<PAGE>
- ----------------------------------------
ANNUAL REPORT
- ----------------------------------------
- ----------------------------------------
DECEMBER 31, 1995 [ARTWORK APPEARS HERE]
- ---------------------------------------- Front Cover-
A logo for the Funds representing
a Roman column appears on the
- ---------------------------------------- page.
YOUR FOUNDATION FOR INVESTMENT STRENGTH
- ----------------------------------------
The The Kent Growth and Income Fund
Kent The Kent Small Company
Growth Fund
Funds/(R)/
The Kent International
Growth Fund
The Kent Index Equity Fund
<PAGE>
- ----------------------------------------
MESSAGE TO SHAREHOLDERS
- ----------------------------------------
Dear Kent Fund Shareholder:
The 1995 annual report to shareholders of The Kent Funds includes a new
feature - a "Market Overview" from Kent Fund portfolio managers that explains
how and why equity markets performed as they did in 1995. It also explains the
strategy followed by the portfolio managers to increase your returns without
undue risk.
In addition, you will continue to find information about the performance of
individual funds. Individual fund reports have been streamlined so that they are
easier to read and more convenient to use.
While we have changed the format of our annual report to keep investors
better informed, we have not altered our investment goal of providing investors
with good value and opportunities for growth without undue risk.
This report provides a great deal of information about The Kent Funds, but
you may still have questions. Please call us at 1-800-633-KENT (1-800-633-5368).
A Kent Funds Specialist is available to assist you. We are always pleased to
answer questions from shareholders.
Sincerely,
The Kent Funds
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1
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<PAGE>
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EQUITY MARKET OVERVIEW
- ----------------------------------------
The U.S. stock market's 1995 performance would have earned it a standing
ovation if it were performing on stage.
With the Dow Jones Industrial Average, the S&P 500 and the NASDAQ
composite index each jumping in value by more than a third, investors had
much to applaud. At that rate, the average stock would double in value in
less than three years.
The bull market convinced many investors that equities were the best place
to invest -- and their continuing flow of cash helped fuel the market's nearly
uninterrupted growth.
Interest rate increases and downsizings of 1994 primed the market for its
1995 performance. Interest rates trended back downward during 1995, which not
only boosted corporate earnings, but made investments in stocks a more
attractive alternative. Reduced overhead also contributed to corporate America's
bottom line, keeping profits - and stock prices - robust throughout the year.
Investors not only benefited from tremendous gains, they also enjoyed a
relatively smooth ride. The market was less volatile in 1995 than it has been in
any year since the mid-'60s.
U.S. MARKET LEADS
U.S. stocks led the world in 1995, as international economies generally
failed to match the slow but steady economic growth and low inflation that sent
U.S. stocks soaring. Internationally, stocks were inconsistent. Some European
markets, such as the United Kingdom and Sweden, enjoyed solid growth while
others, such as Italy and Austria, underperformed. Emerging-market stocks
suffered, and the economic powerhouse of Japan barely managed a positive
performance, with stocks up less than 1%.
Within the U.S. market, large-cap issues exceeded expectations and
continued to outperform small-cap and mid-cap issues. Large-cap companies
enjoyed exceptional profits, primarily because of extensive downsizing. While
large-cap stocks already seemed overvalued by mid-year, they continued to climb
throughout 1995. The performance of large-cap issues helped make 1995 an
especially good year for index funds and growth and income funds.
The best performing sectors for the Kent equity funds were financial
services and technology stocks, although technology stocks were more volatile
than their overall performance indicates. After three quarters of unmitigated
growth, technology issues stumbled in the fourth quarter. Semiconductor issues
in particular suffered, in some cases losing half of their value as a result of
disappointing earnings. Some other technology issues, however, recorded
outstanding gains throughout the year. Internet-related stocks, for example,
were especially strong during the fourth quarter.
Financial services stocks were more consistent. Spurred by low interest
rates, consumer demand and merger activity, first bank stocks then insurance
company stocks advanced faster than the market as a whole.
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2
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<PAGE>
----------------------------------------
EQUITY MARKET OVERVIEW
----------------------------------------
The biggest disappointment of the year was the retail sector, which barely
participated in the bull market. With consumer debt at an all-time high,
consumers were making few unnecessary purchases. Many retailers and apparel
makers saw their stocks tumble during the fourth quarter as a result of
lackluster Christmas sales.
TRENDS FOR 1996
If the market deserved a standing ovation for 1995, what does it do for an
encore in 1996?
It is highly unlikely that 1996 returns will be anywhere near as high as
1995 returns. Conditions could, however, remain favorable for investors.
Corporate profits are not expected to sustain the growth enjoyed in 1995, but we
believe interest rates should remain stable and may even move somewhat lower,
which would help advance the market.
Federal budget negotiations between the Republican-controlled Congress and
Democratic President were deadlocked as the year ended, and it was still unclear
what impact the budget negotiations would have on the markets in 1996.
Congressional resolve to balance the budget initially helped boost stock prices,
but fear of a government default on Treasury obligations had a negative impact
on prices as the year ended.
We expect sectors that trailed the market in 1995 are likely to be front
runners in 1996. Overall, that means a shift from large-cap issues to small-cap
issues. It also means investment in international stocks especially in Japan,
and a greater emphasis on consumer durables. Continuing cold weather could also
help boost prices for energy and utility stocks.
DEFENSIVE MEASURES
Defensive measures have already been taken to help investors in the Kent
equity funds reduce risk in 1996 and benefit from those sectors that are
expected to outperform the market.
While we expect a significant correction sometime in 1996, continuing
inflows could keep the market buoyed through most or even all of 1996. Investors
who are tempted to take their money out of stocks at the first sign of a
correction should learn from the market performance of 1995. Investors who
thought stocks were overpriced at mid-year and who took their profits missed out
on the continuing growth in the second half of 1995. Some investors moved out of
equities during 1994's lackluster performance and missed 1995's bull market
altogether. The lesson to be learned from 1995 is that equities markets can be
unpredictable, and that the best way to invest in stocks is to invest for the
long term.
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3
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<PAGE>
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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
With an Institutional Class total return of 34.91%, and an Investment Class
total return of 34.61%, before the deduction of sales charges, 1995 was a strong
year for The Kent Growth and Income Fund. The Fund solidly outperformed the
average growth and income fund tracked by Lipper Analytical Services, which
finished the year with a 30.82% gain. The Standard & Poor's 500 Composite Stock
Index had a return of 37.5%.
The S&P 500's spectacular gain is due primarily to the performance of
large-cap issues. The holdings in mid-cap issues kept the average growth and
income fund from matching the gain of The Kent Growth and Income Fund and the
S&P 500.
The Kent Growth and Income Fund uses S&P 500 stocks as its investment
universe, but is tilted toward lower-risk issues. With a beta of 0.87, the Fund
is only 87% as volatile as the S&P 500 as a whole.
Among the stocks that contributed to the Fund's good performance were
Mellon Bank Corp., which was up 75.5%, from $30 5/8 at the beginning of 1995 to
$53 3/4 at the end of the year. With orders for new aircraft picking up, Boeing
Co. saw its stock price push forward 67.6%, from $46 3/4 to $78 3/8. The
purchase of Digital Equipment Corp. ("DEC") stock when its price began to rise
early in the third quarter also resulted in significant gains. DEC stock rose
92.9% for the year (40.5% in fourth quarter alone), from $33 1/4 to $64 1/8. DEC
was purchased for The Kent Growth and Income Fund when its price was
approximately $40.
- --------------------------------------------------------------------------------
THE KENT GROWTH AND INCOME FUND
Distribution of Net Assets as of December 31, 1995
- --------------------------------------------------
[PIE CHART APPEARS HERE]
Pie chart representing the investments owned by the Growth and
income Fund as of 12/31/95 appears on this page
<TABLE>
<S> <C>
Communications 4.15
Cash Equivalents & Net Other Assest & Liabilities 2.50
Other 22.34
Energy 14.67
Electric, Gas and Sanitary 13.26
Food and Beverage 8.06
Chemical and Drugs 6.21
Printing and Publishing 5.42
Banking 5.30
General Merchandise 4.71
Metals & Mining 4.61
Aerospace and Defense 4.51
Machinery 4.26
</TABLE>
- --------------------------------------------------------------------------------
The worst performers were generally retail stocks, though retailer TJX
Cos., Inc. was up 59.0% in the fourth quarter. It was purchased for The Kent
Growth and Income Fund at $12 and finished the year at $18 7/8. Wal-Mart was
less fortunate, reporting only a 5.3% gain for the year, from $21 1/4 to $22
3/8.
OUTLOOK
During 1996, the Fund will continue to be defensively postured,
concentrating on low beta, mid-cap issues with below-market price-to-book
ratios. We expect the retail and energy sector to perform better than the market
in 1996. Domestic oil companies are attractive because of their low betas and
sensitivity to rising oil demand.
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4
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<PAGE>
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PORTFOLIO REVIEWS
----------------------------------------
- --------------------------------------------------------------------------------
THE KENT GROWTH AND INCOME FUND
Average Annual Return as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT CLASS* INSTITUTIONAL CLASS
(inception: 12/1/92) (inception: 11/2/92)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year 29.18% 34.91%
Three Years 13.31% 14.83%
Life of Fund 13.08% 15.44%
</TABLE>
* Reflects 4.00% sales charge.
Growth of $10,000 Investment Comparison with the Standard & Poor's 500
Composite Stock Index
- --------------------------------------------------------------------------------
[PLOT POINTS TO COME]
[GRAPH APPEARS HERE]
A mountain chart comparing the growth of $10,000 invested in
institutional and investment shares of the Growth And Income Fund
and the Standard & Poor's 500 Index appears here:
Start End
Institutional Shares
Fund $10,000 $15,743
S&P 500 Index 10,000 15,984
Investment Shares
Fund $9,600 $14,606
S&P 500 Index 10,000 15,327
Past performance is no guarantee of future
performance. The investment return and principal
[GRAPH APPEARS HERE] 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 Composite Stock Index is an unmanaged
index of 500 leading stocks. Total returns reflect
the reinvestment of all dividends and capital gains
distributions.
- --------------------------------------------------------------------------------
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5
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<PAGE>
- ----------------------------------------
PORTFOLIO REVIEWS
- ----------------------------------------
THE KENT SMALL COMPANY GROWTH FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
ANDREW H. FABIANO,
CO-PORTFOLIO MANAGER
While large-cap stocks led the stock market's charge, The Kent Small
Company Growth Fund still recorded an Institutional Class total return of 23.75%
and an Investment Class total return of 23.47%, before the deduction of sales
charges.
The Russell 2000 Index, benefiting from its over-the-counter exposure,
ended 1995 with a return of 28.46%, while the average small-cap growth fund
tracked by Lipper Analytical Services recorded a return of 31.54%, boosted by
strong gains from technology over the counter stocks. The Kent Small Company
Growth Fund carries less volatility than the Russell 2000, with an average beta
of 0.88, compared to a beta of 1.00 for the Russell 2000 Index.
Financial services, technology and consumer noncyclical stocks performed
exceptionally well throughout the year. Because of efforts to reduce the cost of
health care, managed care companies were especially strong in the consumer
noncyclical sector. Within the Fund, some stocks performed exceptionally well,
in a few cases more than doubling in price by December 31, 1995. Americredit
Corp., which specializes in consumer and auto loans, was up 127%, from $6 to $13
5/8. Safeguard Scientifics, which invests in new technologies, soared 330%, from
$11 1/2 to $49 1/2; PHP Healthcare Corp., a full-service health-care company,
was up 334%, from $5 3/4 to $25, and Diana Corp., a food distribution company,
advanced 363%, from $5 3/4 to $26 5/8.
- --------------------------------------------------------------------------------
THE KENT SMALL COMPANY GROWTH FUND
Distribution of Net Assets as of December 31, 1995
- --------------------------------------------------
[PIE CHART APPEARS HERE]
Pie chart representing the investments owned by the Small Company
Growth Fund as of 12/31/95 appears on this page
<TABLE>
<S> <C>
Other Common Stocks 44.37
Cash Equivalents & Net Other Assets & Liabilites 3.11
Electric, Gas and Sanitary 10.63
Building and Construction 6.73
Chemicals & Drugs 3.69
Insurance 6.14
Manufacturing Industries 4.77
Banking 4.47
Oil and Gas Extraction 3.84
Primary Metal Industry 3.36
Retail 4.47
Electric and Electronic Machinary 4.42
</TABLE>
- --------------------------------------------------------------------------------
Consumer cyclicals, materials and some precious metals performed poorly in
1995. The Fund's worst performers were in the retail sector, including Bradlees,
Inc., which was down 90%, from $11 5/8 to $1 1/8 by December 31, 1995, and
Caldor, which was down 85%, from $22 1/4 to $3 1/4 by year end 1995.
OUTLOOK
In December we began rebalancing the portfolio, adding 120 new stocks that
account for more than 15% of the portfolio. We feel we are now well positioned
for 1996 to take advantage of the significant under performance of small-cap
value stocks over the past year.
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6
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<PAGE>
----------------------------------------
PORTFOLIO REVIEWS
----------------------------------------
- --------------------------------------------------------------------------------
THE KENT SMALL COMPANY GROWTH FUND
Average Annual Return as of December 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT CLASS* INSTITUTIONAL CLASS
(inception: 12/4/92) (inception: 11/2/92)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year 18.53% 23.75%
Three Years 11.51% 13.09%
Life of Fund 11.86% 15.43%
</TABLE>
* Reflects 4.00% sales charge.
Growth of $10,000 Investment Comparison
with the Russell 2000 Index
- --------------------------------------------------------------------------------
[PLOT POINTS TO COME]
[GRAPH APPEARS HERE]
A mountain chart comparing the growth of $10,00 invested in
institutional and investment shares of the Small Company Growth
Fund and the Russell 2000 Index appears here:
Start End
Institutional Shares
Fund $10,000 $15,742
Russell 2000 10,000 16,709
Investment Shares
Fund $9,600 $14,111
Russell 2000 10,000 15,521
Past performance is no guarantee of future
performance. The investment return and principal
[GRAPH APPEARS HERE] 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 2,000 small
capitalization stocks. Total returns reflect the
reinvestment of all dividends and capital gain
distributions.
- --------------------------------------------------------------------------------
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7
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<PAGE>
- ----------------------------------------
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 outperformed its benchmarks during 1995.
With a 13.00% Institutional Class total return and 12.86% Investment Class total
return before the deduction of sales charges, the Fund exceeded both the Morgan
Stanley Europe, Australia and Far East Index (EAFE Index), which had a return of
11.20%, and the average international fund tracked by Lipper, which gained
9.35%.
A currency hedging strategy reduced volatility and added 0.80% to the
Fund's return during 1995 as the dollar strengthened. Dollars invested in
international funds are converted to foreign currencies when securities are
purchased internationally, but are converted back to dollars when calculating
fund performance. The resulting currency translation boosted returns for
international funds when the dollar was weakening, but reduced returns when the
dollar was strengthening. The Kent International Growth Fund's hedging strategy
protected investors' international gains in a rising dollar market during 1995.
The Kent International Growth Fund benefited from its lower exposure to
Japanese stocks compared to other international funds. Japanese stocks gained
only 0.7% in 1995 because of a weak economy, an earthquake and a banking crisis.
Some other Pacific Basin stocks performed well - Hong Kong, for example, gained
22.6%, recovering its 1994 losses. The Pacific Basin, however, is dominated by
Japan, so the overall gain for Pacific Basin stocks was just 2.8% for the year.
- --------------------------------------------------------------------------------
THE KENT INTERNATIONAL GROWTH FUND
Distribution of Net Assets as of December 31, 1995
- --------------------------------------------------
[PIE CHART APPEARS HERE]
Pie chart representing the investments owned by the International
Equity Fund as of 12/31/95 appears on this page
<TABLE>
<S> <C>
Other Countries 14.57%
Cash Equivalents & Net Other Assets & Liabilities 5.54
France 7.96
Germany 9.70
Japan 33.39
Netherlands 3.55
Switzerland 5.27
United Kingdom 16.50
Italy 3.52
</TABLE>
- --------------------------------------------------------------------------------
The Kent International Growth Fund also benefited from a lack of exposure
to emerging markets, which performed poorly in 1995, and from an overweighted
exposure to European stocks. Overall, European stocks, which accounted for 60%
of the portfolio, advanced 21.6%.
U.K. stocks, which accounted for 16.5% of the portfolio, advanced 21.3%.
Stocks in Switzerland, which accounted for 5.3% of the portfolio, were up 44.1%,
while stocks in Sweden, which accounted for 1.7% of the portfolio, were up
33.4%. Lagging stocks in Europe included Germany, which gained 16.4%, and Italy,
which gained just 1%.
OUTLOOK
The Fund uses the EAFE Index as its benchmark, reflecting the broad
international diversification the Fund has grown. Small shifts in country-by-
country weightings took place at the end of 1995 to position the Fund to take
advantage of markets that are expected to improve in 1996. Because we expect
Japan's stock market to outperform in 1996, the Fund's weight in Japanese stocks
- -----
8
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<PAGE>
----------------------------------------
PORTFOLIO REVIEWS
----------------------------------------
was increased from 31% to 33%, and is currently targeted to reach 36%. In
Europe, a small percentage of holdings in the United Kingdom were shifted to
Germany and Italy. U.K. stock now accounts for 17% of the portfolio, down from
21%.
The Fund will continue to take advantage of opportunities to hedge foreign
currency exposure in 1996.
- --------------------------------------------------------------------------------
THE KENT INTERNATIONAL GROWTH FUND
Average Annual Return as of December 31, 1995
- ---------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT CLASS* INSTITUTIONAL CLASS
(inception: 12/4/92) (inception: 12/4/92)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year 8.36% 13.00%
Three Years 14.08% 15.87%
Life of Fund 13.77% 15.57%
</TABLE>
* Reflects 4.00% sales charge.
Growth of $10,000 Investment Comparison with the Morgan Stanley Europe,
Australia and Far East Index; the Morgan Stanley Europe Index and the Morgan
Stanley Pacific Index
- --------------------------------------------------------------------------------
[PLOT POINTS TO COME]
[GRAPH APPEARS HERE]
A mountain chart comparing the growth of $10,000 invested in
institutional and investment shares of the International Equity Fund,
the Morgan Stanley Pacific Index, the Morgan Stanley Europe Index and
the Morgan Stanley Europe, Australia and Far East Index appears here:
Start End
Institutional Shares
Fund $10,000 $15,601
Morgan Stanley Pacific
Index 10,000 16,495
Morgan Stanley Europe
Index 10,000 15,353
Morgan Stanley Europe,
Austraila and Far East
Index 10,000 15,597
Investment Shares
Fund $9,600 $14,868
Morgan Stanley Pacific
Index 10,000 16,495
Morgan Stanley Europe
Index 10,000 15,353
Morgan Stanley Europe
Australia and Far East
Index 10,000 15,597
Past performance is no guarantee of future
performance. The investment return and principal
[GRAPH APPEARS HERE] 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
Europe, Australia and Far East Index is an
unmanaged index of European, Australian and Far
East stocks. The Morgan Stanley Europe Index and
the Morgan Stanley Pacific Index are unmanaged
indexes of stocks in their respective regions.
Total returns reflect the reinvestment of all
dividends and capital gain distributions.
- --------------------------------------------------------------------------------
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9
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<PAGE>
- ----------------------------------------
PORTFOLIO REVIEWS
- ----------------------------------------
THE KENT INDEX EQUITY FUND
BY MICHAEL A. PETERSEN,
CO-PORTFOLIO MANAGER
AND
DAVID C. EDER,
CO-PORTFOLIO MANAGER
With an Institutional Class total return of 36.23%, and an Investment Class
total return of 35.81%, before the deduction of sales charges, The Kent Index
Equity Fund easily outperformed the average growth and income fund tracked by
Lipper Analytical Services, which gained 30.82%. The S&P 500 Index gained 37.5%.
1995 was the best year for large-cap issues since 1958. Stocks that
performed especially well during the 12 months ended December 31, 1995 included
U.S. Air, which was up 203%, opening at $4 3/8 and closing at $13 1/4; Boston
Scientific Corp., which jumped 139%, from $20 1/2 to $49, and Sun Microsystems
Corp., which rose 157%, from $17 3/4 to $45 5/8. Sun's Java, a popular Internet
product, was an important factor in Sun's 44.8% fourth-quarter gain. The stock
of First Interstate Bancorp benefited from efforts to take over the bank and
rose 102%, from $67 5/8 to $136 1/2.
- --------------------------------------------------------------------------------
THE KENT INDEX EQUITY FUND
Distribution of Net Assets as of December 31, 1995
- --------------------------------------------------
[PIE CHART APPEARS HERE]
<TABLE>
<S> <C>
Energy 9.50%
Electric, Gas & Sanitary 4.41%
Communications 10.09%
Food & Beverage 7.62%
Other 29.41%
Chemical & Drugs 10.77%
Banking 6.60%
Machinery 4.85%
General Merchandise 2.92%
Electric & Electronic Machinery 6.48%
Insurance 3.87%
Cash Equivalents & Net Other Assets & Liabilities 3.48%
</TABLE>
- --------------------------------------------------------------------------------
OUTLOOK
We do not expect returns for 1996 to approach 1995's gains. Large-cap
companies will find it difficult to sustain the growth in profits that boosted
their stocks in 1995. However, low interest rates and continuing capital inflows
by investors could help buoy the market, producing better-than-expected gains
for S&P 500 stocks.
- -----
10
- -----
<PAGE>
----------------------------------------
PORTFOLIO REVIEWS
----------------------------------------
- --------------------------------------------------------------------------------
THE KENT INDEX EQUITY FUND
Average Annual Return as of December 31, 1995
- -----------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT CLASS* INSTITUTIONAL CLASS
(inception: 11/25/92) (inception: 11/2/92)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year 30.33% 36.23%
Three Years 12.79% 14.45%
Life of Fund 12.98% 15.23%
</TABLE>
* Reflects 4.00% sales charge.
Growth of $10,000 Investment Comparison with the Standard & Poor's 500 Composite
Stock Index
- --------------------------------------------------------------------------------
[PLOT POINTS TO COME]
[GRAPH APPEARS HERE]
Pie chart representing the investments owned by the Index Equity
Fund as of 12/31/95 appears on this page
Communications 10.09
Cash Equivalents & Net Other Assets & Liabilities 3.48
Other 29.41
Energy 9.50
Electric, Gas and Sanitary 4.41
Food and Beverage 7.62
Chemical and Drugs 10.77
Banking 6.60
General Merchandise 2.92
Machinery 4.85
Insurance 3.87
Electric and Electronic Machinary 6.48
A mountain chart comparing the growth of $10,000 invested in
institutional and investment shares of the Index Equity Fund and the
S&P 500 Index appears here:
Start End
Institutional Shares
Fund $10,000 $15,653
S&P 500 10,000 15,984
Investment Shares
Fund $9,600 $15,327
S&P 500 10,000 14,594
Past performance is no guarantee of future
performance. The investment return and principal
[GRAPH APPEARS HERE] 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 Composite Stock Index is an unmanaged
index of 500 leading stocks. Total returns reflect
the reinvestment of all dividends and capital gains
distributions.
- --------------------------------------------------------------------------------
-----
11
-----
<PAGE>
INVESTMENT ADVISER
Old Kent Bank
Grand Rapids, MI 49503
DISTRIBUTOR
440 Financial Distributors, Inc.
290 Donald Lynch Boulevard
Marlboro, MA 01752
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 Index, the Morgan Stanley Europe,
Australia and Far East Index, the Morgan Stanley Europe Index, the Morgan
Stanley Pacific Index and the Russell 2000 Index are unmanaged indexes and do
not include the effects of annual and operating expenses or sales charges
experienced by the funds.
[LOGO APPEARS HERE] 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 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.
