[FRONT COVER]
Semi-Annual Report
April 30, 2000
[COVER GRAPHICS: ACORN, COLUMN, GRADUATION CAP, HANDSHAKE]
GALAXY EQUITY FUNDS
Galaxy Funds
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
[Galaxy Funds Logo]
<PAGE>
CHAIRMAN'S MESSAGE
Dear Shareholder:
Enclosed is the Galaxy Equity Funds' semi-annual report for the six months
ended April 30, 2000. The report includes a Market Overview that explains the
different economic and market factors influencing stock investments during this
time. Following the Market Overview are individual reviews that describe how
Fleet Investment Advisors Inc. managed each of the Funds' portfolios in this
climate. Financial statements and a list of portfolio holdings for each of the
Funds as of April 30, 2000 appear at the end of the report.
With continuing economic recovery abroad and relatively low interest rates
and inflation at home, U.S. growth remained strong in the past six months. This
benefited firms in many stock sectors, and the major market indices performed
well by historic standards. Stock prices became increasingly volatile during the
period, however. Many individual shares experienced deep corrections, as others
rose to new highs. Against the backdrop of robust growth, investors were
concerned that attempts by the Federal Reserve to keep inflation in check with
higher interest rates could bring slower growth down the road. At the same time,
investors became increasingly concerned about the high prices of technology
shares.
Of course, market volatility, while unsettling, is part of the normal ups
and downs that occur with most investments. This is important to remember with
all the talk about the effect of "new economy" industries like technology on the
market behavior of stocks. In recent months the stock market has been caught up
in "momentum investing," in which the prices for many technology shares have
outstripped their fundamentals. Most analysts believe, however, that there will
always be demand for investments in the "old economy" sectors represented by
industrial and retail firms. Such demand was clearly evident in the final weeks
of the reporting period, when investors shifted out of technology stocks into
both other equities and bonds.
During this time, many investors decided to stick with the portfolio
strategies that they had set to meet long-term investment goals. One strategy
that has served investors well over time is diversification. By using the broad
array of portfolios offered by the Galaxy Funds, you can reduce the impact of
market volatility on your returns. You may also be able to stabilize returns by
diversifying across a range of market sectors and asset classes. Because
individual sectors and classes often move in different directions, such
diversification improves the chance that some part of your portfolio will
perform well within a given period.
With many stock, bond and money market funds from which to choose, the
Galaxy Funds can provide much of the diversification you need. Following the
completion of the reorganization of the Boston 1784 Funds into the Galaxy Funds
in June, you will have even more funds from which to choose. Your financial
professional can help you select a mix of funds that suits your particular
investment goals and make sure that your asset allocations remain in place
through any major market changes.
If you have any questions about the information in this report, please
contact the Galaxy Information Center toll-free at 1-877-BUY-GALAXY
(1-877-289-4252). You can also visit one of our investment professionals located
at Fleet Bank branches.
Sincerely,
/s/ Dwight E. Vicks, Jr.
Dwight E. Vicks, Jr.
Chairman of the Board of Trustees
[START SIDEBAR]
MUTUAL FUNDS:
(BULLET) ARE NOT BANK DEPOSITS
(BULLET) ARE NOT FDIC INSURED
(BULLET) ARE NOT OBLIGATIONS OF FLEET BANK
(BULLET) ARE NOT GUARANTEED BY FLEET BANK
(BULLET) ARE SUBJECT TO INVESTMENT RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED
[END SIDEBAR]
<PAGE>
MARKET OVERVIEW
EQUITY MARKET OVERVIEW
BY FLEET INVESTMENT ADVISORS INC.
In the face of increased volatility over the past six months, major stock
market indices again earned returns that were well above their historic
averages. Although short-term interest rates rose sharply during the reporting
period, stocks benefited from continued strength in the economy and additional
sharp gains in the technology sector for much of this time.
For the six months ended April 30, 2000, the Standard & Poor's 500 Index
(the "S&P 500 Index"), which represents large-cap stocks, earned a total return
of 7.18%. With strong gains from the technology sector, small-cap stocks
represented by the Russell 2000 Index had a total return of 18.72% for the
period. As continued improvements in economies abroad offset the negative
effects of higher interest rates and a sharp decline in foreign technology
shares at the end of the period, the Morgan Stanley Europe, Australasia and Far
East Index ("EAFE Index") earned a total return of 6.72%.
By taking profits in technology shares and other issues once they reached
our price targets, and investing the proceeds in a diversified mix of stocks
with greater price appreciation potential, we helped the Galaxy Equity Funds
make the most of market gains and buffered the value of the Funds' shares
against price declines at the end of the period.
MARKET LEADERSHIP BROADENS
After improving at an annualized rate of 5.5% in the third quarter of
1999, the Gross Domestic Product ("GDP"), which measures the output of U.S.
goods and services, improved by 7.3% in the fourth quarter. Although inflation
remained relatively moderate at an annual rate of about 2.6%, the Federal
Reserve (the "Fed") worried that the very strong pace of GDP growth would
eventually push inflation higher.
Because the short-term rate hikes of 25 basis points (0.25%) each imposed
in June and August of 1999 had not yet caused growth to slow, the Fed raised
rates another 25 basis points on November 16. Bond yields rose in response to
the rate hike and expectations for additional hikes in the future. From November
1, when the reporting period began until December 31, 1999, the yield for
long-term Treasuries had increased from 6.16% to 6.48%.
While bond prices fell during this time, stock prices continued to rally.
Stocks benefited both from the strong pace of economic growth with moderate
inflation and from a surge of "momentum investing" that drove technology issues
to stratospheric heights.
With GDP growth improving at a rate of 5.4% in the first quarter of 2000,
and tight employment and rising energy costs keeping upward pressure on
inflation, the Fed imposed two more rate hikes of 25 basis points each on
February 2 and March 21. These actions, which brought the total rate increase to
125 basis points since June 1999, drove short-term yields to their highest
levels since April 1991.
After rising through the middle of January, long-term yields began to
decline. As a federal budget surplus appeared that was larger than expected, the
Treasury Department cut back on issues of new debt and bought back many
longer-maturity bonds. Although long-term yields backed up in April on
anticipation of further rate hikes by the Fed, the yield for 30-year Treasuries
ended the reporting period at 5.96%.
Stock prices became increasingly volatile in this environment. For much of
the first quarter, a narrow group of technology issues continued to dominate
market performance, as momentum investing remained intact. By March, however,
the market had broadened significantly, as investors shifted from the very
overpriced stocks of the "new economy" into the more reasonably priced "old
economy" issues.
Despite the Fed's actions, economic growth still showed little sign of
slowing. The continued strength was due in large part to a stock market-related
"wealth effect" that offset the impact of higher interest costs on corporate
profits. With continued upward pressure on prices, however, the annual rate of
inflation had risen to 3.7% by March. As investors anticipated more rate hikes
by the Fed, bond yields moved sharply higher and prices fell for stocks
throughout the market. After returning 2.3% for the first quarter of 2000, the
S&P 500 Index lost 3.01% during the month of April. Following a return of 7.08%
for the first quarter, the Russell 2000 Index lost 6.02% in April. Foreign
stocks also suffered, driving the EAFE Index down by 5.26% in April.
[START SIDEBAR]
"WITH GDP GROWTH IMPROVING AT A RATE OF 5.4% IN THE FIRST QUARTER OF 2000, AND
TIGHT EMPLOYMENT AND RISING ENERGY COSTS KEEPING UPWARD PRESSURE ON INFLATION,
THE FED IMPOSED TWO MORE RATE HIKES OF 25 BASIS POINTS EACH ON FEBRUARY 2 AND
MARCH 21."
[END SIDEBAR]
2
<PAGE>
FOCUS ON VALUE AND DIVERSIFICATION
After outperforming for most of 1999, stocks of larger companies gave up
their market leadership to shares of smaller firms during the reporting period.
While investors remained focused on a narrow band of technology issues for much
of this time, by the end of the period there was much greater interest in the
significant values available in other industry sectors.
Given the extremely high prices for technology shares, we limited
investments for the Galaxy Equity Funds to technology issues that offered the
best relative value. In addition, we routinely took profits out of investments
in the sector that had performed well and put the proceeds into other technology
shares or stocks from other sectors with better price appreciation potential. As
always, we kept the Funds' portfolios diversified among a wide range of industry
groups. These strategies significantly enhanced the Funds' performance when
investors abandoned technology stocks for better-priced issues at the end of the
period.
MANY ATTRACTIVE OPPORTUNITIES
Unless economic growth slows substantially in coming months, or stock
prices move sharply lower, we expect the Fed to continue raising interest rates
through the summer of 2000. While investors anticipate when the Fed will raise
rates, and how large the rate hikes might be, stock prices should remain
relatively volatile.
While higher interest rates suggest slower growth and lower corporate
profits down the road, stocks should benefit in the near term from recent
strength in profits. The broadening of stock market performance in March and
April could continue if investors keep their rediscovered focus on stock
fundamentals. The volatility of the past several months has created many
attractive investment opportunities in quality stocks with strong growth
potential.
With the long-term outlook for stocks still quite bright, we plan to make
the most of these opportunities in the months ahead. As before, we expect to
stick with our long-term investment disciplines and invest in well-diversified
portfolios of high-quality securities with reasonable valuations. This should
continue to serve the Funds well in times of temporary market volatility.
[START SIDEBAR]
"AFTER OUTPERFORMING FOR MOST OF 1999, STOCKS OF LARGER COMPANIES GAVE UP THEIR
MARKET LEADERSHIP TO SHARES OF SMALLER FIRMS DURING THE REPORTING PERIOD."
[END SIDEBAR]
PERFORMANCE AT-A-GLANCE
AVERAGE ANNUAL TOTAL RETURNS -- TRUST SHARES
10 YEARS/
AS OF APRIL 30, 2000 6 MONTHS (DAGGER) 1 YEAR 5 YEARS LIFE OF FUND*
-------------------------------------------------------------------------------
Asset Allocation Fund
(INCEPTION DATE 12/30/91) 7.77% 7.50% 16.47% 12.48%
............................................................................
Equity Income Fund
(INCEPTION DATE 12/14/90) 4.75 1.99 17.27 14.51
............................................................................
Growth and Income Fund
(INCEPTION DATE 12/14/92) 8.34 4.35 18.86 16.34
............................................................................
Strategic Equity Fund
(INCEPTION DATE 3/4/98) 12.84 (1.03) N/A 5.85
............................................................................
Equity Value Fund
(INCEPTION DATE 9/1/88) 9.42 2.91 20.01 15.79
............................................................................
Equity Growth Fund
(INCEPTION DATE 12/14/90) 20.48 25.43 26.72 19.61
............................................................................
International Equity Fund
(INCEPTION DATE 12/30/91) 11.49 24.03 17.18 13.43
............................................................................
Small Cap Value Fund
(INCEPTION DATE 12/30/91) 16.22 16.56 17.55 14.48
............................................................................
Small Company Equity Fund
(INCEPTION DATE 12/30/91) 51.02 71.07 18.81 15.07
----------------------------------------------------------------------------
(DAGGER) Unannualized total returns.
* Return figures shown are average annual total returns for the 10 years
ended April 30, 2000 for the Equity Value Fund and for the period from
inception through April 30, 2000 for each other Fund.
3
<PAGE>
PERFORMANCE AT-A-GLANCE (CONTINUED)
AVERAGE ANNUAL TOTAL RETURNS -- RETAIL A SHARES*
10 YEARS/
AS OF APRIL 30, 2000 6 MONTHS (DAGGER) 1 YEAR 5 YEARS LIFE OF FUND****
--------------------------------------------------------------------------------
Asset Allocation Fund
(INCEPTION DATE 12/30/91) 3.63% 3.26% 15.38% 11.83%
.........................................................................
Equity Income Fund**
(INCEPTION DATE 12/14/90) 0.58 (2.30) 15.86 13.74
.........................................................................
Growth and Income Fund
(INCEPTION DATE 2/12/93) 4.14 0.22 17.64 15.81
.........................................................................
Strategic Equity Fund
(INCEPTION DATE 3/4/98) 8.35 (5.10) N/A 3.51
.........................................................................
Equity Value Fund**
(INCEPTION DATE 9/1/88) 5.20 (1.25) 18.66 15.10
.........................................................................
Equity Growth Fund**
(INCEPTION DATE 12/14/90) 15.76 20.23 25.24 18.83
.........................................................................
International Equity Fund
(INCEPTION DATE 12/30/91) 7.07 18.80 15.64 12.48
.........................................................................
Small Cap Value Fund
(INCEPTION DATE 12/30/91) 11.56 11.71 16.25 13.89
.........................................................................
Small Company Equity Fund
(INCEPTION DATE 12/30/91) 45.11 63.96 17.32 14.17
-------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS -- PRIME A SHARES***
AS OF APRIL 30, 2000 6 MONTHS (DAGGER) 1 YEAR 5 YEARS LIFE OF FUND
------------------------------------------------------------------------------
Asset Allocation Fund
(INCEPTION DATE 11/1/98) 1.82% 1.47% N/A 11.69%
............................................................................
Growth and Income Fund
(INCEPTION DATE 11/1/98) 2.34 (1.42) N/A 11.36
............................................................................
Equity Growth Fund
(INCEPTION DATE 11/1/98) 13.77 18.33 N/A 28.07
............................................................................
International Equity Fund
(INCEPTION DATE 11/1/98) 5.22 16.85 N/A 23.12
............................................................................
Small Cap Value Fund
(INCEPTION DATE 11/1/98) 9.68 9.98 N/A 10.46
----------------------------------------------------------------------------
(DAGGER) 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.
** Retail A Shares of the Equity Value Fund and Equity Growth Fund were
first issued during the fiscal year ended October 31, 1991 and Retail
A Shares of the Equity Income Fund were first issued during the fiscal
year ended October 31, 1992. The returns for prior periods represent
the returns for Trust Shares of the Funds. Prior to November 1, 1993,
the returns for Retail A Shares and Trust Shares of the Funds were the
same because each series of shares had the same expenses.
*** Return figures include the effect of the maximum 5.50% front-end sales
charge.
**** Return figures shown are average annual total returns for the 10 years
ended April 30, 2000 for the Equity Value Fund and for the period from
inception through April 30, 2000 for each other Fund.
4
<PAGE>
PERFORMANCE AT-A-GLANCE (CONTINUED)
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- RETAIL B SHARES**
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, 2000 CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED*
(DAGGER) (DAGGER)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Asset Allocation Fund
(INCEPTION DATE 3/4/96) 7.25% 2.25% 6.51% 1.51% 13.56% 13.40%
..............................................................................................................................
Equity Income Fund
(INCEPTION DATE 11/1/98) 4.18 (0.22) 0.90 (3.35) 9.12 6.88
..............................................................................................................................
Growth and Income Fund
(INCEPTION DATE 3/4/96) 7.82 2.82 3.39 (1.48) 15.88 15.73
..............................................................................................................................
Strategic Equity Fund
(INCEPTION DATE 3/4/98) 12.32 7.40 (2.02) (6.31) 4.58 3.23
..............................................................................................................................
Equity Value Fund
(INCEPTION DATE 3/4/96) 8.92 4.21 1.82 (2.58) 16.58 16.43
..............................................................................................................................
Equity Growth Fund
(INCEPTION DATE 3/4/96) 19.81 14.81 24.02 19.02 23.95 23.83
..............................................................................................................................
International Equity Fund
(INCEPTION DATE 11/1/98) 10.86 5.86 22.72 17.72 26.63 24.24
..............................................................................................................................
Small Cap Value Fund
(INCEPTION DATE 11/1/98) 15.58 10.58 15.31 10.31 13.67 11.17
..............................................................................................................................
Small Company Equity Fund
(INCEPTION DATE 3/4/96) 50.23 45.23 69.37 64.37 13.88 13.72
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS -- PRIME B SHARES**
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, 2000 CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED* CHARGE DEDUCTED CHARGE DEDUCTED*
(DAGGER) (DAGGER)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Asset Allocation Fund
(INCEPTION DATE 11/1/98) 7.35% 2.35% 6.61% 1.61% 11.02% 8.46%
..............................................................................................................................
Growth and Income Fund
(INCEPTION DATE 11/1/98) 7.85 2.85 3.50 (1.37) 14.79 12.28
..............................................................................................................................
Equity Growth Fund
(INCEPTION DATE 11/1/98) 19.91 14.91 24.26 19.26 32.32 29.99
..............................................................................................................................
International Equity Fund
(INCEPTION DATE 11/1/98) 10.93 5.93 22.83 17.83 26.91 24.52
..............................................................................................................................
Small Cap Value Fund
(INCEPTION DATE 11/1/98) 15.73 10.73 15.46 10.46 13.88 11.37
------------------------------------------------
</TABLE>
(DAGGER) Unannualized total returns.
* As if shares were redeemed at end of period.
** Retail B Shares and Prime B Shares are subject to a 5.00% contingent
deferred sales charge if shares are redeemed within the first year.
The charge decreases to 4.00%, 3.00%, 3.00%, 2.00% and 1.00% for
redemptions made during the second through sixth years, respectively.
Retail B Shares automatically convert to Retail A Shares after six
years and Prime B Shares automatically convert to Prime A 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
<PAGE>
PORTFOLIO REVIEWS
GALAXY ASSET ALLOCATION FUND
BY DON JONES
PORTFOLIO MANAGER
As stock prices became increasing volatile over the past six months, the
Galaxy Asset Allocation Fund benefited from a relatively defensive position that
included a sizable allocation to bonds. Although rising interest rates pushed
bond prices lower for part of the period, the price declines were not as large
as those for stocks. In the meantime, the higher yields that bonds enjoyed added
to Fund returns. Of further benefit were strong gains by many of the Fund's
stock investments.
For the six months ended April 30, 2000, Trust Shares of the Galaxy Asset
Allocation Fund earned a total return of 7.77%. For the same period, its Retail
A Shares returned 7.66% before deducting the maximum 3.75% front-end sales
charge, and its Retail B Shares returned 7.25% before deducting the maximum
5.00% contingent deferred sales charge. Prime A Shares of the Fund returned
7.74% before deducting the maximum 5.50% front-end sales charge, and Prime B
Shares of the Fund returned 7.35% before deducting the maximum 5.00% contingent
deferred sales charge. (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 total return of 8.12% for the average
flexible fund tracked by Lipper Analytical Services Inc. ("Lipper"). During the
same time, the S&P 500 Index, which tracks the performance of stocks only,
returned 7.18%.
TECHNOLOGY SHARES PERFORM WELL
Throughout the period we maintained a well-diversified portfolio of stocks
with reasonable prices. At the end of 1999, strong gains from the Fund's
technology, retail and oil-services positions helped offset the disappointing
performance of stocks in the drug and financial sectors. During this time we
added selectively to the Fund's technology, consumer retail, financial and
electronics positions, while taking profits in selected industrial, office
equipment, beverage and paper firms.
The Fund's technology positions continued to perform well in the first
months of 2000, offsetting further disappointments from drug and financial
shares. We continued to add selectively to the Fund's technology holdings, while
also boosting investments in biotech firms. We used cash reserves and proceeds
from the sale of drug and food shares to pay for these purchases. Within the
financial sector, we traded shares with less potential for appreciation for
several new investment opportunities. In the bond portfolio, which remained
approximately 40% of assets throughout the period, we added investments in
corporate bonds whose prices had become particularly attractive.
WATCHING FOR NEW OPPORTUNITIES
The Fund's cash position at April 30, 2000 was 10% of equities, down from
15% at the start of the reporting period. If stock prices decline further, we
may start to move money from the bond portfolio into stocks as well, to take
advantage of new investment opportunities. In the meantime, we may continue to
add corporate bonds when we find issues with appealing prices. As always, we
expect to invest in higher-quality issues, which should outperform as higher
interest rates increase the possibility of slower economic growth and lower
corporate profits.
In the equity portfolio, a shift from drug to biotech stocks should serve
the Fund well, given the promising growth potential for biotech shares. Our
broadening into more reasonably priced technology areas like telecommunications,
storage and connection devices could further enhance returns. In the months
ahead we plan to sell oil-service shares and other issues that have performed
well, which would increase the resources available for new investments.
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
6
<PAGE>
PORTFOLIO REVIEWS
GALAXY ASSET ALLOCATION FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
CORPORATE NOTES AND BONDS 15%
COMMON STOCKS 55%
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES 3%
U.S. GOVERNMENT AND AGENCY OBLIGATIONS 20%
FOREIGN BONDS 1%
COMMERCIAL PAPER & NET OTHER ASSETS
AND LIABILITIES 6%
GALAXY ASSET ALLOCATION FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY GALAXY GALAXY
ASSET ASSET ASSET ASSET ASSET
ALLOCATION ALLOCATION ALLOCATION ALLOCATION ALLOCATION
FUND- FUND- FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST PRIME A PRIME B
INDEX SHARES SHARES SHARES SHARES SHARES
12/30/91 10000 9625 10000
1992 10295 9899 10285
1993 11830 11124 11558
1994 12284 10900 11335
1995 15528 13452 10000 14019
1996 19270 15728 10271 16429
1997 25458 18911 12454 19785
1998 31186 21134 14314 22115 9450 10000
1999 38978 23581 15618 24736 10366 10391
4/30/00 41777 25387 16865 26657 11169 11292
* 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 PRIME A SHARES AND
PRIME B SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE THE EFFECT OF
THE MAXIMUM 3.75% FRONT-END SALES CHARGE. PERFORMANCE FIGURES FOR PRIME A
SHARES INCLUDE THE EFFECT OF THE MAXIMUM 5.50% FRONT-END SALES CHARGE.
PERFORMANCE FIGURES FOR RETAIL B AND PRIME B SHARES REFLECT THE DEDUCTION OF
THE 2.00% CONTINGENT DEFERRED SALES CHARGE (APPLICABLE TO SHARES REDEEMED
DURING THE FIFTH YEAR AFTER PURCHASE) AND THE 4.00% CONTINGENT DEFERRED SALES
CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE SECOND YEAR AFTER PURCHASE),
RESPECTIVELY, AS IF SHARES WERE REDEEMED ON APRIL 30, 2000. THE S&P 500 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.
GALAXY EQUITY INCOME FUND
BY ED KLISIEWICZ
PORTFOLIO MANAGER
With prices for many technology stocks far exceeding the earnings
prospects of their firms in recent months, the Galaxy Equity Income Fund
remained underweighted in technology shares. While this strategy reduced the
Fund's participation in the sector's gains during the period, it helped protect
the value of Fund shares when the technology sector finally weakened. In the
meantime, the Fund enjoyed strong returns from many individual technology
holdings. These returns, plus good performance from other positions in the
portfolio, helped the Fund compare favorably during the reporting period with
other funds that have similar investment objectives.
For the six months ended April 30, 2000, the Fund's Trust Shares had a
total return of 4.75%. Over the same time, its Retail A Shares had a total
return of 4.50% before deducting the maximum 3.75% front-end sales charge, and
its Retail B Shares had a total return of 4.18% 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.) Those
returns compare to a total return of 0.65% for the average equity income fund
tracked by Lipper. Over the same time, the S&P 500 Index had a total return of
7.18%.
MANY INDIVIDUAL CONTRIBUTIONS
As technology stocks soared at the end of 1999, the Fund benefited from
strong gains by technology positions such as Hewlett-Packard, Intel, and Cisco
Systems. A rebound by its consumer staples shares further enhanced returns,
along with the strong dividends from its holdings. At this point, we took
advantage of new investment opportunities that arose in banking and insurance
firms. We paid for these purchases, and for additions to several technology
positions, with profits we took in the retail and telecommunications sectors.
The Fund's technology stocks continued to perform well in the first months
of 2000. The earlier additions of financial shares proved beneficial, as
holdings such as Firstar Corp. and American International Group rebounded. These
performances helped offset disappointing returns from an overweighted utility
position, which was hurt by rising interest rates. With the profits from
technology issues and other holdings that had
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
7
<PAGE>
PORTFOLIO REVIEWS
performed well, we added shares with better price potential. By the end of the
period, these and earlier changes had increased the portion of technology
positions and reduced the representation of consumer staples and consumer
cyclical shares.
WELL POSITIONED FOR MARKET BROADENING
The Fund's widely diversified portfolio of high-quality stocks should
perform well in coming months if the recent broadening in market leadership
continues. Investors seem to have realized that many of the "old economy" stocks
they had shunned in the past few quarters have values that are quite attractive.
If interest rates continue to rise, as we expect, stocks with higher dividends
could outperform as investors seek additional stability in a volatile market.
GALAXY EQUITY INCOME FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
U.S. GOVERNMENT AND AGENCY OBLIGATIONS,
REPURCHASE AGREEMENT & NET OTHER
ASSETS AND LIABILITIES 5%
BASIC MATERIALS 4%
CONSUMER STAPLES 18%
CONSUMER CYCLICAL 10%
UTILITIES 11%
INDUSTRIAL 5%
TECHNOLOGY 20%
ENERGY 10%
FINANCE 17%
GALAXY EQUITY INCOME FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY
EQUITY EQUITY EQUITY
INCOME INCOME INCOME
FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST
INDEX SHARES SHARES SHARES
12/14/90 10000 9625 10000
1991 12358 11127 11561
1992 13589 12207 12683
1993 15615 13654 14186
1994 16215 14055 14615
1995 20497 17179 17948
1996 25437 20445 21475
1997 33605 25204 26585
1998 41166 29836 10000 31526
1999 52243 31988 10444 34010
4/30/00 55994 33428 11047 35626
* 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 4.00% CONTINGENT DEFERRED
SALES CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE SECOND YEAR AFTER
PURCHASE) AS IF SHARES WERE REDEEMED ON APRIL 30, 2000. THE S&P 500 INDEX 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.
GALAXY GROWTH AND INCOME FUND
BY GREG MILLER
PORTFOLIO MANAGER
In a climate where investor sentiment regarding technology stocks
dominated market returns, the Galaxy Growth and Income Fund benefited from a
selection of technology shares that outperformed the sector as a whole. Of
further help was the Fund's diverse mix of reasonably priced investments, which
responded well as market leadership broadened in the second half of the
reporting period.
For the six months ended April 30, 2000, the Fund's Trust Shares earned a
total return of 8.34%. Over the same time, its Retail A Shares earned 8.18%,
before deducting the maximum 3.75% front-end sales charge, and its Retail B
Shares earned 7.82% before deducting the maximum 5.00% contingent deferred sales
charge. Prime A Shares of the Fund earned 8.29% before deducting the maximum
5.50% front-end sales charge and Prime B Shares of the Fund earned 7.85% before
deducting the maximum 5.00% contingent deferred sales charge. (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 results compare to a return of 3.87% for the average multi-cap value
fund tracked by Lipper. For the same period, the S&P 500 Index, which represents
a more growth-oriented universe of stocks, had a total return of 7.18%.
STRONG STOCK SELECTION
Because the prices for technology shares had far outstripped their
historic relationship with company earnings, many technology stocks were
inappropriate for our value-oriented investment strategy. As a result, the Fund
was underweighted in technology shares, versus its benchmark, during the period.
While this strategy diminished returns early in the period, when technology
[PHOTO OMITTED]
[START SIDEBAR]
GREG MILLER HAS MANAGED THE GALAXY GROWTH AND INCOME FUND SINCE JULY OF 1998. HE
HAS MANAGED EQUITY PORTFOLIOS SINCE 1988.
[END SIDEBAR]
8
<PAGE>
PORTFOLIO REVIEWS
stocks experienced extraordinary gains, it helped returns later on when the
sector declined sharply. Meanwhile, the Fund benefited from the outperformance
of the technology stocks it did own that represented good value, such as Texas
Instruments. Of further benefit was an overweighted position in energy stocks,
which outperformed as oil prices rose. Sizable gains by individual energy issues
like Baker Hughes and Schlumberger also contributed positively to returns. Good
stock selection in the health care area -- with strong performances by companies
like American Home Products, Elan, and Pharmacia -- further enhanced returns.
During the period we took profits in technology, health care, banking and energy
stocks that performed well and added to positions with better price potential.
Toward the end of the period we also made several opportunistic trades within
the basic materials sector.
CONTINUED VOLATILITY AHEAD
In the last few months, investors seem to have returned to more
traditional methodologies for stock valuations. It is not yet clear, however,
whether the market's greater attention to value will continue. Historically,
higher interest rates have been particularly damaging to the better-yielding
stocks that comprise a large share of the value-oriented universe. In addition,
value stocks tend to underperform when the economic outlook is deteriorating.
As a result, we expect stock prices for value-oriented issues to remain
volatile. In such a climate we plan to look for new investment opportunities
that can outperform when investor interest in value strengthens.
GALAXY GROWTH AND INCOME FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
CONVERTIBLE PREFERRED, OTHER COMMON
STOCKS & NET OTHER ASSETS AND LIABILITIES 17%
CONSUMER STAPLES 17%
CAPITAL GOODS 9%
TECHNOLOGY 21%
ENERGY 11%
FINANCE 13%
CONSUMER CYCLICAL 12%
GALAXY GROWTH AND INCOME FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY GALAXY GALAXY
GROWTH AND GROWTH AND GROWTH AND GROWTH AND GROWTH AND
INCOME INCOME INCOME INCOME INCOME
FUND- FUND- FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST PRIME A PRIME B
INDEX SHARES SHARES SHARES SHARES SHARES
12/14/92 10000 9625 10000
1993 10890 9861 10256
1994 11548 10548 10993
1995 14601 12316 10000 12871
1996 16612 15497 10221 16264
1997 10785 18318 11986 19255
1998 29324 25231 16387 26598 9450 10000
1999 36669 26641 16912 28180 10847 10898
4/30/00 39302 28821 18350 30530 11747 11892
*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
PRIME A SHARES AND PRIME B SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES
INCLUDE THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE. PERFORMANCE
FIGURES FOR PRIME A SHARES INCLUDE THE EFFECT OF THE MAXIMUM 5.50% FRONT-END
SALES CHARGE. PERFORMANCE FIGURES FOR RETAIL B AND PRIME B SHARES REFLECT THE
DEDUCTION OF THE 2.00% CONTINGENT DEFERRED SALES CHARGE (APPLICABLE TO SHARES
REDEEMED DURING THE FIFTH YEAR AFTER PURCHASE) AND THE 4.00% CONTINGENT
DEFERRED SALES CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE SECOND YEAR
AFTER PURCHASE), RESPECTIVELY, AS IF SHARES WERE REDEEMED ON APRIL 30, 2000.
THE S&P 500 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.
9
<PAGE>
PORTFOLIO REVIEWS
GALAXY STRATEGIC EQUITY FUND
BY PETER B. HATHAWAY, CFA
PORTFOLIO MANAGER
Over the past six months, we maintained the value-driven growth discipline
of the Galaxy Strategic Equity Fund. Under this discipline, we seek growth at a
reasonable price by emphasizing stocks in depressed market sectors that have
high forecast returns. Fund returns lagged early in the period, as the already
dearly valued large-cap and technology stocks led the market to new highs.
Later, with the valuations of these stocks stretched to their limits, our
emphasis on reasonable valuations began to work and the Fund significantly
outperformed its market benchmarks.
For the six months ended April 30, 2000, Trust Shares of the Fund earned a
total return of 12.84%. For the same period, its Retail A Shares returned 12.62%
before deducting the maximum 3.75% front-end sales charge, and its Retail B
Shares returned 12.32% 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 multi-cap core fund tracked by Lipper
earned a total return of 13.58% and the S&P 500 Index returned 7.18%.
