%** 157 0.31%* 1.16%* 1.21%* 20%**
(0.58) 13.01 5.20%** 151 (0.36)%* 1.83%* 1.95%* 20%**
</TABLE>
75
<PAGE>
Small Company Equity Fund
Financial Highlights
For a Share outstanding throughout each period.
<TABLE>
<CAPTION>
Income from Investment Operations Less Distributions
------------------------------------- ------------------------------------
Net Net
Net Net Realized and Dividends Dividends Increase
Asset Value, Investment Unrealized Total from from Net from (Decrease)
Beginning Income Gain (Loss) on Investment Investment Net Realized Total in Net
of Period (Loss)(B) Investments Operations Income Capital Gains Dividends Asset Value
------------ ---------- -------------- ---------- ---------- ------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Retail A
04/30/99 (unaudited) $13.63 $(0.12) $ 0.35 $ 0.23 $ -- $ -- $ -- $ 0.23
10/31/98 20.94 (0.19) (4.86) (5.05) -- (2.26) (2.26) (7.31)
10/31/97 19.96 (0.18) 3.54 3.36 -- (2.38) (2.38) 0.98
10/31/96 16.28 (0.14) 3.99 3.85 -- (0.17) (0.17) 3.68
10/31/95 12.35 (0.09) 4.21 4.12 -- (0.19) (0.19) 3.93
10/31/94 12.41 (0.01) -- (0.01) -- (0.05) (0.05) (0.06)
Retail B
04/30/99 (unaudited) 13.39 (0.18) 0.37 0.19 -- -- -- 0.19
10/31/98 20.73 (0.30) (4.78) (5.08) -- (2.26) (2.26) (7.34)
10/31/97 19.91 (0.21) 3.41 3.20 -- (2.38) (2.38) 0.82
10/31/96(1) 17.27 (0.19)(2) 2.83 2.64 -- -- -- 2.64
Trust
04/30/99 (unaudited) 13.96 (0.08) 0.36 0.28 -- -- -- 0.28
10/31/98 21.32 (0.14) (4.96) (5.10) -- (2.26) (2.26) (7.36)
10/31/97 20.20 (0.11) 3.61 3.50 -- (2.38) (2.38) 1.12
10/31/96 16.38 (0.09) 4.08 3.99 -- (0.17) (0.17) 3.82
10/31/95 12.36 (0.04) 4.25 4.21 -- (0.19) (0.19) 4.02
10/31/94 12.41 -- -- -- -- (0.05) (0.05) (0.05)
</TABLE>
- ----------
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(2) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
(A) Calculation does not include the effect of any sales charge for Retail A
Shares and Retail B shares.
(B) Net investment (loss) per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Retail A Shares for the six
months ended April 30, 1999 (unaudited) and the years ended October 31,
1998, 1997, 1996, 1995 and 1994 were $(0.12), $(0.19), $(0.18), $(0.14),
$(0.09) and $(0.01), respectively. Net investment (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator
for Retail B Shares for the six months ended April 30, 1999, (unaudited)
the years ended October 31, 1998 and 1997 and the period ended October 31,
1996 were $(0.08), (0.30), $(0.24) and $(0.24)(2), respectively. Net
investment income (loss) per share before reimbursement/waiver of fees by
the Investment Advisor and/or Administrator for Trust Shares for six months
ended April 30, 1999 (unaudited) and the years ended October 31, 1998,
1997, 1996, 1995 and 1994 were $(0.19), $(0.14), $(0.11), $(0.09), $(0.04)
and $0.00, respectively.
See Notes to Financial Statements.