- -----
12
- -----
<PAGE>
- ------------
GROWTH AND INCOME FUND
The Kent PORTFOLIO OF INVESTMENTS
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCKS - 97.50%
ENERGY - 14.67%
107,600 Amoco Corp............................................................. $ 7,733,750
48,700 Atlantic Richfield Co.................................................. 5,393,525
117,000 Chevron Corp........................................................... 6,142,500
35,600 Dresser Industries, Inc................................................ 867,750
124,700 Exxon Corp............................................................. 9,991,588
25,000 Helmerich & Payne, Inc................................................. 743,750
58,800 Louisiana Land & Exploration Co........................................ 2,521,050
107,900 McDermott International, Inc........................................... 2,373,800
30,100 Mobil Corp............................................................. 3,371,200
78,100 Oryx Energy Co.*....................................................... 1,044,588
99,800 Peco Energy Co......................................................... 3,006,475
125,000 Phillips Petroleum Co.................................................. 4,265,625
5,500 Royal Dutch Petroleum Co., ADR......................................... 776,188
55,000 Schlumberger, Ltd...................................................... 3,808,750
101,100 Sun Co., Inc........................................................... 2,767,613
20,000 Tenneco, Inc........................................................... 992,500
59,900 Texaco, Inc............................................................ 4,702,150
-------------
60,502,802
-------------
ELECTRIC, GAS AND SANITARY - 13.26%
103,600 American Electric Power, Inc........................................... 4,195,800
97,900 Baltimore Gas & Electric Co............................................ 2,790,150
136,000 Consolidated Edison Co. of New York.................................... 4,352,000
38,900 Cooper Industries, Inc................................................. 1,429,575
131,800 Detroit Edison Co...................................................... 4,547,100
45,700 Dominion Resources, Inc................................................ 1,885,125
45,000 FPL Group, Inc......................................................... 2,086,875
19,400 Houston Industries, Inc................................................ 470,450
356,100 Niagara Mohawk Power Corp.............................................. 3,427,463
20,400 Nicor, Inc............................................................. 561,000
38,500 Northern States Power Co............................................... 1,891,313
18,700 Oneok, Inc............................................................. 427,763
163,400 Pacific Gas & Electric Co.............................................. 4,636,475
159,400 Pacificorp............................................................. 3,387,250
170,400 Public Service Enterprise Group, Inc................................... 5,218,500
318,100 SCE Corp............................................................... 5,646,275
111,700 Texas Utilities Co..................................................... 4,593,663
75,700 Union Electric Co...................................................... 3,160,475
-------------
54,707,252
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FOOD AND BEVERAGE - 8.06%
76,700 Anheuser-Busch Cos., Inc............................................... $ 5,129,313
195,665 Archer-Daniels-Midland Co.............................................. 3,521,970
61,300 Campbell Soup Co....................................................... 3,678,000
35,900 Conagra, Inc........................................................... 1,480,875
62,000 CPC International, Inc................................................. 4,254,750
69,800 Fleming Cos., Inc...................................................... 1,439,625
54,700 General Mills, Inc..................................................... 3,158,925
25,100 Kellogg Co............................................................. 1,938,975
105,200 McDonald's Corp........................................................ 4,747,150
20,000 Quaker Oats Co......................................................... 690,000
92,600 Seagram Co., Ltd....................................................... 3,206,275
-------------
33,245,858
-------------
CHEMICAL AND DRUGS - 6.21%
55,100 Abbott Laboratories.................................................... 2,300,425
111,300 Bristol-Myers Squibb Co................................................ 9,557,888
21,200 Clorox Co.............................................................. 1,518,450
19,200 Dow Chemical Co........................................................ 1,351,200
91,000 duPont (E.I.) De Nemours & Co.......................................... 6,358,625
9,700 Monsanto Co............................................................ 1,188,250
16,700 Pfizer, Inc............................................................ 1,052,100
24,600 Procter & Gamble Co.................................................... 2,041,800
4,500 Schering-Plough Corp................................................... 246,375
-------------
25,615,113
-------------
PRINT AND PUBLISHING - 5.42%
94,000 Dun & Bradstreet Corp.................................................. 6,086,500
96,100 Gannett Co., Inc....................................................... 5,898,138
14,000 McGraw-Hill Cos., Inc.................................................. 1,219,750
114,200 Moore Corp., Ltd....................................................... 2,126,975
27,900 New York Times, Co., Class A........................................... 826,538
47,500 Tribune Co............................................................. 2,903,438
69,300 Union Camp Corp........................................................ 3,300,413
-------------
22,361,752
-------------
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
- ------------
GROWTH AND INCOME FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BANKING - 5.30%
56,200 Bankers Trust New York Corp............................................ $ 3,737,300
27,400 Boatmen's Bancshares, Inc.............................................. 1,119,975
48,000 Corestates Financial Corp.............................................. 1,818,000
15,000 First Union Corp....................................................... 834,375
30,400 Keycorp................................................................ 1,102,000
44,900 Mellon Bank Corp....................................................... 2,413,375
42,300 Morgan (J.P.) & Co., Inc............................................... 3,394,575
30,000 National City Corp..................................................... 993,750
70,700 Norwest Corp........................................................... 2,333,100
10,000 Suntrust Banks, Inc.................................................... 685,000
20,000 U.S. Bancorp........................................................... 672,500
60,000 Wachovia Corp.......................................................... 2,745,000
-------------
21,848,950
-------------
GENERAL MERCHANDISE - 4.71%
30,400 Penney (J.C.), Inc..................................................... 1,447,800
10,000 Sears Roebuck & Co..................................................... 390,000
70,000 TJX Cos., Inc.......................................................... 1,321,250
23,700 Unilever, ADR.......................................................... 3,335,775
545,600 Wal-Mart Stores, Inc................................................... 12,207,800
55,200 Woolworth Corp......................................................... 717,600
-------------
19,420,225
-------------
METALS AND MINING - 4.61%
27,200 Aluminum Co. of America................................................ 1,438,200
74,400 Barrick Gold Corp...................................................... 1,962,300
46,200 Cyprus Amax Minerals Co................................................ 1,206,975
100,700 Echo Bay Mines, Ltd.................................................... 1,044,763
28,000 Inland Steel Industries, Inc........................................... 703,500
129,400 Minnesota Mining & Manufacturing Co.................................... 8,572,750
40,608 Newmont Mining Corp.................................................... 1,837,512
18,500 Phelps Dodge Corp...................................................... 1,151,625
35,000 USX-U.S. Steel Group, Inc.............................................. 1,076,250
-------------
18,993,875
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
AEROSPACE AND DEFENSE - 4.51%
27,800 Boeing Co.............................................................. $ 2,178,825
41,800 Lockheed Martin Corp................................................... 3,302,200
106,200 Raytheon Co............................................................ 5,017,950
77,900 Rockwell International Corp............................................ 4,118,963
42,100 United Technologies Corp............................................... 3,994,238
-------------
18,612,176
-------------
ELECTRICAL AND ELECTRONIC MACHINERY - 4.26%
244,100 General Electric Co.................................................... 17,575,200
-------------
COMMUNICATIONS - 4.15%
40,000 Alltel Corp............................................................ 1,180,000
122,700 American Telephone & Telegraph Corp.................................... 7,944,825
33,100 NYNEX Corp............................................................. 1,787,400
5,500 Pacific Enterprises.................................................... 155,375
128,500 Pacific Telesis Group.................................................. 4,320,813
87,700 Tele-Communications, Inc., Class A*.................................... 1,743,038
-------------
17,131,451
-------------
MACHINERY - 3.87%
63,300 Digital Equipment Corp.*............................................... 4,059,113
38,000 General Signal Corp.................................................... 1,230,250
8,200 Ingersoll-Rand Co...................................................... 288,025
97,900 International Business Machines Corp................................... 8,982,325
30,000 Pitney-Bowes, Inc...................................................... 1,410,000
-------------
15,969,713
-------------
TOBACCO - 3.16%
69,800 American Brands, Inc................................................... 3,114,812
60,300 Philip Morris Cos., Inc................................................ 5,457,150
133,900 UST, Inc............................................................... 4,468,913
-------------
13,040,875
-------------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
- ------------
GROWTH AND INCOME FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TRANSPORTATION EQUIPMENT - 3.01%
37,800 General Motors Corp.................................................... $ 1,998,675
35,300 Genuine Parts Co....................................................... 1,447,300
137,700 Navistar International*................................................ 1,445,850
50,100 Textron, Inc........................................................... 3,381,750
53,200 TRW, Inc............................................................... 4,123,000
-------------
12,396,575
-------------
INSURANCE - 2.51%
32,600 Aetna Life & Casualty Co............................................... 2,257,550
64,500 Alexander & Alexander Services, Inc.................................... 1,225,500
26,600 Cigna Corp............................................................. 2,746,450
37,000 Marsh & McLennan Cos................................................... 3,283,750
15,200 St. Paul Cos., Inc..................................................... 845,500
-------------
10,358,750
-------------
PAPER - 1.64%
178,600 International Paper Co................................................. 6,764,475
-------------
TRANSPORTATION - 1.46%
31,000 AMR Corp.*............................................................. 2,301,750
20,600 CSX Corp............................................................... 939,875
27,400 Norfolk Southern Corp.................................................. 2,174,875
49,200 Yellow Corp............................................................ 608,850
-------------
6,025,350
-------------
BUILDING MATERIALS - 1.42%
15,700 Briggs & Stratton Corp................................................. 680,988
107,900 Home Depot, Inc........................................................ 5,165,713
-------------
5,846,701
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MEDICAL SUPPLIES - 1.23%
81,200 Bausch & Lomb, Inc..................................................... $ 3,217,550
44,000 Baxter International, Inc.............................................. 1,842,500
-------------
5,060,050
-------------
APPAREL STORES - 1.13%
136,700 Limited, Inc........................................................... 2,375,163
81,200 Reebok International, Ltd.............................................. 2,293,900
-------------
4,669,063
-------------
FINANCIAL SERVICES - 0.69%
80,500 Salomon, Inc........................................................... 2,857,750
-------------
BUILDING AND CONSTRUCTION - 0.65%
58,400 PPG Industries, Inc.................................................... 2,671,800
-------------
RETAIL - 0.43%
50,000 American Stores Co..................................................... 1,337,500
14,700 Walgreen Co............................................................ 439,163
-------------
1,776,663
-------------
MANUFACTURING INDUSTRIES - 0.37%
43,100 Corning, Inc........................................................... 1,379,200
5,900 Jostens, Inc........................................................... 143,075
-------------
1,522,275
-------------
LUMBER AND WOOD - 0.31%
29,600 Weyerhaeuser Co........................................................ 1,280,200
-------------
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
- ------------
GROWTH AND INCOME FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONGLOMERATES - 0.26%
50,000 Ogden Corp............................................................. $ 1,068,750
-------------
TEXTILES - 0.20%
33,100 Fruit of The Loom, Inc., Class A*...................................... 806,813
-------------
TOTAL COMMON STOCKS.................................................... 402,130,457
(Cost $338,847,577) -------------
<CAPTION>
PAR VALUE
---------
<C> <S> <C>
COMMERCIAL PAPER - 3.68%
$15,189,479 General Motors Acceptance Corp.
6.05%,01/02/1996....................................................... 15,189,479
-------------
TOTAL COMMERCIAL PAPER................................................. 15,189,479
(Cost $15,189,479) -------------
TOTAL INVESTMENTS - 101.18%............................................................ 417,319,936
(Cost $354,037,056)** -------------
NET OTHER ASSETS AND LIABILITIES - (1.18)%............................................. (4,869,344)
-------------
TOTAL NET ASSETS - 100.00%............................................................. $ 412,450,592
=============
</TABLE>
- ----------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $354,389,659.
ADR American Depository Receipt.
See Notes to Financial Statements.
16
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCK - 96.89%
ELECTRIC, GAS AND SANITARY - 10.63%
94,900 Allwaste, Inc.*........................................................ $ 450,775
74,200 American Waste Services, Inc., Class A*................................ 148,400
16,300 Aquarion Co............................................................ 415,650
60,400 Aquila Gas Pipeline Corp............................................... 777,650
38,150 Atmos Energy Corp...................................................... 877,450
17,700 Bangor Hydro-Electric Co............................................... 203,550
33,100 Bay State Gas Co....................................................... 918,525
54,400 Berry Petroleum Co., Class A........................................... 550,800
35,700 Black Hills Corp....................................................... 883,575
100,200 Calgon Carbon Corp..................................................... 1,202,400
15,500 California Water Service Co............................................ 505,688
22,050 Cascade Natural Gas Corp............................................... 355,566
42,700 Central Hudson Gas & Electric Corp..................................... 1,318,363
80,400 Central Maine Power Co................................................. 1,155,750
29,200 Central Vermont Public Service Corp.................................... 390,551
41,700 Chesapeake Energy Corp.*............................................... 1,386,525
9,000 Chesapeake Utilities Corp.............................................. 131,625
26,100 Cilcorp, Inc........................................................... 1,105,988
26,100 Commonwealth Energy System............................................. 1,167,975
10,400 Compania Boliviana De Energia
Electrica, SA....................................................... 345,800
21,700 Connecticut Energy Corp................................................ 482,825
24,600 Connecticut Natural Gas Corp........................................... 575,026
56,100 Dames & Moore, Inc..................................................... 680,213
8,100 Davis Water & Waste Industries, Inc.................................... 117,450
34,400 Empire District Electric Co............................................ 614,901
27,100 Energen Corp........................................................... 653,788
31,400 Energy Ventures, Inc.*................................................. 792,850
7,900 Energynorth, Inc....................................................... 140,225
17,000 Environmental Elements Corp.*.......................................... 34,000
16,200 E'Town Corp............................................................ 488,026
11,500 Green Mountain Power Corp.............................................. 319,125
55,900 Indiana Energy, Inc.................................................... 1,334,613
88,100 International Technology Corp.*........................................ 231,263
23,700 Interstate Power Co.................................................... 788,025
25,500 Ionics, Inc.*.......................................................... 1,109,250
81,700 Kaneb Services, Inc.*.................................................. 183,825
33,000 Kimmins Environmental Service Corp.*................................... 82,500
51,490 K.N. Energy, Inc....................................................... 1,499,646
38,900 Laclede Gas Co......................................................... 821,763
68,900 Louis Dreyfus Natural Gas Corp.*....................................... 1,042,113
61,400 Mid-American Waste Systems, Inc.*...................................... 214,900
43,500 New Jersey Resources Corp.............................................. 1,310,438
71,600 NGC Corp............................................................... 635,450
15,700 North Carolina National Gas............................................ 392,500
19,000 Northwestern Public Service Co......................................... 532,000
22,700 NUI Corp............................................................... 397,250
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ELECTRIC, GAS AND SANITARY (CONTINUED)
38,700 OHM Corp.*............................................................. $ 285,413
33,800 Orange & Rockland Utilities, Inc....................................... 1,208,350
13,700 Pennsylvania Enterprises, Inc.......................................... 518,888
46,100 Public Service Co. of North Carolina, Inc.............................. 824,038
8,600 Raytech Corp.*......................................................... 24,725
149,700 Rollins Environmental Services, Inc.*.................................. 430,388
41,300 Sanifill, Inc.*........................................................ 1,378,388
139,000 Sithe-Energies, Inc.*.................................................. 834,000
26,600 South Jersey Industries, Inc........................................... 615,126
19,500 Southern California Water Co........................................... 394,875
28,600 Southern Union Co.*.................................................... 722,150
52,500 Southwest Gas Corp..................................................... 925,313
63,700 Southwestern Energy Co................................................. 812,175
9,700 St. Joseph Light & Power Co............................................ 344,350
26,800 TNP Enterprises, Inc................................................... 502,500
28,200 Trigen Energy Corp..................................................... 549,900
398,500 Tucson Electric Power Co.*............................................. 1,294,946
68,700 United Meridian Corp.*................................................. 1,193,663
76,900 United Water Resources, Inc............................................ 922,800
53,300 U.S.A. Waste Services, Inc.*........................................... 1,006,038
43,800 Wahlco Environmental Systems, Inc.*.................................... 65,700
58,600 Washington Energy Co................................................... 1,091,425
63,900 Western Gas Resources, Inc............................................. 1,030,388
35,800 Western Waste Industries*.............................................. 980,026
25,500 Yankee Energy System, Inc.............................................. 643,875
30,600 Zurn Industries, Inc................................................... 654,076
-------------
49,020,087
-------------
BUILDING AND CONSTRUCTION - 6.73%
39,500 AAR Corp............................................................... 869,000
9,700 Ameron, Inc............................................................ 364,963
18,300 AMREP Corp.*........................................................... 107,513
33,000 AMRE, Inc.............................................................. 482,626
20,600 Beazer Homes USA, Inc.*................................................ 424,876
33,900 Blanch (E.W.) Holdings................................................. 792,413
43,700 Brooke Group, Ltd...................................................... 393,300
57,400 Calmat Co.............................................................. 1,047,550
292,300 Campbell Resources, Inc.*.............................................. 292,300
17,300 Catalina Lighting, Inc.*............................................... 84,338
14,600 Cavalier Homes, Inc.................................................... 302,950
57,000 Centex Construction Products, Inc.*.................................... 819,376
37,700 Champion Enterprises, Inc.*............................................ 1,163,988
29,500 Cleveland-Cliffs, Inc.................................................. 1,209,500
24,800 Congoleum Corp., Class A*.............................................. 266,600
17,200 Continental Homes Holding Corp......................................... 423,551
10,700 Culbro Corp.*.......................................................... 525,638
49,500 Dimon, Inc............................................................. 872,438
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BUILDING AND CONSTRUCTION (CONTINUED)
36,900 Dravo Corp.*........................................................... $ 442,800
21,900 Elcor Corp............................................................. 476,325
17,700 Eljer Industries, Inc.*................................................ 190,275
49,800 Falcon Building Products, Inc., Class A*............................... 479,325
22,000 Furon Co............................................................... 440,000
24,800 General Physics Corp................................................... 80,600
28,450 Graco, Inc............................................................. 867,725
15,000 Hughes Supply, Inc..................................................... 423,750
20,700 Insteel Industries, Inc................................................ 142,313
73,000 Kasler Holding Co.*.................................................... 474,500
80,300 Kaufman & Broad Home Corp.............................................. 1,194,463
71,500 Lennar Corp............................................................ 1,796,438
47,300 MDC Holdings, Inc...................................................... 337,013
41,200 Medusa Corp............................................................ 1,091,800
22,400 Mestek, Inc.*.......................................................... 263,200
21,500 Morgan Productions, Ltd.*.............................................. 126,313
82,000 Morrison Knudsen Corp.*................................................ 348,500
1,600 Myers (L.E.) Co. Group................................................. 17,080
21,800 M/I Schottenstein Homes, Inc.*......................................... 256,150
31,600 Nortek, Inc.*.......................................................... 371,300
47,700 Oakwood Homes Corp..................................................... 1,830,488
99,000 Payless Cashways, Inc.*................................................ 420,750
36,000 Ply-Gem Industries, Inc................................................ 585,000
88,900 Premdor, Inc.*......................................................... 688,975
152,500 Presley Cos., Class A*................................................. 266,875
26,200 Republic Gypsum Co..................................................... 366,800
37,830 RMI Titanium Co.*...................................................... 302,640
38,400 Ryland Group, Inc...................................................... 537,600
42,800 Southdown, Inc.*....................................................... 834,600
57,500 Spartech Corp.......................................................... 402,500
21,587 Standard Commercial Corp.*............................................. 213,172
75,900 Standard-Pacific Corp.................................................. 474,375
36,400 Stone & Webster, Inc................................................... 1,305,850
12,700 Thackeray Corp.*....................................................... 60,325
22,200 Thor Industries, Inc................................................... 430,126
75,400 Toll Brothers, Inc.*................................................... 1,734,200
19,700 Washington Homes, Inc.*................................................ 108,350
17,651 Zemex Corp.*........................................................... 176,510
-------------
31,001,926
-------------
INSURANCE - 6.14%
25,400 Acceptance Insurance Cos., Inc.*....................................... 377,826
35,300 Acordia, Inc........................................................... 1,054,588
96,900 American Annuity Group, Inc............................................ 1,150,688
17,500 American Eagle Group, Inc.............................................. 194,688
34,400 American Heritage Life Investment Corp................................. 786,901
22,100 Avemco Corp............................................................ 353,600
36,700 Capital Re Corp........................................................ 1,128,525
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
INSURANCE (CONTINUED)
43,500 Capitol American Financial Corp........................................ $ 984,188
38,200 Capsure Holdings Corp.*................................................ 673,276
44,600 Crawford & Co., Class A................................................ 713,600
28,900 Executive Risk, Inc.................................................... 838,100
32,900 Fidelity National Financial, Inc....................................... 612,763
14,573 Financial Security Assurance Holdings, Ltd............................. 362,503
28,300 First American Financial Corp.......................................... 757,025
35,210 Fremont General Corp................................................... 1,293,968
32,300 Frontier Insurance Group, Inc.......................................... 1,033,600
34,500 Gallagher (Arthur J.) & Co............................................. 1,285,125
27,500 HCC Insurance Holdings, Inc.*.......................................... 1,017,500
36,600 Hilb, Rogal & Hamilton Co.............................................. 489,526
38,900 Integon Corp........................................................... 802,313
38,500 Life Re Corp........................................................... 962,500
21,600 MMI Cos., Inc.......................................................... 518,400
73,500 National Education Corp.*.............................................. 597,188
28,200 NYMAGIC, Inc........................................................... 479,400
30,600 Orion Capital Corp..................................................... 1,327,275
49,000 Penncorp Financial Group, Inc.......................................... 1,439,375
42,100 Reinsurance Group of America........................................... 1,541,913
14,950 RLI Corp............................................................... 373,750
21,200 Security-Connecticut Corp.............................................. 575,051
45,400 Sphere Drake Holdings, Ltd............................................. 635,600
25,700 Vesta Insurance Group, Inc............................................. 1,400,650
21,900 Warner Insurance Services, Inc.*....................................... 32,850
30,100 Washington National Corp............................................... 831,513
22,675 Waterhouse Investors Services, Inc..................................... 561,206
14,700 Westbridge Capital Corp.*.............................................. 97,388
47,000 Zenith National Insurance Co........................................... 1,004,626
-------------
28,288,988
-------------
MANUFACTURING INDUSTRIES - 4.77%
18,700 Alamo Group, Inc....................................................... 336,600
28,400 Alliant Techsystems, Inc.*............................................. 1,437,750
28,800 Ameriquest Technologies, Inc.*......................................... 25,201
33,900 Applied Power, Inc., Class A........................................... 1,017,000
14,200 Artra Group, Inc.*..................................................... 86,976
44,600 Banner Aerospace, Inc.*................................................ 256,450
40,800 Blyth Industries, Inc.*................................................ 1,203,600
61,300 BMC Industries, Inc.................................................... 1,425,225
24,900 Chart Industries, Inc.................................................. 189,863
22,800 Coastcast Corp.*....................................................... 230,851
21,200 Computer Task Group, Inc............................................... 418,700
12,500 Curtiss-Wright Corp.................................................... 671,875
27,100 ESCO Electronics Corp.*................................................ 254,063
39,900 Fairchild Corp., Class A*.............................................. 339,150
18,100 Hexcel Corp.*.......................................................... 203,625
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MANUFACTURING INDUSTRIES (CONTINUED)
42,100 IMO Industries, Inc.*.................................................. $ 289,438
13,900 Keystone Consolidated Industries, Inc.*................................ 159,850
37,500 OEA, Inc............................................................... 1,120,313
48,800 Outboard Marine Corp................................................... 994,301
43,087 Paxar Corp.*........................................................... 570,903
45,550 Precision Castparts Corp............................................... 1,810,613
44,775 Rohr, Inc.*............................................................ 643,641
19,400 Sparton Corp.*......................................................... 84,876
14,000 SPS Technologies, Inc.*................................................ 747,251
36,700 Standex International Corp............................................. 1,201,925
17,600 Starrett (L.S.) Co., Class A........................................... 455,401
33,400 Sturm Ruger & Co., Inc................................................. 914,326
34,700 Talley Industries, Inc.*............................................... 299,288
5,600 TCC Industries, Inc.*.................................................. 11,200
41,900 Thiokol Corp........................................................... 1,419,363
25,000 Thomas Industries, Inc................................................. 587,500
19,500 Tokheim Corp.*......................................................... 131,625
12,600 Transtechnology Corp................................................... 170,100
49,000 Tyler Corp.*........................................................... 134,750
43,400 UNC, Inc.*............................................................. 260,400
30,200 United Industrial Corp................................................. 173,650
31,400 United States Can Corp.*............................................... 423,900
18,600 Watkins-Johnson Co..................................................... 813,750
21,000 Whittaker Corp.*....................................................... 456,750
-------------
21,972,043
-------------
BANKING - 4.47%
37,500 Centura Banks, Inc..................................................... 1,317,188
102,000 City National Corp..................................................... 1,428,000
41,700 Coast Savings Financial, Inc.*......................................... 1,443,863
30,300 Colonial Bancgroup, Inc................................................ 977,175
31,900 Commercial Federal Corp................................................ 1,204,225
127,900 Dime Bancorp., Inc.*................................................... 1,486,838
40,115 Downey Financial Corp.................................................. 877,516
38,800 F & M National Corp.................................................... 776,000
9,646 First Banks America, Inc.*............................................. 118,164
55,600 First Commonwealth Financial Corp...................................... 973,000
18,326 First Republic Bancorp., Inc.*......................................... 240,529
28,850 Firstbank Puerto Rico.................................................. 645,519
26,300 FirstFed Financial Corp.*.............................................. 371,488
91,800 Glendale Federal Savings Bank*......................................... 1,606,500
29,900 Guaranty National Corp................................................. 459,713
31,400 New York Bancorp., Inc................................................. 706,500
41,900 North Fork Bancorp., Inc............................................... 1,057,975
43,700 PEC Israel Economic Corp.*............................................. 1,054,263
14,400 PonceBank.............................................................. 165,600
15,800 Sterling Bancorp....................................................... 197,500
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BANKING (CONTINUED)
71,900 TCF Financial Corp..................................................... $ 2,381,688
60,375 Westcorp............................................................... 1,116,938
-------------
20,606,182
-------------
RETAIL - 4.47%
12,400 Alexander's, Inc.*..................................................... 861,800
57,200 AnnTaylor Stores Corp.*................................................ 586,300
92,100 Bombay Co., Inc.*...................................................... 587,138
27,900 Bradlee's, Inc......................................................... 31,388
100,900 Burlington Coat Factory Warehouse Corp.*............................... 1,034,225
41,100 Caldor Corp.*.......................................................... 133,575
40,800 Carson Pirie Scott & Co.*.............................................. 810,901
70,500 Cash America International, Inc........................................ 387,750
50,300 Chaus (Bernard), Inc.*................................................. 182,338
51,700 Claire's Stores, Inc................................................... 911,213
122,100 CML Group, Inc......................................................... 625,763
25,800 Cole National Corp., Class A*.......................................... 357,976
50,100 Fay's, Inc............................................................. 375,750
16,600 Frederick's of Hollywood, Inc., Class A................................ 70,550
14,800 Frederick's of Hollywood, Inc., Class B................................ 57,350
25,500 Galoob (Lewis) Toys, Inc.*............................................. 299,625
54,924 General Host Corp.*.................................................... 219,696
26,100 Gottschalks, Inc.*..................................................... 137,025
83,200 Handleman Co........................................................... 478,400
26,500 Hi-Lo Automotive*...................................................... 135,813
35,000 Hills Stores Co.*...................................................... 345,626
25,400 Intertan, Inc.*........................................................ 184,150
73,400 Levitz Furniture, Inc.*................................................ 247,725
13,400 Luria (L.) & Son, Inc.*................................................ 68,675
64,600 MacFrugal's Bargains-Close Outs, Inc.*................................. 904,400
85,000 Musicland Stores Corp.*................................................ 361,250
76,100 Neiman-Marcus Group, Inc............................................... 1,788,350