GROWTH AT A REASONABLE PRICE
During the reporting period, we witnessed two distinct market
environments. At first, gains were driven by a few large-cap and technology
stocks. As investors focused on the "new economy" sectors and became captivated
by price momentum and high earnings growth at any price, many stocks reached
prices that discounted an overly pessimistic view of their future growth and
return potential. Although this was frustrating for value-oriented investors, it
provided many good investment opportunities. By March 2000, investors began
questioning the high valuations of many technology stocks and showed renewed
interest in energy and financial issues, as well as stocks of medium-sized
companies that were selling at distressed prices.
The Fund's stock selection of and emphasis on energy and consumer staples
shares significantly enhanced returns during this time. While the Fund's
selection of technology stocks outperformed their sector, the Fund's technology
weighting was half that of its benchmark due to valuation concerns. Consumer
cyclical and financial stocks held in the Fund's portfolio did not contribute to
results, but continue to offer high return potential.
During the period, we focused on upgrading the growth potential, earnings
visibility and investment stature of the stocks held by the Fund. In doing so,
we gave considerable emphasis to top-quality growth stocks that became
undervalued due to short-term earnings disappointments. In purchasing four new
technology stocks for the Fund, we emphasized information-technology service
companies. We also made additions to existing investments in the consumer
cyclical and finance sectors. Toward the end of the period we took profits in
selected energy stocks that had benefited from higher oil and gas prices. When
the period closed, the Fund was overweighted in consumer staples and energy
stocks and underweighted in technology shares and the larger mega-cap stocks of
the S&P 500.
BRIGHTER OUTLOOK FOR OUT-OF-FAVOR ISSUES
The major stock indices remain overvalued due to the dominance of a few
top-tier large-cap and technology stocks that are still discounting
unsustainable earnings growth 10 to 15 years into the future. By contrast, the
Fund has a diversified mix of high-quality companies with reasonable valuations.
The Fund's price-to-sales, price-to-earnings and price-to-book values are
40% below those for the market as a whole. The Fund's top ten holdings, which
comprise 31% of its portfolio, are valued at 17 times earnings, in line with
their projected long-term earnings growth potential of 17%. By contrast, the ten
largest stocks in the S&P 500, which represent 25% of the Index, sell at 35
times earnings. This is twice their long-term estimated earnings growth
potential.
We believe that the stocks in the Fund provide a well-balanced portfolio.
Two-thirds of the holdings are large-cap stocks and one-third are mid-cap
stocks. Over one-half are stocks of growth companies, with the remainder equally
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
10
<PAGE>
PORTFOLIO REVIEWS
divided between cyclical and value-oriented issues. The 12- to 18-month
forecast returns for these shares are more favorable than they have been for
some time and now offer good absolute as well as relative value. Barring an
economic recession, we believe the Fund is well positioned for a market
sensitive to reasonable valuations based on fundamental earnings prospects.
GALAXY STRATEGIC EQUITY FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
BASIC MATERIALS 6%
OTHER COMMON STOCKS 2%
REPURCHASE AGREEMENT & NET
OTHER ASSETS AND LIABILITIES 5%
CONSUMER STAPLES 19%
INDUSTRIAL 12%
TECHNOLOGY 17%
ENERGY 15%
FINANCE 13%
CONSUMER CYCLICAL 11%
GALAXY STRATEGIC EQUITY FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY
STRATEGIC STRATEGIC STRATEGIC
EQUITY EQUITY EQUITY
FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST
INDEX SHARES SHARES SHARES
3/4/98 10000 9625 10000 10000
4/30/98 10619 9788 9579 10201
10/31/98 10577 9263 9048 9667
4/30/99 12937 10925 10792 11422
10/31/99 13291 9564 9373 10019
4/30/2000 14245 10771 10678 11305
*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 3.00% CONTINGENT DEFERRED SALES CHARGE (APPLICABLE TO SHARES
REDEEMED DURING THE THIRD YEAR AFTER PURCHASE) AS IF SHARES WERE REDEEMED ON
APRIL 30, 2000. THE S&P 500 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.
GALAXY EQUITY VALUE FUND
BY G. JAY EVANS, CFA
PORTFOLIO MANAGER
With a surge of strength at the end of 1999, many technology stocks moved
to precarious triple-digit price-to-earnings multiples. Historically, such
valuation extremes have led to increased market volatility and leadership
reversals, as investors shift to issues that are less extended. Thus, the
resilience of the technology stock leadership in the first quarter of 2000
surprised many observers. By the second quarter, however, following a sell-off
by stocks in the Nasdaq Index, there was a more defensive tone to the market.
With the cost of labor, money, and energy rising, investors became more
interested in the value available in capital goods, financial and energy shares.
Although an underweighting in technology shares hurt the performance of the
Galaxy Equity Value Fund early in the reporting period, strong stock selection
helped the Fund outperform when value returned to favor.
For the six months ended April 30, 2000, Trust Shares of the Fund earned a
total return of 9.42%. For the same period, its Retail A Shares returned 9.28%
before deducting the maximum 3.75% front-end sales charge, and its Retail B
Shares returned 8.92% 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
multi-cap value fund tracked by Lipper returned 3.87% and the S&P 500 Index,
which is more representative of growth-oriented firms, returned 7.18%.
GOOD SELECTIVITY
The investment discipline of the Fund prevented us from overpaying for the
network infrastructure and "dot-com" stocks of the Internet that helped drive
the technology sector to dizzying heights. Outstanding selectivity, however,
more than made up for our underweighting in technology shares.
The energy sector also contributed to results, due to a rise in oil prices
and the Fund's overweighted position in oil- and gas-drilling and
completion-service companies. Good selectivity in the financial sector,
excellent exposure in communications shares, and an underweighting in
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
11
<PAGE>
PORTFOLIO REVIEWS
the weaker consumer staples sector further enhanced the Fund's performance.
OUTLOOK FOR VALUE
Investors have recently warmed up to value, partly as a defensive move and
partly due to the acceleration of earnings growth for many of these companies.
In contrast, the growth segment of the S&P 500 Index is experiencing a
deceleration in earnings that is inconsistent with its precariously high
valuations. Such fundamentals can not be ignored for long.
Furthermore, as the Fed convinces investors that the economy will slow to
a more sustainable pace, confidence should increase in the longer-term outlook
for value stocks. As this happens, the Fund should benefit from its
bargain-hunting valuation models and the strong effort of its research team.
GALAXY EQUITY VALUE FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHICOMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
BASIC MATERIALS 4%
UTILITIES 4%
REPURCHASE AGREEMENT & NET
OTHER ASSETS AND LIABILITIES 3%
FINANCE 13%
ENERGY 14%
CONSUMER CYCLICAL 21%
CONSUMER STAPLES 9%
TECHNOLOGY 23%
INDUSTRIAL 9%
GALAXY EQUITY VALUE FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY
EQUITY EQUITY EQUITY
VALUE VALUE VALUE
FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST
INDEX SHARES SHARES SHARES
9/1/88 10000 9625 10000
1988 10731 10019 10410
1989 13552 11441 11887
1990 12537 10362 10766
1991 16737 13517 14045
1992 18404 14282 14839
1993 21148 17307 17982
1994 21960 18167 18889
1995 27760 21948 10000 22915
1996 34450 26663 10081 27968
1997 45512 33233 11898 36321
1998 55752 41216 16645 43453
1999 69669 43486 17169 46074
4/30/2000 74671 47523 18818 50412
*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 2.00% CONTINGENT DEFERRED SALES
(APPLICABLE TO SHARES REDEEMED DURING THE FIFTH YEAR AFTER PURCHASE) AS IF
SHARES WERE REDEEMED ON APRIL 30, 2000. THE S&P 500 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.
GALAXY EQUITY GROWTH FUND
BY BOB ARMKNECHT
PORTFOLIO MANAGER
Strong stock selection and overweightings in key industry sectors helped the
Galaxy Equity Growth Fund far outpace both its market benchmark and other funds
with similar investment objectives for the six months ended April 30, 2000.
For the period the Fund's Trust Shares earned a total return of 20.48%.
Over the same time, its Retail A Shares earned 20.27% before deducting the 3.75%
maximum front-end sales charge, and its Retail B Shares earned 19.81% before
deducting the 5.00% maximum contingent deferred sales charge. Prime A Shares of
the Fund earned 20.37% before deducting the maximum 5.50% front-end sales
charge, and the Fund's Prime B Shares earned 19.91% before deducting the 5.00%
maximum contingent deferred sales. (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 average return for large-cap core funds tracked
by Lipper was 10.80% and the S&P 500 Index earned a total return of 7.18%.
A BROAD EXPOSURE TO GROWTH
For most of the reporting period, investors favored sectors with strong
potential for earnings growth, such as technology, energy, and healthcare. They
also showed a preference for industry leaders, where we tend to focus the Fund's
investments.
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
12
<PAGE>
PORTFOLIO REVIEWS
Over the six-month period, the Fund maintained a broad exposure to growth
areas of the economy, with overweightings in several of these areas. Of
particular benefit was an overweighting in energy services stocks, like Cooper
Cameron and Transocean Sedco Forex, Inc., which magnified a substantial
outperformance by individual energy positions. An overweighting in health care
stocks, like Elan and American Home Products, which also outperformed, further
enhanced Fund returns. The outperformance by holdings in the technology,
consumer staples, and communications areas, where the Fund had neutral
weightings, made additional contributions to returns. These positives far offset
disappointing returns from individual issues like Lucent Technologies, Tellabs,
Bristol-Myers Squibb and Procter & Gamble.
Over the course of the period we trimmed energy and technology stocks that
had done well. We put some of the proceeds from these sales into drug and retail
shares that looked attractive and used the rest to increase the Fund's cash
position.
CONTINUED FOCUS ON QUALITY
In recent months we have seen investors place greater emphasis on higher
quality companies. By moving assets from shares that have become overpriced for
issues of quality businesses with better price potential, we have maintained a
diversified mix of investments that should continue to serve the Fund well if
market leadership broadens further.
We expect to maintain a larger than usual cash position in coming weeks as
we wait for stock prices to digest the higher interest rates imposed by the Fed.
Once opportunities develop we plan to deploy those reserves into other quality
firms with strong growth potential.
GALAXY EQUITY GROWTH FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
REPURCHASE AGREEMENT & NET
OTHER ASSETS AND LIABILITIES 4%
CONVERTIBLE PREFERRED & OTHER
COMMON STOCKS 3%
UTILITIES 5%
FINANCE 9%
TECHNOLOGY 33%
INDUSTRIAL 9%
ENERGY 11%
CONSUMER CYCLICAL 12%
CONSUMER STAPLES 14%
GALAXY EQUITY GROWTH FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY GALAXY GALAXY
EQUITY EQUITY EQUITY EQUITY EQUITY
GROWTH GROWTH GROWTH GROWTH GROWTH
FUND- FUND- FUND- FUND- FUND-
S&P 500 RETAIL A RETAIL B TRUST PRIME A PRIME B
INDEX SHARES SHARES SHARES SHARES SHARES
12/14/90 10000 9625 10000
1991 12358 11683 12139
1992 13589 12747 13244
1993 15615 13840 14380
1994 16215 14494 15070
1995 20497 18051 10000 18849
1996 23319 21753 10102 22813
1997 30807 28629 11856 30151
1998 37739 34224 16812 36099 9450 10000
1999 52243 41897 20175 44474 12028 12179
4/30/2000 55994 50390 24311 53584 14478 14804
*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 PRIME A SHARES AND
PRIME B SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE THE EFFECT OF
THE MAXIMUM 3.75% FRONT-END SALES CHARGE. PERFORMANCE FIGURES FOR PRIME A
SHARES INCLUDE THE EFFECT OF THE MAXIMUM 5.50% FRONT-END SALES CHARGE.
PERFORMANCE FIGURES FOR RETAIL B AND PRIME B SHARES REFLECT THE DEDUCTION OF
THE 2.00% CONTINGENT DEFERRED SALES CHARGE (APPLICABLE TO SHARES REDEEMED
DURING THE FIFTH YEAR AFTER PURCHASE) AND THE 4.00% CONTINGENT DEFERRED SALES
CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE SECOND YEAR AFTER PURCHASE),
RESPECTIVELY, AS IF SHARES WERE REDEEMED ON APRIL 30, 2000. THE S&P 500 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.
13
<PAGE>
PORTFOLIO REVIEWS
GALAXY INTERNATIONAL EQUITY FUND
BY THOMAS M. O'NEILL, CHIEF INVESTMENT OFFICER, FLEET INVESTMENT ADVISORS INC.,
AND OECHSLE INTERNATIONAL ADVISORS, LLC, SUB-ADVISOR
A strong performance from many individual holdings helped the Galaxy
International Equity Fund earn returns for the six months ended April 30, 2000
that far outpaced those for its market benchmark. However, with sizable
investments in "new economy" stocks from the technology, telecommunications and
media sectors, which corrected sharply at the end of the reporting period, the
Fund's performance fell short of the average for other funds with similar
investment objectives.
During the six months ended April 30, 2000, the Fund's Trust Shares earned
a total return of 11.49%. Over the same time, its Retail A Shares earned 11.23%,
before deducting the maximum 3.75% front-end sales charge, and its Retail B
Shares earned 10.86% before deducting the maximum 5.00% contingent deferred
sales charge. The Fund's Prime A Shares earned a total return of 11.34% before
deducting the maximum 5.50% front-end sales charge, and the Fund's Prime B
Shares earned a total return of 10.93% before deducting the maximum 5.00%
contingent deferred sales charge. (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 14.16% for the average international
fund tracked by Lipper and 6.72% for the EAFE Index.
COUNTRY WEIGHTINGS HELP RETURNS
As improving economies abroad pushed foreign stock prices higher at the
end of 1999, the Fund benefited from overweighted positions in better-performing
markets like Germany, Italy and Sweden and underweightings in lesser-performing
markets like the United Kingdom and Switzerland. Strong stock selection in both
Europe and Japan further enhanced returns, particularly holdings in
telecommunications firms.
The Fund's technology positions continued to perform well at the start of
2000, but then declined sharply in the months that followed, as rising interest
rates made foreign stock prices more volatile. The Fund continued to benefit
during this time from its underweighted positions in the United Kingdom and
Switzerland, which again underperformed, and an overweighted position in the
better-performing German market. These positives offset the negative effect of
an overweighted position in Italy, which suffered a significant loss during
April.
Throughout the period we took profits in technology stocks and other
shares that had performed well and invested the proceeds in shares with better
price potential. We continued to focus on companies with significant
opportunities for improving returns that are not dependent on lower interest
rates. In both Japan and Europe, we are emphasizing firms that can benefit from
corporate restructuring.
NEW OPPORTUNITIES
While the current correction in foreign equity prices has been painful, it
has created a more rational assessment of earnings prospects for both the "new"
and "old" segments of the economy. Going forward, we expect foreign stock prices
to be driven more by company fundamentals than market momentum. This should help
to reduce the divergent performance of new economy and old economy shares. We
expect to continue to look for investment opportunities in old economy issues
that have been previously oversold and in new economy issues that may experience
a further correction.
[PHOTO OMITTED]
[START SIDEBAR]
THOMAS M. O'NEILL IS CHIEF INVESTMENT OFFICER OF FLEET INVESTMENT ADVISORS INC.,
THE FUND'S ADVISOR. 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 $15 BILLION IN ASSETS UNDER
MANAGEMENT.
[END SIDEBAR]
14
<PAGE>
PORTFOLIO REVIEWS
GALAXY INTERNATIONAL EQUITY FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
REPURCHASE AGREEMENT & NET
OTHER ASSETS AND LIABILITIES 6%
CANADA 4%
FAR EAST 30%
EUROPE 41%
UNITED KINGDOM 17%
LATIN AMERICA 2%
GALAXY INTERNATIONAL EQUITY FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
GALAXY GALAXY GALAXY GALAXY GALAXY
INTERNATIONAL INTERNATIONAL INTERNATIONAL INTERNATIONAL INTERNATIONAL
EQUITY EQUITY EQUITY EQUITY EQUITY
FUND- FUND- FUND- FUND- FUND-
EAFE RETAIL A RETAIL B TRUST PRIME A PRIME B
INDEX SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C> <C>
12/30/91 10000 9625 10000
1992 8680 9297 9660
1993 11970 11748 12207
1994 13134 12795 13294
1995 13125 12713 13291
1996 14499 14093 14820
1997 15212 16332 17280
1998 17561 19778 10000 20998 9450 10000
1999 20349 23949 12341 25623 12260 12374
4/30/2000 21716 26638 13836 28568 13650 13882
</TABLE>
*SINCE INCEPTION ON 12/30/91 FOR TRUST AND RETAIL A SHARES. SINCE INCEPTION ON
11/1/98 FOR RETAIL B, PRIME A AND PRIME B SHARES. PERFORMANCE FIGURES FOR
RETAIL A SHARES INCLUDE THE EFFECT OF THE MAXIMUM 3.75% FRONT-END SALES CHARGE.
PERFORMANCE FIGURES FOR PRIME A SHARES INCLUDE THE EFFECT OF THE MAXIMUM 5.50%
FRONT-END SALES CHARGE. PERFORMANCE FIGURES FOR RETAIL B AND PRIME B SHARES
REFLECT THE DEDUCTION OF THE 4.00% CONTINGENT DEFERRED SALES CHARGE (APPLICABLE
TO SHARES REDEEMED DURING THE SECOND YEAR AFTER PURCHASE) AS IF SHARES WERE
REDEEMED ON APRIL 30, 2000. THE EAFE 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.
GALAXY SMALL CAP VALUE FUND
BY PETER LARSON
PORTFOLIO MANAGER
In the face of a market dominance by technology stocks over the past six
months, the Galaxy Small Cap Value Fund benefited from changes in its technology
weighting that made the most of near-term fluctuations. Of further help were
strong performances by many individual technology positions, as well as holdings
in other industry sectors. With these positives, the Fund outpaced other funds
that had similar investment objectives for the reporting period.
Over the six months ended April 30, 2000, the Fund's Trust Shares earned a
total return of 16.22%. Over the same time, its Retail A Shares earned 15.94%
before deducting the maximum 3.75% front-end sales charge, and its Retail B
Shares earned 15.58% before deducting the maximum 5.00% contingent deferred
sales charge. Prime A Shares of the Fund earned a total return of 16.07% before
deducting the maximum 5.50% front-end sales charge, and Prime B Shares of the
Fund earned a total return of 15.73% before deducting the maximum 5.00%
contingent deferred sales charge. (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 13.61% earned for the period by the average
small-company value fund tracked by Lipper. The Russell 2000 Index, which
represents more growth-oriented shares, earned a total return of 18.72% during
this time.
TAKING PROFITS IN TECH SHARES
With investors focused on technology stocks at the end of 1999, growth
shares generally outperformed value-oriented issues. In this climate, the Fund
benefited from a sizable position in technology holdings. Of further benefit
were holdings in companies involved in mergers, particularly in the consumer
cyclical sector, as well as an underweighting in the poorly performing financial
group. As individual technology shares reached our price targets, we took
profits in those issues and bought health care issues and other stocks that
offered better value.
The large weighting in technology shares continued to benefit the Fund at
the beginning of
[PHOTO OMITTED]
[START SIDEBAR]
PETER LARSON HAS MANAGED THE GALAXY SMALL CAP VALUE FUND, AND ITS PREDECESSOR,
SINCE 1993. HE HAS MANAGED SMALL COMPANY PORTFOLIOS SINCE 1981.
[END SIDEBAR]
15
<PAGE>
PORTFOLIO REVIEWS
2000. An overweighting in energy stocks, which enjoyed strong gains as oil
prices rose, also contributed positively to returns. We continued to shift
profits from technology stocks into other positions, including holdings in the
utility and financial sectors. By the end of the reporting period, we had cut
the Fund's technology weighting significantly. This helped protect the value of
Fund shares when the prices of technology shares fell sharply in March and
April.
SHIFT IN LEADERSHIP POSSIBLE
In the final months of the period, the market finally recognized the many
attractive investment opportunities available in value-oriented issues. This,
combined with a sharp sell off in small-cap growth stocks, may signal a change
in leadership within the small-cap sector that should benefit the Fund's
value-driven portfolio strategies. In an environment where the prospect for
slower growth could cause a pullback in all market sectors, we plan to continue
recycling profits that we take in issues that have outperformed into positions
whose prices are more attractive.
GALAXY SMALL CAP VALUE FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
ENERGY 11%
UTILITIES 3%
TECHNOLOGY 9%
CORPORATE BOND, REPURCHASE AGREEMENT
& NET OTHER ASSETS AND LIABILITIES 5%
FINANCE 13%
CONSUMER CYCLICAL 16%
BASIC MATERIALS 1%
INDUSTRIAL 22%
CONSUMER STAPLES 20%
GALAXY SMALL CAP VALUE FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY GALAXY GALAXY
SMALL CAP SMALL CAP SMALL CAP SMALL CAP SMALL CAP
VALUE VALUE VALUE VALUE VALUE
FUND- FUND- FUND- FUND- FUND-
RUSSELL RETAIL A RETAIL B TRUST PRIME A PRIME B
2000 INDEX SHARES SHARES SHARES SHARES SHARES
12/14/92 10000 9625 10000
1993 10890 10789 11212
1994 11548 10967 11420
1995 14601 13299 13878
1996 16612 15799 16568
1997 17299 17416 18264
1998 24634 25988 10000 27367 9450 10000
1999 22152 22026 10004 23325 9998 10018
4/30/2000 26299 25538 11716 27109 11605 11748
*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, PRIME A AND PRIME B
SHARES. PERFORMANCE FIGURES FOR RETAIL A SHARES INCLUDE THE EFFECT OF THE
MAXIMUM 3.75% FRONT-END SALES CHARGE. PERFORMANCE FIGURES FOR PRIME A SHARES
INCLUDE THE EFFECT OF THE MAXIMUM 5.50% FRONT-END SALES CHARGE. PERFORMANCE
FIGURES FOR RETAIL B AND PRIME B SHARES REFLECT THE DEDUCTION OF THE 4.00%
CONTINGENT DEFERRED SALES CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE
SECOND YEAR AFTER PURCHASE) AS IF SHARES WERE REDEEMED ON APRIL 30, 2000. 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.
16
<PAGE>
PORTFOLIO REVIEWS
GALAXY SMALL COMPANY EQUITY FUND
BY STEVE BARBARO
PORTFOLIO MANAGER
The strong upward momentum that propelled technology stocks higher in the
past six months proved particularly beneficial to the small company growth
sector. With an overweighting in technology shares and exceptional performances
from individual technology holdings, among others, the Fund earned exceptional
returns for the reporting period that far outpaced those for its market
benchmark and other funds with similar investment objectives.
For the six months ended April 30, 2000, Trust Shares of the Fund had a
total return of 51.02%. For the same period, its Retail A Shares earned 50.77%
before deducting the maximum 3.75% sales charge, and its Retail B Shares earned
50.23% 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 period, small-cap growth funds
tracked by Lipper earned a total return of 37.55% and small-cap stocks in the
Russell 2000 Index returned 18.72%.
MAXIMIZING TECHNOLOGY SECTOR GAINS
As technology stocks led the market's advance at the end of 1999, the Fund
benefited from its emphasis on leading technology companies, which outperformed
the technology sector as a whole. A solid performance by the Fund's health care
positions, as well as an underweighting in the lesser-performing financial
group, also helped returns. In this environment, we traded technology shares
that had done well for issues in the sector with better value. We also reduced
investments in consumer-oriented firms, especially those in interest-sensitive
industries.
As technology stocks continued to dominate market performance in the first
months of 2000, the Fund again benefited from its overweighting in the sector
and from exceptional performance by its communications shares. The
underweighting in financial stocks continued to help with the further increase
in interest rates. Such positives offset the negative results of an
underweighting in the strongly performing biotech group. We continued to take
profits in technology issues that had increased their market capitalizations and
bought shares of energy, consumer, financial, transportation and capital goods
firms that we felt were more attractive. The reduced weighting in technology
served the Fund well when the sector corrected sharply at the end of the
reporting period.
FURTHER GAINS FROM TECHNOLOGY SHARES LIKELY
Technology shares have taken a much-needed breather from their
extraordinary gains of the past year. Given the growth opportunities that still
exist for the sector, we expect further gains in months to come. The pace of
these gains will likely be much slower than before, however. As the technology
group regains its footing, there are many other positions in the Fund that
should perform well. We plan to use any further market fluctuations to take
advantage of new investment opportunities that may arise.
[PHOTO OMITTED]
[START SIDEBAR]
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.
[END SIDEBAR]
17
<PAGE>
PORTFOLIO REVIEWS
GALAXY SMALL COMPANY EQUITY FUND
DISTRIBUTION OF TOTAL NET ASSETS AS OF APRIL 30, 2000
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
OTHER COMMON STOCKS, REPURCHASE
AGREEMENT & NET OTHER ASSETS
AND LIABILITIES 8%
FINANCE 3%
BASIC MATERIALS 1%
CONSUMER STAPLES 15%
INDUSTRIAL 16%
ENERGY 8%
TECHNOLOGY 36%
CONSUMER CYCLICAL 13%
GALAXY SMALL COMPANY EQUITY FUND
GROWTH OF $10,000 INVESTMENT*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
GALAXY GALAXY GALAXY
SMALL SMALL SMALL
COMPANY COMPANY COMPANY
EQUITY FUND- EQUITY FUND- EQUITY FUND-
S&P 500 RETAIL A RETAIL B TRUST
INDEX SHARES SHARES SHARES
12/30/91 10000 9625 10000
1992 10650 8460 8790
1993 14101 11944 12410
1994 14058 11937 12413
1995 16638 15997 10000 16723
1996 19400 19832 11789 20862
1997 25090 23616 9874 24937
1998 28015 24913 14344 26356
1999 52243 31988 10332 34010
4/30/2000 62023 30164 17065 32198
*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 2.00% CONTINGENT DEFERRED SALES
CHARGE (APPLICABLE TO SHARES REDEEMED DURING THE FIFTH YEAR AFTER PURCHASE) AS
IF SHARES WERE REDEEMED ON APRIL 30, 2000. 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
<PAGE>
SHAREHOLDER SERVICES
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 services. 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, PRIME A AND PRIME B
SHARE INVESTORS. PLEASE CONSULT YOUR FUND PROSPECTUS.
SHARES OF THE FUNDS ARE DISTRIBUTED THROUGH PROVIDENT DISTRIBUTORS, INC., MEMBER
NASD AND SIPC. INVESTMENT SPECIALISTS ARE REGISTERED REPRESENTATIVES OF
FISSECURITIES, INC., FLEET ENTERPRISES, INC., OR QUICK & REILLY, INC., MEMBERS
NASD AND SIPC.
[START SIDEBAR]
"A WELL-BALANCED ASSET ALLOCATION PLAN MAY HELP TO CONTROL YOUR RISK WHILE
PURSUING YOUR GOALS."
[END SIDEBAR]
19
<PAGE>
SHAREHOLDER INFORMATION
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 Provident 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, FLEETBOSTON FINANCIAL CORPORATION 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.
[GRAPHIC OMITTED]
This report was printed on recycled paper.
[START SIDEBAR]
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
Jylanne Dunne
VICE PRESIDENT AND
ASSISTANT TREASURER
William Greilich
VICE PRESIDENT
W. Bruce
McConnel, Esq.
SECRETARY
INVESTMENT ADVISOR
Fleet Investment
Advisors Inc.
75 State Street
Boston, MA
02109
DISTRIBUTOR
Provident
Distributors, Inc.
3200 Horizon Drive
King of Prussia,
Pennsylvania 19406
ADMINISTRATOR
PFPC Inc.
