|
|
|
|
|
|
|
|
|
|
|
|
|
<PAGE>
Texas Commerce Bank National Association
AVESTA Trust
SEMI-ANNUAL REPORT
June 30, 1996
<TABLE>
<CAPTION>
Officers Supervisory Committee
- ------------------------------------------------------------ -------------------------------
<S> <C>
Henry J. Lartigue, Chief Executive Officer Henry J. Lartigue, Chairman
Cheryl M. Morgan, Treasurer Frank A. Liddell, Jr.
Marguerite Williams, Controller and Chief Accounting Officer George E. McDavid
Thomas J. Press, Compliance Officer and Secretary Kenneth L. Otto
Guy Barba, Portfolio Officer H. Michael Tyson
Denise Byington, Portfolio Officer
H. Mitchell Harper, Portfolio Officer
Deborah Williams-McGehee, Portfolio Officer
Sylvia Cruz, Assistant Compliance Officer
Joy H. Rose, Assistant Compliance Officer
Trustee
----------------------------------------
Texas Commerce Bank National Association
712 Main
Houston, Texas 77002
Legal Counsel Independent Accountants
- ------------------------------------------------------------ -------------------------------
Simpson Thacher & Bartlett Price Waterhouse, LLP
425 Lexington Avenue 1201 Louisiana, Suite 2900
New York, New York 10017 Houston, Texas 77002
AVESTA Trust
---------------------------------------
26-TCBE-45
P. O. Box 2558
Houston, Texas 77252-8045
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
</TABLE>
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- ----------
COMMON STOCKS-96.7%
Consumer Discretionary-18.5%
26,000 Bed Bath and Beyond, Inc. * $ 695,500
5,900 Dayton Hudson Corporation 608,437
13,500 Dillard Department Stores, Inc. 492,750
6,500 Disney (Walt) Company 408,688
44,900 Federated Department Stores, Inc. * 1,532,213
10,100 Gannett Company, Inc. 714,575
46,000 Gap, Inc. 1,477,750
10,700 Jones Apparel Group, Inc. * 525,638
37,300 Kroger Company * 1,473,350
6,800 McDonalds Corporation 317,900
33,700 Wal Mart Stores, Inc. 855,137
----------
Total Consumer Discretionary 9,101,938
----------
Consumer Staples-11.9%
43,600 Coca Cola Company 2,130,950
8,600 Gillette Company 536,425
15,800 Pepsico, Inc. 558,925
13,900 Phillip Morris Companies, Inc. 1,445,600
13,300 Procter & Gamble Company 1,205,313
----------
Total Consumer Staples 5,877,213
----------
Financial Services-5.0%
21,200 American Express Company 946,050
4,800 American International Group, Inc. 473,400
23,300 Salomon, Inc. 1,025,200
----------
Total Financial Services 2,444,650
----------
1
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- ----------
Healthcare-18.7%
27,100 Amgen, Inc. * $1,463,400
5,300 Bristol-Myers Squibb Company 477,000
4,500 Chiron Corporation * 441,000
21,200 Johnson & Johnson 1,049,400
8,200 Lilly (Eli) & Company 533,000
45,900 Liposome Company * 860,625
9,800 Medtronic, Inc. 548,800
20,400 Merck & Company, Inc. 1,318,350
12,900 Pfizer, Inc. 920,738
41,500 Teva Pharmaceutical Industries, Ltd. ADR 1,571,812
----------
Total Healthcare 9,184,125
----------
Integrated Oil-1.0%
5,800 Exxon Corporation 503,875
----------
Materials & Processing-7.2%
14,500 Aluminum Company of America 831,937
30,800 Barrick Gold Corporation 835,450
18,500 Inco, Ltd. 596,625
20,800 Phelps Dodge Corporation 1,297,400
----------
Total Materials & Processing 3,561,412
----------
Producer Durables-8.8%
12,500 Boeing Company 1,089,062
15,000 Fluor Corporation 980,625
25,900 General Electric Company 2,240,350
----------
Total Producer Durables 4,310,037
----------
2