17,400 Oneita Industries, Inc.*............................................... 113,100
136,400 Petrie Stores Corp.*................................................... 375,100
93,540 Pier 1 Imports, Inc.................................................... 1,064,018
23,500 Rex Stores Corp.*...................................................... 417,125
53,250 Russ Berrie & Co., Inc................................................. 672,282
79,400 Shopko Stores, Inc..................................................... 893,250
47,600 Smart & Final, Inc..................................................... 1,011,500
16,950 Sport Supply Group, Inc................................................ 141,957
51,700 Sports Authority, Inc.*................................................ 1,053,388
49,000 Sports & Recreation, Inc.*............................................. 349,125
43,900 Syms Corp.*............................................................ 329,250
86,000 Tyco Toys, Inc.*....................................................... 387,000
50,900 Unifirst Corp.......................................................... 916,200
79,300 Value City Department Stores, Inc.*.................................... 535,275
42,600 Venture Stores Inc..................................................... 143,776
-------------
20,587,098
-------------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ELECTRICAL AND ELECTRONIC MACHINERY - 4.42%
30,600 Aeroflex, Inc.*........................................................ $ 130,050
48,200 Augat, Inc............................................................. 825,426
26,000 Bairnco Corp........................................................... 149,500
50,010 Baldor Electric Co..................................................... 1,006,451
16,153 Bell Industries, Inc.*................................................. 363,443
24,300 Core Industries, Inc................................................... 312,863
12,800 CTS Corp............................................................... 483,200
63,000 Dallas Semiconductor Corp.............................................. 1,307,250
39,600 DDL Electronics, Inc.*................................................. 103,950
14,000 EDO Corp.*............................................................. 70,000
16,100 Esterline Technologies Corp.*.......................................... 380,363
19,900 Fluke Corp............................................................. 751,225
49,100 Genrad, Inc.*.......................................................... 472,588
12,800 Gleason Corp........................................................... 416,000
15,300 Hubbell, Inc., Class A................................................. 950,513
24,300 Kent Electronics Corp.*................................................ 1,418,513
23,900 Kollmorgen Corp........................................................ 262,900
24,757 Kuhlman Corp........................................................... 309,463
32,900 Lamson & Sessions Co.*................................................. 254,975
25,800 Logicon, Inc........................................................... 709,500
60,300 Magnetek, Inc.*........................................................ 489,938
37,600 Marshall Industries, Inc.*............................................. 1,207,900
4,600 MYR Group, Inc......................................................... 48,875
43,300 Oak Industries, Inc.*.................................................. 811,875
27,100 Pacific Scientific Co.................................................. 670,725
28,200 Park Electrochemical Corp.............................................. 930,600
26,600 QMS, Inc.*............................................................. 119,700
59,800 Rexel, Inc.*........................................................... 807,300
14,900 SL Industries, Inc..................................................... 108,025
14,200 Tech-Sym Corp.*........................................................ 452,625
19,100 Three-Five Systems, Inc.*.............................................. 322,313
33,700 Titan Corp.*........................................................... 240,113
17,430 Titan Holdings, Inc.................................................... 250,557
30,100 Unitrode Corp.*........................................................ 850,325
29,000 Waxman Industries, Inc.*............................................... 23,562
6,700 Whitehall Corp.*....................................................... 224,450
30,400 Wyle Laboratories...................................................... 1,067,801
157,269 Zenith Electronics Corp.*.............................................. 1,081,225
-------------
20,386,082
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
OIL AND GAS EXTRACTION - 3.84%
56,400 Cabot Oil & Gas Corp., Class A......................................... $ 824,850
39,600 Cross Timbers Oil Co................................................... 697,951
29,800 Daniel Industries, Inc................................................. 424,650
34,200 Gerrity Oil & Gas Corp.*............................................... 136,800
31,300 Getty Petroleum Corp................................................... 422,550
29,800 Giant Industries, Inc.................................................. 365,050
73,000 Global Natural Resources, Inc.*........................................ 766,500
49,000 Goodrich Petroleum Corp.*.............................................. 39,813
27,100 HS Resources, Inc.*.................................................... 348,913
31,900 International Colin Energy Corp.*...................................... 151,525
28,400 KCS Energy, Inc........................................................ 426,000
158,800 Mesa, Inc.*............................................................ 595,500
41,300 Newfield Exploration Co.*.............................................. 1,115,100
27,200 Nuevo Energy Co.*...................................................... 608,601
59,500 Oceaneering International, Inc.*....................................... 766,063
136,700 Parker Drilling Co.*................................................... 837,288
78,100 Quaker State Corp...................................................... 986,013
35,800 RPC Energy Services, Inc.*............................................. 326,676
89,000 Smith International, Inc.*............................................. 2,091,500
74,600 Snyder Oil Corp........................................................ 904,525
29,500 Stone Energy Corp.*.................................................... 453,563
16,560 Swift Energy Co.*...................................................... 198,720
62,000 Tesoro Petroleum Corp.*................................................ 534,751
51,800 Unit Corp.*............................................................ 246,050
23,400 USX-Delhi Group........................................................ 242,776
82,700 Varco International, Inc.*............................................. 992,400
50,000 Vintage Petroleum, Inc................................................. 1,125,000
67,600 Wainoco Oil Corp.*..................................................... 219,700
23,940 Wilshire Oil Co. of Texas.............................................. 140,648
22,200 Wiser Oil Co........................................................... 266,400
13,200 World Fuel Services Corp............................................... 209,550
78,820 Zapata Corp.*.......................................................... 246,313
-------------
17,711,739
-------------
CHEMICAL AND DRUGS - 3.69%
71,800 Acuson Corp.*.......................................................... 888,525
49,600 Alpharma, Inc., Class A................................................ 1,295,800
37,000 Arcadian Corp.......................................................... 716,876
27,200 Bindley Western Industries, Inc........................................ 462,400
35,100 Biocraft Laboratories, Inc.*........................................... 465,075
27,300 Biowhittaker, Inc.*.................................................... 208,163
24,500 Chemed Corp............................................................ 952,438
11,600 Desoto, Inc.*.......................................................... 40,600
50,500 First Mississippi Corp................................................. 1,338,250
41,900 Foxmeyer Health Corp.*................................................. 1,120,825
23,500 Guardsman Products, Inc................................................ 314,313
24,500 Helene Curtis Industries, Inc.......................................... 774,813
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CHEMICAL AND DRUGS (CONTINUED)
61,223 ICN Pharmaceuticals, Inc............................................... $ 1,178,543
22,000 Learonal, Inc.......................................................... 506,000
56,200 Lilly Industries, Inc., Class A........................................ 716,550
33,000 Maybelline, Inc........................................................ 1,196,250
29,789 Molecular Biosystems, Inc.*............................................ 204,800
20,200 NCH Corp............................................................... 1,166,550
36,300 Pharmaceutical Resources, Inc.*........................................ 272,250
28,900 Philadelphia Suburban Corp............................................. 599,675
34,700 Rexene Corp............................................................ 373,025
19,113 Schawk, Inc............................................................ 126,624
24,800 Scott's Liquid Gold, Inc............................................... 71,300
138,000 Sterling Chemicals, Inc.*.............................................. 1,121,251
54,000 Univar Corp............................................................ 587,251
44,100 Windmere Corp.......................................................... 314,213
-------------
17,012,360
-------------
PRIMARY METAL INDUSTRY - 3.36%
21,100 Amcast Industrial Corp................................................. 385,075
73,100 Birmingham Steel Corp.................................................. 1,087,363
29,600 Carpenter Technology Corp.............................................. 1,217,300
73,700 Chaparral Steel Co..................................................... 1,234,475
17,900 Cold Metal Products, Inc.*............................................. 85,025
38,450 Commercial Intertech Corp.............................................. 696,907
37,633 Commercial Metals Co................................................... 931,417
37,600 Geneva Steel Co., Class A*............................................. 258,501
77,200 Goldcorp, Inc., Class A................................................ 907,100
34,900 Handy & Harman......................................................... 575,850
22,200 Huntco, Inc., Class A.................................................. 341,326
28,500 Imco Recycling, Inc.................................................... 698,250
10,500 International Aluminum Corp............................................ 301,875
131,400 Kaiser Aluminum Corp.*................................................. 1,708,200
36,400 Lukens, Inc............................................................ 1,046,500
37,500 Nord Resources Corp.*.................................................. 84,375
73,100 Northgate Exploration, Ltd.*........................................... 63,963
34,200 NS Group, Inc.*........................................................ 85,500
48,000 Oregon Steel Mills, Inc................................................ 672,000
11,700 Proler International Corp.*............................................ 87,750
25,400 Reliance Steel & Aluminum Co........................................... 527,050
26,600 Todd Shipyards Corp.*.................................................. 156,275
23,297 Tredegar Industries, Inc............................................... 757,153
90,700 WCI Steel, Inc.*....................................................... 396,813
107,900 Weirton Steel Corp.*................................................... 445,088
68,600 WHX Corp*.............................................................. 746,025
-------------
15,497,156
-------------
BUSINESS SERVICES - 3.09%
47,400 Airborne Freight Corp.................................................. 1,262,025
74,900 Americredit Corp.*..................................................... 1,020,513
25,000 Amvestors Financial Corp............................................... 293,750
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BUSINESS SERVICES (CONTINUED)
103,600 Anacomp, Inc.*......................................................... $ 16,188
29,700 Barrett Resources Corp.*............................................... 872,438
24,900 Berlitz International, Inc.*........................................... 410,850
57,500 Borg-Warner Security Corp.*............................................ 718,750
48,900 CDI Corp.*............................................................. 880,200
48,500 Church & Dwight Co., Inc............................................... 897,250
34,200 Continuum, Inc.*....................................................... 1,350,900
19,500 ECC International Corp.*............................................... 214,500
23,300 GRC International, Inc.*............................................... 894,138
21,800 Grubb & Ellis Co.*..................................................... 40,875
29,800 ITT Educational Services, Inc.*........................................ 733,826
31,800 Mutual Risk Management, Ltd............................................ 1,454,850
15,800 Nashua Corp............................................................ 215,275
36,800 New England Business Service, Inc...................................... 800,400
21,900 Seitel, Inc.*.......................................................... 774,713
14,100 Union Corp.*........................................................... 260,850
24,800 U.S. Delivery Systems, Inc.*........................................... 719,200
23,900 Wackenhut Corp., Class A............................................... 430,200
-------------
14,261,691
-------------
MEDICAL SERVICES - 2.72%
13,100 Advocat, Inc.*......................................................... 145,738
36,500 American Medical Response, Inc.*....................................... 1,186,250
52,400 Coastal Healthcare Group, Inc.*........................................ 707,400
5,400 Comprehensive Care Corp.*.............................................. 46,575
98,800 Coram Healthcare Corp.*................................................ 432,251
16,900 DVI, Inc.*............................................................. 236,600
42,270 Grancare, Inc.*........................................................ 612,915
29,400 Health Images, Inc..................................................... 213,150
33,100 Health Plan Service Group*............................................. 827,500
14,000 Hospital Staffing Services, Inc.*...................................... 28,000
32,200 Living Centers of America, Inc.*....................................... 1,127,000
43,800 Multicare Cos., Inc.*.................................................. 1,051,200
161,900 Novacare, Inc.*........................................................ 829,738
28,900 PHP Healthcare Corp.*.................................................. 722,500
41,000 Regency Health Services, Inc.*......................................... 415,126
46,400 Rightchoice Managed Care, Class A*..................................... 603,200
36,300 Sierra Health Services, Inc.*.......................................... 1,152,525
16,300 United American Healthcare*............................................ 163,000
31,200 United Wisconsin Services, Inc......................................... 686,400
30,700 Universal Health Services, Class B*.................................... 1,362,313
-------------
12,549,381
-------------
TRANSPORTATION EQUIPMENT - 2.68%
55,400 Arvin Industries, Inc.................................................. 914,100
27,400 Capco Automotive Products.............................................. 195,225
22,600 China Tire Holdings, Ltd............................................... 180,800
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TRANSPORTATION EQUIPMENT (CONTINUED)
87,600 China Yuchai Ltd....................................................... $ 711,750
18,300 Coachmen Industries, Inc............................................... 398,025
9,900 Cobra Industries, Inc.*................................................ 0
61,200 Detroit Diesel Corp.*.................................................. 1,139,851
34,600 Discount Auto Parts, Inc.*............................................. 1,076,926
76,200 Fruehauf Trailer Corp.*................................................ 133,350
80,100 Gencorp, Inc........................................................... 981,225
35,100 Greenbrier Cos., Inc................................................... 425,588
12,000 Howell Corp............................................................ 172,500
13,900 Kysor Industrial Corp.................................................. 337,075
15,000 PS Group, Inc.......................................................... 161,250
20,800 Scotsman Industries, Inc............................................... 366,600
27,700 Skyline Corp........................................................... 574,775
51,900 Smith (A.O.) Corp...................................................... 1,076,925
31,500 SPX Corp............................................................... 500,063
32,500 Standard Motor Products, Inc........................................... 487,500
41,400 Standard Products Co................................................... 729,676
25,500 Terex Corp.*........................................................... 121,125
69,300 Westinghouse Air Brake Co.............................................. 736,313
62,600 Winnebago Industries, Inc.............................................. 485,150
14,900 Wynn's International, Inc.............................................. 441,413
-------------
12,347,205
-------------
HOTELS AND LEISURE - 2.59%
71,900 Alliance Entertainment Corp.*.......................................... 683,050
29,530 Anthony Industries, Inc................................................ 679,190
92,700 Aztar Corp.*........................................................... 741,600
106,000 Bally Entertainment Corp.*............................................. 1,484,000
26,700 Carmike Cinemas, Inc., Class A*........................................ 600,750
272,100 Cineplex Odeon Corp.*.................................................. 408,150
32,900 Cole (Kenneth)
Productions, Inc., Class A *........................................ 616,875
75,450 Grand Casinos, Inc.*................................................... 1,754,213
15,700 Hammons (John Q.) Hotels, Inc.*........................................ 145,225
23,200 Harvey's Casino Resorts................................................ 417,600
34,700 Huffy Corp............................................................. 351,338
74,500 International Family
Entertainment, Class B*............................................. 1,219,938
22,900 Jackpot Enterprises, Inc............................................... 266,213
73,000 Prime Hospitality Corp.*............................................... 730,000
123,500 Roadmaster Industries, Inc.*........................................... 293,313
38,600 Showboat, Inc.......................................................... 1,018,076
25,000 Trump Hotels & Casino Resort*.......................................... 537,500
-------------
11,947,031
-------------
MACHINERY - 2.50%
12,200 Acme Electric Corp.*................................................... 111,325
16,400 Acme-Cleveland Corp.................................................... 307,500
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MACHINERY (CONTINUED)
54,700 Applied Magnetics Corp.*............................................... $ 1,018,788
23,850 Bearings, Inc.......................................................... 697,613
39,000 BJ Services Co.*....................................................... 1,131,000
21,400 Brown & Sharpe
Manufacturing Co., Class A*......................................... 219,350
50,500 CMI Corp., Class A*.................................................... 258,813
91,000 Data General Corp.*.................................................... 1,251,250
32,000 Datapoint Corp.*....................................................... 40,000
35,300 Electronic Associates, Inc.*........................................... 180,913
58,900 Gerber Scientific, Inc................................................. 957,125
57,400 Global Industries Technogies, Inc.*.................................... 1,083,426
39,900 Hunt Manufacturing Co.................................................. 693,263
54,600 Interlake Corp.*....................................................... 136,500
22,500 Katy Industries, Inc................................................... 208,125
9,300 Monarch Machine Tool Co................................................ 116,250
13,300 National-Standard Co.*................................................. 144,638
31,200 OEC Medical Systems, Inc.*............................................. 304,200
19,800 Par Technology Corp.*.................................................. 178,200
11,470 Portec, Inc.*.......................................................... 110,399
27,000 Safeguard Scientifics, Inc.*........................................... 1,336,500
9,600 Sequa Corp., Class B*.................................................. 379,200
18,300 Tremont Corp.*......................................................... 304,238
6,900 Twin Disc, Inc......................................................... 156,975
36,000 Worldtex, Inc.*........................................................ 207,000
-------------
11,532,591
-------------
MEDICAL SUPPLIES - 2.25%
73,200 Amsco International, Inc.*............................................. 1,088,850
65,700 Ballard Medical Products............................................... 1,174,388
70,000 Benson Eyecare Corp.*.................................................. 630,000
28,400 Cooper Cos., Inc.*..................................................... 213,000
32,200 Diagnostic Products Corp............................................... 1,219,575
197,300 Elscint, Ltd.*......................................................... 468,588
36,000 Genesis Health Ventures, Inc.*......................................... 1,314,000
32,100 Graham-Field Health Products, Inc.*.................................... 108,338
17,300 Isomedix, Inc.*........................................................ 248,688
21,500 Maxxim Medical, Inc.*.................................................. 360,125
35,000 Omnicare, Inc.......................................................... 1,566,250
76,200 Owens & Minor, Inc..................................................... 971,550
13,700 Sterile Concepts Holdings, Inc......................................... 198,650
44,600 Sunrise Medical, Inc.*................................................. 825,100
-------------
10,387,102
-------------
TEXTILE PRODUCTS - 2.24%
23,500 Angelica Corp.......................................................... 481,750
53,800 Authentic Fitness Corp................................................. 1,116,350
18,400 Belding Heminway Co., Inc.*............................................ 57,505
24,200 Chic By His, Inc.*..................................................... 133,100
</TABLE>
See Notes to Financial Statements.
22
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TEXTILE PRODUCTS (CONTINUED)
60,300 Delta Woodside Industries, Inc......................................... $ 399,488
35,200 Dyersburg Corp......................................................... 176,000
25,000 Farah, Inc.*........................................................... 118,750
21,600 Fieldcrest Cannon, Inc.*............................................... 359,100
29,100 Galey & Lord, Inc.*.................................................... 312,825
34,700 Guilford Mills, Inc.................................................... 707,013
53,000 Hancock Fabrics, Inc................................................... 477,000
80,700 Hartmarx Corp.*........................................................ 353,063
15,000 He-Ro Group, Ltd.*..................................................... 6,094
26,225 Johnston Industries, Inc............................................... 209,800
52,350 Kellwood Co............................................................ 1,066,631
5,100 Munsingwear, Inc.*..................................................... 33,150
21,500 Oxford Industries, Inc................................................. 360,125
66,200 Phillips-Van Heusen Corp............................................... 653,726
26,300 Pillowtex Corp......................................................... 305,738
37,200 Salant Corp.*.......................................................... 144,151
23,400 Signal Apparel Co., Inc.*.............................................. 169,650
28,300 Texas Industries, Inc.................................................. 1,499,900
21,200 Texfi Industries, Inc.*................................................ 58,300
74,500 Triarc Cos., Inc.*..................................................... 819,500
73,900 Tultex Corp.*.......................................................... 304,838
-------------
10,323,547
-------------
TECHNOLOGY - 2.22%
17,500 American Precision Industries, Inc..................................... 194,688
52,100 Ameridata Technologies, Inc.*.......................................... 501,463
48,100 Aviall, Inc............................................................ 450,938
37,500 BBN Corp.*............................................................. 1,542,188
45,400 Bell & Howell Holdings Co.*............................................ 1,271,200
27,400 Checkpoint Systems, Inc.*.............................................. 1,024,075
216,900 Chyron Corp.*.......................................................... 596,475
109,300 Computervision Corp.*.................................................. 1,680,488
27,400 CSS Industries, Inc.*.................................................. 602,800
12,300 Cycare Systems, Inc.*.................................................. 315,188
19,800 Franklin Electronic Publishers, Inc.*.................................. 584,100
47,600 National Data Corp..................................................... 1,178,100
16,500 Sterling Electronics Corp.*............................................ 282,563
-------------
10,224,266
-------------
FINANCIAL SERVICES - 2.18%
47,100 American Banknote Corp.*............................................... 58,875
21,900 Atalanta Sosnoff Capital Corp.......................................... 317,550
27,200 CMAC Investment Corp................................................... 1,196,800
14,000 Duff & Phelps Corp..................................................... 201,251
44,000 Enhance Financial Services Group, Inc.................................. 1,171,501
71,700 Ideon Group, Inc....................................................... 725,963
25,400 Insignia Financial Group, Inc., Class A *.............................. 977,900
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FINANCIAL SERVICES (CONTINUED)
63,900 National Auto Credit, Inc.*............................................ $ 1,038,375
37,400 North American Mortgage Co............................................. 794,750
43,200 Phoenix Duff & Phelps Corp............................................. 297,042
15,300 Pioneer Financial Services, Inc........................................ 283,050
46,100 Primark Corp........................................................... 1,383,000
31,100 Sherwood Group, Inc.*.................................................. 268,238
39,400 Student Loan Corp...................................................... 1,339,600
-------------
10,053,895
-------------
CAPITAL GOODS - 2.17%
68,800 Cone Mills Corp.*...................................................... 774,000
9,700 Greiner Engineering, Inc............................................... 130,950
43,600 Hayes Wheels International, Inc........................................ 1,117,250
51,900 ICF Kaiser International, Inc.*........................................ 220,575
41,300 Kaydon Corp............................................................ 1,254,488
22,000 Matlack Systems, Inc.*................................................. 192,500
43,100 Mueller Industries, Inc.*.............................................. 1,260,675
31,500 Osmonics, Inc.*........................................................ 641,813
28,800 Paragon Trade Brands, Inc.*............................................ 673,201
14,100 Puerto Rican Cement Co., Inc........................................... 467,063
39,500 Robertson-Ceco Corp.*.................................................. 202,438
20,300 St. John Knits, Inc.................................................... 1,078,438
29,775 Titan Wheel International, Inc......................................... 483,844
15,850 Watsco, Inc............................................................ 283,319
32,400 Wolverine Tube, Inc.*.................................................. 1,215,000
-------------
9,995,554
-------------
FOOD AND BEVERAGE - 2.13%
20,600 Chart House Enterprises, Inc.*......................................... 123,600
25,851 Chock Full O'Nuts Corp.*............................................... 135,718
46,300 CKE Restaurants, Inc................................................... 740,800
10,526 Diana Corp.*........................................................... 280,255
95,900 Foodmaker, Inc.*....................................................... 563,413
69,200 Hudson Foods, Inc., Class A............................................ 1,193,700
44,600 International Multifoods Corp.......................................... 897,576
25,500 Orange Co., Inc.*...................................................... 197,625
27,000 Penn Traffic Co.*...................................................... 405,000
25,200 Piccadilly Cafeterias, Inc............................................. 239,400
68,400 Pilgrim's Pride Corp................................................... 470,250
36,125 Rykoff-Sexton, Inc.*................................................... 632,188
27,400 Rymer Foods, Inc.*..................................................... 27,400
65,100 Savannah Foods Industries, Inc......................................... 740,513
50,400 Sbarro, Inc............................................................ 1,083,600
69,100 Sizzler International, Inc............................................. 293,675
40,200 Smucker (J.M.) Co., Class B............................................ 773,850
14,100 Spaghetti Warehouse, Inc.*............................................. 70,500
27,100 Super Food Services, Inc............................................... 352,300
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FOOD AND BEVERAGE (CONTINUED)
63,500 TCBY Enterprises, Inc.................................................. $ 254,000
28,775 Uno Restaurant Corp.*.................................................. 197,828
15,500 Volunteer Capital Corp.*............................................... 147,250
-------------
9,820,441
-------------
INDUSTRIAL SERVICES - 2.02%
22,600 ABM Industries, Inc.................................................... 627,150
51,300 Advo, Inc.............................................................. 1,333,800
34,500 Carlisle Cos., Inc..................................................... 1,392,938
43,900 Carlisle Plastics, Inc.*............................................... 197,550
36,600 Clarcor, Inc........................................................... 745,726
8,200 Continental Can Co., Inc.*............................................. 134,275
17,000 Corrpro Cos., Inc.*.................................................... 106,250
35,850 Idex Corp.............................................................. 1,469,850
9,100 Kerr Group, Inc.*...................................................... 91,000
32,400 LSB Industries, Inc.................................................... 141,751
19,000 Manitowoc Co., Inc..................................................... 581,875
40,200 Measurex Corp.......................................................... 1,135,650
36,000 Publicker Industries, Inc.*............................................ 85,501
17,900 TRC Cos., Inc.*........................................................ 116,350
21,300 URS Corp.*............................................................. 149,100
37,250 U.S. Filter Corp.*..................................................... 991,782
-------------
9,300,548
-------------
METAL AND MINING - 1.98%
91,200 Agnico-Eagle Mines, Ltd................................................ 1,151,400
155,400 Amax Gold, Inc.*....................................................... 1,126,650
45,600 Ashland Coal, Inc...................................................... 974,701
40,600 Atlas Corp.*........................................................... 55,826
40,000 Brush Wellman, Inc..................................................... 690,000
32,000 Castech Aluminum Group, Inc.*.......................................... 432,000
24,900 Chase Brass & Copper Co., Inc.*........................................ 314,363
38,200 Coeur D'Alene Mines Corp............................................... 654,176
182,200 FMC Gold Co............................................................ 751,576
119,200 Hecla Mining Co.*...................................................... 819,501
18,900 Pittston Minerals Group................................................ 262,238
18,700 Sinter Metals, Inc., Class A*.......................................... 231,413
468,772 Sunshine Mining & Refining Co.*........................................ 644,562
17,200 Westmoreland Coal Co.*................................................. 45,150
70,300 Zeiglar Coal Holding Co................................................ 975,413
-------------
9,128,969
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER CYCLICAL - 1.58%
22,925 Bush Industries, Inc., Class A......................................... $ 449,903
17,900 Cooker Restaurant Corp................................................. 201,375
19,500 GC Cos., Inc.*......................................................... 653,250
64,600 Glamis Gold, Ltd....................................................... 403,750
48,500 Marcus Corp............................................................ 1,327,688
37,500 Material Sciences Corp.*............................................... 557,813
26,900 McWhorter Technologies, Inc.*.......................................... 396,775
17,200 Oil-Dri Corp. of America............................................... 268,750
41,700 O'Sullivan Industries, Inc.*........................................... 276,263
16,400 Quantum Restaurant Group, Inc.*........................................ 184,500
24,100 Rhodes, Inc.*.......................................................... 234,975
53,600 Rouge Steel Co., Class A............................................... 1,273,000
66,500 Starter Corp.*......................................................... 465,500
29,300 Syratech Corp.*........................................................ 589,663
-------------
7,283,205
-------------
SECURITY BROKERS AND DEALERS - 1.55%
21,600 Advest Group, Inc.*.................................................... 183,600
30,000 Alex Brown, Inc........................................................ 1,260,000
29,850 Inter-Regional Financial Group......................................... 753,713
15,800 Interstate/Johnson Lane, Inc........................................... 167,875
30,300 Legg Mason, Inc........................................................ 833,250
22,900 McDonald & Co. Investments, Inc........................................ 412,200
38,950 Morgan Keegan, Inc..................................................... 491,744
42,300 Piper Jaffray Cos., Inc................................................ 581,625
47,680 Quick & Reilly Group, Inc.............................................. 977,440
50,725 Raymond James Financial, Inc........................................... 1,071,566
11,300 Rodman & Renshaw Capital Group, Inc.*.................................. 19,775
15,400 Stewart Information Services Corp...................................... 331,100
10,163 Stifel Financial Corp.................................................. 67,330
-------------
7,151,218
-------------
TRANSPORTATION - 1.25%
32,800 Alaska Air Group, Inc.*................................................ 533,000
43,100 Brilliance China
Automotive Holdings, Ltd............................................ 172,400
33,600 Continental Airlines, Inc., Class A*................................... 1,428,000
16,550 International Shipholding Corp......................................... 343,413
29,500 Maritrans, Inc......................................................... 173,313
76,100 OMI Corp.*............................................................. 494,650
113,600 Rollins Truck Leasing Corp............................................. 1,263,801
44,600 Teekay Shipping Corp................................................... 1,053,676
28,700 Worldcorp, Inc.*....................................................... 287,000
-------------
5,749,253
-------------
</TABLE>
See Notes to Financial Statements.