4400 Computer Drive
Westborough,
Massachusetts 01581-5108
AUDITOR
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
LEGAL COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103
[END SIDEBAR]
20
<PAGE>
ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 55.37%
TECHNOLOGY - 19.76%
200,000 America OnLine, Inc.*............ $ 11,962,500
80,000 Amgen, Inc.*..................... 4,480,000
180,000 Automatic Data Processing, Inc... 9,686,250
400,000 Cisco Systems, Inc.*............. 27,731,250
150,000 Dell Computer Corp.*............. 7,518,750
180,000 EMC Corp.*....................... 25,008,750
90,000 Genzyme Corp.*................... 4,393,125
90,000 Hewlett-Packard Co............... 12,150,000
140,000 Intel Corp....................... 17,753,750
35,000 JDS Uniphase Corp.*.............. 3,631,250
170,000 Lucent Technologies, Inc......... 10,571,875
70,000 Microsoft Corp.*................. 4,882,500
100,000 Qwest Communications International,
Inc.*............................ 4,337,500
50,000 Sun Microsystems, Inc.*.......... 4,596,875
------------
148,704,375
------------
CONSUMER STAPLES - 8.40%
230,000 Boston Scientific Corp.*......... 6,095,000
200,000 Coca-Cola Enterprises, Inc....... 4,262,500
250,000 Elan Corp. Plc, ADR*............. 10,718,750
100,000 Forest Laboratories, Inc., Class A* 8,406,250
110,000 Gillette Co...................... 4,070,000
30,000 Lilly (Eli) & Co................. 2,319,375
120,000 Merck & Co., Inc................. 8,340,000
120,000 PepsiCo, Inc..................... 4,402,500
140,000 Pfizer, Inc...................... 5,897,500
50,000 Procter & Gamble Co.............. 2,981,250
50,000 Warner-Lambert Co................ 5,690,625
------------
63,183,750
------------
CONSUMER CYCLICAL - 8.00%
100,000 AMR Corp......................... 3,406,250
150,000 Comcast Corp., Class A*.......... 6,009,375
210,000 CVS Corp......................... 9,135,000
300,000 Home Depot, Inc.................. 16,818,750
200,000 McDonald's Corp.................. 7,625,000
420,000 Southwest Airlines Co............ 9,108,750
80,000 Target Corp...................... 5,325,000
100,000 Walgreen Co...................... 2,812,500
------------
60,240,625
------------
FINANCE - 7.30%
160,000 American International Group, Inc. 17,550,000
85,000 Chase Manhattan Corp............. 6,125,312
270,000 Citigroup, Inc................... 16,048,125
130,000 Fannie Mae....................... 7,840,625
100,000 Firstar Corp..................... 2,487,500
120,000 Wells Fargo & Co................. 4,927,500
------------
54,979,062
------------
SHARES VALUE
----------- ------------
ENERGY - 5.52%
160,000 Anadarko Petroleum Corp.......... $ 6,950,000
25,000 Baker Hughes, Inc................ 795,312
40,000 Chevron Corp..................... 3,405,000
105,612 Exxon Mobil Corp................. 8,204,732
200,000 Halliburton Co................... 8,837,500
150,000 Schlumberger, Ltd................ 11,484,375
40,000 Transocean Sedco Forex, Inc...... 1,880,000
------------
41,556,919
------------
INDUSTRIAL - 3.91%
90,000 General Electric Co.............. 14,152,500
60,000 Honeywell International, Inc..... 3,360,000
260,000 Tyco International, Ltd.......... 11,943,750
------------
29,456,250
------------
UTILITIES - 2.48%
280,000 MCI WorldCom, Inc.*.............. 12,722,500
135,000 SBC Communications, Inc.......... 5,914,687
------------
18,637,187
------------
TOTAL COMMON STOCKS ............. 416,758,168
------------
(Cost $244,215,440)
PAR VALUE
---------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 20.37%
U.S. TREASURY BONDS - 8.44%
$ 1,500,000 7.63%, 02/15/07 ................. 1,520,550
2,200,000 12.00%, 08/15/13 ................ 2,945,470
3,450,000 7.50%, 11/15/16 ................. 3,871,417
3,660,000 8.75%, 05/15/17 ................. 4,579,575
7,220,000 8.88%, 08/15/17 ................. 9,151,206
2,500,000 8.88%, 02/15/19 ................. 3,202,850
1,000,000 8.13%, 08/15/19 ................. 1,203,240
750,000 8.50%, 02/15/20 ................. 936,037
6,000,000 8.75%, 05/15/20 ................. 7,667,880
6,200,000 7.88%, 02/15/21 ................. 7,346,442
5,900,000 8.13%, 08/15/21 ................. 7,175,698
3,250,000 7.63%, 11/15/22 ................. 3,786,250
5,100,000 7.13%, 02/15/23 ................. 5,637,693
3,500,000 6.13%, 11/15/27 ................. 3,469,970
1,200,000 5.25%, 11/15/28 ................. 1,054,068
------------
63,548,346
------------
U.S. TREASURY NOTES - 2.98%
1,900,000 5.63%, 02/28/01 ................. 1,888,068
1,500,000 5.63%, 05/15/01 ................. 1,488,000
1,500,000 5.88%, 10/31/01 ................. 1,483,050
810,000 6.13%, 12/31/01 ................. 802,929
700,000 6.25%, 10/31/01 ................. 695,870
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
PAR VALUE VALUE
----------- ------------
U.S. TREASURY NOTES (CONTINUED)
$ 2,415,000 7.25%, 05/15/04 ................. $ 2,471,463
3,615,000 7.25%, 08/15/04 ................. 3,703,748
1,500,000 5.88%, 11/15/04 ................. 1,460,745
1,675,000 6.50%, 10/15/06 ................. 1,674,045
90,000 6.63%, 05/15/07 ................. 90,724
1,085,000 6.13%, 08/15/07 ................. 1,063,994
3,800,000 5.63%, 05/15/08 ................. 3,614,750
2,200,000 4.75%, 11/15/08 ................. 1,967,966
------------
22,405,352
------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 2.78%
214,798 6.50%, 05/15/13, Pool # 473566... 206,541
188,533 6.50%, 06/15/13, Pool # 476470... 181,167
290,736 6.50%, 08/15/13, Pool # 486453... 279,377
77,985 6.50%, 11/15/13, Pool # 454228... 74,938
192,014 6.50%, 11/15/13, Pool # 477529... 184,512
842,192 6.50%, 11/15/13, Pool # 483663... 809,287
243,288 6.50%, 11/15/13, Pool # 493623... 233,783
2,712,780 7.00%, 11/15/13, Pool # 780921... 2,659,365
450,000 6.50%, 05/01/15, Pool # 4596..... 432,212
347,032 9.00%, 12/15/17, Pool # 780201... 361,021
503,541 7.50%, 01/15/26, Pool # 417191... 495,671
191,874 6.50%, 01/15/29, Pool # 482909... 179,701
2,380,858 6.00%, 03/15/29, Pool # 476986... 2,161,367
922,092 6.50%, 03/15/29, Pool # 464613... 863,595
1,034,652 6.50%, 04/15/29, Pool # 472682... 969,013
920,035 6.50%, 04/15/29, Pool # 483349... 861,668
1,754,375 6.50%, 04/15/29, Pool # 488234... 1,643,078
2,446,241 6.50%, 05/15/29, Pool # 487199... 2,291,051
966,377 7.00%, 05/15/29, Pool # 507929... 929,230
992,336 7.00%, 09/15/29, Pool # 510394... 954,191
1,540,294 7.50%, 09/15/29, Pool # 466164... 1,514,771
978,494 7.50%, 09/15/29, Pool # 478707... 962,281
98,029 7.50%, 09/15/29, Pool # 510409... 96,405
617,482 7.50%, 09/15/29, Pool # 510424... 607,251
971,540 7.50%, 09/15/29, Pool # 511482... 955,441
------------
20,906,917
------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 2.46%
2,000,000 5.00%, 01/15/04 ................. 1,855,360
4,800,000 6.25%, 07/15/04 ................. 4,626,000
2,800,000 6.88%, 01/15/05 ................. 2,758,980
1,000,000 7.05%, 06/08/05 ................. 975,920
3,725,000 6.63%, 09/15/09 ................. 3,552,719
3,200,000 7.00%, 03/15/10 ................. 3,136,416
683,625 7.00%, 04/01/29, Pool # C00756,
Gold .......................... 654,571
999,900 7.50%, 01/01/30, Pool # C35185,
Gold .......................... 979,272
------------
18,539,238
------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 2.08%
1,000,000 6.74%, 09/19/01 , MTN............ 997,640
1,000,000 6.49%, 01/19/06 , MTN............ 954,180
PAR VALUE VALUE
----------- ------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION (CONTINUED)
$ 579,616 6.00%, 01/01/09, Pool # 269929... $ 553,475
2,055,000 6.38%, 06/15/09 ................. 1,927,056
1,000,000 7.25%, 01/15/10 ................. 997,440
156,780 6.00%, 06/01/14, Pool # 484967... 146,785
1,752,283 6.00%, 06/01/14, Pool # 499193... 1,640,575
766,750 6.00%, 06/01/14, Pool # 500131... 717,870
1,676,001 7.00%, 03/01/15, Pool # 535200... 1,636,716
214,250 6.50%, 01/01/26, Pool # 303676... 201,127
2,028,295 8.00%, 04/01/30, Pool # 526425... 2,025,111
2,000,200 8.00%, 04/01/30, Pool # 531218... 1,997,060
471,905 8.00%, 05/01/30, Pool # 534205... 471,164
850,685 8.00%, 04/01/30, Pool # 534220... 849,349
500,100 8.00%, 04/01/30, Pool # 537131... 499,315
------------
15,614,863
------------
FEDERAL HOME LOAN BANK - 0.65%
4,900,000 6.75%, 02/01/02 ................. 4,875,500
------------
FEDERAL FARM CREDIT BANK - 0.59%
4,500,000 5.88%, 07/02/01 ................. 4,455,000
------------
U.S. GOVERNMENT-BACKED BOND - 0.39%
3,000,000 State of Israel
7.75%, 03/15/10.................. 2,936,250
------------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS .......... 153,281,466
------------
(Cost $155,137,414)
CORPORATE NOTES AND BONDS - 14.49%
200,000 AT&T Corp.
7.00%, 05/15/05 ................. 195,500
3,500,000 AT&T Corp.
6.50%, 03/15/29 ................. 2,966,250
3,250,000 Associates Corp. of North America
Senior Note
6.63%, 05/15/01 ................. 3,233,750
1,000,000 Bank One Wisconsin, Bank Note, MTN
6.35%, 03/19/01 ................. 992,500
700,000 Barclays Bank Plc
7.40%, 12/15/09 ................. 672,875
1,200,000 Becton Dickinson & Co.
7.15%, 10/01/09 ................. 1,159,500
675,000 Becton Dickinson & Co., Debenture
7.00%, 08/01/27 ................. 614,250
525,000 Becton Dickinson & Co., Debenture
6.70%, 08/01/28 ................. 460,031
200,000 Burlington Northern Santa Fe Corp.
Debenture
6.88%, 02/15/16 ................. 176,500
600,000 Burlington Northern Santa Fe Corp.
7.00%, 12/15/25 ................. 514,500
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
PAR VALUE VALUE
----------- ------------
CORPORATE NOTES AND BONDS (CONTINUED)
$ 1,000,000 Caterpillar Financial Services Corp.,
Series F, MTN
5.47%, 09/12/01 ................. $ 975,000
1,700,000 Caterpillar Financial Services Corp.,
Series F, MTN
6.00%, 05/23/02 ................. 1,655,375
2,250,000 CIT Group, Inc.
7.38%, 03/15/03 ................. 2,233,125
2,000,000 Coca-Cola Enterprises, Inc.
6.38%, 08/01/01 ................. 1,972,500
1,000,000 Coca-Cola Enterprises, Inc., Debenture
7.13%, 08/01/17 ................. 931,250
2,300,000 Colgate-Palmolive Co. Series C, MTN
5.27%, 12/01/03 ................. 2,136,125
1,400,000 Commercial Credit Co.
6.50%, 08/01/04 ................. 1,342,250
4,300,000 DaimlerChrysler N.A. Holding Corp.
7.13%, 04/10/03 ................. 4,251,625
3,500,000 Diageo Capital Plc, Yankee
6.00%, 03/27/03 ................. 3,367,175
3,000,000 Diageo Capital Plc, Yankee
6.13%, 08/15/05 ................. 2,812,500
1,000,000 Emerson Electric Co.
5.85%, 03/15/09 ................. 906,250
1,625,000 Ford Motor Credit Co.
7.25%, 01/15/03 ................. 1,610,781
1,715,000 Ford Motor Credit Co.
6.70%, 07/16/04 ................. 1,650,687
2,195,000 Ford Motor Credit Co., Senior Note
5.75%, 02/23/04 ................. 2,055,069
800,000 General Electric Capital Corp.
Series A, MTN
6.33%, 09/17/01 ................. 791,000
1,500,000 General Electric Capital Corp.
Series A, MTN
6.15%, 11/05/01 ................. 1,477,500
1,000,000 General Electric Capital Corp.
Series A, MTN
7.00%, 02/03/03 ................. 990,000
135,000 General Electric Capital Corp.
Series A, MTN
6.81%, 11/03/03 ................. 133,312
250,000 General Electric Capital Corp.
Series A, MTN
7.25%, 05/03/04 ................. 249,062
1,000,000 General Motors Acceptance Corp.
7.00%, 09/15/02 ................. 988,750
2,045,000 General Motors Acceptance Corp.
6.75%, 02/07/02 ................. 2,016,881
1,135,000 Goldman Sachs Group, Inc., Series B
7.80%, 01/28/10 ................. 1,116,556
250,000 GTE Corp., Debenture
6.46%, 04/15/08 ................. 231,562
1,000,000 GTE Corp., Series H
5.65%, 11/15/08 ................. 866,250
750,000 Heinz (H.J.) Co.
6.88%, 01/15/03 ................. 741,562
PAR VALUE VALUE
----------- ------------
CORPORATE NOTES AND BONDS (CONTINUED)
$ 3,000,000 Heinz (H.J.) Co., Euro-Bond
5.75%, 02/03/03 ................. $ 2,867,100
500,000 Hershey Foods Corp.
6.70%, 10/01/05 ................. 485,000
1,300,000 Hershey Foods Corp.
7.20%, 08/15/27 ................. 1,238,250
1,000,000 Hertz Corp., Senior Note
7.00%, 04/15/01 ................. 995,000
750,000 Illinois Tool Works
5.75%, 03/01/09 ................. 673,125
1,000,000 IBM Corp.
7.50%, 06/15/13 ................. 1,008,750
2,000,000 IBM Corp.
6.22%, 08/01/27 ................. 1,917,500
1,405,000 IBM Credit Corp., MTN
6.45%, 11/12/02 ................. 1,376,900
500,000 International Paper Co.
7.00%, 06/01/01 ................. 496,875
1,500,000 Lockheed Martin Corp.
6.85%, 05/15/01 ................. 1,483,125
500,000 May Department Stores Co.
6.88%, 11/01/05 ................. 486,250
2,025,000 McDonald's Corp., MTN
5.95%, 01/15/08 ................. 1,857,938
500,000 McDonald's Corp.
8.88%, 04/01/11 ................. 548,750
3,735,000 MCI WorldCom, Inc.
6.13%, 04/15/02 ................. 3,636,956
500,000 Mead Corp.
6.84%, 03/01/37 ................. 488,125
2,500,000 Minnesota Mining & Manufacturing Co.
Debenture
6.38%, 02/15/28 ................. 2,156,250
1,000,000 National City Bank of Kentucky,
Subordinated Bank Note
6.30%, 02/15/11 ................. 885,000
1,515,000 National Rural Utilities
Cooperative Finance Corp.
7.38%, 02/10/03 ................. 1,516,894
1,000,000 National Rural Utilities
Cooperative Finance Corp.
6.38%, 10/15/04 ................. 957,500
1,025,000 National Rural Utilities
Cooperative Finance Corp.
5.75%, 11/01/08 ................. 912,250
2,500,000 National Rural Utilities
Cooperative Finance Corp.,
Collateral Trust
6.13%, 05/15/05 ................. 2,353,125
1,000,000 NationsBank Corp.
7.00%, 09/15/01 ................. 993,750
500,000 Northern Telecom, Ltd., Yankee Note
6.00%, 09/01/03 ................. 475,625
1,620,000 PepsiCo, Inc., MTN
5.75%, 01/15/08 ................. 1,427,625
1,590,000 Pitney Bowes Credit Corp.
6.63%, 06/01/02 ................. 1,574,100
380,000 Pitney Bowes, Inc.
5.95%, 02/01/05 ................. 359,100
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
ASSET ALLOCATION FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
PAR VALUE VALUE
----------- ------------
CORPORATE NOTES AND BONDS (CONTINUED)
$ 1,800,000 Potomac Electric Power Co.
First Mortgage
6.50%, 09/15/05 ................. $ 1,696,500
2,000,000 Potomac Electric Power Co.
First Mortgage
6.25%, 10/15/07 ................. 1,887,500
3,500,000 Sherwin-Williams Co., Senior Note
6.50%, 02/01/02 ................. 3,443,125
1,900,000 Sherwin-Williams Co.
6.85%, 02/01/07 ................. 1,826,375
1,000,000 Southwest Airlines Co.
8.75%, 10/15/03 ................. 1,038,750
1,500,000 Sprint Capital Corp.
5.88%, 05/01/04 ................. 1,411,875
1,000,000 SunTrust Bank of Atlanta
Subordinated Note, MTN
7.25%, 09/15/06 ................. 975,000
300,000 SunTrust Bank of Central Florida, MTN
6.90%, 07/01/07 ................. 283,125
1,000,000 Sysco Corp.
7.25%, 04/15/07 ................. 992,500
1,250,000 Sysco Corp., Debenture
6.50%, 08/01/28 ................. 1,087,500
3,250,000 Tele-Communication, Inc., Senior Note
7.25%, 08/01/05 ................. 3,201,250
1,000,000 Texaco Capital, Inc.
8.50%, 02/15/03 ................. 1,025,000
2,000,000 United Telecommunications, Inc.
9.50%, 04/01/03 ................. 2,095,000
2,000,000 Wachovia Bank, N.A.
6.30%, 03/15/01 ................. 1,982,500
2,000,000 Wal-Mart Stores, Inc., Senior Note
6.75%, 05/15/02 ................. 1,980,000
500,000 Wal-Mart Stores, Inc.
6.88%, 08/10/09 ................. 481,875
2,000,000 Wal-Mart Stores, Inc.
7.55%, 02/15/30 ................. 2,005,000
------------
TOTAL CORPORATE NOTES AND BONDS . 109,071,541
------------
(Cost $114,040,469)
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES - 3.23%
3,975,000 American Express Credit Account Master
Trust Series 1999-1, Class A
5.60%, 11/15/06 ................. 3,732,764
2,950,000 Chemical Master Credit Card Trust I
Series 1996-1, Class A
5.55%, 09/15/03 ................. 2,920,500
700,000 Chemical Master Credit Card Trust I
Series 1996-2, Class A
5.98%, 09/15/08 ................. 656,250
800,000 Citibank Credit Card Master Trust I
Series 1999-7, Class A
6.65%, 11/15/06 ................. 775,744
1,500,000 Daimler-Benz Vehicle Trust
Series 1998-A, Class A-4
5.22%, 12/20/03 ................. 1,457,228
2,000,000 DaimlerChrysler Auto Trust
Series 2000-A, Class A-3
7.09%, 12/06/03 ................. 1,991,240
PAR VALUE VALUE
----------- ------------
ASSET-BACKED AND MORTGAGE-BACKED SECURITIES (CONTINUED)
$ 4,500,000 Discover Card Master Trust I
Series 1999-1, Class A
5.30%, 08/15/04 ................. $ 4,348,125
1,000,000 Ford Credit Auto Owner Trust
Series 1999-D, Class A-4
6.40%, 10/15/02 ................. 987,500
25,000 Green Tree Financial Corp.
Series 1999-5, Class A-2
6.77%, 04/01/31 ................. 24,602
2,500,000 MBNA Master Credit Card Trust
Series 1999-I, Class A
6.40%, 01/18/05 ................. 2,452,325
2,500,000 MBNA Master Credit Card Trust
Series 1999-M, Class A
6.60%, 04/16/07 ................. 2,428,988
440,000 Premier Auto Trust
Series 1999-2, Class A-4
5.59%, 02/09/04 ................. 423,909
1,400,000 Premier Auto Trust
Series 1999-3, Class A-4
6.43%, 03/08/04 ................. 1,370,250
293,834 Prudential Home Mortgage Securities
Series 1996-7, Class A, CMO
6.75%, 06/25/11 ................. 291,169
499,374 Rural Housing Trust,
Series 1987-1, Class D, CMO
6.33%, 04/01/26 ................. 479,711
------------
TOTAL ASSET-BACKED AND
MORTGAGE-BACKED SECURITIES ...... 24,340,305
------------
(Cost $24,719,069)
FOREIGN BONDS (A) - 0.50%
2,500,000 Quebec Province Senior Subordinated Notes
5.75%, 02/15/09 ................. 2,214,975
1,570,000 Quebec Province
7.50%, 09/15/29 ................. 1,534,675
------------
TOTAL FOREIGN BONDS ............. 3,749,650
------------
(Cost $3,912,040)
COMMERCIAL PAPER (B) - 5.72%
30,000,000 ABB Treasury Center USA, Inc.
6.05%, 05/01/00 ................. 30,000,000
13,035,000 Bayer Corp.
6.03%, 05/01/00 ................. 13,035,000
------------
TOTAL COMMERCIAL PAPER .......... 43,035,000
------------
(Cost $43,035,000)
TOTAL INVESTMENTS - 99.68%......................... 750,236,130
------------
(Cost $585,059,432)
NET OTHER ASSETS & LIABILITIES - 0.32%............. 2,442,081
------------
NET ASSETS - 100.00%............................... $752,678,211
============
-----------------------------------------------
* Non-income producing security.
(A) U.S. Dollar-Denominated
(B) Discount yield at time of purchase.
ADR American Depositary Receipt
CMO Collateralized Mortgage Obligation
MTN Medium Term Note
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 95.02%
TECHNOLOGY - 20.25%
225,000 Automatic Data Processing, Inc... $ 12,107,813
150,000 Cisco Systems, Inc.*............. 10,399,219
75,000 Hewlett-Packard Co............... 10,125,000
75,000 Intel Corp....................... 9,510,938
80,000 International Business Machines
Corp. ......................... 8,930,000
100,000 Lucent Technologies, Inc......... 6,218,750
150,000 Molex, Inc., Class A............. 6,000,000
------------
63,291,720
------------
CONSUMER STAPLES - 17.86%
300,000 Becton Dickinson & Co............ 7,687,500
185,000 Bestfoods........................ 9,296,250
135,000 Gillette Co...................... 4,995,000
80,000 Lilly (Eli) & Co................. 6,185,000
84,000 Merck & Co., Inc................. 5,838,000
165,000 PepsiCo, Inc..................... 6,053,437
140,000 Pfizer, Inc...................... 5,897,500
70,000 Procter & Gamble Co.............. 4,173,750
50,000 Warner-Lambert Co................ 5,690,625
------------
55,817,062
------------
FINANCE - 16.91%
40,000 American International Group, Inc. 4,387,500
225,000 Associates First Capital Corp.,
Class A ...................... 4,992,187
75,000 Citigroup, Inc................... 4,457,812
225,000 Equity Office Properties Trust REIT 6,117,187
80,000 Fannie Mae....................... 4,825,000
180,000 First Union Corp................. 5,737,500
235,000 Firstar Corp..................... 5,845,625
90,000 Hartford Financial Services Group,
Inc. ......................... 4,696,875
132,000 Spieker Properties, Inc. REIT.... 5,849,250
145,000 Wells Fargo & Co................. 5,954,063
------------
52,862,999
------------
UTILITIES - 11.44%
225,000 AT&T Corp........................ 10,504,688
220,000 SBC Communications, Inc.......... 9,638,750
235,000 Texas Utilities Co............... 7,916,563
300,000 Washington Gas Light Co.......... 7,687,500
------------
35,747,501
------------
ENERGY - 10.35%
225,000 Conoco, Inc., Class B............ 5,596,875
130,000 Exxon Mobil Corp................. 10,099,375
105,000 Halliburton Co................... 4,639,687
60,000 Schlumberger, Ltd................ 4,593,750
150,000 Texaco, Inc...................... 7,425,000
------------
32,354,687
------------
SHARES VALUE
----------- ------------
CONSUMER CYCLICAL - 9.46%
170,000 Ford Motor Co.................... $ 9,296,875
160,000 McDonald's Corp.................. 6,100,000
105,000 Target Corp...................... 6,989,062
255,000 Walgreen Co...................... 7,171,875
------------
29,557,812
------------
INDUSTRIAL - 4.81%
60,000 General Electric Co.............. 9,435,000
100,000 Honeywell International, Inc..... 5,600,000
------------
15,035,000
------------
BASIC MATERIALS - 3.94%
57,000 Dow Chemical Co.................. 6,441,000
110,000 Weyerhaeuser Co.................. 5,878,125
------------
12,319,125
------------
TOTAL COMMON STOCKS ............. 296,985,906
------------
(Cost $257,221,033)
PAR VALUE
---------
U.S. GOVERNMENT OBLIGATION - 0.61%
U.S. TREASURY BOND - 0.61%
$ 1,700,000 7.50%, 11/15/16 ................. 1,907,655
------------
TOTAL U.S. GOVERNMENT OBLIGATION 1,907,655
------------
(Cost $1,677,156)
REPURCHASE AGREEMENT - 3.71%
11,603,000 Repurchase Agreement with:
State Street Bank
5.71%, Due 05/01/00, dated 04/28/00
Repurchase Price $11,608,521
(Collateralized by U.S. Treasury Bond
9.00%, Due 11/15/18;
Total Par $8,935,000,
Market Value $11,838,875) ....... 11,603,000
------------
TOTAL REPURCHASE AGREEMENT ...... 11,603,000
------------
(Cost $11,603,000)
TOTAL INVESTMENTS - 99.34%......................... 310,496,561
------------
(Cost $270,501,189)
NET OTHER ASSETS AND LIABILITIES - 0.66%........... 2,053,805
------------
NET ASSETS - 100.00%............................... $312,550,366
============
-------------------------------------------
* Non-income producing security.
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 99.99%
TECHNOLOGY - 20.62%
146,300 Avnet, Inc....................... $ 11,502,838
234,000 Cisco Systems, Inc.*............. 16,222,781
325,000 Compaq Computer Corp............. 9,506,250
92,000 Computer Sciences Corp.*......... 7,503,750
206,000 Electronic Data Systems Corp..... 14,162,500
370,000 Harris Corp...................... 11,955,625
87,000 Hewlett-Packard Co............... 11,745,000
115,000 IBM Corp......................... 12,836,875
103,000 Motorola, Inc.................... 12,263,438
90,000 Texas Instruments, Inc........... 14,658,750
------------
122,357,807
------------
CONSUMER STAPLES - 17.02%
150,000 American Home Products Corp...... 8,428,125
118,000 Anheuser-Busch Cos., Inc......... 8,326,375
140,000 Bestfoods........................ 7,035,000
370,000 Elan Corp. Plc, ADR*............. 15,863,750
90,000 Forest Laboratories, Inc.*....... 7,565,625
165,000 Genzyme Corp.*................... 8,054,063
1,500,000 HEALTHSOUTH Corp.*............... 12,093,750
162,000 International Flavors & Fragrances,
Inc. ......................... 5,578,875
72,400 Johnson & Johnson Co............. 5,973,000
106,000 Merck & Co., Inc................. 7,367,000
190,000 PepsiCo, Inc..................... 6,970,625
154,700 Pharmacia Corp................... 7,725,331
------------
100,981,519
------------
FINANCE - 13.40%
172,000 Bank of America Corp............. 8,428,000
220,000 Bank One Corp.................... 6,710,000
96,000 Chase Manhattan Corp............. 6,918,000
96,000 Chubb Corp....................... 6,108,000
72,450 CIGNA Corp....................... 5,777,887
198,000 Citigroup, Inc................... 11,768,625
225,000 Countrywide Credit Industries, Inc. 6,215,625
110,000 Hartford Financial Services Group,
Inc. ......................... 5,740,625
156,000 Lincoln National Corp............ 5,430,750
54,000 Morgan (J.P) & Co., Inc.......... 6,932,250
230,000 Wells Fargo & Co................. 9,444,375
------------
79,474,137
------------
CONSUMER CYCLICAL - 11.63%
190,000 Circuit City Stores-Circuit City
Group ........................ 11,174,375
500,000 Cooper Tire & Rubber Co.......... 6,750,000
90,000 Eastman Kodak Co................. 5,034,375
98,000 Ford Motor Co.................... 5,359,375
SHARES VALUE
----------- ------------
CONSUMER CYCLICAL (CONTINUED)
210,000 Lowe's Cos., Inc................. $ 10,395,000
200,000 McDonald's Corp.................. 7,625,000
635,000 Office Depot, Inc.*.............. 6,707,187
325,000 Penny (J.C.) Co., Inc............ 4,489,062
460,000 Sherwin-Williams Co.............. 11,442,500
------------
68,976,874
------------
ENERGY - 10.98%
320,000 Baker Hughes, Inc................ 10,180,000
297,600 BP Amoco Plc, ADR................ 15,177,600
128,054 Exxon Mobil Corp................. 9,948,195
225,000 Halliburton Co................... 9,942,187
160,000 Kerr-McGee Corp.................. 8,280,000
134,400 Schlumberger, Ltd................ 10,290,000
27,955 Transocean Sedco Forex, Inc...... 1,313,885
------------
65,131,867
------------
CAPITAL GOODS - 9.33%
176,500 Boeing Co........................ 7,004,844
64,000 General Electric Co.............. 10,064,000
124,687 Honeywell International, Inc..... 6,982,472
222,000 Hubbell, Inc., Class A........... 5,688,750
270,000 Tyco International, Ltd.......... 12,403,125
110,000 United Technologies Corp......... 6,840,625
400,000 Waste Management, Inc............ 6,350,000
------------
55,333,816
------------
UTILITIES - 7.55%
159,000 AT&T Corp........................ 7,423,313
205,500 CenturyTel, Inc.................. 5,034,750
199,000 Entergy Corp..................... 5,062,063
122,000 GTE Corp......................... 8,265,500
255,000 MCI WorldCom, Inc.*.............. 11,586,563
170,000 SBC Communications, Inc.......... 7,448,125
------------
44,820,314
------------
BASIC MATERIALS - 7.27%
91 Crown Cork & Seal Co., Inc....... 1,479
240,000 Goodrich (B.F.) Co............... 7,650,000
90,000 Minnesota Mining & Manufacturing Co. 7,785,000
300,000 Pall Corp........................ 6,693,750
190,000 Praxair, Inc..................... 8,443,125
200,000 Sigma Aldrich Corp............... 5,875,000
493,200 Solutia, Inc..................... 6,719,850
------------
43,168,204
------------
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
TRANSPORTATION - 2.19%
101,500 British Airways Plc, ADR......... $ 5,341,437
318,000 Burlington Northern Santa Fe Corp. 7,671,750
------------
13,013,187
------------
TOTAL COMMON STOCKS ............. 593,257,725
------------
(Cost $464,818,053)
CONVERTIBLE PREFERRED STOCKS - 0.54%
80,000 Loral Space and Communications, Ltd.,
6.00% (A)........................ 2,180,000
37,000 Loral Space and Communications, Ltd.,
Series C, 6.00%.................. 1,008,250
------------
TOTAL CONVERTIBLE PREFERRED STOCKS 3,188,250
------------
(Cost $6,262,375)
TOTAL INVESTMENTS - 100.53%........................ 596,445,975
------------
(Cost $471,080,428)
NET OTHER ASSETS AND LIABILITIES - (0.53)%......... (3,165,794)
------------
NET ASSETS - 100.00%............................... $593,280,181
============
--------------------------------------------------
[FN]
* 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, 2000, this security amounted
to $2,180,000, or 0.37% of net assets.
