<PAGE> 1
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SEMI-ANNUAL REPORT
- ---------------------------------------
- ---------------------------------------
JUNE 30, 1996
- ---------------------------------------
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YOUR FOUNDATION FOR INVESTMENT STRENGTH
- ---------------------------------------
[PHOTO]
THE THE KENT GROWTH AND INCOME FUND
KENT
FUNDS[REGISTERED TRADEMARK] THE KENT SMALL COMPANY
GROWTH FUND
THE KENT INTERNATIONAL
GROWTH FUND
THE KENT INDEX EQUITY FUND
<PAGE> 2
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PORTFOLIO REVIEWS
-------------------------------------------------------
Dear Kent Fund Shareholder:
Enclosed is the semi-annual report for The Kent
Equity Funds for the six months ended June 30, 1996.
Inside, you'll find a Market Overview that describes
the economic and market conditions that we believe
affected the Funds' performances during this time.
There are also Portfolio Reviews for each Fund that
explain how the Fund managers adjusted their portfolios
in the prevailing investment environment and what the
managers expect in the months to come.
During the period, the Kent Funds concentrated on
providing shareholders good value and attractive
potential for growth while managing risks. If you have
any questions about your investments after reading this
report, please call 1-800-633-KENT (1-800-633-5368) to
speak to a Kent Funds Specialist. We remain committed
to providing you with useful information that can help
you make the most of your investments.
Sincerely,
The Kent Funds
<PAGE> 3
Taxable Funds
INVESTMENT ADVISER
Old Kent Bank
Grand Rapids, MI 49503
DISTRIBUTOR
BISYS Fund Services
3435 Stelzer Road
Columbus, OH 43219
This report is submitted for the general information of shareholders of The Kent
Growth and Income Fund, The Kent Small Company Growth Fund, The Kent
International Growth Fund and The Kent Index Equity Fund. It is not authorized
for distribution to prospective investors unless accompanied or preceded by an
effective prospectus for the funds, which contains more information concerning
the funds' investment policies, as well as fees and expenses and other pertinent
information. Read the prospectus carefully before investing.
The performance indexes used for comparison in this report, including the
Standard & Poor's 500 Composite Stock Price Index, the Morgan Stanley Capital
International Europe, Australia and Far East Index, the Morgan Stanley Capital
International Europe Index, the Morgan Stanley Capital International Pacific
Index and the Russell 2000 Index, are unmanaged indices. Unlike actual mutual
fund performance, performance of an index does not reflect any management fees,
other expenses or sales charges. A direct investment in an unmanaged index is
not possible.
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2
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<PAGE> 4
Stock prices continued to rise in the first half of 1996 -- even though
signs of faster economic growth prompted fears of higher inflation and interest
rates that raised long-term Treasury bond yields nearly a percentage point.
During the six months ended June 30, 1996, the Standard & Poor's 500[Registered
Trademark] Composite Stock Price Index ("S&P 500 Index") earned a total return
of 10.2%, which would translate into a return of more than 21.4% for 1996 if
the same advance continued all year. While this would fall quite a bit behind
the 37.4% total return stocks, as measured by the S&P 500 Index, earned in
1995, it would comfortably exceed the 10.5% average annual return stocks have
earned since 1929.
Although corporate earnings have begun to slow, they remained relatively
strong in the last six months. Common stocks also benefited from record flows of
cash into equity mutual funds -- at the same time that corporate mergers and
share repurchases tightened issue supplies.
Stock prices have become significantly more volatile, however. Between
January and June of 1996, for example, the New York Stock Exchange imposed
restrictions on program trading 58 times. This exceeds the previous yearly
record of 30 times in 1994. Increased volatility often occurs at the end of a
large advance.
During the first half of 1996 smaller company stocks outperformed
larger-company stocks -- although large-company stocks took the lead when
investors were most concerned about the economy. We believe small-company issues
rallied primarily because they had underperformed since October of 1994 and had
fairly reasonable valuations in an otherwise overvalued market. Stocks of small
companies may have also benefited as advances in the U.S. dollar dampened the
earnings of larger firms.
ONGOING ECONOMIC CONCERN
Many investors have spent considerable time worrying that the economy was
either too strong or too weak. Such seesawing of expectations is generally not
healthy for common stocks. In the months ahead, monthly economic reports that
give an indication of the economy's growth rate during the current quarter
should be a key to investor behavior.
Investors generally want to see that economic growth is moderating to a
pace that is more sustainable, and that inflation remains low enough to prevent
significant increases in interest rates. Investors also want to know, however,
that growth will be strong enough to keep profits at a high level through 1997.
We expect economic growth to slow in the second half of this year.
Taken with virtually nonexistent pricing power, battles for market share should
intensify. This will create pressure on corporate earnings as profit margins
suffer. Softer profits could become the economy's weak link -- causing declines
in employment, spending, and production later in the year. The coming quarters
likely will bring a very bumpy ride for common stocks as investors realize that
the earnings stream is much more volatile in both directions.
- --------------------------------------------------------------------------------
EQUITY MARKET OVERVIEW
- --------------------------------------------------------------------------------
VALUATION WORRIES
The stock market also remains vulnerable to high valuations. The common
stocks of large domestic companies continue to look expensive to us -- selling
at their lowest dividend yields in history, the highest premium to book value in
history and at their highest ratio of market value to gross domestic product in
history. The major stock market indices haven't had a 10% correction since
October 1990 -- nor even a 5% correction in 18 months.
To many investors, common stocks appear to be a riskless investment. As a
result, the stock market has remained overbought on a virtually continuous basis
since late-1990. The backup in Treasury bond yields to 7% provides the stock
market with very little valuation elbow room. Any further increases in bond
yields could be a truly significant hurdle for common stocks to overcome.
Of prime importance is how much pain the newest investors in common stocks
will endure. In our opinion, the accelerating inflows into aggressive-growth
mutual funds clearly indicates that money is chasing performance.
Unquestionably, this condition may continue for a while. At some juncture,
however, we feel these inflows are bound to weaken.
Meanwhile, it is now taking significant cash to move stock prices a
comparatively small amount. Last year $128.9 billion flowed into equity mutual
funds and the S&P 500 Index had a total return of 37.4%. In the first six months
of 1996, $139.5 billion of new money came in, and the S&P 500 Index returned
10.1%. We feel this is an ominous sign that points to a bull market that is
aging rapidly.
There is further evidence to suggest the aging of the bull market in the
decidedly speculative turn that investors have undertaken. The market in initial
public offerings (IPOs) has traditionally been a good barometer of investor
sentiment and currently looks quite heated. In most cases, investors participate
in this market from almost a purely emotional viewpoint as newly launched
companies offer little history and no prior experience upon which to base
thoughtful investment decisions. Today's feverish IPO environment signals
rampant investor greed that, in the past, has generally raised short-term risks.
Further cash flows into equity mutual funds could force common stock prices
higher, bringing us ever closer to a break in the valuation rubber band. We
believe that the extreme level of valuation and the overtone of speculative
activity have greatly raised the level of risk associated with common stocks
today. We continue to feel that the portfolios of The Kent Equity Funds are well
positioned for whatever happens to common stocks for the rest of this year.
JOSEPH T. KEATING
Chief Investment Officer
MiCHAEL A. PETERSEN,
Director of Equity Management
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3
-
<PAGE> 5
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PORTFOLIO REVIEWS
- --------------------------------------------------------------------------------
THE KENT GROWTH AND INCOME FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
ANDREW H. FABIANO,
CO-PORTFOLIO MANAGER
Expecting stock prices to be more volatile in 1996, we took several
defensive measures at the end of 1995 to protect the value of shares in The Kent
Growth and Income Fund. This, plus added investments in stocks that performed
especially well, helped the Fund earn competitive returns for the six months
ended June 30, 1996.
During that time, the Fund's Institutional and Investment Shares had total
returns of 8.90% and 8.77%, respectively, before the deduction of sales charges.
That compares with returns of 9.21% for the average growth and income fund
tracked by Lipper Analytical Services and 10.20% for the Standard & Poor's
500[Registered Trademark] Composite Stock Price Index ("S&P 500 Index").
FOCUS ON RETAIL AND ENERGY STOCKS
After stock prices had risen strongly in 1995, we gave greater emphasis to
stocks that had less risk than the market as a whole. As of June 30, 1996, the
Fund had a beta of 0.90 -- making it only 90% as volatile as stocks in the S&P
500 Index.
In addition, we purchased new investments for the Fund to increase the
diversity of the portfolio. We gave particular attention to stocks in the retail
sector, which enjoyed a healthy rebound during the period. Energy stocks
outperformed in the first half of the year and we benefitted from being slightly
overweighted compared to the benchmark. Toward the end of the period we took
profits in technology stocks that had rallied. This has left the Fund
underweighted in that sector compared to the S&P 500 Index. The Fund is also
underweighted in financial stocks, which are especially sensitive to changes in
interest rates.
[PIE GRAPH]
<TABLE>
THE KENT GROWTH AND INCOME FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1996
<CAPTION>
ASSETS DISTRIBUTION
------ ------------
<S> <C>
Electric, Gas & Sanitary 14.34%
Energy 13.91%
Banking 6.28%
Chemicals & Drugs 4.86%
Metals and Mining 4.71%
Food and Beverage 8.61%
Cash Equivalents &
Net Other Assets &
Liabilities 2.23%
Aerospace and Defense 4.80%
Publishing and Printing 4.39%
Other Common Stocks 35.87%
</TABLE>
FUTURE OPPORTUNITIES
If slower growth in earnings and lower cash flows to mutual funds weaken
stock prices, as we expect, we could use this as an opportunity to diversify the
Fund's holdings even further. We've now begun to sell some of the Fund's retail
stocks that have met our expectations and add shares of utilities and firms in
early cyclical sectors. We will look carefully at forthcoming second-quarter
earnings reports to find other investments that might be attractive.
- -
4
- -
<PAGE> 6
Equity Funds
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS
- --------------------------------------------------------------------------------
<TABLE>
THE KENT GROWTH AND INCOME FUND
Average Annual Returns as of June 30, 1996
- ------------------------------------------
<CAPTION>
INVESTMENT INSTITUTIONAL
CLASS* CLASS
(inception: 12/4/92) (inception: 11/2/92)
----------------------------------------------------------------
<S> <C> <C>
One Year 18.84% 24.13%
Three Years 14.02% 15.68%
Life of Fund 13.80% 15.87%
<FN>
* REFLECTS 4.00% SALES CHARGE.
</TABLE>
<TABLE>
Growth of $10,000 Investment Comparison with the Standard & Poor's 500[Registered Trademark] Composite Stock Price Index
[GRAPH]
<CAPTION>
KENT FUND
DATE S&P COMPOSITE (INSTITUTIONAL)
- ---- ------------- ---------------
<S> <C> <C>
11/3/92 $10,000 $10,000
6/30/96 $17,598 $17,146
[GRAPH]
<CAPTION> KENT FUND
DATE S&P COMPOSITE (INVESTMENT)
- ---- ------------- ------------
<S> <C> <C>
12/3/92 $ 9,600 $ 9,600
6/30/96 $16,875 $15,886
<FN>
Past performance is no guarantee of future performance. The investment return and principal value will fluctuate so that your
shares, when redeemed, may be worth more or less than the original cost. Performance for each class will differ based on differences
in sales charges and expenses for each class of shares. Return figures and investment values are quoted after deducting class
expenses and sales charges (if applicable). Investment class shares are sold with a maximum front-end sales charge of 4.00%. The
Standard & Poor's 500[Registered Trademark] Composite Stock Price Index is an unmanaged index of 500 selected common stocks, most of
which are listed on the New York Stock Exchange. Total return is based on change in Net Asset Value, assuming reinvestment of all
dividends and capital gains distributions.
</TABLE>
-
5
-
<PAGE> 7
- --------------------------------------------------------------------------------
PORTFOLIO REVIEWS
- --------------------------------------------------------------------------------
THE KENT SMALL COMPANY GROWTH FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
ANDREW H. FABIANO,
CO-PORTFOLIO MANAGER
The strong rally by small-company stocks in the first half of 1996 boosted
returns for The Kent Small Company Growth Fund during that time. For the six
months ended June 30, 1996, returns for the Fund's Institutional and Investment
Shares were 12.77% and 12.54%, respectively, before the deduction of sales
charges. Over the same period the average small-cap growth fund tracked by
Lipper Analytical Services returned 14.84% and the Russell 2000 Index returned
10.40%.
CONTINUED ATTENTION TO VALUE
Throughout the period we continued to take a value-oriented approach toward
the Fund's investments. By emphasizing companies whose prices were especially
attractive compared to their potential for growth, we helped the Fund weather
the turnaround in small-company issues that occurred in June relatively well.
As before, we focused on common stocks whose prices tend to be less
volatile than other stocks in the small-company universe as a whole. At the end
of June, the Fund had an average beta of 0.88 when compared to the Russell 2000
Index, making the Fund only 88% as volatile as the Russell 2000 Index.
The Fund also benefited from the broad diversification of its portfolio.
During the period there were especially strong gains from investments in retail,
energy and technology issues.
[PIE GRAPH]
<TABLE>
THE KENT SMALL COMPANY GROWTH FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1996
<CAPTION>
ASSETS DISTRIBUTION
------ ------------
<S> <C>
Electric, Gas & Sanitary 10.33%
Building & Construction 5.42%
Cash Equivalents &
Net Other Assets &
Liabilities 5.78%
Manufacturing Industries 5.05%
Retail 4.78%
Electrical & Electronic
Machinery 5.51%
Other Common Stocks 56.33%
Issurance 6.80%
</TABLE>
SMALL-COMPANY OUTLOOK
We believe that the small-company sector remains among the more attractive
areas in the stock market. This is especially true of shares representing strong
value, where we've concentrated investments in The Kent Small Company Growth
Fund. If stock prices correct as corporate earnings and cash flows to mutual
funds start to ebb, we expect to find many new investment opportunities that
would help diversify the Fund's portfolio further. Many of these may come from
stocks in cyclical sectors, whose prices have been dampened by ongoing
uncertainty about the economy.
- -
6
- -
<PAGE> 8
Equity Funds
-----------------
PORTFOLIO REVIEWS
-----------------
<TABLE>
THE KENT SMALL COMPANY GROWTH FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1996
<CAPTION>
INVESTMENT INSTITUTIONAL
CLASS* CLASS
(inception: 12/4/92) (inception: 11/2/92)
-----------------------------------------------------------------------
<S> <C> <C>
One Year 19.19% 24.59%
Three Years 13.09% 14.78%
Life of Fund 13.82% 16.97%
<FN>
* REFLECTS 4.00% SALES CHARGE.
</TABLE>
GROWTH OF $10,000 INVESTMENT COMPARISON
WITH THE RUSSELL 2000 INDEX
[LINE CHART: The Kent Small Company Growth Fund Institutional Class Shares]
<TABLE>
<CAPTION>
KENT FUND
RUSSELL 2000 (INSTITUTIONAL)
<S> <C> <C>
11/03/92 10,000 10,000
06/30/96 18,447 17,750
</TABLE>
[LINE CHART: The Kent Small Company Growth Fund Investment Class Shares]
<TABLE>
<CAPTION>
KENT FUND
RUSSELL 2000 (INVESTMENT)
<S> <C> <C>
12/03/92 10,000 9,600
06/30/96 17,135 15,881
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate so that your shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in sales charges and expenses for each class of
shares. Return figures and investment values are quoted after deducting class
expenses and sales charges (if applicable). Investment class shares are sold
with a maximum front-end sales charge of 4.00%. The Russell 2000 Index is an
unmanaged index of the smallest 2,000 companies in the Russell 3000 Index, as
ranked by total market capitalization. The Russell 2000 is widely regarded in
the industry to accurately capture the universe of small cap stocks. Total
return is based on change in Net Asset Value, assuming reinvestment of all
dividends and capital gain distributions.
-
7
-
<PAGE> 9
- -----------------
PORTFOLIO REVIEWS
- -----------------
THE KENT INTERNATIONAL GROWTH FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
The Kent International Growth Fund performed in line with the developed
markets represented in the Morgan Stanley Capital International Europe,
Australia and Far East (EAFE) Index for the six months ended June 30, 1996.
During that time, Institutional and Investment shares of the Fund returned 4.65%
and 4.46%, respectively, before the deduction of sales charges. That compares to
returns of 4.50% for the EAFE Index.
Benefiting from exposure to Latin America, where stocks gained 15.4%, the
average international fund tracked by Lipper Analytical Services returned 9.76%.
STRONG PERFORMANCES IN EUROPE
The Fund weights the stocks of individual countries based on both the
countries' relative weightings in the EAFE Index and the countries' relative
gross domestic products (GDPs). At the end of 1995 the Fund adjusted its
weightings to reflect recent changes in national GDPs. This gave the Fund
additional representation in France, Italy and Germany, where dollar-adjusted
total returns for stocks during the period were 11.1%, 12.8% and 4.5%,
respectively. European stocks as a whole had a total return of 6.4% during the
first half of 1996.
Stocks didn't fare as well in Pacific Rim countries during the first half
of 1996, which earned an average six-month return of 2.6%. Emerging nations
there fared better than Japan, where stocks returned just 1.1%. Although we
increased investments in Japan slightly at the end of 1995, Japanese stocks were
still underweighted in the Fund's portfolio relative to the EAFE Index. This
also helped the Fund's performance during the period.
[PIE CHART: THE KENT INTERNATIONAL GROWTH FUND
DISTRIBUTION OF NET ASSETS
As of June 30, 1996]
<TABLE>
THE KENT INTERNATIONAL GROWTH FUND
Distribution of Net Assets
as of June 30, 1996
<S> <C>
Other Foreign Common and Preferred Stocks 16.54%
France 7.97%
Germany 9.78%
Italy 3.98%
Japan 34.15%
Cash Equivalents & Net Other Assets & Liabilities 3.08%
Netherlands 3.44%
Switzerland 4.94%
United Kingdom 16.12%
</TABLE>
STRONGER GROWTH LIKELY
After lagging U.S. economic growth for several years, we believe that many
foreign economies could begin a period of outperformance in the second half of
this year. Government stimulation programs and falling interest rates are now
causing stronger domestic demand for goods in many foreign economies. Meanwhile
favorable currency valuations have helped to expand exports. If returns for U.S.
stocks weaken, as we expect, the low valuations in overseas markets could
attract many new investors.
- -
8
- -
<PAGE> 10
Equity Funds
-----------------
PORTFOLIO REVIEWS
-----------------
<TABLE>
THE KENT INTERNATIONAL GROWTH FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1996
<CAPTION>
INVESTMENT CLASS* INSTITUTIONAL CLASS
(inception: 12/4/92) (inception: 12/4/92)
----------------------------------------------------------------------------
<S> <C> <C>
One Year 16.37% 21.59%
Three Years 9.86% 11.53%
Life of Fund 13.11% 14.71%
<FN>
* REFLECTS 4.00% SALES CHARGE.
</TABLE>
Growth of $10,000 Investment Comparison with the Morgan Stanley Capital
International Europe, Australia and Far East Index; the Morgan Stanley Capital
International Europe Index and the Morgan Stanley Capital International Pacific
Index
[LINE CHART: The Kent International Growth Fund Institutional Class Shares]
<TABLE>
<CAPTION>
MORGAN STANLEY CAPITAL MORGAN STANLEY CAPITAL MORGAN STANLEY CAPITAL KENT FUND
EUROPE, ASIA, FAR EAST INDEX EUROPE INDEX PACIFIC INDEX (INSTITUTIONAL)
<S> <C> <C> <C> <C>
12/04/92 10,000 10,000 10,000 10,000
06/30/96 16,044 17,561 16,018 16,329
</TABLE>
[LINE CHART: The Kent Interantional Growth Fund Investment Class Shares]
<TABLE>
<CAPTION>
MORGAN STANLEY CAPITAL MORGAN STANLEY CAPITAL MORGAN STANLEY CAPITAL KENT FUND
EUROPE, ASIA, FAR EAST INDEX EUROPE INDEX PACIFIC INDEX (INVESTMNET)
<S> <C> <C> <C> <C>
12/04/92 10,000 10,000 10,000 9,600
06/30/96 16,044 17,561 16,018 15,530
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate so that your shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in sales charges and expenses for each class of
shares. Return figures and investment values are quoted after deducting class
expenses and sales charges (if applicable). Investment class shares are sold
with a maximum front-end sales charge of 4.00%. The Morgan Stanley Capital
International Europe, Australia and Far East Index is composed of a sample of
companies representative of the market structure of 20 European and Pacific
Basin countries. This Index represents the evolution of an unmanaged portfolio
consisting of all domestically listed stocks. The Morgan Stanley Capital
International Europe Index and the Morgan Stanley Capital International Pacific
Index are unmanaged indices of stocks in their respective regions. Total return
is based on change in Net Asset Value, assuming reinvestment of all dividends
and capital gain distributions. Investors are reminded that, while investing
globally can be rewarding, investments in foreign securities involve certain
risks and considerations in addition to those inherent with investing in U.S.
companies, such as currency fluctuations and political instability.
-
9
-
<PAGE> 11
- -----------------
PORTFOLIO REVIEWS
- -----------------
THE KENT INDEX EQUITY FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
Large-company stocks performed relatively well in the six months ended June
30, 1996. Their gains relative to small-company stocks were particularly strong
at the beginning and the end of the period, when investors were most unsure
about the economy.
For the six months ended June 30, 1996, Institutional and Investment shares
of The Kent Index Equity Fund had total returns of 9.74% and 9.71%,
respectively, before the deduction of sales charges. Over the same time the
average growth and income fund tracked by Lipper Analytical Services returned
9.21%, and the S&P 500[Registered Trademark] Composite Stock Price Index had a
total return of 10.20%.
Large-company stocks remain quite overvalued by historical standards, with
dividend yields the lowest they've ever been. At the same time, large-company
shares must compete with an increasingly heavy calendar of initial public
offerings (IPOs).
As a result, we think this sector remains particularly ripe for a temporary
price correction. If economic growth and inflation remain moderate, however, and
interest rates stay near current levels, we believe many investors could use
such a correction to buy additional shares of large-company issues.
[PIE CHART: The Kent Index Equity Fund Distribution of Net Assets
As of June 30, 1996]
<TABLE>
THE KENT INDEX EQUITY FUND
DISTRIBUTION OF NET ASSETS
AS OF JUNE 30, 1996
<S> <C>
Energy 9.14%
Electric, Gas & Sanitary 4.19%
Communications 8.31%
Food & Beverage 7.54%
Other Common Stocks 35.53%
Chemical & Drugs 12.93%
Banking 6.72%
Electric & Electronic Machinery 9.89%
Cash Equivalents & Net Other Assets & Liabilities 5.75%
</TABLE>
- --
10
- --
<PAGE> 12
Equity Funds
-----------------
PORTFOLIO REVIEWS
-----------------
<TABLE>
THE KENT INDEX EQUITY FUND
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1996
<CAPTION>
INVESTMENT INSTITUTIONAL
CLASS* CLASS
(inception: 11/25/92) (inception: 11/2/92)
--------------------------------------------------------------------------
<S> <C> <C>
One Year 19.91% 25.06%
Three Years 14.71% 16.40%
Life of Fund 13.98% 15.93%
<FN>
* Reflects 4.00% Sales Charge.
</TABLE>
Growth of $10,000 Investment Comparison with the Standard & Poor's 500
Registration Mark Composite Stock Price Index
[LINE CHART: The Kent Index Equity Fund Institutional Class Shares]
<TABLE>
<CAPTION>
S&P 500 KENT FUND
(INSTITUTIONAL)
<S> <C> <C>
11/02/92 10,000 10,000
06/30/96 17,637 17,177
</TABLE>
[LINE CHART: The Kent Index Equity Fund Investment Class Shares]
<TABLE>
<CAPTION>
S&P 500 KENT FUND
(INVESTMENT)
<S> <C> <C>
11/25/92 10,000 9,600
06/30/96 16,875 16,011
</TABLE>
Past performance is no guarantee of future performance. The investment return
and principal value will fluctuate so that your shares, when redeemed, may be
worth more or less than the original cost. Performance for each class will
differ based on differences in sales charges and expenses for each class of
shares. Return figures and investment values are quoted after deducting class
expenses and sales charges (if applicable). Investment class shares are sold
with a maximum front-end sales charge of 4.00%. The Standard & Poor's
500[Registered Trademark] Composite Stock Price Index is an unmanaged index of
500 selected common stocks, most of which are listed on the New York Stock
Exchange. Total return is based on change in Net Asset Value, assuming
reinvestment of all dividends and capital gains distributions.
--
11
--
<PAGE> 13
Shares of the funds are not deposits or obligations of, or guaranteed
or endorsed by Old Kent Bank or any of its affiliates. Shares of the
[NO FDIC] funds are not federally insured by the U.S. Government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board or any other
agency. Investment return and principal value will vary as a result of
market conditions and 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.