24
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMUNICATION - 1.20%
12,400 Aydin Corp.*........................................................... $ 187,550
21,100 Dycom Industries, Inc.*................................................ 118,688
45,100 General Datacomm Industries, Inc.*..................................... 772,338
64,500 Harte-Hanks Communications, Inc........................................ 1,273,875
18,885 Intellicall, Inc.*..................................................... 70,819
44,900 Network Equipment Technologies, Inc.*.................................. 1,229,138
21,700 Plantronics, Inc.*..................................................... 783,913
1,900 Telecom Corp.*......................................................... 3,800
58,100 True North Communications.............................................. 1,074,850
-------------
5,514,971
-------------
HOME FURNISHINGS - 1.08%
14,200 Chromcraft Revington, Inc.*............................................ 378,075
21,300 Crown Crafts, Inc...................................................... 244,950
49,900 Ekco Group, Inc........................................................ 293,163
35,600 Ethan Allen Interiors, Inc.*........................................... 725,351
22,900 Fabri-Centers of America, Inc., Class A*............................... 303,425
9,300 General Housewares Corp................................................ 80,213
124,300 Interco, Inc.*......................................................... 1,118,700
55,200 Mikasa, Inc.*.......................................................... 745,200
27,000 Oneida, Ltd............................................................ 475,876
33,950 Rowe Furniture Corp.................................................... 148,532
22,300 Shelby Williams Industries, Inc........................................ 262,025
28,200 Tandycrafts, Inc.*..................................................... 222,076
-------------
4,997,586
-------------
WHOLESALE DURABLE GOODS - 0.93%
23,700 Ampco-Pittsburgh Corp.................................................. 254,775
9,600 Dynamics Corp. of America.............................................. 235,200
80,600 Fedders Corp........................................................... 463,450
34,380 Harman International Industries, Inc................................... 1,379,498
18,200 National Presto Industries, Inc........................................ 723,450
59,500 Royal Appliance Manufacturing Co.*..................................... 148,750
18,800 Toastmaster, Inc....................................................... 75,200
31,200 Toro Co................................................................ 1,025,701
-------------
4,306,024
-------------
PRINTING AND PUBLISHING - 0.83%
114,100 American Media, Inc., Class A.......................................... 484,925
34,000 CPI Corp............................................................... 544,000
14,600 Martin Lawrence Limited Editions, Inc.*................................ 8,213
33,400 Nelson (Thomas), Inc................................................... 434,200
27,900 Playboy Enterprises, Inc., Class A*.................................... 244,125
49,600 Playboy Enterprises, Inc., Class B*.................................... 415,400
35,425 Pulitzer Publishing Co................................................. 1,691,544
-------------
3,822,407
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONSUMER STAPLES - 0.83%
39,583 Carr-Gottstein Foods Co.*.............................................. $ 227,602
67,500 Duty Free International, Inc........................................... 1,080,000
48,700 Interstate Bakeries Corp............................................... 1,089,663
37,200 Libbey, Inc............................................................ 837,000
76,600 Playtex Products, Inc.*................................................ 574,500
-------------
3,808,765
-------------
PAPER - 0.75%
30,900 American Business Products, Inc........................................ 880,650
40,800 Ennis Business Forms................................................... 499,800
30,600 Lydall, Inc.*.......................................................... 696,150
34,600 Pope & Talbot, Inc..................................................... 458,450
39,800 West Co., Inc.......................................................... 935,300
-------------
3,470,350
-------------
SHOES - 0.74%
18,300 Barry (R.G.) Corp.*.................................................... 356,850
44,500 Brown Group, Inc....................................................... 634,125
41,400 Converse, Inc.*........................................................ 170,776
9,600 Fuqua Enterprises, Inc.*............................................... 178,800
60,400 Genesco, Inc.*......................................................... 211,400
56,900 L.A. Gear Inc.*........................................................ 99,575
27,000 Timberland Co., Class A*............................................... 536,625
39,325 Wolverine World Wide, Inc.............................................. 1,238,738
-------------
3,426,889
-------------
PACKAGING AND CONTAINERS - 0.72%
40,100 Aptargroup, Inc........................................................ 1,498,738
42,900 Interpool, Inc......................................................... 766,838
16,600 Sea Containers, Ltd, Class B........................................... 286,350
10,200 Sun Coast Industries, Inc.*............................................ 68,850
39,500 Zero Corp.............................................................. 701,125
-------------
3,321,901
-------------
ADVERTISING - 0.52%
22,500 Catalina Marketing Corp.*.............................................. 1,411,875
36,700 National Media Corp.*.................................................. 770,700
24,400 Transmedia Network, Inc................................................ 228,751
-------------
2,411,326
-------------
FABRICATED METAL PRODUCTS - 0.44%
22,600 Allied Products Corp................................................... 542,400
15,900 Barnes Group, Inc...................................................... 572,400
21,300 Fansteel, Inc.......................................................... 146,438
14,500 Hi-Shear Industries, Inc.*............................................. 105,125
33,300 Quanex Corp............................................................ 645,188
-------------
2,011,551
-------------
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
CONGLOMERATES - 0.31%
11,600 Craig Corp.*........................................................... $ 114,550
76,200 Griffon Corp.*......................................................... 685,800
45,700 Metromedia International Group, Inc.*.................................. 639,800
-------------
1,440,150
-------------
TELEVISION AND BROADCASTING - 0.29%
49,600 BET Holdings, Inc., Class A*........................................... 1,134,600
10,900 Gray Communications Systems, Inc....................................... 194,837
-------------
1,329,437
-------------
REAL ESTATE - 0.25%
13,100 Christiana Cos., Inc.*................................................. 294,750
13,600 Hallwood Group, Inc.*.................................................. 105,400
37,500 Webb Development Corp.................................................. 754,688
-------------
1,154,838
-------------
CEMENT - 0.19%
16,000 Giant Group, Ltd.*..................................................... 146,000
29,800 Lone Star Industries, Inc.............................................. 745,000
-------------
891,000
-------------
PERSONAL CARE - 0.14%
62,800 Jenny Craig, Inc.*..................................................... 620,151
-------------
TOTAL COMMON STOCKS.................................................... 446,666,904
(Cost $394,061,695) -------------
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
U.S. TREASURY BILLS - 0.10%
$ 500,000 U.S. Treasury Bill/(1)/
5.43%, 06/13/1996...................................................... $ 488,795
-------------
TOTAL U.S. TREASURY BILLS.............................................. 488,795
(Cost $488,795) -------------
COMMERCIAL PAPER - 4.93%
10,000,000 General Electric Capital Corp
5.92%, 01/02/1996...................................................... 9,998,356
12,734,034 General Motors Acceptance Corp
6.05%, 01/02/1996...................................................... 12,734,034
-------------
TOTAL COMMERCIAL PAPER................................................. 22,732,390
(Cost $22,732,390) -------------
TOTAL INVESTMENTS - 101.92%............................................................ 469,888,089
(Cost $417,282,880)** -------------
NET OTHER ASSETS AND LIABILITIES - (1.92)%............................................. (8,860,646)
-------------
NET ASSETS - 100.00%................................................................... $ 461,027,443
=============
</TABLE>
- ----------------------------------------
* Non-income producing security
** Aggregate cost for Federal income tax purposes is $417,356,819.
(1) Security has been deposited as intial margin on open futures contracts. At
December 31, 1995, the Portfolio's open futures contracts were as follows:
<TABLE>
<CAPTION>
# of Opening Current Market
Contracts Contract Type Position Value
- --------- ------------- ------------- -------------
<S> <C> <C> <C>
20 March 1996
Russel 2000 $ 3,170,200 $ 3,191,500
30 March 1996
S&P 500 9,343,175 9,276,750
------------- ------------
$ 12,513,375 $ 12,468,250
============= ============
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCKS 94.34%
AUSTRALIA - 2.14%
16,893 Amcor Ltd.............................................................. $ 119,378
9,546 Ampolex Ltd.*.......................................................... 20,877
10,658 Australian National Industries Ltd..................................... 7,928
46,011 Boral Ltd.............................................................. 116,369
6,419 Brambles Industries Ltd................................................ 71,623
117,771 Broken Hill Property Co. Ltd........................................... 1,664,514
16,999 Burns Philp & Co. Ltd.................................................. 38,061
18,820 Coca Cola Amatil Ltd................................................... 150,216
39,837 Coles Myer Ltd......................................................... 124,164
39,136 CRA Ltd................................................................ 574,671
27,518 CSR Ltd................................................................ 89,657
6,153 Email Ltd.............................................................. 14,646
60,535 Fosters Brewing Group Ltd.............................................. 99,516
37,716 General Property Trust Units........................................... 66,773
28,687 Goodman Fielder Ltd.................................................... 28,808
8,900 Hardie (James) Industries.............................................. 15,359
11,370 ICI Australia.......................................................... 87,115
6,948 Lend Lease Corp........................................................ 100,784
40,059 MIM Holdings Ltd....................................................... 55,425
86,914 National Australia Bank................................................ 782,295
7,938 Newcrest Mining........................................................ 33,421
121,382 News Corp.............................................................. 648,297
22,872 North Ltd.............................................................. 63,801
31,500 Pacific Dunlop Ltd..................................................... 73,810
20,888 Pioneer International Ltd.............................................. 53,917
19,455 QCT Resources.......................................................... 21,853
7,403 Renison Goldfields..................................................... 36,896
8,400 Rothmans Holdings...................................................... 34,367
19,092 Santos Ltd............................................................. 55,814
3,515 Smith (Howard)......................................................... 16,603
16,580 Southcorp Holdings Ltd................................................. 38,603
2,000 Stockland Trust Group.................................................. 4,612
7,787 Tubemakers of Australia................................................ 24,155
20,286 Westfield Trust Units.................................................. 36,518
111,012 Westpac Banking Corp................................................... 492,166
67,496 WMC Limited............................................................ 433,798
-------------
6,296,810
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
AUSTRIA - 1.24%
12,650 BK Austria AG.......................................................... $ 1,022,525
100 Bank of Austria AG..................................................... 4,786
100 Bank of Austria AG, Part Cert.......................................... 3,972
7,220 Creditanstalt Bank..................................................... 400,782
1,780 EA-Generali AG......................................................... 533,809
7,769 Oester Elektrizitat, Class A........................................... 467,516
7,740 OMV AG................................................................. 672,524
75 Radex-Heraklith........................................................ 2,272
100 Steyr-Daimlr-Puch*..................................................... 1,718
3,800 VA Technology AG....................................................... 483,006
333 Wienerbergr Baust...................................................... 66,135
-------------
3,659,045
-------------
BELGIUM - 1.00%
325 CBR Cimenteries........................................................ 131,140
250 CBR Cimenteries Warrants*.............................................. 1,478
3,400 Delhaize Le Lion....................................................... 140,949
2,400 Electrabel Npv......................................................... 570,864
700 Electrabel Npv Vvpr.................................................... 166,978
2,000 Fortis AG.............................................................. 243,297
683 Generale De Banque..................................................... 241,947
1,300 GPE Bruxelles Lam...................................................... 180,451
652 Kredietbank............................................................ 178,347
1,097 Petrofina SA........................................................... 335,857
850 Royale Belge........................................................... 169,832
450 Solvay................................................................. 243,127
568 Tractebel Investor International....................................... 234,503
1,422 Union Miniere*......................................................... 95,190
-------------
2,933,960
-------------
DENMARK - 1.21%
28 Aarhus Oliefabrik, Class A............................................. 1,617
9 Aarhus Oliefabrik, Class B............................................. 503
2,960 Carlsberg, Class A..................................................... 165,578
2,805 Carlsberg, Class B..................................................... 156,907
1,995 Danisco A/S New........................................................ 96,478
80 Danske Luftfartsel..................................................... 6,987
3,547 Den Danske Bank Group AS............................................... 245,137
15 D/S 1912, Class B...................................................... 286,910
643 FLS Industries, Class B................................................ 49,892
</TABLE>
See Notes to Financial Statements.
27
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
DENMARK (CONTINUED)
42 GN Store Nord.......................................................... $ 3,373
2,190 ISS International, Series B............................................ 49,397
1,185 Korn-OG Fokerstof...................................................... 51,319
134 Lauritzen (J) Holdings, Class B*....................................... 14,750
111 NKT Holdings........................................................... 5,208
5,723 Novo Nordisk A/S, Class B.............................................. 784,850
6,974 Ostasiatiske Kompa*.................................................... 139,686
84 Radio Meter AS......................................................... 6,033
624 Royal Copenhagen....................................................... 56,299
298 Sophus Berendsen, Class A.............................................. 33,554
1,188 Sophus Berendsen, Class B.............................................. 133,982
556 Superfos AS............................................................ 48,659
19,900 Teledanmark, Class B................................................... 1,088,040
2,893 Unidanmark AS, Class A................................................. 143,559
-------------
3,568,718
-------------
FINLAND - 0.39%
800 AmericaGroup, Class A.................................................. 12,511
1,300 Cultor OY, Series 2.................................................... 53,892
1,500 Instrumentarium, Series B.............................................. 38,692
500 Kone Corp., Class B.................................................... 41,801
5,900 Kymmene Corp........................................................... 156,264
14,606 Merita Bank............................................................ 37,003
4,100 Metra AB, Class B...................................................... 169,023
11,600 Nokia OY............................................................... 456,839
800 Pohjola Insurance Co., Series B........................................ 10,318
6,300 Repola OY.............................................................. 118,977
750 Stockmann AB (OY), Class B............................................. 39,210
-------------
1,134,530
-------------
FRANCE - 7.96%
1,850 Accor Sa............................................................... 239,837
4,949 Air Liquide............................................................ 820,722
11,237 Alcatel Alsthom........................................................ 970,122
12,200 AXA.................................................................... 823,249
14,200 Banque Nation.......................................................... 641,419
1,700 BIC.................................................................... 173,115
1,425 Bouygues............................................................... 143,742
1,400 Canal Plus SA.......................................................... 262,802
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FRANCE (CONTINUED)
5,150 Carnaudmetalbox SA..................................................... $ 235,892
1,882 Carrefour.............................................................. 1,143,352
4,000 Casino Guich-Perr...................................................... 116,228
498 Chargeurs SA........................................................... 99,287
6,233 Cie De Saint Gobain.................................................... 690,803
11,817 Cie De Suez............................................................ 488,108
8,864 Cie Fin Paribas........................................................ 486,667
50 Cie Gen Geophysique.................................................... 1,646
500 Club Mediterranee SA*.................................................. 39,976
1,672 Compagnie Bancaire..................................................... 187,359
320 Comptoirs Modernes..................................................... 104,041
500 CPR (Cie Par Reesco)................................................... 40,886
2,625 Credit Fonc De France.................................................. 38,003
790 Credit National........................................................ 58,155
7,325 CSF (Thomson).......................................................... 163,414
5,321 Danone Group........................................................... 879,149
1,050 DMC Dollfus-Mieg....................................................... 42,920
1,043 Docks De France........................................................ 158,677
8,718 Eaux (Ci Generale)..................................................... 871,555
625 Ecco STE............................................................... 94,701
7,623 Elf Sanofi............................................................. 489,300
1,500 Erid Beghin Say........................................................ 257,649
500 Essilor International.................................................. 95,698
183 Eurafrance............................................................. 61,557
1,050 Finextel (Soc Fin)..................................................... 15,266
200 Gtm Entrepose.......................................................... 14,048
3,375 Havas SA............................................................... 268,116
1,195 Imetal................................................................. 142,949
6,821 Lafarge Coppee SA...................................................... 440,053
5,400 Lagardere Group........................................................ 99,379
2,100 Legrand................................................................ 324,638
4,618 L'Oreal................................................................ 1,237,982
6,420 LVMH Moet Hennessy..................................................... 1,339,038
5,833 Lyonaise Des Eaux...................................................... 562,382
8,000 Michelin (Cgde), Class B............................................... 319,485
3,050 Moulinex*.............................................................. 41,911
1,350 Nord Est............................................................... 31,304
3,500 Pernod Ricard.......................................................... 199,177
3,662 Peugeot SA............................................................. 483,736
1,748 Pinault Printemps Redoute.............................................. 349,216
1,300 Primagaz Cie........................................................... 103,407
1,150 Promodes............................................................... 270,664
23,800 Rhone-Poulenc SA....................................................... 510,517
</TABLE>
See Notes to Financial Statements.
28
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FRANCE (CONTINUED)
200 Sagem SA............................................................... $ 112,466
525 Saint Louis............................................................ 139,560
9,400 Schneider SA (Ex Spep)................................................. 321,767
2,600 Sefimeg................................................................ 172,788
3,200 Seita.................................................................. 116,146
400 Sidel.................................................................. 124,817
918 Simco.................................................................. 87,288
20,067 Society National Elf Aquitaine......................................... 1,480,494
6,489 Societe Generale....................................................... 802,769
310 Sodexho................................................................ 91,281
17,400 Total (Class B)........................................................ 1,175,922
22,300 Union Assur De Paris................................................... 583,221
800 Unibail SA............................................................. 82,775
572 Union Immob France..................................................... 49,593
15,200 Usinor Sacilor......................................................... 199,232
4,300 Valeo Sa Frfz.......................................................... 199,420
-------------
23,412,838
-------------
GERMANY - 9.66%
2,040 Agiv AG................................................................ 44,613
1,809 Allianz AG Holdings.................................................... 3,559,160
288 Amb Aach & Municipal Beteil Regd....................................... 209,268
178 Amb Aach & Municipal Beteil............................................ 111,928
273 Asko Deut Kaufhaus..................................................... 141,910
4,968 BASF AG................................................................ 1,121,141
5,664 Bayer AG............................................................... 1,506,942
21,220 Bayer Hypotheken Bank.................................................. 536,402
30,580 Bayer Vereinsbank AG................................................... 918,718
393 Beiersdorf AG, Series ABC.............................................. 270,461
297 Bilfinger & Berger..................................................... 113,091
4,870 Continental AG......................................................... 68,902
4,172 Daimler-Benz AG........................................................ 2,110,373
632 Degussa AG............................................................. 213,275
39,060 Deutsche Bank AG....................................................... 1,858,470
1,630 Douglas Holdings AG.................................................... 57,625
36,560 Dresdner Bank AG....................................................... 982,152
248 Fag Kugelfischer*...................................................... 31,882
340 Heidelberg Zement...................................................... 213,320
473 Hochtief AG............................................................ 202,581
791 Karstadt AG............................................................ 324,960
382 Kaufhof Holdings AG.................................................... 116,633
3,830 Klockner-Humb-Deut*.................................................... 23,147
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
GERMANY (CONTINUED)
593 Linde AG............................................................... $ 352,168
2,658 Lufthansa AG........................................................... 368,631
50 Lufthansa AG, Non-Voting............................................... 6,550
761 MAN AG................................................................. 211,082
168 MAN AG, Non-Voting..................................................... 36,129
2,980 Mannesmann AG.......................................................... 950,459
13,600 Merck Kgaa............................................................. 553,492
680 Munchener Ruckers...................................................... 1,468,060
1,131 Preussag AG............................................................ 319,242
796 PWA Papier Waldhof*.................................................... 117,903
2,825 RWE AG................................................................. 1,029,317
1,614 RWE AG, Non-Voting..................................................... 451,066
5,000 Sap AG................................................................. 775,531
3,300 Sap AG, Non-Voting..................................................... 502,167
5,000 Schering AG............................................................ 332,919
4,644 Siemens AG............................................................. 2,556,788
2,634 Thyssen AG............................................................. 481,610
40,090 Veba AG................................................................ 1,719,811
1,712 Viag AG................................................................ 706,916
2,193 Volkswagen AG.......................................................... 736,987
-------------
28,413,782
-------------
HONG KONG - 1.74%
65,400 Bank of East Asia...................................................... 234,721
86,000 Cathay Pacific Air..................................................... 131,248
74,000 Cheung Kong Holdings................................................... 450,780
61,400 China Light & Power.................................................... 282,703
57,800 Hang Seng Bank......................................................... 517,678
116,146 Hong Kong & China Gas.................................................. 187,019
8,065 Hong Kong & China Gas Warrants*........................................ 10
20,000 Hong Kong & Shanghai Hotels............................................ 28,971
4,600 Hong Kong Aircraft..................................................... 11,899
320,800 Hong Kong Telecommunications........................................... 572,566
130,000 Hopewell Holdings Ltd.................................................. 74,820
212 HSBC Holdings PLC...................................................... 3,208
119,000 Hutchison Whampoa Ltd.................................................. 724,903
34,000 Hysan Development...................................................... 89,926
26,000 Johnson Electric Holdings.............................................. 46,405
7,200 Lai Sun Garment International.......................................... 6,984
11,000 Miramar Hotel & Investor............................................... 23,190
59,000 New World Development Co............................................... 257,154
595 Regal Hotels International............................................. 140
</TABLE>
See Notes to Financial Statements.
29
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
HONG KONG (CONTINUED)
32,258 Shun Tak Holdings...................................................... $ 22,738
72,100 Sun Hung Kai Properties Ltd............................................ 589,804
47,000 Swire Pacific Ltd...................................................... 364,721
130,000 South China Morning Post............................................... 79,443
33,270 Tai Cheung Holdings.................................................... 25,602
16,000 Television Broadcast................................................... 57,010
71,000 Wharf Holdings......................................................... 236,454
14,580 Wing Lung Bank......................................................... 81,650
-------------
5,101,747
-------------
ITALY - 3.52%
96,600 Alitalia Linee*........................................................ 39,398
31,900 Alitalia Linee Private*................................................ 7,138
70,785 Assic Generali......................................................... 1,715,636
18,400 Banca Pop Di Milano*................................................... 73,651
139,600 BCA Commercial Italiana................................................ 298,313
23,850 BCA Naz Agricolt*...................................................... 15,936
900 BCA Naz Agricolt Di Risp............................................... 343
25,350 BCA Naz Agricolt Private............................................... 9,668
54,694 BCO Ambrosiano Veneto.................................................. 149,112
38,900 BCO Ambrosiano Veneto Di Risp.......................................... 49,042
15,400 Benetton Group......................................................... 183,375
11,300 Burgo (Cartiere) Spa................................................... 56,450
1,900 Cementir Spa........................................................... 1,509
198,000 Credito Italiano....................................................... 230,900
460,300 Dalmine Spa*........................................................... 90,093
56,000 Edison................................................................. 241,453
4,900 Falck Acc Fer Lom*..................................................... 10,888
290,100 Fiat Spa............................................................... 943,593
63,400 Fiat Spa Di Risp....................................................... 112,101
82,200 Fiat Spa Private....................................................... 150,265
33,100 Fidis.................................................................. 63,534
1,900 Franco Tosi Spa........................................................ 11,258
7,900 Impregilo Spa*......................................................... 6,673
69,700 Istituto Banc San Paolo Di Torino...................................... 412,998
53,000 Istituto Mobiliare Spa................................................. 334,090
353,300 Istituto Nazionale Assicurazioni....................................... 468,795
14,350 Italcementi............................................................ 85,934
900 Italcementi Di Risp.................................................... 2,218
58,500 Italgas (Soc Ital)..................................................... 178,111
38,500 Magneti Marelli........................................................ 47,203
42,075 Mediobanca Spa......................................................... 291,613
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ITALY (CONTINUED)
11,400 Mondadori (Ar)......................................................... $ 98,881
1,600 Montedison Spa Di Risp................................................. 948
471,300 Montedison Spa*........................................................ 316,101
300,800 Olivetti & C Spa*...................................................... 241,376
24,900 Olivetti & C Spa Di Risp*.............................................. 12,670
89,600 Olivetti & C Spa (Sub Rights)*......................................... 16,662
100,700 Parmalat Finanziaria SPA............................................... 87,471
129,800 Pirelli Spa*........................................................... 167,732
20,900 Pirelli Spa Di Risp*................................................... 21,606
9,930 Ras Di Risp............................................................ 60,998
26,420 Ras.................................................................... 300,523
14,000 Rinascente La.......................................................... 84,808
37,800 Saipem................................................................. 87,209
10,800 SAI (Soc Assic)........................................................ 110,594
9,900 Sasib.................................................................. 43,684
19,400 Sirti Spa.............................................................. 109,082
11,013 SME (Meridonale Di)*................................................... 22,527
1,140 SMI (Soc Metal Italy)*................................................. 433
35,600 SNIA Bpd*.............................................................. 29,734
900 SNIA Bpd Di Risp*...................................................... 502
586,460 Telecom Italia Mobile.................................................. 1,033,256
138,260 Telecom Italia Mobile Di Risp.......................................... 145,546
138,260 Telecom Italia Di Risp................................................. 169,252
586,460 Telecom Italia Spa..................................................... 913,109
-------------
10,355,995
-------------
JAPAN - 33.39%
18,000 7-11 Japan............................................................. 1,270,354
18,000 77th Bank.............................................................. 165,252
4,000 Advantest.............................................................. 205,523
31,000 Ajinomoto Co., Inc..................................................... 345,608
10,000 Alps Electric Co....................................................... 115,364
27,000 Amada Co............................................................... 266,985
9,000 Aoki Corp.*............................................................ 37,779
100 Arabian Oil Co......................................................... 4,169
111,000 Asahi Bank............................................................. 1,398,911
20,000 Asahi Breweries........................................................ 236,545
69,000 Asahi Chemical Industries.............................................. 528,445
56,000 Asahi Glass Co......................................................... 624,323
30,000 Ashikaga Bank.......................................................... 187,297
97,000 Bank of Tokyo.......................................................... 1,702,057
54,000 Bank of Yokohama....................................................... 442,358
</TABLE>
See Notes to Financial Statements.