ADR American Depositary Receipt
</FN>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
STRATEGIC EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 95.36%
CONSUMER STAPLES - 19.07%
45,000 Albertson's, Inc................. $ 1,465,312
115,000 Boston Scientific Corp.*......... 3,047,500
80,000 ConAgra, Inc..................... 1,510,000
103,000 Elan Corp. Plc, ADR*............. 4,416,125
265,000 HEALTHSOUTH Corp.*............... 2,136,562
25,000 Kimberly-Clark Corp.............. 1,451,562
73,000 McKesson HBOC, Inc............... 1,231,875
18,000 Merck & Co., Inc................. 1,251,000
21,000 Procter & Gamble Co.............. 1,252,125
------------
17,762,061
------------
TECHNOLOGY - 16.98%
96,000 American Management Systems, Inc.* 3,552,000
37,000 BMC Software, Inc.*.............. 1,732,063
30,000 Dell Computer Corp.*............. 1,503,750
85,000 Diebold, Inc..................... 2,454,375
9,000 Hewlett-Packard Co............... 1,215,000
12,000 International Business Machines Corp. 1,339,500
70,000 Loral Space and Communications, Ltd.* 686,875
40,500 Molex, Inc., Class A............. 1,620,000
35,000 Pitney Bowes, Inc................ 1,430,625
7,000 3Com Corp.*...................... 276,063
------------
15,810,251
------------
ENERGY - 14.82%
50,000 Anadarko Petroleum Corp.......... 2,171,875
90,000 Baker Hughes, Inc................ 2,863,125
24,928 BP Amoco Plc, ADR................ 1,271,328
43,000 Burlington Resources, Inc........ 1,690,437
19,000 Cooper Cameron Corp.*............ 1,425,000
56,000 Noble Affiliates, Inc............ 2,019,500
13,000 Schlumberger, Ltd................ 995,312
45,000 Sunoco, Inc...................... 1,364,063
------------
13,800,640
------------
FINANCE - 13.09%
135,000 Associates First Capital Corp.,
Class A....................... 2,995,313
25,000 Freddie Mac...................... 1,148,438
25,000 Hartford Financial Services Group,
Inc. ......................... 1,304,688
SHARES VALUE
----------- ------------
FINANCE (CONTINUED)
75,000 John Hancock Financial Services,
Inc.* ........................ $ 1,368,750
52,000 MBIA, Inc........................ 2,570,750
82,000 UnumProvident Corp............... 1,394,000
55,000 Washington Mutual, Inc........... 1,405,938
------------
12,187,877
------------
INDUSTRIAL - 12.31%
90,000 ACNielson Corp.*................. 2,075,625
17,200 AES Corp.*....................... 1,546,925
16,000 Eaton Corp....................... 1,344,000
25,000 Emerson Electric Co.............. 1,371,875
50,000 Hubbell, Inc., Class B........... 1,303,125
40,000 Tyco International, Ltd.......... 1,837,500
125,000 Waste Management, Inc............ 1,984,375
------------
11,463,425
------------
CONSUMER CYCLICAL - 10.94%
95,000 Cooper Tire & Rubber Co.......... 1,282,500
37,500 CVS Corp......................... 1,631,250
26,000 Lowe's Cos., Inc................. 1,287,000
52,000 Meredith Corp.................... 1,446,250
55,000 Newell Rubbermaid, Inc........... 1,385,312
190,000 Office Depot, Inc.*.............. 2,006,875
60,000 TJX Cos., Inc.................... 1,151,250
------------
10,190,437
------------
BASIC MATERIALS - 5.81%
31,000 Eastman Chemical Co.............. 1,621,687
23,000 Nucor Corp....................... 989,000
28,000 Potash Corp. of Saskatchewan, Inc. 1,506,750
95,000 Solutia, Inc..................... 1,294,375
------------
5,411,812
------------
UTILITIES - 1.25%
25,000 AT&T Corp........................ 1,167,188
------------
TRANSPORTATION - 1.09%
42,000 Burlington Northern Santa Fe Corp. 1,013,250
------------
TOTAL COMMON STOCKS ............. 88,806,941
------------
(Cost $84,360,153)
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
STRATEGIC EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
PAR VALUE VALUE
--------- -----
REPURCHASE AGREEMENT - 4.59%
$ 4,277,000 Repurchasee Agreement with:
State Street Bank
5.71%, 05/01/00, dated 04/28/00
Repurchase Price $4,279,035
(Collateralized by U.S. Treasury Bond,
6.00%, Due 02/15/26;
Total Par $4,460,000,
Market Value $4,365,225)......... $ 4,277,000
------------
TOTAL REPURCHASE AGREEMENT ...... 4,277,000
------------
(Cost $4,277,000)
TOTAL INVESTMENTS - 99.95%......................... 93,083,941
------------
(Cost $88,637,153)
NET OTHER ASSETS AND LIABILITIES - 0.05%........... 50,100
------------
NET ASSETS - 100.00%............................... $ 93,134,041
============
------------------------------------------------------
* Non-income producing security
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
EQUITY VALUE FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 97.16%
TECHNOLOGY - 22.55%
101,200 Altera Corp.*.................... $ 10,347,700
60,200 Applied Materials, Inc.*......... 6,129,113
278,000 Cadence Design Systems, Inc.*.... 4,673,875
80,900 Cisco Systems, Inc.*............. 5,608,645
125,500 Citrix Systems, Inc.*............ 7,663,344
489,121 Compaq Computer Corp............. 14,306,789
233,300 Computer Associates International,
Inc. ......................... 13,021,056
100,000 Computer Sciences Corp.*......... 8,156,250
116,000 EMC Corp.*....................... 16,116,750
102,200 Intel Corp....................... 12,960,238
85,100 Microsoft Corp.*................. 5,935,725
133,600 Oracle Corp.*.................... 10,679,650
331,100 Parametric Technology Corp.*..... 2,700,534
86,700 Tellabs, Inc.*................... 4,752,244
------------
123,051,913
------------
CONSUMER CYCLICAL - 20.71%
90,900 AMR Corp.*....................... 3,096,281
235,100 Brunswick Corp................... 4,510,981
403,100 Carnival Corp.................... 10,027,112
281,400 CVS Corp......................... 12,240,900
80,000 Gannett Co., Inc................. 5,110,000
180,625 Gap, Inc......................... 6,637,969
600,000 Hasbro, Inc...................... 9,562,500
452,000 Jones Apparel Group, Inc.*....... 13,418,750
271,100 Kaufman & Broad Home Corp........ 5,218,675
276,800 Lowe's Cos., Inc................. 13,701,600
505,650 Office Depot, Inc.*.............. 5,340,928
124,200 PACCAR, Inc...................... 5,907,263
643,200 Shaw Industries, Inc............. 10,170,600
422,900 TJX Cos., Inc.................... 8,114,394
------------
113,057,953
------------
ENERGY - 13.87%
558,100 Baker Hughes, Inc................ 17,754,556
282,400 Coastal Corp..................... 14,172,950
306,100 Diamond Offshore Drilling, Inc... 12,339,656
204,900 Kerr-McGee Corp.................. 10,603,575
94,000 Phillips Petroleum Co............ 4,459,125
150,000 Transocean Sedco Forex, Inc...... 7,050,000
400,000 USX-Marathon Group, Inc.......... 9,325,000
------------
75,704,862
------------
SHARES VALUE
----------- ------------
FINANCE - 13.17%
200,000 Associates First Capital Corp.... $ 4,437,500
143,900 Bank of America Corp............. 7,051,100
24,345 Bear Stearns Cos., Inc........... 1,043,792
78,900 Chase Manhattan Corp............. 5,685,731
74,875 Citigroup, Inc................... 4,450,383
71,500 Fannie Mae....................... 4,312,344
200,000 Firstar Corp..................... 4,975,000
131,500 Household International, Inc..... 5,490,125
20,500 Marsh & McLennan Cos., Inc....... 2,020,531
178,600 MBIA, Inc........................ 8,829,538
339,500 MBNA Corp........................ 9,017,969
63,100 Merrill Lynch & Co., Inc......... 6,432,256
340,000 SouthTrust Corp.................. 8,117,500
------------
71,863,769
------------
CONSUMER STAPLES - 9.41%
198,900 Albertson's, Inc................. 6,476,681
422,000 Boston Scientific Corp.*......... 11,183,000
200,000 Mallinckrodt, Inc................ 5,375,000
200,000 Schering-Plough Corp............. 8,062,500
280,000 Watson Pharmaceutical, Inc.*..... 12,582,500
104,500 Wellpoint Health Networks, Inc.*. 7,706,875
------------
51,386,556
------------
INDUSTRIAL - 9.02%
219,600 Black & Decker Corp.............. 9,236,925
100,000 FedEx Corp.*..................... 3,768,750
97,500 Honeywell International, Inc..... 5,460,000
138,200 Hunt (J.B.) Transport Services, Inc. 2,280,300
45,100 Ingersoll-Rand Co................ 2,116,881
224,000 Owens Corning, Inc............... 4,074,000
123,100 TRW, Inc......................... 7,201,350
240,000 Tyco International, Ltd.......... 11,025,000
65,300 United Technologies Corp......... 4,060,844
------------
49,224,050
------------
BASIC MATERIALS - 4.30%
305,800 Georgia-Pacific Group............ 11,238,150
215,700 International Paper Co........... 7,926,975
100,000 Nucor Corp....................... 4,300,000
------------
23,465,125
------------
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
EQUITY VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
UTILITY - 4.13%
142,800 Bell Atlantic Corp............... $ 8,460,900
43,200 GTE Corp......................... 2,926,800
100,000 MCI WorldCom, Inc.*.............. 4,543,750
151,100 SBC Communications, Inc.......... 6,620,069
------------
22,551,519
------------
TOTAL COMMON STOCKS ............. 530,305,747
------------
(Cost $439,747,197)
PAR VALUE
---------
REPURCHASE AGREEMENT - 1.00%
$ 5,462,000 Repurchase Agreement with:
State Street Bank
5.71%, Due 05/01/00, dated 04/28/00
Repurchase Price $5,464,599
(Collateralized by U.S. Treasury Bond
8.88%, Due 02/15/19;
Total Par $4,310,000,
Market Value $5,577,649) ........ 5,462,000
------------
TOTAL REPURCHASE AGREEMENT ...... 5,462,000
------------
(Cost $5,462,000)
TOTAL INVESTMENTS - 98.16%......................... 535,767,747
------------
(Cost $445,209,197)
NET OTHER ASSETS AND LIABILITIES - 1.84%........... 10,040,105
------------
NET ASSETS - 100.00%............................... $545,807,852
============
-----------------------------------------------------
* Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 95.01%
TECHNOLOGY - 32.81%
300,000 America OnLine, Inc.*............ $ 17,943,750
700,000 American Tower Corp., Class A*... 32,550,000
350,000 Applied Materials, Inc.*......... 35,634,375
625,000 Automatic Data Processing, Inc... 33,632,813
600,000 Cisco Systems, Inc.*............. 41,596,875
125,000 CMGI, Inc.*...................... 8,906,250
540,000 Dell Computer Corp.*............. 27,067,500
32,500 E-Tek Dynamics, Inc.*............ 6,654,375
335,000 EchoStar Communications Corp.,
Class A*......................... 21,335,313
300,000 EMC Corp.*....................... 41,681,250
50,000 Genentech, Inc.*................. 5,850,000
250,000 Intel Corp....................... 31,703,125
225,000 International Business Machines
Corp. ........................ 25,115,625
200,000 Liberate Technologies, Inc.*..... 7,825,000
300,000 Lucent Technologies, Inc......... 18,656,250
315,000 Microsoft Corp.*................. 21,971,250
500,000 Nokia Corp., Class A, ADR........ 28,437,500
280,000 Nortel Networks Corp............. 31,710,000
300,000 Oracle Corp.*.................... 23,981,250
535,500 Pharmacia Corp................... 26,741,531
350,000 Tellabs, Inc.*................... 19,184,375
465,000 Teradyne, Inc.*.................. 51,150,000
235,000 Texas Instruments, Inc........... 38,275,625
350,000 United Technologies Corp......... 21,765,625
500,000 Xerox Corp....................... 13,218,750
-------------
632,588,407
-------------
CONSUMER STAPLES - 14.32%
400,000 American Home Products Corp...... 22,475,000
300,000 Baxter International, Inc........ 19,537,500
326,000 Bristol-Myers Squibb Co.......... 17,094,625
1,000,000 Cendant Corp.*................... 15,437,500
60,000 Edwards Lifesciences Corp .*..... 900,000
750,000 Elan Corp. Plc, ADR*............. 32,156,250
325,000 Forest Laboratories, Inc., Class A* 27,320,312
350,000 Guidant Corp.*................... 20,081,250
235,000 Johnson & Johnson Co............. 19,387,500
275,000 Lilly (Eli) & Co................. 21,260,938
300,000 Merck & Co., Inc................. 20,850,000
450,000 PepsiCo, Inc..................... 16,509,375
200,000 Procter & Gamble Co.............. 11,925,000
275,000 Warner-Lambert Co................ 31,298,438
-------------
276,233,688
-------------
CONSUMER CYCLICAL - 12.44%
325,000 AT&T Corp., Liberty Media Group*. 16,229,687
850,000 CVS Corp......................... 36,975,000
265,000 Ford Motor Co.................... 14,492,187
SHARES VALUE
----------- ------------
CONSUMER CYCLICAL (CONTINUED)
250,000 Harley-Davidson, Inc............. $ 9,953,125
550,000 Home Depot, Inc.................. 30,834,375
500,000 Infinity Broadcasting Corp.,
Class A* ..................... 16,968,750
400,000 McDonald's Corp.................. 15,250,000
300,000 MediaOne Group, Inc.*............ 22,687,500
900,000 Staples, Inc.*................... 17,156,250
375,000 Tandy Corp....................... 21,375,000
275,000 Target Corp...................... 18,304,687
1,025,000 TJX Cos., Inc.................... 19,667,187
-------------
239,893,748
-------------
ENERGY - 11.23%
750,000 Anadarko Petroleum Corp.......... 32,578,125
800,000 Baker Hughes, Inc................ 25,450,000
984,000 BP Amoco Plc, ADR................ 50,184,000
600,000 Burlington Resources, Inc........ 23,587,500
350,000 Cooper Cameron Corp.*............ 26,250,000
350,000 Schlumberger, Ltd................ 26,796,875
675,000 Transocean Sedco Forex, Inc...... 31,725,000
-------------
216,571,500
-------------
INDUSTRIAL - 9.38%
355,000 General Electric Co.............. 55,823,750
550,000 Honeywell International, Inc..... 30,800,000
550,000 Maxim Integrated Products, Inc.*. 35,646,875
1,000,000 Tyco International, Ltd.......... 45,937,500
150,000 Vishay Intertechnology, Inc.*.... 12,581,250
-------------
180,789,375
-------------
FINANCE - 8.49%
325,000 American International Group, Inc. 35,648,438
777,500 Associates First Capital Corp.... 17,250,781
425,000 Chase Manhattan Corp............. 30,626,563
650,000 Citigroup, Inc................... 38,634,375
350,000 Fannie Mae....................... 21,109,375
500,000 Wells Fargo & Co................. 20,531,250
-------------
163,800,782
-------------
UTILITIES - 4.84%
48,000 AT&T Wireless Group*............. 1,527,000
700,000 MCI WorldCom, Inc.*.............. 31,806,250
250,000 Nextlink Communications, Inc.*... 21,078,125
400,000 SBC Communications, Inc.......... 17,525,000
300,000 US West, Inc..................... 21,356,250
-------------
93,292,625
-------------
SEE NOTES TO FINANCIAL STATEMENTS.
32
<PAGE>
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
BASIC MATERIALS - 1.50%
300,000 duPont (E.I.) deNemours & Co..... $ 14,231,250
400,000 Georgia-Pacific Group............ 14,700,000
-------------
28,931,250
-------------
TOTAL COMMON STOCKS ............. 1,832,101,375
-------------
(Cost $1,062,231,505)
CONVERTIBLE PREFERRED STOCKS - 1.29%
140,000 AES Trust I, Series A............ 17,360,000
275,000 Loral Space and
Communications, Ltd.,
Series C, 6.00% (A).............. 7,493,750
-------------
TOTAL CONVERTIBLE PREFERRED STOCKS 24,853,750
-------------
(Cost $20,750,000)
REPURCHASE AGREEMENT - 4.05%
$77,989,000 Repurchase Agreement with:
State Street Bank
5.71%, Due 05/01/00, dated 04/28/00
Repurchase Price $78,026,110
(Collateralized by U.S. Treasury Bond
6.00% - 9.88%, Due 11/15/15
through 02/15/26;
Total Par $60,655,000,
Market Value $79,553,581) ....... $ 77,989,000
-------------
TOTAL REPURCHASE AGREEMENT ...... 77,989,000
-------------
(Cost $77,989,000)
TOTAL INVESTMENTS - 100.35%........................ 1,934,944,125
-------------
(Cost $1,160,970,505)
NET OTHER ASSETS AND LIABILITIES - (0.35)%......... (6,673,626)
-------------
NET ASSETS - 100.00%...............................$1,928,270,499
=============
------------------------------------------------------
* 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, 2000, this security amounted to $7,493,750 or 0.39%
of net assets.
ADR American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
33
<PAGE>
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 94.11%
BRAZIL - 0.64%
216,606 Embratel Participacoes SA, ADR... $ 4,873,635
------------
CANADA - 4.28%
196,800 BCE, Inc......................... 22,781,775
190,200 Seagram Co., Ltd................. 9,994,647
------------
32,776,422
------------
FRANCE - 9.44%
155,738 Aventis SA....................... 8,593,992
159,418 Aventis SA, Series A*............ 8,768,078
113,100 Carrefour Super Marche, SA....... 7,361,855
249,913 Rhodia, SA....................... 4,634,797
79,490 Suez Lyonnaise Des Eaux.......... 12,465,602
59,417 Total Fina Elf, SA............... 9,015,270
80,041 Valeo SA......................... 4,438,682
173,091 Vivendi.......................... 17,120,445
------------
72,398,721
------------
GERMANY - 7.71%
321,124 Bayerische Motoren Werke (BMW) AG 8,539,064
225,032 Dresdner Bank AG................. 9,328,693
341,862 Metallgesellschaft AG............ 5,289,590
24,351 SAP AG........................... 14,322,959
93,070 Siemens AG....................... 13,732,193
160,331 Veba AG.......................... 7,921,888
------------
59,134,387
------------
GREECE - 0.38%
128,360 Hellenic Telecommunications
Organization SA (OTE)............ 2,889,600
------------
HONG KONG - 3.07%
1,496,000 China Telecom, Ltd.*............. 10,803,420
871,000 Hutchison Whampoa................ 12,691,740
------------
23,495,160
------------
HUNGARY - 0.33%
46,270 Gedeon Richter, GDR (A).......... 2,562,058
------------
ITALY - 5.89%
3,022,460 Banca Nazionale Del Lavoro SpA*.. 9,891,786
1,190,281 Mediaset SpA..................... 19,315,208
1,127,960 Telecom Italia Mobile SpA........ 10,766,999
1,287,569 UniCredito Italiano SpA.......... 5,220,559
------------
45,194,552
------------
SHARES VALUE
----------- ------------
JAPAN - 24.69%
1,445,000 Fuji Bank (The), Ltd............. $ 12,041,109
294,000 Fujitsu, Ltd..................... 8,329,614
226,000 KAO Corp......................... 6,884,311
38,200 Matsushita Communication
Industrial Co. ............... 5,991,463
105,000 Murata Manufacturing Co., Ltd.... 20,415,722
649,000 Nikko Securities Co., Ltd........ 7,661,451
848 Nippon Telegraph & Telephone Corp. 10,520,994
279,000 Nomura Securities Co., Ltd....... 7,026,341
999 NTT Mobile Communication Network. 33,390,954
221,000 Pioneer Corp..................... 6,036,295
59,300 Rohm Co., Ltd.................... 19,875,561
1,900,000 Sakura Bank, Ltd................. 13,334,568
403,000 Sanwa Bank (The), Ltd............ 3,895,486
15,998 Shohkoh Fund & Co., Ltd.......... 2,858,770
7,000 Softbank Corp.*.................. 1,730,475
3,500 Softbank Corp.................... 861,997
80,000 Taisho Pharmaceuticals Co........ 2,681,357
220,000 Takeda Chemical Industries....... 14,482,663
44,100 Takefuji Corp.................... 4,667,034
125,000 Yamanouchi Pharmaceutical Co.,
Ltd. ......................... 6,608,490
------------
189,294,655
------------
KOREA - 1.14%
106,700 Korea Telecom, ADR............... 3,681,150
13,145 Samsung Electronics Co., Ltd.,
GDR (A)* ..................... 2,118,645
92,025 SK Telecom Ltd., ADR............. 2,950,552
------------
8,750,347
------------
MEXICO - 0.76%
99,530 Telefonos de Mexico SA, ADR...... 5,853,608
------------
NETHERLANDS - 11.40%
117,250 Gucci Group NV, ADR.............. 10,274,031
93,565 ING Groep NV*.................... 5,105,298
276,768 Koninklijke Philips Electronics NV 12,346,492
332,453 KPN NV........................... 33,502,531
94,554 KPNQwest, NV*.................... 3,928,328
71,105 Laurus NV........................ 759,538
39,837 Vendex KBB NV.................... 613,858
361,976 VNU NV........................... 19,365,910
114,426 World Online International, NV*.. 1,539,565
------------
87,435,551
------------
SINGAPORE - 1.22%
678,000 DBS Group Holdings Ltd........... 9,336,654
------------
SPAIN - 1.65%
567,939 Telefonica SA*................... 12,639,351
------------
SEE NOTES TO FINANCIAL STATEMENTS.
34
<PAGE>
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
SWEDEN - 2.43%
209,959 Ericsson LM, B Shares............ $ 18,665,624
------------
SWITZERLAND - 1.92%
18,092 Clariant AG...................... 6,594,349
5,831 Novartis AG, Registered.......... 8,139,815
------------
14,734,164
------------
UNITED KINGDOM - 17.16%
265,737 AstraZeneca, Plc................. 11,125,091
2,476,224 British Aerospace, Plc........... 15,189,619
731,795 Cable & Wireless Plc............. 12,111,095
926,084 Diageo, Plc...................... 7,490,256
69,690 Energis Plc.*.................... 3,439,462
488,601 Glaxo Wellcome, Plc.............. 15,069,525
1 Powergen......................... 6
460,085 Railtrack Group, Plc............. 5,823,571
1,387,864 Reed International, Plc.......... 9,604,603
1,322,829 Somerfield, Plc.................. 1,184,220
1,224,726 TeleWest Communications Plc.*.... 7,441,193
9,399,043 Vodafone AirTouch Plc............ 43,095,275
------------
131,573,916
------------
TOTAL COMMON STOCKS ............. 721,608,405
------------
(Cost $546,188,534)
PAR VALUE VALUE
----------- ------------
REPURCHASE AGREEMENT - 6.12%
$46,889,000 Repurchase Agreement with:
State Street Bank
5.71%, Due 05/01/00, dated 04/28/00
Repurchase Price $46,911,311
(Collateralized by U.S. Treasury Bond
7.50%, Due 11/15/16;
Total Par $41,635,000,
Market Value $47,828,206) ....... $ 46,889,000
------------
TOTAL REPURCHASE AGREEMENT ...... 46,889,000
------------
(Cost $46,889,000)
TOTAL INVESTMENTS - 100.23%........................ 768,497,405
------------
(Cost $593,077,534)
NET OTHER ASSETS AND LIABILITIES - (0.23)%......... (1,756,278)
------------
NET ASSETS - 100.00%............................... $766,741,127
============
------------------------------------------------------------
* 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, 2000, these securities
amounted to $4,680,703 or 0.61% of net assets.
ADR American Depositary Receipt
GDR Global Depositary Receipt
FORWARD FOREIGN CURRENCY CONTRACTS SOLD:
UNREALIZED
CURRENCY CONTRACT TO SETTLEMENT CONTRACT APPRECIATION
VALUE DELIVER DATES AT VALUE (DEPRECIATION)
--------- ----------- ---------- ---------- --------------
157,750 EMU 05/02/00 $ 143,422 $ 352
173,416 EMU 05/02/00 157,677 (389)
291,379 EMU 05/03/00 264,955 (325)
---------- -----------
$ 566,054 $ (362)
========== ===========
---------------------------------
EMU Euro Monetary Unit
------------------------------------------------
INDUSTRY CONCENTRATION OF COMMON STOCKS
AS A PERCENTAGE OF NET ASSETS:
Technology 30.45%
Consumer Staples 15.16
Finance 12.65
Consumer Cyclical 12.47
Utilities 10.79
Industrial 8.47
Diversified 2.34
Energy 1.18
Basic Material 0.60
------
94.11%
======
SEE NOTES TO FINANCIAL STATEMENTS.
35
<PAGE>
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 94.55%
INDUSTRIAL - 21.48%
149,000 ABC-NACO, Inc.*.................. $ 1,657,625
80,050 Advanced Technical Products, Inc.* 330,206
161,500 Airgas Inc....................... 948,813
194,900 AirNet Systems, Inc.*............ 962,319
145,400 Analogic Corp.................... 5,915,963
180,200 Benchmark Electronics, Inc.*..... 7,241,788
64,600 Calgon Carbon Corp............... 407,788
163,400 Capital Environmental Resource,
Inc.* ........................ 674,025
10,000 Centex Construction Products, Inc. 308,750
127,550 Chicago Bridge & Iron Co., N.V... 1,937,166
78,100 CLARCOR, Inc..................... 1,405,800
87,400 CTB International Corp.*......... 693,738
159,000 Dayton Superior Corp., Class A*.. 4,064,438
177,400 Denison International Plc, ADR*.. 2,328,375
73,700 Dexter Corp...................... 4,044,288
186,275 Farr Co.*........................ 3,230,707
85,900 Gerber Scientific, Inc........... 1,191,863
73,700 Giga-Tronics, Inc.*.............. 801,488
123,500 Greif Brothers Corp., Class A.... 4,075,500
197,300 ITI Technologies, Inc.*.......... 5,068,144
165,100 Kaman Corp., Class A............. 1,754,188
30,400 Keithley Instruments, Inc........ 1,694,800
80,600 Key Technology, Inc.*............ 624,650
47,710 K-Tron International, Inc.*...... 760,378
75,100 Ladish Co., Inc.*................ 591,413
104,000 Layne Christensen Co.*........... 442,000
35,242 Lennox International, Inc........ 297,354
169,800 Longview Fibre Co................ 2,164,950
197,300 LSI Industries, Inc.............. 3,526,738
23,900 Methode Electronics, Inc., Class A 995,958
204,400 NCI Building Systems, Inc.*...... 3,909,150
186,100 Northwest Pipe Co.*.............. 2,489,088
400 Rogers Corp.*.................... 26,950
129,750 Shaw Group, Inc.*................ 4,614,234
80,700 Smith (A.O.) Corp................ 1,659,394
163,544 Terex Corp.*..................... 2,555,375
87,400 TransTechnology Corp............. 1,229,063
134,000 Valmont Industries, Inc.......... 2,663,250
74,700 Willis Lease Finance Corp.*...... 550,913
101,000 Wood's (T.B.) Corp............... 909,000
------------
80,747,630
------------
CONSUMER STAPLES - 19.78%
65,400 American Healthways, Inc.*....... 265,687
67,900 ASI Solutions, Inc.*............. 263,112
48,700 ATS Medical, Inc.*............... 496,131
319,666 Bindley Western Industries, Inc.. 5,574,176
116,700 Budget Group, Inc., Class A*..... 547,031
74,400 Burns International Services Corp.* 809,100
185,900 Children's Comprehensive Services,
Inc.* ........................ 557,700
174,300 Condor Technology Solutions, Inc.* 108,937
130,200 Datascope Corp................... 4,312,875
161,400 Delta & Pine Land Co............. 3,389,400
194,400 Health Management Systems, Inc.*. 765,450
225,826 ICN Pharmaceuticals, Inc......... 5,687,992
SHARES VALUE
----------- ------------
CONSUMER STAPLES (CONTINUED)
81,100 Ingles Markets, Inc., Class A.... $ 811,000
243,200 Interim Services, Inc.*.......... 4,164,800
251,700 Invacare Corp.................... 6,732,975
153,500 ITT Educational Services, Inc.*.. 2,743,812
240,900 Jostens, Inc..................... 5,947,219
40,500 Korn/Ferry International*........ 1,073,250
168,200 Kroll-O'Gara (The) Co.*.......... 1,293,037
94,300 Lifecore Biomedical, Inc.*....... 624,737
100,200 Marketing Specialists Corp.*..... 228,581
98,000 Michael Foods, Inc............... 2,100,875
139,875 Minntech Corp.................... 1,188,937
127,700 MPW Industrial Services Group, Inc.* 925,825
57,500 Nashua Corp.*.................... 460,000
403,100 Nextera Enterprises, Inc., Class A* 2,670,537
98,000 Northland Cranberries, Inc., Class A 355,250
46,200 Noven Pharmaceuticals, Inc.*..... 542,850
124,600 Performance Food Group Co.*...... 3,286,325
192,500 PSS World Medical, Inc.*......... 1,654,297
18,000 RemedyTemp, Inc., Class A*....... 356,625
474,825 Res-Care, Inc.*.................. 5,193,398
195,521 Respironics, Inc.*............... 3,177,216
156,000 Romac International, Inc.*....... 1,608,750
241,000 SOS Staffing Services, Inc.*..... 753,125
194,300 Total Renal Care Holdings, Inc.*. 558,612
44,100 United Natural Foods, Inc.*...... 667,012
233,700 Vlasic Foods International, Inc.* 408,975
45,800 Wackenhut Corp., Class A......... 603,987
122,400 Westaff, Inc.*................... 887,400
114,300 York Group, Inc.................. 557,212
------------
74,354,210
------------
CONSUMER CYCLICAL - 16.08%
145,450 ADVO, Inc.*...................... 4,363,500
194,100 American Homestar Corp.*......... 266,887
96,900 Anicom, Inc.*.................... 460,275
128,200 Applebee's International, Inc.... 4,671,287
72,600 Atlantic Coast Airlines Holdings,
Inc.* ........................ 2,168,925
71,650 Bassett Furniture Industries, Inc. 953,841
61,300 Beazer Homes USA, Inc.*.......... 1,172,362
123,900 CEC Entertainment, Inc.*......... 3,717,000
86,700 Culp, Inc........................ 503,944
80,700 Ethan Allen Interiors, Inc....... 2,153,681
169,300 Friendly Ice Cream Corp.*........ 724,816
99,800 G & K Services, Inc., Class A.... 2,445,100
138,100 Goody's Family Clothing, Inc.*... 897,650
105,800 Houghton Mifflin Co.............. 4,397,312
166,250 InterTAN, Inc.*.................. 2,296,328
92,800 K2, Inc.......................... 661,200
74,000 Midwest Express Holdings, Inc.*.. 1,873,125
219,816 Morrison Management Specialists,
Inc. ......................... 6,086,164
97,100 Musicland Stores Corp.*.......... 728,250
46,500 Newmark Homes Corp.*............. 255,750
215,205 O'Charley's, Inc.*............... 2,730,413
94,400 Oshkosh Truck Corp............... 2,973,600
164,900 R & B, Inc.*..................... 505,006
83,600 Rocky Shoes & Boots, Inc.*....... 491,150
53,100 Ruby Tuesday, Inc................ 1,111,781
SEE NOTES TO FINANCIAL STATEMENTS.