<PAGE> 14
<TABLE>
--------------
GROWTH AND INCOME FUND
THE KENT PORTFOLIO OF INVESTMENTS
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 97.77%
<S> <C> <C>
ELECTRIC, GAS AND SANITARY - 14.34%
103,600 American Electric Power Co., Inc. ............ $ 4,415,950
107,700 Baltimore Gas & Electric Co. ................. 3,055,988
136,000 Consolidated Edison Co. of New York .......... 3,978,000
38,900 Cooper Industries, Inc. ...................... 1,614,350
56,700 Dominion Resources, Inc. ..................... 2,268,000
131,800 DTE Energy Co. ............................... 4,069,325
20,000 Eastern Enterprises .......................... 665,000
318,100 Edison International ......................... 5,606,513
83,500 Entergy Corp. ................................ 2,369,313
45,000 FPL Group, Inc. .............................. 2,070,000
20,000 General Public Utilities Corp. ............... 705,000
19,400 Houston Industries, Inc. ..................... 477,725
395,000 Niagara Mohawk Power Corp. ................... 3,061,250
20,400 Nicor, Inc. .................................. 578,850
38,500 Northern States Power Co. .................... 1,900,938
98,000 Ohio Edison Co. .............................. 2,143,750
33,700 Oneok, Inc. .................................. 842,500
5,500 Pacific Enterprises .......................... 162,938
234,200 Pacific Gas & Electric Co. ................... 5,445,150
165,700 Pacificorp ................................... 3,686,825
132,400 Peco Energy Co. .............................. 3,442,400
200,400 Public Service Enterprise Group, Inc. ........ 5,485,950
94,200 Texas Utilities Co. .......................... 4,027,050
79,800 Union Electric Co. ........................... 3,211,950
-----------
65,284,715
-----------
ENERGY - 13.91%
50,000 Amerada Hess Corp. ........................... 2,681,250
138,600 Amoco Corp. .................................. 10,031,175
48,700 Atlantic Richfield Co. ....................... 5,770,950
64,800 Chevron Corp. ................................ 3,823,200
106,600 Exxon Corp. .................................. 9,260,875
25,000 Helmerich & Payne, Inc. ...................... 915,625
15,000 Kerr-Mcgee Corp. ............................. 913,125
112,500 Mcdermott International, Inc. ................ 2,348,438
78,100 Oryx Energy Co.* ............................. 1,269,125
62,400 Pennzoil Co. ................................. 2,886,000
120,300 Phillips Petroleum Co. ....................... 5,037,563
35,000 Schlumberger, Ltd. ........................... 2,948,750
91,100 Sun Co., Inc. ................................ 2,767,163
20,000 Tenneco, Inc. ................................ 1,022,500
69,900 Texaco, Inc. ................................. 5,862,863
75,000 Unocal Corp. ................................. 2,531,250
160,000 USX-Marathon Group ........................... 3,220,000
-----------
63,289,852
-----------
FOOD AND BEVERAGE - 8.61%
12,400 American Stores Co. .......................... 511,488
77,200 Anheuser-Busch Cos., Inc. .................... 5,790,000
195,665 Archer-Daniels-Midland Co. ................... 3,742,093
56,800 Campbell Soup Co. ............................ 4,004,400
43,300 ConAgra, Inc. ................................ 1,964,738
74,500 CPC International, Inc. ...................... 5,364,000
119,400 Fleming Cos., Inc. ........................... 1,716,375
71,100 General Mills, Inc. .......................... 3,874,950
57,700 Kellogg Co. .................................. 4,226,525
20,000 Luby's Cafeterias, Inc. ...................... 470,000
34,100 Quaker Oats Co. .............................. 1,163,663
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
FOOD AND BEVERAGE (CONTINUED)
60,000 Sara Lee Corp. ............................... $ 1,942,500
120,600 Seagram Co., Ltd. ............................ 4,055,175
20,000 Wendy's International, Inc. .................. 372,500
-----------
39,198,407
-----------
BANKING - 6.28%
40,000 Ahmanson (H.F.) & Co. ........................ 1,080,000
41,300 Banc One Corp. ............................... 1,404,200
74,300 Bankers Trust New York Corp. ................. 5,488,913
27,400 Boatmen's Bancshares, Inc. ................... 1,099,425
48,000 Corestates Financial Corp. ................... 1,848,000
15,000 First Union Corp. ............................ 913,125
30,400 Keycorp ...................................... 1,178,000
34,600 Mellon Bank Corp. ............................ 1,972,200
42,300 Morgan (J.P.) & Co., Inc. .................... 3,579,638
47,500 National City Corp. .......................... 1,668,438
70,700 Norwest Corp. ................................ 2,465,663
88,700 PNC Bank Corp. ............................... 2,638,825
10,000 Republic New York Corp. ...................... 622,500
60,000 Wachovia Corp. ............................... 2,625,000
-----------
28,583,927
-----------
CHEMICALS AND DRUGS - 4.86%
90,000 Abbott Laboratories .......................... 3,915,000
10,000 Air Products & Chemicals, Inc. ............... 577,500
133,800 Bristol-Myers Squibb Co. ..................... 12,042,000
9,600 Dow Chemical Co. ............................. 729,600
55,900 PPG Industries, Inc. ......................... 2,725,125
34,100 Schering-Plough Corp. ........................ 2,139,775
-----------
22,129,000
-----------
AEROSPACE AND DEFENSE - 4.80%
20,000 Boeing Co. ................................... 1,742,500
51,800 International Business Machines Corp. ........ 5,128,200
26,600 Lockheed Martin Corp. ........................ 2,234,400
20,000 Northrop Grumman Corp. ....................... 1,362,500
86,400 Raytheon Co. ................................. 4,460,400
79,700 Rockwell International Corp. ................. 4,562,825
29,600 Textron, Inc. ................................ 2,364,300
-----------
21,855,125
-----------
METALS AND MINING - 4.71%
44,400 Barrick Gold Corp. ........................... 1,204,350
55,700 Cyprus Amax Minerals Co. ..................... 1,260,213
100,700 Echo Bay Mines, Ltd. ......................... 1,082,525
92,800 Inland Steel Industries, Inc. ................ 1,821,200
132,800 Minnesota Mining & Manufacturing Co. ......... 9,163,200
35,608 Newmont Mining Corp. ......................... 1,758,145
18,500 Phelps Dodge Corp. ........................... 1,153,938
35,000 Reynolds Metals Co. .......................... 1,824,375
22,400 Timken Co. ................................... 868,000
46,000 USX-U.S. Steel Group, Inc. ................... 1,305,250
-----------
21,441,196
-----------
PRINT AND PUBLISHING - 4.39%
101,300 Dun & Bradstreet Corp. ....................... 6,331,250
96,100 Gannett Co., Inc. ............................ 6,799,075
18,000 McGraw-Hill Cos., Inc. ....................... 823,500
</TABLE>
See Notes to Financial Statements.
13
<PAGE> 15
<TABLE>
--------------
GROWTH AND INCOME FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
PRINT AND PUBLISHING (CONTINUED)
114,200 Moore Corp., Ltd. ............................ $ 2,155,525
27,900 New York Times Co., Class A .................. 910,238
50,000 Pitney Bowes, Inc. ........................... 2,387,500
7,600 Tribune Co. .................................. 551,950
-----------
19,959,038
-----------
DEPARTMENT STORES - 3.90%
30,400 Penney (J.C.) Co., Inc. ...................... 1,596,000
595,600 Wal-Mart Stores, Inc. ........................ 15,113,350
46,400 Woolworth Corp.* ............................. 1,044,000
-----------
17,753,350
-----------
ELECTRIC AND ELECTRONIC MACHINERY - 3.81%
134,200 General Electric Co. ......................... 11,608,300
13,000 Grainger (W.W.), Inc. ........................ 1,007,500
58,300 Intel Corp. .................................. 4,281,406
20,000 Maytag Corp. ................................. 417,500
-----------
17,314,706
-----------
TRANSPORTATION - 3.80%
28,800 AMR Corp.* ................................... 2,620,800
45,000 CSX Corp. .................................... 2,171,250
68,400 Norfolk Southern Corp. ....................... 5,796,900
30,000 Ryder System, Inc. ........................... 843,750
74,600 Union Pacific Corp. .......................... 5,212,675
49,200 Yellow Corp.* ................................ 651,900
-----------
17,297,275
-----------
TOBACCO - 3.43%
69,800 American Brands, Inc. ........................ 3,167,175
64,500 Philip Morris Cos., Inc. ..................... 6,708,000
167,400 Ust, Inc. .................................... 5,733,450
-----------
15,608,625
-----------
GENERAL MERCHANDISE - 2.96%
101,400 American Greetings Corp., Class A ............ 2,775,825
136,700 Limited, Inc. ................................ 2,939,050
81,000 Supervalu, Inc. .............................. 2,551,500
35,900 Unilever, ADR ................................ 5,209,988
-----------
13,476,363
-----------
PAPER - 2.71%
202,700 International Paper Co. ...................... 7,474,563
25,000 Mead Corp. ................................... 1,296,875
72,900 Union Camp Corp. ............................. 3,553,875
-----------
12,325,313
-----------
INSURANCE - 2.34%
32,600 Aetna Life & Casualty Co. .................... 2,330,900
64,500 Alexander & Alexander Services, Inc. ......... 1,273,875
8,100 Cigna Corp. .................................. 954,788
5,000 General Re Corp. ............................. 761,250
27,700 Marsh & Mclennan Cos., Inc. .................. 2,673,050
10,000 Torchmark Corp. .............................. 437,500
90,000 USF & G Corp. ................................ 1,473,750
23,200 U.S. Life Corp. .............................. 762,700
-----------
10,667,813
-----------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
COMMUNICATIONS - 2.26%
40,000 Alltel Corp. ................................. $ 1,230,000
18,000 American Telephone & Telegraph Corp. ......... 1,116,000
33,100 Nynex Corp. .................................. 1,572,250
120,400 Pacific Telesis Group ........................ 4,063,500
127,700 Tele-Communications, Inc., Class A* .......... 2,314,563
-----------
10,296,313
-----------
BUSINESS SERVICES - 1.85%
105,000 Automatic Data Processing, Inc. .............. 4,055,625
38,700 Caliber System, Inc. ......................... 1,315,800
57,000 Xerox Corp. .................................. 3,049,500
-----------
8,420,925
-----------
BUILDING AND CONSTRUCTION - 1.72%
120,600 Home Depot, Inc. ............................. 6,512,400
22,300 Pulte Corp. .................................. 596,525
15,000 Snap-On, Inc. ................................ 710,625
-----------
7,819,550
-----------
TRANSPORTATION EQUIPMENT - 1.51%
40,000 General Motors Corp. ......................... 2,095,000
35,300 Genuine Parts Co. ............................ 1,614,975
131,700 Navistar International Corp.* ................ 1,300,538
20,800 TRW, Inc. .................................... 1,869,400
-----------
6,879,913
-----------
MEDICAL SUPPLIES - 1.32%
10,000 Bard (C.R.), Inc. ............................ 340,000
84,200 Bausch & Lomb, Inc. .......................... 3,578,500
44,000 Baxter International, Inc. ................... 2,079,000
-----------
5,997,500
-----------
APPAREL STORES - 1.03%
81,200 Reebok International, Ltd. ................... 2,730,350
49,900 Russell Corp. ................................ 1,378,488
10,000 VF Corp. ..................................... 596,250
-----------
4,705,088
-----------
SOFTWARE - 0.99%
37,600 Microsoft Corp.* ............................. 4,516,700
-----------
FINANCIAL SERVICES - 0.72%
74,000 Salomon, Inc. ................................ 3,256,000
-----------
MANUFACTURING INDUSTRIES - 0.54%
35,600 Corning, Inc. ................................ 1,366,150
20,000 Hasbro, Inc. ................................. 715,000
10,000 Thomas & Betts Corp. ......................... 375,000
-----------
2,456,150
-----------
MACHINERY - 0.50%
15,700 Briggs & Stratton Corp. ...................... 645,663
43,000 General Signal Corp. ......................... 1,628,625
-----------
2,274,288
-----------
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 16
<TABLE>
--------------
GROWTH AND INCOME FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C>
LUMBER AND WOOD - 0.28%
29,600 Weyerhaeuser Co. ............................. $ 1,258,000
------------
CONGLOMERATES - 0.20%
50,000 Ogden Corp. .................................. 906,250
------------
TOTAL COMMON STOCKS .......................... 444,971,382
(Cost $385,486,041) ------------
INVESTMENT COMPANIES - 2.36%
5,419,634 Dreyfus Cash Management ...................... 5,419,634
5,336,722 Lehman Prime Value Money Market .............. 5,336,722
------------
TOTAL INVESTMENT COMPANIES ................... 10,756,356
(Cost $10,756,356) ------------
TOTAL INVESTMENTS - 100.13% .................................. 455,727,738
(Cost $396,242,397)** ------------
NET OTHER ASSETS AND LIABILITIES - (0.13)% ................... (618,098)
------------
TOTAL NET ASSETS - 100.00% ................................... $455,109,640
============
<FN>
- -----------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes.
ADR American Depositary Receipt
</TABLE>
See Notes to Financial Statements.
15
<PAGE> 17
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 94.22%
<S> <C> <C>
ELECTRIC, GAS AND SANITARY - 10.33%
98,700 Allwaste, Inc.* .............................. $ 456,488
75,600 American Waste Services, Inc., Class A* ...... 245,700
16,900 Aquarion Co. ................................. 418,275
67,500 Aquila Gas Pipeline Corp. .................... 877,500
39,050 Atmos Energy Corp. ........................... 1,195,906
18,400 Bangor Hydro-Electric Co. .................... 197,800
33,800 Bay State Gas Co. ............................ 942,175
55,500 Berry Petroleum Co., Class A ................. 631,313
36,500 Black Hills Corp. ............................ 907,938
102,200 Calgon Carbon Corp. .......................... 1,379,700
15,800 California Water Service Co. ................. 553,000
22,950 Cascade Natural Gas Corp. .................... 329,906
44,100 Central Hudson Gas & Electric Corp. .......... 1,378,125
82,100 Central Maine Power Co. ...................... 1,190,450
29,400 Central Vermont Public Service Corp. ......... 374,850
41,700 Chesapeake Energy Corp.* ..................... 3,747,788
9,300 Chesapeake Utilities Corp. ................... 148,800
32,500 CILCORP, Inc. ................................ 1,389,375
54,000 Commonwealth Energy System ................... 1,390,500
10,700 Compania Boliviana
De Energia Electrica, SA ..................... 419,975
22,400 Connecticut Energy Corp. ..................... 425,600
25,100 Connecticut Natural Gas Corp. ................ 561,613
57,400 Dames & Moore, Inc. .......................... 695,975
8,200 Davis Water & Waste Industries, Inc. ......... 243,950
37,800 Empire District Electric Co. ................. 652,050
27,500 Energen Corp. ................................ 608,438
37,200 Energy Ventures, Inc.* ....................... 1,209,000
8,100 Energynorth, Inc. ............................ 157,950
17,400 Environmental Elements Corp.* ................ 34,800
18,500 E'town Corp. ................................. 513,375
12,100 Green Mountain Power Corp. ................... 293,425
53,600 ICF Kaiser International, Inc.* .............. 174,200
57,100 Indiana Energy, Inc. ......................... 1,634,488
91,100 International Technology Corp.* .............. 250,525
24,200 Interstate Power Co. ......................... 777,425
26,300 Ionics, Inc.* ................................ 1,236,100
11,000 Kimmins Environmental Service Corp.* ......... 53,625
38,900 Laclede Gas Co. .............................. 870,388
70,300 Louis Dreyfus Natural Gas Corp.* ............. 1,054,500
69,600 Mid-American Waste Systems, Inc.* ............ 65,250
44,900 New Jersey Resources Corp. ................... 1,290,875
16,300 North Carolina Natural Gas Corp. ............. 448,250
19,000 Northwestern Public Service Co. .............. 510,625
23,300 NUI Corp. .................................... 416,488
63,200 OHM Corp.* ................................... 442,400
34,600 Orange & Rockland Utilities, Inc. ............ 1,271,550
32,300 Osmonics, Inc.* .............................. 726,750
14,500 Pennsylvania Enterprises, Inc. ............... 576,375
30,300 Philadelphia Suburban Corp. .................. 749,925
47,000 Public Service Co. of North Carolina, ........ 799,000
152,800 Rollins Environmental Services, Inc.* ........ 592,100
41,300 Sanifill, Inc.* .............................. 2,034,025
27,100 South Jersey Industries, Inc. ................ 575,875
19,800 Southern California Water Co. ................ 435,600
39,600 Southern Union Co.* .......................... 871,200
60,200 Southwest Gas Corp. .......................... 963,200
64,800 Southwestern Energy Co. ...................... 915,300
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
ELECTRIC, GAS AND SANITARY (CONTINUED)
9,900 St. Joseph Light & Power Co. ................. $ 274,725
27,600 TNP Enterprises, Inc. ........................ 783,150
18,000 TRC Cos., Inc.* .............................. 105,750
18,600 Tremont Corp.* ............................... 671,925
28,800 Trigen Energy Corp. .......................... 543,600
81,320 Tucson Electric Power Co.* ................... 1,097,820
68,700 United Meridian Corp.* ....................... 2,473,200
81,700 United Water Resources, Inc. ................. 1,051,888
44,700 Wahlco Environmental Systems, Inc.* .......... 27,938
60,600 Washington Energy Co. ........................ 1,196,850
65,200 Western Gas Resources, Inc. .................. 1,059,500
26,200 Yankee Energy System, Inc. ................... 569,850
31,200 Zurn Industries, Inc. ........................ 647,400
-----------
53,811,375
-----------
INSURANCE - 6.80%
35,900 Acceptance Insurance Cos., Inc.* ............. 614,788
35,400 Acordia, Inc. ................................ 1,194,750
107,400 American Annuity Group, Inc. ................. 1,396,200
17,800 American Eagle Group, Inc. ................... 82,325
35,100 American Heritage Life Investment Corp. ...... 767,813
25,500 Amvestors Financial Corp. .................... 401,625
22,100 Avemco Corp. ................................. 298,350
34,600 Blanch (E.W.) Holdings, Inc. ................. 687,675
37,400 Capital Re Corp. ............................. 1,374,450
44,200 Capitol American Financial Corp. ............. 1,110,525
39,000 Capsure Holdings Corp.* ...................... 697,125
51,200 Crawford & Co., Class A ...................... 870,400
29,200 Executive Risk, Inc. ......................... 1,116,900
36,190 Fidelity National Financial, Inc. ............ 547,374
28,900 First American Financial Corp. ............... 975,375
62,715 Fremont General Corp. ........................ 1,442,445
36,190 Frontier Insurance Group, Inc. ............... 1,248,555
35,100 Gallagher (Arthur J.) & Co. .................. 1,123,200
35,100 Guaranty National Corp. ...................... 631,800
70,000 HCC Insurance Holdings, Inc. ................. 1,575,000
36,600 Hilb, Rogal & Hamilton Co. ................... 507,825
39,800 Integon Corp. ................................ 800,975
38,500 Life Re Corp. ................................ 1,188,688
24,000 MMI Cos., Inc. ............................... 741,000
44,000 Mutual Risk Management, Ltd. ................. 1,375,000
28,800 NYMAGIC, Inc. ................................ 543,600
33,500 Orion Capital Corp. .......................... 1,708,500
55,200 Penncorp Financial Group, Inc. ............... 1,752,600
17,800 Pioneer Financial Services, Inc. ............. 295,925
42,600 Reinsurance Group of America, Inc. ........... 1,608,150
14,950 RLI Corp. .................................... 364,406
21,600 Security-Connecticut Corp. ................... 588,600
46,400 Sphere Drake Holdings, Ltd. .................. 475,600
16,100 Stewart Information Services Corp. ........... 324,013
19,456 Titan Holdings, Inc. ......................... 272,384
43,750 Vesta Insurance Group, Inc. .................. 1,460,156
30,900 Washington National Corp. .................... 795,675
28,075 Waterhouse Investors Services, Inc. .......... 1,042,284
15,000 Westbridge Capital Corp.* .................... 118,125
47,000 Zenith National Insurance Co. ................ 1,286,625
-----------
35,406,806
-----------
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 18
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
ELECTRICAL AND ELECTRONIC MACHINERY - 5.51%
12,500 Acme Electric Corp.* ......................... $ 95,313
30,600 Aeroflex, Inc.* .............................. 187,425
18,000 American Precision Industries, Inc. .......... 222,750
49,900 Augat, Inc. .................................. 954,338
26,300 Bairnco Corp. ................................ 190,675
67,310 Baldor Electric Co. .......................... 1,514,475
18,116 Bell Industries, Inc.* ....................... 303,437
67,300 Bmc Industries, Inc. ......................... 1,934,875
69,000 Checkpoint Systems, Inc.* .................... 2,371,875
24,800 Core Industries, Inc. ........................ 356,500
13,100 CTS Corp. .................................... 615,700
66,400 Dallas Semiconductor Corp. ................... 1,203,500
40,600 DDL Electronics, Inc.* ....................... 81,200
14,600 EDO Corp.* ................................... 120,450
27,800 ESCO Electronics Corp.* ...................... 316,225
16,700 Esterline Technologies Corp.* ................ 417,500
20,300 Fluke Corp. .................................. 819,613
19,800 Franklin Electronic Publishers, Inc.* ........ 396,000
50,500 Genrad, Inc.* ................................ 833,250
40,180 Harman International Industries, Inc. ........ 1,978,865
54,400 Kent Electronics Corp.* ...................... 1,700,000
24,400 Kollmorgen Corp. ............................. 359,900
32,357 Kuhlman Corp. ................................ 562,203
33,600 Lamson & Sessions Co.* ....................... 399,000
28,000 Logicon, Inc. ................................ 836,500
62,300 Magnetek, Inc.* .............................. 599,638
37,600 Marshall Industries* ......................... 1,052,800
8,034 MYR Group, Inc. .............................. 90,383
44,400 Oak Industries, Inc.* ........................ 1,315,350
27,900 Pacific Scientific Co. ....................... 439,425
29,100 Park Electrochemical Corp. ................... 582,000
8,600 Raytech Corp.* ............................... 41,925
23,500 Rex Stores Corp.* ............................ 361,313
61,000 Rexel, Inc.* ................................. 861,625
17,325 Sterling Electronics Corp.* .................. 233,888
14,200 Tech-Sym Corp.* .............................. 422,450
19,500 Three-Five Systems, Inc.* .................... 197,438
30,100 Unitrode Corp.* .............................. 583,188
6,900 Whitehall Corp.* ............................. 220,800
31,300 Wyle Laboratories ............................ 1,036,813
157,269 Zenith Electronics Corp.* .................... 1,906,887
-----------
28,717,492
-----------
BUILDING AND CONSTRUCTION - 5.42%
10,000 Ameron International Corp. ................... 395,000
18,700 AMREP Corp.* ................................. 88,825
33,000 AMRE, Inc. ................................... 721,875
21,000 Beazer Homes Usa, Inc.* ...................... 336,000
58,600 Calmat Co. ................................... 1,062,125
292,300 Campbell Resources, Inc.* .................... 365,375
17,700 Catalina Lighting, Inc.* ..................... 99,563
22,500 Cavalier Homes, Inc. ......................... 520,313
58,100 Centex Construction Products, Inc. ........... 820,663
77,000 Champion Enterprises, Inc.* .................. 1,607,375
30,100 Cleveland-Cliffs, Inc. ....................... 1,177,663
25,300 Congoleum Corp., Class A* .................... 290,950
17,500 Continental Homes Holding Corp. .............. 376,250
37,200 Dravo Corp.* ................................. 553,350
22,100 Elcor Corp. .................................. 403,325
18,000 Eljer Industries, Inc.* ...................... 186,750
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
BUILDING AND CONSTRUCTION (CONTINUED)
50,800 Falcon Building Products, Inc., Class A* ..... $ 609,600
25,400 General Physics Corp. ........................ 104,775
15,800 Hughes Supply, Inc. .......................... 549,050
10,800 International Aluminum Corp. ................. 272,700
84,900 Kaneb Services, Inc.* ........................ 275,925
81,900 Kaufman & Broad Home Corp. ................... 1,187,550
30,500 Lone Star Industries, Inc. ................... 1,025,563
48,800 MDC Holdings, Inc. ........................... 329,400
41,400 Medusa Corp. ................................. 1,283,400
22,800 Mestek, Inc.* ................................ 339,150
21,800 Morgan Productions, Ltd.* .................... 138,975
83,600 Morrison Knudsen Corp.* ...................... 94,050
22,200 M/I Schottenstein Homes, Inc.* ............... 205,350
31,600 Nortek, Inc.* ................................ 367,350
101,000 Payless Cashways, Inc.* ...................... 454,500
36,800 Ply-Gem Industries, Inc. ..................... 501,400
91,700 Premdor, Inc.* ............................... 664,825
152,500 Presley Cos., Class A* ....................... 209,688
14,100 Puerto Rican Cement Co., Inc. ................ 438,863
40,700 Robertson-Ceco Corp.* ........................ 208,588
39,500 Ryland Group, Inc. ........................... 592,500
43,700 Southdown, Inc. .............................. 1,026,950
58,700 Spartech Corp. ............................... 623,688
77,500 Standard-Pacific Corp. ....................... 561,875
36,400 Stone & Webster, Inc. ........................ 1,242,150
28,600 Texas Industries, Inc. ....................... 1,962,675
25,500 Thomas Industries, Inc. ...................... 487,688
22,500 Thor Industries, Inc. ........................ 461,250
83,900 Toll Brothers, Inc.* ......................... 1,373,863
24,190 URS Corp.* ................................... 190,496
74,500 Washington Construction Group, Inc.* ......... 763,625
20,100 Washington Homes, Inc.* ...................... 85,425
23,775 Watsco, Inc., Class B ........................ 499,275
29,000 Waxman Industries, Inc.* ..................... 130,500
-----------
28,268,064
-----------
MANUFACTURING INDUSTRIES - 5.05%
19,100 Alamo Group, Inc. ............................ 348,575
28,600 Alliant Techsystems, Inc.* ................... 1,347,775
28,800 Ameriquest Technologies, Inc.* ............... 25,200
15,800 Artra Group, Inc.* ........................... 130,350
35,700 BEC Group, Inc.* ............................. 156,188
25,100 Chart Industries, Inc. ....................... 354,538
12,800 Curtiss-Wright Corp. ......................... 691,200
40,800 Fairchild Corp., Class A* .................... 596,700
22,500 Furon Co. .................................... 556,875
25,600 Galoob (Lewis) Toys, Inc.* ................... 723,200
43,725 Graco, Inc. .................................. 885,431
41,700 Hexcel Corp.* ................................ 635,925
43,200 IMO Industries, Inc.* ........................ 248,400
21,200 Insteel Industries, Inc. ..................... 156,350
41,900 Kaydon Corp. ................................. 1,801,700
14,200 Keystone Consolidated Industries, Inc.* ...... 142,000
43,900 Mueller Industries, Inc.* .................... 1,821,850
47,500 OEA, Inc. .................................... 1,781,250
50,500 Outboard Marine Corp. ........................ 915,313
29,300 Paragon Trade Brands, Inc.* .................. 629,950
54,187 Paxar Corp.* ................................. 948,273
45,775 Rohr, Inc.* .................................. 955,553
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 19