30
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
JAPAN (CONTINUED)
13,000 Banyu Pharmacutical.................................................... $ 160,056
37,000 Bridgestone Corp....................................................... 588,260
40,000 Canon, Inc............................................................. 725,146
13,000 Casio Computer Co...................................................... 127,288
37,000 Chiba Bank............................................................. 333,586
28,000 Chichibu Onoda Cement Co............................................... 149,566
1,000 Chiyoda Corp........................................................... 9,888
16,000 Chugai Pharmacutical Co................................................ 153,405
9,000 Citizen Watch Co....................................................... 68,928
51,000 Cosmo Oil Co........................................................... 278,851
6,000 Credit Saison.......................................................... 143,090
36,000 Dai Nippon Printing.................................................... 610,751
42,000 Daido Steel Co......................................................... 211,727
34,000 Daiei, Inc............................................................. 412,015
149,000 Dai-Ichi Kangyo Bank................................................... 2,932,284
13,000 Daiichi Pharmacutical Co............................................... 185,261
11,000 Daikin Industries...................................................... 107,705
42,000 Dainippon Ink & Chemical............................................... 195,848
7,000 Daishowa Paper Manufacturing*.......................................... 54,289
23,000 Daiwa House Industries................................................. 379,053
64,000 Daiwa Securities Co. Ltd............................................... 980,304
27,000 Denki Kagaku Kogyo*.................................................... 98,156
19,000 Ebara Corp............................................................. 278,134
12,000 Eisai Co............................................................... 210,564
11,100 Fanuc.................................................................. 481,010
138,000 Fuji Bank.............................................................. 3,050,265
25,000 Fuji Photo Film Co..................................................... 722,237
8,000 Fujita Corp............................................................ 36,141
6,000 Fujita Kanko, Inc...................................................... 132,620
88,000 Fujitsu................................................................ 981,080
65,000 Furukawa Electric...................................................... 318,221
24,000 Gunma Bank............................................................. 258,260
41,000 Hankyu Corp............................................................ 224,572
9,000 Hankyu Department Stores............................................... 133,493
32,000 Haseko Corp............................................................ 129,363
8,000 Higo Bank.............................................................. 64,371
159,000 Hitachi................................................................ 1,603,076
6,000 Hokkaido Bank.......................................................... 20,358
33,000 Hokuriku Bank.......................................................... 206,986
47,000 Honda Motor Co......................................................... 970,513
30,000 Honshu Paper Co........................................................ 183,807
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
JAPAN (CONTINUED)
3,000 House Food Corp........................................................ $ 54,095
6,000 Hoya Corp.............................................................. 206,492
15,000 Inax Corp.............................................................. 142,509
112,000 Ind Bank Japan......................................................... 3,398,490
11,000 Isetan Co.............................................................. 181,286
20,000 ITO Yokado Co.......................................................... 1,233,136
68,000 Itochu Corp............................................................ 458,160
85,000 Japan Air Lines Co.*................................................... 564,460
52,000 Japan Energy Corp...................................................... 174,423
38,000 Joyo Bank.............................................................. 305,763
15,000 Jusco Co............................................................... 391,172
46,000 Kajima Corp............................................................ 454,864
13,000 Kamigumi Co............................................................ 124,894
11,000 Kanebo*................................................................ 27,300
18,000 Kaneka Corp............................................................ 113,600
46,966 Kansai Electric Power.................................................. 1,138,275
33,000 Kao Corp............................................................... 409,494
155,000 Kawasaki Steel Corp.................................................... 540,951
24,000 Keihin Electric Express Railroad....................................... 144,021
12,000 Kinden Corp............................................................ 204,747
79,000 Kinki Nippon Railway................................................... 597,373
50,000 Kirin Brewery Co....................................................... 591,362
135,000 Kobe Steel*............................................................ 417,492
9,000 Kokuyo Co.............................................................. 209,400
48,000 Komatsu................................................................ 395,534
7,000 Konica Corp............................................................ 50,760
72,000 Kubota Corp............................................................ 464,171
33,000 Kumagai Gumi Co........................................................ 132,766
15,000 Kuraray Co............................................................. 164,321
6,000 Kurita Water........................................................... 159,959
9,000 Kyocera Corp........................................................... 669,209
21,000 Kyowa Hakko Kogyo...................................................... 198,291
4,000 Maeda Road Construction................................................ 74,066
4,000 Makita Corp............................................................ 63,983
71,000 Marubeni Corp.......................................................... 384,763
18,000 Marui Co............................................................... 375,176
100,000 Matsushita Electric Industries......................................... 1,628,670
6,000 Meiji Milk Product..................................................... 35,947
8,000 Meiji Seika Kaisha..................................................... 48,240
31,000 Minebea Co............................................................. 260,258
105,000 Mitsubishi Chemical.................................................... 510,995
</TABLE>
See Notes to Financial Statements.
31
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
JAPAN (CONTINUED)
75,000 Mitsubishi Corp........................................................ $ 923,397
102,000 Mitsubishi Electric Corp............................................... 734,704
66,000 Mitsubishi Estate...................................................... 825,386
20,000 Mitsubishi Gas Chemical................................................ 90,159
161,000 Mitsubishi Heavy Industries Ltd........................................ 1,284,545
54,000 Mitsubishi Materials................................................... 280,073
21,000 Mitsubishi Oil Co...................................................... 186,686
8,000 Mitsubishi Paper....................................................... 48,162
71,000 Mitsubishi Trust & Banking............................................. 1,183,888
9,000 Mitsubishi Warehouse................................................... 140,473
74,000 Mitsui & Co............................................................ 649,955
39,000 Mitsui Engineering & Shipbuilding*..................................... 108,510
39,000 Mitsui Fudosan Co...................................................... 480,167
35,000 Mitsui Marine & Fire................................................... 249,729
24,000 Mitsui Mining & Smelt*................................................. 96,324
53,000 Mitsui Osk Lines*...................................................... 170,070
37,000 Mitsui Toatsu Chemical................................................. 148,858
59,000 Mitsui Trust & Banking................................................. 646,330
23,000 Mitsukoshi............................................................. 216,283
7,000 Mochida Pharmaceutical Co.............................................. 97,042
2,000 Mori Seiki Co.......................................................... 45,176
11,000 Murata Manufacturing Co. Ltd........................................... 405,228
38,000 Nagoya Railroad Co..................................................... 191,563
22,000 Nankai Electric Railway Co............................................. 149,295
74,000 NEC Corp............................................................... 903,912
36,000 New Oji Paper Co....................................................... 325,967
10,000 NGK Spark Plug Co...................................................... 126,028
20,000 Nichido Fire & Marine Insurance........................................ 160,928
14,000 Nichii Co.............................................................. 185,940
7,000 Nichirei Corp.......................................................... 45,467
7,000 Nihon Cement Co........................................................ 46,824
51,000 Nippon Express Co...................................................... 491,451
40,000 Nippon Fire & Marine................................................... 271,445
26,000 Nippon Light Metal..................................................... 149,217
11,000 Nippon Meat Packer..................................................... 159,959
59,000 Nippon Oil Co.......................................................... 370,639
45,000 Nippon Paper Industries................................................ 312,792
9,000 Nippon Sheet Glass..................................................... 39,175
17,000 Nippon Shinpan Co...................................................... 128,549
329,000 Nippon Steel Corp...................................................... 1,129,075
56,000 Nippon Yusen Kk........................................................ 325,191
48,000 Nippondenso Co......................................................... 898,095
13,000 Nishimatsu Construction................................................ 152,494
120,000 Nissan Motor Co........................................................ 922,525
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
JAPAN (CONTINUED)
4,000 Nisshinbo Industries, Inc.............................................. $ 38,778
6,000 Nissin Food Products................................................... 140,764
4,000 Nitto Denko Corp....................................................... 62,045
168,000 NKK Corp.*............................................................. 452,770
94,000 Nomura Securities...................................................... 2,050,379
27,000 NSK.................................................................... 196,313
22,000 NTN Corp............................................................... 147,162
17,000 N.G.K. Insulators...................................................... 169,750
36,000 Obayashi Corp.......................................................... 286,180
34,000 Odakyu Electric Railway................................................ 232,376
11,000 Okumura Corp........................................................... 100,241
14,000 Olympus Optical Co..................................................... 135,722
13,000 Omron Corp............................................................. 299,947
18,000 Orient Corp............................................................ 102,257
10,000 Orix Corp.............................................................. 412,015
121,000 Osaka Gas Co........................................................... 418,772
17,000 Penta Ocean Construction............................................... 131,845
9,000 Pioneer Electronic Corp................................................ 164,903
31,000 Ricoh Co............................................................... 339,597
5,000 Rohm Co................................................................ 282,594
10,000 Sagami Railway Co...................................................... 43,334
166,000 Sakura Bank............................................................ 2,108,158
21,000 Sankyo Co.............................................................. 472,314
93,000 Sanyo Electric Co...................................................... 536,443
16,000 Sapporo Breweries...................................................... 148,907
5,000 Secom Co............................................................... 348,031
5,700 Sega Enterprises....................................................... 314,973
7,000 Seino Transportion Co.................................................. 117,400
11,000 Seiyu.................................................................. 136,498
26,000 Sekisui Chemical Co. Ltd............................................... 383,125
33,000 Sekisui House.......................................................... 422,291
53,000 Sharp Corp............................................................. 847,781
38,000 Shimizu Corp........................................................... 386,809
16,000 Shin-Etsu Chemical Co.................................................. 331,938
19,000 Shionogi & Co.......................................................... 160,065
19,000 Shiseido Co............................................................ 226,560
38,000 Shizuoka Bank.......................................................... 478,906
57,000 Showa Denko KK*........................................................ 179,037
8,000 Snow Brand Milk........................................................ 51,187
18,200 Sony Corp.............................................................. 1,092,159
150,000 Sumitomo Bank.......................................................... 3,184,631
77,000 Sumitomo Chemical...................................................... 384,434
51,000 Sumitomo Corp.......................................................... 519,138
37,000 Sumitomo Electric Industries........................................... 444,782
</TABLE>
See Notes to Financial Statements.
32
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
JAPAN (CONTINUED)
8,000 Sumitomo Forestry...................................................... $ 122,538
63,000 Sumitomo Heavy Industries*............................................. 226,589
32,000 Sumitomo Marine & Fire Insurance....................................... 263,069
174,000 Sumitomo Metal Industries*............................................. 527,980
27,000 Sumitomo Metal Mining.................................................. 242,904
51,000 Taisei Corp............................................................ 340,654
22,000 Taisho Pharmaceutical Co............................................... 435,087
13,000 Takashimaya Co......................................................... 207,946
42,000 Takeda Chemical Industries............................................. 692,185
16,000 Tanabe Seiyaku Co...................................................... 115,248
47,000 Teijin................................................................. 240,578
10,000 Teikoku Oil Co......................................................... 67,473
41,000 Tobu Railway Co........................................................ 256,768
700 Toho Co................................................................ 111,971
23,574 Tohoku Electric Power.................................................. 569,058
97,000 Tokai Bank............................................................. 1,354,122
74,000 Tokio Marine & Fire Insurance Co....................................... 968,477
8,000 Tokyo Broadcasting..................................................... 131,845
8,000 Tokyo Dome Corp........................................................ 137,274
65,016 Tokyo Electric Power................................................... 1,739,615
7,000 Tokyo Electron......................................................... 271,445
134,000 Tokyo Gas Co........................................................... 472,857
22,000 Tokyotokeiba Co........................................................ 91,710
60,000 Tokyu Corp............................................................. 424,036
32,767 Toppan Printing Co. Ltd................................................ 435,087
67,000 Toray Industries, Inc.................................................. 441,680
29,000 Tosoh Corp.*........................................................... 139,726
10,000 Tostem Corp............................................................ 332,520
16,000 Toto................................................................... 223,360
10,000 Toyo Seikan Kaisha..................................................... 299,559
14,000 Toyobo Co.............................................................. 50,353
15,000 Toyoda Automatic Loom Work, Ltd........................................ 269,021
179,000 Toyota Motor Corp...................................................... 3,800,326
40,000 UBE Industries*........................................................ 151,234
13,000 Unitika*............................................................... 39,573
10,000 Yamaguchi Bank......................................................... 170,623
11,000 Yamaha Corp............................................................ 198,349
58,000 Yamaichi Securities Co................................................. 451,510
15,000 Yamanouchi Pharmaceutical Co., Ltd..................................... 322,826
17,000 Yamato Transport....................................................... 202,711
11,000 Yamazaki Baking Co..................................................... 204,747
53,000 Yasuda Trust & Banking................................................. 313,936
-------------
98,181,923
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MALAYSIA - 1.17%
100,000 Amsteel Corp........................................................... $ 74,443
80,000 Amsteel Corp. Bonus Issue.............................................. 59,553
201,000 Faber Group Bhd*....................................................... 171,795
130,000 Golden Hope Plants..................................................... 217,102
128,000 Highlands & Lowlands................................................... 205,695
42,000 Kuala Lumpur KEPG...................................................... 133,168
32,000 Malayan Bank Berhad.................................................... 269,723
66,000 Malaysia Mining Corp................................................... 95,143
58,000 Multi Purpose Holding.................................................. 84,982
72,000 Perlis Plantations..................................................... 225,452
10,000 Resorts World.......................................................... 53,566
51,000 Selangor Properties.................................................... 48,812
114,000 Shell Refinery (M)..................................................... 330,025
215,340 Sime Darby BHD......................................................... 572,509
95,000 Telekom Malaysia....................................................... 740,871
30,000 Tenaga Nasional........................................................ 118,161
7,000 United Engineers....................................................... 44,665
-------------
3,445,665
-------------
NETHERLANDS - 3.55%
15,578 ABN/AMRO Holdings NV................................................... 710,395
6,287 Ahold NV............................................................... 256,894
4,383 Akzo Nobel NV.......................................................... 507,480
38,430 Elsevier NV............................................................ 513,043
734 Getronics NV........................................................... 34,342
2,670 Heineken NV............................................................ 474,207
1,920 IHC Caland NV.......................................................... 64,679
13,661 International Nederlanden Groep NV..................................... 913,580
3,862 KLM Royal Dutch Airlines Ord........................................... 135,882
5,120 KNP BT (Kon) NV........................................................ 131,594
1,262 Koninklijke Hoogovens NV............................................... 42,277
3,064 OCE V/D Grinten NV..................................................... 186,555
1,100 Pakhoed NV Kon......................................................... 30,262
16,840 Philips Electronic..................................................... 609,312
30,247 Royal Dutch Petroleum.................................................. 4,230,458
1,100 Stad Rotterdam......................................................... 32,801
249 Stork NV............................................................... 6,182
9,031 Unilever NV (Un)....................................................... 1,270,433
3,179 Wolters Kluwer......................................................... 301,045
-------------
10,451,421
-------------
</TABLE>
See Notes to Financial Statements.
33
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
NEW ZEALAND - 0.22%
109,100 Brierley Investment Ltd................................................ $ 86,302
48,581 Carter Holt Harvey..................................................... 104,808
400 Ceramco Corp., Ltd..................................................... 468
5,100 Fisher & Paykel........................................................ 15,504
56,445 Fletcher Challenge..................................................... 130,261
15,233 Fletcher Challenge (Forest Division)................................... 21,710
8,200 Lion Nathan Ltd........................................................ 19,567
56,765 Telecom Corp. of New Zealand........................................... 244,928
3,487 Wilson & Horton........................................................ 20,859
-------------
644,407
-------------
NORWAY - 1.44%
400 Aker AS, Series A...................................................... 5,318
3,800 Bergesen Dy AS (Class A)............................................... 75,785
1,400 Bergesen Dy AS (Class B)............................................... 27,478
1,000 Dyno Industrier........................................................ 23,426
14,450 Hafslund Nycomed, Series A............................................. 378,526
9,526 Hafslund Nycomed, Series B............................................. 242,000
8,050 Kvaerner AS, Series A.................................................. 285,413
2,200 Leif Hoegh & Co........................................................ 32,733
54,350 Norsk Hydro AS......................................................... 2,288,293
1,000 Norske Skogsindust (Class A)........................................... 29,440
9,400 Orkla AS (Class A)..................................................... 468,672
65,500 Uni Storebrand AS*..................................................... 362,861
1,200 Unitor AS.............................................................. 16,525
-------------
4,236,470
-------------
SINGAPORE - 0.65%
5,600 City Developments...................................................... 40,779
11,000 DBS Land............................................................... 37,173
12,750 Development Bank Singapore............................................. 158,646
10,000 Fraser & Neave......................................................... 127,257
29,600 Haw Par Brothers International......................................... 63,198
11,000 Inchcape Berhad........................................................ 35,307
2,000 Jurong Shipyard........................................................ 15,412
6,000 Keppel Corp............................................................ 53,448
500 Malayan Bank Bhd....................................................... 4,136
60,750 Natsteel Ltd........................................................... 124,552
59,000 Neptune Orient Lines................................................... 66,322
14,166 Overseas Chinese Bank.................................................. 177,267
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
SINGAPORE (CONTINUED)
1,000 Overseas Union Enterprises............................................. $ 5,055
1,000 Shangri-La Hotel....................................................... 3,888
10,000 Singapore Airlines (Foreign)........................................... 93,321
25,320 Singapore Press (Foreign).............................................. 447,519
6,000 Singapore Press Holdings Ltd........................................... 59,386
3,300 Straits Steamship...................................................... 11,152
89,000 Straits Trading Co..................................................... 208,899
7,350 United Overseas Bank................................................... 70,670
52,000 United Overseas Land................................................... 98,892
8,000 United Industrial Corp................................................. 7,862
-------------
1,910,141
-------------
SPAIN - 1.58%
300 Acerinox SA............................................................ 30,342
1,650 Aguila SA (El)*........................................................ 10,133
7,550 Autopistas Cesa........................................................ 85,883
13,247 BCO Bilbao Vizcaya..................................................... 477,178
9,271 BCO Central Hispano.................................................... 187,994
8,832 BCO Santander SA....................................................... 443,361
675 Corp Financial Alba.................................................... 41,563
800 Corporacion Mapfre SA.................................................. 44,776
3,400 Dragados Y Construction................................................ 44,701
400 Ebro Agricolas......................................................... 4,187
100 Empresa Nacl Celulosa.................................................. 1,624
15,070 Empresa Nacl Electricid................................................ 853,398
700 Ercros SA*............................................................. 496
700 Ercros SA Rights*...................................................... 6
1,130 Fab Automobile Renault................................................. 18,722
752 Fom Const Y Contra..................................................... 57,648
1,856 Gas Natural Sdg SA..................................................... 289,149
1,487 Grupo Duro Felguera.................................................... 5,246
52,024 Iberdrola SA........................................................... 476,001
236 Inm Metrovacesa........................................................ 7,781
9,877 Nissan Motor Iber...................................................... 0
820 Portland Valderriv..................................................... 51,708
100 Prosegur Compania...................................................... 2,481
16,298 Repsol SA.............................................................. 534,014
2,498 Sarrio SA.............................................................. 9,575
1,106 Tabacalera SA, Series A................................................ 41,937
55,675 Telefonica De Espana SA................................................ 770,994
9,566 Union Electrica Fenosa SA.............................................. 57,562
5,400 Uralita................................................................ 48,963
</TABLE>
See Notes to Financial Statements.
34
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
SPAIN (CONTINUED)
200 Urbis SA*.............................................................. $ 946
2,361 Vallehermoso SA........................................................ 43,886
1,221 Viscofan Envolturas.................................................... 14,493
-------------
4,656,748
-------------
SWEDEN - 1.72%
3,900 Asea AB, Series A...................................................... 379,570
2,850 Asea AB, Series B...................................................... 277,809
28,650 Astra AB, Series A..................................................... 1,145,619
5,000 Astra AB, Series B..................................................... 198,425
8,250 Atlas Copco AB, Series A............................................... 126,977
500 Atlas Copco AB, Series B............................................... 7,545
3,700 Electrolux AB, Series B................................................ 152,138
54,600 Ericsson (Lm) Tel, Series B............................................ 1,071,040
300 Esselte AB, Series B................................................... 4,504
4,400 Euroc Industrie AB, Series A........................................... 117,516
12,000 Skandia Foersakrings AB................................................ 325,024
100 Skanska AB, Series B................................................... 3,440
9,300 SKF AB, Series A....................................................... 176,115
10,100 SKF AB, Series B....................................................... 193,551
14,500 Stora Kopparbergs, Series A............................................ 170,660
3,250 Stora Kopparbergs, Series B............................................ 38,987
3,800 Svenska Cellulosa, Series B............................................ 59,060
6,300 Svenska Handelsbanken, Series B........................................ 126,433
7,960 Trelleborg AB, Series B................................................ 85,879
19,000 Volvo (AB), Series B................................................... 389,908
-------------
5,050,200
-------------
SWITZERLAND - 5.27%
390 Adia SA................................................................ 63,721
40 Alusuisse-Lonza Holdings............................................... 31,773
225 Alusuisse-Lonza Holdings Regd.......................................... 178,725
450 BBC Brown Boveri....................................................... 524,051
245 Ciba Geigy AG.......................................................... 215,052
1,310 Ciba Geigy AG Regd..................................................... 1,155,563
6,420 CS Holding AG.......................................................... 659,770
5 Danzas Holdings AG..................................................... 1,043
30 Fischer (Georg) AG..................................................... 39,108
65 Grand Magasin Jelmoli.................................................. 29,375
325 Grand Magasin Jelmoli, Regd............................................ 29,940
436 Holderbk Fn Glarus..................................................... 335,341
455 Interdiscount Holdings................................................. 28,669
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
SWITZERLAND (CONTINUED)
260 Merkur Holdings AG Regd................................................ $ 57,168
1,955 Nestle SA.............................................................. 2,167,973
361 Roche Holdings AG (Genusscheine)....................................... 2,862,836
82 Roche Holdings AG...................................................... 1,150,914
200 Sandoz AG.............................................................. 184,591
1,850 Sandoz AG Regd......................................................... 1,697,821
15 Schindler Holdings AG.................................................. 15,578
1,395 Schweiz Bankgesellsch.................................................. 1,515,446
1,770 Schweiz Bankverein..................................................... 362,260
1,305 Schweiz Bankverein Regd................................................ 534,180
715 Schweiz Ruckversich.................................................... 833,902
81 SGS Holding............................................................ 161,204
25 Sulzer AG.............................................................. 13,362
157 Sulzer AG, Regd........................................................ 90,053
220 Swissair, Regd......................................................... 160,605
1,350 Zurich Versicherun..................................................... 404,771
-------------
15,504,795
-------------
UNITED KINGDOM - 16.49%
86,437 Abbey National......................................................... 853,525
10,902 Amec................................................................... 15,911
1,100 Amstrad................................................................ 3,347
17,957 Anglian Water.......................................................... 168,674
13,646 Argos.................................................................. 126,273
61,223 Argyll Group........................................................... 323,186
43,404 Arjo Wiggins Apple..................................................... 111,192
92,806 Barclays............................................................... 1,064,829
171 Barratt Development.................................................... 656
67,527 Bass................................................................... 753,817
177,401 BAT Industries......................................................... 1,563,081
19,014 BBA Group.............................................................. 85,464
61,885 BET Holdings, Plc...................................................... 122,025
21,051 BICC................................................................... 90,207
25,587 Blue Circle Industries................................................. 136,063
12,748 BOC Group.............................................................. 178,331
53,468 Boots Co............................................................... 486,464
24,797 Bowthorpe.............................................................. 161,699
37,736 BPB Industries......................................................... 176,938
16,269 British Aerospace...................................................... 201,316
48,902 British Airways........................................................ 353,812
262,416 British Gas............................................................ 1,034,865
</TABLE>
See Notes to Financial Statements.