36
<PAGE>
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
CONSUMER CYCLICAL (CONTINUED)
158,500 Ryan's Family Steak Houses, Inc.* $ 1,550,328
66,300 Toll Brothers, Inc.*............. 1,437,881
84,100 Toro Co.......................... 2,586,075
264,600 Unifirst Corp.................... 2,546,775
113,300 WestPoint Stevens, Inc........... 2,124,375
75,100 Young Broadcasting, Inc., Class A* 1,614,650
------------
60,469,431
------------
FINANCE - 12.75%
70,000 American Annuity Group, Inc...... 1,168,125
72,700 AmeriCredit Corp.*............... 1,358,581
113,120 AmerUS Life Holdings, Inc., Class A 2,255,330
85,600 Annuity & Life Re (Holdings), Ltd. 1,851,100
77,900 Brandywine Realty Trust, REIT.... 1,353,513
55,150 Brown & Brown, Inc., Class A..... 2,212,894
17 City National Corp............... 626
64,600 Connecticut Bancshares, Inc.*.... 770,153
127,900 Corporate Office Properties Trust,
Inc., REIT.................... 1,103,138
43,900 Equity One, Inc., REIT........... 397,844
41,691 Hanmi Bank*...................... 515,926
277,825 Healthcare Financial Partners, Inc.,
REIT (A)*........................ 5,556,500
111,130 Healthcare Financial Partners, Inc.,
WTS, (A)*
Expires 04/29/2001............... 0
65,650 Healthcare Realty Trust, Inc., REIT 1,181,700
151,483 Heller Financial, Inc............ 2,944,451
40,400 Horace Mann Educators Corp....... 588,325
64,600 HSB Group, Inc................... 1,873,400
107,500 Innkeepers USA Trust, Inc., REIT. 967,500
50,000 IRT Property Co., REIT........... 415,625
24,400 Kansas City Life Insurance Co.... 661,850
89,900 Life Financial Corp.*............ 314,650
138,000 Matrix Bancorp, Inc.*............ 1,035,000
56,100 National Golf Properties, Inc., REIT 1,072,913
147,200 North Fork Bancorporation, Inc... 2,382,800
60,000 Ohio Casualty Corp............... 997,500
18,300 PICO Holdings, Inc.*............. 192,150
36,300 Prime Group Realty Trust, REIT... 537,694
406,240 Republic Bancorp, Inc............ 4,011,620
97,500 Seacoast Financial Services Corp. 914,063
126,100 Selective Insurance Group, Inc... 2,388,019
50,800 SL Green Realty Corp., REIT...... 1,304,925
126,900 Superior Financial Corp.*........ 1,332,450
89,100 Texas Regional Bancshares, Inc.,
Class A ...................... 2,544,919
80,700 Webster Financial Corp........... 1,724,963
------------
47,930,247
------------
ENERGY - 11.26%
32,300 Atwood Oceanics, Inc.*........... 1,958,187
108,700 Bellwether Exploration Co.*...... 631,819
141,200 Callon Petroleum Co.*............ 1,915,025
163,000 Cross Timbers Oil Co............. 2,353,312
68,900 Devon Energy Corp................ 3,320,119
81,300 Evergreen Resources, Inc.*....... 1,880,062
SHARES VALUE
----------- ------------
ENERGY (CONTINUED)
128,800 Gulfmark Offshore, Inc.*......... $ 2,270,100
169,700 Houston Exploration (The) Co.*... 3,065,206
134,700 Key Production Co., Inc.*........ 1,776,356
177,400 Louis Dreyfus Natural Gas Corp.*. 4,967,200
117,600 Marine Drilling Cos., Inc.*...... 3,057,600
171,020 Meridian Resource Corp.*......... 619,947
165,100 Midcoast Energy Resources, Inc... 2,620,962
40,000 Nuevo Energy Co.*................ 700,000
90,800 Oceaneering International, Inc.*. 1,566,300
133,200 Pennaco Energy, Inc.*............ 1,981,350
44,800 Pogo Producing Co................ 1,148,000
53,700 Pride International, Inc.*....... 1,214,962
90,000 Triton Energy Ltd.*.............. 3,279,375
102,000 Vintage Petroleum, Inc........... 2,027,250
------------
42,353,132
------------
TECHNOLOGY - 9.34%
145,500 Acxiom Corp.*.................... 3,928,500
107,200 Analysts International Corp...... 1,192,600
114,700 Bell & Howell Co.*............... 3,046,719
33,400 Clare (C.P.) Corp.*.............. 236,931
135,100 Comptek Research, Inc.*.......... 2,127,825
323,200 Computer Task Group, Inc......... 2,747,200
149,000 CT Communications, Inc........... 4,507,250
193,400 Hypercom Corp.*.................. 2,828,475
21,200 Hyperion Solutions Corp.*........ 642,956
227,300 Infinium Software, Inc.*......... 980,231
86,600 infoUSA, Inc.*................... 503,363
108,200 Landmark Systems Corp.*.......... 628,913
119,500 Mentor Graphics Corp.*........... 1,568,438
155,500 Metro Information Services, Inc.* 2,118,688
64,600 Motient Corp.*................... 807,500
149,200 MSC.Software Corp.*.............. 1,417,400
116,650 Peak International, Ltd.*........ 1,071,722
48,600 S3, Inc.*........................ 683,438
73,500 Sybase, Inc.*.................... 1,483,781
66,600 Telemate.Net Software, Inc.*..... 274,725
64,600 3DO (The) Co.*................... 395,675
123,100 World Access, Inc.*.............. 1,938,825
------------
35,131,155
------------
UTILITIES - 3.03%
100,550 Atmos Energy Corp................ 1,596,231
99,650 Cascade Natural Gas Corp......... 1,606,856
32,300 Kansas City Power & Light Co..... 829,706
20,000 Middlesex Water Co., Inc......... 578,750
44,500 New Jersey Resources Corp........ 1,791,125
42,400 NUI Corp......................... 1,134,200
64,600 Philadelphia Suburban Corp....... 1,550,400
34,500 South Jersey Industries, Inc..... 922,875
73,000 Southwest Gas Corp............... 1,391,563
------------
11,401,706
------------
SEE NOTES TO FINANCIAL STATEMENTS.
37
<PAGE>
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
BASIC MATERIALS - 0.83%
38,800 Lindberg Corp.................... $ 276,450
123,300 Reliance Steel & Aluminum Co..... 2,835,900
------------
3,112,350
------------
TOTAL COMMON STOCKS ............. 355,499,861
------------
(Cost $357,723,293)
PAR VALUE
---------
CORPORATE BOND - 0.09%
$ 369,900 MSC.Software Corp.
Convertible Subordinated Debenture
7.88%, 08/18/04 ................. 337,996
------------
TOTAL CORPORATE BOND ............ 337,996
------------
(Cost $369,900)
PAR VALUE VALUE
----------- ------------
REPURCHASE AGREEMENT - 5.13%
$19,271,000 Repurchase Agreement with:
State Street Bank
5.71%, 05/01/00, dated 04/28/00
Repurchase Price $19,280,170
(Collateralized by U.S. Treasury Note
5.88%, Due 11/30/01;
Total Par $19,375,000,
Market Value $19,659,929)........ $ 19,271,000
------------
TOTAL REPURCHASE AGREEMENT ...... 19,271,000
------------
(Cost $19,271,000)
TOTAL INVESTMENTS - 99.77%......................... 375,108,857
------------
(Cost $377,364,193)
NET OTHER ASSETS AND LIABILITIES - 0.23%........... 867,158
------------
NET ASSETS - 100.00%............................... $375,976,015
============
------------------------------------------------------------------
* Non-incoming 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, 2000, these securities
amounted to $5,556,500 or 1.48% 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, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
COMMON STOCKS - 92.12%
TECHNOLOGY - 35.87%
44,800 24/7 Media, Inc.................. $ 879,200
55,700 Accrue Software, Inc.*........... 1,326,356
85,900 Actel Corp.*..................... 3,162,194
2,700 Active Software, Inc.*........... 108,844
123,600 Advanced Fibre Communications, Inc.* 5,646,975
115,200 Advanced Radio Telecom Corp.*.... 1,922,400
87,300 Aeroflex, Inc.*.................. 3,251,925
5,300 Aether Systems, Inc.*............ 882,367
41,800 Airgate Pcs, Inc.*............... 3,584,350
5,427 Akamai Technologies, Inc. *...... 536,578
26,900 Amkor Technology, Inc.*.......... 1,645,944
39,400 Ancor Communications, Inc.*...... 1,189,388
17,400 AnswerThink Consulting Group, Inc.* 334,950
55,700 Apex, Inc.*...................... 1,646,631
25,400 Arguss Holdings, Inc.*........... 552,450
23,200 Art Technology Group, Inc.*...... 1,409,400
88,100 BindView Development Corp.*...... 710,306
27,900 Bluestone Software, Inc.*........ 587,644
58,800 Braun Consulting, Inc.*.......... 1,470,000
84,600 Brio Technology, Inc.*........... 2,093,850
45,000 Broadbase Software, Inc.*........ 711,563
55,700 Commtouch Software, Ltd.*........ 1,176,663
58,700 Complete Business Solutions, Inc.* 1,342,763
57,200 Computer Network Technology Corp.* 922,350
67,750 Concord Communications, Inc.*.... 1,897,000
12,332 Cree Research, Inc.*............. 1,794,306
11,300 Crossroads Systems, Inc.*........ 798,063
77,850 Cybex Computer Products Corp.*... 2,131,144
111,300 Datastream Systems, Inc.*........ 1,558,200
120,500 Davel Communications Corp.*...... 180,750
138,000 Deltek Systems, Inc.*............ 1,681,875
85,000 Documentum, Inc.*................ 5,015,000
42,200 DuPont Photomasks, Inc.*......... 2,365,838
7,100 Efficient Networks, Inc.*........ 466,825
57,500 Eloyalty Corp.*.................. 945,156
85,000 Eltrax Systems, Inc.*............ 573,750
18,200 EMCORE Corp.*.................... 1,578,850
21,400 Emulex Corp.*.................... 971,025
172,200 Exchange Applications, Inc.*..... 2,098,688
57,500 Gadzoox Networks, Inc.*.......... 2,120,313
114,800 Galileo Technology, Ltd.*........ 2,016,175
30,700 Globecomm Systems, Inc.*......... 579,463
30,700 Great Plains Software, Inc.*..... 1,298,994
145,800 Healthgate Data Corp.*........... 628,763
54,300 HEICO Corp....................... 800,925
142,600 HEICO Corp., Class A............. 1,996,400
121,700 Hyperion Solutions Corp.*........ 3,690,933
86,200 ICG Communications, Inc.*........ 2,564,450
139,225 IMRglobal Corp.*................. 1,792,522
99,000 Inso Corp.*...................... 457,875
144,300 Interact Commerce Corp.*......... 2,110,388
117,200 International Fibercom, Inc.*.... 2,131,575
86,110 Internet Pictures Corp.*......... 1,356,233
83,800 Internet.Com Corp.*.............. 1,592,200
111,900 IntraNet Solutions, Inc.*........ 2,489,775
85,400 iVillage, Inc.*.................. 859,338
SHARES VALUE
----------- ------------
TECHNOLOGY (CONTINUED)
110,400 Kopin Corp.*..................... $ 8,549,100
42,400 L90, Inc.*....................... 424,000
114,900 Lightbridge, Inc.*............... 2,412,900
86,000 LTX Corp.*....................... 3,934,500
43,500 MarchFirst, Inc.*................ 927,094
73,800 Marimba, Inc.*................... 1,462,163
28,200 MasTec, Inc.*.................... 2,435,775
210,650 Mercator Software, Inc.*......... 7,754,553
140,300 Metacreations Corp.*............. 1,569,606
126,600 Metamor Worldwide, Inc.*......... 2,452,875
124,200 Metro Information Services, Inc.* 1,692,225
63,100 MMC Networks, Inc.*.............. 1,672,150
113,500 National Instruments Corp.*...... 5,533,125
87,000 Netegrity, Inc.*................. 3,860,625
13,900 NetOptix Corp.*.................. 2,451,613
39,900 PC-Tel, Inc.*.................... 1,336,650
182,100 Per-Se Technologies, Inc.*....... 1,240,556
155,300 Pervasive Software, Inc.*........ 1,091,953
1,500 Pioneer Standard Electronics, Inc. 22,969
25,700 Powertel, Inc.*.................. 1,728,325
98,900 Price Communications Corp.*...... 2,002,725
5,150 ProBusiness Services, Inc.*...... 135,831
11,400 Proxim, Inc.*.................... 877,088
11,800 PSW Technologies, Inc.*.......... 268,450
141,700 PTEK Holdings, Inc.*............. 717,356
53,200 Qlogic Corp.*.................... 5,336,625
28,600 Quest Software, Inc.*............ 1,077,863
86,400 RSA Security, Inc.*.............. 5,070,600
35,800 Santa Cruz Operation (The), Inc.* 217,038
32,250 SeaChange International Inc.*.... 967,500
172,300 Secure Computing Corp.*.......... 2,142,981
197,700 Showcase Corp.*.................. 1,186,200
111,800 Spectralink Corp.*............... 1,614,113
71,245 SPSS, Inc.*...................... 2,030,483
85,000 Sykes Enterprises, Inc.*......... 1,700,000
56,500 Tanning Technology Corp.*........ 1,038,188
115,600 Tekelec, Inc.*................... 4,046,000
112,700 Telxon Corp.*.................... 1,662,325
22,900 Terayon Communication Systems, Inc.* 2,129,700
180,700 Tier Technologies, Inc.*......... 1,135,022
79,800 Tollgrade Communcations, Inc.*... 5,266,800
33,750 TranSwitch Corp.*................ 2,972,109
141,700 United Shipping & Technology, Inc.* 1,638,406
56,500 US Interactive, Inc.*............ 939,313
55,700 Varian Semiconductor Equipment*.. 3,745,825
111,400 Webhire, Inc.*................... 835,500
29,600 WebTrends, Corp.*................ 971,250
102,750 WinStar Communications, Inc.*.... 4,097,156
32,100 Zi Corp.*........................ 361,125
85,000 Ziplink, Inc.*................... 759,688
------------
199,133,900
------------
INDUSTRIAL - 16.18%
85,200 Artesyn Technologies, Inc.*...... 2,066,100
78,300 Astec Industries, Inc.*.......... 1,967,287
115,400 Asyst Technologies, Inc.*........ 6,173,900
137,300 Atlas Air, Inc.*................. 4,796,919
SEE NOTES TO FINANCIAL STATEMENTS.
39
<PAGE>
SMALL COMPANY EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
INDUSTRIAL (CONTINUED)
112,900 Audiovox Corp.*.................. $ 3,873,881
57,500 Axsys Technologies*.............. 700,781
17,700 Belden, Inc...................... 525,469
30,100 Brooks Automation, Inc.*......... 2,699,594
124,700 Casella Waste Systems, Inc., Class A* 927,456
114,900 Cidco*........................... 430,875
58,700 Cognex Corp.*.................... 3,338,562
52,100 Cohu, Inc........................ 1,983,056
119,675 CUNO, Inc.*...................... 3,246,184
84,150 Dycom Industries, Inc.*.......... 4,375,800
175,425 Dynamex, Inc.*................... 175,425
28,100 EGL, Inc.*....................... 644,544
54,900 Expeditors International of
Washington, Inc.................. 2,346,975
118,300 Gentex Corp.*.................... 3,815,175
87,300 Helix Technology Corp............ 4,457,756
199,300 Hexcel Corp.*.................... 1,694,050
69,700 Kent Electronics Corp.*.......... 2,034,369
76,300 Koala Corp.*..................... 1,154,037
116,500 Maverick Tube Corp.*............. 3,320,250
83,600 Methode Electronics, Inc., Class A 3,483,769
78,600 Millipore Corp................... 5,634,638
72,100 Nanometrics, Inc.*............... 2,766,838
206,600 NS Group, Inc.*.................. 3,279,775
284,110 PCD, Inc.*....................... 1,420,550
32,300 Plannar Systems, Inc.*........... 361,356
116,600 Presstek, Inc.*.................. 2,448,600
30,800 PRI Automation, Inc.*............ 2,460,150
113,600 TetraTech, Inc.*................. 2,676,700
91,400 Veeco Instruments, Inc.*......... 5,678,225
111,300 Zygo Corp.*...................... 2,838,150
------------
89,797,196
------------
CONSUMER STAPLES - 14.61%
71,500 Accredo Health, Inc.*............ 2,010,937
229,400 ATS Medical, Inc.*............... 2,337,012
85,900 Bright Horizon Family Solutions,
Inc.* ........................ 1,546,200
74,700 Charles River Associates, Inc.*.. 1,517,344
55,700 CV Therapeutics, Inc.*........... 2,221,037
134,300 Education Management, Inc.*...... 2,199,162
114,600 FirstService Corp.*.............. 1,246,275
160,000 Forrester Research, Inc.*........ 7,250,000
66,000 Fusion Medical Technologies, Inc.* 1,155,000
107,400 HeadHunter.NET, Inc.*............ 1,557,300
140,800 Hooper Holmes, Inc............... 2,446,400
118,400 Isis Pharmaceuticals, Inc.*...... 1,317,200
74,287 King Pharmaceuticals, Inc.*...... 3,667,921
69,200 Kroll-O'Gara (The) Co.*.......... 531,975
212,650 Labor Ready, Inc.*............... 1,927,141
35,000 LifePoint Hospitals, Inc.*....... 599,375
87,200 Luminex Corp.*................... 1,624,100
72,500 Management Network Group, Inc.*.. 1,286,875
178,550 META Group, Inc.*................ 4,017,375
184,300 Modis Professional Services, Inc.* 1,393,769
80,400 Natrol, Inc.*.................... 326,625
152,824 On Assignment, Inc.*............. 4,794,853
SHARES VALUE
----------- ------------
CONSUMER STAPLES (CONTINUED)
161,800 Orthodontic Centers of America,
Inc.* ........................ $ 3,428,137
100,700 Osteotech, Inc.*................. 717,487
84,070 Pre-Paid Legal Services, Inc.*... 2,690,240
188,000 ProsoftTraining.com*............. 3,149,000
89,000 Province Healthcare Co.*......... 2,569,875
42,300 Quanta Services, Inc.*........... 1,964,306
126,350 Renal Care Group, Inc.*.......... 2,819,184
225,864 Romac International, Inc.*....... 2,329,222
159,900 Source Information Management Co.* 2,358,525
146,400 Steiner Leisure, Ltd.*........... 2,946,300
94,800 TeleTech Holdings, Inc.*......... 3,092,850
163,900 Thoratec Laboratories Corp.*..... 1,741,437
269,400 Trico Marine Services, Inc.*..... 2,037,337
57,200 Varian Medical Systems, Inc.*.... 2,288,000
------------
81,105,776
------------
CONSUMER CYCLICAL - 12.87%
202,300 American Classic Voyages Co.*.... 4,058,644
55,700 Applebee's International, Inc.*.. 2,029,569
186,100 Bally Total Fitness Holding Corp.* 4,163,987
282,300 Brass Eagle, Inc.*............... 1,305,637
147,800 Callaway Golf Co................. 2,457,175
258,400 Cash America International, Inc.. 2,325,600
72,900 CBRL Group, Inc.*................ 1,011,487
157,300 CEC Entertainment, Inc.*......... 4,719,000
90,225 Cost Plus, Inc.*................. 2,757,502
114,900 D.R.Horton, Inc.................. 1,486,519
172,000 Dura Automotive Systems, Inc.*... 2,795,000
44,800 Frontline Capital Group*......... 767,200
43,000 Funco, Inc.*..................... 1,052,156
18,500 Hispanic Broadcasting Corp.*..... 1,869,656
114,900 International Game Technology*... 2,800,687
229,800 InterTAN, Inc.*.................. 3,174,112
57,500 Mobile Mini, Inc.*............... 1,200,312
141,700 Nu Skin Enterprises, Inc., Class A* 1,089,319
79,100 Pacific Sunwear of California, Inc.* 2,694,344
173,600 Pegasus Systems, Inc.*........... 3,081,400
258,400 Pier 1 Imports, Inc.............. 2,939,300
104,900 Pinnacle Entertainment, Inc.*.... 2,104,556
50,800 Polaris Industries, Inc.......... 1,555,750
213,400 Radio Unica Communications Corp.* 2,053,975
83,800 SAGA Communications, Inc., Class. A* 1,696,950
85,900 Sonic Corp.*..................... 2,389,094
172,400 Toll Brothers, Inc.*............. 3,738,925
233,200 Tower Automotive, Inc.*.......... 3,643,750
121,300 Travis Boats & Motors, Inc.*..... 712,637
114,900 Vans, Inc.*...................... 1,737,863
129,100 Wabash National Corp............. 1,880,019
12,600 Watsco, Inc...................... 162,225
------------
71,454,350
------------
ENERGY - 8.21%
55,700 Berkley Petroleum Corp.*......... 385,370
141,700 Cabot Oil & Gas Corp., Class A... 2,630,306
SEE NOTES TO FINANCIAL STATEMENTS.
40
<PAGE>
SMALL COMPANY EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
----------- ------------
232,600 Callon Petroleum Co.*............ $ 3,154,637
55,700 Devon Energy Corp................ 2,684,044
60,500 Evergreen Resources, Inc.*....... 1,399,062
87,400 Global Industries, Ltd.*......... 1,245,450
251,600 Key Energy Services, Inc.*....... 2,453,100
149,167 Magin Energy, Inc.*.............. 322,197
135,100 Marine Drilling Cos., Inc.*...... 3,512,600
92,000 Newfield Exploration Co.*........ 3,737,500
248,800 Newpark Resources, Inc.*......... 2,052,600
57,300 Noble Affiliates, Inc............ 2,066,381
55,700 Paramount Resources, Ltd.*....... 526,358
248,100 Pennaco Energy, Inc.*............ 3,690,487
111,300 Pride International, Inc.*....... 2,518,162
229,400 Santa Fe Snyder Corp.*........... 2,107,612
12,000 St. Mary Land & Exploration Co... 405,000
35,700 Stone Energy Corp.*.............. 1,686,825
172,400 Swift Energy Co.*................ 3,523,425
71,500 Tidewater, Inc................... 2,127,125
167,300 Vintage Petroleum, Inc........... 3,325,087
------------
45,553,328
------------
FINANCE - 2.80%
144,300 Annuity and Life Reassurance
Holdings ..................... 3,120,487
196,700 Fidelity National Financial, Inc. 2,901,325
86,200 MFC Bancorp, Ltd.*............... 668,050
44,600 Pinnacle Holdings, Inc., REIT.... 2,505,962
197,900 Riggs National Corp.............. 2,684,019
40,800 Southwest Bancorp of Texas, Inc.. 798,150
114,900 Westamerica Bancorp.............. 2,879,681
------------
15,557,674
------------
BASIC MATERIALS - 1.16%
173,200 RTI International Metals, Inc.*.. 1,829,425
347,800 Titanium Metals Corp............. 1,456,412
149,900 Uniroyal Technology Corp......... 3,147,900
------------
6,433,737
------------
UTILITIES - 0.42%
57,300 Intermedia Communications, Inc.*. 2,334,975
------------
TOTAL COMMON STOCKS ............. 511,370,936
------------
(Cost $423,126,237)
PAR VALUE VALUE
----------- ------------
REPURCHASE AGREEMENT - 9.06%
$50,288,000 Repurchase Agreement with:
State Street Bank
5.71%, Due 05/01/00, dated 04/28/00
Repurchase Price $50,311,929
(Collateralized by U.S. Treasury Bond
6.13%, Due 11/15/27;
Total Par $50,725,000,
Market Value $51,295,656)........ $ 50,288,000
------------
TOTAL REPURCHASE AGREEMENT ...... 50,288,000
------------
(Cost $50,288,000)
TOTAL INVESTMENTS - 101.18%........................ 561,658,936
------------
(Cost $473,414,237)
NET OTHER ASSETS AND LIABILITIES - (1.18)%......... (6,550,865)
------------
NET ASSETS - 100.00%............................... $555,108,071
============
------------------------------------------------------------
* Non-income producing security.
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS.
41
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
<TABLE>
ASSET ALLOCATION EQUITY INCOME GROWTH AND INCOME
FUND FUND FUND
------------- ------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost................................................. $585,059,432 $258,898,189 $471,080,428
Repurchase agreement................................................ -- 11,603,000 --
Net unrealized appreciation (depreciation) on investments........... 165,176,698 39,995,372 125,365,547
------------ ------------ ------------
Total investments at value.......................................... 750,236,130 310,496,561 596,445,975
Cash.................................................................. -- 468 --
Receivable for investments sold....................................... 249,240 27,953,255 --
Receivable for shares sold............................................ 866,494 120,839 236,549
Interest and dividends receivable..................................... 4,660,520 449,155 383,255
Tax reclaim receivable................................................ -- -- --
Deferred organizational expense (Note 2).............................. -- -- --
Other assets.......................................................... -- -- --
------------ ------------ ------------
Total Assets........................................................ 756,012,384 339,020,278 597,065,779
------------ ------------ ------------
LIABILITIES:
Payable for open forward foreign currency contracts and foreign currency -- -- --
Payable for investments purchased..................................... 1,165,494 25,779,223 --
Payable to custodian.................................................. 2,031 -- 2,099,396
Payable for shares repurchased........................................ 1,300,525 345,019 1,023,752
Advisory fee payable (Note 3)......................................... 462,781 192,212 366,310
Payable to Fleet affiliates (Note 3).................................. 210,709 49,087 115,477
Payable to Administrator (Note 3)..................................... 97,826 46,122 81,685
Trustees' fees and expenses payable (Note 3).......................... 21,196 10,320 18,897
Accrued expenses and other payables................................... 73,611 47,929 80,081
------------ ------------ ------------
Total Liabilities................................................... 3,334,173 26,469,912 3,785,598
------------ ------------ ------------
NET ASSETS............................................................... $752,678,211 $312,550,366 $593,280,181
============ ============ ============
</TABLE>
<TABLE>
STRATEGIC EQUITY EQUITY VALUE EQUITY GROWTH
FUND FUND FUND
---------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost................................................. $84,360,153 $439,747,197 $1,082,981,505
Repurchase agreement................................................ 4,277,000 5,462,000 77,989,000
Net unrealized appreciation (depreciation) on investments........... 4,446,788 90,558,550 773,973,620
----------- ------------ --------------
Total investments at value.......................................... 93,083,941 535,767,747 1,934,944,125
Cash.................................................................. 691 381 914
Receivable for investments sold....................................... -- 15,712,535 --
Receivable for shares sold............................................ 3,148 376,060 2,793,096
Interest and dividends receivable..................................... 88,461 364,710 1,281,510
Tax reclaim receivable................................................ -- -- --
Deferred organizational expense (Note 2).............................. 9,654 -- --
Other assets.......................................................... 8 -- --
----------- ------------ --------------
Total Assets........................................................ 93,185,903 552,221,433 1,939,019,645
----------- ------------ --------------
LIABILITIES:
Payable for open forward foreign currency contracts and foreign currency
Payable for investments purchased..................................... -- -- --
Payable to custodian.................................................. -- 5,120,572 7,022,601
Payable for shares repurchased........................................ -- -- --
Advisory fee payable (Note 3)......................................... 3,133 647,275 1,914,585
Payable to Fleet affiliates (Note 3).................................. 41,435 337,458 1,162,955
Payable to Administrator (Note 3)..................................... 2,998 105,853 249,553
Trustees' fees and expenses payable (Note 3).......................... 2,901 86,384 207,714
Accrued expenses and other payables................................... 1,395 22,158 51,712
-- 93,881 140,026
Total Liabilities................................................... ----------- ------------ --------------
51,862 6,413,581 10,749,146
NET ASSETS............................................................... ----------- ------------ --------------
$93,134,041 $545,807,852 $1,928,270,499
=========== ============ =-============
</TABLE>
<TABLE>
INTERNATIONAL SMALL CAP SMALL COMPANY
EQUITY FUND VALUE FUND EQUITY FUND
------------- ---------- -------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost................................................. $546,188,534 $358,093,193 $423,126,237
Repurchase agreement................................................ 46,889,000 19,271,000 50,288,000
Net unrealized appreciation (depreciation) on investments........... 175,419,871 (2,255,336) 88,244,699
------------ ------------ ------------
Total investments at value.......................................... 768,497,405 375,108,857 561,658,936
Cash.................................................................. -- 687 1,495
Receivable for investments sold....................................... 734,409 1,764,750 9,042,493
Receivable for shares sold............................................ 3,774,634 692,390 2,787,250
Interest and dividends receivable..................................... 1,000,954 174,535 57,804
Tax reclaim receivable................................................ 277,773 -- --
Deferred organizational expense (Note 2).............................. -- -- --
Other assets.......................................................... -- -- 12,297
------------ ------------ ------------
Total Assets........................................................ 774,285,175 377,741,219 573,560,275
------------ ------------ ------------
LIABILITIES:
Payable for open forward foreign currency contracts and foreign currency
Payable for investments purchased..................................... 109,385 -- --
Payable to custodian.................................................. -- 1,121,282 12,010,904
Payable for shares repurchased........................................ 53,762 -- --
Advisory fee payable (Note 3)......................................... 6,761,810 300,423 5,939,431
Payable to Fleet affiliates (Note 3).................................. 402,832 224,348 343,831
Payable to Administrator (Note 3)..................................... 52,399 -- 75,193
Trustees' fees and expenses payable (Note 3).......................... 79,078 54,489 62,316
Accrued expenses and other payables................................... 13,765 9,291 14,056
71,017 55,371 6,473
Total Liabilities................................................... ------------ ------------ ------------
7,544,048 1,765,204 18,452,204
NET ASSETS............................................................... ------------ ------------ ------------
$766,741,127 $375,976,015 $555,108,071
============ ============ ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
42-43
<PAGE>
GALAXY EQUITY FUNDS
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
ASSET ALLOCATION EQUITY INCOME GROWTH AND INCOME
FUND FUND FUND
---------------- ------------- -----------------
<S> <C> <C> <C>
NET ASSETS CONSISTS OF:
Par value (Note 5).......................................... $ 40,561 $ 18,170 $ 36,475
Paid in capital in excess of par value...................... 583,571,511 247,738,190 448,044,685
Undistributed net investment income (loss).................. 1,988,174 376,427 (188,315)
Accumulated net realized gain on investments sold........... 1,901,267 24,422,207 20,021,789
Net unrealized appreciation (depreciation) of investments... 165,176,698 39,995,372 125,365,547
------------ ------------ ------------
TOTAL NET ASSETS............................................... $752,678,211 $312,550,366 $593,280,181
============ ============ ============
Retail A Shares:
Net Assets.................................................. $384,475,526 $198,856,992 $231,187,041
Shares of beneficial interest outstanding................... 20,708,335 11,563,953 14,224,484
NET ASSET VALUE and redemption price per share.............. $ 18.57 $ 17.20 $ 16.25
Sales charge - 3.75% of offering price...................... 0.72 0.67 0.63
------------ ------------ ------------
Maximum offering price per share............................ $ 19.29 $ 17.87 $ 16.88
============ ============ ============
Retail B Shares:
Net Assets.................................................. $101,099,069 $ 3,872,989 $ 64,708,087
Shares of beneficial interest outstanding................... 5,457,596 228,708 4,007,124
------------ ------------ ------------
NET ASSET VALUE and offering price per share* .............. $ 18.52 $ 16.93 $ 16.15
============ ============ ============
Trust Shares:
Net Assets.................................................. $266,340,384 $109,820,385 $297,099,522
Shares of beneficial interest outstanding................... 14,353,852 6,376,841 18,225,398
------------ ------------ ------------
NET ASSET VALUE, offering and redemption price per share.... $ 18.56 $ 17.22 $ 16.30
============ ============ ============
Prime A Shares:
Net Assets.................................................. $ 198,871 N/A $ 156,841
Shares of beneficial interest outstanding................... 10,717 N/A 9,636
NET ASSET VALUE and redemption price per share.............. $ 18.56 N/A $ 16.28
Sales charge - 5.50% of offering price ..................... 1.08 N/A 0.95
------------ ------------ ------------
Maximum offering price per share............................ $ 19.64 N/A $ 17.23
============ ============ ============
Prime B Shares:
Net Assets.................................................. $ 564,361 N/A $ 128,690
Shares of beneficial interest outstanding................... 30,446 N/A 7,928
------------ ------------ ------------
NET ASSET VALUE and offering price per share*............... $ 18.54 N/A $ 16.23
============ ============ ============
</TABLE>
<TABLE>
STRATEGIC EQUITY EQUITY VALUE EQUITY GROWTH
FUND FUND FUND
---------------- ------------ -------------
<S> <C> <C> <C>
NET ASSETS CONSISTS OF:
Par value (Note 5).......................................... $ 9,552 $ 31,549 $ 58,477
Paid in capital in excess of par value...................... 86,709,380 414,929,934 1,024,361,219
Undistributed net investment income (loss).................. 67,113 (314,889) (724,704)
Accumulated net realized gain on investments sold........... 1,901,208 40,602,708 130,601,887
Net unrealized appreciation (depreciation) of investments... 4,446,788 90,558,550 773,973,620
----------- ------------ --------------
TOTAL NET ASSETS............................................... $93,134,041 $545,807,852 $1,928,270,499
=========== ============ ==============
Retail A Shares:
Net Assets.................................................. $ 7,804,038 $251,683,557 $ 563,769,905
Shares of beneficial interest outstanding................... 801,116 14,569,432 17,146,626
NET ASSET VALUE and redemption price per share.............. $ 9.74 $ 17.27 $ 32.88
Sales charge - 3.75% of offering price...................... 0.38 0.67 1.28
----------- ------------ --------------
Maximum offering price per share............................ $ 10.12 $ 17.94 $ 34.16
=========== ============ ==============
Retail B Shares:
Net Assets.................................................. $ 1,491,222 $ 32,955,143 $ 113,779,961
Shares of beneficial interest outstanding................... 154,088 1,937,460 3,567,574
----------- ------------ --------------
NET ASSET VALUE and offering price per share* .............. $ 9.68 $ 17.01 $ 31.89
=========== ============ ==============
Trust Shares:
Net Assets.................................................. $83,838,781 $261,169,152 $1,250,147,467
Shares of beneficial interest outstanding................... 8,596,301 15,041,979 37,745,284
----------- ------------ --------------
NET ASSET VALUE, offering and redemption price per share.... $ 9.75 $ 17.36 $ 33.12
=========== ============ ==============
Prime A Shares:
Net Assets.................................................. N/A N/A $ 130,078
Shares of beneficial interest outstanding................... N/A N/A 3,959
NET ASSET VALUE and redemption price per share.............. N/A N/A $ 32.86
Sales charge - 5.50% of offering price ..................... N/A N/A 1.91
----------- ------------ --------------
Maximum offering price per share............................ N/A N/A $ 34.77
=========== ============ ==============
Prime B Shares:
Net Assets.................................................. N/A N/A $ 443,088
Shares of beneficial interest outstanding................... N/A N/A 13,592
----------- ------------ --------------
NET ASSET VALUE and offering price per share*............... N/A N/A $ 32.60
=========== ============ ==============
</TABLE>
<TABLE>
INTERNATIONAL SMALL CAP SMALL COMPANY
EQUITY FUND VALUE FUND EQUITY FUND
------------- ---------- -------------
<S> <C> <C> <C>
NET ASSETS CONSISTS OF:
Par value (Note 5).......................................... $ 34,544 $ 27,559 $ 23,003
Paid in capital in excess of par value...................... 554,066,769 349,688,161 379,214,308
Undistributed net investment income (loss).................. (160,066) 186,812 (2,160,836)
Accumulated net realized gain on investments sold........... 37,543,689 28,328,819 89,786,897
Net unrealized appreciation (depreciation) of investments... 175,256,191 (2,255,336) 88,244,699
------------ ------------ ------------
TOTAL NET ASSETS............................................... $766,741,127 $375,976,015 $555,108,071
============ ============ ============
Retail A Shares:
Net Assets.................................................. $119,485,539 $ 87,187,818 $127,636,332
Shares of beneficial interest outstanding................... 5,443,808 6,432,637 5,410,798
NET ASSET VALUE and redemption price per share.............. $ 21.95 $ 13.55 $ 23.59
Sales charge - 3.75% of offering price...................... 0.86 0.53 0.92
------------ ------------ ------------
Maximum offering price per share............................ $ 22.81 $ 14.08 $ 24.51
============ ============ ============
Retail B Shares:
Net Assets.................................................. $ 6,820,820 $ 2,490,633 $ 19,070,859
Shares of beneficial interest outstanding................... 311,930 184,691 829,080
------------ ------------ ------------
NET ASSET VALUE and offering price per share* .............. $ 21.87 $ 13.49 $ 23.00
============ ============ ============
Trust Shares:
Net Assets.................................................. $639,924,059 $285,963,400 $408,400,880
Shares of beneficial interest outstanding................... 28,764,612 20,916,656 16,763,382
------------ ------------ ------------
NET ASSET VALUE, offering and redemption price per share.... $ 22.25 $ 13.67 $ 24.36
============ ============ ============
Prime A Shares:
Net Assets.................................................. $ 16,025 $ 179,285 N/A
Shares of beneficial interest outstanding................... 727 13,157 N/A
NET ASSET VALUE and redemption price per share.............. $ 22.04 $ 13.63 N/A
Sales charge - 5.50% of offering price ..................... 1.28 0.79 N/A
------------ ------------ ------------
Maximum offering price per share............................ $ 23.32 $ 14.42 N/A
============ ============ ============
Prime B Shares:
Net Assets.................................................. $ 494,684 $ 154,879 N/A
Shares of beneficial interest outstanding................... 22,555 11,450 N/A
------------ ------------ ------------
NET ASSET VALUE and offering price per share*............... $ 21.93 $ 13.53 N/A
============ ============ ============
</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.