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
MANUFACTURING INDUSTRIES (CONTINUED)
22,500 Scotsman Industries, Inc. .................... $ 452,813
19,700 Sparton Corp.* ............................... 83,725
14,300 SPS Technologies, Inc.* ...................... 1,008,150
36,700 Standex International Corp. .................. 1,045,950
17,900 Starrett (L.S.) Co., Class A ................. 465,400
34,000 Sturm Ruger & Co., Inc. ...................... 1,581,000
34,700 Talley Industries, Inc.* ..................... 299,288
7,500 TCC Industries, Inc.* ........................ 16,875
45,600 Thiokol Corp. ................................ 1,801,200
20,000 Tokheim Corp.* ............................... 192,500
12,900 Transtechnology Corp. ........................ 228,975
88,000 TYCO Toys, Inc.* ............................. 451,000
50,200 Tyler Corp.* ................................. 138,050
46,200 UNC, Inc.* ................................... 386,925
30,800 United Industrial Corp. ...................... 188,650
18,600 Watkins-Johnson Co. .......................... 509,175
21,600 Whittaker Corp.* ............................. 399,600
34,400 Wolverine Tube, Inc.* ........................ 1,204,000
-----------
26,305,872
-----------
RETAIL - 4.78%
12,700 Alexander's, Inc.* ........................... 922,338
58,400 AnnTaylor Stores Corp.* ...................... 1,182,600
94,000 Bombay Co., Inc.* ............................ 587,500
27,900 Bradlees, Inc.* .............................. 38,363
102,900 Burlington Coat Factory Warehouse Corp.* ..... 1,080,450
42,200 Caldor Corp.* ................................ 110,775
41,700 Carson Pirie Scott & Co.* .................... 1,115,475
72,300 Cash America International, Inc. ............. 469,950
51,700 Chaus (Bernard), Inc.* ....................... 168,025
79,200 Claire's Stores, Inc. ........................ 2,187,900
124,700 Cml Group, Inc. .............................. 529,975
26,400 Cole National Corp., Class A* ................ 528,000
33,200 Cole (Kenneth) Productions, Inc., Class A* ... 655,700
35,200 Discount Auto Parts, Inc.* ................... 893,200
26,900 Fabri-Centers of America, Inc., Class A* ..... 443,850
52,000 Fay's, Inc. .................................. 409,500
21,300 Frederick's of Hollywood, Inc., Class B ...... 95,850
9,700 Fuqua Enterprises, Inc.* ..................... 281,300
126,800 Furniture Brands International, Inc.* ........ 1,394,800
58,825 General Host Corp.* .......................... 161,769
26,400 Gottschalks, Inc.* ........................... 178,200
85,000 Handleman Co. ................................ 584,375
35,000 Hills Stores Co.* ............................ 310,625
27,100 Hi-Lo Automotive, Inc.* ...................... 125,338
27,100 Intertan, Inc.* .............................. 155,825
74,900 Levitz Furniture, Inc.* ...................... 346,413
13,700 Luria (L.) & Son, Inc.* ...................... 59,938
64,800 MacFrugal's Bargains-Close-Outs, Inc.* ....... 1,150,200
14,600 Martin Lawrence Limited Editions, Inc.* ...... 6,388
86,700 Musicland Stores Corp.* ...................... 281,775
17,700 Oneita Industries, Inc.* ..................... 55,313
54,450 Russ Berrie & Co., Inc. ...................... 1,000,519
80,900 Shopko Stores, Inc. .......................... 1,304,513
50,700 Smart & Final, Inc. .......................... 1,299,188
52,700 Sports Authority, Inc.* ...................... 1,725,925
49,900 Sports & Recreation, Inc.* ................... 455,338
44,800 Syms Corp.* .................................. 330,400
51,900 Unifirst Corp. ............................... 1,096,388
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
RETAIL (CONTINUED)
80,700 Value City Department Stores, Inc.* .......... $ 887,700
43,800 Venture Stores, Inc.* ........................ 284,700
-----------
24,896,381
-----------
TECHNOLOGY - 3.96%
53,100 Ameridata Technologies, Inc.* ................ 842,963
49,100 Aviall, Inc. ................................. 454,175
45,500 Banner Aerospace, Inc.* ...................... 381,063
43,500 BBN Corp.* ................................... 946,125
46,300 Bell & Howell Co.* ........................... 1,510,538
224,600 Chyron Corp.* ................................ 1,403,750
21,500 Computer Task Group, Inc. .................... 607,375
121,400 Computervision Corp.* ........................ 1,214,000
46,500 Continuum Co., Inc.* ......................... 2,697,000
27,400 CSS Industries, Inc.* ........................ 643,900
12,800 Cycare Systems, Inc.* ........................ 667,200
94,100 Data General Corp.* .......................... 1,223,300
32,000 Datapoint Corp.* ............................. 44,000
35,300 EA Industries, Inc.* ......................... 145,613
19,500 ECC International Corp.* ..................... 177,938
60,100 Gerber Scientific, Inc. ...................... 969,113
23,300 GRC International, Inc.* ..................... 894,138
56,100 National Data Corp. .......................... 1,921,425
19,800 PAR Technology Corp.* ........................ 331,650
27,000 QMS, Inc.* ................................... 148,500
35,500 Safeguard Scientifics, Inc.* ................. 2,769,000
23,300 Seitel, Inc.* ................................ 637,838
-----------
20,630,604
-----------
OIL AND GAS EXTRACTION - 3.88%
57,600 Cabot Oil & Gas Corp., Class A ............... 1,000,800
45,200 Cross Timbers Oil Co. ........................ 1,118,700
30,600 Daniel Industries, Inc. ...................... 443,700
32,000 Getty Petroleum Corp. ........................ 480,000
29,800 Giant Industries, Inc. ....................... 432,100
74,700 Global Natural Resources, Inc.* .............. 1,223,213
49,000 Goodrich Petroleum Corp.* .................... 39,813
12,400 Howell Corp. ................................. 165,850
27,600 HS Resources, Inc.* .......................... 320,850
32,600 International Colin Energy Corp.* ............ 191,525
29,100 KCS Energy, Inc. ............................. 836,625
162,000 Mesa, Inc.* .................................. 891,000
43,000 Newfield Exploration Co.* .................... 1,671,625
27,400 Nuevo Energy Co.* ............................ 883,650
59,500 Oceaneering International, Inc.* ............. 899,938
140,800 Parker Drilling Co.* ......................... 809,600
82,500 Quaker State Corp. ........................... 1,237,500
36,700 RPC Energy Services, Inc.* ................... 422,050
76,400 Snyder Oil Corp. ............................. 773,550
29,800 Stone Energy Corp.* .......................... 596,000
17,060 Swift Energy Co.* ............................ 307,080
62,300 Tesoro Petroleum Corp.* ...................... 716,450
52,900 Unit Corp.* .................................. 350,463
23,900 USX-Delhi Group .............................. 292,775
82,700 Varco International, Inc.* ................... 1,498,938
51,900 Vintage Petroleum, Inc. ...................... 1,323,450
69,000 Wainoco Oil Corp.* ........................... 215,625
24,240 Wilshire Oil Co. of Texas .................... 151,500
22,600 Wiser Oil Co. ................................ 285,325
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 20
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
OIL AND GAS EXTRACTION (CONTINUED)
19,100 World Fuel Services Corp. .................... $ 346,188
78,820 Zapata Corp.* ................................ 285,723
-----------
20,211,606
-----------
HOTELS AND LEISURE - 3.53%
83,000 Alliance Entertainment Corp.* ................ 570,625
96,400 Aztar Corp.* ................................. 1,108,600
117,800 Bally Entertainment Corp.* ................... 3,239,500
28,100 Carmike Cinemas, Inc., Class A* .............. 758,700
288,400 Cineplex Odeon Corp.* ........................ 576,800
23,100 Coastcast Corp.* ............................. 438,900
19,800 GC Companies., Inc.* ......................... 737,550
75,450 Grand Casinos, Inc.* ......................... 1,942,838
16,000 Hammons (John Q.) Hotels, Inc.* .............. 174,000
23,800 Harveys Casino Resorts ....................... 505,750
34,700 Huffy Corp. .................................. 446,763
93,125 International Family Entertainment, Class B* . 1,722,813
23,500 Jackpot Enterprises, Inc. .................... 299,625
40,030 K2, Inc.* .................................... 1,085,814
51,300 Marcus Corp. ................................. 1,288,913
77,800 Prime Hospitality Corp.* ..................... 1,283,700
126,000 Roadmaster Industries, Inc.* ................. 189,000
39,000 Showboat, Inc. ............................... 1,174,875
17,050 Sport Supply Group, Inc. ..................... 104,431
25,500 Trump Hotels & Casino Resorts, Inc.* ......... 726,750
-----------
18,375,947
-----------
BANKING - 3.47%
37,500 Centura Banks, Inc. .......................... 1,378,125
113,100 City National Corp. .......................... 1,781,325
46,200 Coast Savings Financial, Inc.* ............... 1,513,050
31,000 Colonial Bancgroup, Inc. ..................... 1,038,500
32,700 Commercial Federal Corp. ..................... 1,250,775
42,715 Downey Financial Corp. ....................... 934,391
39,700 F & M National Corp. ......................... 724,525
9,846 First Banks America, Inc.* ................... 98,460
56,600 First Commonwealth Financial Corp. ........... 1,004,650
18,626 First Republic Bancorp, Inc.* ................ 286,375
36,850 Firstbank Puerto Rico ........................ 847,550
26,800 Firstfed Financial Corp.* .................... 465,650
101,700 Glendale Federal Bank* ....................... 1,843,313
13,600 Hallwood Group, Inc.* ........................ 185,300
31,400 New York Bancorp, Inc. ....................... 800,700
59,800 North Fork Bancorp., Inc. .................... 1,562,275
47,000 PEC Israel Economic Corp.* ................... 851,875
14,700 PONCEBANK .................................... 207,638
16,100 Sterling Bancorp ............................. 177,100
65,073 Westcorp ..................................... 1,155,046
-----------
18,106,623
-----------
PRIMARY METAL INDUSTRY - 3.16%
21,600 Amcast Industrial Corp. ...................... 437,400
73,100 Birmingham Steel Corp. ....................... 1,197,013
39,900 Carpenter Technology Corp. ................... 1,276,800
75,100 Chaparral Steel Co. .......................... 985,688
18,200 Cold Metal Products, Inc.* ................... 120,575
39,050 Commercial Intertech Corp. ................... 1,005,538
38,733 Commercial Metals Co. ........................ 1,287,872
38,500 Geneva Steel Co., Class A* ................... 216,563
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
PRIMARY METAL INDUSTRY (CONTINUED)
78,700 Goldcorp, Inc., Class A* ..................... $ 1,298,550
35,700 Handy & Harman ............................... 606,900
22,600 Huntco, Inc., Class A ........................ 418,100
29,200 Imco Recycling, Inc. ......................... 525,600
131,400 Kaiser Aluminum Corp.* ....................... 1,445,400
37,300 Lukens, Inc. ................................. 890,538
39,800 Nord Resources Corp.* ........................ 184,075
73,100 Northgate Exploration, Ltd.* ................. 63,963
34,900 NS Group, Inc.* .............................. 104,700
49,100 Oregon Steel Mills, Inc. ..................... 675,125
12,000 Proler International Corp.* .................. 73,500
25,900 Reliance Steel & Aluminum Co. ................ 945,350
26,600 Todd Shipyards Corp.* ........................ 199,500
34,945 Tredegar Industries, Inc. .................... 1,057,086
92,600 WCI Steel, Inc. .............................. 486,150
107,900 Weirton Steel Corp.* ......................... 323,700
68,600 WHX Corp.* ................................... 625,975
-----------
16,451,661
-----------
TRANSPORTATION EQUIPMENT - 3.12%
40,400 AAR Corp. .................................... 823,150
56,500 Arvin Industries, Inc. ....................... 1,257,125
44,000 Brilliance China Automotive Holdings, Ltd. ... 231,000
23,000 China Tire Holdings, Ltd. .................... 207,000
89,400 China Yuchai International, Ltd. ............. 681,675
18,800 Coachmen Industries, Inc. .................... 658,000
62,500 Detroit Diesel Corp.* ........................ 1,210,938
96,000 Fruehauf Trailer Corp.* ...................... 60,000
82,400 Gencorp, Inc. ................................ 1,246,300
35,800 Greenbrier Cos., Inc. ........................ 496,725
44,500 Hayes Wheels International, Inc. ............. 1,412,875
14,100 Kysor Industrial Corp. ....................... 341,925
22,300 Matlack Systems, Inc.* ....................... 189,550
15,300 PS Group Holdings, Inc. ...................... 210,375
27,700 Skyline Corp. ................................ 692,500
52,900 Smith (A.O.) Corp. ........................... 1,322,500
31,600 SPX Corp. .................................... 774,200
33,200 Standard Motor Products, Inc. ................ 593,450
42,300 Standard Products Co. ........................ 983,475
40,575 Titan Wheel International, Inc. .............. 649,200
79,300 Westinghouse Air Brake Co. ................... 1,040,813
64,000 Winnebago Industries, Inc. ................... 528,000
22,350 Wynn's International, Inc. ................... 631,388
-----------
16,242,164
-----------
CHEMICALS AND DRUGS - 3.08%
71,800 Acuson Corp.* ................................ 1,148,800
50,300 Alpharma, Inc., Class A ...................... 999,713
37,800 Arcadian Corp. ............................... 746,550
28,100 Bindley Western Industries, Inc. ............. 470,675
27,300 Biowhittaker, Inc.* .......................... 228,638
25,000 Chemed Corp. ................................. 934,375
11,900 Desoto, Inc.* ................................ 75,863
52,100 First Mississippi Corp. ...................... 1,159,225
42,000 Foxmeyer Health Corp. ........................ 624,750
73,423 ICN Pharmaceuticals, Inc. .................... 1,707,085
22,300 Learonal, Inc. ............................... 557,500
57,300 Lilly Industries, Inc., Class A .............. 974,100
27,700 Mcwhorter Technologies, Inc.* ................ 491,675
</TABLE>
See Notes to Financial Statements.
19
<PAGE> 21
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
CHEMICALS AND DRUGS (CONTINUED)
30,689 Molecular Biosystems, Inc.* .................. $ 276,201
20,600 NCH Corp. .................................... 1,323,550
17,500 Oil-Dri Corp. of America ..................... 260,313
42,300 Pharmaceutical Resources, Inc.* .............. 211,500
45,600 Rexene Corp. ................................. 450,300
21,113 Schawk, Inc., Class A ........................ 163,626
25,300 Scott's Liquid Gold, Inc.* ................... 53,763
10,100 Sequa Corp., Class B* ........................ 499,950
140,800 Sterling Chemicals, Inc.* .................... 1,636,800
54,900 Univar Corp. ................................. 1,063,688
-----------
16,058,640
-----------
TEXTILE PRODUCTS - 3.05%
23,500 Angelica Corp. ............................... 555,188
53,800 Authentic Fitness Corp. ...................... 1,002,025
23,375 Barry (R.G.) Corp.* .......................... 333,094
18,700 Belding Heminway Co., Inc.* .................. 35,063
45,400 Brown Group, Inc. ............................ 788,825
24,700 Chic By His, Inc.* ........................... 129,675
69,400 Cone Mills Corp.* ............................ 780,750
42,300 Converse, Inc.* .............................. 179,775
61,700 Delta Woodside Industries, Inc. .............. 316,213
35,900 Dyersburg Corp. .............................. 183,988
25,600 Farah, Inc.* ................................. 188,800
29,700 Galey & Lord, Inc.* .......................... 271,013
58,000 Gear (L.A.), Inc.* ........................... 181,250
61,600 Genesco, Inc.* ............................... 477,400
35,600 Guilford Mills, Inc. ......................... 890,000
54,400 Hancock Fabrics, Inc. ........................ 598,400
82,700 Hartmarx Corp.* .............................. 516,875
15,000 He-Ro Group, Ltd.* ........................... 20,625
26,725 Johnston Industries, Inc. .................... 230,503
53,450 Kellwood Co. ................................. 982,144
5,200 Munsingwear, Inc.* ........................... 36,400
22,000 Oxford Industries, Inc. ...................... 354,750
67,600 Phillips-Van Heusen Corp. .................... 861,900
37,200 Salant Corp.* ................................ 134,850
25,300 Signal Apparel Co., Inc.* .................... 113,850
67,000 Starter Corp.* ............................... 577,875
41,600 St. John Knits, Inc. ......................... 1,856,400
21,900 Texfi Industries, Inc.* ...................... 68,438
27,800 Timberland Co., Class A* ..................... 646,350
75,700 Triarc Cos., Inc.* ........................... 870,550
75,400 Tultex Corp.* ................................ 358,150
41,325 Wolverine World Wide, Inc. ................... 1,343,063
-----------
15,884,182
-----------
MEDICAL SERVICES - 2.87%
13,400 Advocat, Inc.* ............................... 127,300
47,400 American Medical Response, Inc.* ............. 1,670,850
58,900 Coastal Healthcare Group, Inc.* .............. 404,938
6,500 Comprehensive Care Corp.* .................... 48,750
100,800 Coram Healthcare Corp.* ...................... 415,800
17,000 DVI, Inc.* ................................... 267,750
42,270 Grancare, Inc.* .............................. 840,116
29,400 Health Images, Inc. .......................... 341,775
33,900 Healthplan Services Corp.* ................... 779,700
15,800 Hospital Staffing Services, Inc.* ............ 53,325
48,400 Living Centers of America, Inc.* ............. 1,663,750
67,050 Multicare Cos., Inc.* ........................ 1,273,950
165,100 Novacare, Inc.* .............................. 1,258,888
28,900 Php Healthcare Corp.* ........................ 910,350
41,700 Regency Health Services, Inc.* ............... 474,338
47,300 Rightchoice Managed Care, Inc., Class A* ..... 585,338
37,400 Sierra Health Services, Inc.* ................ 1,178,100
16,600 United American Healthcare* .................. 174,300
31,900 United Wisconsin Services, Inc. .............. 829,400
62,600 Universal Health Services, Inc., Class b* .... 1,635,425
-----------
14,934,143
-----------
METALS AND MINING - 2.60%
93,000 Agnico-Eagle Mines, Ltd. ..................... 1,511,250
155,400 Amax Gold, Inc.* ............................. 854,700
45,600 Ashland Coal, Inc. ........................... 1,179,900
46,200 Atlas Corp.* ................................. 51,975
41,000 Brush Wellman, Inc. .......................... 779,000
32,700 Castech Aluminum Group, Inc.* ................ 482,325
25,400 Chase Brass & Copper Co., Inc.* .............. 473,075
39,400 Coeur D'alene Mines Corp. .................... 723,975
185,900 FMC Gold Co. ................................. 836,550
66,600 Glamis Gold, Ltd. ............................ 474,525
122,000 Hecla Mining Co.* ............................ 854,000
38,700 Material Sciences Corp.* ..................... 667,575
21,100 Pittston Co., Minerals Group ................. 276,938
38,630 RMI Titanium Co.* ............................ 907,805
54,900 Rouge Steel Co., Class A ..................... 1,180,350
19,100 Sinter Metals, Inc., Class A* ................ 334,250
486,872 Sunshine Mining & Refining Co.* .............. 608,590
17,600 Westmoreland Coal Co.* ....................... 61,600
71,700 Zeigler Coal Holding Co. ..................... 1,147,200
21,351 Zemex Corp.* ................................. 162,801
-----------
13,568,384
-----------
FINANCIAL SERVICES - 2.60%
74,900 Americredit Corp.* ........................... 1,170,313
47,100 American Banknote Corp.* ..................... 176,625
22,300 Atalanta Sosnoff Capital Corp. ............... 214,638
13,200 Christiana Cos., Inc.* ....................... 280,500
28,000 CMAC Investment Corp. ........................ 1,610,000
14,200 Duff & Phelps Corp. .......................... 301,750
44,000 Enhance Financial Services Group, Inc. ....... 1,232,000
72,200 Ideon Group, Inc. ............................ 974,700
51,800 Insignia Financial Group, Inc., Class A* ..... 1,411,550
71,830 National Auto Credit, Inc.* .................. 817,066
38,200 North American Mortgage Co. .................. 663,725
43,200 Phoenix Duff & Phelps Corp. .................. 324,000
56,200 Primark Corp.* ............................... 1,833,525
45,400 Student Loan Corp. ........................... 1,634,400
13,000 Thackeray Corp.* ............................. 45,500
43,200 Webb (Del) Corp. ............................. 864,000
-----------
13,554,292
-----------
FOOD AND BEVERAGE - 2.46%
39,583 Carr-Gottstein Foods Co.* .................... 168,159
20,800 Chart House Enterprises, Inc.* ............... 148,200
27,051 Chock Full O'nuts Corp.* ..................... 131,874
46,400 CKE Restaurants, Inc. ........................ 1,183,200
18,100 Cooker Restaurant Corp. ...................... 242,088
</TABLE>
See Notes to Financial Statements.
20
<PAGE> 22
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
FOOD AND BEVERAGE (CONTINUED)
10,526 Diana Corp.* ................................. $ 427,619
97,900 Foodmaker, Inc.* ............................. 844,388
16,000 GIANT Group, Ltd.* ........................... 126,000
74,900 Hudson Foods, Inc., Class A .................. 1,048,600
45,600 International Multifoods Corp. ............... 832,200
48,700 Interstate Bakeries Corp. .................... 1,302,725
16,400 Morton's Restaurant Group, Inc.* ............. 287,000
26,000 Orange Co., Inc. ............................. 208,000
27,500 Penn Traffic Co.* ............................ 233,750
26,100 Piccadilly Cafeterias, Inc. .................. 274,050
69,800 Pilgrim's Pride Corp. ........................ 628,200
37,025 Rykoff-Sexton, Inc. .......................... 532,234
27,400 Rymer Foods, Inc.* ........................... 17,125
66,400 Savannah Foods & Industries, Inc. ............ 854,900
51,400 Sbarro, Inc. ................................. 1,291,425
70,300 Sizzler International, Inc. .................. 219,688
44,000 Smucker (J.M.) Co., Class B .................. 819,500
14,200 Spaghetti Warehouse, Inc.* ................... 76,325
27,700 Super Food Services, Inc. .................... 263,150
64,900 TCBY Enterprises, Inc. ....................... 275,825
33,775 UNO Restaurant Corp.* ........................ 253,313
15,500 Volunteer Capital Corp.* ..................... 155,000
-----------
12,844,538
-----------
BUSINESS SERVICES - 2.31%
52,500 Airborne Freight Corp. ....................... 1,365,000
30,300 Barrett Resources Corp.* ..................... 901,425
25,400 Berlitz International, Inc.* ................. 539,750
58,600 Borg-Warner Security Corp.* .................. 571,350
50,100 CDI Corp.* ................................... 1,690,875
49,500 Church & Dwight Co., Inc. .................... 1,033,313
68,900 Duty Free International, Inc. ................ 1,050,725
40,400 Hunt Manufacturing Co. ....................... 600,950
45,600 ITT Educational Services, Inc.* .............. 1,316,700
16,100 Nashua Corp. ................................. 205,275
86,800 National Education Corp.* .................... 1,236,900
37,700 New England Business Service, Inc. ........... 735,150
14,200 Union Corp.* ................................. 280,450
20,925 Wackenhut Corp., Class A ..................... 515,278
-----------
12,043,141
-----------
INDUSTRIAL SERVICES - 1.95%
23,500 ABM Industries, Inc. ......................... 919,438
52,600 Advo, Inc. ................................... 545,725
35,300 Carlisle Cos., Inc. .......................... 1,875,313
44,800 Carlisle Plastics, Inc.* ..................... 296,800
37,500 Clarcor, Inc. ................................ 928,125
8,200 Continental Can Co., Inc.* ................... 119,925
43,350 Idex Corp. ................................... 1,647,300
9,900 Kerr Group, Inc.* ............................ 43,313
32,800 LSB Industries, Inc. ......................... 155,800
19,400 Manitowoc Co., Inc. .......................... 695,975
40,200 Measurex Corp. ............................... 1,175,850
37,400 Publicker Industries, Inc.* .................. 74,800
14,900 SL Industries, Inc. .......................... 135,963
38,250 U.S. Filter Corp.* ........................... 1,329,188
36,600 Worldtex, Inc.* .............................. 219,600
-----------
10,163,115
-----------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
SECURITY BROKERS AND DEALERS - 1.79%
21,600 Advest Group, Inc.* .......................... $ 218,700
31,000 Alex Brown, Inc. ............................. 1,751,500
22,400 Grubb & Ellis Co.* ........................... 95,200
30,650 Inter-Regional Financial Group, Inc. ......... 796,900
15,800 Interstate/Johnson Lane, Inc. ................ 193,550
31,200 Legg Mason, Inc. ............................. 1,006,200
22,900 Mcdonald & Co. Investments, Inc. ............. 452,275
49,350 Morgan Keegan, Inc. .......................... 653,888
44,000 Piper Jaffray Cos., Inc. ..................... 550,000
60,980 Quick & Reilly Group, Inc. ................... 1,981,850
52,025 Raymond James Financial, Inc. ................ 1,177,066
13,000 Rodman & Renshaw Capital Group, Inc.* ........ 17,875
31,800 Sherwood Group, Inc.* ........................ 361,725
10,986 Stifel Financial Corp. ....................... 83,768
-----------
9,340,497
-----------
HOME FURNISHINGS - 1.71%
22,925 Bush Industries, Inc., Class A ............... 779,450
14,500 Chromcraft Revington, Inc.* .................. 338,938
21,700 Crown Crafts, Inc. ........................... 222,425
49,900 Ekco Group, Inc. ............................. 261,975
36,200 Ethan Allen Interiors, Inc.* ................. 895,950
22,500 Fieldcrest Cannon, Inc.* ..................... 441,563
9,500 General Housewares Corp. ..................... 117,563
38,000 Libbey, Inc. ................................. 1,054,500
56,400 Mikasa, Inc.* ................................ 620,400
27,700 Oneida, Ltd. ................................. 519,375
42,600 O'sullivan Industries, Inc.* ................. 314,175
99,040 Pier 1 Imports, Inc. ......................... 1,473,220
26,900 Pillowtex Corp. .............................. 332,888
24,100 Rhodes, Inc.* ................................ 268,113
34,250 Rowe Furniture Corp. ......................... 188,375
22,600 Shelby Williams Industries, Inc. ............. 248,600
29,600 Syratech Corp.* .............................. 666,000
29,800 Tandycrafts, Inc.* ........................... 189,975
-----------
8,933,485
-----------
MEDICAL SUPPLIES - 1.56%
67,100 Ballard Medical Products ..................... 1,283,288
29,300 Cooper Cos., Inc.* ........................... 344,275
33,600 Diagnostic Products Corp. .................... 1,293,600
40,260 Elscint, Ltd.* ............................... 468,023
55,500 Genesis Health Ventures, Inc.* ............... 1,741,313
32,900 Graham-Field Health Products, Inc.* .......... 283,763
17,600 Isomedix, Inc.* .............................. 261,800
21,500 Maxxim Medical, Inc.* ........................ 368,188
78,000 Owens & Minor, Inc. .......................... 906,750
14,000 Sterile Concepts Holdings, Inc. .............. 278,250
46,800 Sunrise Medical, Inc.* ....................... 900,900
-----------
8,130,150
-----------
MACHINERY - 1.24%
16,400 Acme-Cleveland Corp. ......................... 492,000
55,900 Applied Magnetics Corp.* ..................... 586,950
33,900 Applied Power, Inc., Class A ................. 949,200
23,850 Bearings, Inc. ............................... 643,950
22,000 Brown & Sharpe Manufacturing Co. .............
Class A* ..................................... 217,250
51,500 CMI Corp., Class A* .......................... 276,813
</TABLE>
See Notes to Financial Statements.