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- -----------
Technology-19.1%
18,800 Analog Devices, Inc. * $ 479,400
20,600 cisco Systems, Inc. * 1,166,475
7,200 Computer Association International, Inc. 513,000
18,500 DSC Communications Corporation * 557,313
9,500 Hewlett Packard Company 946,437
12,700 Intel Corporation 932,656
17,100 Microsoft Corporation * 2,054,137
8,600 Motorola, Inc. 540,725
18,000 Newbridge Networks Corporation * 1,179,000
51,300 Novell, Inc. * 711,788
8,500 Novellus Systems, Inc. * 306,000
-----------
Total Technology 9,386,931
-----------
Utilities-6.5%
28,000 AT&T Corporation 1,736,000
23,500 NEXTEL Communications A * 447,969
18,800 WorldCom, Inc. * 1,041,050
-----------
Total Utilities 3,225,019
-----------
Total Common Stocks (Cost $37,698,114) 47,595,200
-----------
3
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS-3.4%
Repurchase Agreement-3.2%
$1,575,000 Lehman Government Securities, dated 06/28/96, 5.30%, due $ 1,575,000
07/01/96 in the amount of $1,575,000 (collateralized by $1,494,196
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value of
$1,652,257 at 06/30/96), repurchase proceeds $1,575,696.
Number
of Shares Short-Term Investment Funds-0.2%
----------
2,000 Fidelity Institutional Cash Portfolio-U.S. Government Portfolio 2,000
101,775 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 101,775
-----------
Total Short-Term Investment Funds 103,775
-----------
Total Short-Term Investments (Cost $1,678,775) 1,678,775
-----------
Total Investments (Cost $39,376,889)-100.1% 49,273,975
-----------
Liabilities in excess of other assets-(0.1%) (30,168)
-----------
NET ASSETS - 100% $49,243,807
===========
</TABLE>
- ----------------
* Non-income producing security.
The accompanying notes are an integral part of this statement.
4
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
EQUITY GROWTH FUND EQUITY GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
ASSETS NET INVESTMENT INCOME
<S> <C> <C> <C>
Investments, at value (cost $39,376,890) $49,273,975 Income
Cash 322 Dividends $ 261,461
Investment income receivable 52,026 Interest 31,733
----------- ----------
Total assets 49,326,323 Total income 293,194
----------- ----------
Expenses
LIABILITIES Management fee (Note 2) 241,468
Accounting fees 4,713
Management fee payable 82,516 Audit fees 5,531
----------- Directors' fees 1,208
Total liabilities 82,516 Insurance 1,703
----------- Legal fees 2,166
Registration fees 827
NET ASSETS $49,243,807 Shareholder reports 713
=========== Miscellaneous 1,000
Net assets were comprised of: ----------
Total expenses 259,329
Units of beneficial interest $29,495,310 Expense subsidy (Note 3) (17,861)
Accumulated net investment income 1,654,469 ----------
Accumulated net realized gain 8,196,942 Net expenses 241,468
Net unrealized appreciation 9,897,086
----------- Net investment income 33,865
Net assets at June 30, 1996 $49,243,807 ---------
===========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($49,243,807 / GAIN ON INVESTMENTS
1,926,776 units of beneficial
interest issued and outstanding; Net realized gain on investments 2,378,672
unlimited number of units authorized) $25.56 Unrealized appreciation in value
========== of investments during the year 2,246,533
----------
Net gain on investments 4,625,205
----------
Net Increase in Net Assets
Resulting from Operations $4,659,070
==========
</TABLE>
The accompanying notes are an integral part of this statement.