44-45
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
ASSET ALLOCATION EQUITY INCOME GROWTH AND INCOME
FUND FUND FUND
---------------- ------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2).............................................. $11,012,492 $ 2,933,814 $ 462,729
Dividends (Note 2)............................................. 1,503,269 774,147 4,535,011
Less: foreign taxes withheld (Note 2).......................... (7,750) -- --
----------- ------------ -----------
Total investment income...................................... 12,508,011 3,707,961 4,997,740
----------- ------------ -----------
EXPENSES:
Investment advisory fee (Note 3)............................... 2,795,500 1,180,448 2,204,075
Administration fee (Note 3).................................... 274,826 116,055 216,679
Custodian fee ................................................. 31,591 9,110 14,355
Fund accounting fee (Note 3) .................................. 59,873 30,853 56,254
Professional fees (Note 3) .................................... 22,567 16,227 20,702
Transfer agent fee (Note 3) ................................... 591,480 148,733 543,005
Shareholder services and 12b-1 fees (Note 3) .................. 975,933 300,466 615,255
Trustees' fees and expenses (Note 3) .......................... 10,843 3,734 9,241
Amortization of organization cost (Note 2) .................... -- -- --
Reports to shareholders ....................................... 73,756 34,354 69,615
Miscellaneous ................................................. 40,168 24,249 58,582
----------- ------------ -----------
Total expenses before reimbursement/waiver................... 4,876,537 1,864,229 3,807,763
----------- ------------ -----------
Less:reimbursement/waiver (Note 4) .......................... (732) (1,454) (125,061)
----------- ------------ -----------
Total expenses net of reimbursement/waiver .................. 4,875,805 1,862,775 3,682,702
----------- ------------ -----------
NET INVESTMENT INCOME (LOSS)...................................... 7,632,206 1,845,186 1,315,038
----------- ------------ -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTES 2 & 6):
Net realized gainon investments sold .......................... 2,182,422 24,467,510 20,436,616
Net realized gain on forward foreign currency
contracts and foreign currency .............................. -- -- --
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts ..... 45,079,519 (12,884,852) 24,252,602
----------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 47,261,941 11,582,658 44,689,218
----------- ------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............. $54,894,147 $ 13,427,844 $46,004,256
=========== ============ ===========
</TABLE>
<TABLE>
STRATEGIC EQUITY EQUITY VALUE EQUITY GROWTH
FUND FUND FUND
---------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2).............................................. $ 120,376 $ 155,642 $ 1,981,096
Dividends (Note 2)............................................. 599,270 3,439,961 6,861,343
Less: foreign taxes withheld (Note 2).......................... -- -- --
------------- -------------- -------------
Total investment income...................................... 719,646 3,595,603 8,842,439
------------- -------------- -------------
EXPENSES:
Investment advisory fee (Note 3)............................... 315,463 2,071,595 6,521,164
Administration fee (Note 3).................................... 31,005 203,668 640,939
Custodian fee ................................................. 8,784 17,048 13,967
Fund accounting fee (Note 3) .................................. 23,917 44,187 65,448
Professional fees (Note 3) .................................... 11,005 19,482 33,163
Transfer agent fee (Note 3) ................................... 16,277 460,233 832,350
Shareholder services and 12b-1 fees (Note 3) .................. 17,706 506,364 1,085,040
Trustees' fees and expenses (Note 3) .......................... 1,066 10,944 27,260
Amortization of organization cost (Note 2) .................... 1,695 -- --
Reports to shareholders ....................................... 2,293 58,009 118,111
Miscellaneous ................................................. 18,206 32,002 71,607
------------- -------------- -------------
Total expenses before reimbursement/waiver................... 447,417 3,423,532 9,409,049
------------- -------------- -------------
Less:reimbursement/waiver (Note 4) .......................... (93,947) (5,963) (309)
------------- -------------- -------------
Total expenses net of reimbursement/waiver .................. 353,470 3,417,569 9,408,740
------------- -------------- -------------
NET INVESTMENT INCOME (LOSS)...................................... 366,176 178,034 (566,301)
------------- -------------- -------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTES 2 & 6):
Net realized gainon investments sold .......................... 2,261,636 44,195,919 130,915,342
Net realized gain on forward foreign currency
contracts and foreign currency .............................. -- -- --
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts ..... 8,051,866 4,436,591 189,997,255
------------- -------------- -------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 10,313,502 48,632,510 320,912,597
------------- -------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............. $ 10,679,678 $ 48,810,544 $ 320,346,296
============= ============== =============
</TABLE>
<TABLE>
INTERNATIONAL SMALL CAP SMALL COMPANY
EQUITY FUND VALUE FUND EQUITY FUND
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest (Note 2).............................................. $ 816,445 $ 670,257 $ 596,575
Dividends (Note 2)............................................. 3,023,138 1,795,525 174,548
Less: foreign taxes withheld (Note 2).......................... (284,590) -- --
----------- ----------- -------------
Total investment income...................................... 3,554,993 2,465,782 771,123
----------- ----------- -------------
EXPENSES:
Investment advisory fee (Note 3)............................... 3,174,201 1,347,276 1,898,097
Administration fee (Note 3).................................... 266,650 132,445 186,553
Custodian fee ................................................. 290,202 20,792 109,512
Fund accounting fee (Note 3) .................................. 70,361 35,350 41,156
Professional fees (Note 3) .................................... 23,465 16,975 14,078
Transfer agent fee (Note 3) ................................... 294,339 233,410 377,001
Shareholder services and 12b-1 fees (Note 3) .................. 160,343 129,332 234,895
Trustees' fees and expenses (Note 3) .......................... 6,647 4,413 4,815
Amortization of organization cost (Note 2) .................... -- -- --
Reports to shareholders ....................................... 32,364 36,994 36,546
Miscellaneous ................................................. 45,872 37,402 30,879
----------- ----------- -------------
Total expenses before reimbursement/waiver................... 4,364,444 1,994,389 2,933,532
----------- ----------- -------------
Less:reimbursement/waiver (Note 4) .......................... (912,348) (92,837) (1,573)
----------- ----------- -------------
Total expenses net of reimbursement/waiver .................. 3,452,096 1,901,552 2,931,959
----------- ----------- -------------
NET INVESTMENT INCOME (LOSS)...................................... 102,897 564,230 (2,160,836)
----------- ----------- -------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS (NOTES 2 & 6):
Net realized gainon investments sold .......................... 37,439,042 28,342,235 126,548,271
Net realized gain on forward foreign currency
contracts and foreign currency .............................. 106,346 -- --
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts ..... 27,078,518 24,320,147 40,603,461
----------- ----------- -------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 64,623,906 52,662,382 167,151,732
----------- ----------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............. $64,726,803 $53,226,612 $ 164,990,896
=========== =========== =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
46-47
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
ASSET ALLOCATION FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------- -----------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD.................................. $750,884,394 $600,040,305
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... 7,632,206 15,025,994
Net realized gain on investments sold............................... 2,182,422 12,946,175
Net change in unrealized appreciation (depreciation) on investments. 45,079,519 30,773,026
------------ ------------
Net increase in net assets resulting from operations.............. 54,894,147 58,745,195
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income............................................... (4,066,619) (7,777,489)
Net realized gain on investments.................................... (6,720,946) (8,515,996)
------------ ------------
Total Dividends................................................... (10,787,565) (16,293,485)
------------ ------------
RETAIL B SHARES:
Net investment income .............................................. (681,919) (1,070,246)
Net realized gain on investments.................................... (1,621,536) (1,510,323)
------------ ------------
Total Dividends................................................... (2,303,455) (2,580,569)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (3,054,362) (5,707,139)
Net realized gain on investments.................................... (4,679,919) (5,671,923)
------------ ------------
Total Dividends................................................... (7,734,281) (11,379,062)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. (2,129) (3,417)
Net realized gain on investments.................................... (3,208) (880)
------------ ------------
Total Dividends................................................... (5,337) (4,297)
------------ ------------
PRIME B SHARES:
Net investment income .............................................. (4,171) (4,760)
Net realized gain on investments.................................... (9,571) (3,982)
------------ ------------
Total Dividends................................................... (13,742) (8,742)
------------ ------------
Total Dividends to shareholders................................... (20,844,380) (30,266,155)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... (32,255,950) 122,365,049
------------ ------------
Net increase (decrease) in net assets............................... 1,793,817 150,844,089
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $752,678,211 $750,884,394
============ ============
(A) Undistributed net investment income (loss)......................... $ 1,988,174 $ 2,165,168
============ ============
</TABLE>
<TABLE>
EQUITY INCOME FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------- -----------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD.................................. $336,432,455 $335,217,600
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... 1,845,186 3,904,177
Net realized gain on investments sold............................... 24,467,510 50,110,091
Net change in unrealized appreciation (depreciation) on investments. (12,884,852) (20,073,324)
------------ ------------
Net increase in net assets resulting from operations.............. 13,427,844 33,940,944
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income............................................... (1,070,935) (2,242,878)
Net realized gain on investments.................................... (31,691,075) (19,453,842)
------------ ------------
Total Dividends................................................... (32,762,010) (21,696,720)
------------ ------------
RETAIL B SHARES:
Net investment income .............................................. (7,753) (5,615)
Net realized gain on investments.................................... (524,089) (10,594)
------------ ------------
Total Dividends................................................... (531,842) (16,209)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (789,574) (1,851,694)
Net realized gain on investments.................................... (17,919,446) (11,818,814)
------------ ------------
Total Dividends................................................... (18,709,020) (13,670,508)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
PRIME B SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
Total Dividends to shareholders................................... (52,002,872) (35,383,437)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... 14,692,939 2,657,348
------------ ------------
Net increase (decrease) in net assets............................... (23,882,089) 1,214,855
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $312,550,366 $336,432,455
============ ============
(A) Undistributed net investment income (loss)......................... $ 376,427 $ 399,503
============ ============
</TABLE>
<TABLE>
GROWTH AND INCOME FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------- -----------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD.................................. $603,862,075 $521,385,834
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... 1,315,038 3,509,427
Net realized gain on investments sold............................... 20,436,616 33,835,048
Net change in unrealized appreciation (depreciation) on investments. 24,252,602 38,430,506
------------ ------------
Net increase in net assets resulting from operations.............. 46,004,256 75,774,981
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income............................................... (583,778) (1,218,495)
Net realized gain on investments.................................... (13,038,412) (13,044,487)
------------ ------------
Total Dividends................................................... (13,622,190) (14,262,982)
------------ ------------
RETAIL B SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (3,563,567) (3,253,512)
------------ ------------
Total Dividends................................................... (3,563,567) (3,253,512)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (1,067,270) (2,242,502)
Net realized gain on investments.................................... (17,166,606) (15,292,610)
------------ ------------
Total Dividends................................................... (18,233,876) (17,535,112)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. (453) (598)
Net realized gain on investments.................................... (8,534) (1,743)
------------ ------------
Total Dividends................................................... (8,987) (2,341)
------------ ------------
PRIME B SHARES:
Net investment income .............................................. -- (8)
Net realized gain on investments.................................... (7,365) (300)
------------ ------------
Total Dividends................................................... (7,365) (308)
------------ ------------
Total Dividends to shareholders................................... (35,435,985) (35,054,255)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... (21,150,165) 41,755,515
------------ ------------
Net increase (decrease) in net assets............................... (10,581,894) 82,476,241
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $593,280,181 $603,862,075
============ ============
(A) Undistributed net investment income (loss)......................... $ (188,315) $ 148,148
============ ============
</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.
48-49
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
STRATEGIC EQUITY FUND
------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $80,639,286 $67,694,596
----------- -----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)........................................ 366,176 626,431
Net realized gain on investments sold .............................. 2,261,636 9,902,448
Net change in unrealized appreciation (depreciation) on investments 8,051,866 (8,471,056)
----------- -----------
Net increase in net assets resulting from operations.............. 10,679,678 2,057,823
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. (21,782) (21,093)
Net realized gain on investments.................................... (925,957) (4,996)
----------- -----------
Total Dividends................................................... (947,739) (26,089)
----------- -----------
RETAIL B SHARES:
Net investment income .............................................. (651) --
Net realized gain on investments.................................... (172,346) (642)
----------- -----------
Total Dividends................................................... (172,997) (642)
----------- -----------
TRUST SHARES:
Net investment income .............................................. (357,058) (537,251)
Net realized gain on investments.................................... (8,843,322) (74,902)
----------- -----------
Total Dividends................................................... (9,200,380) (612,153)
----------- -----------
PRIME A SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
----------- -----------
Total Dividends................................................... N/A N/A
----------- -----------
PRIME B SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
----------- -----------
Total Dividends................................................... N/A N/A
----------- -----------
Total Dividends to shareholders................................... 10,321,116) (638,884)
----------- -----------
NET INCREASE FROM SHARE TRANSACTIONS(1)................................ 12,136,193 11,525,751
----------- -----------
Net increase (decrease) in net assets............................... 12,494,755 12,944,690
----------- -----------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A).................... $93,134,041 $80,639,286
=========== ===========
(A) Undistributed net investment income (loss)......................... $ 67,113 $ 80,428
=========== ===========
</TABLE>
<TABLE>
EQUITY VALUE FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $570,384,032 $512,264,110
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)........................................ 178,034 (123,979)
Net realized gain on investments sold .............................. 44,195,919 72,106,510
Net change in unrealized appreciation (depreciation) on investments 4,436,591 2,099,234
------------ ------------
Net increase in net assets resulting from operations.............. 48,810,544 74,081,765
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. (108,779) --
Net realized gain on investments.................................... (34,018,274) (8,586,482)
------------ ------------
Total Dividends................................................... (34,127,053) (8,586,482)
------------ ------------
RETAIL B SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (4,196,203) (858,586)
------------ ------------
Total Dividends................................................... (4,196,203) (858,586)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (384,144) --
Net realized gain on investments.................................... (36,588,334) (9,364,080)
------------ ------------
Total Dividends................................................... (36,972,478) (9,364,080)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
PRIME B SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments.................................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
Total Dividends to shareholders................................... (75,295,734) (18,809,148)
------------ ------------
NET INCREASE FROM SHARE TRANSACTIONS(1)................................ 1,909,010 2,847,305
------------ ------------
Net increase (decrease) in net assets............................... (24,576,180) 58,119,922
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $545,807,852 $570,384,032
============ ============
(A) Undistributed net investment income (loss)......................... $ (314,889) $ --
============ ============
</TABLE>
<TABLE>
EQUITY GROWTH FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $1,556,895,532 $1,163,399,747
-------------- --------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)........................................ (566,301) (80,529)
Net realized gain on investments sold .............................. 130,915,342 93,657,340
Net change in unrealized appreciation (depreciation) on investments 189,997,255 229,314,651
-------------- --------------
Net increase in net assets resulting from operations.............. 320,346,296 322,891,462
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (26,450,852) (24,495,721)
-------------- --------------
Total Dividends................................................... (26,450,852) (24,495,721)
-------------- --------------
RETAIL B SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (4,536,918) (2,777,725)
-------------- --------------
Total Dividends................................................... (4,536,918) (2,777,725)
-------------- --------------
TRUST SHARES:
Net investment income .............................................. (414,455) --
Net realized gain on investments.................................... (61,281,119) (63,315,181)
-------------- --------------
Total Dividends................................................... (61,695,574) (63,315,181)
-------------- --------------
PRIME A SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (6,282) (1,724)
-------------- --------------
Total Dividends................................................... (6,282) (1,724)
-------------- --------------
PRIME B SHARES:
Net investment income .............................................. -- --
Net realized gain on investments.................................... (14,655) (551)
-------------- --------------
Total Dividends................................................... (14,655) (551)
-------------- --------------
Total Dividends to shareholders................................... (92,704,281) (90,590,902)
-------------- --------------
NET INCREASE FROM SHARE TRANSACTIONS(1)................................ 143,732,952 161,195,225
-------------- --------------
Net increase (decrease) in net assets............................... 371,374,967 393,494,785
-------------- --------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $1,928,270,499 $1,556,895,532
============== ==============
(A) Undistributed net investment income (loss)......................... $ (724,704) $ 256,052
============== ==============
</TABLE>
-------------------------------------------------------------------------------
(1) For detail on share transactions by series, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 56-57.
SEE NOTES TO FINANCIAL STATEMENTS.
50-51
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
INTERNATIONAL EQUITY FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------- -----------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $593,762,099 $412,233,003
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... 102,897 2,242,586
Net realized gain (loss) on investments sold........................ 37,439,042 34,349,686
Net realized (loss) on forward foreign currency
contracts and foreign currency.................................... 106,346 (4,120,655)
Net change in unrealized appreciation (depreciation) on investments,
foreign currency and forward foreign currency contracts........... 27,078,518 94,656,598
------------ ------------
Net increase in net assets resulting from operations.............. 64,726,803 127,128,215
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. (228,709) (216,041)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (5,152,046) (2,270,202)
------------ ------------
Total Dividends................................................... (5,380,755) (2,486,243)
------------ ------------
RETAIL B SHARES:
Net investment income .............................................. -- (1,893)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (197,787) (8,529)
------------ ------------
Total Dividends................................................... (197,787) (10,422)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (4,007,069) (2,952,897)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (28,958,916) (11,473,155)
------------ ------------
Total Dividends................................................... (32,965,985) (14,426,052)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. (72) (40)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (697) (145)
------------ ------------
Total Dividends................................................... (769) (185)
------------ ------------
PRIME B SHARES:
Net investment income .............................................. -- (226)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (26,392) (990)
------------ ------------
Total Dividends................................................... (26,392) (1,216)
------------ ------------
Total Dividends to shareholders................................... (38,571,688) (16,924,118)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... 146,823,913 71,324,999
------------ ------------
Net increase in net assets.......................................... 172,979,028 181,529,096
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $766,741,127 $593,762,099
============ ============
(A) Undistributed net investment income (loss)......................... $ (160,066) $ 3,972,887
============ ============
</TABLE>
<TABLE>
SMALL CAP VALUE FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $338,139,079 $290,165,115
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... 564,230 1,242,403
Net realized gain (loss) on investments sold........................ 28,342,235 34,790,874
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........... 24,320,147 (19,900,548)
------------ ------------
Net increase in net assets resulting from operations.............. 53,226,612 16,132,729
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. (40,326) (181,459)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (8,365,694) (8,121,983)
------------ ------------
Total Dividends................................................... (8,406,020) (8,303,442)
------------ ------------
RETAIL B SHARES:
Net investment income ..............................................
Net realized gain on investments, forward foreign -- --
currency contracts and foreign currency........................... (193,642) (6,269)
------------ ------------
Total Dividends................................................... (193,642) (6,269)
------------ ------------
TRUST SHARES:
Net investment income .............................................. (467,906) (1,192,133)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (26,198,796) (19,251,259)
------------ ------------
Total Dividends................................................... (26,666,702) (20,443,392)
------------ ------------
PRIME A SHARES:
Net investment income .............................................. (139) (549)
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (18,207) (3,618)
------------ ------------
Total Dividends................................................... (18,346) (4,167)
------------ ------------
PRIME B SHARES:
Net investment income .............................................. -- --
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... (19,815) (7,602)
------------ ------------
Total Dividends................................................... (19,815) (7,602)
------------ ------------
Total Dividends to shareholders................................... (35,304,525) (28,764,872)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... 19,914,849 60,606,107
------------ ------------
Net increase in net assets.......................................... 37,836,936 47,973,964
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $375,976,015 $338,139,079
============ ============
(A) Undistributed net investment income (loss)......................... $ 186,812 $ 130,953
============ ============
</TABLE>
<TABLE>
SMALL COMPANY EQUITY FUND
---------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
------------- -------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF THE PERIOD................................. $333,458,325 $331,071,417
------------ ------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income............................................... (2,160,836) (3,795,371)
Net realized gain (loss) on investments sold........................ 126,548,271 (3,418,136)
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........... 40,603,461 56,108,824
------------ ------------
Net increase in net assets resulting from operations.............. 164,990,896 48,895,317
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
RETAIL A SHARES:
Net investment income .............................................. -- --
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... -- --
------------ ------------
Total Dividends................................................... -- --
------------ ------------
RETAIL B SHARES:
Net investment income ..............................................
Net realized gain on investments, forward foreign -- --
currency contracts and foreign currency........................... -- --
------------ ------------
Total Dividends................................................... -- --
------------ ------------
TRUST SHARES:
Net investment income .............................................. -- --
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... -- --
------------ ------------
Total Dividends................................................... -- --
------------ ------------
PRIME A SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
PRIME B SHARES:
Net investment income .............................................. N/A N/A
Net realized gain on investments, forward foreign
currency contracts and foreign currency........................... N/A N/A
------------ ------------
Total Dividends................................................... N/A N/A
------------ ------------
Total Dividends to shareholders................................... N/A N/A
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1)..................... 56,658,850 (46,508,409)
------------ ------------
Net increase in net assets.......................................... 221,649,746 2,386,908
------------ ------------
NET ASSETS AT END OF THE PERIOD (INCLUDING LINE A)..................... $555,108,071 $333,458,325
============ ============
(A) Undistributed net investment income (loss)......................... $ (2,160,836) $ --
============ ============
</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.