35
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
28,409 British Land Co........................................................ $ 168,051
318,821 British Petroleum...................................................... 2,668,058
94,916 British Steel.......................................................... 239,839
372,866 British Telecommunications............................................. 2,049,347
215,639 BTR.................................................................... 1,101,495
171 Burmah Castrol Plc..................................................... 2,480
160,216 Cable & Wireless....................................................... 1,144,256
53,174 Cadbury Schweppes...................................................... 439,208
13,652 Calor Group............................................................ 54,262
63,237 Caradon Plc............................................................ 191,945
17,217 Carlton Communications................................................. 258,223
31,787 Chubb Security......................................................... 157,188
35,426 Coats Viyella.......................................................... 96,254
800 Cobham Group........................................................... 5,850
21,273 Commercial Union....................................................... 207,419
7,798 Costain Group*......................................................... 8,596
21,004 Courtaulds............................................................. 132,726
3,534 Courtaulds Textile..................................................... 19,533
4,808 De La Rue.............................................................. 48,596
6,722 Delta.................................................................. 41,642
9,988 East Midlands Electric................................................. 103,434
32,398 Electrocomponents...................................................... 181,084
23,334 English China Clay..................................................... 114,844
21,296 FKI.................................................................... 54,556
30,294 Forte Plc.............................................................. 155,449
32,269 General Accident....................................................... 326,156
185,160 General Electric Co.................................................... 1,020,552
10,421 GKN.................................................................... 126,039
199,438 Glaxo Wellcome Plc..................................................... 2,833,274
121,200 Grand Metropolitan..................................................... 873,132
2,100 Great Portland Est..................................................... 5,673
68,616 Great University Stores................................................ 729,752
142 Guardian Royal Exchange Plc............................................ 608
116,261 Guinness............................................................... 855,602
34,493 Hammerson Plc.......................................................... 188,777
329,519 Hanson................................................................. 984,852
15,900 Harrison & Crosfield................................................... 39,498
27,842 Hepworth............................................................... 137,896
49,081 HSBC Holdings.......................................................... 766,604
102,105 HSBC Holdings Ord Hkd10................................................ 1,556,747
18,984 IMI.................................................................... 96,824
51,551 Imperial Chemical Industries........................................... 610,690
10,804 Johnson Matthey........................................................ 87,730
29,579 Kingfisher............................................................. 248,910
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
42,369 Ladbroke Group......................................................... $ 96,371
800 Laing (John)........................................................... 3,441
3,446 Laird Group............................................................ 20,706
34,945 Land Securities........................................................ 334,757
40,782 Lasmo.................................................................. 110,807
20,323 Legal & General Group.................................................. 211,408
3,101 Lex Service............................................................ 14,733
202,518 Lloyds Bank............................................................ 1,042,333
8,111 London Electricity..................................................... 72,285
40,060 Lonrho................................................................. 109,467
35,924 Lucas Industries....................................................... 100,954
177,926 Marks & Spencer........................................................ 1,243,115
8,306 Marley................................................................. 14,314
13,249 MEPC................................................................... 81,253
13,726 Mercury Asset Management............................................... 185,406
9,189 Meyer International.................................................... 55,070
31,209 National Grid Group Plc................................................ 96,668
94,566 National Power......................................................... 659,970
11,226 Next................................................................... 79,478
20,014 North West Water....................................................... 191,414
5,532 Northern Electric...................................................... 53,853
13,207 Ocean Group............................................................ 79,560
500 Oxford Instruments..................................................... 3,144
29,178 P & O.................................................................. 215,636
32,273 Pearson................................................................ 312,668
30,100 Pilkington............................................................. 94,401
9,659 Provident Financial.................................................... 122,822
115,604 Prudential Corp........................................................ 744,870
16,186 Racal Electronics...................................................... 71,622
17,647 Redland................................................................ 106,581
11,098 Reed International..................................................... 169,206
110,855 Reuters Holdings....................................................... 1,015,469
24,358 Rexam Plc.............................................................. 133,877
6,254 RMC Group.............................................................. 96,226
77,521 Rolls Royce............................................................ 227,479
47,137 Royal Bank Scotland Group.............................................. 428,864
34,809 Royal Insurance........................................................ 206,450
61,400 RTZ Corp............................................................... 892,285
77,228 Rugby Group............................................................ 131,895
110,523 Sainsbury J............................................................ 674,380
11,679 Schroders.............................................................. 248,057
31,161 Scot & Newcastle....................................................... 296,573
36,383 Scottish Power......................................................... 209,006
83,403 Sears.................................................................. 134,671
</TABLE>
See Notes to Financial Statements.
36
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
UNITED KINGDOM (CONTINUED)
16,318 Sedgwick Group......................................................... $ 30,656
23,442 Seeboard............................................................... 191,443
23,972 Slough Estates......................................................... 81,509
75,359 Smithkline BCH/BEC Units............................................... 821,357
79,400 Smithkline Beecham, Class A............................................ 875,263
12,464 Smiths Industries...................................................... 123,076
14,334 Southern Electric...................................................... 201,185
7,608 Southern Water......................................................... 81,268
25,910 St. James Place Cap.................................................... 41,636
39,582 T & N.................................................................. 99,557
51,452 Tarmac................................................................. 82,281
23,280 Tate & Lyle............................................................ 170,602
55,683 Taylor Woodrow......................................................... 101,583
91,868 Tesco.................................................................. 423,624
17,099 Thames Water........................................................... 149,199
24,219 Thorn Emi.............................................................. 570,429
30,233 TI Group............................................................... 215,453
65,331 Trafalgar House*....................................................... 28,148
23,478 Transport Development Group............................................ 68,165
9,334 Unigate................................................................ 59,562
52,387 Unilever............................................................... 1,076,074
32,669 United Biscuits Holdings............................................... 129,848
11,415 Vickers................................................................ 45,016
162,568 Vodafone Group......................................................... 581,789
8,987 Welsh Water............................................................ 108,137
23,173 Williams Holdings...................................................... 118,009
27,922 Willis Corroon Group................................................... 61,126
31,929 Wilson (C) Holdings.................................................... 83,035
30,094 Wimpey (George)........................................................ 67,282
29,792 Wolseley............................................................... 208,610
54,369 Zeneca Group........................................................... 1,051,790
-------------
48,485,583
-------------
TOTAL COMMON STOCKS.................................................... 277,444,778
(Cost $227,008,277) -------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
PREFERRED STOCKS - 0.12%
AUSTRALIA - 0.04%
27,270 News Corp.............................................................. $ 127,594
-------------
AUSTRIA - 0.03%
1,733 Creditanstalt Bank..................................................... 89,143
-------------
GERMANY - 0.04%
527 Volkswagen AG.......................................................... 128,061
-------------
UNITED KINGDOM - 0.01%
9,706 Welsh Water............................................................ 16,426
-------------
TOTAL PREFERRED STOCKS................................................. 361,224
(Cost $271,559) -------------
<CAPTION>
PAR VALUE
---------
<C> <S> <C>
COMMERCIAL PAPER - 7.10%
$ 10,895,008 General Motors Acceptance Corp
6.05% 01/02/96......................................................... 10,895,008
10,000,000 Sony Capital Corp.
3.05% 01/02/96......................................................... 9,998,305
-------------
TOTAL COMMERCIAL PAPER................................................. 20,893,313
(Cost $20,893,313) -------------
TOTAL INVESTMENTS - 101.56%............................................................ 298,699,315
(Cost $248,173,149)** -------------
NET OTHER ASSETS AND LIABILITIES - (1.56)%............................................. (4,606,219)
-------------
NET ASSETS - 100.00%................................................................... $ 294,093,096
=============
</TABLE>
- ----------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $248,361,991.
----------------------------------------
FOREIGN CURRENCY CONTRACTS PURCHASED
<TABLE>
<CAPTION>
FOREIGN CONTRACTS SETTLEMENT CONTRACTS IN EXCHANGE APPRECIATION
CURRENCY TO DELIVER DATES AT VALUE FOR U.S. $ (DEPRECIATION)
- ---------- ------------------ ---------- ----------- ------------- --------------
<S> <C> <C> <C> <C> <C>
2,284,968 Austrian Schilling 01/02/96 $ 226,902 $ 225,875 $ 1,027
17,533,572 Austrian Schilling 01/02/96 1,741,123 1,744,009 (2,886)
----------- ------------- --------------
$ 1,968,025 $ 1,969,884 $ (1,859)
=========== ============= ==============
</TABLE>
See Notes to Financial Statements.
37
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMON STOCK - 96.52%
CHEMICAL AND DRUGS - 10.77%
31,500 Abbott Laboratories.................................................... $ 1,315,125
4,500 Air Products & Chemicals, Inc.......................................... 237,375
1,200 Alberto-Culver Co., Class B............................................ 41,250
3,500 Alza Corp.*............................................................ 86,625
12,500 American Home Products Corp............................................ 1,212,500
10,600 Amgen, Inc.*........................................................... 629,375
2,700 Avon Products, Inc..................................................... 203,513
5,000 Biomet, Inc.*.......................................................... 89,375
20,200 Bristol-Myers Squibb Co................................................ 1,734,675
2,100 Clorox Co.............................................................. 150,413
5,800 Colgate Palmolive Co................................................... 407,450
4,000 Dial Corp.............................................................. 118,500
10,400 Dow Chemical Co........................................................ 731,900
22,100 duPont (E.I.) De Nemours & Co.......................................... 1,544,238
3,200 Eastman Chemical Co.................................................... 200,400
2,900 Ecolab, Inc............................................................ 87,000
4,000 Grace (W.R.) & Co...................................................... 236,500
2,800 Great Lakes Chemical Corp.............................................. 201,600
4,400 Hercules, Inc.......................................................... 248,050
25,800 Johnson & Johnson...................................................... 2,209,125
22,000 Lilly (Eli) & Co....................................................... 1,237,500
4,600 Monsanto Co............................................................ 563,500
6,300 Morton International, Inc.............................................. 226,013
2,900 Nalco Chemical Co...................................................... 87,363
25,300 Pfizer, Inc............................................................ 1,593,900
17,830 Pharmacia & Upjohn, Inc.*.............................................. 690,913
5,900 Praxair, Inc........................................................... 198,388
27,300 Procter & Gamble Co.................................................... 2,265,900
2,900 Rohm & Haas Co......................................................... 186,688
14,600 Schering-Plough Corp................................................... 799,350
3,600 Sherwin-Williams Co.................................................... 146,700
2,100 Sigma-Aldrich Corp..................................................... 103,950
5,500 Union Carbide Corp..................................................... 206,250
5,400 Warner-Lambert Co...................................................... 524,475
-------------
20,515,879
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
COMMUNICATIONS - 10.09%
19,700 Airtouch Communications, Inc.*......................................... $ 556,525
7,500 Alltel Corp............................................................ 221,250
63,456 American Telephone & Telegraph Corp.................................... 4,108,721
22,100 Ameritech Corp......................................................... 1,303,900
1,625 Andrew Corp.*.......................................................... 62,156
17,400 Bell Atlantic Corp..................................................... 1,163,625
39,600 Bellsouth Corp......................................................... 1,722,600
6,100 Capital Cities/ABC, Inc................................................ 752,588
9,600 Comcast Corp. Special, Class A......................................... 174,600
4,900 DSC Communications Corp.*.............................................. 180,688
38,600 GTE Corp............................................................... 1,698,400
27,000 MCI Communications Corp................................................ 705,375
10,100 Northern Telecom, Ltd.................................................. 434,300
17,000 NYNEX Corp............................................................. 918,000
17,100 Pacific Telesis Group.................................................. 574,988
24,300 SBC Communications, Inc................................................ 1,397,250
3,300 Scientific-Atlanta, Inc................................................ 49,500
13,900 Sprint Corp............................................................ 554,263
26,000 Tele-Communications, Inc., Class A*.................................... 516,750
3,800 Tellabs, Inc.*......................................................... 140,600
8,600 Unicom Corp............................................................ 281,650
18,800 U.S. West Inc.......................................................... 672,100
18,800 U.S. West Media Group, Inc.*........................................... 357,200
14,400 Viacom Inc., Class B*.................................................. 682,200
-------------
19,229,229
-------------
ENERGY - 9.50%
3,700 Amerada Hess Corp...................................................... 196,100
19,800 Amoco Corp............................................................. 1,423,125
2,700 Ashland, Inc........................................................... 94,838
6,400 Atlantic Richfield Co.................................................. 708,800
6,000 Baker Hughes, Inc...................................................... 146,250
5,000 Burlington Resources, Inc.............................................. 196,250
26,000 Chevron Corp........................................................... 1,365,000
4,450 Coastal Corp........................................................... 165,763
7,800 Dresser Industries, Inc................................................ 190,125
10,000 Enron Corp............................................................. 381,250
2,900 Enserch Corp........................................................... 47,125
49,500 Exxon Corp............................................................. 3,966,188
4,900 Halliburton Co......................................................... 248,063
1,100 Helmerich & Payne, Inc................................................. 32,725
2,200 Kerr-McGee Corp........................................................ 139,700
</TABLE>
See Notes to Financial Statements.
38
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ENERGY (CONTINUED)
1,400 Louisiana Land & Exploration Co........................................ $ 60,025
2,300 McDermott International, Inc........................................... 50,600
15,800 Mobil Corp............................................................. 1,769,600
12,700 Occidental Petroleum Corp.............................................. 271,463
1,200 Oneok, Inc............................................................. 27,450
4,400 Oryx Energy Co.*....................................................... 58,850
8,800 Peco Energy Co......................................................... 265,100
2,000 Pennzoil Co............................................................ 84,500
10,400 Phillips Petroleum Co.................................................. 354,900
3,600 Rowan Cos., Inc.*...................................................... 35,550
21,400 Royal Dutch Petroleum Co., ADR......................................... 3,020,075
3,872 Santa Fe Energy Resources, Inc.*....................................... 37,268
9,600 Schlumberger, Ltd...................................................... 664,800
3,700 Sonat, Inc............................................................. 131,813
3,274 Sun Co., Inc........................................................... 89,626
7,100 Tenneco, Inc........................................................... 352,338
10,500 Texaco, Inc............................................................ 824,250
9,800 Unocal Corp............................................................ 285,425
11,500 USX-Marathon Group..................................................... 224,250
4,300 Williams Cos., Inc..................................................... 188,663
-------------
18,097,848
-------------
FOOD AND BEVERAGE - 7.62%
10,100 Albertson's, Inc....................................................... 332,038
10,085 Anheuser-Busch Cos., Inc............................................... 674,434
21,146 Archer-Daniels-Midland Co.............................................. 380,628
800 Brown Group, Inc....................................................... 11,400
3,000 Brown-Forman Corp., Class B............................................ 109,500
9,900 Campbell Soup Co....................................................... 594,000
50,000 Coca-Cola Co........................................................... 3,712,500
9,525 Conagra, Inc........................................................... 392,906
1,600 Coors (Adolph) Co., Class B............................................ 35,400
5,800 CPC International, Inc................................................. 398,025
6,800 Darden Restaurants, Inc................................................ 80,750
1,600 Fleming Cos., Inc...................................................... 33,000
6,300 General Mills, Inc..................................................... 363,825
2,500 Giant Food, Inc., Class A.............................................. 78,750
1,600 Great Atlantic & Pacific Tea Co........................................ 36,800
14,700 Heinz (H.J.) Co........................................................ 486,938
3,300 Hershey Foods Corp..................................................... 214,500
4,400 International Flavors & Fragrances..................................... 211,200
8,700 Kellogg Co............................................................. 672,075
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
FOOD AND BEVERAGE (CONTINUED)
4,800 Kroger Co.*............................................................ $ 180,000
1,000 Luby's Cafeterias, Inc................................................. 22,250
27,700 McDonald's Corp........................................................ 1,249,963
31,400 Pepsico, Inc........................................................... 1,754,475
3,300 Pioneer Hi-Bred International, Inc..................................... 183,563
5,700 Quaker Oats Co......................................................... 196,650
4,280 Ralston-Purina Group................................................... 266,965
2,300 Ryan's Family Steak Houses, Inc.*...................................... 16,100
19,300 Sara Lee Corp.......................................................... 615,188
14,900 Seagram Co., Ltd....................................................... 515,913
1,800 Shoney's, Inc.*........................................................ 18,450
7,300 Sysco Corp............................................................. 237,250
4,400 Wendy's International, Inc............................................. 93,500
4,500 Whitman Corp........................................................... 104,625
4,600 Wrigley (Wm.) Jr. Co................................................... 241,500
-------------
14,515,061
-------------
BANKING - 6.60%
5,000 Ahmanson (H.F.) & Co................................................... 132,500
15,586 Banc One Corp.......................................................... 588,372
4,800 Bank of Boston Corp.................................................... 222,000
8,200 Bank of New York Co., Inc.............................................. 399,750
14,724 Bankamerica Corp....................................................... 953,379
3,100 Bankers Trust New York Corp............................................ 206,150
4,100 Barnett Banks, Inc..................................................... 241,900
5,400 Boatmen's Bancshares, Inc.............................................. 220,725
7,100 Chase Manhattan Corp................................................... 430,438
9,974 Chemical Banking Corp.................................................. 585,973
17,000 Citicorp............................................................... 1,143,250
4,900 Comerica, Inc.......................................................... 196,613
5,600 Corestates Financial Corp.............................................. 212,100
5,200 First Bank System, Inc................................................. 258,050
12,753 First Chicago NBD Corp................................................. 503,744
3,500 First Fidelity Bancorp................................................. 263,813
3,000 First Interstate Bancorp............................................... 409,500
6,800 First Union Corp....................................................... 378,250
9,807 Fleet Financial Group, Inc............................................. 399,639
2,500 Golden West Financial Corp............................................. 138,125
5,800 Great Western Financial Corp........................................... 147,900
9,400 Keycorp................................................................ 340,750
5,900 MBNA Corp.............................................................. 217,563
5,650 Mellon Bank Corp....................................................... 303,688
</TABLE>
See Notes to Financial Statements.
39
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
BANKING (CONTINUED)
7,500 Morgan (J.P.) & Co., Inc............................................... $ 601,875
6,300 National City Corp..................................................... 208,688
10,757 Nationsbank Corp....................................................... 748,956
13,900 Norwest Corp........................................................... 458,700
9,100 PNC Bank Corp.......................................................... 293,475
2,200 Republic New York Corp................................................. 136,675
4,600 Suntrust Banks, Inc.................................................... 315,100
6,000 U.S. Bancorp........................................................... 201,750
6,800 Wachovia Corp.......................................................... 311,100
1,900 Wells Fargo & Co....................................................... 410,400
-------------
12,580,891
-------------
ELECTRIC AND ELECTRONIC MACHINERY - 6.48%
4,400 Advanced Micro Devices, Inc.*.......................................... 72,600
3,500 Applied Materials, Inc.*............................................... 137,813
1,400 Cincinnati Milacron, Inc............................................... 36,750
8,900 Emerson Electric Co.................................................... 727,575
66,600 General Electric Co.................................................... 4,795,200
1,500 Giddings & Lewis, Inc.................................................. 24,750
17,732 Gillette Co............................................................ 924,281
2,200 Grainger (W.W.), Inc................................................... 145,750
1,700 Harris Corp............................................................ 92,863
5,400 Honeywell, Inc......................................................... 262,575
32,800 Intel Corp............................................................. 1,861,400
4,700 ITT Corp.*............................................................. 249,100
4,700 ITT Industries, Inc.*.................................................. 112,800
5,400 LSI Logic Corp.*....................................................... 176,850
4,600 Maytag Corp............................................................ 93,150
8,200 Micron Technology, Inc................................................. 324,925
23,500 Motorola, Inc.......................................................... 1,339,500
5,300 National Semiconductor Corp.*.......................................... 117,925
1,800 Perkin-Elmer Corp...................................................... 67,950
1,900 Raychem Corp........................................................... 108,063
1,400 Tektronix, Inc......................................................... 68,775
2,400 Teledyne, Inc.*........................................................ 61,500
7,500 Texas Instruments, Inc................................................. 388,125
2,900 Whirlpool Corp......................................................... 154,425
-------------
12,344,645
-------------
MACHINERY - 4.85%
5,100 Amdahl Corp.*.......................................................... 43,350
5,200 Apple Computer, Inc.................................................... 165,750
3,100 Cabletron Systems, Inc.*............................................... 251,100
7,900 Caterpillar, Inc....................................................... 464,125
10,900 Cisco Systems, Inc.*................................................... 813,413
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MACHINERY (CONTINUED)
10,600 Compaq Computer Corp.*................................................. $ 508,800
1,100 Cray Research, Inc.*................................................... 27,225
1,700 Cummins Engine Co., Inc................................................ 62,900
1,600 Data General Corp.*.................................................... 22,000
10,400 Deere & Co............................................................. 366,600
6,000 Digital Equipment Corp.*............................................... 384,750
4,800 Dover Corp............................................................. 177,000
2,300 EG & G, Inc............................................................ 55,775
1,600 FMC Corp.*............................................................. 108,200
2,022 General Signal Corp.................................................... 65,462
1,922 Harnischfeger Industries, Inc.......................................... 63,907
20,400 Hewlett-Packard Co..................................................... 1,708,500
4,500 Ingersoll-Rand Co...................................................... 158,063
2,000 Intergraph Corp.*...................................................... 31,500
22,700 International Business Machines Corp................................... 2,082,725
400 Nacco Industries, Inc., Class A........................................ 22,200
15,700 Novell, Inc.*.......................................................... 223,725
6,000 Pitney-Bowes, Inc...................................................... 282,000
1,000 Shared Medical Systems Corp............................................ 54,375
6,500 Silicon Graphics, Inc.*................................................ 178,750
7,600 Sun Microsystems, Inc.*................................................ 346,750
5,000 Tandem Computers, Inc.*................................................ 53,125
2,764 Tandy Corp............................................................. 114,706
1,200 Trinova Corp........................................................... 34,350
7,300 Unisys Corp.*.......................................................... 41,063
1,740 Varity Corp.*.......................................................... 64,598
15,600 Westinghouse Electric Corp............................................. 257,400
-------------
9,234,187
-------------
ELECTRIC, GAS AND SANITARY - 4.41%
7,400 American Electric Power, Inc........................................... 299,700
6,300 Baltimore Gas & Electric Co............................................ 179,550
8,500 Browning-Ferris Industries, Inc........................................ 250,750
6,100 Carolina Power & Light Co.............................................. 210,450
8,200 Central & South West Corp.............................................. 228,575
6,635 Cinergy Corp........................................................... 203,197
2,200 Columbia Gas System, Inc.*............................................. 96,525
9,400 Consolidated Edison Co. of New York.................................... 300,800
4,000 Consolidated Natural Gas Co............................................ 181,500
4,600 Cooper Industries, Inc................................................. 169,050
6,200 Detroit Edison Co...................................................... 213,900
6,950 Dominion Resources, Inc................................................ 286,688
8,200 Duke Power Co.......................................................... 388,475
900 Eastern Enterprises.................................................... 31,725
9,100 Entergy Corp........................................................... 266,175
7,400 FPL Group, Inc......................................................... 343,175
4,900 General Public Utilities Corp.......................................... 166,600
</TABLE>
See Notes to Financial Statements.
40
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
ELECTRIC, GAS AND SANITARY (CONTINUED)
10,500 Houston Industries, Inc................................................ $ 254,625
6,200 Niagara Mohawk Power Corp.............................................. 59,675
2,200 Nicor, Inc............................................................. 60,500
5,300 Noram Energy Corp...................................................... 47,038
2,900 Northern States Power Co............................................... 142,463
6,500 Ohio Edison Co......................................................... 152,750
3,500 Pacific Enterprises.................................................... 98,875
16,900 Pacific Gas & Electric Co.............................................. 479,538
11,300 Pacificorp............................................................. 240,125
4,999 Pall Corp.............................................................. 134,348
6,400 Panhandle Eastern Corp................................................. 178,400
1,500 Peoples Energy Corp.................................................... 47,625
6,700 PP & L Resources Inc................................................... 167,500
9,800 Public Service Enterprise Group, Inc................................... 300,125
17,700 SCE Corp............................................................... 314,175
26,500 Southern Co............................................................ 652,563
9,000 Texas Utilities Co..................................................... 370,125
4,400 Union Electric Co...................................................... 183,700
2,300 Western Atlas, Inc.*................................................... 116,150
19,300 WMX Technologies, Inc.................................................. 576,588
-------------
8,393,723
-------------
INSURANCE - 3.87%
4,800 Aetna Life & Casualty Co............................................... 332,400
1,900 Alexander & Alexander Services, Inc.................................... 36,100
17,899 Allstate Corp.......................................................... 736,092
8,200 American General Corp.................................................. 285,975
18,880 American International Group, Inc...................................... 1,746,400
3,500 Chubb Corp............................................................. 338,625
3,100 Cigna Corp............................................................. 320,075
3,300 General Re Corp........................................................ 511,500
4,700 ITT Hartford Group, Inc.*.............................................. 227,363
3,150 Jefferson-Pilot Corp................................................... 146,475
4,100 Lincoln National Corp.................................................. 220,375
3,000 Loews Corp............................................................. 235,125
2,900 Marsh & McLennan Cos................................................... 257,375
4,100 Providian Corp......................................................... 167,075
5,400 Safeco Corp............................................................ 186,300
3,600 St. Paul Cos., Inc..................................................... 200,250
3,100 Torchmark Corp......................................................... 140,275
2,682 Transamerica Corp...................................................... 195,451
12,756 Travelers Group, Inc................................................... 802,034
3,100 Unum Corp.............................................................. 170,500
4,700 USF & G Corp........................................................... 79,313
1,425 U.S. Life Corp......................................................... 42,572
-------------
7,377,650
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
GENERAL MERCHANDISE - 2.92%
3,100 Dayton-Hudson Corp..................................................... $ 232,500
4,800 Dillard Department Stores, Inc., Class A............................... 136,800
5,600 Federated Department Stores, Inc.*..................................... 154,000
19,500 Kmart Corp............................................................. 141,375
9,900 May Department Stores Co............................................... 418,275
1,600 Mercantile Stores Co., Inc............................................. 74,000
9,000 Penney (J.C.), Inc..................................................... 428,625
2,600 Pep Boys-Manny, Moe & Jack Co.......................................... 66,625
8,350 Price/Costco, Inc.*.................................................... 127,338
15,575 Sears Roebuck & Co..................................................... 607,425
3,000 Supervalu, Inc......................................................... 94,500
3,100 TJX Cos., Inc.......................................................... 58,513
6,400 Unilever, ADR.......................................................... 900,800
91,500 Wal-Mart Stores, Inc................................................... 2,047,313
5,700 Woolworth Corp.*....................................................... 74,100
-------------
5,562,189
-------------
MEDICAL SUPPLIES - 2.90%
2,700 Allergan, Inc.......................................................... 87,750
2,200 Bard (C.R.), Inc....................................................... 70,950
2,500 Bausch & Lomb, Inc..................................................... 99,063
11,000 Baxter International, Inc.............................................. 460,625
2,600 Becton Dickinson & Co.................................................. 195,000
2,000 Boston Scientific Corp.*............................................... 98,000
3,300 Mallinckrodt Group, Inc................................................ 120,038
9,200 Medtronic, Inc......................................................... 514,050
49,200 Merck & Co., Inc....................................................... 3,234,900
3,000 St. Jude Medical, Inc.*................................................ 129,000
7,000 United Healthcare Corp................................................. 458,500
2,400 U.S. Surgical Corp..................................................... 51,300
-------------
5,519,176
-------------
TRANSPORTATION EQUIPMENT - 2.87%
11,300 Allied Signal, Inc..................................................... 536,750
15,219 Chrysler Corp.......................................................... 842,752
4,300 Dana Corp.............................................................. 125,775
3,300 Eaton Corp............................................................. 176,963
2,500 Echlin, Inc............................................................ 91,250
42,800 Ford Motor Co.......................................................... 1,241,200
29,800 General Motors Corp.................................................... 1,575,675
4,850 Genuine Parts Co....................................................... 198,850
3,220 Navistar International Corp.*.......................................... 33,810
1,625 Paccar, Inc............................................................ 68,453
3,150 Parker-Hannifin Corp................................................... 107,888
3,600 Textron, Inc........................................................... 243,000
2,800 TRW, Inc............................................................... 217,000
-------------
5,459,366
-------------
</TABLE>
See Notes to Financial Statements.