5
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
Increase/(Decrease) in Net Assets June 30, December 31,
1996 1995
---------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 51,726 $ 319,295
Net realized gain on investments 2,378,672 2,467,251
Unrealized appreciation in value
of investments during the year 2,246,533 6,401,728
----------- -----------
Net increase in net assets
resulting from operations 4,676,931 9,188,274
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 6,427,915 9,610,716
Cost of units redeemed (7,438,848) (9,904,550)
----------- -----------
Net decrease in net assets resulting
from unit transactions (1,010,933) (293,834)
----------- -----------
Total increase in net assets 3,665,998 8,894,440
Net assets, beginning of year 45,577,809 36,683,369
----------- -----------
Net assets, end of year $49,243,807 $45,577,809
=========== ===========
Net Change in Units Outstanding
Units issued 261,413 447,019
Units redeemed (299,236) (471,304)
----------- -----------
(37,823) (24,285)
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
6
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY GROWTH FUND
SELECTED PER UNIT DATA AND RATIOS *
(Unaudited)
(Selected data for a unit outstanding throughout each of the years indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, ------------------------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993 1992 1991
-------- ------ ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Investment income $ 0.15 $ 0.38 $ 0.38 $ 0.38 $ 0.36 $ 0.42
Expenses (0.13) (0.23) (0.21) (0.21) # (0.21) (0.21)
Expense subsidy 0.01 0.02 0.03 0.03 0.04 0.05
------ ------- ------- ------- ------ ------
Net investment income 0.03 0.17 0.20 0.20 0.19 0.26
Net realized and unrealized gain/(loss)
on investments 2.33 4.59 (0.37) 0.25 0.91 3.84
------ ------- ------- ------- ------ ------
Net increase/(decrease) in net asset value 2.36 4.76 (0.17) 0.45 1.10 4.10
Net asset value, beginning of year 23.20 18.44 18.61 18.16 17.06 12.96
------ ------- ------- ------- ------- ------
Net asset value, end of year $25.56 $ 23.20 $ 18.44 $ 18.61 $ 18.16 $17.06
====== ======= ======= ======= ======= ======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.00% 1.00% 1.00% 1.00%## 1.00% 1.00%
Net investment income 0.21% 0.78% 1.07% 1.12% 1.16% 1.73%
OTHER:
Average net assets (000 omitted) $48,577 $40,753 $30,806 $29,305 $20,343 $11,102
Portfolio turnover 17% 99% 116% 97% 99% 135%
Number of units outstanding at
end of year (000 omitted) 1,927 1,965 1,989 1,646 1,405 980
Total return 10.16% 25.78% (0.90%) 2.48% 6.43% 31.69%
</TABLE>
# Reflects voluntary fee waiver of $11,479 or $0.01 per unit. Without
voluntary fee waiver, expense per unit is $0.22.
## Does not reflect voluntary waiver of management fees of $11,479. Net of the
voluntary management fee waiver, the net expense ratio is 0.96% of average
net assets.
* Amounts adjusted to reflect 10:1 reverse split for the years ended 1991 -
1993.
Per unit amounts are calculated using average units outstanding for the
period.
The accompanying notes are an integral part of this statement.
7
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- ----------
COMMON STOCKS-96.2%
Auto & Transportation-6.3%
30,200 Ford Motor Company $ 977,725
19,900 General Motors Corporation 1,042,263
11,000 Norfolk Southern Corporation 932,250
10,200 Union Pacific Corporation 712,725
----------
Total Auto & Transportation 3,664,963
----------
Bank-2.1%
33,800 Suntrust Banks, Inc. 1,250,600
----------
Consumer Discretionary-2.5%
18,000 Penney (J.C.) Company, Inc. 945,000
11,000 Sears Roebuck & Company 534,875
----------
Total Consumer Discretionary 1,479,875
----------
Consumer Staples-4.6%
9,000 Anheuser-Busch Companies, Inc. 675,000
360 Earthgrains Company * 11,790