52-53
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY
<TABLE>
ASSET ALLOCATION FUND
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------- -----------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold.................................................... $ 24,630,656 $118,271,361
Issued to shareholders in reinvestment of dividends..... 10,582,507 16,019,107
Repurchased............................................. (57,462,589) (84,133,228)
------------ ------------
Net increase (decrease) in shares outstanding........... $(22,249,426) $ 50,157,240
============ ============
Retail B Shares:
Sold.................................................... $ 13,036,553 $ 39,055,990
Issued to shareholders in reinvestment of dividends..... 2,255,737 2,523,396
Repurchased............................................. (9,852,975) (11,038,602)
------------ ------------
Net increase in shares outstanding...................... $ 5,439,315 $ 30,540,784
============ ============
Trust Shares:
Sold.................................................... $ 24,664,014 $102,114,779
Issued to shareholders in reinvestment of dividends..... 7,254,709 10,601,826
Repurchased............................................. (47,336,002) (71,793,820)
------------ ------------
Net increase (decrease) in shares outstanding........... $(15,417,279) $ 40,922,785
============ ============
Prime A Shares:
Sold.................................................... $ 21,474 $ 303,889
Issued to shareholders in reinvestment of dividends..... 4,762 3,112
Repurchased............................................. (74,811) (74,220)
------------ ------------
Net increase (decrease) in shares outstanding........... $ (48,575) $ 232,781
============ ============
Prime B Shares:
Sold.................................................... $ 34,952 $ 550,948
Issued to shareholders in reinvestment of dividends..... 12,785 8,523
Repurchased............................................. (27,722) (48,012)
------------ ------------
Net increase (decrease) in shares outstanding........... $ 20,015 $ 511,459
============ ============
SHARE ACTIVITY
Retail A Shares:
Sold.................................................... 1,373,172 6,738,970
Issued to shareholders in reinvestment of dividends..... 598,179 928,441
Repurchased............................................. (3,198,155) (4,817,875)
------------ ------------
Net increase (decrease) in shares outstanding........... (1,226,804) 2,849,536
============ ============
Retail B Shares:
Sold.................................................... 727,441 2,215,628
Issued to shareholders in reinvestment of dividends..... 127,311 146,021
Repurchased............................................. (550,883) (629,222)
------------ ------------
Net increase in shares outstanding...................... 303,869 1,732,427
============ ============
Trust Shares:
Sold.................................................... 1,369,968 5,748,985
Issued to shareholders in reinvestment of dividends..... 410,388 613,319
Repurchased............................................. (2,649,273) (4,035,968)
------------ ------------
Net increase (decrease) in shares outstanding........... (868,917) 2,326,336
============ ============
Prime A Shares:
Sold.................................................... 1,207 17,410
Issued to shareholders in reinvestment of dividends..... 271 179
Repurchased............................................. (4,173) (4,177)
------------ ------------
Net increase (decrease) in shares outstanding........... (2,695) 13,412
============ ============
Prime B Shares:
Sold.................................................... 1,933 31,529
Issued to shareholders in reinvestment of dividends..... 724 494
Repurchased............................................. (1,539) (2,695)
------------ ------------
Net increase (decrease) in shares outstanding........... 1,118 29,328
============ ============
</TABLE>
<TABLE>
EQUITY INCOME FUND GROWTH AND INCOME FUND
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold.................................................... $ 9,172,102 $ 26,175,419 $ 20,365,129 $ 39,277,116
Issued to shareholders in reinvestment of dividends..... 31,895,708 21,026,250 13,491,438 14,154,903
Repurchased............................................. (30,959,272) (41,266,164) (39,191,326) (52,667,374)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ 10,108,538 $ 5,935,505 $ (5,334,759) $ 764,645
============= ============== ============= =============
Retail B Shares:
Sold.................................................... $ 925,481 $ 3,330,934 $ 4,688,857 $ 10,392,695
Issued to shareholders in reinvestment of dividends..... 528,379 18,467 3,490,594 3,188,793
Repurchased............................................. (414,347) (138,311) (6,986,456) (8,355,288)
------------- -------------- ------------- -------------
Net increase in shares outstanding...................... $ 1,039,513 $ 3,211,090 $ 1,192,995 $ 5,226,200
============= ============== ============= =============
Trust Shares:
Sold.................................................... $ 6,537,108 $ 11,824,496 $ 19,418,795 $ 82,183,977
Issued to shareholders in reinvestment of dividends..... 11,474,118 7,623,489 17,409,985 16,323,263
Repurchased............................................. (14,466,338) (25,937,232) (53,836,532) (63,026,313)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ 3,544,888 $ (6,489,247) $ (17,007,752) $ 35,480,927
============= ============== ============= =============
Prime A Shares:
Sold.................................................... N/A N/A $ -- $ 155,747
Issued to shareholders in reinvestment of dividends..... N/A N/A 6,309 5,154
Repurchased............................................. N/A N/A (2,775) (7,970)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... N/A N/A $ 3,534 $ 152,931
============= ============== ============= =============
Prime B Shares:
Sold.................................................... N/A N/A $ 7,000 $ 138,816
Issued to shareholders in reinvestment of dividends..... N/A N/A 5,964 307
Repurchased............................................. N/A N/A (17,147) (8,311)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... N/A N/A $ (4,183) $ 130,812
============= ============== ============= =============
SHARE ACTIVITY
Retail A Shares:
Sold.................................................... 537,247 1,338,664 1,314,582 2,434,191
Issued to shareholders in reinvestment of dividends..... 1,938,605 1,117,084 907,922 943,079
Repurchased............................................. (1,837,304) (2,099,686) (2,522,520) (3,254,588)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... 638,548 356,062 (300,016) 122,682
============= ============== ============= =============
Retail B Shares:
Sold.................................................... 54,268 173,216 304,312 640,709
Issued to shareholders in reinvestment of dividends..... 32,595 1,006 236,255 213,284
Repurchased............................................. (25,049) (7,328) (455,206) (519,908)
------------- -------------- ------------- -------------
Net increase in shares outstanding...................... 61,814 166,894 85,361 334,085
============= ============== ============= =============
Trust Shares:
Sold.................................................... 392,650 605,220 1,248,308 5,028,472
Issued to shareholders in reinvestment of dividends..... 695,618 416,735 1,166,622 1,023,222
Repurchased............................................. (867,572) (1,334,883) (3,479,689) (3,807,714)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... 220,696 (312,928) (1,064,759) 2,243,980
============= ============== ============= =============
Prime A Shares:
Sold.................................................... N/A N/A -- 9,535
Issued to shareholders in reinvestment of dividends..... N/A N/A 424 341
Repurchased............................................. N/A N/A (180) (484)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... N/A N/A 244 9,392
============= ============== ============= =============
Prime B Shares:
Sold.................................................... N/A N/A 489 8,603
Issued to shareholders in reinvestment of dividends..... N/A N/A 401 20
Repurchased............................................. N/A N/A (1,069) (516)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... N/A N/A (179) 8,107
============= ============== ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
54-55
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
STRATEGIC EQUITY FUND
-----------------------------------
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- -------------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold.................................................... $ 879,128 $ 5,532,236
Issued to shareholders in reinvestment of dividends..... 933,357 26,010
Repurchased............................................. (2,190,043) (1,186,925)
----------- -----------
Net increase (decrease) in shares outstanding........... $ (377,558) $ 4,371,321
=========== ===========
Retail B Shares:
Sold.................................................... $ 357,589 $ 1,083,391
Issued to shareholders in reinvestment of dividends..... 170,897 641
Repurchased............................................. (392,642) (240,922)
----------- -----------
Net increase in shares outstanding...................... $ 135,844 $ 843,110
=========== ===========
Trust Shares:
Sold.................................................... $ 3,996,624 $ 6,208,177
Issued to shareholders in reinvestment of dividends..... 9,050,807 602,374
Repurchased............................................. (669,524) (499,231)
----------- -----------
Net increase (decrease) in shares outstanding........... $12,377,907 $ 6,311,320
=========== ===========
Prime A 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
=========== ===========
Prime B 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.................................................... 97,140 521,862
Issued to shareholders in reinvestment of dividends..... 110,759 2,248
Repurchased............................................. (238,951) (112,927)
----------- -----------
Net increase (decrease) in shares outstanding........... (31,052) 411,183
=========== ===========
Retail B Shares:
Sold.................................................... 39,526 100,197
Issued to shareholders in reinvestment of dividends..... 20,488 66
Repurchased............................................. (42,946) (23,924)
----------- -----------
Net increase in shares outstanding...................... 17,068 76,339
=========== ===========
Trust Shares:
Sold.................................................... 416,080 621,301
Issued to shareholders in reinvestment of dividends..... 1,076,056 56,785
Repurchased............................................. (76,560) (45,271)
----------- -----------
Net increase (decrease) in shares outstanding........... 1,415,576 632,815
=========== ===========
Prime A 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
=========== ===========
Prime B 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>
<TABLE>
EQUITY VALUE FUND EQUITY GROWTH FUND
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ----------- ---------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold.................................................... $ 12,684,676 $ 45,762,951 $ 102,911,367 $ 114,977,854
Issued to shareholders in reinvestment of dividends..... 33,550,464 8,453,667 25,985,381 24,158,813
Repurchased............................................. (41,200,499) (56,515,286) (74,644,876) (72,719,333)
------------ ------------ ------------- -------------
Net increase (decrease) in shares outstanding........... $ 5,034,641 $ (2,298,668) $ 54,251,872 $ 66,417,334
============ ============ ============= =============
Retail B Shares:
Sold.................................................... $ 3,186,774 $ 8,314,738 $ 33,640,831 $ 34,935,971
Issued to shareholders in reinvestment of dividends..... 4,174,509 854,307 4,504,837 2,738,197
Repurchased............................................. (3,894,162) (3,409,825) (7,321,955) (8,517,659)
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... $ 3,467,121 $ 5,759,220 $ 30,823,713 $ 29,156,509
============ ============ ============= =============
Trust Shares:
Sold.................................................... $ 21,400,997 $ 69,099,037 $ 130,192,266 $ 174,347,614
Issued to shareholders in reinvestment of dividends..... 31,632,032 7,684,111 52,108,813 53,167,673
Repurchased............................................. (59,625,781) (77,396,395) (123,799,362) (162,227,177)
------------ ------------ ------------- -------------
Net increase (decrease) in shares outstanding........... $ (6,592,752) $ (613,247) $ 58,501,717 $ 65,288,110
============ ============ ============= =============
Prime A Shares:
Sold.................................................... N/A N/A $ 2,362 $ 99,300
Issued to shareholders in reinvestment of dividends..... N/A N/A 6,282 1,711
Repurchased............................................. N/A N/A (747) (1,323)
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... N/A N/A $ 7,897 $ 99,688
============ ============ ============= =============
Prime B Shares:
Sold.................................................... N/A N/A $ 141,600 $ 233,056
Issued to shareholders in reinvestment of dividends..... N/A N/A 12,809 528
Repurchased............................................. N/A N/A (6,656) --
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... N/A N/A $ 147,753 $ 233,584
============ ============ ============= =============
SHARE ACTIVITY
Retail A Shares:
Sold.................................................... 749,590 2,433,370 3,336,382 4,204,098
Issued to shareholders in reinvestment of dividends..... 2,131,292 484,075 914,140 976,169
Repurchased............................................. (2,445,128) (3,013,975) (2,408,876) (2,662,892)
------------ ------------ ------------- -------------
Net increase (decrease) in shares outstanding........... 435,754 (96,530) 1,841,646 2,517,375
============ ============ ============= =============
Retail B Shares:
Sold.................................................... 191,354 441,934 1,119,137 1,291,210
Issued to shareholders in reinvestment of dividends..... 268,982 49,076 162,849 112,861
Repurchased............................................. (236,382) (182,489) (244,559) (315,473)
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... 223,954 308,521 1,037,427 1,088,598
============ ============ ============= =============
Trust Shares:
Sold.................................................... 1,264,230 3,627,023 4,215,669 6,246,300
Issued to shareholders in reinvestment of dividends..... 2,000,279 431,433 1,820,461 2,140,810
Repurchased............................................. (3,539,396) (4,154,201) (4,021,781) (5,924,861)
------------ ------------ ------------- -------------
Net increase (decrease) in shares outstanding........... (274,887) (95,745) 2,014,349 2,462,249
============ ============ ============= =============
Prime A Shares:
Sold.................................................... N/A N/A 80 3,655
Issued to shareholders in reinvestment of dividends..... N/A N/A 221 73
Repurchased............................................. N/A N/A (24) (46)
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... N/A N/A 277 3,682
============ ============ ============= =============
Prime B Shares:
Sold.................................................... N/A N/A 4,826 8,512
Issued to shareholders in reinvestment of dividends..... N/A N/A 453 21
Repurchased............................................. N/A N/A (220) --
------------ ------------ ------------- -------------
Net increase in shares outstanding...................... N/A N/A 5,059 8,533
============ ============ ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
56-57
<PAGE>
GALAXY EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS --
CAPITAL STOCK ACTIVITY (CONTINUED)
<TABLE>
INTERNATIONAL EQUITY FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- -------------
<S> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold .................................................. $ 155,714,145 $ 63,996,029
Issued to shareholders in reinvestment of dividends..... 5,261,364 2,371,667
Repurchased............................................. (135,702,262) (60,811,773)
-------------- -------------
Net increase (decrease) in shares outstanding........... $ 25,273,247 $ 5,555,923
============== =============
Retail B Shares:
Sold .................................................. $ 15,527,082 $ 52,822,549
Issued to shareholders in reinvestment of dividends..... 117,762 1,254
Repurchased............................................. (10,768,252) (51,002,543)
-------------- -------------
Net increase (decrease) in shares outstanding........... $ 4,876,592 $ 1,821,260
============== =============
Trust Shares:
Sold .................................................. $ 317,654,394 $ 339,364,891
Issued to shareholders in reinvestment of dividends..... 19,308,786 8,378,059
Repurchased............................................. (220,304,864) (284,220,019)
-------------- -------------
Net increase (decrease) in shares outstanding........... $ 116,658,316 $ 63,522,931
============== =============
Prime A Shares:
Sold .................................................. $ 2,364 $ 14,519
Issued to shareholders in reinvestment of dividends..... 768 566
Repurchased............................................. -- (4,960)
-------------- -------------
Net increase (decrease) in shares outstanding........... $ 3,132 $ 10,125
============== =============
Prime B Shares:
Sold .................................................. $ 16,240 $ 418,549
Issued to shareholders in reinvestment of dividends..... 4,796 1,217
Repurchased............................................. (8,410) (5,006)
-------------- -------------
Net increase (decrease) in shares outstanding........... $ 12,626 $ 414,760
============== =============
SHARE ACTIVITY
Retail A Shares:
Sold .................................................. 6,692,022 3,393,407
Issued to shareholders in reinvestment of dividends..... 241,653 142,822
Repurchased............................................. (5,771,949) (3,226,391)
-------------- -------------
Net increase (decrease) in shares outstanding........... 1,161,726 309,838
============== =============
Retail B Shares:
Sold .................................................. 696,259 2,792,826
Issued to shareholders in reinvestment of dividends..... 5,380 73
Repurchased............................................. (494,934) (2,687,674)
-------------- -------------
Net increase (decrease) in shares outstanding........... 206,705 105,225
============== =============
Trust Shares:
Sold .................................................. 13,602,016 17,587,176
Issued to shareholders in reinvestment of dividends..... 872,560 484,004
Repurchased............................................. (9,397,110) (14,718,280)
-------------- -------------
Net increase (decrease) in shares outstanding........... 5,077,466 3,352,900
============== =============
Prime A Shares:
Sold .................................................. 108 815
Issued to shareholders in reinvestment of dividends..... 35 33
Repurchased............................................. -- (264)
-------------- -------------
Net increase (decrease) in shares outstanding........... 143 584
============== =============
Prime B Shares:
Sold .................................................. 693 22,188
Issued to shareholders in reinvestment of dividends..... 221 71
Repurchased............................................. (345) (273)
-------------- -------------
Net increase (decrease) in shares outstanding........... 569 21,986
============== =============
</TABLE>
<TABLE>
SMALL CAP VALUE FUND SMALL COMPANY EQUITY FUND
------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
Retail A Shares:
Sold .................................................. $ 9,349,817 $ 19,008,974 $ 266,914,607 $ 325,325,171
Issued to shareholders in reinvestment of dividends..... 8,237,478 8,277,731 -- --
Repurchased............................................. (15,341,004) (30,861,975) (270,982,838) (347,667,128)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ 2,246,291 $ (3,575,270) $ (4,068,231) $ (22,341,957)
============= ============== ============= =============
Retail B Shares:
Sold .................................................. $ 790,844 $ 1,771,843 $ 16,311,448 $ 34,581,558
Issued to shareholders in reinvestment of dividends..... 194,023 6,178 -- --
Repurchased............................................. (226,396) (87,689) (15,118,182) (36,619,640)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ 758,471 $ 1,690,332 $ 1,193,266 $ (2,038,082)
============= ============== ============= =============
Trust Shares:
Sold .................................................. $ 42,829,150 $ 109,425,380 $ 176,834,251 $ 197,458,863
Issued to shareholders in reinvestment of dividends..... 21,284,841 15,839,896 -- --
Repurchased............................................. (47,158,246) (63,150,650) (117,300,436) (219,587,233)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ 16,955,745 $ 62,114,626 $ 59,533,815 $ (22,128,370)
============= ============== ============= =============
Prime A Shares:
Sold .................................................. $ 2,363 $ 208,140 N/A N/A
Issued to shareholders in reinvestment of dividends..... 16,045 1,965 N/A N/A
Repurchased............................................. (22,568) (31,567) N/A N/A
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ (4,160) $ 178,538 N/A N/A
============= ============== ============= =============
Prime B Shares:
Sold .................................................. $ 4,877 $ 207,595 N/A N/A
Issued to shareholders in reinvestment of dividends..... 19,815 7,596 N/A N/A
Repurchased............................................. (66,190) (17,310) N/A N/A
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... $ (41,498) $ 197,881 N/A N/A
============= ============== ============= =============
SHARE ACTIVITY
Retail A Shares:
Sold .................................................. 703,773 1,438,795 11,399,343 22,169,167
Issued to shareholders in reinvestment of dividends..... 666,918 648,595 -- --
Repurchased............................................. (1,166,748) (2,345,235) (11,602,217) (23,587,237)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... 203,943 (257,845) (202,874) (1,418,070)
============= ============== ============= =============
Retail B Shares:
Sold .................................................. 59,863 132,583 827,498 2,388,029
Issued to shareholders in reinvestment of dividends..... 15,748 487 -- --
Repurchased............................................. (17,181) (6,809) (796,281) (2,528,697)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... 58,430 126,261 31,217 (140,668)
============= ============== ============= =============
Trust Shares:
Sold .................................................. 3,223,330 8,188,452 7,139,977 13,075,068
Issued to shareholders in reinvestment of dividends..... 1,709,488 1,235,136 -- --
Repurchased............................................. (3,539,921) (4,764,801) (4,843,388) (14,555,648)
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... 1,392,897 4,658,787 2,296,589 (1,480,580)
============= ============== ============= =============
Prime A Shares:
Sold .................................................. 186 15,569 N/A N/A
Issued to shareholders in reinvestment of dividends..... 1,293 153 N/A N/A
Repurchased............................................. (1,709) (2,335) N/A N/A
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... (230) 13,387 N/A N/A
============= ============== ============= =============
Prime B Shares:
Sold .................................................. 365 15,302 N/A N/A
Issued to shareholders in reinvestment of dividends..... 1,605 594 N/A N/A
Repurchased............................................. (5,118) (1,298) N/A N/A
------------- -------------- ------------- -------------
Net increase (decrease) in shares outstanding........... (3,148) 14,598 N/A N/A
============= ============== ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
58-59
<PAGE>
ASSET ALLOCATION FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------- ----------------------------------------
NET
NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET FROM INCREASE
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
04/30/00 (unaudited) $17.74 $0.19 $1.14 $1.33 $(0.19) $(0.31) $(0.50) $0.83
10/31/99 16.95 0.37 1.21 1.58 (0.36) (0.43) (0.79) 0.79
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
RETAIL B
04/30/00 (unaudited) 17.70 0.12 1.14 1.26 (0.13) (0.31) (0.44) 0.82
10/31/99 16.92 0.25 1.21 1.46 (0.25) (0.43) (0.68) 0.78
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
04/30/00 (unaudited) 17.73 0.21 1.14 1.35 (0.21) (0.31) (0.52) 0.83
10/31/99 16.96 0.40 1.20 1.60 (0.40) (0.43) (0.83) 0.77
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
PRIME A
04/30/00 (unaudited) 17.73 0.22 1.12 1.34 (0.20) (0.31) (0.51) 0.83
10/31/99(2) 16.95 0.44 1.17 1.61 (0.40) (0.43) (0.83) 0.78
PRIME B
04/30/00 (unaudited) 17.71 0.13 1.15 1.28 (0.14) (0.31) (0.45) 0.83
10/31/99(2) 16.95 0.29 1.19 1.48 (0.29) (0.43) (0.72) 0.76
</TABLE>
<TABLE>
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> <C>
RETAIL A
04/30/00 (unaudited) $18.57 7.66%** $384,476 2.06%* 1.29%* 1.29%* 35%**
10/31/99 17.74 9.53% 389,077 2.11% 1.32% 1.32% 135%
10/31/98 16.95 13.85% 323,498 2.43% 1.33% 1.33% 108%
10/31/97 16.46 20.23% 177,239 2.66% 1.37% 1.37% 58%
10/31/96 14.52 16.92% 116,852 2.29% 1.42% 1.42% 48%
10/31/95 12.82 23.42% 76,368 2.52% 1.48% 1.50% 41%
RETAIL B
04/30/00 (unaudited) 18.52 7.25%** 101,099 1.38%* 1.97%* 1.97%* 35%**
10/31/99 17.70 8.76% 91,199 1.43% 2.00% 2.00% 135%
10/31/98 16.92 13.14% 57,876 1.77% 1.99% 1.99% 108%
10/31/97 16.43 19.34% 30,688 1.95% 2.10% 2.19% 58%
10/31/96(1) 14.51 7.71%** 3,557 1.73%* 1.95%* 2.15%* 48%
TRUST
04/30/00 (unaudited) 18.56 7.77%** 266,340 2.26%* 1.09%* 1.09%* 35%**
10/31/99 17.73 9.63% 269,851 2.31% 1.12% 1.12% 135%
10/31/98 16.96 14.05% 218,666 2.63% 1.13% 1.13% 108%
10/31/97 16.47 20.42% 171,741 2.82% 1.21% 1.22% 58%
10/31/96 14.53 17.19% 123,603 2.52% 1.19% 1.21% 48%
10/31/95 12.83 23.68% 76,771 2.74% 1.26% 1.30% 41%
PRIME A
04/30/00 (unaudited) 18.56 7.74%** 199 2.21%* 1.14%* 1.31%* 35%**
10/31/99(2) 17.73 9.72% 238 2.27% 1.16% 1.29% 135%
PRIME B
04/30/00 (unaudited) 18.54 7.35%** 564 1.46%* 1.89%* 2.10%* 35%**
10/31/99(2) 17.71 8.91% 519 1.53% 1.90% 2.08% 135%
-------------------------------------------------------------------------------
<FN>
* Annualized.
** Not Annualized.
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(2) The Fund began issuing Prime A and Prime B Shares on November 1, 1998.
(A) Calculation does not include the effect of any sales charge for Retail A Shares, Retail B Shares, Prime A Shares and Prime 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996
and 1995 were $0.19, $0.37, $0.38, $0.40, $0.30 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 six months ended
April 30, 2000 (unaudited), the years ended October 31, 1999, 1998 and 1997 and the period ended October 31, 1996 were
$0.12, $0.25, $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, 2000 (unaudited) and the
years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $0.21, $0.40, $0.42, $0.43, $0.33 and $0.32, respectively. Net
investment income per share before reimbursement/waiver of fees by the Investment Advisor and/or Administrator for Prime A
Shares for the six months ended April 30, 2000 (unaudited) and the year ended October 31, 1999 were $0.20 and $0.41,
respectively. Net investment income per share before reimbursement/waiver of fees by the Investment Advisor and/or
Administrator for Prime B Shares for the six months ended April 30, 2000 (unaudited) and the year ended October 31, 1999
were $0.11 and $0.26, respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
60-61
<PAGE>
EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- ---------------------------------------
NET
NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET FROM INCREASE (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
04/30/00 (unaudited) $19.50 $0.09 $0.65 $0.74 $(0.09) $(2.95) $(3.04) $(2.30)
10/31/99 19.67 0.19 1.69 1.88 (0.20) (1.85) (2.05) (0.17)
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
RETAIL B
04/30/00 (unaudited) 19.25 0.03 0.64 0.67 (0.04) (2.95) (2.99) (2.32)
10/31/99(1) 19.48 0.11 1.62 1.73 (0.11) (1.85) (1.96) (0.23)
TRUST
04/30/00 (unaudited) 19.52 0.12 0.65 0.77 (0.12) (2.95) (3.07) (2.30)
10/31/99 19.69 0.28 1.69 1.97 (0.29) (1.85) (2.14) (0.17)
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
</TABLE>
<TABLE>
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> <C>
RETAIL A
04/30/00 (unaudited) $17.20 4.50%** $198,857 1.03%* 1.32%* 1.32%* 34%**
10/31/99 19.50 10.14% 213,041 0.97% 1.33% 1.33% 38%
10/31/98 19.67 15.23% 207,850 1.30% 1.34% 1.34% 46%
10/31/97 18.82 23.28% 169,276 1.70% 1.39% 1.41% 37%
10/31/96 16.91 19.01% 126,952 1.86% 1.40% 1.40% 45%
10/31/95 14.98 22.23% 81,802 2.08% 1.49% 1.51% 21%
RETAIL B
04/30/00 (unaudited) 16.93 4.18%** 3,873 0.35%* 2.00%* 2.09%* 34%**
10/31/99(1) 19.25 9.38% 3,213 0.33% 1.97% 2.23% 38%
TRUST
04/30/00 (unaudited) 17.22 4.75%** 109,820 1.44%* 0.91%* 0.91%* 34%**
10/31/99 19.52 10.60% 120,179 1.39% 0.91% 0.91% 38%
10/31/98 19.69 15.67% 127,367 1.72% 0.92% 0.92% 46%
10/31/97 18.84 23.80% 119,505 2.14% 0.95% 0.97% 37%
10/31/96 16.93 19.65% 106,094 2.32% 0.94% 0.94% 45%
10/31/95 14.99 22.81% 87,819 2.60% 0.98% 1.00% 21%
-------------------------------------------------------------------------------
<FN>
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on November 1, 1998.
(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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996
and 1995 were $0.09, $0.19, $0.25, $0.30, $0.30 and $0.28, 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, 2000 (unaudited) and the year ended October 31, 1999 were $0.02 and $0.08, 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $0.12, $0.28, $0.34,
$0.38, $0.37 and $0.36, respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
62-63
<PAGE>
GROWTH AND INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- ---------------------------------------
NET
NET NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM INCREASE (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
04/30/00 (unaudited) $15.98 $ 0.03 $1.19 $1.22 $(0.04) $(0.91) $(0.95) $ 0.27
10/31/99 14.87 0.08(5) 2.02 2.10 (0.08) (0.91) (0.99) 1.11
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
RETAIL B
04/30/00 (unaudited) 15.90 (0.03) 1.19 1.16 -- (0.91) (0.91) 0.25
10/31/99 14.83 (0.04)(5) 2.02 1.98 -- (0.91) (0.91) 1.07
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
04/30/00 (unaudited) 16.02 0.04 1.20 1.24 (0.05) (0.91) (0.96) 0.28
10/31/99 14.90 0.13(5) 2.02 2.15 (0.12) (0.91) (1.03) 1.12
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
PRIME A
04/30/00 (unaudited) 16.00 0.05 1.19 1.24 (0.05) (0.91) (0.96) 0.28
10/31/99(3) 14.88 0.11(5) 2.03 2.14 (0.11) (0.91) (1.02) 1.12
PRIME B
04/30/00 (unaudited) 15.97 (0.02) 1.19 1.17 -- (0.91) (0.91) 0.26
10/31/99(3) 14.88 (0.01)(5) 2.03 2.02 (0.02) (0.91) (0.93) 1.09
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME (LOSS) 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> <C>
RETAIL A
04/30/00 (unaudited) $16.25 8.18%** $231,187 0.42%* 1.28%* 1.39%* 7%**
10/31/99 15.98 14.56% 232,110 0.53% 1.28% 1.38% 20%
10/31/98 14.87 9.93% 214,110 0.75% 1.28% 1.35% 38%
10/31/97 16.24 30.10% 141,884 1.18% 1.27% 1.45% 93%
10/31/96(1) 13.78 20.25% 77,776 1.65% 1.34% 1.45% 59%
10/31/95 12.35 18.52% 51,078 2.10% 1.32% 1.77% 51%
RETAIL B
04/30/00 (unaudited) 16.15 7.82%** 64,708 (0.35)%* 2.05%* 2.05%* 7%**
10/31/99 15.90 13.72% 62,366 (0.22)% 2.03% 2.04% 20%
10/31/98 14.83 9.09% 53,216 0.01% 2.02% 2.02% 38%
10/31/97 16.23 29.11% 35,178 0.31% 2.05% 2.28% 93%
10/31/96(2) 13.77 6.83%** 4,562 0.79%* 1.96%* 2.11%* 59%
TRUST
04/30/00 (unaudited) 16.30 8.34%** 297,100 0.64%* 1.06%* 1.06%* 7%**
10/31/99 16.02 14.85% 309,106 0.76% 1.05% 1.05% 20%
10/31/98 14.90 10.10% 254,060 1.00% 1.03% 1.03% 38%
10/31/97 16.28 30.43% 246,654 1.44% 1.03% 1.06% 93%
10/31/96(1) 13.80 20.77% 186,708 2.01% 1.02% 1.03% 59%
10/31/95 12.35 18.80% 189,011 2.42% 1.07% 1.27% 51%
PRIME A
04/30/00 (unaudited) 16.28 8.29%** 157 0.55%* 1.15%* 1.25%* 7%**
10/31/99(3) 16.00 14.81% 150 0.66% 1.15% 1.30% 20%
PRIME B
04/30/00 (unaudited) 16.23 7.85%** 129 (0.20)%* 1.90%* 2.09%* 7%**
10/31/99(3) 15.97 13.98% 129 (0.09)% 1.90% 2.17% 20%
-------------------------------------------------------------------------------
<FN>
* 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 Prime A and Prime B Shares on November 1, 1998.
(4) Net investment income per share is less than $0.005.
(5) 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, Retail B Shares, Prime A Shares and Prime 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996
and 1995 were $0.02, $0.07, $0.10, $0.18, $0.19 and $0.22, 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, 2000, (unaudited), the years ended October 31, 1999, 1998 and 1997 and the period ended October 31, 1996 were
$(0.03), $(0.04), $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, 2000 (unaudited) and the
years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $0.04, $0.13, $0.15, $0.21, $0.27 and $0.25, respectively. Net
investment income per share before reimbursement/waiver of fees by the Investment Advisor and/or Administrator for Prime A
Shares for the six months ended April 30, 2000 (unaudited) and the year ended October 31, 1999 were $0.04 and $0.09,
respectively. Net investment (loss) per share before reimbursement/waiver of fees by the Investment Advisor and/or
Administrator for Prime B Shares for the six months ended April 30, 2000 (unaudited) and the year ended October 31, 1999
were $(0.04) and $(0.05), respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
64-65
<PAGE>
STRATEGIC EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- ---------------------------------------
NET
NET NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM INCREASE (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
04/30/00 (unaudited) $ 9.89 $ 0.02 $ 1.03 $ 1.05 $(0.02) $(1.18) $(1.20) $(0.15)
10/31/99 9.62 0.04(3) 0.27 0.31 (0.03) (0.01) (0.04) 0.27
10/31/98(1) 10.00 --(2) (0.38) (0.38) -- -- -- (0.38)
RETAIL B
04/30/00 (unaudited) 9.84 (0.01) 1.03 1.02 --(4) (1.18) (1.18) (0.16)
10/31/99 9.61 (0.02)(3) 0.26 0.24 -- (0.01) (0.01) 0.23
10/31/98(1) 10.00 (0.02) (0.37) (0.39) -- -- -- (0.39)
TRUST
04/30/00 (unaudited) 9.90 0.04 1.03 1.07 (0.04) (1.18) (1.22) (0.15)
10/31/99 9.63 0.09(3) 0.27 0.36 (0.08) (0.01) (0.09) 0.27
10/31/98(1) 10.00 0.01 (0.37) (0.36) (0.01) -- (0.01) (0.37)
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME (LOSS) 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> <C>
RETAIL A
04/30/00 (unaudited) $9.74 12.62%** $ 7,804 0.51%* 1.20%* 1.60%* 43%**
10/31/99 9.89 3.25% 8,229 0.41% 1.19% 1.63% 79%
10/31/98(1) 9.62 (3.75)%** 4,051 0.06%* 1.40%* 2.41%* 30%**
RETAIL B
04/30/00 (unaudited) 9.68 12.32%** 1,491 (0.18)%* 1.89%* 2.35%* 43%**
10/31/99 9.84 2.50% 1,348 (0.24)% 1.84% 2.40% 79%
10/31/98(1) 9.61 (4.76)%** 583 (0.55)%* 2.01%* 3.05%* 30%**
TRUST
04/30/00 (unaudited) 9.75 12.84%** 83,839 0.93%* 0.78%* 0.98%* 43%**
10/31/99 9.90 3.64% 71,063 0.80% 0.80% 1.00% 79%
10/31/98(1) 9.63 (3.62)%** 63,061 0.19%* 1.27%* 1.47%* 30%**
-------------------------------------------------------------------------------
<FN>
* Annualized
** Not Annualized
(1) The Fund commenced operations on March 4, 1998.
(2) Net investment income per share is less than $0.005.
(3) The selected per share data was calculated using the weighted average shares outstanding method for the year.
(4) Dividends from net investment income were 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, 2000 (unaudited), the year ended October 31, 1999 and the period ended
October 31, 1998 were $0.01, $0.00 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 the six months ended
April 30, 2000 (unaudited), the year ended October 31, 1999 and the period ended October 31, 1998 were $(0.04), $(0.08) 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, 2000 (unaudited), the year ended October 31, 1999 and the
period ended October 31, 1998 were $0.03, $0.06 and $0.00, respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
66-67
<PAGE>
EQUITY VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- ---------------------------------------
NET
NET NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM INCREASE (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
04/30/00 (unaudited) $18.28 $ --(2) $1.45 $1.45 $(0.01) $(2.45) $(2.46) $(1.01)
10/31/99 16.50 (0.03) 2.42 2.39 -- (0.61) (0.61) 1.78
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
RETAIL B
04/30/00 (unaudited) 18.08 (0.06) 1.44 1.38 -- (2.45) (2.45) (1.07)
10/31/99 16.44 (0.15) 2.40 2.25 -- (0.61) (0.61) 1.64
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
04/30/00 (unaudited) 18.35 0.02 1.46 1.48 (0.02) (2.45) (2.47) (0.99)
10/31/99 16.51 0.03 2.42 2.45 -- (0.61) (0.61) 1.84
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
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME (LOSS) 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> <C>
RETAIL A
04/30/00 (unaudited) $17.27 9.28%** $251,684 (0.05)%* 1.35%* 1.35%* 26%**
10/31/99 18.28 14.63% 258,332 (0.16)% 1.37% 1.37% 75%
10/31/98 16.50 9.88% 234,730 0.15% 1.37% 1.37% 82%
10/31/97 18.21 29.48% 182,641 0.63% 1.38% 1.38% 111%
10/31/96 15.96 21.49% 131,998 1.00% 1.45% 1.45% 116%
10/31/95 14.33 20.81% 96,555 1.62% 1.49% 1.50% 76%
RETAIL B
04/30/00 (unaudited) 17.01 8.92%** 32,955 (0.79)%* 2.09%* 2.13%* 26%**
10/31/99 18.08 13.81% 30,988 (0.87)% 2.08% 2.08% 75%
10/31/98 16.44 9.07% 23,103 (0.54)% 2.06% 2.06% 82%
10/31/97 18.24 28.60% 14,958 (0.13)% 2.07% 2.38% 111%
10/31/96(1) 15.99 8.80%** 1,916 0.43%* 1.94%* 2.24%* 116%
TRUST
04/30/00 (unaudited) 17.36 9.42%** 261,169 0.27%* 1.03%* 1.03%* 26%**
10/31/99 18.35 15.04% 281,064 0.19% 1.02% 1.03% 75%
10/31/98 16.51 10.27% 254,432 0.49% 1.03% 1.03% 82%
10/31/97 18.21 29.87% 241,532 0.98% 1.04% 1.04% 111%
10/31/96 15.96 22.05% 194,827 1.42% 1.03% 1.03% 116%
10/31/95 14.33 21.31% 165,330 2.10% 1.02% 1.02% 76%
-------------------------------------------------------------------------------
<FN>
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B Shares on March 4, 1996.