41
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
METALS AND MINING - 2.57%
8,950 Alcan Aluminum, Ltd.................................................... $ 278,569
7,100 Aluminum Co. Of America................................................ 375,413
4,500 Armco, Inc.*........................................................... 26,438
1,800 Asarco, Inc............................................................ 57,600
14,100 Barrick Gold Corp...................................................... 371,888
4,700 Bethleham Steel Corp.*................................................. 65,800
3,900 Crown Cork & Seal Co., Inc.*........................................... 162,825
4,000 Cyprus Amax Minerals Co................................................ 104,500
4,800 Echo Bay Mines, Ltd.................................................... 49,800
6,137 Engelhard Corp......................................................... 133,480
3,500 Fluor Corp............................................................. 231,000
8,000 Freeport-McMoRan Copper, Class B....................................... 225,000
5,900 Homestake Mining Co.................................................... 92,188
5,000 Inco, Ltd.............................................................. 166,250
2,100 Inland Steel Industries, Inc........................................... 52,763
16,700 Minnesota Mining & Manufacturing Co.................................... 1,106,375
3,709 Newmont Mining Corp.................................................... 167,832
3,700 Nucor Corp............................................................. 211,363
3,000 Phelps Dodge Corp...................................................... 186,750
1,800 Pittston Services Group................................................ 56,475
9,500 Placer Dome, Inc....................................................... 229,188
2,700 Reynolds Metals Co..................................................... 152,888
5,662 Santa Fe Pacific Gold Corp............................................. 68,652
1,700 Snap-On, Inc........................................................... 76,925
1,300 Timken Co.............................................................. 49,725
3,440 USX-U.S. Steel Group, Inc.............................................. 105,780
3,925 Worthington Industries, Inc............................................ 81,689
-------------
4,887,156
-------------
FINANCIAL SERVICES - 2.29%
19,300 American Express Co.................................................... 798,538
2,300 Beneficial Corp........................................................ 107,238
4,500 Block (H & R), Inc..................................................... 182,250
6,733 Dean Witter Discover & Co.............................................. 316,451
7,200 Federal Home Loan Mortgage Corp........................................ 601,200
10,900 Federal National Mortgage Association.................................. 1,352,963
4,100 Household International, Inc........................................... 242,413
7,000 Merrill Lynch & Co..................................................... 357,000
3,100 Morgan Stanley Group, Inc.............................................. 249,938
4,500 Salomon, Inc........................................................... 159,750
-------------
4,367,741
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
AEROSPACE AND DEFENSE - 2.13%
13,700 Boeing Co.............................................................. $ 1,073,738
2,700 General Dynamics Corp.................................................. 159,638
7,994 Lockheed Martin Corp................................................... 631,526
7,200 Loral Corp............................................................. 254,700
4,500 McDonnell Douglas Corp................................................. 414,000
2,100 Northrop Grumman Corp.................................................. 134,400
9,700 Raytheon Co............................................................ 458,325
8,700 Rockwell International Corp............................................ 460,013
4,900 United Technologies Corp............................................... 464,888
-------------
4,051,228
-------------
TOBACCO - 1.90%
7,200 American Brands, Inc................................................... 321,300
33,500 Philip Morris Cos., Inc................................................ 3,031,750
7,700 UST, Inc............................................................... 256,988
-------------
3,610,038
-------------
SOFTWARE - 1.80%
2,000 Autodesk, Inc.......................................................... 68,500
9,675 Computer Associates International, Inc................................. 550,266
23,600 Microsoft Corp.*....................................................... 2,070,900
17,300 Oracle Corp.*.......................................................... 733,088
-------------
3,422,754
-------------
PRINT AND PUBLISHING - 1.58%
3,200 American Greetings Corp., Class A...................................... 88,400
3,500 Deluxe Corp............................................................ 101,500
6,500 Donnelley (R.R.) & Sons Co............................................. 255,938
4,100 Dow Jones & Co., Inc................................................... 163,488
6,765 Dun & Bradstreet Corp.................................................. 438,034
5,600 Gannett Co., Inc....................................................... 343,700
1,300 Harland (John H.) Co................................................... 27,138
2,100 McGraw-Hill Cos., Inc.................................................. 182,963
1,200 Meredith Corp.......................................................... 50,250
4,300 Moore Corp., Ltd....................................................... 80,088
4,100 New York Times, Co., Class A........................................... 121,463
15,360 Time Warner, Inc....................................................... 581,760
4,800 Times Mirror Co., Class A.............................................. 162,600
2,500 Tribune Co............................................................. 152,813
3,000 Union Camp Corp........................................................ 142,875
4,350 Westvaco Corp.......................................................... 120,713
-------------
3,013,723
-------------
</TABLE>
See Notes to Financial Statements.
42
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
TRANSPORTATION - 1.55%
3,000 AMR Corp.*............................................................. $ 222,750
3,800 Burlington Northern Santa Fe Corp...................................... 296,400
3,300 Conrail, Inc........................................................... 231,000
1,900 Consolidated Freightways, Inc.......................................... 50,350
8,308 CSX Corp............................................................... 379,053
2,200 Delta Air Lines, Inc................................................... 162,525
2,400 Federal Express Corp.*................................................. 177,300
11,900 Laidlaw, Inc., Class B................................................. 121,975
5,200 Norfolk Southern Corp.................................................. 412,750
1,700 Roadway Services, Inc.*................................................ 83,088
3,400 Ryder System, Inc...................................................... 84,150
6,100 Southwest Airlines Co.................................................. 141,825
8,200 Union Pacific Corp..................................................... 541,200
2,700 U.S. Air Group, Inc.*.................................................. 35,775
1,200 Yellow Corp............................................................ 14,850
-------------
2,954,991
-------------
BUILDING AND CONSTRUCTION - 1.51%
1,600 Armstrong World Industries, Inc........................................ 99,200
3,600 Black & Decker Corp.................................................... 126,900
1,300 Briggs & Stratton Corp................................................. 56,388
1,200 Centex Corp............................................................ 41,700
4,000 Champion International Corp............................................ 168,000
1,500 Foster Wheeler Corp.................................................... 63,750
19,021 Home Depot, Inc........................................................ 910,630
4,900 Illinois Tool Works, Inc............................................... 289,100
1,340 Kaufman & Broad Home Corp.............................................. 19,933
6,800 Lowe's Cos., Inc....................................................... 227,800
6,700 Masco Corp............................................................. 210,213
2,100 National Service Industries, Inc....................................... 67,988
2,100 Owens Corning Fiberglass Corp.*........................................ 94,238
7,800 PPG Industries, Inc.................................................... 356,850
1,200 Pulte Corp............................................................. 40,350
1,900 Stanley Works.......................................................... 97,850
-------------
2,870,890
-------------
MANUFACTURING INDUSTRIES - 1.31%
8,936 AMP, Inc............................................................... 342,919
9,100 Corning, Inc........................................................... 291,200
1,300 Crane Co............................................................... 47,938
13,600 Eastman Kodak Co....................................................... 911,200
3,800 Hasbro, Inc............................................................ 117,800
1,695 Jostens, Inc........................................................... 41,104
8,838 Mattel, Inc............................................................ 271,769
1,900 Millipore Corp......................................................... 78,138
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
MANUFACTURING INDUSTRIES (CONTINUED)
900 Outboard Marine Corp................................................... $ 18,338
1,889 Polaroid Corp.......................................................... 89,491
800 Thomas & Betts Corp.................................................... 59,000
6,100 Tyco International, Ltd................................................ 217,313
-------------
2,486,210
-------------
PAPER - 1.21%
4,744 Alco Standard Corp..................................................... 216,445
2,300 Avery-Dennison Corp.................................................... 115,288
1,300 Ball Corp.............................................................. 35,750
2,200 Bemis, Inc............................................................. 56,375
1,900 Federal Paper Board, Inc............................................... 98,563
10,100 International Paper Co................................................. 382,538
3,500 James River Corp. of Virginia.......................................... 84,438
11,070 Kimberly-Clark Corp.................................................... 916,043
2,100 Mead Corp.............................................................. 109,725
4,046 Stone Container Corp................................................... 58,161
2,400 Temple-Inland, Inc..................................................... 105,900
2,400 Willamette Industries, Inc............................................. 135,000
-------------
2,314,226
-------------
BUSINESS SERVICES - 1.16%
5,700 Automatic Data Processing, Inc......................................... 423,225
2,000 Ceridian Corp.*........................................................ 82,500
2,300 Computer Sciences Corp.*............................................... 161,575
7,400 CUC International, Inc.*............................................... 252,525
7,300 First Data Corp........................................................ 488,188
2,500 Safety-Kleen Corp...................................................... 39,063
4,150 Service Corp. International............................................ 182,600
4,289 Xerox Corp............................................................. 587,593
-------------
2,217,269
-------------
HOSPITAL MANAGEMENT - 0.89%
3,800 Beverly Enterprises, Inc.*............................................. 40,375
17,733 Columbia/HCA Healthcare Corp........................................... 899,950
1,900 Community Psychiatric Centers.......................................... 23,275
6,800 Humana Inc. New*....................................................... 186,150
2,700 Manor Care, Inc........................................................ 94,500
8,500 Tenet Healthcare Corp.*................................................ 176,375
6,100 U.S. Healthcare, Inc................................................... 283,650
-------------
1,704,275
-------------
</TABLE>
See Notes to Financial Statements.
43
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
APPAREL STORES - 0.80%
4,400 Charming Shoppes, Inc.................................................. $ 12,650
5,700 Gap, Inc............................................................... 239,400
14,300 Limited, Inc........................................................... 248,463
3,200 Liz Claiborne, Inc..................................................... 88,800
4,500 Melville Corp.......................................................... 138,375
5,700 Nike, Inc., Class B.................................................... 396,863
3,500 Nordstrom, Inc......................................................... 141,750
3,400 Reebok International, Ltd.............................................. 96,050
2,100 Stride Rite Corp....................................................... 15,750
2,700 VF Corp................................................................ 142,425
-------------
1,520,526
-------------
RETAIL - 0.71%
6,300 American Stores Co..................................................... 168,525
4,100 Circuit City Stores, Inc............................................... 113,263
1,425 Handleman Co........................................................... 8,194
3,116 Harcourt General, Inc.................................................. 130,483
900 Longs Drug Stores, Inc................................................. 43,088
3,600 Rite Aid Corp.......................................................... 123,300
10,850 Toys `R' Us, Inc.*..................................................... 235,988
9,800 Walgreen Co............................................................ 292,775
6,400 Winn-Dixie Stores, Inc................................................. 236,000
-------------
1,351,616
-------------
AMUSEMENT AND RECREATION SERVICES - 0.70%
4,100 Brunswick Corp......................................................... 98,400
20,800 Walt Disney Co......................................................... 1,227,200
-------------
1,325,600
-------------
LUMBER AND WOOD - 0.45%
2,008 Boise Cascade Corp..................................................... 69,527
3,900 Georgia-Pacific Corp................................................... 267,638
4,600 Louisiana-Pacific Corp................................................. 111,550
1,200 Potlatch Corp.......................................................... 48,000
8,150 Weyerhaeuser Co........................................................ 352,488
-------------
849,203
-------------
RUBBER - 0.38%
3,600 Cooper Tire & Rubber Co................................................ 88,650
1,100 Goodrich (B.F.) Co..................................................... 74,938
6,100 Goodyear Tire & Rubber Co.............................................. 276,788
2,600 Premark International, Inc............................................. 131,625
6,300 Rubbermaid, Inc........................................................ 160,650
-------------
732,651
-------------
<CAPTION>
VALUE
SHARES (NOTE 2)
------ --------
<C> <S> <C>
HOTELS-LEISURE - 0.24%
2,000 Bally Entertainment Corp.*............................................. $ 28,000
4,400 Harrah's Entertainment, Inc.*.......................................... 106,700
2,100 Hilton Hotels Corp..................................................... 129,150
5,200 Marriott International, Inc............................................ 198,900
-------------
462,750
-------------
MOTION PICTURES - 0.10%
1,550 King World Productions, Inc.*.......................................... 60,256
2,100 Knight-Ridder, Inc..................................................... 131,250
-------------
191,506
-------------
HOME FURNISHINGS - 0.09%
6,800 Newell Co.............................................................. 175,950
-------------
TEXTILES - 0.09%
3,200 Fruit of The Loom, Inc., Class A*...................................... 78,000
1,700 Russell Corp........................................................... 47,175
900 Springs Industries, Inc., Class A...................................... 37,238
-------------
162,413
-------------
CONGLOMERATES - 0.08%
1,700 Johnson Controls, Inc.................................................. 116,875
2,100 Ogden Corp............................................................. 44,888
-------------
161,763
-------------
ADVERTISING - 0.07%
3,300 Interpublic Group Cos., Inc............................................ 143,138
-------------
RECREATIONAL EQUIPMENT - 0.03%
2,000 Fleetwood Enterprises, Inc............................................. 51,500
-------------
TOTAL COMMON STOCKS.................................................... 183,858,961
(Cost $137,629,080) -------------
</TABLE>
See Notes to Financial Statements.
44
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent PORTFOLIO OF INVESTMENTS (CONTINUED)
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
VALUE
PAR VALUE (NOTE 2)
--------- --------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS - 0.23%
$ 445,000 US Treasury Bill/(1)/
5.43%, 06/13/1996...................................................... $ 435,028
-------------
TOTAL U.S. GOVERNMENT OBLIGATIONS...................................... 435,028
(Cost $435,028) -------------
COMMERCIAL PAPER - 3.74%
7,125,296 General Motors Acceptance Corp.
6.05%, 01/02/1996...................................................... 7,125,296
-------------
TOTAL COMMERCIAL PAPER................................................. 7,125,296
(Cost $7,125,296) -------------
TOTAL INVESTMENTS - 100.49%............................................................ 191,419,285
(Cost $145,189,404)** -------------
NET OTHER ASSETS AND LIABILITIES -(0.49)%.............................................. (930,696)
-------------
TOTAL NET ASSETS - 100.00%............................................................. $ 190,488,589
=============
</TABLE>
- ----------------------------------------
* Non-income producing security.
** Aggregate cost for Federal income tax purposes is $146,028,416
ADR American Depository Receipt.
(1) Security has been deposited as initial margin on open future contracts.
At December 31, 1995, the Portfolio's open future contracts were as follows:
<TABLE>
<CAPTION>
# of Opening Current Market
Contracts Contract Type Position Value
- --------- ------------- ----------- -----------
<S> <C> <C> <C>
20 March 1996
S & P 500 $ 6,227,825 $ 6,184,500
</TABLE>
See Notes to Financial Statements.
45
<PAGE>
- ------------
The Kent STATEMENTS OF ASSETS AND LIABILITIES
Funds DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
GROWTH SMALL
AND COMPANY INTERNATIONAL INDEX
INCOME GROWTH GROWTH EQUITY
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost................................ $ 354,037,056 $ 417,282,880 $ 248,173,149 $ 145,189,404
Net unrealized appreciation (depreciation)......... 63,282,880 52,605,209 50,526,166 46,229,881
-------------- -------------- -------------- --------------
Total investments at value....................... 417,319,936 469,888,089 298,699,315 191,419,285
Cash................................................. -- 483,409 -- --
Foreign currency at value (Cost $8,903).............. -- -- 8,990 --
Receivable for investments sold...................... -- 335,981 -- --
Receivable for Trust shares sold..................... 53,050 98,964 25,488 53,631
Interest and dividend receivables.................... 990,246 319,318 480,627 364,623
Dividend reclaim receivable.......................... -- -- 231,368 --
Receivable on daily variation margin................. -- 7,000 -- 7,000
-------------- -------------- -------------- --------------
Total Assets..................................... 418,363,232 471,132,761 299,445,788 191,844,539
-------------- -------------- -------------- --------------
LIABILITIES:
Payable for investments purchased.................... 3,816,650 8,717,099 1,968,025 60,075
Payable for Trust shares repurchased................. 1,978,645 1,285,503 896,579 1,217,581
Payable for foreign currency contracts............... -- -- 1,859 --
Advisory fee payable (Note 3)........................ 32,109 35,620 24,302 6,297
Payable to administrator and
transfer agent (Note 3)............................ 2,256 40,079 34,828 32,633
Payable to custodian................................. 35,638 -- 2,361,314 10,269
Accrued expenses and other payables.................. 47,342 27,017 65,785 29,095
-------------- -------------- -------------- --------------
Total Liabilities................................ 5,912,640 10,105,318 5,352,692 1,355,950
-------------- -------------- -------------- --------------
NET ASSETS............................................. $ 412,450,592 $ 461,027,443 $ 294,093,096 $ 190,488,589
============== ============== ============== ==============
NET ASSETS CONSIST OF:
Paid-in-capital...................................... $ 334,342,303 $ 404,867,895 $ 244,279,049 $ 142,407,110
Undistributed (overdistributed) net
investment income.................................. 93,922 24,141 (506,545) 51,864
Accumulated net realized gain (loss) on
investments, foreign currency and
futures contracts sold............................. 14,731,487 3,575,323 (212,212) 1,843,059
Net unrealized appreciation (depreciation)
of investments, foreign currency and
futures contracts.................................. 63,282,880 52,560,084 50,532,804 46,186,556
-------------- -------------- -------------- --------------
TOTAL NET ASSETS....................................... $ 412,450,592 $ 461,027,443 $ 294,093,096 $ 190,488,589
============== ============== ============== ==============
INSTITUTIONAL SHARES:
Net Assets........................................... $ 401,371,168 $ 450,072,477 $ 286,544,897 $ 183,876,862
Shares Outstanding................................... 30,286,188 32,567,385 20,203,234 14,644,086
Net Asset Value, offering and redemption
price per share.................................... $ 13.25 $ 13.82 $ 14.18 $ 12.56
============== ============== ============== ==============
INVESTMENT SHARES:
Net Assets........................................... $ 11,079,424 $ 10,954,966 $ 7,548,199 $ 6,611,727
Shares Outstanding................................... 840,180 793,547 534,190 525,856
Net Asset Value, redemption
price per share...................................... $ 13.19 $ 13.81 $ 14.13 $ 12.57
============== ============== ============== ==============
Maximum offering price per share - Investment
Class (NAV/0.96)..................................... $ 13.74 $ 14.39 $ 14.72 $ 13.09
============== ============== ============== ==============
</TABLE>
See Notes to Financial Statements.
46
<PAGE>
- ------------
The Kent STATEMENTS OF OPERATIONS
Funds FOR THE YEAR ENDED DECEMBER 31, 1995
- ------------
<TABLE>
<CAPTION>
GROWTH SMALL
AND COMPANY INTERNATIONAL INDEX
INCOME GROWTH GROWTH EQUITY
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 2):
Dividends............................................ $ 12,667,924 $ 5,619,333 $ 5,363,772 $ 5,631,870
Interest............................................. 35,130 73,729 589,991 56,069
Less: Net foreign taxes withheld..................... -- -- (964,863) --
-------------- -------------- -------------- --------------
Total Investment Income............................ 12,703,054 5,693,062 4,988,900 5,687,939
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory fee (Note 3)..................... 2,427,434 2,210,891 1,483,705 634,175
Administration fee (Note 3).......................... 693,553 631,683 395,655 422,784
Custodian fee (Note 3)............................... 17,209 37,398 183,398 46,127
Fund accounting fee (Note 3)......................... 3,186 16,908 116,162 12,363
Legal fee (Note 3)................................... 12,370 14,516 15,358 7,892
Audit fee............................................ 8,480 12,301 17,659 11,523
Shareholder services (Notes 3 & 4)................... 45,669 90,959 52,820 29,788
Trustees' fees and expenses (Note 3)................. 3,194 3,194 3,194 3,194
Distribution Fee (Note 3)............................ 22,284 23,221 16,123 13,171
Printing expense (Note 4)............................ 15,695 15,476 13,085 11,560
Registration fees.................................... 2,884 3,584 15,479 2,884
Miscellaneous fees................................... 13,877 19,315 15,484 10,618
-------------- -------------- -------------- --------------
Total Expenses before reimbursement/waiver......... 3,265,835 3,079,446 2,328,122 1,206,079
Less reimbursement/waiver (Note 3)................. -- -- -- (17,562)
-------------- -------------- -------------- --------------
Total Expenses net of reimbursement/waiver......... 3,265,835 3,079,446 2,328,122 1,188,517
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME.................................. 9,437,219 2,613,616 2,660,778 4,499,422
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (NOTE 2):
Net realized gain (loss) on investments.............. 29,158,461 13,578,009 2,507,398 15,892,396
Net realized gain (loss) on futures contracts........ 86,350 1,119,425 -- 1,921,920
Net realized gain (loss) on foreign currency and
foreign currency contracts......................... -- -- 1,799,288 --
Net change in unrealized appreciation
(depreciation) of investments,
foreign currency, foreign currency contracts
and futures contracts.............................. 64,996,671 50,369,980 20,314,467 44,448,727
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS............................. 94,241,482 65,067,414 24,621,153 62,263,043
-------------- -------------- -------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS............................................. $ 103,678,701 $ 67,681,030 $ 27,281,931 $ 66,762,465
============== ============== ============== ==============
</TABLE>
See Notes to Financial Statements.
47
<PAGE>
- ------------
The Kent
Funds STATEMENTS OF CHANGES IN NET ASSETS
- ------------
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
--------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF YEAR.................................. $ 316,830,050 $ 185,471,375
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.......................................... 9,437,219 8,057,446
Net realized gain (loss) on investments, foreign currency and
futures contracts............................................ 29,244,811 5,680,608
Net change in unrealized appreciation
(depreciation) of investments, foreign currency
and futures contracts........................................ 64,996,671 (9,217,779)
-------------- --------------
Net increase (decrease) in net assets resulting
from operations.............................................. 103,678,701 4,520,275
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 2):
Net investment income.......................................... (9,343,297) (7,953,940)
In excess of net investment income............................. -- (103,506)
Net realized gains............................................. (15,809,193) (4,320,954)
-------------- --------------
Total Distributions.......................................... (25,152,490) (12,378,400)
-------------- --------------
SHARE TRANSACTIONS (NOTE 5):
INSTITUTIONAL SHARES:
Shares issued.................................................. 135,405,690 210,151,582
Reinvestment of distributions.................................. 10,602,239 5,235,449
Shares redeemed................................................ (130,005,699) (79,789,576)
-------------- --------------
Net Institutional Share transactions......................... 16,002,230 135,597,455
-------------- --------------
INVESTMENT SHARES:
Shares issued.................................................. 2,791,139 4,755,118
Reinvestment of distributions.................................. 632,130 299,345
Shares redeemed................................................ (2,331,168) (1,435,118)
-------------- --------------
Net Investment Share transactions............................ 1,092,101 3,619,345
-------------- --------------
Net increase (decrease) from share transactions.............. 17,094,331 139,216,800
-------------- --------------
Net increase (decrease) in net assets............................ 95,620,542 131,358,675
-------------- --------------
NET ASSETS AT END OF YEAR (INCLUDING LINE A)..................... $ 412,450,592 $ 316,830,050
============== ==============
(A) Accumulated undistributed (overdistributed) net
investment income (loss)..................................... $ 93,922 $ --
============== ==============
</TABLE>
See Notes to Financial Statements.