7,000 Philip Morris Companies, Inc. 728,000
7,500 Procter & Gamble Company 679,687
9,000 Ralston Purina Group 577,125
----------
Total Consumer Staples 2,671,602
----------
Financial Services-11.3%
31,500 American Express Company 1,405,687
15,987 American International Group, Inc. 1,576,718
10,800 First Union Corporation 657,450
15,000 Salomon, Inc. 660,000
17,800 Transamerica Corporation 1,441,800
19,350 Travelers Corporation 882,844
----------
Total Financial Services 6,624,499
----------
8
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- ----------
Healthcare-9.4%
15,000 Abbott Laboratories $ 652,500
13,600 American Home Products Corporation 817,700
12,100 Bristol-Myers Squibb Company 1,089,000
12,000 Johnson & Johnson 594,000
14,000 Lilly (Eli) & Company 910,000
10,200 Merck & Company, Inc. 659,175
10,700 Pfizer, Inc. 763,713
----------
Total Healthcare 5,486,088
----------
Integrated Oils-10.1%
12,000 Amoco Corporation 868,500
17,300 Chevron Corporation 1,020,700
14,700 Mobil Corporation 1,648,237
10,393 Royal Dutch Petroleum Company ADR 1,597,924
9,550 Texaco, Inc. 801,006
----------
Total Integrated Oils 5,936,367
----------
Materials & Processing-12.5%
24,800 Dover Corporation 1,143,900
9,500 Dow Chemical Company 722,000
14,000 dupont (E. I.) De Nemours & Company 1,107,750
26,650 Hanna (M.A.) Company 556,318
25,500 Hercules, Inc. 1,408,875
13,900 International Paper Company 512,563
57,500 Monsanto Company 1,868,750
----------
Total Materials & Processing 7,320,156
----------
Other Energy-2.4%
17,200 Enron Corporation 703,050
15,200 Sonat, Inc. 684,000
----------
Total Other Energy 1,387,050
----------
9
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
-------------- ----------
Producer Durables-11.7%
9,000 Fluor Corporation $ 588,375
13,900 General Electric Company 1,202,350
14,400 Lockheed Martin Corporation 1,209,600
22,600 Raytheon Company 1,166,725
30,800 Sundstrand Corporation 1,128,050
36,787 Thermo Electron Corporation * 1,531,259
------------
Total Producer Durables 6,826,359
------------
Technology-9.1%
6,000 Hewlett Packard Company 597,750
13,500 International Business Machines Corporation 1,336,500
19,200 Motorola, Inc. 1,207,200
17,000 Texas Instruments, Inc. 847,875
24,600 Xerox Corporation 1,316,100
-----------
Total Technology 5,305,425
-----------
Utilities-14.2%
10,000 Ameritech Corporation 593,750
19,100 AT&T Corporation 1,184,200
9,500 Bell Atlantic Corporation 605,625
30,500 BellSouth Corporation 1,292,438
41,600 DQE, Inc. 1,144,000
23,000 Duke Power Company 1,178,750
28,400 NIPSCO Industries, Inc. 1,143,100
23,100 SBC Communications, Inc. 1,137,675
-----------
Total Utilities 8,279,538
-----------
Total Common Stocks (Cost $41,004,676) 56,232,522
-----------
10
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
-------------- ------------
<C> <S> <C>
SHORT-TERM INVESTMENTS-3.9%
Repurchase Agreement-3.0%
$1,736,000 Lehman Government Securities, dated 06/28/96, 5.30%, due $ 1,736,000
07/01/96 in the amount of $1,736,777 (collateralized by $1,821,155
U.S. Treasury Note, 7.75%, due 03/01/00, with a market value of
$1,864,568 at 06/30/96), repurchase proceeds $1,736,777.
Number
of Shares Short-Term Investment Funds-0.9%
---------------
497,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 497,000
1,654 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 1,654
-----------
Total Short-Term Investment Funds 498,654
-----------
Total Short-Term Investments (Cost $2,234,654) 2,234,654
-----------
Total Investments (Cost $43,239,330)-100.1% 58,467,176
-----------
Liabilities in excess of other assets-(0.1%) (30,630)
-----------
NET ASSETS - 100% $58,436,546
===========
- -------------------
* Non-income producing security.
The accompanying notes are an integral part of this statement.