(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 (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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997,
1996 and 1995 were $0.00(2), $(0.03) $0.03, $0.11, $0.14 and $0.22, 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, 2000, (unaudited), the years ended October 31, 1999, 1998 and 1997 and the period ended October 31, 1996 were
$(0.06), $(0.15), $(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, 2000 (unaudited) and
the years ended October 31, 1999, 1998, 1997, 1996, and 1995 were $0.02, $0.03, $0.08, $0.17, $0.21 and $0.28, respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
68-69
<PAGE>
EQUITY GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
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
04/30/00 (unaudited) $28.99 $(0.04) $5.65 $5.61 $ -- $ -- $(1.72) $(1.72)
10/31/99 24.47 (0.06) 6.48 6.42 -- -- (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)
RETAIL B
04/30/00 (unaudited) 28.27 (0.13) 5.47 5.34 -- -- (1.72) (1.72)
10/31/99 24.07 (0.20) 6.30 6.10 -- -- (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
04/30/00 (unaudited) 29.15 0.01 5.69 5.70 (0.01) -- (1.72) (1.73)
10/31/99 24.52 0.03 6.50 6.53 -- -- (1.90) (1.90)
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)
PRIME A
04/30/00 (unaudited) 28.95 (0.01) 5.64 5.63 -- -- (1.72) (1.72)
10/31/99(4) 24.49 (0.01) 6.37 6.36 -- -- (1.90) (1.90)
PRIME B
04/30/00 (unaudited) 28.84 (0.11) 5.59 5.48 -- -- (1.72) (1.72)
10/31/99(4) 24.49 (0.10) 6.35 6.25 -- -- (1.90) (1.90)
</TABLE>
<TABLE>
NET INCREASE NET ASSETS,
(DECREASE) IN NET NET ASSET VALUE, END OF PERIOD
ASSET VALUE END OF PERIOD TOTAL RETURN(A) (IN 000'S)
-------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C>
RETAIL A
04/30/00 (unaudited) $ 3.89 $32.88 20.27%** $ 563,770
10/31/99 4.52 28.99 27.55% 443,639
10/31/98 (0.67) 24.47 14.73% 312,951
10/31/97 4.77 25.14 31.61% 226,330
10/31/96 3.08 20.37 20.51% 160,800
10/31/95 3.11 17.29 24.54% 98,911
RETAIL B
04/30/00 (unaudited) 3.62 31.89 19.81%** 113,780
10/31/99 4.20 28.27 26.63% 71,525
10/31/98 (0.84) 24.07 13.98% 34,693
10/31/97 4.65 24.91 30.78% 20,363
10/31/96(1) 1.49 20.26 7.95%** 3,995
TRUST
04/30/00 (unaudited) 3.97 33.12 20.48%** 1,250,147
10/31/99 4.63 29.15 28.07% 1,041,378
10/31/98 (0.65) 24.52 15.17% 815,756
10/31/97 4.78 25.17 32.16% 745,537
10/31/96 3.09 20.39 21.03% 562,419
10/31/95 3.11 17.30 25.08% 420,016
PRIME A
04/30/00 (unaudited) 3.91 32.86 20.37%** 130
10/31/99(4) 4.46 28.95 27.30% 107
PRIME B
04/30/00 (unaudited) 3.76 32.60 19.91%** 443
10/31/99(4) 4.35 28.84 26.79% 246
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME EXPENSES EXPENSES
INCLUDING INCLUDING EXCLUDING
REIMBURSEMENT/ REIMBURSEMENT/ REIMBURSEMENT/ PORTFOLIO
WAIVER WAIVER WAIVER TURNOVER RATE
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
RETAIL A
04/30/00 (unaudited) (0.27)%* 1.28%* 1.28%* 22%**
10/31/99 (0.25)% 1.34% 1.34% 53%
10/31/98 0.02% 1.34% 1.34% 60%
10/31/97 0.30% 1.37% 1.37% 66%
10/31/96 0.50% 1.40% 1.40% 36%
10/31/95 0.85% 1.45% 1.47% 14%
RETAIL B
04/30/00 (unaudited) (1.06)%* 2.07%* 2.07%* 22%**
10/31/99 (0.96)% 2.05% 2.08% 53%
10/31/98 (0.68)% 2.04% 2.04% 60%
10/31/97 (0.40)% 2.07% 2.30% 66%
10/31/96(1) (0.16)%* 1.92%* 2.29%* 36%
TRUST
04/30/00 (unaudited) 0.10%* 0.91%* 0.91%* 22%**
10/31/99 0.15% 0.94% 0.94% 53%
10/31/98 0.40% 0.96% 0.96% 60%
10/31/97 0.72% 0.95% 0.95% 66%
10/31/96 0.92% 0.98% 0.98% 36%
10/31/95 1.31% 1.00% 1.00% 14%
PRIME A
04/30/00 (unaudited) (0.10)%* 1.11%* 1.21%* 22%**
10/31/99(4) (0.05)% 1.14% 1.28% 53%
PRIME B
04/30/00 (unaudited) (0.85)%* 1.86%* 2.00%* 22%**
10/31/99(4) (0.78)% 1.87% 2.19% 53%
-------------------------------------------------------------------------------
<FN>
* 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 Prime A and Prime B Shares on November 1, 1998.
(A) Calculation does not include the effect of any sales charge for Retail A Shares, Retail B Shares, Prime A Shares and Prime 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997,
1996 and 1995 were $(0.04), $(0.06), $0.01, $0.07, $0.10, and $0.13, 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, 2000 (unaudited), the years ended October 31, 1999, 1998 and 1997 and the period ended October 31, 1996 were
$(0.13), $(0.21), $(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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $0.01, $0.03, $0.09, $0.16, $0.17
and $0.20, respectively. Net investment (loss) per share before reimbursement/waiver of fees by the Investment Advisor
and/or Administrator for Prime A Shares for the six months ended April 30, 2000 (unaudited) and the year ended October 31,
1999 were $(0.02) and $(0.04), respectively. Net investment (loss) per share before reimbursement/waiver of fees by the
Investment Advisor and/or Administrator for Prime B Shares for the six months ended April 30, 2000 (unaudited) and the year
ended October 31, 1999 were $(0.13) and $(0.14), respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
70-71
<PAGE>
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- --------------------------------------
NET
NET NET REALIZED AND DIVIDENDS DISTRIBUTIONS NET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM NET FROM INCREASE (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
04/30/00 (unaudited) $20.86 $(0.04)(2) $ 2.37 $ 2.33 $(0.05) $(1.19) $(1.24) $ 1.09
10/31/99 16.75 0.01(2) 4.72 4.73 (0.05) (0.57) (0.62) 4.11
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)
RETAIL B
04/30/00 (unaudited) 20.80 (0.13)(2) 2.39 2.26 -- (1.19) (1.19) 1.07
10/31/99(1) 16.85 (0.09)(2) 4.74 4.65 (0.13) (0.57) (0.70) 3.95
TRUST
04/30/00 (unaudited) 21.18 0.01(2) 2.41 2.42 (0.16) (1.19) (1.35) 1.07
10/31/99 17.00 0.10(2) 4.80 4.90 (0.15) (0.57) (0.72) 4.18
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)
PRIME A
04/30/00 (unaudited) 20.98 (0.01)(2) 2.38 2.37 (0.12) (1.19) (1.31) 1.06
10/31/99(1) 16.85 0.06(2) 4.79 4.85 (0.15) (0.57) (0.72) 4.13
PRIME B
04/30/00 (unaudited) 20.85 (0.10)(2) 2.37 2.27 -- (1.19) (1.19) 1.08
10/31/99(1) 16.85 (0.08)(2) 4.78 4.70 (0.13) (0.57) (0.70) 4.00
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME (LOSS) 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> <C>
RETAIL A
04/30/00 (unaudited) $21.95 11.23%** $119,486 (0.33)%* 1.31%* 1.56%* 20%**
10/31/99 20.86 29.04% 89,327 0.03% 1.48% 1.73% 45%
10/31/98 16.75 13.64% 66,541 0.39% 1.48% 1.73% 49%
10/31/97 15.18 15.88% 56,592 0.03% 1.60% 1.85% 45%
10/31/96 13.94 10.86% 35,144 0.78% 1.70% 1.98% 146%
10/31/95 12.92 (0.64)% 30,104 0.84% 1.76% 2.03% 48%
RETAIL B
04/30/00 (unaudited) 21.87 10.86%** 6,821 (1.10)%* 2.08%* 2.71%* 20%**
10/31/99(1) 20.80 28.41% 2,189 (0.45)% 1.96% 2.70% 45%
TRUST
04/30/00 (unaudited) 22.25 11.49%** 639,924 0.10%* 0.88%* 1.13%* 20%**
10/31/99 21.18 29.71% 501,776 0.54% 0.97% 1.22% 45%
10/31/98 17.00 14.32% 345,692 0.91% 0.96% 1.21% 49%
10/31/97 15.33 16.60% 265,124 0.57% 1.06% 1.32% 45%
10/31/96 14.01 11.51% 172,561 1.40% 1.08% 1.36% 146%
10/31/95 12.98 (0.02)% 89,614 1.36% 1.22% 1.48% 48%
PRIME A
04/30/00 (unaudited) 22.04 11.34%** 16 (0.11)%* 1.09%* 1.93%* 20%**
10/31/99(1) 20.98 29.73% 12 0.34% 1.17% 2.03% 45%
PRIME B
04/30/00 (unaudited) 21.93 10.93%** 495 (0.85)%* 1.83%* 2.16%* 20%**
10/31/99(1) 20.85 28.74% 458 (0.38)% 1.89% 2.27% 45%
-------------------------------------------------------------------------------
<FN>
* Annualized
** Not Annualized
(1) The Fund began issuing Retail B, Prime A and Prime B 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, Prime A Shares and Prime 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997,
1996 and 1995 were $(0.07), $(0.04), $0.03, $(0.01), $0.07 and $0.08, 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, 2000 (unaudited) and the year ended October 31, 1999 were $(0.20) and $(0.25), respectively. 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $(0.02),
$0.06, $0.10, $0.04, $0.13 and $0.13, respectively. Net investment (loss) per share before reimbursement/waiver of fees by
the Investment Advisor and/or Administrator for Prime A Shares for the six months ended April 30, 2000 (unaudited) and the
year ended October 31, 1999 were $(0.11) and $(0.09), respectively. Net investment (loss) per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator for Prime B Shares for the six months ended
April 30, 2000 (unaudited) and the year ended October 31, 1999 were $(0.14) and $(0.16), respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
72-73
<PAGE>
SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
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 (LOSS0 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
04/30/00 (unaudited) $12.98 $ --(2)(4) $ 1.94 $ 1.94 $(0.01) $ -- $(1.36) $(1.37)
10/31/99 13.53 0.02 0.73 0.75 (0.03) -- (1.27) (1.30)
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)
RETAIL B
04/30/00 (unaudited) 12.96 (0.05)(2) 1.94 1.89 -- -- (1.36) (1.36)
10/31/99(3) 13.59 (0.04) 0.68 0.64 -- -- (1.27) (1.27)
TRUST
04/30/00 (unaudited) 13.07 0.03(2) 1.95 1.98 (0.02) -- (1.36) (1.38)
10/31/99 13.61 0.05 0.74 0.79 (0.06) -- (1.27) (1.33)
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)
PRIME A
04/30/00 (unaudited) 13.04 0.01(2) 1.95 1.96 (0.01) -- (1.36) (1.37)
10/31/99(3) 13.59 0.03 0.73 0.76 (0.04) -- (1.27) (1.31)
PRIME B
04/30/00 (unaudited) 12.98 (0.04)(2) 1.95 1.91 -- -- (1.36) (1.36)
10/31/99(3) 13.59 (0.05) 0.71 0.66 -- -- (1.27) (1.27)
</TABLE>
<TABLE>
NET INCREASE NET ASSETS,
(DECREASE) IN NET NET ASSET VALUE, END OF PERIOD
ASSET VALUE END OF PERIOD TOTAL RETURN(A) (IN 000'S)
-------------- ---------------- --------------- -------------
<S> <C> <C> <C> <C>
RETAIL A
04/30/00 (unaudited) $ 0.57 $13.55 15.94%** $87,188
10/31/99 (0.55) 12.98 5.68% 80,870
10/31/98 (4.76) 13.53 (12.52)% 87,781
10/31/97 3.54 18.29 43.58% 63,658
10/31/96(1) 2.07 14.75 24.77% 34,402
10/31/95 1.62 12.68 21.27% 27,546
RETAIL B
04/30/00 (unaudited) 0.53 13.49 15.58%** 2,491
10/31/99(3) (0.63) 12.96 4.80% 1,637
TRUST
04/30/00 (unaudited) 0.60 13.67 16.22%** 285,963
10/31/99 (0.54) 13.07 6.02% 255,268
10/31/98 (4.76) 13.61 (12.07)% 202,385
10/31/97 3.61 18.37 44.08% 189,257
10/31/96(1) 2.05 14.76 25.22% 137,341
10/31/95 1.64 12.71 21.52% 121,364
PRIME A
04/30/00 (unaudited) 0.59 13.63 16.07%** 179
10/31/99(3) (0.55) 13.04 5.80% 175
PRIME B
04/30/00 (unaudited) 0.55 13.53 15.73%** 155
10/31/99(3) (0.61) 12.98 4.96% 190
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME EXPENSES EXPENSES
INCLUDING INCLUDING EXCLUDING
REIMBURSEMENT/ REIMBURSEMENT/ REIMBURSEMENT/ PORTFOLIO
WAIVER WAIVER WAIVER TURNOVER RATE
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
RETAIL A
04/30/00 (unaudited) --%* 1.37%* 1.58%* 24%**
10/31/99 0.13% 1.31% 1.59% 42%
10/31/98 0.38% 1.31% 1.45% 33%
10/31/97 (0.25)% 1.30% 1.52% 52%
10/31/96(1) 0.08% 1.40% 1.55% 39%
10/31/95 (0.19)% 1.35% 1.85% 32%
RETAIL B
04/30/00 (unaudited) (0.80)%* 2.17%* 2.45%* 24%**
10/31/99(3) (0.66)% 2.10% 2.88% 42%
TRUST
04/30/00 (unaudited) 0.42%* 0.95%* 0.95%* 24%**
10/31/99 0.47% 0.97% 0.97% 42%
10/31/98 0.73% 0.96% 0.96% 33%
10/31/97 0.09% 0.96% 0.96% 52%
10/31/96(1) 0.45% 1.05% 1.06% 39%
10/31/95 0.07% 1.10% 1.35% 32%
PRIME A
04/30/00 (unaudited) 0.21%* 1.16%* 1.34%* 24%**
10/31/99(3) 0.26% 1.18% 1.40% 42%
PRIME B
04/30/00 (unaudited) (0.55)%* 1.92%* 2.42%* 24%**
10/31/99(3) (0.49)% 1.93% 2.49% 42%
-------------------------------------------------------------------------------
<FN>
* 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, Prime A and Prime B 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, Prime A Shares and Prime 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997,
1996 and 1995 were $(0.01)(2), $(0.02), $0.05, $(0.02)(2), $0.01 and $(0.08), 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, 2000 (unaudited) and the year ended October 31, 1999 were $(0.07)(2) and $(0.09), respectively. 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996 and
1995 were $0.03(2), $0.05, $0.11, $0.05(2), $0.05 and $(0.03), respectively. Net investment income per share before
reimbursement/waiver of fees by the Investment Advisor and/or Administrator for Prime A Shares for the six months ended
April 30, 2000 (unaudited)and the year ended October 31, 1999 were $0.00(2)(4) and $0.00, respectively. Net investment
(loss) per share before reimbursement/ waiver of fees by the Investment Advisor and/or Administrator for Prime B Shares for
the six months ended April 30, 2000 (unaudited) and the year ended October 31, 1999 were $(0.07)(2) and $(0.10),
respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
74-75
<PAGE>
SMALL COMPANY EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- --------------------------
NET
NET NET REALIZED AND DISTRIBUTIONS NET
ASSET VALUE, INVESTMENT UNREALIZED TOTAL FROM FROM INCREASE (DECREASE)
BEGINNING INCOME GAIN (LOSS) ON INVESTMENT NET REALIZED TOTAL IN NET
OF PERIOD LOSS(B) INVESTMENTS OPERATIONS CAPITAL GAINS DISTRIBUTIONS ASSET VALUE
------------ ---------- -------------- ---------- ------------- ------------- -------------------
<S> <C> <C> <C> <C> <C> <C> <C>
RETAIL A
04/30/00 (unaudited) $15.66 $(0.13) $ 8.06 $ 7.93 $ -- $ -- $ 7.93
10/31/99 13.63 (0.23) 2.26 2.03 -- -- 2.03
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
RETAIL B
04/30/00 (unaudited) 15.31 (0.19) 7.88 7.69 -- -- 7.69
10/31/99 13.39 (0.34) 2.26 1.92 -- -- 1.92
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
04/30/00 (unaudited) 16.13 (0.08) 8.31 8.23 -- -- 8.23
10/31/99 13.96 (0.16) 2.33 2.17 -- -- 2.17
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
</TABLE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------
RATIO OF NET RATIO OF RATIO OF
INVESTMENT OPERATING OPERATING
INCOME (LOSS) 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> <C>
RETAIL A
04/30/00 (unaudited) $23.59 50.77%** $127,636 (1.11)%* 1.42%* 1.42%* 46%**
10/31/99 15.66 14.89% 87,921 (1.41)% 1.53% 1.54% 105%
10/31/98 13.63 (26.26)% 95,831 (1.13)% 1.46% 1.47% 78%
10/31/97 20.94 19.08% 135,593 (1.02)% 1.46% 1.48% 69%
10/31/96 19.96 23.97% 111,101 (1.03)% 1.57% 1.57% 82%
10/31/95 16.28 34.01% 45,668 (0.85)% 1.60% 1.64% 54%
RETAIL B
04/30/00 (unaudited) 23.00 50.23%** 19,071 (1.86)%* 2.17%* 2.19%* 46%**
10/31/99 15.31 14.34% 12,212 (2.04)% 2.16% 2.32% 105%
10/31/98 13.39 (26.72)% 12,565 (1.78)% 2.11% 2.16% 78%
10/31/97 20.73 18.23% 14,731 (1.76)% 2.20% 2.44% 69%
10/31/96(1) 19.91 15.34%** 3,659 (1.50)%* 2.04%* 2.44%* 82%
TRUST
04/30/00 (unaudited) 24.36 51.02%** 408,401 (0.71)%* 1.02%* 1.02%* 46%**
10/31/99 16.13 15.54% 233,326 (1.00)% 1.12% 1.12% 105%
10/31/98 13.96 (26.00)% 222,675 (0.76)% 1.09% 1.09% 78%
10/31/97 21.32 19.59% 310,751 (0.65)% 1.09% 1.12% 69%
10/31/96 20.20 24.69% 174,990 (0.60)% 1.14% 1.14% 82%
10/31/95 16.38 34.73% 94,831 (0.37)% 1.12% 1.12% 54%
-------------------------------------------------------------------------------
<FN>
* 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, 2000 (unaudited) and the years ended October 31, 1999, 1998, 1997, 1996
and 1995 were $(0.13), $(0.23), $(0.19), $(0.18), $(0.14) and $(0.09), 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, 2000, (unaudited), the years ended October 31, 1999, 1998 and 1997 and the period ended October 31, 1996 were
$(0.19), $(0.37), $(0.30), $(0.24) and $(0.24)(2), respectively. Net investment (loss) per share before reimbursement/waiver
of fees by the Investment Advisor and/or Administrator for Trust Shares for six months ended April 30, 2000 (unaudited) and
the years ended October 31, 1999, 1998, 1997, 1996 and 1995 were $(0.08), $(0.16), $(0.14), $(0.11), $(0.09) and $(0.04),
respectively.
</FN>
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
76-77
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
The Galaxy Fund, a Massachusetts business trust (the "Trust"), is registered
under the Investment Company Act of 1940, as amended, 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, Prime A Shares and Prime B Shares) except the Asset
Allocation Fund, Growth and Income Fund and International Equity Fund, each of
which is authorized to issue six series of shares (Trust Shares, Retail A
Shares, Retail B Shares, Prime A Shares, Prime B Shares and BKB Shares).
Currently, the Asset Allocation, Growth and Income and International Equity
Funds offer all six series of authorized shares, the Equity Growth and Small Cap
Value Funds offer all five series of authorized 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, Prime A Shares, Prime B Shares and BKB Shares are substantially
the same except that (i) Retail A Shares are subject to a maximum 3.75%
front-end sales charge, (ii) Prime A Shares are subject to a maximum 5.50%
front-end sales charge, (iii) Retail B Shares and Prime B 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, Prime B Shares will convert automatically to Prime A
Shares. BKB Shares of the Asset Allocation, Growth and Income and International
Equity Funds will convert to Retail A Shares of the same Fund on the first
anniversary of the closing of the reorganization of the Boston 1784 Funds into
the Trust provided that prior thereto the Board of Trustees of the Trust has
determined that such conversion is in the best interest of the holders of such
BKBShares. No BKB Shares of the Asset Allocation, Growth and Income and
International Equity Funds were issued prior to the date of this report.
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
78
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 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. 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 FleetBoston Financial
Corporation, 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. FleetBoston Financial Corporation owns an interest in Oechsle.
The Trust and PFPC Inc. (formerly known as First Data Investor Services Group,
Inc.), a member of PNC Financial Services Group (formerly known as PNC Bank
Corp.), are parties to an administration agreement under which PFPC Inc. (the
"Administrator") provides services for a fee, computed daily and paid monthly,
at the annual rate of 0.09% of the first $2.5 billion of the combined average
daily net assets of the Funds and the other funds offered by the Trust (whose
financial statements are provided in separate reports), 0.085% of the next $2.5
billion of combined average daily net assets, 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
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS
billion of combined average daily net assets and 0.0575% of combined average
daily net assets in excess of $18 billion. Prior to December 1, 1999, the
services described above were provided by First Data Investor Services Group,
Inc., a wholly-owned subsidiary of First Data Corp. On that date, PFPC Trust
Co., a wholly-owned subsidiary of PNC Bank Corp., acquired all of the
outstanding stock of First Data Investor Services Group, Inc. As part of that
transaction, PFPC Inc., also an indirect wholly-owned subsidiary of PNC Bank
Corp., was merged into First Data Investor Services Group, Inc., which then
changed it's name to PFPC Inc.
In addition, PFPC Inc. also provides certain fund accounting, custody
administration and transfer agency services pursuant to certain fee
arrangements. Pursuant to such fee arrangements, PFPC Inc. compensates the
Trust's custodian bank, The Chase Manhattan Bank for its services.
Provident Distributors, Inc. (the "Distributor") acts as the exclusive
distributor of the Trust's shares. Prior to December 1, 1999, First Data
Distributors, Inc., a wholly-owned subsidiary of First Data Investor Services
Group, Inc., acted as the exclusive 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 shareholder liaison and/or
administrative 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, 2000, the Funds paid fees under
the Services Plan and 12b-1 Plan as follows:
SERVICES 12B-1 PLAN
-------- ----------
PLAN SERVICES DISTRIBUTION
---- -------- ------------
Asset Allocation $ 532,774 $ 130,509 $ 309,682
Equity Income 284,009 5,041 11,416
Growth and Income 326,263 85,530 202,634
Strategic Equity 10,942 2,092 4,672
Equity Value 358,396 45,104 102,864
Equity Growth 667,710 123,131 292,261
International Equity 139,329 5,287 13,141
Small Cap Value 118,302 2,975 6,917
Small Company Equity 156,163 23,191 55,541
The Trust has adopted a distribution plan (the "Prime A Shares Plan") with
respect to Prime A Shares of the Funds. Under the Prime A Shares Plan, the Trust
may pay the Distributor or another person for expenses and activities primarily
intended to result in the sale of Prime A Shares. Payments by the Trust under
the Prime A Shares Plan may not exceed the annual rate of 0.30% of the average
daily net assets attributable to each Fund's outstanding Prime A Shares. The
Trust, under direction of the Board of Trustees, is currently limiting each
Fund's payments under the Prime A 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 Prime A Shares.
The Trust has adopted a distribution and services plan (the "Prime B Shares
Plan") with respect to the Prime B Shares of the Funds. Under the Prime B Shares
Plan, the Trust may pay (i) the Distributor or another person for expenses and
activities primarily intended to result in the sale of Prime B Shares, (ii)
institutions for shareholder liaison services, and (iii) institutions for
administrative support services. Payments for distribution expenses may not
exceed the annual rate of 0.75% of the aver-
80
<PAGE>
NOTES TO FINANCIAL STATEMENTS
age daily net assets attributable to each Fund's outstanding Prime B 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 Prime B 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 Prime B Shares Plan to an aggregate
fee of not more than 0.25% of the average daily net asset value of Prime B
Shares owned of record or beneficially by customers of institutions. For the six
months ended April 30, 2000, the Funds paid fees under the Prime A Shares Plan
and Prime B Shares Plan as follows:
PRIME A PRIME B SHARES PLAN
------- -------------------
SHARES PLAN SERVICES DISTRIBUTION
----------- -------- ------------
Asset Allocation $ 252 $ 679 $ 2,037
Growth and Income 188 160 480
Equity Growth 148 447 1,343
International Equity 19 642 1,925
Small Cap Value 225 228 685
The Trust has adopted a shareholder services plan (the "BKB Plan") with
respect to BKB Shares of the Asset Allocation, Growth and Income and
International Equity Funds. The BKB Plan provides compensation to institutions
(including Fleet Bank and its affiliates) which provide shareholder liaison
and/or administrative support services to their customers who beneficially own
BKB Shares at an aggregate annual rate not to exceed 0.50% of the average daily
net asset value of the outstanding BKB 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 BKB 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 BKB Shares beneficially owned by such customers. As of
the date of this report, no payments have been made under the BKB Plan.
Retail A Shares, Retail B Shares, Trust Shares, Prime A Shares, Prime B Shares
and BKB 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
PFPC Inc. 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, 2000, transfer agent charges for
each series (other than BKB Shares which had not been issued prior to the date
of this report) were as follows:
RETAIL A RETAIL B TRUST
-------- -------- -----
Asset Allocation $ 235,532 $ 77,390 $277,809
Equity Income 138,093 4,488 6,152
Growth and Income 229,523 71,452 241,832
Strategic Equity 13,097 3,134 46
Equity Value 233,011 48,640 188,582
Equity Growth 395,791 129,807 306,434
International Equity 123,977 14,553 155,549
Small Cap Value 168,609 6,632 57,526
Small Company Equity 154,195 30,529 192,277
PRIME A PRIME B
------- -------
Asset Allocation $ 172 $ 577
Growth and Income 75 123
Equity Growth 62 256
International Equity 47 213
Small Cap Value 170 473
Certain officers of the Trust are 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. 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 $45,000 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, 2000 include legal fees paid to
Drinker Biddle & Reath LLP. A partner of that firm is Secretary to the Trust.
Pursuant to procedures adopted by the Board of Trustees and in accordance with
the Investment Company Act of 1940, as amended, certain Funds placed a portion
of their portfolio transactions with Quick & Reilly Institutional Trading, a
division of Fleet Securities, Inc., an affiliate of the Investment Advisor. The
commissions paid to Quick & Reilly Institutional Trading for the six months
ended April 30, 2000 were as follows:
81
<PAGE>
NOTES TO FINANCIAL STATEMENTS
FUND COMMISSIONS FUND COMMISSIONS
---- ----------- ---- -----------
Asset Allocation $ 58,584 Strategic Equity $13,980
Equity Income 160,416 Equity Growth 34,045
Growth and Income 92,764
Equity Value 240,382
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, 2000, Fleet 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 $ 732 $ --
Equity Income -- 1,454
Growth and Income 191 124,870
Strategic Equity 84,286 9,661
Equity Value -- 5,963
Equity Growth 309 --
International Equity 907,063 5,285
Small Cap Value 1,021 91,816
Small Company Equity -- 1,573
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 forty classes of shares, each
consisting of one or more series.
Each share represents an equal proportionate interest in the respective Fund,
bears the same fees and expenses (except that Retail A Shares of a Fund bear the
expense of payments under the Services Plan, Retail B Shares of a Fund bear the
expense of payments under the 12b-1 Plan, Prime A Shares of a Fund bear the
expense of payments under the Prime A Shares Plan, Prime B Shares of a Fund bear
the expense of payments under the Prime B Shares Plan, BKB Shares of a Fund bear
the expense of payments under the BKB Plan and Trust Shares, Retail A Shares,
Retail B Shares, Prime A Shares, Prime B Shares and BKB Shares of the Fund 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 six months ended April 30, 2000 were as follows:
<TABLE>
PURCHASES SALES
------------------------------ -------------------------------
FUND U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER
----- --------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
Asset Allocation .............. $ 145,363,191 $ 97,665,587 $ 160,193,497 $ 111,440,768
Equity Income ................. -- 99,773,323 2,000,000 110,225,545
Growth and Income ............. -- 42,028,819 -- 52,270,983
Strategic Equity .............. -- 39,855,059 -- 34,958,770
Equity Value .................. -- 141,909,905 -- 209,099,327
Equity Growth ................. -- 425,637,782 -- 376,408,708
International Equity .......... -- 223,358,267 -- 135,040,311
Small Cap Value ............... -- 81,600,670 -- 86,681,399
Small Company Equity .......... -- 233,985,000 -- 222,134,679
</TABLE>
82
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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, 2000 for each Fund is as follows:
<TABLE>
FUND APPRECIATION (DEPRECIATION) NET COST
----- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
Asset Allocation ............... $ 182,119,844 $ (16,943,146) $ 165,176,698 $ 585,059,432
Equity Income .................. 55,245,507 (15,250,135) 39,995,372 270,501,189
Growth and Income .............. 174,220,281 (48,854,734) 125,365,547 471,080,428
Strategic Equity ............... 13,885,446 (9,438,658) 4,446,788 88,637,153
Equity Value ................... 125,121,840 (34,563,290) 90,558,550 445,209,197
Equity Growth .................. 831,542,526 (57,568,906) 773,973,620 1,160,970,505
International Equity ........... 233,134,821 (57,714,950) 175,419,871 593,077,534
Small Cap Value ................ 64,105,921 (66,361,257) (2,255,336) 377,364,193
Small Company Equity ........... 157,222,423 (68,977,724) 88,244,699 473,414,237
</TABLE>
7. FEDERAL TAX INFORMATION
At October 31, 1999, the Small Company Equity Fund had capital loss
carryforwards of $33,481,372 and $2,671,948, which expire in 2006 and 2007,
respectively.
8. 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.
9. LINE OF CREDIT
Each Fund and other affiliated funds participate in a $150 million unsecured
line of credit pursuant to a credit agreement dated as of December 29,1999.
Borrowings may be made under the credit agreement only for temporary or
emergency purposes, such as repurchase or redemption of shares of the Funds.
Interest is charged to each Fund based on its borrowings. In addition, a
commitment fee based on the average daily unused portion of the line of credit
is computed daily and paid quarterly at an annual rate of 0.10%, and allocated
among the Funds based on average daily net assets. For the period ended April
30, 2000, no borrowings have been made by the Funds against the line of credit.
83
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[GRAPHIC OMITTED]
GALAXY
FUNDS
4400 COMPUTER DRIVE
P.O. BOX 5108
WESTBOROUGH, MA 01581-5108
SEMIANEQU (7/1/00)
-------------------
BULK RATE
U.S. POSTAGE PAID
PERMIT NO. 105
NORTH READING, MA
-------------------
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