76
<PAGE>
<TABLE>
<CAPTION>
Ratios to Average Net Assets/Supplemental Data
--------------------------------------------------
Ratio of Net Ratio of Ratio of
Investment Operating Operating
Income Expenses Expenses
Net Assets, Including Including Excluding
Net Asset Value, End of Period Reimbursement/ Reimbursement/ Reimbursement/ Portfolio
End of Period Total Return(A) (in 000's) Waiver Waiver Waiver Turnover Rate
---------------- --------------- ------------- -------------- --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$13.86 1.69%** $ 80,712 (1.45)%* 1.53%* 1.53%* 70%**
13.63 (26.26)% 95,831 (1.13)% 1.46% 1.47% 78%
20.94 19.08% 135,593 (1.02)% 1.46% 1.48% 69%
19.96 23.97% 111,101 (1.03)% 1.57% 1.57% 82%
16.28 34.01% 45,668 (0.85)% 1.60% 1.64% 54%
12.35 (0.06)% 30,845 (0.40)% 1.31% 1.34% 35%
13.58 1.42%** 11,380 (2.09)%* 2.17%* 2.29%* 70%**
13.39 (26.72)% 12,565 (1.78)% 2.11% 2.16% 78%
20.73 18.23% 14,731 (1.76)% 2.20% 2.44% 69%
19.91 15.34%** 3,659 (1.50)%* 2.04%* 2.44%* 82%
14.24 2.01%** 211,749 (1.05)%* 1.13%* 1.13%* 70%**
13.96 (26.00)% 222,675 (0.76)% 1.09% 1.09% 78%
21.32 19.59% 310,751 (0.65)% 1.09% 1.12% 69%
20.20 24.69% 174,990 (0.60)% 1.14% 1.14% 82%
16.38 34.73% 94,831 (0.37)% 1.12% 1.12% 54%
12.36 0.02% 66,462 (0.35)% 1.27% 1.27% 35%
</TABLE>
77
<PAGE>
Notes to Financial Statements (unaudited)
1. Organization
The Galaxy Fund, a Massachusetts business trust (the"Trust"), is registered
under theInvestment Company Act of 1940, as amended, as an open-end management
investment company. As of the date of this report, the Trust offered twenty-nine
managed investment portfolios. The accompanying financial statements and
financial highlights are those of the Asset Allocation, Equity Income, Growth
and Income, Strategic Equity, Equity Value, Equity Growth, International Equity,
Small Cap Value and Small Company Equity Funds (individually, a "Fund,"
collectively, the "Funds") only.
Each Fund is authorized to issue five series of shares (Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares). Currently,
the Asset Allocation, Growth and Income, Equity Growth, International Equity and
Small Cap Value and Funds offer all five series of shares and the Equity Income,
Strategic Equity, Equity Value and Small Company ~Equity Funds offer Trust
Shares, Retail A Shares, and Retail B Shares. Trust Shares, Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares are substantially the same
except that (i) Retail A Shares are subject to a maximum 3.75% front-end sales
charge, (ii) A Prime Shares are subject to a maximum 5.50% front-end sales
charge, (iii) Retail B Shares and B Prime Shares are subject to a maximum 5.00%
contingent deferred sales charge, and (iv) each series of shares bears the
following series specific expenses: distribution fees and/or shareholder
servicing fees and transfer agency charges. Six years after purchase, Retail B
Shares will convert automatically to Retail A Shares and eight years after
purchase, B Prime Shares will convert automatically to A Prime 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
their 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 approximates 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 continue to qualify each year
as a "regulated investment company" under Subchapter M of the Internal Revenue
Code. By so qualifying, each Fund will not be subject to federal income taxes
78
<PAGE>
Notes to Financial Statements
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.
Repurchase Agreements: Each Fund may engage in repurchase agreement
transactions with institutions that the Trust's investment advisor has
determined are creditworthy pursuant to guidelines established by the Trust's
Board of Trustees. Each repurchase agreement transaction is recorded at cost
plus accrued interest. Each Fund requires that the securities collateralizing a
repurchase agreement transaction be transferred to the Trust's custodian in a
manner that is intended to enable the Fund to obtain those securities in the
event of a counterparty default. The value of the collateral securities is
monitored daily to ensure that the value of the collateral, including accrued
interest, equals or exceeds the repurchase price. Repurchase agreement
transactions involve certain risks in the event of default or insolvency of the
counterparty, including possible delays or restrictions upon a Fund's ability to
dispose of the underlying securities, and a possible decline in the value of the
underlying securities during the period while the Fund seeks to assert its
rights.
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 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 are 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 Advisor" or
"Fleet"), an indirect wholly-owned subsidiary of Fleet Financial Group, Inc.,
are parties to an investment advisory agreement under which the Investment
Advisor 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, Strategic Equity, Equity Value, Equity Growth,
Small Cap Value and Small Company Equity Funds (See Note 4).
The Trust pays the Investment Advisor 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.
The Investment Advisor has entered into a sub-advisory agreement with
Oechsle International Advisors, LLC ("Oechsle") with respect to the
International Equity Fund pursuant to which the Investment Advisor 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 net
assets in excess of $50 million.