48
<PAGE>
<TABLE>
<CAPTION>
SMALL COMPANY GROWTH FUND INTERNATIONAL GROWTH FUND
------------------------------ -------------------------------
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------ -------------------------------
1995 1994 1995 1994
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AT BEGINNING OF YEAR.................................. $ 312,611,638 $ 257,746,199 $ 184,724,501 $ 160,918,410
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.......................................... 2,613,616 2,278,064 2,660,778 1,649,848
Net realized gain (loss) on investments, foreign currency and
futures contracts............................................ 14,697,434 18,158,096 4,306,686 8,055,122
Net change in unrealized appreciation
(depreciation) of investments, foreign currency
and futures contracts........................................ 50,369,980 (19,917,681) 20,314,467 887,086
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets resulting
from operations.............................................. 67,681,030 518,479 27,281,931 10,592,056
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 2):
Net investment income.......................................... (2,589,475) (2,128,568) (2,660,778) (1,025,625)
In excess of net investment income............................. -- (143,388) (2,305,833) (412,639)
Net realized gains............................................. (21,952,154) (9,877,695) (5,009,748) (5,621,157)
-------------- -------------- -------------- --------------
Total Distributions.......................................... (24,541,629) (12,149,651) (9,976,359) (7,059,421)
-------------- -------------- -------------- --------------
SHARE TRANSACTIONS (NOTE 5):
INSTITUTIONAL SHARES:
Shares issued.................................................. 214,950,302 141,191,403 151,546,595 90,181,555
Reinvestment of distributions.................................. 12,988,002 5,989,132 4,756,128 2,771,440
Shares redeemed................................................ (123,856,962) (84,126,307) (64,667,292) (76,094,359)
-------------- -------------- -------------- --------------
Net Institutional Share transactions......................... 104,081,342 63,054,228 91,635,431 16,858,636
-------------- -------------- -------------- --------------
INVESTMENT SHARES:
Shares issued.................................................. 3,064,021 4,739,061 2,020,811 4,261,021
Reinvestment of distributions.................................. 617,761 299,502 251,525 241,388
Shares redeemed................................................ (2,486,720) (1,596,180) (1,844,744) (1,087,589)
-------------- -------------- -------------- --------------
Net Investment Share transactions............................ 1,195,062 3,442,383 427,592 3,414,820
-------------- -------------- -------------- --------------
Net increase (decrease) from share transactions.............. 105,276,404 66,496,611 92,063,023 20,273,456
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets............................ 148,415,805 54,865,439 109,368,595 23,806,091
-------------- -------------- -------------- --------------
NET ASSETS AT END OF YEAR (INCLUDING LINE A)..................... $ 461,027,443 $ 312,611,638 $ 294,093,096 $ 184,724,501
============== ============== ============== ==============
(A) Accumulated undistributed (overdistributed) net
investment income (loss)..................................... $ 24,141 $ -- $ (506,545) $ --
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
INDEX EQUITY FUND
-------------------------------
YEAR ENDED DECEMBER 31,
-------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
NET ASSETS AT BEGINNING OF YEAR.................................. $ 250,286,380 $ 237,227,054
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS:
Net investment income.......................................... 4,499,422 6,994,396
Net realized gain (loss) on investments, foreign currency and
futures contracts............................................ 17,814,316 14,385,686
Net change in unrealized appreciation
(depreciation) of investments, foreign currency
and futures contracts........................................ 44,448,727 (15,054,153)
-------------- --------------
Net increase (decrease) in net assets resulting
from operations.............................................. 66,762,465 6,325,929
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM (NOTES 2):
Net investment income.......................................... (4,447,558) (7,080,166)
In excess of net investment income............................. -- --
Net realized gains............................................. (25,780,284) (4,650,644)
-------------- --------------
Total Distributions.......................................... (30,227,842) (11,730,810)
-------------- --------------
SHARE TRANSACTIONS (NOTE 5):
INSTITUTIONAL SHARES:
Shares issued.................................................. 56,866,010 209,938,963
Reinvestment of distributions.................................. 18,021,509 6,780,932
Shares redeemed................................................ (172,291,970) (199,370,268)
-------------- --------------
Net Institutional Share transactions......................... (97,404,451) 17,349,627
-------------- --------------
INVESTMENT SHARES:
Shares issued.................................................. 1,824,094 2,700,376
Reinvestment of distributions.................................. 755,434 174,697
Shares redeemed................................................ (1,507,491) (1,760,493)
-------------- --------------
Net Investment Share transactions............................ 1,072,037 1,114,580
-------------- --------------
Net increase (decrease) from share transactions.............. (96,332,414) 18,464,207
-------------- --------------
Net increase (decrease) in net assets............................ (59,797,791) 13,059,326
-------------- --------------
NET ASSETS AT END OF YEAR (INCLUDING LINE A)..................... $ 190,488,589 $ 250,286,380
============== ==============
(A) Accumulated undistributed (overdistributed) net
investment income (loss)..................................... $ 51,864 $ --
============== ==============
</TABLE>
See Notes to Financial Statements.
49
<PAGE>
- ------------
GROWTH AND INCOME FUND
The Kent FINANCIAL HIGHLIGHTS
Funds FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(1)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period........................... $ 10.50 $ 10.91 $ 10.31 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income...................................... 0.33 0.31 0.27 0.06
Net realized and unrealized gain (loss) on investments..... 3.28 (0.26) 0.95 0.31
--------- --------- --------- ---------
Total from Investment Operations:...................... 3.61 0.05 1.22 0.37
--------- --------- --------- ---------
Less Distributions from:
Net investment income...................................... (0.33) (0.31) (0.27) (0.06)
In excess of net investment income......................... -- *** (0.01) ***
Net realized gains......................................... (0.53) (0.15) (0.34) --
In excess of net realized gains............................ -- -- -- --
--------- --------- --------- ---------
Total Distributions.................................... (0.86) (0.46) (0.62) (0.06)
--------- --------- --------- ---------
Net increase (decrease) in net asset value..................... 2.75 (0.41) 0.60 0.31
--------- --------- --------- ---------
Net Asset Value, End of period................................. $ 13.25 $ 10.50 $ 10.91 $ 10.31
========= ========= ========= =========
Total Return for period indicated (A).......................... 34.91% 0.51% 11.98% 3.68%
Ratios/Supplemental Data:
Net Assets, End of period (000's).............................. $ 401,371 $ 308,825 $ 180,864 $ 76,449
Ratios to average net assets:
Net investment income...................................... 2.73% 3.04% 2.61% 3.51%*
Operating expenses......................................... 0.94% 0.98% 1.03% 0.19%**
Portfolio Turnover Rate........................................ 58% 28% 54% 0%
</TABLE>
- ----------------------------------------
* 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.
See Notes to Financial Statements.
50
<PAGE>
INVESTMENT SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(2)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period........................... $ 10.46 $ 10.87 $ 10.29 $ 10.23
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income...................................... 0.30 0.32 0.27 ***
Net realized and unrealized gain (loss) on investments..... 3.26 (0.27) 0.93 0.06
--------- --------- --------- ---------
Total from Investment Operations:...................... 3.56 0.05 1.20 0.06
--------- --------- --------- ---------
Less Distributions from:
Net investment income...................................... (0.30) (0.31) (0.23) --
In excess of net investment income......................... -- *** (0.05) --
Net realized gains......................................... (0.53) (0.15) (0.20) --
In excess of net realized gains............................ -- -- (0.14) --
--------- --------- --------- ---------
Total Distributions.................................... (0.83) (0.46) (0.62) --
--------- --------- --------- ---------
Net increase (decrease) in net asset value..................... 2.73 (0.41) 0.58 0.06
--------- --------- --------- ---------
Net Asset Value, End of period................................. $ 13.19 $ 10.46 $ 10.87 $ 10.29
========= ========= ========= =========
Total Return for period indicated (A).......................... 34.61% 0.50% 11.81% 0.59%
Ratios/Supplemental Data:
Net Assets, End of period (000's).............................. $ 11,079 $ 8,005 $ 4,607 $ 102
Ratios to average net assets:
Net investment income...................................... 2.48% 3.03% 2.43% (0.88)%*
Operating expenses......................................... 1.18% 0.98% 1.22% 0.33%**
Portfolio Turnover Rate........................................ 58% 28% 54% 0%
</TABLE>
51
<PAGE>
- ------------
SMALL COMPANY GROWTH FUND
The Kent FINANCIAL HIGHLIGHTS
Funds FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(1)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 11.99 $ 12.50 $ 10.85 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.10 0.10 0.08 0.02
Net realized and unrealized gain (loss) on investments and
futures contracts..................................... 2.64 (0.10) 1.76 0.86
--------- --------- --------- ---------
Total from Investment Operations:........................ 2.74 0.00 1.84 0.88
--------- --------- --------- ---------
Less Distributions from:
Net investment income........................................ (0.10) (0.09) (0.08) (0.02)
In excess of net investment income........................... -- (0.01) (0.01) (0.01)
Net realized gains........................................... (0.81) (0.41) (0.10) --
--------- --------- --------- ---------
Total Distributions...................................... (0.91) (0.51) (0.19) (0.03)
--------- --------- --------- ---------
Net increase (decrease) in net asset value....................... 1.83 (0.51) 1.65 0.85
--------- --------- --------- ---------
Net Asset Value, End of period................................... $ 13.82 $ 11.99 $ 12.50 $ 10.85
========= ========= ========= =========
Total Return for period indicated (A)............................ 23.75% (0.06)% 17.04% 8.75%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 450,072 $ 304,179 $ 252,401 $ 95,999
Ratios to average net assets:
Net investment income........................................ 0.83% 0.79% 0.74% 1.35%*
Operating expenses........................................... 0.97% 0.98% 1.06% 0.18%**
Portfolio Turnover Rate.......................................... 30% 20% 14% 1%
</TABLE>
- ----------------------------------------
* 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 4, 1992.
(A) Calculation does not include sales charge for the Investment Shares.
See Notes to Financial Statements.
52
<PAGE>
INVESTMENT SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(2)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 11.98 $ 12.49 $ 10.86 $ 10.65
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.07 0.10 0.08 ***
Net realized and unrealized gain (loss) on investments and
futures contracts..................................... 2.64 (0.11) 1.74 0.21
--------- --------- --------- ---------
Total from Investment Operations:........................ 2.71 (0.01) 1.82 0.21
--------- --------- --------- ---------
Less Distributions from:
Net investment income........................................ (0.07) (0.08) (0.06) --
In excess of net investment income........................... -- (0.01) (0.03) --
Net realized gains........................................... (0.81) (0.41) (0.10) --
--------- --------- --------- ---------
Total Distributions...................................... (0.88) (0.50) (0.19) --
--------- --------- --------- ---------
Net increase (decrease) in net asset value....................... 1.83 (0.51) 1.63 0.21
--------- --------- --------- ---------
Net Asset Value, End of period................................... $ 13.81 $ 11.98 $ 12.49 $ 10.86
========= ========= ========= =========
Total Return for period indicated (A)............................ 23.47% (0.08)% 16.84% 1.97%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 10,955 $ 8,433 $ 5,345 $ 84
Ratios to average net assets:
Net investment income........................................ 0.59% 0.79% 0.59% (1.50)%*
Operating expenses........................................... 1.20% 0.98% 1.25% 0.27%**
Portfolio Turnover Rate.......................................... 30% 20% 14% 1%
</TABLE>
53
<PAGE>
- ------------
INTERNATIONAL GROWTH FUND
The Kent FINANCIAL HIGHLIGHTS
Funds FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(1)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 13.06 $ 12.84 $ 10.01 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.13 0.12 0.09 ***
Net realized and unrealized gain (loss) on investments,
foreign currency and futures contracts............... 1.54 0.61 2.95 0.02
--------- --------- --------- ---------
Total from investment operations......................... 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 gains........................................... (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....................... 1.12 0.22 2.83 0.01
--------- --------- --------- ---------
Net Asset Value, End of period............................... $ 14.18 $ 13.06 $ 12.84 $ 10.01
========= ========= ========= =========
Total Return for period indicated (A)............................ 13.00% 5.73% 30.32% 0.20%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 286,545 $ 178,186 $ 157,716 $ 81,105
Ratios to average net assets:
Net investment income........................................ 1.35% 0.87% 0.86% (0.28)%*
Operating expenses........................................... 1.17% 1.22% 1.33% 0.14%**
Portfolio Turnover Rate.......................................... 6% 20% 5% 0%
</TABLE>
- ----------------------------------------
* Annualized
** Not Annualized
*** Amount is less than $0.005.
(1) The Institutional Class commenced operations on December 4, 1992.
(2) The Investment Class date of initial public investment was December 4, 1992.
(A) Calculation does not include sales charge for the Investment Shares.
See Notes to Financial Statements.
54
<PAGE>
INVESTMENT SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(2)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 13.00 $ 12.81 $ 10.03 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.14 0.14 0.13 ***
Net realized and unrealized gain (loss) on investments,
foreign currency and futures contracts............... 1.50 0.56 2.85 0.03
--------- --------- --------- ---------
Total from investment operations......................... 1.64 0.70 2.98 0.03
--------- --------- --------- ---------
Less Distributions from:
Net investment income........................................ (0.09) (0.07) (0.02) --
In excess of net investment income........................... (0.11) (0.03) (0.09) --
Net realized gains........................................... (0.31) (0.41) (0.05) --
In excess of net realized gains.............................. -- -- (0.04) --
--------- --------- --------- ---------
Total Distributions....................................... (0.51) (0.51) (0.20) --
--------- --------- --------- ---------
Net increase (decrease) in net asset value....................... 1.13 0.19 2.78 0.03
--------- --------- --------- ---------
Net Asset Value, End of period............................... $ 14.13 $ 13.00 $ 12.81 $ 10.03
========= ========= ========= =========
Total Return for period indicated (A)............................ 12.86% 5.51% 29.67% 0.30%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 7,548 $ 6,539 $ 3,202 $ 15
Ratios to average net assets:
Net investment income........................................ 1.11% 0.81% 0.32% (1.34)%*
Operating expenses........................................... 1.40% 1.25% 1.43% 0.20%**
Portfolio Turnover Rate.......................................... 6% 20% 5% 0%
</TABLE>
55
<PAGE>
- ------------
INDEX EQUITY FUND
The Kent FINANCIAL HIGHLIGHTS
Funds FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
- ------------
INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(1)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 10.68 $ 11.04 $ 10.41 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.26 0.25 0.23 0.05
Net realized and unrealized gain (loss) on investments and
futures contracts.................................... 3.44 (0.15) 0.71 0.41
--------- --------- --------- ---------
Total from investment operations......................... 3.70 0.10 0.94 0.46
--------- --------- --------- ---------
Less Distributions from:
Net investment income........................................ (0.25) (0.26) (0.23) (0.05)
In excess of net investment income........................... -- -- *** ***
Net realized gains........................................... (1.57) (0.20) (0.08) --
In excess of net realized gains.............................. -- -- -- --
--------- --------- --------- ---------
Total Distributions...................................... (1.82) (0.46) (0.31) (0.05)
--------- --------- --------- ---------
Net increase (decrease) in net asset value....................... 1.88 (0.36) 0.63 0.41
--------- --------- --------- ---------
Net Asset Value, End of period............................... $ 12.56 $ 10.68 $ 11.04 $ 10.41
========= ========= ========= =========
Total Return for period indicated (A)............................ 36.23% 0.86% 9.11% 4.55%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 183,877 $ 245,550 $ 233,451 $ 153,431
Ratios to average net assets:
Net investment income including reimbursement/waiver......... 2.14% 2.32% 2.18% 2.65%*
Net investment income excluding reimbursement/waiver......... 2.14% 2.32% 2.18% 2.65%*
Operating expenses including reimbursement/waiver............ 0.56% 0.58% 0.65% 0.13%**
Operating expenses excluding reimbursement/waiver............ 0.56% 0.58% 0.65% 0.13%**
Portfolio Turnover Rate.......................................... 3% 50% 1% 0%
</TABLE>
- ----------------------------------------
* 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.
See Notes to Financial Statements.
56
<PAGE>
INVESTMENT SHARES
<TABLE>
<CAPTION>
PERIOD ENDED DECEMBER 31,
--------------------------------------------------------
1995 1994 1993 1992/(1)/
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of period............................. $ 10.70 $ 11.07 $ 10.44 $ 10.28
--------- --------- --------- ---------
Income from Investment Operations:
Net investment income........................................ 0.23 0.26 0.22 ***
Net realized and unrealized gain (loss) on investments and
futures contracts.................................... 3.44 (0.17) 0.72 0.16
--------- --------- --------- ---------
Total from investment operations......................... 3.67 0.09 0.94 0.16
--------- --------- --------- ---------
Less Distributions from:
Net investment income........................................ (0.23) (0.26) (0.20) --
In excess of net investment income........................... -- -- (0.03) --
Net realized gains........................................... (1.57) (0.20) (0.06) --
In excess of net realized gains.............................. -- -- (0.02) --
--------- --------- --------- ---------
Total Distributions....................................... (1.80) (0.46) (0.31) --
--------- --------- --------- ---------
Net increase (decrease) in net asset value....................... 1.87 (0.37) 0.63 0.16
--------- --------- --------- ---------
Net Asset Value, End of period............................... $ 12.57 $ 10.70 $ 11.07 $ 10.44
========= ========= ========= =========
Total Return for period indicated (A)............................ 35.81% 0.75% 9.09% 1.56%
Ratios/Supplemental Data:
Net Assets, End of period (000's)................................ $ 6,612 $ 4,736 $ 3,776 $ 89
Ratios to average net assets:
Net investment income including reimbursement/waiver......... 1.86% 2.30% 2.04% 1.03%*
Net investment income excluding reimbursement/waiver......... 1.85% 2.30% 2.04% 1.03%*
Operating expenses including reimbursement/waiver............ 0.80% 0.60% 0.86% 0.12%**
Operating expenses excluding reimbursement/waiver............ 0.81% 0.60% 0.86% 0.12%**
Portfolio Turnover Rate.......................................... 3% 50% 1% 0%
</TABLE>
57
<PAGE>
- ------------
The Kent
Funds NOTES TO FINANCIAL STATEMENTS
- ------------
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 its 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 or 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
58
<PAGE>
- ------------
The Kent
Funds NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------
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 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
59
<PAGE>
- ------------
The Kent
Funds NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------
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"). 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.
The Administrator has voluntarily limited its fees of the Index Equity
Fund. The Administrator has waived for the Institutional Shares and Investment
Shares of the Index Equity Fund $16,990 and $572, respectively, for the year
ended December 31, 1995.
Prior to April 1, 1994, Keystone Custodian Funds, Inc. ("Keystone") and
Keystone Investor Resource Center, Inc. served as administrator and transfer
agent, respectively. Fee rates paid to Keystone and Keystone Investor Resource
Center, Inc. were the same as those paid to FDISG.
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. Prior to April 1, 1994, Fiduciary Investment Company, Inc.
acted as the distributor of the Trust's shares. Fee rates charged by the
Distributor are the same as those charged by Fiduciary Investment Company, Inc.
60
<PAGE>
- ------------
The Kent
Funds NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- ------------
One trustee and 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 shares of the affected
Portfolio or class are entitled to vote. Each class may bear class specific
expenses.
Class specific expenses, if any, are currently limited to expenses directly
attributable to the Investment Shares under the Plans, shareholder services 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 year ended
December 31, 1995 as follows:
<TABLE>
<CAPTION>
INSTITUTIONAL INVESTMENT
------------- ----------
<S> <C> <C>
Growth and Income $ 44,486 $ 1,183
Small Company Growth 88,240 2,719
International Growth 51,036 1,784
Index Equity 29,075 713
</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. Transactions in capital shares and
distributions to shareholders are summarized below for each Portfolio.
TRANSACTIONS IN CAPITAL SHARES:
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Shares issued.............................. 10,940,374 19,831,557
Reinvestment of distributions.............. 836,269 494,263
Shares redeemed............................ (10,901,212) (7,487,237)
------------ ------------
Net increase (decrease)............... 875,431 12,838,583
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Shares issued.............................. 231,715 449,587
Reinvestment of distributions.............. 49,928 28,393
Shares redeemed............................ (207,110) (136,391)
------------ ------------
Net increase (decrease)............... 74,533 341,589
============ ============
</TABLE>
61
<PAGE>
- -------------
The Kent NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Funds
- -------------
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Shares issued.............................. 15,959,355 11,384,921
Reinvestment of distributions.............. 1,016,738 495,927
Shares redeemed............................ (9,782,762) (6,702,133)
------------ ------------
Net increase (decrease)............... 7,193,331 5,178,715
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Shares issued.............................. 236,573 380,066
Reinvestment of distributions.............. 48,614 24,556
Shares redeemed............................ (195,767) (128,550)
------------ ------------
Net increase (decrease)............... 89,420 276,072
============ ============
</TABLE>
INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Shares issued.............................. 11,200,281 6,680,368
Reinvestment of distributions.............. 346,491 212,272
Shares redeemed............................ (4,991,387) (5,526,580)
------------ ------------
Net increase (decrease)............... 6,555,385 1,366,060
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Shares issued.............................. 153,600 315,366
Reinvestment of distributions.............. 18,673 18,559
Shares redeemed............................ (141,025) (80,972)
------------ ------------
Net increase (decrease)............... 31,248 252,953
============ ============
</TABLE>
INDEX EQUITY FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Shares issued.............................. 4,734,274 19,345,110
Reinvestment of distributions.............. 1,508,630 625,554
Shares redeemed............................ (14,594,583) (18,113,334)
------------ ------------
Net increase (decrease)............... (8,351,679) 1,857,330
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Shares issued.............................. 149,481 246,361
Reinvestment of distributions.............. 62,301 16,102
Shares redeemed............................ (128,627) (160,923)
------------ ------------
Net increase (decrease)............ 83,155 101,540
============ ============
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS:
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Net investment income...................... $ 9,117,562 $ 7,759,191
In excess of net investment income......... -- 100,972
Net realized gains......................... 15,389,908 4,212,718
------------ ------------
Total distributions................... $ 24,507,470 $ 12,072,881
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Net investment income...................... $ 225,735 $ 194,749
In excess of net investment income......... -- 2,534
Net realized gains......................... 419,285 108,236
------------ ------------
Total distributions................... $ 645,020 $ 305,519
============ ============
</TABLE>
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Net investment income...................... $ 2,536,986 $ 2,076,719
In excess of net investment income......... -- 139,895
Net realized gains......................... 21,377,049 9,626,086
------------ ------------
Total distributions................... $ 23,914,035 $ 11,842,700
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Net investment income...................... $ 52,489 $ 51,849
In excess of net investment income......... -- 3,493
Net realized gains......................... 575,105 251,609
------------ ------------
Total distributions................... $ 627,594 $ 306,951
============ ============
</TABLE>
62
<PAGE>
- -------------
The Kent NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Funds
- -------------
INTERNATIONAL GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Net investment income...................... $ 2,613,863 $ 988,907
In excess of net investment income......... 2,246,651 397,866
Net realized gains......................... 4,858,921 5,423,331
------------ ------------
Total distributions................... $ 9,719,435 $ 6,810,104
<CAPTION> ============ ============
INVESTMENT SHARES
<S> <C> <C>
Net investment income...................... $ 46,915 $ 36,718
In excess of net investment income......... 59,182 14,773
Net realized gains......................... 150,827 197,826
------------ ------------
Total distributions................... $ 256,924 $ 249,317
</TABLE> ============ ============
INDEX EQUITY FUND
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------
1995 1994
------------ ------------
INSTITUTIONAL SHARES
<S> <C> <C>
Net investment income...................... $ 4,347,671 $ 6,977,287
In excess of net investment income......... -- --
Net realized gains......................... 25,081,995 4,564,085
------------ ------------
Total distributions................ $ 29,429,666 $ 11,541,372
============ ============
<CAPTION>
INVESTMENT SHARES
<S> <C> <C>
Net investment income...................... $ 99,887 $ 102,879
In excess of net investment income......... -- --
Net realized gains......................... 698,289 86,559
------------ ------------
Total distributions................ $ 798,176 $ 189,438
============ ============
</TABLE>
6. PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the year ended December 31, 1995, were as
follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
-------- ------------- -------------
<S> <C> <C>
Growth and Income......................... $ 195,812,281 $ 194,337,984
Small Company Growth...................... 165,434,477 92,223,375
International Growth...................... 89,891,359 12,538,464
Index Equity.............................. 5,807,514 122,273,027
</TABLE>
At December 31, 1995 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:
<TABLE>
<CAPTION>
TAX BASIS
-------------------------------
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION
-------- -------------- --------------
<S> <C> <C>
Growth and Income......................... $ 68,386,950 $ (5,456,673)
Small Company Growth...................... 83,910,678 (31,379,408)
International Growth...................... 54,484,240 (4,146,916)
Index Equity.............................. 47,570,109 (2,179,240)
<CAPTION>
NET UNREALIZED
APPRECIATION
FUND (DEPRECIATION)
-------- --------------
<S> <C>
Growth and Income......................... $ 62,930,277
Small Company Growth...................... 52,531,270
International Growth...................... 50,337,324
Index Equity.............................. 45,390,869
</TABLE>
The accompanying table below details distributions from long term capital
gains for the following Portfolios for the year ended December 31, 1995:
<TABLE>
<CAPTION>
FUND AMOUNT
-------- -------------
<S> <C>
Growth and Income......................... $ 12,362,161
Small Company Growth...................... 19,146,278
International Growth...................... 4,976,155
Index Equity.............................. 24,007,680
</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.
63
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Trustees
The Kent Funds:
We have audited the accompanying statements of assets and liabilities (page 46)
of The Kent Growth and Income Fund (formerly The Kent ValuePlus Fund), The Kent
Small Company Growth Fund (formerly The Kent Expanded Market Equity Fund), The
Kent International Growth Fund (formerly The Kent International Equity Fund) and
The Kent Index Equity Fund, portfolios of The Kent Funds, including the
portfolios of investments (pages 13-45), as of December 31, 1995, the related
statements of operations for the year then ended (page 47), the statements of
changes in net assets for each of the years in the two-year period then ended
(pages 48-49), and the financial highlights for Institutional and Investment
shares for each of the years or periods in the four-year period then ended
(pages 50-57). These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kent Growth and Income Fund, The Kent Small Company Growth Fund, The Kent
International Growth Fund and The Kent Index Equity Fund as of December 31,
1995, the results of their operations for the year then ended, the changes in
their net assets for each of the years in the two-year period then ended, and
the financial highlights for each of the years or periods in the four-year
period then ended, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
February 9, 1996
<PAGE>
------- -----------------
T H E BULK RATE
------- US POSTAGE
K E N T F U N D S /(R)/ PAID
PERMIT NO. 54201
4400 COMPUTER DRIVE BOSTON, MA
WESTBORO, MA 01581 -----------------
K-160 (12/95)