21
<PAGE> 23
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
MACHINERY (CONTINUED)
13,100 Gleason Corp. ................................ $ 510,900
57,700 Global Industrial Technologies, Inc.* ........ 923,200
57,400 Interlake Corp.* ............................. 186,550
22,500 Katy Industries, Inc. ........................ 337,500
9,500 Monarch Machine Tool Co. ..................... 111,625
13,600 National-Standard Co.* ....................... 100,300
31,300 OEC Medical Systems, Inc.* ................... 426,463
11,470 Portec, Inc.* ................................ 114,700
26,200 Terex Corp.* ................................. 229,250
7,000 Twin Disc, Inc. .............................. 163,625
28,700 Worldcorp, Inc.* ............................. 193,725
------------
6,464,001
------------
COMMUNICATIONS - 0.99%
12,800 Aydin Corp.* ................................. 172,800
21,600 Dycom Industries, Inc.* ...................... 253,800
47,100 General Datacomm Industries, Inc.* ........... 635,850
70,600 Harte-Hanks Communications, Inc. ............. 1,959,150
19,385 Intellicall, Inc.* ........................... 106,618
49,200 Network Equipment Technologies, Inc.* ........ 1,045,500
21,700 Plantronics, Inc.* ........................... 797,475
34,800 Titan Corp.* ................................. 200,100
------------
5,171,293
------------
PRINTING AND PUBLISHING - 0.86%
114,100 American Media, Inc., Class A* ............... 599,025
35,000 CPI Corp. .................................... 577,500
34,100 Nelson (Thomas), Inc. ........................ 456,088
50,500 Playboy Enterprises, Inc., Class B* .......... 744,875
35,425 Pulitzer Publishing Co. ...................... 2,098,931
------------
4,476,419
------------
TRANSPORTATION - 0.86%
34,200 Alaska Air Group, Inc.* ...................... 936,225
16,850 International Shipholding Corp. .............. 290,663
30,100 Maritrans, Inc. .............................. 184,363
77,800 OMI Corp.* ................................... 671,025
114,000 Rollins Truck Leasing Corp. .................. 1,182,750
45,500 Teekay Shipping Corp. ........................ 1,194,375
------------
4,459,401
------------
PAPER - 0.84%
33,800 American Business Products, Inc. ............. 739,375
17,000 Corrpro Cos., Inc.* .......................... 150,875
41,600 Ennis Business Forms, Inc. ................... 473,200
41,900 Lydall, Inc.* ................................ 921,800
34,600 Pope & Talbot, Inc. .......................... 523,325
26,700 Republic Gypsum Co. .......................... 380,475
39,800 West Co., Inc. ............................... 1,194,000
------------
4,383,050
------------
ADVERTISING - 0.81%
22,500 Catalina Marketing Corp.* .................... 2,058,750
36,700 National Media Corp.* ........................ 646,838
24,900 Transmedia Network, Inc. ..................... 217,875
59,000 True North Communications, Inc. .............. 1,312,750
------------
4,236,213
------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
PACKAGING AND CONTAINERS - 0.77%
44,700 Aptargroup, Inc. ............................. $ 1,352,175
43,800 Interpool, Inc. .............................. 799,350
22,100 Sea Containers, Ltd., Class B ................ 430,950
10,200 Sun Coast Industries, Inc.* .................. 43,350
32,200 United States Can Corp.* ..................... 523,250
40,400 Zero Corp. ................................... 863,550
------------
4,012,625
------------
WHOLESALE DURABLE GOODS - 0.60%
9,700 Dynamics Corp. of America .................... 258,263
98,200 Fedders Corp. ................................ 699,675
18,800 National Presto Industries, Inc. ............. 714,400
60,700 Royal Appliance Manufacturing Co.* ........... 349,025
19,100 Toastmaster, Inc. ............................ 85,950
31,200 Toro Co. ..................................... 1,033,500
------------
3,140,813
------------
TOBACCO - 0.55%
45,900 Brooke Group, Ltd. ........................... 269,663
10,900 Culbro Corp.* ................................ 649,913
89,900 DiMon, Inc. .................................. 1,663,150
23,244 Standard Commercial Corp.* ................... 273,117
------------
2,855,843
------------
PERSONAL CARE PRODUCTS AND SERVICES - 0.55%
63,100 Jenny Craig, Inc.* ........................... 1,127,913
121,300 Playtex Products, Inc.* ...................... 1,137,188
44,100 Windmere-Durable Holding, Inc. ............... 578,813
------------
2,843,914
------------
FABRICATED METAL PRODUCTS - 0.54%
23,100 Allied Products Corp. ........................ 655,463
24,200 Ampco-Pittsburgh Corp. ....................... 281,325
16,600 Barnes Group, Inc. ........................... 848,675
21,700 Fansteel, Inc. ............................... 135,625
14,800 Hi-Shear Industries, Inc.* ................... 90,650
34,000 Quanex Corp. ................................. 803,250
------------
2,814,988
------------
CONGLOMERATES - 0.32%
14,600 Craig Corp.* ................................. 186,150
78,100 Griffon Corp.* ............................... 634,563
70,800 Metromedia International Group, Inc.* ........ 867,300
------------
1,688,013
------------
TELEVISION AND BROADCASTING - 0.30%
49,900 Bet Holdings, Inc., Class A* ................. 1,316,113
11,100 Gray Communications Systems, Inc. ............ 253,913
------------
1,570,026
------------
TOTAL COMMON STOCKS........................... 490,995,761
(Cost $392,062,054) ------------
</TABLE>
See Notes to Financial Statements.
22
<PAGE> 24
<TABLE>
--------------
SMALL COMPANY GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
--------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
U.S. GOVERNMENT OBLIGATION (A) - 0.21%
<S> <C>
$ 1,135,000 U.S. Treasury Bill
5.29%, 12/12/96 (B).................... $ 1,108,214
------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,108,214) ..................... 1,108,214
------------
<CAPTION>
SHARES
------
INVESTMENT COMPANIES - 5.28%
13,879,817 Dreyfus Cash Management Fund .......... 13,879,817
13,625,299 Lehman Prime Value Fund ............... 13,625,299
------------
TOTAL INVESTMENT COMPANIES
(Cost $27,505,116) .................... 27,505,116
------------
TOTAL INVESTMENTS - 99.71%
(Cost $420,675,384)** ................................. 519,609,091
------------
NET OTHER ASSETS AND LIABILITIES - 0.29% .............. 1,483,180
------------
NET ASSETS - 100.00% .................................. $521,092,271
============
<FN>
- -------------------------------
* Non-income producing security.
** Aggregate cost for Federal Income Tax purposes.
(A) Annualized yield at time of purchase.
(B) Security has been deposited as initial margin on open futures
contracts at June 30, 1996, The portfolio's open futures
contracts were as follows:
</TABLE>
<TABLE>
<CAPTION>
# of Opening Current Market
Contracts Contract Type Position Value
--------------------------------------------------------------
<S> <C> <C> <C>
80 September 96
Russell 2000 $14,060,725 $13,950,000
25 September 96
S&P 500 8,347,125 8,460,000
----------- -----------
$22,407,850 $22,410,000
=========== ===========
</TABLE>
See Notes to Financial Statements.
23
<PAGE> 25
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 96.68%
<S> <C> <C>
AUSTRALIA - 2.11%
21,093 Amcor Ltd. ................................... $ 143,601
9,546 Ampolex Ltd.* ................................ 35,012
10,658 Australian National Industries Ltd. .......... 8,640
46,011 Boral Ltd. ................................... 119,503
6,419 Brambles Industries Ltd. ..................... 89,321
135,771 Broken Hill Properties Co., Ltd. ............. 1,877,513
16,999 Burns Philp & Co., Ltd. ...................... 32,110
30,120 Coca-Cola Amatil Ltd. ........................ 334,966
39,837 Coles Myer Ltd. .............................. 144,855
21,036 CRA Ltd. ..................................... 323,844
27,518 CSR Ltd. ..................................... 97,245
6,153 Email Ltd. ................................... 15,981
60,536 Fosters Brewing Group Ltd. ................... 104,343
37,716 General Property Trust Units ................. 64,712
28,687 Goodman Fielder Ltd. ......................... 29,126
8,900 Hardie (James) Industries .................... 18,002
11,370 ICI Australia ................................ 99,690
6,948 Lend Lease Corp. ............................. 106,635
40,059 MIM Holdings Ltd. ............................ 51,707
98,214 National Australia Bank ...................... 908,271
7,938 Newcrest Mining .............................. 31,863
135,282 News Corp. ................................... 767,679
22,872 North Ltd. ................................... 65,705
31,500 Pacific Dunlop Ltd. .......................... 70,906
20,888 Pioneer International Ltd. ................... 60,828
19,455 QCT Resources ................................ 25,724
7,403 RGC Ltd. ..................................... 35,833
8,400 Rothmans Holdings ............................ 46,940
19,092 Santos Ltd. .................................. 66,116
3,515 Smith (Howard) ............................... 21,855
16,580 Southcorp Holdings Ltd. ...................... 41,105
2,000 Stockland Trust Group ........................ 4,565
20,286 Westfield Trust Units ........................ 36,563
128,412 Westpac Banking Corp. ........................ 569,008
75,096 WMC Ltd. ..................................... 537,851
----------
6,987,618
----------
AUSTRIA - 1.46%
100 Bank Austria AG .............................. 4,145
13,550 Bank Austria AG .............................. 1,087,813
100 Bank Austria AG, Part. Cert. ................. 3,398
7,720 Creditanstalt Bank ........................... 510,952
1,880 EA-Generali AG ............................... 557,209
5,600 Flughafen Wien AG ............................ 384,492
8,269 Oester Elektrizitat, Class A ................. 631,041
7,740 OMV AG ....................................... 783,948
75 Radex-Heraklith .............................. 2,339
100 Steyr-Daimlr-Puch* ........................... 1,540
4,000 VA Technology AG ............................. 489,903
1,833 Wienerbergr Baust ............................ 370,114
----------
4,826,894
----------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
BELGIUM - 0.89%
1,625 CBR Cimenteries .............................. $ 121,892
250 CBR Cimenteries Warrants* .................... 606
3,400 Delhaize Le Lion ............................. 169,843
3,100 Electrabel ................................... 661,975
2,000 Fortis AG .................................... 262,377
683 Generale De Banque ........................... 237,085
1,300 GPE Bruxelles Lam ............................ 162,661
652 Kredietbank .................................. 195,003
1,097 Petrofina SA ................................. 343,852
850 Royale Belge ................................. 166,587
450 Solvay ....................................... 276,142
568 Tractebel Investor International ............. 232,518
1,422 Union Miniere* ............................... 108,934
----------
2,939,475
----------
DENMARK - 2.20%
28 Aarhus Oliefabrik, Class A ................... 1,504
9 Aarhus Oliefabrik, Class B ................... 476
6,360 Carlsberg, Class A ........................... 374,099
5,205 Carlsberg, Class B ........................... 306,161
27 Dampskip Svendborg, Class B .................. 881,541
10,095 Danisco A/S New .............................. 502,573
9,847 Den Danske Bank Group AS ..................... 659,791
39 D/S 1912, Class B ............................ 884,354
1,643 FLS Industries, Class B ...................... 165,272
42 GN Store Nord ................................ 3,724
2,190 ISS Internationasl, Series B ................. 48,913
1,185 Korn-OG Fokerstof ............................ 53,539
134 Lauritzen (J) Holdings, Class B* ............. 15,307
111 NKT Holdings ................................. 5,507
7,023 Novo Nordisk A/S, Class B .................... 993,827
6,974 Ostasiatiste Kompa* .......................... 141,492
84 Radio Meter As ............................... 5,156
624 Royal Copenhagen, Class A .................... 52,662
320 SAS Danmark As* .............................. 4,365
1,280 SAS Danmark As Rights* ....................... 982
298 Sophus Berendsen, Class A .................... 39,630
3,188 Sophus Berendsen, Class B .................... 426,225
556 Superfos As .................................. 51,741
24,700 Tele/Danmark, Class B ........................ 1,236,495
9,693 Unidanmark AS, Class A ....................... 449,508
----------
7,304,844
----------
FINLAND - 0.36%
800 Americagroup, Class A ........................ 13,431
1,300 Cultor OY, Series 2 .......................... 66,596
1,500 Instrumentarium, Series B .................... 48,430
500 Kone Corp., Class B .......................... 55,640
14,606 Merita Bank* ................................. 30,497
4,100 Metra AB, Class B ............................ 183,560
11,600 Nokia OY, Class A ............................ 426,957
800 Pohjola Insurance Co., Series B .............. 13,517
750 Stockmann AB (OY), Class B ................... 38,582
14,560 UPM-Kymmene OY* .............................. 301,172
----------
1,178,382
----------
</TABLE>
See Notes to Financial Statements.
24
<PAGE> 26
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
FRANCE - 7.97%
1,850 Accor SA ..................................... $ 258,737
5,249 Air Liquide .................................. 926,818
12,037 Alcatel Alsthom .............................. 1,049,829
15,000 AXA .......................................... 820,499
14,200 Banque Nation* ............................... 498,426
1,700 BIC .......................................... 241,391
1,425 Bouygues ..................................... 158,884
1,400 Canal Plus SA ................................ 342,379
3,079 Carrefour .................................... 1,724,880
1 Carrefour Rights* ............................ 276
4,000 Casino Guich-Perr ............................ 165,110
4,000 Casino Guich-Perr Rights* .................... 6,216
498 Chargeurs SA ................................. 22,259
6,233 Cie De St Gobain ............................. 834,200
11,817 Cie De Suez .................................. 432,227
8,864 Cie Fin Paribas .............................. 523,428
50 Cie Gen Geophysique* ......................... 2,972
500 Club Mediterranee SA ......................... 44,774
1,672 Compagnie Bancaire ........................... 188,373
320 Comptoirs Modernes ........................... 144,333
500 Cpr (Cie Par Reesco) ......................... 38,655
790 Credit National .............................. 54,323
7,325 CSF (Thomson) ................................ 205,888
5,621 Danone Group ................................. 850,560
1,050 Dmc Dollfus-Mieg ............................. 46,707
1,043 Docks De France .............................. 220,833
9,418 Eaux(Ci Generale) ............................ 1,051,915
625 Ecco STE ..................................... 157,219
7,623 Elf Sanofi ................................... 571,271
1,500 Erid Beghin Say .............................. 234,844
500 Essilor International ........................ 141,606
192 Eurafrance ................................... 74,218
1,050 Finextel (Soc Fin) ........................... 15,419
200 GTM Entrepose ................................ 12,976
3,375 Havas Sa ..................................... 276,000
1,195 Imetal ....................................... 169,451
6,821 Lafarge Coppee SA ............................ 412,724
5,400 Lagardere Group .............................. 139,193
2,100 Legrand ...................................... 375,285
4,918 L'Oreal ...................................... 1,632,618
6,920 LVMH Moet Hennessy ........................... 1,641,254
5,833 Lyonaise Des Eaux ............................ 557,003
8,000 Michelin (Cgde), Class B ..................... 390,980
3,050 Moulinex* .................................... 58,297
1,350 Nord Est* .................................... 37,211
498 Pathe SA ..................................... 116,856
3,500 Pernod Ricard ................................ 224,355
3,662 Peugeot SA ................................... 490,108
1,748 Pinault Printemps Reoute ..................... 611,518
1,300 Primagaz Cie ................................. 144,189
1,150 Promodes ..................................... 331,502
23,800 Rhone-Poulenc SA ............................. 625,502
200 Sagem SA ..................................... 120,045
525 Saint Louis .................................. 139,406
9,400 Schneider SA (Ex. Spep.) ..................... 492,998
2,600 Sefimeg ...................................... 175,755
3,200 Seita ........................................ 146,695
400 Sidel ........................................ 101,708
918 Simco ........................................ 84,701
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
FRANCE (CONTINUED)
6,489 Societe Generale ............................. $ 713,425
21,667 Society National Elf Aquitaine ............... 1,593,431
310 Sodexho ...................................... 137,535
18,800 Total, Class B ............................... 1,394,273
800 Unibail SA ................................... 79,874
22,300 Union Assur De Paris* ........................ 452,663
572 Union Immob France ........................... 46,775
15,200 Usinor Sacilor* .............................. 219,227
4,300 Valeo SA Frfz ................................ 230,115
-----------
26,425,117
-----------
GERMANY - 9.74%
4,100 Adidas AG .................................... 341,411
2,040 Agiv AG ...................................... 38,464
1,999 Allianz AG Holdings .......................... 3,474,948
178 AMB Aachener & Municipal Beteil* ............. 102,908
288 AMB Aachener & Municipal Beteil, Regd* ....... 208,128
273 Asko Deut Kaufhaus ........................... 201,234
5,468 Basf AG ...................................... 1,557,268
63,240 Bayer AG ..................................... 2,224,831
23,020 Bayer Hypotheken Bank ........................ 559,265
23,980 Bayer Vereinsbank AG ......................... 671,127
393 Beiersdorf AG, Series ABC* ................... 386,768
297 Bilfinger & Berger ........................... 125,072
4,870 Continental AG ............................... 79,026
4,607 Daimler-Benz AG* ............................. 2,471,269
4,607 Daimler-Benz AG Rights ....................... 636
632 Degussa AG ................................... 214,453
44,760 Deutsche Bank AG ............................. 2,120,172
1,630 Douglas Holdings AG .......................... 64,787
39,860 Dresdner Bank AG ............................. 1,000,337
248 Fag Kugelfischer ............................. 37,148
340 Heidelberg Zement ............................ 233,198
473 Hochtief AG .................................. 211,308
791 Karstadt AG .................................. 314,916
382 Kaufhof Holdings AG .......................... 144,429
3,830 Klockner-Humb Deut* .......................... 13,713
753 Linde AG ..................................... 488,020
3,158 Lufthansa AG ................................. 447,100
50 Lufthansa AG, Non-Voting ..................... 7,046
761 MAN AG ....................................... 190,733
168 MAN AG, Non-Voting ........................... 32,670
3,280 Mannesmann AG ................................ 1,129,148
14,800 Merck Kgaa ................................... 559,082
715 Munchener Ruckers ............................ 1,460,872
1,131 Preussag AG .................................. 284,953
796 PWA Papier Waldhof ........................... 99,099
30,250 RWE AG ....................................... 1,176,502
17,840 RWE AG, Non-Voting ........................... 547,926
5,400 Sap AG ....................................... 795,381
3,600 Sap AG, Non-Voting ........................... 534,982
5,800 Schering AG .................................. 420,481
50,170 Siemens AG ................................... 2,688,893
2,734 Thyssen AG ................................... 500,230
43,690 Veba AG ...................................... 2,322,075
2,312 Viag AG ...................................... 920,463
2,393 Volkswagen AG ................................ 890,612
-----------
32,293,084
-----------
</TABLE>
See Notes to Financial Statements.
25
<PAGE> 27
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
HONG KONG - 1.71%
78,480 Bank of East Asia ............................ $ 286,930
86,000 Cathay Pacific Air ........................... 157,767
74,000 Cheung Kong Holdings ......................... 532,975
61,400 China Light & Power .......................... 278,424
57,800 Hang Seng Bank ............................... 582,442
4,600 Hong Kong Aircraft Engineering ............... 13,817
320,800 Hong Kong Telecommunications ................. 576,076
139,375 Hong Kong & China Gas ........................ 222,374
11,615 Hong Kong & China Gas Co. Warrants* .......... 3,039
20,000 Hong Kong & Shanghai Hotels .................. 34,106
130,000 Hopewell Holdings Ltd. ....................... 70,538
119,000 Hutchison Whampoa Ltd. ....................... 748,698
34,000 Hysan Developments ........................... 104,102
1,700 Hysan Developments Warrants* ................. 900
26,000 Johnson Electric Holdings .................... 58,446
7,200 Lai Sun Garment International ................ 8,651
1,613 Melco International Development .............. 448
11,000 Miramar Hotel & Investor ..................... 24,301
59,000 New World Development Co. .................... 273,638
595 Regal Hotels International ................... 160
32,258 Shun Tak Holdings ............................ 19,795
130,000 South China Morning Post ..................... 89,012
72,100 Sun Hung Kai Properties Ltd. ................. 728,870
47,000 Swire Pacific Ltd. ........................... 402,267
33,270 Tai Cheung Holdings .......................... 27,723
16,000 Television Broadcast ......................... 60,048
71,000 Wharf Holdings ............................... 254,079
17,496 Wing Lung Bank ............................... 101,262
-----------
5,660,888
-----------
ITALY - 3.94%
60,785 Assic Generali ............................... 1,401,708
139,600 Banca Commerciale Italiana - SPA ............. 280,484
18,400 Banca Pop Di Milano .......................... 91,223
54,694 BCO Ambrosiano Veneto ........................ 146,819
38,900 BCO Ambrosiano Veneto Di Risp ................ 53,543
15,400 Benetton Group ............................... 198,911
11,300 Burgo (Cartiere) SPA ......................... 61,736
1,900 Cementir SPA ................................. 1,574
198,000 Credito Italiano ............................. 231,976
56,000 Edison ....................................... 337,910
607,000 Eni SPA ...................................... 3,027,178
4,900 Falck Acc Fer Lom* ........................... 18,348
249,280 Fiat SPA ..................................... 835,025
63,400 Fiat SPA Di Risp ............................. 108,358
7,900 Impregilo SPA* ............................... 8,400
69,700 Istituto Banc San Paolo Di Risp .............. 450,132
45,500 Istituto Mobiliare SPA ....................... 379,921
303,500 Istituto Nazionale Assicurazioni ............. 452,394
14,350 Italcementi .................................. 115,141
900 Italcementi Di Risp .......................... 2,842
58,500 Italgas (Soc Ital) ........................... 218,476
700 La Rinascente SPA* ........................... 570
38,500 Magneti Marelli .............................. 54,876
42,075 Mediobanca SPA ............................... 267,197
11,400 Mondadori (AR) ............................... 86,265
471,300 Montedison SPA* .............................. 273,935
1,600 Montedison SPA Di Risp* ...................... 959
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
ITALY (CONTINUED)
300,800 Olivetti & C SPA* ............................ $ 162,276
100,700 Parmalat Finanziaria SPA* .................... 135,322
129,800 Pirelli SPA .................................. 217,187
20,900 Pirelli SPA Di Risp .......................... 22,496
29,062 Ras .......................................... 300,393
10,923 Ras Di Risp .................................. 57,004
14,000 Rinascente (La) .............................. 100,232
10,800 SAI (Soc Assic) .............................. 103,213
9,900 Sasib ........................................ 40,299
19,400 Sirti SPA .................................... 124,655
35,600 Snia Bpd ..................................... 39,874
900 Snia Bpd Di Risp ............................. 552
503,860 Telecom Italia ............................... 1,083,021
138,260 Telecom Italia Di Risp ....................... 238,556
503,860 Telecom Italia Mob ........................... 1,125,751
138,260 Telecom Italia Mob Di Risp ................... 188,501
-----------
13,045,233
-----------
JAPAN - 34.15%
7,000 Acom Co. ..................................... 273,793
4,400 Advantest .................................... 174,505
34,000 Ajinomoto Co., Inc. .......................... 406,085
10,000 Alps Electric Co. ............................ 121,260
27,000 Amada Co. .................................... 290,477
22,000 Aoki Construction ............................ 81,636
3,000 Aoyama Trading Co. ........................... 78,500
2,100 Arabian Oil Co. .............................. 98,221
124,000 Asahi Bank ................................... 1,435,794
22,000 Asahi Breweries .............................. 256,743
77,000 Asahi Chemical Industries .................... 548,990
62,000 Asahi Glass Co. .............................. 740,508
32,000 Ashikaga Bank ................................ 202,185
2,000 Autobacs Seven ............................... 193,287
227,200 Bank of Tokyo Mitsubishi Bank
(Bank of Tokyo) .............................. 5,282,204
17,000 Bank of Tokyo Mitsubishi Bank
(Mitsubishi Bank)* ........................... 393,685
59,000 Bank of Yokohama ............................. 535,232
42,000 Bridgestone Corp. ............................ 800,317
14,000 Brother Industries ........................... 85,648
44,000 Canon, Inc. .................................. 914,648
14,000 Casio Computer Co. ........................... 134,024
40,000 Chiba Bank ................................... 352,293
30,000 Chichibu Onoda Cement Co. .................... 172,044
10,000 Chiyoda Corp. ................................ 118,525
16,000 Chugai Pharmaceutical Co. .................... 156,088
16,000 Citizen Watch Co. ............................ 133,186
51,000 Cosmo Oil Co. ................................ 315,258
7,000 Credit Saison ................................ 169,126
3,000 CSK Corp. .................................... 89,167
40,000 Dai Nippon Printng ........................... 773,148
19,000 Daicel Chemical Industries ................... 116,929
42,000 Daido Steel Co. .............................. 207,546
37,000 Daiei, Inc. .................................. 445,289
5,000 Daifuku Co., Ltd. ............................ 76,585
14,000 Daiichi Pharmaceutical Co. ................... 215,716
13,000 Daikin Industries ............................ 142,230
14,000 Daimaru Inc. ................................. 97,902
</TABLE>
See Notes to Financial Statements.