The Trust and First Data Investor Services Group, Inc. ("Investor Services
Group"), a wholly-owned subsidiary of First Data Corporation, are parties to an
administration agreement under which Investor Services Group (the
"Administrator") provides services for a fee, computed daily and paid monthly,
at the annual rate, effective September 10, 1998, 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,
0.075% of the next $7 billion of combined average daily net assets, 0.065% of
the next $3 billion of combined average daily net assets, 0.06% of the next $3
billion of combined average daily net assets and 0.0575% of combined average
daily net assets in excess of $18 billion. Prior to September 10, 1998, Investor
Services Group received administration fees 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 0.075% of combined average daily net assets over $5
billion.
In addition, Investor Services Group also provides certain fund accounting,
custody administration and transfer agency services pursuant to certain fee
arrangements. Pursuant to such fee arrangements, Investor Services Group
compensates the Trust's custodian bank, The Chase Manhattan Bank for its
services.
First Data Distributors, Inc. (the "Distributor"), a wholly-owned
subsidiary of Investor Services Group and an indirect
79
<PAGE>
Notes to Financial Statements
wholly-owned subsidiary of First Data Corporation, serves as the distributor of
the Trust's Shares.
The Trust has adopted a shareholder services plan (the "Services Plan")
with respect to Retail A and Trust 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 services plan (the "12b-1 Plan") with
respect to Retail B Shares of the 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 and 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 customers of institutions. The Trust, under 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 customers of
institutions. For the six months ended April 30, 1999, the Funds paid fees under
the Services Plan and 12b-1 Plan as follows:
Services 12b-1 Plan
-------- ----------
Plan Services Distribution
---- -------- ------------
Asset Allocation $503,885 $90,236 $218,477
Equity Income 312,117 883 1,967
Growth and Income 333,006 80,315 189,638
Strategic Equity 7,621 973 2,134
Equity Value 376,348 38,769 88,020
Equity Growth 509,119 59,813 139,496
International Equity 99,621 378 1,251
Small Cap Value 122,835 354 767
Small Company Equity 121,025 17,505 41,471
The Trust has adopted a distribution plan (the "A Prime Shares Plan") with
respect to A Prime Shares of the Funds. Under the A Prime Shares Plan, the Trust
may pay the Distributor or another person for expenses and activities primarily
intended to result in the sale of A Prime Shares. Payments by the Trust under
the A Prime Shares Plan may not exceed the annual rate of 0.30% of the average
daily net assets attributable to each Fund's outstanding A Prime Shares. The
Trust, under direction of the Board of Trustees, is currently limiting each
Fund's payments under the A Prime Shares Plan to an annual rate of not more than
0.25% (on an annualized basis) of the average daily net asset value of each
Fund's outstanding A Prime Shares.
The Trust has adopted a distribution and services plan (the "B Prime Shares
Plan") with respect to the B Prime Shares of the Funds. Under the B Prime Shares
Plan, the Trust may pay (i) the Distributor or another person for expenses and
activities primarily intended to result in the sale of B Prime Shares, (ii)
institutions for shareholder liason services, and (iii) institutions for
administrative support services.Payments for distribution expenses may not
exceed the annual rate of 0.75% of the average daily net assets attributable to
each Fund's outstanding B Prime Shares. The fees paid to institutions 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 B Prime Shares owned of
record or beneficially by customers of institutions. 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 B Prime
Shares Plan to an aggregate fee of not more than 0.25% of the average daily net
asset value of B Prime Shares owned of record or beneficially by the customers
of institutions. For the period ended April 30, 1999, the Funds paid fees under
the A Prime Shares Plan and B Prime Shares Plan as follows:
A Prime B Prime Shares Plan
----------- -----------------------
Shares Plan Services Distribution
----------- -------- ------------
Asset Allocation $147 $261 $784
Equity Income N/A N/A N/A
Growth and Income 86 35 106
Strategic Equity N/A N/A N/A
Equity Value N/A N/A N/A
Equity Growth 62 57 172
International Equity 4 40 114
Small Cap Value 117 129 388
Small Company Equity N/A N/A N/A
Retail A Shares, Retail B Shares, Trust Shares, A Prime Shares and B Prime
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 Investor
80
<PAGE>
Notes to Financial Statements
Services Group for payments made to Fleet Bank, an affiliate of the Investment
Advisor, for performing certain sub-account and administrative functions on a
per account basis with respect to Trust Shares held by defined contribution
plans. These additional fees are based on the number of underlying participant
accounts. For the six months ended April 30, 1999, transfer agent charges for
each series were as follows:
Retail A Retail B Trust
-------- -------- --------
Asset Allocation $222,656 $ 48,099 $249,559
Equity Income 158,868 942 7,866
Growth and Income 206,060 60,093 214,918
Strategic Equity 2,120 271 13
Equity Value 229,696 29,287 170,502
Equity Growth 297,945 41,943 280,567
International Equity 114,134 1,148 121,166
Small Cap Value 141,037 2,135 45,141
Small Company Equity 161,751 28,360 242,190
A Prime B Prime
------- -------
Asset Allocation $110 $ 246
Equity Income N/A N/A
Growth and Income 93 72
Strategic Equity N/A N/A
Equity Value N/A N/A
Equity Growth 74 74
International Equity 29 97
Small Cap Value 25 25
Small Company Equity N/A N/A
Certain officers of the Trust may be officers of the Administrator. Such
officers receive no compensation from the Trust for serving in their respective
roles. No officer, director or employee of the Investment Advisor serves as an
officer, trustee or employee of the Trust. Effective March 5, 1998, 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 $40,000 per
annum plus certain other fees for attending or participating in meetings as well
as reimbursement for expenses incurred in attending meetings. Prior to March 5,
1998, each Trustee was entitled to receive for services as a trustee of the
Trust, VIP and 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.