26
<PAGE> 28
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
JAPAN (CONTINUED)
42,000 Dainippon Ink & Chemicals .................... $ 215,205
8,000 Dainippon Screen ............................. 71,188
7,000 Daito Trust Construction Co., Ltd. ........... 104,667
26,000 Daiwa House Industries ....................... 402,985
7,000 Daiwa Kosho Lease ............................ 74,671
71,000 Daiwa Securities Co., Ltd. ................... 912,734
27,000 Denki Kagaku Kogyo ........................... 97,482
19,000 Ebara Corp. .................................. 303,151
13,650 Eisai Co. .................................... 257,614
12,100 Fanuc ........................................ 480,993
155,000 Fuji Bank .................................... 3,335,111
27,000 Fuji Photo Film Co. .......................... 851,739
17,000 Fujikura Ltd. ................................ 140,735
25,000 Fujita Corp. ................................. 116,246
6,000 Fujita Kanko Inc. ............................ 120,348
98,000 Fujitsu ...................................... 893,496
34,000 Furukawa Electric ............................ 203,042
26,000 Gunma Bank ................................... 289,201
12,000 Gunze Ltd. ................................... 75,163
45,000 Hankyu Corp. ................................. 263,399
9,000 Hankyu Department Stores ..................... 118,160
32,000 Haseko Corp. ................................. 138,583
13,000 Higo Bank .................................... 103,709
2,000 Hirose Electriconics ......................... 123,448
178,000 Hitachi ...................................... 1,655,339
52,000 Hitachi Zosen ................................ 294,416
36,000 Hokuriku Bank ................................ 216,299
52,000 Honda Motor Co. .............................. 1,346,444
30,000 Honshu Paper Co. ............................. 212,524
5,000 House Food Corp. ............................. 94,820
6,000 Hoya Corp. ................................... 193,652
15,000 Inax Corp. ................................... 149,068
125,000 Ind Bank Japan ............................... 3,099,885
11,000 Isetan Co. ................................... 166,482
22,000 ITO Yokado Co. ............................... 1,325,839
8,000 Itochu Corp. ................................. 55,871
74,000 Itochu Corp. ................................. 516,805
12,000 Itoham Foods ................................. 91,355
95,000 Japan Air Lines Co.* ......................... 768,270
56,000 Japan Energy Corp. ........................... 207,802
9,000 JGC Corp. .................................... 118,160
42,000 Joyo Bank .................................... 318,212
16,000 Jusco Co. .................................... 523,698
51,000 Kajima Corp. ................................. 525,431
13,000 Kamigumi Co. ................................. 118,525
9,000 Kandenko Co., Ltd. ........................... 114,058
26,000 Kanebo* ...................................... 77,515
18,000 Kaneka Corp. ................................. 120,950
51,900 Kansai Electric Power ........................ 1,187,703
32,767 Kao Corp. .................................... 445,289
71,000 Kawasaki Heavy Industries .................... 359,268
30,000 Kawasaki Kisen* .............................. 101,202
174,000 Kawasaki Steel Corp. ......................... 626,633
26,750 Keihin Electric Express Railroad ............. 158,283
10,000 Kikkoman Corp. ............................... 81,600
13,120 Kinden Corp. ................................. 208,137
86,000 Kinki Nippon Railway ......................... 618,646
56,000 Kirin Brewery Co. ............................ 684,163
3,000 Kissei Pharmaceutical Co. .................... 83,970
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
JAPAN (CONTINUED)
9,000 Kokuyo Co. ................................... $ 248,629
52,000 Komatsu Ltd. ................................. 512,028
4,000 Komori Corp. ................................. 102,114
18,000 Konica Corp. ................................. 135,556
10,000 Koyo Seiko Co. ............................... 97,555
74,000 Kubota Corp. ................................. 487,794
35,000 Kumagai Gumi Co. ............................. 140,407
16,000 Kuraray Co. .................................. 179,429
6,600 Kurita Water ................................. 160,665
10,000 Kyocera Corp. ................................ 706,591
23,000 Kyowa Hakko Kogyo ............................ 220,183
15,000 Lion Corp. ................................... 89,988
5,000 Maeda Road Construction ...................... 86,159
8,000 Makita Corp. ................................. 129,830
78,000 Marubeni Corp. ............................... 426,690
19,000 Marui Co. .................................... 420,946
112,000 Matsushita Electrical Industries ............. 2,083,123
15,000 Meiji Milk Product ........................... 96,142
20,000 Meiji Seika Kaisha ........................... 123,813
31,000 Minebea Co. .................................. 260,308
117,000 Mitsubishi Chemical .......................... 539,763
83,000 Mitsubishi Corp. ............................. 1,089,701
114,000 Mitsubishi Electric Corp. .................... 794,081
69,000 Mitsubishi Estate ............................ 949,932
25,000 Mitsubishi Gas Chemical ...................... 110,092
180,000 Mitsubishi Heavy Industries .................. 1,563,983
59,000 Mitsubishi Materials ......................... 320,601
23,000 Mitsubishi Oil Co. ........................... 196,068
17,000 Mitsubishi Paper Mills ....................... 106,171
32,767 Mitsubishi Rayon ............................. 146,524
71,000 Mitsubishi Trust & Banking ................... 1,197,558
9,000 Mitsubishi Warehouse ......................... 160,829
43,000 Mitsui Engineering & Shipbuilding* ........... 130,943
43,000 Mitsui Fudosan Co. ........................... 580,226
38,000 Mitsui Marine & Fire ......................... 301,765
26,000 Mitsui Mining & Smelt ........................ 106,198
57,000 Mitsui Osk Lines* ............................ 196,442
40,000 Mitsui Toatsu Chemical ....................... 157,912
64,000 Mitsui Trust & Banking ....................... 746,890
83,000 Mitsui & Co. ................................. 751,439
25,000 Mitsukoshi ................................... 266,681
5,000 Mori Seiki Co. ............................... 100,290
12,000 Murata Manufacturing Co., Ltd. ............... 454,042
1,000 Nagase & Co. ................................. 9,482
42,000 Nagoya Railroad Co. .......................... 214,056
26,000 Nankai Electric Railway Co. .................. 164,750
82,000 NEC Corp. .................................... 889,667
39,000 New Oji Paper Co. ............................ 336,374
18,000 NGK Insulators ............................... 201,857
11,000 NGK Spark Plug Co. ........................... 122,354
23,100 Nichido Fire & Marine Insurance .............. 178,387
14,000 Nichii Co. ................................... 232,309
16,000 Nichirei Corp. ............................... 114,513
17,000 Nihon Cement Co. ............................. 125,080
19,000 Nikon Corp. .................................. 218,268
6,000 Nippon Comsys Corp. .......................... 80,962
57,000 Nippon Express Co. ........................... 556,065
40,000 Nippon Fire & Marine ......................... 260,755
28,000 Nippon Light Metal ........................... 158,787
</TABLE>
See Notes to Financial Statements.
27
<PAGE> 29
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
JAPAN (CONTINUED)
12,000 Nippon Meat Packer ........................... $ 170,676
64,000 Nippon Oil Co. ............................... 433,546
49,000 Nippon Paper Industries ...................... 306,022
1,000 Nippon Sharyo Ltd. ........................... 9,938
22,000 Nippon Sheet Glass ........................... 107,712
17,000 Nippon Shinpan Co. ........................... 120,896
10,000 Nippon Shokubai Kk Co.* ...................... 96,643
368,000 Nippon Steel Corp. ........................... 1,261,544
61,000 Nippon Yusen Kk .............................. 352,603
48,000 Nippondenso Co. .............................. 1,041,561
14,000 Nishimatsu Construction ...................... 153,171
134,000 Nissan Motor Co.* ............................ 1,188,733
12,000 Nisshinbo Industries Inc. .................... 118,160
7,000 Nissin Food Products ......................... 179,337
8,000 Nitto Denko Corp. ............................ 140,771
188,000 NKK Corp.* ................................... 569,066
105,000 Nomura Securities ............................ 2,048,659
8,000 Noritake Co. ................................. 83,150
29,000 NSK .......................................... 219,189
24,000 NTN Corp. .................................... 169,582
39,000 Obayashi Corp. ............................... 352,375
38,000 Odakyu Electric Railway ...................... 255,686
7,000 Okuma Corp.* ................................. 77,862
13,000 Okumura Corp. ................................ 108,569
14,000 Olympus Optical Co. .......................... 140,407
13,000 Omron Corp. .................................. 276,163
9,000 Onward Kashiyama Co., Ltd. ................... 146,880
18,000 Orient Corp. ................................. 118,160
4,000 Orix Corp. ................................... 148,065
131,000 Osaka Gas Co. ................................ 478,941
1,000 Oyo Corp.* ................................... 57,530
18,000 Penta Ocean Construction ..................... 121,278
9,000 Pioneer Electronic Corp. ..................... 214,166
8,000 QP Corp. ..................................... 77,315
6,000 Rohm Co. ..................................... 396,056
185,000 Sakura Bank .................................. 2,057,776
13,000 Sankyo Aluminum .............................. 76,093
23,000 Sankyo Co. ................................... 595,543
12,000 Sanwa Shutter Corp. .......................... 112,690
104,000 Sanyo Electric Co. ........................... 634,346
17,000 Sapporo Breweries ............................ 159,644
13,000 Sato Kogyo Co. ............................... 79,649
6,000 Secom Co. .................................... 396,056
5,700 Sega Enterprises ............................. 266,080
8,000 Seino Transportion Co. ....................... 126,184
11,000 Seiyu ........................................ 139,404
29,000 Sekisui Chemical Co., Ltd. ................... 354,299
37,000 Sekisui House ................................ 421,676
20,000 77th Bank .................................... 198,757
59,000 Sharp Corp. .................................. 1,032,809
2,000 Shimachu Co. ................................. 59,263
7,000 Shimano Inc. ................................. 125,089
41,000 Shimizu Corp. ................................ 452,310
17,850 Shin-Etsu Chemical Co. ....................... 341,762
19,000 Shionogi & Co. ............................... 163,182
21,000 Shiseido Co. ................................. 268,049
43,000 Shizuoka Bank ................................ 552,782
57,000 Showa Denko Kk* .............................. 175,654
5,000 Skylark Co., Ltd. ............................ 105,305
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
JAPAN (CONTINUED)
3,000 SMC Corp. .................................... $ 231,944
17,000 Snow Brand Milk .............................. 115,471
19,200 Sony Corp. ................................... 1,262,127
168,000 Sumitomo Bank ................................ 3,247,221
84,000 Sumitomo Chemical ............................ 400,542
56,000 Sumitomo Corp. ............................... 497,295
37,000 Sumitomo Electric Industries ................. 529,624
9,000 Sumitomo Forestry ............................ 133,751
63,000 Sumitomo Heavy Industries* ................... 275,133
35,000 Sumitomo Marine & Fire Insurance ............. 304,746
174,000 Sumitomo Metal Industries .................... 533,034
29,000 Sumitomo Metal Mining ........................ 250,917
23,000 Sumitomo Osaka Cement Co., Ltd. .............. 111,979
53,000 Taisei Corp. ................................. 375,943
22,000 Taisho Pharmaceutical Co. .................... 475,376
11,000 Takara Shuzo Co. ............................. 112,325
7,000 Takara Standard Co. .......................... 80,415
14,000 Takashimaya Co. .............................. 216,992
49,000 Takeda Chemical Industries ................... 866,691
51,000 Teijin ....................................... 276,665
14,000 Teikoku Oil Co. .............................. 95,987
45,000 Tobu Railway Co. ............................. 294,991
700 Toho Co. ..................................... 123,813
26,500 Tohoku Electric Power ........................ 591,941
109,000 Tokai Bank ................................... 1,411,177
82,000 Tokio Marine & Fire Insurance ................ 1,091,524
9,000 Tokyo Broadcasting ........................... 159,188
8,000 Tokyo Dome Corp. ............................. 161,194
72,000 Tokyo Electric Power ......................... 1,824,921
8,000 Tokyo Electron ............................... 232,674
150,000 Tokyo Gas Co. ................................ 547,038
8,000 Tokyo Steel Manufacturing Ltd. ............... 156,818
5,000 Tokyo Style Co. .............................. 87,070
22,000 Tokyotokeiba Co. ............................. 98,485
60,000 Tokyu Corp. .................................. 456,777
37,000 Toppan Printing Co., Ltd. .................... 539,745
73,000 Toray Industries Inc. ........................ 503,166
31,000 Tosoh Corp.* ................................. 137,644
11,000 Tostem Corp. ................................. 323,938
17,000 Toto ......................................... 255,741
10,000 Toyo Seikan Kaisha ........................... 348,281
35,000 Toyobo Co. ................................... 131,152
15,000 Toyoda Automatic Loom Work Ltd. .............. 299,504
200,000 Toyota Motor Corp. ........................... 4,996,285
43,000 UBE Industries ............................... 163,482
3,000 Uni Charm Corp., Ltd. ........................ 77,136
25,000 Unitika* ..................................... 75,446
9,000 Uny Co. ...................................... 178,061
8,000 Wacoal Corp. ................................. 108,678
10,000 Yamaguchi Bank ............................... 169,582
11,000 Yamaha Corp. ................................. 181,526
64,000 Yamaichi Securities Co. ...................... 438,798
17,000 Yamanouchi Pharmaceutical Co., Ltd. .......... 368,886
19,000 Yamato Transport ............................. 223,465
11,000 Yamazaki Baking Co. .......................... 203,590
58,000 Yasuda Trust & Banking ....................... 366,461
13,000 Yokogawa Electric Corp. ...................... 130,378
------------
113,215,453
------------
</TABLE>
See Notes to Financial Statements.
28
<PAGE> 30
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
MALAYSIA - 0.84%
100,000 Amsteel Corp. ................................ $ 75,344
80,000 Amsteel Corp. Bonus Issue .................... 60,275
130,000 Golden Hope Plants ........................... 202,145
22,500 Highlands & Lowland .......................... 39,856
63,000 Kuala Lumpur Kepg ............................ 159,063
32,000 Malayan Bank Berhad .......................... 307,786
92,400 Malaysia Mining Corp. ........................ 93,317
39,600 Malaysia Mining Corp. Rights* ................ 8,253
58,000 Multi Purpose Holdings ....................... 93,442
10,800 Perlis Plantations ........................... 41,551
10,000 Resorts World ................................ 57,309
51,000 Selangor Properties .......................... 62,134
11,500 Shell Refinery (M) ........................... 32,492
82,440 Sime Darby Bhd ............................... 227,969
71,000 Telekom Malaysia ............................. 631,683
109,000 Tenaga Nasional .............................. 458,674
32,326 United Engineers* ............................ 224,123
-----------
2,775,416
-----------
NETHERLANDS - 3.44%
15,578 ABN/AMRO Holdings NV ......................... 835,949
6,287 Ahold NV ..................................... 340,689
4,383 Akzo Nobel NV ................................ 525,094
38,430 Elsevier NV .................................. 583,100
2,936 Getronics NV ................................. 65,016
2,670 Heineken NV .................................. 596,574
1,920 IHC Caland NV ................................ 94,483
34,153 Ing Groep NV ................................. 1,018,387
3,862 KLM .......................................... 123,531
5,120 Knp Bt (Kon) NV .............................. 122,678
1,262 Koninklijke Hoogovens NV ..................... 46,725
22,400 Koninklijke Ptt Nederland* ................... 847,721
964 OCE V/D Grinten NV ........................... 102,105
1,100 Pakhoed NV Kon ............................... 28,676
16,840 Philips Electronic ........................... 547,530
25,847 Royal Dutch Petroleum ........................ 3,991,426
1,100 Stad Rotterdam ............................... 39,826
249 Stork NV ..................................... 7,148
7,731 Unilever NV (UN) ............................. 1,118,678
3,179 Wolters Kluwer ............................... 361,111
-----------
11,396,447
-----------
NEW ZEALAND - 0.19%
109,100 Brierley Investment Ltd. ..................... 103,142
48,581 Carter Holt Harvey ........................... 110,826
400 Ceramco Corp., Ltd. .......................... 504
5,100 Fisher & Paykel .............................. 16,352
15,233 Fletcher Challenge
(Forest Division Shares) ..................... 18,888
14,111 Fletcher Challenge (Building Shares)* ........ 27,551
14,111 Fletcher Challenge (Energy Shares)* .......... 31,128
28,222 Fletcher Challenge (Paper Shares)* ........... 54,522
8,200 Lion Nathan Ltd. ............................. 21,403
56,765 Telecom Corp. of New Zealand ................. 237,993
3,487 Wilson & Horton .............................. 23,172
-----------
645,481
-----------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
NORWAY - 1.50%
400 Aker AS, Series A ............................ $ 7,666
5,400 Bergesen DY AS, Class A ...................... 112,217
1,400 Bergesen DY AS, Class B ...................... 28,231
1,000 Dyno Industrier .............................. 22,166
15,650 Hafslund Nycomed, Series A* .................. 112,021
10,326 Hafslund Nycomed, Series B* .................. 65,965
8,650 Kvaerner AS, Series A ........................ 365,502
2,200 Leif Hoegh & Co. ............................. 38,268
53,150 Norsk Hydro AS ............................... 2,601,730
1,000 Norske Skogsindust, Class A .................. 30,171
15,650 Nycomed ASa, Series A ........................ 225,246
10,326 Nycomed Asa, Series B ........................ 143,056
10,200 Orkla-Borregaard AS .......................... 536,980
13,600 Transocean Drilling* ......................... 352,753
71,600 Uni Storabrand AS* ........................... 321,831
1,200 Unitor AS .................................... 19,396
-----------
4,983,199
-----------
SINGAPORE - 1.19%
5,600 City Developments ............................ 43,643
11,000 DBS Land ..................................... 37,720
12,750 Development Bank Singapore ................... 158,986
12,000 Fraser & Neave ............................... 124,128
29,600 Haw Par Brothers International Ltd ........... 67,528
2,960 Haw Par Brothers
International Ltd Rights* .................... 0
11,000 Inchcape Berhad .............................. 35,071
2,000 Jurong Shipyard .............................. 10,131
6,000 Keppel Corp. ................................. 50,161
40,400 Malayan Banking Bhd .......................... 686,957
500 Malayan Banking Bhd .......................... 4,747
60,750 Natsteel Ltd. ................................ 120,515
59,000 Neptune Orient Lines ......................... 61,866
24,166 Overseas Chinese Bank ........................ 282,505
2,417 Overseas Chinese Bank Rights* ................ 19,416
1,000 Overseas Union Enterprises ................... 5,455
1,000 Shangri-La Hotel ............................. 3,500
51,000 Singapore Airlines ........................... 538,385
6,000 Singapore Press Holdings Ltd. ................ 62,064
10,320 Singapore Press (Foreign) .................... 202,534
471,000 Singapore Telecom ............................ 1,254,716
7,000 Straits Trading Co ........................... 18,350
8,000 United Industrial Corp. ...................... 8,162
7,350 United Overseas Bank ......................... 70,300
52,000 United Overseas Land ......................... 91,367
-----------
3,958,207
-----------
SPAIN - 2.23%
300 Acerinox SA .................................. 31,238
1,650 Aguila SA (El)* .............................. 10,296
7,550 Autopistas Cesa .............................. 87,742
17,547 Banco Bilbao Vizcaya ......................... 710,306
9,271 Banco Central Hispano Americano .............. 188,731
12,432 Banco Santander SA ........................... 579,852
800 Corporacion Mapfre SA ........................ 40,808
9,500 Corp. Bancaria De Espana ..................... 414,200
675 Corp. Financial Alba ......................... 56,122
3,400 Dragados Y Construction ...................... 44,949
</TABLE>
See Notes to Financial Statements.
29
<PAGE> 31
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
SPAIN (CONTINUED)
400 Ebro Agricolas ............................... $ 4,617
100 Empresa Nacl Celulosa ........................ 1,420
20,570 Empresa Nacl Electricid ...................... 1,281,906
700 Ercros SA* ................................... 409
752 Fom Const Y Contra ........................... 62,173
2,856 Gas Natural Sdg SA ........................... 599,219
73,724 Iberdrola SA ................................. 756,153
236 Inm Metrovacesa .............................. 8,072
820 Portland Valderriv ........................... 53,724
100 Prosegur Compania ............................ 3,510
23,798 Repsol SA .................................... 826,919
2,498 Sarrio SA .................................... 8,164
1,106 Tabacalera SA, Series A ...................... 55,640
74,575 Telefonica De Espana SA ...................... 1,372,713
9,566 Union Electrica Fenosa SA .................... 61,480
5,400 Uralita ...................................... 50,542
200 Urbis SA* .................................... 841
2,361 Vallehermoso SA .............................. 46,590
1,221 Viscofan Envolturas .......................... 19,285
-----------
7,377,621
-----------
SWEDEN - 1.70%
3,900 ABB AB, Series A ............................. 413,188
2,850 ABB AB, Series B ............................. 301,086
28,650 Astra AB, Series A ........................... 1,265,087
5,000 Astra AB, Series B ........................... 217,769
8,250 Atlas Copco AB, Series A ..................... 153,550
500 Atlas Copco AB, Series B ..................... 9,306
3,700 Electrolux AB, Series B ...................... 185,963
54,600 Ericsson (Lm) Tel, Series B .................. 1,176,676
300 Esselte AB, Series B ......................... 6,126
630 Nackebro Fastighets SA* ...................... 7,785
4,400 Scancem Ab ................................... 138,588
12,000 Skandia Foersaekrings Ab ..................... 317,385
100 Skanska AB, Series B ......................... 3,534
10,100 Skf Froeher AB, Series A ..................... 239,734
9,300 Skf Froeher AB, Series B ..................... 215,840
14,500 Stora Kopparbergs, Series A .................. 191,206
3,250 Stora Kopparbergs, Series B .................. 42,857
3,800 Svenska Cellulosa, Series B .................. 78,171
6,300 Svenska Handelsbanken, Series B .............. 124,852
7,960 Trelleborg AB, Series B ...................... 99,568
19,000 Volvo (Ab), Series B ......................... 432,373
-----------
5,620,644
-----------
SWITZERLAND - 4.94%
450 ABB AG ....................................... 556,549
390 Adia SA ...................................... 97,840
40 Alusuisse-Lonza Holdings ..................... 32,917
225 Alusuisse-Lonza Holdings, Regd ............... 185,696
245 Ciba Geigy AG ................................ 297,138
1,310 Ciba Geigy AG, Regd .......................... 1,596,105
9,620 CS Holding AG ................................ 914,623
5 Danzas Holding AG ............................ 1,019
30 Fischer (Georg) AG ........................... 34,635
65 Grand Magasin Jelmoli* ....................... 36,872
325 Grand Magasin Jelmoli, Regd* ................. 35,833
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
SWITZERLAND (CONTINUED)
436 Holderbk Fn Glarus ........................... $ 348,343
455 Interdiscount Holdings* ...................... 3,272
260 Merkur Holdings AG, Regd ..................... 54,632
1,955 Nestle SA, Regd .............................. 2,232,026
82 Roche Holdings AG ............................ 1,018,743
361 Roche Holdings AG (Venusscheine) ............. 2,752,982
200 Sandoz AG (Br) ............................... 227,381
1,850 Sandoz AG, Regd .............................. 2,115,103
15 Schindler Holdings AG ........................ 15,939
15 Schindler Holdings AG, Warrants* ............. 27
1,095 Schw Bankgesellschaft ........................ 1,071,693
715 Schw Ruckversicher ........................... 734,056
4,380 Schweiz Bankverein, Regd ..................... 864,353
81 SGS Holding .................................. 193,822
157 Sulzer AG .................................... 100,850
25 Sulzer AG .................................... 14,980
220 Swissair, Regd* .............................. 212,856
2,350 Zurich Versicherun ........................... 640,239
-----------
16,390,524
-----------
UNITED KINGDOM - 16.12%
86,437 Abbey National ............................... 726,595
10,902 Amec ......................................... 16,601
1,100 Amstrad ...................................... 3,265
17,957 Anglian Water ................................ 165,457
12,736 Argos Plc .................................... 147,631
69,423 Argyll Group ................................. 374,307
43,404 Arjo Wiggins Apple ........................... 118,696
55,700 Associated British Food ...................... 334,936
96,806 Barclays Bank ................................ 1,162,726
171 Barratt Development .......................... 675
67,527 Bass ......................................... 848,831
192,201 BAT Industries ............................... 1,496,197
19,014 BBA Group .................................... 90,995
21,051 BICC ......................................... 101,398
25,587 Blue Circle Industries ....................... 143,126
29,348 BOC Group .................................... 421,353
58,068 Boots Co. .................................... 522,409
24,797 Bowthorpe .................................... 173,383
37,736 Bpb Industries ............................... 187,043
16,269 British Aerospace ............................ 246,974
58,702 British Airways .............................. 505,310
268,116 British Gas .................................. 749,878
28,409 British Land Co. ............................. 186,720
346,421 British Petroleum ............................ 3,038,530
104,800 British Sky Broadcasting Group ............... 716,489
94,916 British Steel ................................ 242,606
388,266 British Telecommunications ................... 2,087,377
242,639 BTR .......................................... 955,727
171 Burmah Castrol Plc ........................... 2,707
160,216 Cable & Wireless ............................. 1,060,501
60,674 Cadbury Schweppes ............................ 479,861
13,652 Calor Group .................................. 51,546
63,237 Caradon Plc .................................. 212,237
43,043 Carlton Communications ....................... 346,436
31,787 Chubb Security ............................... 159,532
35,426 Coats Viyella ................................ 94,677
800 Cobham Group ................................. 7,900
</TABLE>
See Notes to Financial Statements.
30
<PAGE> 32
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
26,173 Commercial Union ............................. $ 235,872
7,798 Costain Group* ............................... 4,725
21,004 Courtaulds ................................... 138,703
3,534 Courtaulds Textile ........................... 19,713
4,808 De La Rue .................................... 44,451
6,722 Delta ........................................ 36,661
9,988 East Midlands Electric ....................... 80,856
32,398 Electrocomponents ............................ 192,299
23,334 English China Clay ........................... 93,904
21,296 FKI .......................................... 56,253
30,294 Forte Plc .................................... 174,162
32,269 General Accident ............................. 327,412
185,160 General Electric Co. ......................... 998,325
10,421 GKN .......................................... 159,979
215,838 Glaxo Wellcome Plc ........................... 2,905,975
51,800 Granada Group ................................ 693,797
128,900 Grand Metropolitan ........................... 855,217
2,100 Great Portland Est ........................... 5,319
68,616 Great University Stores ...................... 697,266
142 Guardian Royal Exchange Plc .................. 547
118,461 Guinness ..................................... 861,423
34,493 Hammerson Plc ................................ 194,551
329,519 Hanson ....................................... 924,173
15,900 Harrison & Crosfield ......................... 33,599
27,842 Hepworth ..................................... 125,024
52,581 HSBC Holdings ................................ 823,540
110,505 HSBC Holdings Ord Hkd 10 ..................... 1,692,990
18,984 IMI .......................................... 104,273
51,551 Imperial Chemical Industries ................. 631,188
10,804 Johnson Matthey .............................. 104,417
40,879 Kingfisher ................................... 410,960
42,369 Ladbroke Group ............................... 118,499
800 Laing (John) ................................. 3,903
3,446 Laird Group .................................. 25,005
34,945 Land Securities .............................. 338,274
40,782 Lasmo ........................................ 111,526
20,323 Legal & General Group ........................ 211,256
3,101 Lex Service .................................. 18,069
315,818 Lloyds Tsb Group, Plc ........................ 1,545,763
6,952 London Electricity ........................... 67,621
40,060 Lonrho ....................................... 115,154
35,924 Lucas Industries ............................. 126,429
177,926 Marks & Spencer .............................. 1,300,752
8,306 Marley ....................................... 16,649
13,249 MEPC ......................................... 83,580
13,726 Mercury Asset Management ..................... 205,810
9,189 Meyer International .......................... 54,399
40,669 National Grid Group Plc. ..................... 107,742
70,966 National Power ............................... 573,389
11,226 Next ......................................... 98,204
5,532 Northern Electric ............................ 48,995
13,207 Ocean Group .................................. 93,781
500 Oxford Instruments ........................... 3,838
29,178 P & O ........................................ 220,337
32,273 Pearson ...................................... 332,968
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
UNITED KINGDOM (CONTINUED)
30,100 Pilkington ................................... $ 84,653
19,318 Provident Financial .......................... 138,075
116,404 Prudential Corp. ............................. 734,327
16,186 Racal Electronics ............................ 76,707
50,900 Rank Organisation ............................ 393,861
17,647 Redland ...................................... 109,954
34,498 Reed International ........................... 577,305
110,855 Reuters Holdings ............................. 1,341,801
24,358 Rexam Plc .................................... 128,303
6,254 RMC Group .................................... 98,438
77,521 Rolls Royce .................................. 269,813
49,137 Royal Bank Scotland Group .................... 376,401
34,809 Royal Insurance .............................. 215,263
65,300 RTZ Corp. .................................... 966,944
77,228 Rugby Group .................................. 131,997
110,523 Sainsbury (J) ................................ 650,860
11,679 Schroders .................................... 245,890
37,361 Scot & Newcastle ............................. 382,560
36,383 Scottish Power ............................... 171,857
83,403 Sears ........................................ 128,296
16,318 Sedgwick Group ............................... 34,990
23,972 Slough Estates ............................... 81,945
168,196 Smithkline Beecham Plc* ...................... 1,799,350
12,464 Smiths Industries ............................ 136,341
13,330 Southern Electric ............................ 147,885
7,608 Southern Water ............................... 118,450
25,910 St. James Place Cap .......................... 48,713
39,582 T & N ........................................ 86,104
51,452 Tarmac ....................................... 88,740
23,280 Tate & Lyle .................................. 165,670
55,683 Taylor Woodrow ............................... 134,972
131,668 Tesco ........................................ 601,482
17,099 Thames Water ................................. 150,643
26,219 Thorn Emi .................................... 730,860
30,233 TI Group ..................................... 252,731
23,478 Transport Development Group .................. 71,866
9,334 Unigate ...................................... 57,723
52,387 Unilever ..................................... 1,041,903
32,669 United Biscuits .............................. 108,629
20,014 United Utilities Plc ......................... 168,550
11,415 Vickers ...................................... 42,923
186,368 Vodafone Group ............................... 693,541
23,173 Williams Holdings ............................ 122,061
27,922 Willis Corroon Group ......................... 67,681
31,929 Wilson (C) Holdings .......................... 81,363
30,094 Wimpey (George) .............................. 69,673
29,792 Wolseley ..................................... 210,623
57,869 Zeneca Group ................................. 1,279,518
------------
53,448,384
------------
TOTAL COMMON STOCKS .......................... 320,472,911
(Cost $260,729,369) ------------
</TABLE>
See Notes to Financial Statements.
31
<PAGE> 33
<TABLE>
-------------
INTERNATIONAL GROWTH FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
PREFERRED STOCKS - 0.24%
<S> <C> <C>
AUSTRIA - 0.07%
4,233 Creditanstalt Bank ........................... $ 214,370
------------
AUSTRALIA - 0.09%
59,070 News Corp. ................................... 288,246
------------
GERMANY - 0.04%
527 Volkswagen AG ................................ 144,375
------------
ITALY - 0.04%
82,200 Fiat SPA ..................................... 144,243
------------
TOTAL PREFERRED STOCKS ....................... 791,234
(Cost $711,658) ------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
INVESTMENT COMPANIES - 2.49%
4,408,192 Dreyfus Cash Management ...................... $ 4,408,191
3,871,317 Lehman Prime Value ........................... 3,871,317
------------
TOTAL INVESTMENT COMPANIES ................... 8,279,508
(Cost $8,279,508) ------------
TOTAL INVESTMENTS - 99.41%................................... 329,543,653
(Cost $269,720,535)** ------------
NET OTHER ASSETS AND LIABILITIES - 0.59% .................... 1,940,423
------------
NET ASSETS - 100.00% ........................................ $331,484,076
============
<FN>
- ----------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes.
</TABLE>
See Notes to Financial Statements.
32
<PAGE> 34
<TABLE>
------------- INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 94.25%
<S> <C> <C>
CHEMICALS AND DRUGS - 12.93%
31,500 Abbott Laboratories .......................... $ 1,370,250
4,500 Air Products & Chemicals, Inc. ............... 259,875
1,200 Alberto-Culver Co., Class B .................. 55,650
3,500 ALZA Corp.* .................................. 95,813
25,000 American Home Products Corp. ................. 1,503,125
10,600 Amgen, Inc.* ................................. 572,400
5,400 Avon Products, Inc. .......................... 243,675
5,000 Biomet, Inc.* ................................ 71,875
20,200 Bristol-Myers Squibb Co. ..................... 1,817,965
2,100 Clorox Co. ................................... 186,113
5,800 Colgate Palmolive Co. ........................ 491,550
4,000 Dial Corp. ................................... 114,500
10,400 Dow Chemical Co. ............................. 790,400
22,100 duPont (E.I.) deNemours & Co. ................ 1,748,663
3,200 Eastman Chemical Co. ......................... 194,800
6,137 Engelhard Corp. .............................. 141,151
17,732 Gillette Co. ................................. 1,106,034
2,200 Goodrich (B.F.) Co. .......................... 82,225
4,000 Grace (W.R.) & Co. ........................... 283,500
2,800 Great Lakes Chemical Corp. ................... 174,300
4,400 Hercules, Inc. ............................... 243,100
4,400 International Flavors & Fragrances, Inc. ..... 209,550
53,400 Johnson & Johnson ............................ 2,643,300
22,000 Lilly (Eli) & Co. ............................ 1,430,000
49,200 Merck & Co., Inc. ............................ 3,179,550
23,000 Monsanto Co. ................................. 747,500
6,300 Morton International, Inc. ................... 234,675
2,900 Nalco Chemical Co. ........................... 91,350
25,300 Pfizer, Inc. ................................. 1,805,788
20,130 Pharmacia & Upjohn, Inc. ..................... 893,269
7,800 PPG Industries, Inc. ......................... 380,250
5,900 Praxair, Inc. ................................ 249,275
27,300 Procter & Gamble Co. ......................... 2,474,063
2,900 Rohm & Haas Co. .............................. 181,975
14,600 Schering-Plough Corp. ........................ 916,150
2,100 Sigma-Aldrich Corp. .......................... 112,350
5,500 Union Carbide Corp. .......................... 218,625
10,800 Warner-Lambert Co. ........................... 594,000
-----------
27,908,634
-----------
ELECTRIC AND ELECTRONIC MACHINERY - 9.89%
4,400 Advanced Micro Devices, Inc.* ................ 59,950
5,100 Amdahl Corp.* ................................ 54,825
5,200 Apple Computer, Inc. ......................... 109,200
7,100 Applied Materials, Inc.* ..................... 216,550
3,100 Cabletron Systems, Inc.* ..................... 212,738
21,800 Cisco Systems, Inc.* ......................... 1,234,425
10,600 Compaq Computer Corp.* ....................... 522,050
1,600 Data General Corp.* .......................... 20,800
6,000 Digital Equipment Corp.* ..................... 270,000
9,100 EMC Corp.* ................................... 169,488
8,900 Emerson Electric Co. ......................... 804,338
66,600 General Electric Co. ......................... 5,760,900
4,900 General Instrument Corp.* .................... 141,488
2,200 Grainger (W.W.), Inc. ........................ 170,500
20,400 Hewlett-Packard Co. .......................... 2,032,340
5,400 Honeywell, Inc. .............................. 294,300
32,800 Intel Corp. .................................. 2,408,750
22,700 International Business Machines Corp ......... 2,247,290
4,700 ITT Corp. .................................... 311,375
4,700 ITT Industries, Inc. ......................... 118,088
5,400 LSI Logic Corp.* ............................. 140,400
4,600 Maytag Corp. ................................. 96,025
8,200 Micron Technology, Inc. ...................... 212,175
23,500 Motorola, Inc. ............................... 1,477,558
5,300 National Semiconductor Corp.* ................ 82,150
15,700 Novell, Inc.* ................................ 217,838
1,800 Perkin-Elmer Corp. ........................... 86,850
1,900 Raychem Corp. ................................ 136,563
1,000 Shared Medical Systems Corp. ................. 64,250
6,500 Silicon Graphics, Inc.* ...................... 156,000
7,600 Sun Microsystems, Inc.* ...................... 447,450
5,000 Tandem Computers, Inc.* ...................... 61,875
1,400 Tektronix, Inc. .............................. 62,650
2,400 Teledyne, Inc. ............................... 86,700
7,500 Texas Instruments, Inc. ...................... 374,063
6,500 3COM Corp.* .................................. 297,375
7,300 Unisys Corp.* ................................ 52,013
2,900 Whirlpool Corp. .............................. 143,913
-----------
21,355,243
-----------
ENERGY - 9.14%
3,700 Amerada Hess Corp. ........................... 198,413
19,800 Amoco Corp. .................................. 1,433,020
2,700 Ashland, Inc. ................................ 106,988
6,400 Atlantic Richfield Co. ....................... 758,400
6,000 Baker Hughes, Inc. ........................... 197,250
5,000 Burlington Resources, Inc. ................... 215,000
26,000 Chevron Corp. ................................ 1,534,000
4,450 Coastal Corp. ................................ 185,788
7,800 Dresser Industries, Inc. ..................... 230,100
10,000 Enron Corp. .................................. 408,750
2,900 ENSERCH Corp. ................................ 63,075
49,500 Exxon Corp. .................................. 4,300,313
4,900 Halliburton Co. .............................. 271,950
1,100 Helmerich & Payne, Inc. ...................... 40,288
2,200 Kerr-Mcgee Corp. ............................. 133,925
1,400 Louisiana Land & Exploration Co. ............. 80,675
2,300 Mcdermott International, Inc. ................ 48,013
15,800 Mobil Corp. .................................. 1,771,575
</TABLE>
See Notes to Financial Statements.
33
<PAGE> 35
<TABLE>
------------- INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
ENERGY (CONTINUED)
12,700 Occidental Petroleum Corp. ................... $ 314,325
4,400 Oryx Energy Co.* ............................. 71,500
6,400 Panenergy Corp. .............................. 210,400
2,000 Pennzoil Co. ................................. 92,500
10,400 Phillips Petroleum Co. ....................... 435,500
3,600 Rowan Cos., Inc.* ............................ 53,100
21,400 Royal Dutch Petroleum Co., ADR ............... 3,290,250
3,872 Santa Fe Energy Resources, Inc.* ............. 45,980
9,600 Schlumberger, Ltd. ........................... 808,800
3,700 Sonat, Inc. .................................. 166,500
3,274 Sun Co., Inc. ................................ 99,448
7,100 Tenneco, Inc. ................................ 362,988
10,500 Texaco, Inc. ................................. 880,688
9,800 Unocal Corp. ................................. 330,750
11,500 USX-Marathon Group ........................... 231,438
2,300 Western Atlas, Inc.* ......................... 133,975
4,300 Williams Cos., Inc. .......................... 212,850
-----------
19,718,515
-----------
COMMUNICATIONS - 8.31%
19,700 Airtouch Communications, Inc.* ............... 556,525
7,500 Alltel Corp. ................................. 230,625
63,456 American Telephone & Telegraph Corp. ......... 3,934,272
22,100 Ameritech Corp. .............................. 1,312,188
2,437 Andrew Corp.* ................................ 130,989
17,400 Bell Atlantic Corp. .......................... 1,109,250
39,600 Bellsouth Corp. .............................. 1,678,050
9,600 Comcast Corp. Special, Class A ............... 177,600
4,900 DSC Communications Corp.* .................... 147,613
38,600 GTE Corp. .................................... 1,727,350
1,700 Harris Corp. ................................. 103,700
27,000 MCI Communications Corp. ..................... 691,875
10,100 Northern Telecom, Ltd. ....................... 549,188
17,000 NYNEX Corp. .................................. 807,500
17,100 Pacific Telesis Group ........................ 577,125
24,300 SBC Communications, Inc. ..................... 1,196,775
3,300 Scientific-Atlanta, Inc. ..................... 51,150
17,500 Sprint Corp. ................................. 735,000
26,000 Tele-Communications, Inc.
TCI Group Series ............................. 471,250
3,800 Tellabs, Inc.* ............................... 254,125
18,800 U.S. West, Inc., Communications Group ........ 599,250
18,800 U.S. West, Inc., Media Group* ................ 343,100
14,400 Viacom Inc., Class B* ........................ 559,800
-----------
17,944,300
-----------
FOOD AND BEVERAGE - 7.54%
10,100 Albertson's, Inc.$ ........................... 417,888
10,085 Anheuser-Busch Cos., Inc. .................... 756,375
21,146 Archer-Daniels-Midland Co. ................... 404,417
3,000 Brown-Forman Corp., Class B .................. 120,000
9,900 Campbell Soup Co. ............................ 697,950
100,000 Coca-Cola Co. ................................ 4,887,500
9,525 ConAgra, Inc. ................................ 432,197
1,600 Coors (Adolph) Co., Class B .................. 28,600
5,800 CPC International, Inc. ...................... 417,600
6,800 Darden Restaurants, Inc. ..................... 73,100
1,600 Fleming Cos., Inc. ........................... 23,000
6,300 General Mills, Inc. .......................... 343,350
2,500 Giant Food, Inc., Class A .................... 89,688
1,600 Great Atlantic & Pacific Tea Co., Inc. ....... 52,600
14,700 Heinz (H.J.) Co. ............................. 446,513
3,300 Hershey Foods Corp. .......................... 242,138
8,700 Kellogg Co. .................................. 637,275
4,800 Kroger Co.* .................................. 189,600
1,000 Luby's Cafeterias, Inc. ...................... 23,500
27,700 McDonald's Corp. ............................. 1,294,975
62,800 PepsiCo, Inc. ................................ 2,221,550
3,300 Pioneer Hi-Bred International, Inc. .......... 174,488
5,700 Quaker Oats Co. .............................. 194,513
4,280 Ralston Purina Co. ........................... 274,455
2,300 Ryan's Family Steak Houses, Inc.* ............ 21,275
19,300 Sara Lee Corp. ............................... 624,838
14,900 Seagram Co., Ltd. ............................ 501,013
1,800 Shoney's, Inc.* .............................. 19,575
7,300 Sysco Corp. .................................. 250,025
4,400 Wendy's International, Inc. .................. 81,950
4,500 Whitman Corp. ................................ 108,563
4,600 Wrigley (Wm.) Jr. Co. ........................ 232,300
-----------
16,282,811
-----------
BANKING - 6.72%
5,000 Ahmanson (H.F.) & Co. ........................ 135,000
18,244 Banc One Corp. ............................... 620,296
4,800 Bank of Boston Corp. ......................... 237,600
8,200 Bank of New York Co., Inc. ................... 420,250
14,724 Bankamerica Corp. ............................ 1,115,343
3,100 Bankers Trust New York Corp. ................. 229,013
4,100 Barnett Banks, Inc. .......................... 250,100
6,300 Boatmen's Bancshares, Inc. ................... 252,788
17,358 Chase Manhattan Corp. ........................ 1,225,909
19,500 Citicorp ..................................... 1,611,188
4,900 Comerica, Inc. ............................... 218,663
8,900 Corestates Financial Corp. ................... 342,650
4,000 Fifth Third Bancorp .......................... 216,000
5,200 First Bank System, Inc. ...................... 301,600
12,753 First Chicago Nbd Corp. ...................... 498,961
11,525 First Union Corp. ............................ 701,584
9,807 Fleet Financial Group, Inc. .................. 426,605
2,500 Golden West Financial Corp. .................. 140,000
5,800 Great Western Financial Corp. ................ 138,475
9,400 Keycorp ...................................... 364,250
5,650 Mellon Bank Corp. ............................ 322,050
7,500 Morgan (J.P.) & Co., Inc. .................... 634,688
8,900 National City Corp. .......................... 312,613
11,857 Nationsbank Corp. ............................ 979,685
13,900 Norwest Corp. ................................ 484,763
</TABLE>
See Notes to Financial Statements.
34
<PAGE> 36
<TABLE>
------------- INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
BANKING (CONTINUED)
13,700 PNC Bank Corp. ............................... $ 407,575
2,200 Republic New York Corp. ...................... 136,950
9,200 Suntrust Banks, Inc. ......................... 340,400
6,000 U.S. Bancorp ................................. 216,750
6,800 Wachovia Corp. ............................... 297,500
3,900 Wells Fargo & Co. ............................ 931,613
-----------
14,510,862
-----------
ELECTRIC, GAS AND SANITARY - 4.19%
7,400 American Electric Power Co., Inc. ............ 315,425
6,300 Baltimore Gas & Electric Co. ................. 178,763
8,500 Browning-Ferris Industries, Inc. ............. 246,500
6,100 Carolina Power & Light Co. ................... 231,800
8,200 Central & South West Corp. ................... 237,800
6,635 Cinergy Corp. ................................ 212,320
2,200 Columbia Gas System, Inc. .................... 114,675
9,400 Consolidated Edison Co. of New York .......... 274,950
4,000 Consolidated Natural Gas Co. ................. 209,000
4,600 Cooper Industries, Inc. ...................... 190,900
6,950 Dominion Resources, Inc. ..................... 278,000
6,200 DTE Energy Co. ............................... 191,425
8,200 Duke Power Co. ............................... 420,250
900 Eastern Enterprises .......................... 29,925
17,700 Edison International ......................... 311,963
9,100 Entergy Corp. ................................ 258,213
7,400 FPL Group, Inc. .............................. 340,400
4,900 General Public Utilities Corp. ............... 172,725
10,500 Houston Industries, Inc. ..................... 258,563
6,200 Niagara Mohawk Power Corp. ................... 48,050
2,200 Nicor, Inc. .................................. 62,425
5,300 Noram Energy Corp. ........................... 57,638
2,900 Northern States Power Co. .................... 143,188
6,500 Ohio Edison Co. .............................. 142,188
1,200 Oneok, Inc. .................................. 30,000
3,500 Pacific Enterprises .......................... 103,688
16,900 Pacific Gas & Electric Co. ................... 392,925
11,300 Pacificorp ................................... 251,425
4,999 Pall Corp. ................................... 120,601
8,800 Peco Energy Co. .............................. 228,800
1,500 Peoples Energy Corp. ......................... 50,250
6,700 PP & L Resources, Inc. ....................... 158,288
9,800 Public Service Enterprise Group, Inc. ........ 268,275
26,500 Southern Co. ................................. 652,563
9,000 Texas Utilities Co. .......................... 384,750
8,600 Unicom Corp. ................................. 239,725
4,400 Union Electric Co. ........................... 177,100
19,300 WMX Technologies, Inc. ....................... 632,075
7,700 Worldcom, Inc.* .............................. 426,388
----------
9,043,939
----------
INSURANCE - 3.78%
4,800 Aetna Life & Casualty Co. .................... 343,200
1,900 Alexander & Alexander Services, Inc. ......... 37,525
17,899 Allstate Corp. ............................... 816,642
8,200 American General Corp. ....................... 298,275
18,880 American International Group, Inc. ........... 1,862,040
4,300 AON Corp. .................................... 218,225
7,000 Chubb Corp. .................................. 349,125
3,100 Cigna Corp. .................................. 365,413
3,300 General Re Corp. ............................. 502,425
4,700 ITT Hartford Group, Inc. ..................... 250,275
3,150 Jefferson-Pilot Corp. ........................ 162,619
4,100 Lincoln National Corp. ....................... 189,625
4,700 Loews Corp. .................................. 370,713
2,900 Marsh & Mclennan Cos., Inc. .................. 279,850
4,100 Providian Corp. .............................. 175,788
5,400 Safeco Corp. ................................. 191,025
3,600 St. Paul Cos., Inc. .......................... 192,600
3,100 Torchmark Corp. .............................. 135,625
2,682 Transamerica Corp. ........................... 219,254
19,134 Travelers Group, Inc. ........................ 872,989
3,100 UNUM Corp. ................................... 192,975
4,700 USF & G Corp. ................................ 76,963
1,425 U.S. Life Corp. .............................. 46,847
-----------
8,150,018
-----------
TRANSPORTATION EQUIPMENT - 2.66%
11,300 Allied signal, Inc. .......................... 645,513
15,219 Chrysler Corp. ............................... 943,578
1,700 Cummins Engine Co., Inc. ..................... 68,638
4,300 Dana Corp. ................................... 133,300
3,300 Eaton Corp. .................................. 193,463
2,500 Echlin, Inc. ................................. 94,688
46,900 Ford Motor Co. ............................... 1,518,388
29,800 General Motors Corp. ......................... 1,560,775
4,850 Genuine Parts Co. ............................ 221,888
3,220 Navistar International Corp.* ................ 31,798
1,625 Paccar, Inc. ................................. 79,625
2,800 TRW, Inc. .................................... 251,650
-----------
5,743,304
-----------
DEPARTMENT STORES - 2.47%
3,100 Dayton-Hudson Corp. .......................... 319,688
4,800 Dillard Department Stores, Inc., Class A ..... 175,200
8,100 Federated Department Stores, Inc.* ........... 276,413
19,500 Kmart Corp. .................................. 241,313
9,900 May Department Stores Co. .................... 433,125
1,600 Mercantile Stores Co., Inc. .................. 93,800
9,000 Penney (J.C.) Co., Inc. ...................... 472,500
15,575 Sears Roebuck & Co. .......................... 757,334
3,100 TJX Cos., Inc. ............................... 104,625
91,500 Wal-Mart Stores, Inc. ........................ 2,321,813
5,700 Woolworth Corp.* ............................. 128,250
-----------
5,324,061
-----------
</TABLE>
See Notes to Financial Statements.
35
<PAGE> 37
<TABLE>
------------- INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
FINANCIAL SERVICES - 2.45%
19,300 American Express Co. ......................... $ 861,263
2,300 Beneficial Corp. ............................. 129,088
4,500 Block (H & R), Inc. .......................... 146,813
6,733 Dean Witter Discover & Co. ................... 385,464
7,200 Federal Home Loan Mortgage Corp. ............. 615,600
43,600 Federal National Mortgage Association ........ 1,460,600
5,500 Green Tree Financial Corp. ................... 171,875
4,100 Household International, Inc. ................ 311,600
8,850 MBNA Corp. ................................... 252,225
7,000 Merrill Lynch & Co., Inc. .................... 455,875
6,200 Morgan Stanley Group, Inc. ................... 304,575
4,500 Salomon, Inc. ................................ 198,000
----------
5,292,978
----------
SOFTWARE - 2.13%
2,000 Autodesk, Inc. ............................... 59,750
9,675 Computer Associates International, Inc. ...... 689,344
23,600 Microsoft Corp.* ............................. 2,834,950
25,950 Oracle Corp.* ................................ 1,023,403
----------
4,607,447
----------
METALS AND MINING - 2.09%
8,950 Alcan Aluminum, Ltd .......................... 272,975
7,100 Aluminum Co. of America ...................... 407,363
4,500 Armco, Inc.* ................................. 22,500
1,800 Asarco, Inc. ................................. 49,725
14,100 Barrick Gold Corp. ........................... 382,463
4,700 Bethlehem Steel Corp.* ....................... 55,813
5,000 Crown Cork & Seal Co., Inc. .................. 225,000
4,000 Cyprus Amax Minerals Co. ..................... 90,500
4,800 Echo Bay Mines, Ltd. ......................... 51,600
8,000 Freeport-Mcmoran
Copper & Gold, Inc., Class B ................. 255,000
5,900 Homestake Mining Co. ......................... 101,038
5,000 Inco, Ltd., Class A .......................... 161,250
2,100 Inland Steel Industries, Inc. ................ 41,213
16,700 Minnesota Mining & Manufacturing Co. ......... 1,152,300
3,709 Newmont Mining Corp. ......................... 183,132
3,700 Nucor Corp. .................................. 187,313
3,000 Phelps Dodge Corp. ........................... 187,125
9,500 Placer Dome, Inc. ............................ 226,813
2,700 Reynolds Metals Co. .......................... 140,738
5,662 Santa Fe Pacific Gold Corp. .................. 79,976
1,300 Timken Co. ................................... 50,375
3,440 USX-U.S. Steel Group, Inc. ................... 97,610
3,925 Worthington Industries, Inc. ................. 81,934
----------
4,503,756
----------
AEROSPACE AND DEFENSE - 2.07%
13,700 Boeing Co. ................................... 1,193,613
2,700 General Dynamics Corp. ....................... 167,400
7,994 Lockheed Martin Corp. ........................ 671,496
9,000 McDonnell Douglas Corp. ...................... 436,500
2,100 Northrop Grumman Corp. ....................... 143,063
9,700 Raytheon Co. ................................. 500,763
8,700 Rockwell International Corp. ................. 498,075
3,600 Textron, Inc. ................................ 287,550
4,900 United Technologies Corp. .................... 563,500
----------
4,461,960
----------
TOBACCO - 1.89%
7,200 American Brands, Inc. ........................ 326,700
33,500 Philip Morris Cos., Inc. ..................... 3,484,000
7,700 UST, Inc. .................................... 263,725
----------
4,074,425
----------
GENERAL MERCHANDISE - 1.67%
3,200 American Greetings Corp., Class A ............ 87,600
4,100 Circuit City Stores, Inc. .................... 148,113
11,400 GAP, Inc. .................................... 366,225
3,116 Harcourt General, Inc. ....................... 155,800
1,695 Jostens, Inc. ................................ 33,476
10,778 Limited, Inc. ................................ 231,727
900 Longs Drug Stores Corp. ...................... 40,163
3,500 Nordstrom, Inc. .............................. 155,750
2,600 Pep Boys-Manny, Moe & Jack ................... 88,400
8,350 Price/Costco, Inc.* .......................... 180,569
3,600 Rite Aid Corp. ............................... 107,100
3,000 Supervalu, Inc. .............................. 94,500
2,764 Tandy Corp. .................................. 130,945
10,850 Toys 'R' Us, Inc.* ........................... 309,225
6,400 Unilever NV, ADR ............................. 928,800
9,800 Walgreen Co. ................................. 328,300
6,400 Winn-Dixie Stores, Inc. ...................... 226,400
----------
3,613,093
----------
PRINT AND PUBLISHING - 1.66%
4,744 Alco Standard Corp. .......................... 214,666
6,300 American Stores Co. .......................... 259,875
3,500 Deluxe Corp. ................................. 124,250
6,500 Donnelley (R.R.) & Sons Co. .................. 226,688
4,100 Dow Jones & Co., Inc. ........................ 171,175
6,765 Dun & Bradstreet Corp. ....................... 422,813
5,600 Gannett Co., Inc. ............................ 396,200
1,300 Harland (John H.) Co. ........................ 32,013
4,200 McGraw-Hill Cos., Inc. ....................... 192,150
1,200 Heredith Corp. ............................... 50,100
4,300 Moore Corp., Ltd. ............................ 81,163
4,100 New York Times Co., Class A .................. 133,763
6,000 Pitney Bowes, Inc. ........................... 286,500
15,360 Time Warner, Inc. ............................ 602,880
4,800 Times Mirror Co., Class A .................... 208,800
2,500 Tribune Co. .................................. 181,563
----------
3,584,599
----------
</TABLE>
See Notes to Financial Statements.