Each Trustee is eligible to participate in The Galaxy Fund/The Galaxy VIP
Fund/Galaxy Fund II 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.
Expenses for the six months ended April 30, 1999 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
Fleet and/or its affiliates and/or the Administrator voluntarily agreed to
waive a portion of their fees and/or reimburse the Funds for certain expenses so
that total expenses would not exceed certain expense limitations established for
each Fund. The respective parties, at their discretion, may revise or
discontinue the voluntary waivers and/or expense reimbursements at any time. For
the six months ended April 30, 1999, the Investment Advisor and/or its
affiliates and/or the Administrator waived fees and/or reimbursed expenses with
respect to the Funds as follows:
Fund Fees Waived Expenses Reimbursed
---- ----------- -------------------
Asset Allocation $ 356 $ --
Equity Income -- 393
Growth and Income 165 79,880
Strategic Equity 77,594 --
Equity Growth 148 --
International Equity 559,996 481
Small Cap Value 51 90,152
Small Company Equity 7,432 --
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 thirty 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), Class N-Series 3
shares (Retail B Shares), Class N-shares (A Prime Shares) and Class N-Series 5
shares (B Prime Shares) Asset Allocation Fund; Class I-Series 1 shares (Trust
Shares), Class I-Series 2 shares (Retail A Shares), Class I-Series 3 shares
(Retail B Shares), Class I-Series 4 shares (A Prime Shares) and Class I-Series 5
shares (B Prime Shares) Equity Income Fund; Class U-Series 1 shares (Trust
Shares), Class U-Series 2 shares (Retail A Shares), Class U-Series 3 shares
(Retail B Shares), Class U-Series 4 shares (A Prime Shares) and Class U-Series 5
shares (B Prime Shares) Growth and Income Fund; Class AA-Series 1 shares (Trust
Shares), Class AA-Series 2 shares (Retail A Shares), Class AA-Series 3 shares
(Retail B Shares), Class AA-Series 4 shares (A Prime Shares) and Class AA-Series
5 shares (B Prime Shares) Strategic Equity Fund; Class C shares (Trust Shares),
Class C-Special Series 1 shares (Retail A Shares), Class C-Special Series 2
shares (Retail B Shares), Class C-Special Series 3 shares (A Prime Shares) and
Class C-Special Series 4 shares (B Prime Shares) Equity Value Fund; Class
H-Series 1 shares (Trust Shares), Class H-Series 2 shares (Retail A Shares),
Class H-Series 3 shares (Retail B Shares), Class H-Series 4
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<PAGE>
Notes to Financial Statements
shares (A Prime Shares) and Class H-Series 5 shares (B Prime Shares) - Equity
Growth Fund; Class G-Series 1 shares (Trust Shares), Class G-Series 2 shares
(Retail A Shares), Class G-Series 3 shares (Retail B Shares), Class G-Series 4
shares (A Prime Shares) and Class G-Series 5 shares (B Prime Shares)
International Equity Fund; Class X-Series 1 shares (Trust Shares), Class
X-Series 2 shares (Retail A Shares), Class X-Series 3 shares (Retail B Shares),
Class X-Series 4 shares (A Prime Shares) and Class X-Series 5 shares (B Prime
Shares) Small Cap Value Fund; and Class K-Series 1 shares (Trust Shares), Class
K-Series 2 shares (Retail A Shares), Class K-Series 3 shares (Retail B Shares),
Class K-Series 4 shares (A Prime Shares) and Class K-Series 5 shares (B Prime
Shares) Small Company 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, A Prime Shares bear the expense of payments under
the A Prime Shares Plan, B Prime Shares bear the expense of payments under the B
Prime Shares Plan and Trust Shares, Retail A Shares, Retail B Shares, A Prime
Shares and B Prime 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 a
proportionate fractional vote for each fractional 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, 1999 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------------------------- -----------------------------------
Fund U.S. Government Other U.S. Government Other
- ----- --------------- ------------ --------------- ------------
<S> <C> <C> <C> <C>
Asset Allocation ............$249,448,263 $157,435,782 $207,485,744 $134,725,781
Equity Income ............... -- 62,679,579 -- 77,226,131
Growth and Income ........... -- 49,488,538 -- 54,025,167
Strategic Equity ............ -- 36,592,759 -- 33,015,544
Equit Value ................. -- 199,258,606 -- 225,690,684
Equity Growth ............... -- 469,043,641 -- 473,760,702
International Equity ........ -- 98,719,547 -- 92,285,162
Small Cap ................... -- 76,357,072 -- 52,959,303
Small Company ............... -- 237,923,514 -- 272,016,938
</TABLE>
The aggregate gross unrealized appreciation and depreciation, net
unrealized appreciation (depreciation) and cost for all securities as computed
on a federal income tax basis, at April 30, 1999 for each Fund is as follows:
<TABLE>
<CAPTION>
Fund Appreciation (Depreciation) Net Cost
- ---- ------------ -------------- ------------- -------------
<S> <C> <C> <C> <C>
Asset Allocation ...........$ 146,373,453 $ (7,666,912) $ 138,706,541 $ 600,370,839
Equity Income .............. 93,917,322 (4,372,932) 89,544,390 270,543,010
Growth and Income .......... 166,409,968 (19,668,565) 146,741,403 486,831,220
Strategic Equity ........... 13,641,091 (3,266,175) 10,374,916 79,385,522
Equity Value ............... 147,172,233 (23,793,034) 123,379,199 494,129,859
Equity Growth .............. 545,614,176 (16,921,246) 528,692,930 894,493,308
International Equity ....... 129,792,302 (14,135,106) 115,657,196 370,895,560
Small Cap Value ............ 47,840,808 (55,776,202) (7,935,394) 332,268,105
Small Company Equity ....... 48,508,985 (44,734,221) 3,774,764 303,308,407
</TABLE>
At October 31, 1998, the Small Company Equity Fund had capital loss
carryforwards of $33,481,372, which expire in 2006.
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<PAGE>
Notes to Financial Statements
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. Change of Accountant:
On January 13, 1999, the Trust dismissed PricewaterhouseCoopers LLP ("PwC")
as the Funds' independent auditors by action of the Trust's Board of Trustees
upon the recommendation of a Special Committee of the Board. PwC's reports on
the Funds' financial statements for the fiscal years ended October 31, 1998 and
October 31, 1997 contained no adverse opinion or disclaimer of opinion nor were
they qualified or modified as to uncertainty, audit scope or accounting
principles. During the Funds' fiscal years ended October 31, 1998 and October
31, 1997 and the interim period commencing November 1, 1998 and ending January
13, 1999, (i) there were no disagreements with PwC on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure, which disagreements, if not resolved to the satisfaction of PwC,
would have caused it to make reference to the subject matter of the
disagreements in connection with its reports on the Funds' financial statements
for such years, and (ii) there were no "reportable events" of the kind described
in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of
1934, as amended.
On January 13, 1999, the Trust by action of its Board of Trustees upon the
recommendation of a Special Committee of the Board engaged Ernst & Young LLP
("E&Y") as the independent auditors to audit the Funds' financial statements for
the fiscal year ending October 31, 1999. During the Funds' fiscal years ended
October 31, 1998 and October 31, 1997 and the interim period commencing November
1, 1998 and ending January 13, 1999, neither the Trust, the Funds nor anyone on
their behalf has consulted E&Y on items which (i) concerned the application of
accounting principles to a specified transaction, either completed or proposed,
or the type of audit opinion that might be rendered on the Funds' financial
statements or (ii) concerned the subject of a disagreement (as defined in
paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as
described in paragraph (a)(1)(v) of said Item 304).
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