36
<PAGE> 38
<TABLE>
-------------
INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
BUILDING AND CONSTRUCTION - 1.50%
1,600 Armstrong World Industries, Inc. ............. $ 92,200
3,600 Black & Decker Corp. ......................... 139,050
1,200 Centex Corp. ................................. 37,350
4,000 Champion International Corp. ................. 167,000
1,400 Cincinnati Milacron, Inc. .................... 33,600
2,000 Fleetwood Enterprises, Inc. .................. 62,000
3,500 Fluor Corp. .................................. 228,813
1,500 Foster Wheeler Corp. ......................... 67,313
1,500 Giddings & Lewis, Inc. ....................... 24,375
19,021 Home Depot, Inc. ............................. 1,027,134
4,900 Illinois Tool Works, Inc. .................... 331,363
1,340 Kaufman & Broad Home Corp. ................... 19,430
6,800 Lowe's Cos., Inc. ............................ 245,650
6,700 Masco Corp. .................................. 202,675
2,100 National Service Industries, Inc. ............ 82,163
2,100 Owens-Corning Fiberglas Corp.* ............... 90,300
1,200 Pulte Corp. .................................. 32,100
3,600 Sherwin-Williams Co. ......................... 167,400
1,700 Snap-On, Inc. ................................ 80,538
3,800 Stanley Works ................................ 113,050
----------
3,243,504
----------
TRANSPORTATION - 1.41%
3,000 AMR Corp.* ................................... 273,000
5,700 Burlington Northern Santa Fe Corp. ........... 460,988
8,308 CSX Corp. .................................... 400,861
3,300 Conrail, Inc. ................................ 219,038
1,900 Consolidated Freightways, Inc. ............... 40,138
2,200 Delta Air Lines, Inc. ........................ 182,600
11,900 Laidlaw, Inc., Class B ....................... 120,488
5,200 Norfolk Southern Corp. ....................... 440,700
3,400 Ryder System, Inc. ........................... 95,625
6,100 Southwest Airlines Co. ....................... 177,663
8,200 Union Pacific Corp. .......................... 572,975
2,700 Usair Group, Inc.* ........................... 48,600
1,200 Yellow Corp.* ................................ 15,900
----------
3,048,576
----------
BUSINESS SERVICES - 1.41%
11,400 Automatic Data Processing, Inc. .............. 440,325
1,700 Caliber System, Inc. ......................... 57,800
2,000 Ceridian Corp.* .............................. 101,000
2,300 Computer Sciences Corp.* ..................... 171,925
7,400 CUC International, Inc.* ..................... 262,700
2,900 Ecolab, Inc. ................................. 95,700
2,400 Federal Express Corp.* ....................... 196,800
8,900 First Data Corp. ............................. 708,663
2,000 Intergraph Corp.* ............................ 24,250
2,500 Safety-Kleen Corp. ........................... 43,750
4,150 Service Corp. International .................. 238,625
12,867 Xerox Corp. .................................. 688,385
----------
3,029,923
----------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
MANUFACTURING INDUSTRIES - 1.34%
8,936 AMP, Inc. .................................... $ 358,557
2,900 Case Corp. ................................... 139,200
9,100 Corning, Inc. ................................ 349,213
1,300 Crane Co. .................................... 53,300
13,600 Eastman Kodak Co.1,057,400
3,800 Hasbro, Inc. ................................. 135,850
11,047 Mattel, Inc. ................................. 316,220
1,900 Millipore Corp. .............................. 79,563
900 Outboard Marine Corp. ........................ 16,313
1,889 Polaroid Corp. ............................... 86,186
1,600 Thomas & Betts Corp. ......................... 60,000
6,100 Tyco International, Ltd. ..................... 248,575
----------
2,900,377
----------
MACHINERY - 1.15%
7,300 Bay Networks, Inc.* .......................... 187,975
1,300 Briggs & Stratton Corp. ...................... 53,463
7,900 Caterpillar, Inc. ............................ 535,225
10,400 Deere & Co. .................................. 416,000
4,800 Dover Corp. .................................. 221,400
2,300 EG & G, Inc. ................................. 49,163
1,600 FMC Corp.* ................................... 104,400
2,022 General Signal Corp. ......................... 76,583
1,922 Harnischfeger Industries, Inc. ............... 63,907
4,500 Ingersoll-Rand Co. ........................... 196,875
400 Nacco Industries, Inc., Class A .............. 22,150
3,150 Parker-Hannifin Corp. ........................ 133,481
1,200 Trinova Corp. ................................ 40,050
1,740 Varity Corp.* ................................ 83,738
15,600 Westinghouse Electric Corp. .................. 292,500
----------
2,476,910
----------
PAPER - 1.06%
2,300 Avery-Dennison Corp. ......................... 126,213
1,300 Ball Corp. ................................... 37,375
2,200 Bemis Co., Inc. .............................. 77,000
11,024 International Paper Co. ...................... 406,510
3,500 James River Corp. of Virginia ................ 92,313
11,070 Kimberly-Clark Corp. ......................... 855,158
2,100 Mead Corp. ................................... 108,938
4,046 Stone Container Corp. ........................ 55,633
2,400 Temple-Inland, Inc. .......................... 112,200
3,000 Union Camp Corp. ............................. 146,250
4,350 Westvaco Corp. ............................... 129,956
2,400 Willamette Industries, Inc. .................. 142,800
----------
2,290,346
----------
</TABLE>
See Notes to Financial Statements.
37
<PAGE> 39
<TABLE>
-------------
INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<S> <C> <C>
MEDICAL SUPPLIES - 0.99%
2,700 Allergan, Inc. ............................... $ 105,975
2,200 Bard (C.R.), Inc. ............................ 74,800
2,500 Bausch & Lomb, Inc. .......................... 106,250
11,000 Baxter International, Inc. ................... 519,750
2,600 Becton Dickinson & Co. ....................... 208,650
6,900 Boston Scientific Corp.* ..................... 310,500
3,300 Mallinckrodt Group, Inc. ..................... 128,288
9,200 Medtronic, Inc. .............................. 515,200
3,000 St. Jude Medical, Inc.* ...................... 100,500
2,400 U.S. Surgical Corp. .......................... 74,400
------------
2,144,313
------------
HOSPITAL MANAGEMENT - 0.98%
3,800 Beverly Enterprises, Inc.* ................... 45,600
17,733 Columbia/Hca Healthcare Corp. ................ 946,499
1,900 Community Psychiatric Centers* ............... 18,050
6,800 Humana, Inc.* ................................ 121,550
2,700 Manor Care, Inc. ............................. 106,313
8,500 Tenet Healthcare Corp.* ...................... 181,688
7,000 United Healthcare Corp. ...................... 353,500
6,100 U.S. Healthcare, Inc. ........................ 335,500
------------
2,108,700
------------
AMUSEMENT AND RECREATION - 0.82%
4,100 Brunswick Corp. .............................. 82,000
26,900 Disney (Walt) Co. ............................ 1,691,338
------------
1,773,338
------------
APPAREL STORES - 0.62%
800 Brown Group, Inc. ............................ 13,900
4,400 Charming Shoppes, Inc. ....................... 31,075
3,200 Fruit of the Loom, Inc., Class A* ............ 81,600
3,200 Liz Claiborne, Inc. .......................... 110,800
4,500 Melville Corp. ............................... 182,250
5,700 Nike, Inc., Class B .......................... 585,675
3,400 Reebok International, Ltd. ................... 114,325
1,700 Russell Corp. ................................ 46,963
2,100 Stride Rite Corp. ............................ 17,325
2,700 VF Corp. ..................................... 160,988
------------
1,344,901
------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
LUMBER AND WOOD - 0.39%
2,008 Boise Cascade Corp. .......................... $ 73,543
3,900 Georgia-Pacific Corp. ........................ 276,900
4,600 Louisiana-Pacific Corp. ...................... 101,775
1,200 Potlatch Corp. ............................... 46,950
8,150 Weyerhaeuser Co. ............................. 346,375
------------
845,543
------------
HOTELS - LEISURE - 0.32%
2,000 Bally Entertainment Corp.* ................... 55,000
4,400 Harrah's Entertainment, Inc.* ................ 124,300
2,100 Hilton Hotels Corp. .......................... 236,250
5,200 Marriott International, Inc. ................. 279,500
------------
695,050
------------
RUBBER - 0.31%
3,600 Cooper Tire & Rubber Co. ..................... 80,100
6,100 Goodyear Tire & Rubber Co. ................... 294,325
6,300 Rubbermaid, Inc. ............................. 171,675
2,600 Tupperware Corp.* ............................ 109,850
------------
655,950
------------
HOME FURNISHINGS - 0.12%
6,800 Newell Co. ................................... 208,250
900 Springs Industries, Inc., Class A ............ 45,450
------------
253,700
------------
MOTION PICTURES - 0.10%
1,550 King World Productions, Inc. ................. 56,381
2,100 Knight-Ridder, Inc. .......................... 152,250
------------
208,631
------------
CONGLOMERATES - 0.07%
1,700 Johnson Controls, Inc. ....................... 118,150
2,100 Ogden Corp. .................................. 38,063
------------
156,213
------------
ADVERTISING - 0.07%
3,300 Interpublic Group of Companies, Inc. ......... 154,688
------------
TOTAL COMMON STOCKS .......................... 203,450,608
(Cost $141,152,314) ------------
</TABLE>
See Notes to Financial Statements.
38
<PAGE> 40
<TABLE>
-------------
INDEX EQUITY FUND
THE KENT PORTFOLIO OF INVESTMENTS (CONTINUED)
FUNDS JUNE 30, 1996 (UNAUDITED)
-------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
U.S. GOVERNMENT OBLIGATION (A) - 0.22%
<S> <C> <C>
$ 495,000 U.S. Treasury Bill
5.29%, 12/12/96 (B) .......................... $ 483,318
------------
TOTAL U.S. GOVERNMENT OBLIGATION ............. 483,318
(Cost $483,318) ------------
<CAPTION>
SHARES
------
INVESTMENT COMPANIES - 5.32%
5,679,025 Dreyfus Cash Management ...................... 5,679,025
5,792,356 Lehman Prime Value Money Market .............. 5,792,356
------------
TOTAL INVESTMENT COMPANIES ................... 11,471,381
(Cost $11,471,381) ........................... ------------
TOTAL INVESTMENTS - 99.79%.................................... 215,405,307
(Cost $153,107,013)** ------------
NET OTHER ASSETS AND LIABILITIES - 0.21% ..................... 453,572
------------
NET ASSETS - 100.00%.......................................... $215,858,879
============
<FN>
- --------------------------------------
* Non-income producing security
** Aggregate Cost for Federal income tax purposes.
ADR American Depositary Receipt
(A) Annualized yield at time of purchase.
(B) Security has been deposited as initial margin on open
future contracts. At June 30, 1996, the portfolio's open
future contracts were as follows:
# of Opening Current Market
Contracts Contract Type Position Value
----------------------------------------------------------
28 September 1996
S & P 500 $9,348,780 $9,475,200
</TABLE>
See Notes to Financial Statements.
39
<PAGE> 41
- --------
THE KENT
FUNDS
- --------
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
GROWTH SMALL
AND COMPANY INTERNATIONAL INDEX
EQUITY GROWTH GROWTH EQUITY
------ ------ ------ ------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost: .......................... $396,422,397 $420,675,384 $269,720,535 $153,107,013
Net unrealized appreciation(depreciation) ..... 59,485,341 98,933,707 59,823,118 62,298,294
------------ ------------ ------------ ------------
Total investments at value .................. 455,727,738 519,609,091 329,543,653 215,405,307
Cash ............................................ 21,866 17,107 -- 15,505
Receivable for investments sold ................. 2,516,566 599,901 41 91,826
Receivable for Trust shares sold ................ 244,964 366,043 198,946 356,399
Interest and dividend receivables ............... 980,083 433,293 1,445,269 --
Dividend reclaim receivable ..................... -- -- 549,696 --
Receivable on daily variation margin ............ -- 210,875 -- 52,500
------------ ------------ ------------ ------------
Total Assets ................................ 459,491,217 521,236,310 331,737,605 215,921,537
------------ ------------ ------------ ------------
LIABILITIES:
Payable for investments purchased ............... 4,220,467 -- -- --
Payable for Trust shares repurchased ............ 59,994 29,638 31,264 7,873
Payable for foreign currency (Cost $33,726) ..... -- -- 31,547 --
Advisory fee payable (Note 3) ................... 35,025 39,778 27,291 --
Payable to custodian ............................ -- -- 49,931 --
Accrued expenes and other payables .............. 44,839 28,534 77,993 43,775
------------ ------------ ------------ ------------
Total Liabilities ........................... 4,381,577 144,039 253,529 62,658
------------ ------------ ------------ ------------
NET ASSETS ........................................ $455,109,640 $521,092,271 $331,484,076 $215,858,879
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-in-capital .................................. $359,161,278 $409,433,731 $267,437,314 $152,978,212
Undistributed (overdistributed) net
investment income .............................. (171,240) 32,616 2,075,229 124,899
Accumulated net realized gain (loss) on
Investments, foreign currency and
futures contracts sold ......................... 36,634,261 12,690,067 2,142,248 331,053
Net unrealized appreciation (depreciation)
of investments, foreign curency and
futures contracts .............................. 59,485,341 98,935,857 59,829,285 62,424,715
------------ ------------ ------------ ------------
TOTAL NET ASSETS .................................. $455,109,640 $521,092,271 $331,484,076 $215,858,879
============ ============ ============ ============
INSTITUTIONAL SHARES:
Net Assets ...................................... $442,022,721 $507,747,934 $322,919,700 $207,384,559
Shares Outstanding .............................. 32,069,888 32,934,070 21,765,643 15,379,878
Net Asset Value, offering and redemption,
price per share ................................ $ 13.78 $ 15.42 $ 14.84 $ 13.48
============ ============ ============ ============
INVESTMENT SHARES:
Net Assets ...................................... $ 13,086,919 $ 13,344,337 $ 8,564,376 $ 8,474,320
Shares Outstanding .............................. 954,776 867,084 580,196 627,880
Net Asset Value, redemption price per share ..... $ 13.71 $ 15.39 $ 14.76 $ 13.50
============ ============ ============ ============
Maximum offering price per share - Investment
Class (NAV/0.96) .................................. $ 14.28 $ 16.03 $ 15.38 $ 14.06
============ ============ ============ ============
</TABLE>
See Notes To Financial Statements.
40
<PAGE> 42
- ----------
THE KENT
FUNDS
- ----------
<TABLE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<CAPTION>
GROWTH SMALL
AND COMPANY INTERNATIONAL INDEX
INCOME GROWTH GROWTH EQUITY
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 2):
Dividends .......................................... $ 6,847,204 $ 4,070,205 $ 5,181,708 $ 2,415,878
Interest ........................................... 20,419 2,146 21,618 15,948
Less: Net foreign taxes withheld ................... -- -- (854,963) --
----------- ----------- ----------- -----------
Total Investment Income ............................ 6,867,623 4,072,351 4,348,363 2,431,826
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fee (Note 3) ................. 1,537,427 1,739,247 1,163,996 307,048
Administration fee (Note 3) ...................... 439,265 496,928 310,399 204,699
Custodian fee (Note 3) ........................... 8,968 58,929 168,429 11,712
Fund accounting fee (Note 3) ..................... 1,589 9,080 50,400 6,164
Legal fee (Note 3) ............................... 5,552 6,329 3,252 1,911
Audit fee ........................................ 4,588 5,087 5,087 4,021
Shareholder services (Notes 3 & 4) ............... 55,625 48,966 33,837 23,810
Trustees' fees and expenses (Note 3) ............. 1,843 1,843 1,661 1,843
Distribution Fee (Note 3) ........................ 15,054 15,235 10,081 9,495
Printing expense (Note 4) ........................ 7,826 7,717 6,524 5,764
Registration fees ................................ 6,164 5,069 9,318 2,816
Miscellaneous fees ............................... 5,427 7,216 3,605 --
----------- ----------- ----------- -----------
Total Expenses before reimbursement/waiver ..... 2,089,328 2,401,646 1,766,589 579,283
Less reimbursement/waiver (Note 3) ............. -- -- -- (102,349)
----------- ----------- ----------- -----------
Total Expenses net of reimbursement/waiver ..... 2,089,328 2,401,646 1,766,589 476,934
----------- ----------- ----------- -----------
NET INVESTMENT INCOME .............................. 4,778,295 1,670,705 2,581,774 1,954,892
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Net realized gain (loss) on investments .......... 35,565,468 10,888,758 2,781,843 679,927
Net realized gain (loss) on futures contracts .... 1,449,175 1,835,175 -- 455,145
Net realized gain (loss) on foreign currency and
foreign currency contracts ..................... -- -- (427,383) --
Net change in unrealized appreciation
(depreciation) of investments, foreign
currency, foreign currency contracts
and futures contracts .......................... (3,797,539) 46,375,773 9,296,481 16,238,159
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS ......................... 33,217,104 59,099,706 11,650,941 17,373,231
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS ......................................... $37,995,399 $60,770,411 $14,232,715 $19,328,123
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
41
<PAGE> 43
[Box THE KENT
FUNDS]
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
GROWTH AND INCOME FUND
----------------------------
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995
------------ ------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF PERIOD ............................... $412,450,592 $316,830,050
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income ....................................... 4,778,295 9,437,219
Net realized gain (loss) on investments, foreign currency and
futures contracts ......................................... 37,014,643 29,244,811
Net change in unrealized appreciation
(depreciation) of investments, foreign currency
and futures contracts ..................................... (3,797,539) 64,996,671
------------ ------------
Net increase (decrease) in net assets resulting
from operations ........................................... 37,995,399 103,678,701
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTE 2):
INSTITUTIONAL:
Net investment income ....................................... (4,913,968) (9,117,562)
In excess of net investment income .......................... -- --
Net realized gains .......................................... (14,703,680) (15,389,908)
------------ ------------
Total Distributions ....................................... (19,617,648) (24,507,470)
------------ ------------
INVESTMENT:
Net investment income ....................................... (129,489) (225,735)
In excess of net investment income .......................... -- --
Net realized gains .......................................... (408,189) (419,285)
------------ ------------
Total Distributions ....................................... (537,678) (645,020)
------------ ------------
Total Distributions to shareholders ................... (20,155,326) (25,152,490)
------------ ------------
NET INCREASE (DECREASE) FROM SHARE TRANSACTIONS(1) .............. 24,818,975 17,094,331
------------ ------------
Net increase (decrease) in net assets ....................... 42,659,048 95,620,542
------------ ------------
NET ASSETS AT END OF PERIOD (INCLUDING LINE A) .................. $455,109,640 $412,450,592
============ ============
(A) Accumulated undistributed (overdistributed) net
investment income (loss) ................................... $ (171,240) $ 93,922
============ ============
<FN>
- ---------------------------------------
(1) For detail on share transactions by class, see Statement of Changes in
Net Assets - Capital Stock Activity on pages 44 and 45.
</TABLE>
See Notes to Financial Statements.
42
<PAGE> 44
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND INTERNATIONAL GROWTH FUND INDEX EQUITY FUND
------------------------------- ------------------------------ ------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
------------------------------- ------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C>
$461,027,443 $312,611,638 $294,093,096 $184,724,501 $190,488,589 $250,286,380
------------ ------------ ------------ ------------ ------------ ------------
1,670,705 2,613,616 2,581,774 2,660,778 1,954,892 4,499,422
12,723,933 14,697,434 2,354,460 4,306,686 1,135,072 17,814,316
46,375,773 50,369,980 9,296,481 20,314,467 16,238,159 44,448,727
------------ ------------ ------------ ------------ ------------ ------------
60,770,411 67,681,030 14,232,715 27,281,931 19,328,123 66,762,465
------------ ------------ ------------ ------------ ------------ ------------
(1,631,022) (2,536,986) -- (2,613,863) (1,818,277) (4,347,671)
-- -- -- (2,246,651) -- --
(3,522,596) (21,377,049) -- (4,858,921) (2,549,325) (25,081,995)
------------ ------------ ------------ ------------ ------------ ------------
(5,153,618) (23,914,035) -- (9,719,435) (4,367,602) (29,429,666)
------------ ------------ ------------ ------------ ------------ ------------
(31,208) (52,489) -- (46,915) (63,580) (99,887)
-- -- -- (59,182) -- --
(86,593) (575,105) -- (150,827) (97,753) (698,289)
------------ ------------ ------------ ------------ ------------ ------------
(117,801) (627,594) -- (256,924) (161,333) (798,176)
------------ ------------ ------------ ------------ ------------ ------------
(5,271,419) (24,541,629) -- (9,976,359) (4,528,935) (30,227,842)
------------ ------------ ------------ ------------ ------------ ------------
4,565,836 105,276,404 23,158,265 92,063,023 10,571,102 (96,332,414)
------------ ------------ ------------ ------------ ------------ ------------
60,064,828 148,415,805 37,390,980 109,368,595 25,370,290 (59,797,791)
------------ ------------ ------------ ------------ ------------ ------------
$521,092,271 $461,027,443 $331,484,076 $294,093,096 $215,858,879 $190,488,589
============ ============ ============ ============ ============ ============
$ 32,616 $ 24,141 $ 2,075,229 $ (506,545) $ 124,899 $ 51,864
============ ============ ============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
43
<PAGE> 45
- ----------
THE KENT
FUNDS
- ----------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
<CAPTION>
GROWTH AND INCOME FUND SMALL COMPANY GROWTH FUND
------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
----------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued .............................. $ 72,439,772 $ 135,405,690 $ 62,825,042 $ 214,950,302
Reinvestment of distributions............... 8,355,645 10,602,239 2,666,319 12,988,002
Shares redeemed ............................ (57,504,840) (130,005,699) (61,983,592) (123,856,962)
------------ ------------- ------------ -------------
Net increase (decrease) from
Institutional share transactions ......... $ 23,290,577 $ 16,002,230 $ 3,507,769 $ 104,081,342
============ ============= ============ =============
INVESTMENT:
Shares issued .............................. $ 1,901,645 $ 2,791,139 $ 1,915,699 $ 3,064,021
Reinvestment of distributions .............. 527,748 632,130 116,285 617,761
Shares redeemed ............................ (900,995) (2,331,168) (973,917) (2,486,720)
------------ ------------- ------------ -------------
Net increase (decrease) from
Investment share transactions ............ $ 1,528,398 $ 1,092,101 $ 1,058,067 $ 1,195,062
============ ============= ============ =============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued .............................. 5,375,317 10,940,374 4,386,279 15,959,355
Reinvestment of distributions .............. 622,603 836,269 183,832 1,016,738
Shares redeemed ............................ (4,214,220) (10,901,212) (4,203,426) (9,782,762)
------------ ------------- ------------ -------------
Net increase (decrease) from
Institutional share transactions ......... 1,783,700 875,431 366,685 7,193,331
============ ============= ============ =============
INVESTMENT:
Shares issued .............................. 141,449 231,715 132,140 236,573
Reinvestment of distributions .............. 39,559 49,928 8,043 48,614
Reinvestment of distributions .............. (66,412) (207,110) (66,646) (195,767)
------------ ------------- ------------ -------------
Net increase (decrease) from
Investment share transactions ............ 114,596 74,533 73,537 89,420
============ ============= ============ =============
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 46
- ----------
THE KENT
FUNDS
- ----------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS -
CAPITAL STOCK ACTIVITY
<CAPTION>
INTERNATIONAL GROWTH FUND INDEX EQUITY FUND
------------------------------- ------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
----------- ------------ -------------- -----------
<S> <C> <C> <C> <C>
DOLLAR AMOUNTS
INSTITUTIONAL:
Shares issued ........................... $ 47,208,039 $151,546,595 $ 34,925,937 $ 56,866,010
Reinvestment of distributions ........... 22,036 4,756,128 2,806,394 18,021,509
Shares redeemed ......................... (24,730,690) (64,667,292) (28,496,446) (172,291,970)
------------ ------------ ------------ -------------
Net increase (decrease) from
Institutional share transactions ........ $ 22,499,385 $ 91,635,431 $ 9,235,885 $ (97,404,451)
============ ============ ============ =============
INVESTMENT:
Shares issued ........................... $ 1,244,447 $ 2,020,811 $ 1,700,436 $ 1,824,094
Reinvestment of distributions ........... 354 251,525 154,958 755,434
Shares redeemed ......................... (585,921) (1,844,744) (520,177) (1,507,491)
------------ ------------ ------------ -------------
Net increase (decrease) from
Investment share transactions ......... $ 658,880 $ 427,592 $ 1,335,217 $ 1,072,037
============ ============ ============ =============
SHARE ACTIVITY
INSTITUTIONAL:
Shares issued ........................... 3,272,979 11,200,281 2,688,209 4,734,274
Reinvestment of distributions ........... 1,554 346,491 214,405 1,508,630
Shares redeemed ......................... (1,712,124) (4,991,387) (2,166,822) (14,594,583)
------------ ------------ ------------ -------------
Net increase (decrease) from
Institutional share transactions...... 1,562,409 6,555,385 735,792 (8,351,679)
============ ============ ============ =============
INVESTMENT:
Shares issued ........................... 86,721 153,600 129,719 149,481
Reinvestment of distributions ........... 25 18,673 11,828 62,301
Shares redeemed ......................... (40,740) (141,025) (39,523) (128,627)
------------ ------------ ------------ -------------
Net increase (decrease) in
Investment share transactions ......... 46,006 31,248 102,024 83,155
============ ============ ============ =============
</TABLE>
See Notes to Financial Statements.
45
<PAGE> 47
-------- GROWTH AND INCOME FUND
THE KENT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
--------
<TABLE>
Institutional Shares
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED DECEMBER 31,
JUNE 30, 1996 -----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992(2)
------------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period .......................... $ 13.25 $ 10.50 $ 10.91 $ 10.31 $ 10.00
-------- -------- -------- -------- -------
Income from Investment Operations:
Net investment income ..................................... 0.15 0.33 0.31 0.27 0.06
Net realized and unrealized gain (loss) on investments .... 1.01 3.28 (0.26) 0.95 0.31
-------- -------- -------- -------- -------
Total from Investment Operations: ....................... 1.16 3.61 0.05 1.22 0.37
-------- -------- -------- -------- -------
Less Distributions from:
Net investment income ..................................... (0.16) (0.33) (0.31) (0.27) (0.06)
In excess of net investment income ........................ -- -- *** (0.01) ***
Net realized gain on investments .......................... (0.47) (0.53) (0.15) (0.34) --
In excess of net realized gains ........................... -- -- -- -- --
-------- -------- -------- -------- -------
Total Distributions: .................................... (0.63) (0.86) (0.46) (0.62) (0.06)
-------- -------- -------- -------- -------
Net increase (decrease) in net asset value .................... 0.53 2.75 (0.41) 0.60 0.31
-------- -------- -------- -------- -------
Net Asset Value, End of period ................................ $ 13.78 $ 13.25 $ 10.50 $ 10.91 $ 10.31
======== ======== ======== ======== =======
Total Return for period indicated (A).......................... 8.90%** 34.91% 0.51% 11.98% 3.68%
Ratios/Supplemental Data:
Net Assets, End of period (000's) ............................. $442,023 $401,371 $308,825 $180,864 $76,449
Ratios to average net assets:
Net investment income...................................... 2.18%* 2.73% 3.04% 2.61% 3.51%*
Operating expenses......................................... 0.94%* 0.94% 0.98% 1.03% 0.19%**
Portfolio Turnover Rate ....................................... 29% 58% 28% 54% 0%
Average Commission Rate Paid (B)............................... $ 0.0570 N/A N/A N/A N/A
<FN>
- ---------------------------------------------------------------
* Annualized
** Not Annualized
*** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) The Investment Class date of initial public investment was December 1, 1992.
(A) Calculation does not include sales charge for the Investment shares.
(B) Required disclosure for fiscal years beginning on or after September 1, 1995.
</TABLE>
See Notes to Financial Statements.
46
<PAGE> 48
Equity Funds
<TABLE>
Investment Shares
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED DECEMBER 31,
JUNE 30, 1996 -----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992(2)
------------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period ....................... $ 13.19 $ 10.46 $10.87 $10.29 $10.23
------- ------- ------ ------ ------
Income from Investment Operations:
Net investment income .................................. 0.13 0.30 0.32 0.27 ***
Total from Investment Operations: .................... 1.00 3.26 (0.27) 0.93 0.06
------- ------- ------ ------ ------
1.13 3.56 0.05 1.20 0.06
------- ------- ------ ------ ------
Less Distributions from:
Net investment income .................................. (0.14) (0.30) (0.31) (0.23) --
In excess of net investment income ..................... -- -- *** (0.05) --
Net realized gain on investments ....................... (0.47) (0.53) (0.15) (0.20) --
In excess of net realized gains ........................ -- -- -- (0.14) --
------- ------- ------ ------ ------
Total Distributions: ................................. (0.61) (0.83) (0.46) (0.62) --
------- ------- ------ ------ ------
Net increase (decrease) in net asset value ................. 0.52 2.73 (0.41) 0.58 0.06
------- ------- ------ ------ ------
Net Asset Value, End of period ............................. $ 13.71 $ 13.19 $10.46 $10.87 $10.29
======= ======= ====== ====== ======
Total Return for period indicated (A)....................... 8.77%** 34.61% 0.50% 11.81% 0.59%
Ratios/Supplemental Data:
Net Assets, End of period (000's) .......................... $13,087 $11,079 $8,005 $4,607 $ 102
Ratios to average net assets:
Net investment income................................... 1.93%* 2.48% 3.03% 2.43% (0.88)%*
Operating expenses...................................... 1.19%* 1.18% 0.98% 1.22% 0.33%**
Portfolio Turnover Rate .................................... 29% 58% 28% 54% 0%
Average Commission Rate Paid (B)............................ $0.0570 N/A N/A N/A N/A
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
47
<PAGE> 49
-------- SMALL COMPANY GROWTH FUND
THE KENT FINANCIAL HIGHLIGHTS
FUNDS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
--------
<TABLE>
Institutional Shares
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED DECEMBER 31,
JUNE 30, 1996 -----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992(2)
------------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period ....................... $ 13.82 $ 11.99 $ 12.50 $ 10.85 $10.00
------- ------- -------- -------- ------
Income from Investment Operations:
Net realized and unrealized gain (loss) on investments... 0.05 0.10 0.10 0.08 0.02
Net investment income .................................. 1.70 2.64 (0.10) 1.76 0.86
------- ------- -------- -------- ------
Total from Investment Operations: .................... 1.75 2.74 0.00 1.84 0.88
Less Distributions from:
Net investment income .................................. (0.05) (0.10) (0.09) (0.08) (0.02)
In excess of net investment income ..................... -- -- (0.01) (0.01) (0.01)
Net realized gain on investments ....................... (0.10) (0.81) (0.41) (0.10) --
------- ------- -------- -------- ------
Total Distributions: ................................. (0.15) (0.91) (0.51) (0.19) (0.03)
------- ------- -------- -------- ------
Net increase (decrease) in net asset value ................. 1.60 1.83 (0.51) 1.65 0.85
------- ------- -------- -------- ------
Net Asset Value, End of period ............................. $ 15.42 $ 13.82 $ 11.99 $ 12.50 $10.85
======== ======== ======== ======== ======
Total Return for period indicated (A)....................... 12.77%** 23.75% (0.06)% 17.04% 8.75%
Ratios/Supplemental Data:
Net Assets, End of period (000's) .......................... $507,748 $450,072 $304,179 $252,401 $95,999
Ratios to average net assets:
Net investment income................................... 0.68%* 0.83% 0.79% 0.74% 1.35%*
Operating expenses...................................... 0.96%* 0.97% 0.98% 1.06% 0.18%**
Portfolio Turnover Rate .................................... 5% 30% 20% 14% 1%
Average Commission Rate Paid (B)............................ $ 0.0552 N/A N/A N/A N/A
<FN>
- ---------------------------------------------------------------
* Annualized
** Not Annualized
*** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) The Investment Class date of initial public investment was December 1, 1992.
(A) Calculation does not include sales charge for the Investment shares.
(B) Required disclosure for fiscal years beginning on or after September 1, 1995.
</TABLE>
See Notes to Financial Statements.
48
<PAGE> 50
<TABLE>
INVESTMENT SHARES
<CAPTION>
Six months
ended Period ended December 31,
June 30, 1996 ----------------------------------------------------
(unaudited) 1995 1994 1993 1992[1]
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C>
$ 13.81 $ 11.98 $12.49 $10.86 $10.65
------- ------- ------ ------ ------
0.03 0.07 0.10 0.08 ***
1.69 2.64 (0.11) 1.74 0.21
------- ------- ------ ------ ------
1.72 2.71 (0.01) 1.82 0.21
------- ------- ------ ------ ------
(0.04) (0.07) (0.08) (0.06) --
-- -- (0.01) (0.03) --
(0.10) (0.81) (0.41) (0.10) --
------- ------- ------ ------ ------
(0.14) (0.88) (0.50) (0.19) --
------- ------- ------ ------ ------
1.58 1.83 (0.51) 1.63 0.21
------- ------- ------ ------ ------
$ 15.39 $ 13.81 $11.98 $12.49 $10.86
======= ======= ====== ====== ======
12.54%** 23.47% (0.08)% 16.84% 1.97%
$13,344 $10,955 $8,433 $5,345 $ 84
0.43%* 0.59% 0.79% 0.59% (1.50)% *
1.21%* 1.20% 0.98% 1.25% 0.27%**
5% 30% 20% 14% 1%
$0.0552 N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
49
<PAGE> 51
[Box The Kent
Funds]
INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
INSTITUTIONAL SHARES
<CAPTION>
Six months
ended Period ended December 31,
June 30, 1996 ---------------------------------------------------
(unaudited) 1995 1994 1993 1992[1]
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period .............. $ 14.18 $ 13.06 $ 12.84 $ 10.01 $ 10.00
-------- -------- -------- -------- -------
Income from Investment Operations:
Net investment income.......................... 0.12 0.13 0.12 0.09 ***
Net realized and unrealized gain (loss) on
investments, foreign currency and
futures contracts.......................... 0.54 1.54 0.61 2.95 0.02
-------- -------- -------- -------- -------
Total from Investment Operations: ........... 0.66 1.67 0.73 3.04 0.02
-------- -------- -------- -------- -------
Less Distributions from:
Net investment income ......................... -- (0.13) (0.07) (0.08) --
In excess of net investment income............. -- (0.11) (0.03) (0.04) (0.01)
Net realized gain on investments .............. -- (0.31) (0.41) (0.08) --
In excess of net realized gains................ -- -- -- (0.01) --
-------- -------- -------- -------- -------
Total Distributions: ........................ -- (0.55) (0.51) (0.21) (0.01)
-------- -------- -------- -------- -------
Net increase (decrease) in net asset value ........ 0.66 1.12 0.22 2.83 0.01
-------- -------- -------- -------- -------
Net Asset Value, End of period .................... $ 14.84 $ 14.18 $ 13.06 $ 12.84 $ 10.01
======== ======== ======== ======== =======
Total Return for period indicated (A).............. 4.65%** 13.00% 5.73% 30.32% 0.20%
Ratios/Supplemental Data:
Net Assets, End of period (000's) ................. $322,920 $286,545 $178,186 $157,716 $81,105
Ratios to average net assets:
Net investment income ......................... 1.67%* 1.35% 0.87% 0.86% (0.28)%*
Operating expenses............................. 1.13%* 1.17% 1.22% 1.33% 0.14%**
Portfolio Turnover Rate ........................... 3% 6% 20% 5% 0%
Average Commission Rate Paid (B)................... $ 0.0262 N/A N/A N/A N/A
<FN>
- -----------------------------------------------------------
* Annualized
** Not Annualized
*** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) The Investment Class date of initial public investment was December 1, 1992.
(A) Calculation does not include sales charge for the Investment shares.
(B) Required disclosure for fiscal years beginning on or after September 1, 1995.
</TABLE>
See Notes to Financial Statements.
50
<PAGE> 52
<TABLE>
INVESTMENT SHARES
<CAPTION>
Six months
ended Period ended December 31,
June 30, 1996 ---------------------------------------------------
(unaudited) 1995 1994 1993 1992[1]
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C>
$14.13 $13.00 $12.81 $10.03 $10.00
0.10 0.14 0.14 0.13 ***
0.53 1.50 0.56 2.85 0.03
0.63 1.64 0.70 2.98 0.03
-- (0.09) (0.07) (0.02) --
-- (0.11) (0.03) (0.09) --
-- (0.31) (0.41) (0.05) --
-- -- -- (0.04) --
-- (0.51) (0.51) (0.20) --
0.63 1.13 0.19 2.78 0.03
$14.76 $14.13 $13.00 $12.81 $10.03
4.46%** 12.86% 5.51% 29.67% 0.30%
$8,564 $7,548 $6,539 $3,202 $ 15
1.42%* 1.11% 0.81% 0.32% (1.34)%*
1.38%* 1.40% 1.25% 1.43% 0.20%**
3% 6% 20% 5% 0%
$0.0262 N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
51
<PAGE> 53
[Box The Kent
Funds]
INDEX EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
INSTITUTIONAL SHARES
<CAPTION>
Six months
ended Period ended December 31,
June 30, 1996 --------------------------------------------------
(unaudited) 1995 1994 1993 1992[1]
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of period ....................... $ 12.56 $ 10.68 $ 11.04 $ 10.41 $ 10.00
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income .................................. 0.12 0.26 0.25 0.23 0.05
Net realized and unrealized gain (loss) on
investments and futures contracts ................ 1.09 3.44 (0.15) 0.71 0.41
-------- -------- -------- -------- --------
Total from Investment Operations: .................... 1.21 3.70 0.10 0.94 0.46
-------- -------- -------- -------- --------
Less Distributions from:
Net investment income .................................. (0.12) (0.25) (0.26) (0.23) (0.05)
In excess of net investment income ..................... -- -- *** *** ***
Net realized gain on investments ....................... (0.17) (1.57) (0.20) (0.08) --
In excess of net realized gains ........................ -- -- -- -- --
-------- -------- -------- -------- --------
Total Distributions: ................................. (0.29) (1.82) (0.46) (0.31) (0.05)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value ................. 0.92 1.88 (0.36) 0.63 0.41
-------- -------- -------- -------- --------
Net Asset Value, End of period ............................. $ 13.48 $ 12.56 $ 10.68 $ 11.04 $ 10.41
======== ======== ======== ======== ========
Total Return for period indicated (A) ...................... 9.74%** 36.23% 0.86% 9.11% 4.55%
Ratios/Supplemental Data:
Net Assets, End of period (000's) .......................... $207,385 $183,877 $245,550 $233,451 $153,431
Ratios to average net assets:
Net investment income including reimbursement/waiver.... 1.92%* 2.14% 2.32% 2.18% 2.65%*
Net investment income excluding reimbursement/waiver.... 1.82%* 2.14% 2.32% 2.18% 2.65%*
Operating expenses including reimbursement/waiver ...... 0.46%* 0.56% 0.58% 0.65% 0.13%**
Operating expenses excluding reimbursement/waiver ...... 0.56%* 0.56% 0.58% 0.65% 0.13%**
Portfolio Turnover Rate .................................... 1% 3% 50% 1% 0%
Average Commission Rate Paid (B)............................ $ 0.0414 N/A N/A N/A N/A
<FN>
- --------------------------------------------------
* Annualized
** Not Annualized
*** Amount is less than $0.005.
(1) The Institutional Class commenced operations on November 2, 1992.
(2) The Investment Class date of initial public investment was November 25, 1992.
(A) Calculation does not include sales charge for the Investment shares.
(B) Required disclosure for fiscal years beginning on or after September 1, 1995.
</TABLE>
See Notes to Financial Statements.
52
<PAGE> 54
<TABLE>
INVESTMENT SHARES
<CAPTION>
Six months
ended Period ended December 31,
June 30, 1996 ---------------------------------------------------
(unaudited) 1995 1994 1993 1992[1]
----------- ---- ---- ---- -------
<S> <C> <C> <C> <C>
$12.57 $10.70 $11.07 $10.44 $10.28
------ ------ ------ ------ ------
0.11 0.23 0.26 0.22 ***
1.10 3.44 (0.17) 0.72 0.16
------ ------ ------ ------ ------
1.21 3.67 0.09 0.94 0.16
------ ------ ------ ------ ------
(0.11) (0.23) (0.26) (0.20) --
-- -- -- (0.03) --
(0.17) (1.57) (0.20) (0.06) --
-- -- -- (0.02) --
------ ------ ------ ------ ------
(0.28) (1.80) (0.46) (0.31) --
------ ------ ------ ------ ------
0.93 1.87 (0.37) 0.63 0.16
------ ------ ------ ------ ------
$13.50 $12.57 $10.70 $11.07 $10.44
====== ====== ====== ====== ======
9.71%** 35.81% 0.75% 9.09% 1.56%
$8,474 $6,612 $4,736 $3,776 $ 89
1.67%* 1.86% 2.30% 2.04% 1.03%*
1.57%* 1.85% 2.30% 2.04% 1.03%*
0.71%* 0.80% 0.60% 0.86% 0.12%**
0.81%* 0.81% 0.60% 0.86% 0.12%**
1% 3% 50% 1% 0%
$0.0414 N/A N/A N/A N/A
</TABLE>
See Notes to Financial Statements.
53
<PAGE> 55
- ----------
THE KENT
FUNDS
- ----------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
The Kent Funds (the "Trust") was organized as a Massachusetts business
trust on May 9, 1986 and 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 thirteen managed investment portfolios. The
accompanying financial statements and financial highlights are those of the
Growth and Income Fund (formerly ValuePlus Equity Fund), Small Company Growth
Fund (formerly Expanded Market Equity Fund), International Growth Fund (formerly
International Equity Fund) and Index Equity Fund (individually, a "Portfolio",
collectively the "Portfolios") only. The Trust offers two classes of shares:
Investment and Institutional. The Investment Shares are offered with a 4.00%
sales load.
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 revenues 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 Portfolios
in the preparation of the financial statements.
PORTFOLIO VALUATION: Listed securities are valued at the last sales price on
the principle exchange where such securities are traded. Listed securities
for which last sales prices are not available are valued at the last bid
price. Unlisted securities are valued at the mean of the current bid and
asked prices in the principle market where such securities trade. Short-term
obligations that mature in 60 days or less are valued at amortized cost,
which constitutes fair value and approximates market 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.
FOREIGN CURRENCY TRANSLATION: Investments and other assets and liabilities
initially expressed in foreign currencies are converted each business day
into U.S. dollars based upon current exchange rates. Realized gains and
losses on foreign investments and foreign income and expenses are converted
into U.S. dollars based upon exchange rates prevailing on the respective
dates of such transactions. That portion of unrealized gains or losses on
investments due to fluctuations in foreign currency exchange rates is not
separately disclosed.
Foreign currency-denominated receivables and payables are
"marked-to-market" using the current exchange rate. The fluctuation between the
original exchange rate and the current exchange rate is recorded as unrealized
currency gain or loss. Upon receipt of payment, a Portfolio realizes a gain or
loss on foreign currency amounting to the difference between the original value
and the ending value of the receivable or payable. Foreign currency gains and
losses related to dividend receivables are reported as part of dividend income.
FUTURES CONTRACTS: Each Portfolio may invest in futures contracts. The
Portfolios generally enter into futures contracts to hedge against declines
in the value of their portfolios' securities. This investment involves, to
varying degrees, elements of market risk and risks in excess of amounts
recognized in the Statement of Assets and Liabilities. The face or contract
amounts reflect the extent of the involvement the Portfolios have in the
particular classes of instruments. Risks include an imperfect correlation
between the movements in the price of the instruments and the price of the
underlying securities and interest rates. Risks also may arise if there is an
illiquid secondary market for the instruments or due to the inability of
counterparties to perform under the terms of the contract.
Cash is deposited with brokers in order to maintain a position. Subsequent
payments made or received daily by a Portfolio based on the change in the market
value of the position are recorded as unrealized gain or loss until the contract
is closed out at which time the gain or loss is realized.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS:
The International Growth Fund may enter into forward foreign currency exchange
contracts. The purpose of these contracts is to hedge against fluctuation in the
value of the underlying currency of certain portfolio investments. A forward
foreign currency exchange contract is an agreement to purchase or sell a
specified currency at a specified price on a future date. Risks
54
<PAGE> 56
- ----------
THE KENT
FUNDS
- ----------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
associated with the contract include changes in the value of the foreign
currency relative to the U.S. dollar and/or the counterparty's potential
inability to perform under the contract.
The forward foreign currency exchange contracts are valued daily using the
current exchange rate of the underlying currency with any fluctuations recorded
as unrealized gains or losses. Realized gains or losses are recognized when
entering a closing or offsetting forward foreign currency exchange contract with
the same settlement date and broker.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Net realized gains and losses from securities and
currency transactions are recorded on the basis of identified cost. Interest
income is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date.
The International Growth Fund, upon the purchase or sale of a security
denominated in a foreign currency, may enter into foreign currency exchange
contracts for the purchase or sale, for a fixed amount of U.S. dollars, of the
amount of foreign currency involved in the underlying security transaction to
hedge the portfolio against currency fluctuations during the settlement period.
In such cases, the Portfolio has not realized currency gains or losses between
the trade and settlement dates on these security transactions.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
The Portfolios declare and distribute dividends from net investment income
monthly, with the exception of the International Growth Fund which declares and
pays dividends annually. Net realized capital gains, if any, are distributed at
least annually.
The amounts of income and capital gains to be distributed are determined in
accordance with income tax regulations. Such amounts may vary from income and
capital gains recognized in accordance with generally accepted accounting
principles.
FEDERAL TAXES: The Trust treats each Portfolio as a separate entity for
Federal income tax purposes. Each Portfolio intends to continue to qualify
each year as a "regulated investment company" under Subchapter M
of the Internal Revenue Code of 1986, as amended. By so qualifying, each
Portfolio will not be subject to Federal income taxes to the extent that it
distributes all of its taxable or tax-exempt income. In addition, by
distributing during each calendar year substantially all of its net
investment income and capital gains, each Portfolio will not be subject to a
Federal excise tax. Therefore, no Federal income tax provision is required.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with the applicable country's tax rules and rates.
EXPENSES: Expenses directly attributable to a Portfolio are charged to the
Portfolio, while expenses which are attributable to more than one investment
portfolio of the Trust are allocated among the respective portfolios. In
addition, investors in Investment Shares will pay the expenses directly
attributable to the Investment Shares as a class, and investors in
Institutional Shares will pay the expenses directly attributable to the
Institutional Shares as a class.
3. INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND OTHER FEES
Old Kent Bank ("Investment Adviser") serves as the investment adviser to
the Trust. The Investment Adviser is a Michigan State Banking Association and
the principal subsidiary of Old Kent Financial Corporation. The Trust pays the
Investment Adviser a fee, computed daily and paid monthly, at the annual rate of
0.70% of the average daily net assets of the Growth and Income Fund and Small
Company Growth Fund, 0.75% of the average daily net assets of the International
Growth Fund and 0.30% of the average daily net assets of the Index Equity Fund.
Effective March 31, 1995, First Data Investor Services Group, Inc.
("FDISG"), formerly known as The Shareholder Services Group, Inc. doing business
as 440 Financial, a wholly-owned subsidiary of First Data Corporation ("First
Data"), serves as the Trust's administrator and transfer agent. FDISG (the
"Administrator"), receives a fee, computed daily and paid monthly, at the annual
rate of 0.20% for up to $5.0 billion, 0.18% for $5.0 to $7.5 billion and 0.15%
for over $7.5 billion of the Trust's aggregate net assets. In addition, FDISG
also receives a separate fee from each Portfolio for certain transfer agent
services ("shareholder services fees") and fund accounting services. Prior to
March 31, 1995, the administration, fund accounting and transfer agency services
described above were provided by 440 Financial Group of Worcester, Inc., a
wholly-owned subsidiary of State Mutual Life Assurance Company of America
("State Mutual") for the same annual fees. On March 31, 1995, FDISG acquired
substantially all the assets of 440 Financial Group of Worcester, Inc.
55
<PAGE> 57
- ----------
THE KENT
FUNDS
- ----------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
The Administrator has voluntarily limited its fees with respect to the
Index Equity Fund. The Administrator has waived for the Institutional Shares and
Investment Shares of the Index Equity Fund $3,801 and $98,548 respectively, for
the six months ended June 30, 1996.
Each Portfolio has adopted a distribution plan (the "Plans") on behalf of
the Investment Shares pursuant to Rule 12b-1 of the Investment Company Act of
1940. The Plans provide for payments to 440 Financial Distributors, Inc. (the
"Distributor"), an indirect wholly-owned subsidiary of First Data, of 0.25% of
the average daily net assets of the Investment Shares of the Portfolios.
The Distributor acts as the exclusive distributor of the Trust's shares.
Prior to March 31, 1995 the Distributor was an indirect wholly-owned subsidiary
of State Mutual.
Certain officers of the Trust are also officers of the current
Administrator and/or the Distributor. Such Trustee and officers receive no
compensation from the Trust for serving in their respective roles.
Expenses for the Trust include legal fees paid to Drinker Biddle & Reath. A
partner of that firm serves as Secretary of the Trust.
Bankers Trust Company acts as the Trust's custodian. Prior to October 25,
1995, the Trust's custodian was The Chase Manhattan Bank, N.A., a wholly-owned
subsidiary of The Chase Manhattan Corporation.
4. CLASS LEVEL EXPENSES
Each of the Portfolios has established two classes of shares, Investment
Shares and Institutional Shares. Each share in each Portfolio, regardless of
class, represents an equal pro rata interest in a Portfolio and has identical
voting, dividend, liquidation and other rights, except in matters affecting only
a particular Portfolio or class in which case only shar es of the affected
Portfolio or class are entitled to vote. Each class may bear class specific
expenses.
<TABLE>
Class specific expenses, if any, are currently limited to expenses directly
attributable to the Investment Shares under the Plans, shareholder se rvices
fees and certain printing and postage expenses incurred as they relate to a
particular class of shares. Shareholder services fees were borne by each of the
Institutional and Investment Shares for each Portfolio for the six months ended
June 30, 1996 as follows:
<CAPTION>
INSTITUTIONAL INVESTMENT
------------- ----------
<S> <C> <C>
Growth and Income $54,092 $1,533
Small Company Growth 47,767 1,199
International Growth 32,958 879
Index Equity 22,927 883
</TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trust's Declaration of Trust authorizes the Trustees to issue an
unlimited number of shares of beneficial interest without par value. It allows
for the creation of one or more classes of shares within each series, each of
which, regardless of class designation, represents an equal proportionate
interest in the Portfolios with each other share of that series. The Portfolios
may issue more than one series of shares investing in portfolios of securities.
The Trust currently issues thirteen series of shares with two separate classes
in each series, Investment Shares and Institutional Shares. Each class of shares
is entitled upon liquidation of the Portfolios to a pro rata share in the net
assets of the class of such series.
6. PURCHASES AND SALES OF SECURITIES
<TABLE>
The cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the six months ended June 30, 1996, were as follows:
<CAPTION>
FUND PURCHASES SALES
---- --------- -----
<S> <C> <C>
Growth and Income ...... $133,653,794 $122,580,798
Small Company Growth ... 21,658,317 34,546,776
International Growth ... 44,736,305 13,356,957
Index Equity ........... 4,687,802 1,844,778
</TABLE>
56
<PAGE> 58
- ----------
THE KENT
FUNDS
- ----------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
<TABLE>
At June 30, 1996 aggregate gross unrealized appreciation in which there was
an excess of value over tax costs and aggregate gross unrealized depreciation in
which there was an excess of tax costs over value for all securities were as
follows:
<CAPTION>
TAX BASIS
------------------------------
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
---- ------------ ------------
<S> <C> <C>
Growth and Income ...... $ 67,645,297 $ (8,159,956)
Small Company Growth ... 129,869,452 (30,935,745)
International Growth ... 65,497,033 (5,673,915)
Index Equity ........... 64,125,962 (1,827,668)
</TABLE>
<TABLE>
<CAPTION>
NET UNREALIZED
APPRECIATION
FUND (DEPRECIATION)
---- --------------
<S> <C>
Growth and Income ..... $59,485,341
Small Company Growth... 98,933,707
International Growth... 59,823,118
Index Equity .......... 62,298,294
</TABLE>
<TABLE>
The accompanying table below details distributions from long term capital
gains for the following Portfolios for the six months ended June 30, 1996:
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
Growth and Income ...... $ --
Small Company Growth ... --
International Growth ... --
Index Equity ........... 2,647,078
</TABLE>
7. FOREIGN SECURITIES
The Growth and Income Fund and the International Growth Fund can 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 devaluation of currencies and future adverse political
and economic developments. Moreover, securities of many foreign issuers and
their markets may be less liquid and their prices more volatile than those of
securities of comparable U.S. issuers.
8. SUBSEQUENT EVENT
As approved by the Board of Trustees of the Trust on May 31, 1996,
effective August 5, 1996, BISYS Fund Services Limited Partnership d/b/a BISYS
Fund Services ("BISYS") will assume the duties as administrator and distributor
for the Trust from FDISG and 440 Financial Distributors, Inc., respectively.
Also effective August 5, 1996, BISYS Fund Services, Inc. will assume the duties
as Fund Accountant to the Trust from FDISG. BISYS Fund Services, Inc. will
assume the duties of Transfer Agent from FDISG effective October 6, 1996.
57
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--- ----------------
THE BULK RATE
--- US POSTAGE
KENT FUNDS[Registered Trademark] PAID
PERMIT NO. 54201
4400 COMPUTER DRIVE BOSTON, MA
WESTBORO, MA 01581 ----------------