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
EQUITY INCOME FUND EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
June 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
ASSETS NET INVESTMENT INCOME
<S> <C> <C> <C>
Investments, at value (cost $43,239,330) $58,467,176 Income
Cash 617 Dividends $663,830
Investment income receivable 67,207 Interest 100,451
----------- ---------
Total assets 58,535,000 Total income 764,281
----------- ---------
Expenses
LIABILITIES
Management fee (Note 2) 288,715
Accounting fees 4,713
Management fee payable 98,454 Audit fees 5,531
---------- Directors' fees 1,208
Total liabilities 98,454 Insurance 1,760
---------- Legal fees 2,166
Registration fees (1,278)
NET ASSETS $58,436,546 Shareholder reports 713
=========== Miscellaneous 1,000
---------
Net assets were comprised of:
Total expenses 304,528
Units of beneficial interest $35,190,295 Expense Subsidy (Note 3) (15,813)
Accumulated net investment income 4,197,082 ---------
Accumulated net realized gain 3,821,323 Net expenses 288,715
Net unrealized appreciation 15,227,846
----------- Net investment income 459,753
Net assets at June 30, 1996 $58,436,546 ---------
===========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($58,436,546 / GAIN ON INVESTMENTS
2,269,427 units of beneficial
interest issued and outstanding; Net realized gain on investments 1,291,371
unlimited number of units authorized) $25.75 Unrealized appreciation in value
=========== of investments during the year 2,448,812
---------
Net gain on investments 3,740,183
----------
Net Increase in Net Assets
Resulting from Operations $4,199,936
==========
</TABLE>
The accompanying notes are an integral part of this statement.
12
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
Increase/(Decrease) in Net Assets June 30, December 31,
1996 1995
----------------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 475,566 $ 938,303
Net realized gain on investments 1,291,371 884,985
Unrealized appreciation in value
of investments during the year 2,448,812 11,054,690
-------------- ------------
Net increase in net assets
resulting from operations 4,215,749 12,877,978
-------------- ------------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 9,172,698 12,190,344
Cost of units redeemed (9,936,978) (9,379,681)
-------------- ------------
Net increase/(decrease) in net assets resulting
from unit transactions (764,280) 2,810,663
-------------- ------------
Total increase in net assets 3,451,469 15,688,641
Net assets, beginning of year 54,985,077 39,296,436
-------------- ------------
Net assets, end of year $58,436,546 $54,985,077
============== ============
Net Change in Units Outstanding
Units issued 370,245 552,331
Units redeemed (398,143) (450,395)
-------------- ------------
(27,898) 101,936
============== ============
</TABLE>
The accompanying notes are an integral part of this statement.
13
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
EQUITY INCOME FUND
SELECTED PER UNIT DATA AND RATIOS *
(Unaudited)
(Selected data for a unit outstanding throughout each of the years indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, -------------------------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993 1992 1991
----------- --------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income $ 0.32 $ 0.65 $ 0.57 $ 0.52 $ 0.55 $ 0.61
Expenses (0.13) (0.23) (0.20) (0.20) # (0.19) (0.20)
Expense subsidy 0.01 0.02 0.02 0.03 0.03 0.05
----------- --------- -------- -------- ------- -------
Net investment income 0.20 0.44 0.39 0.35 0.39 0.46
Net realized and unrealized gain/(loss)
on investments 1.61 5.59 (1.01) 1.68 0.50 2.35
----------- -------- ------- --------- ------ -------
Net increase/(decrease) in net asset value 1.81 6.03 (0.62) 2.03 0.89 2.81
Net asset value, beginning of year 23.93 17.90 18.52 16.49 15.60 12.79
----------- -------- ------- --------- ------ -------
Net asset value, end of year 25.74 $ 23.93 $ 17.90 $ 18.52 $ 16.49 $15.60
=========== ======== ======= ========= ====== =======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.00% 1.00% 1.00% 1.00% ## 1.00% 1.00%
Net investment income 1.61% 2.10% 2.13% 1.98% 2.52% 3.25%
OTHER:
Average net assets (000 omitted) $59,453 $44,651 $41,889 $31,308 $18,565 $10,298
Portfolio turnover 7% 11% 42% 40% 25% 39%
Number of units outstanding at
end of year (000 omitted) 2,269 2,297 2,195 2,246 1,389 903
Total return 7.58% 33.72% (3.37%) 12.34% 5.61% 22.10%
# Reflects voluntary fee waiver of $17,330 or $0.01 per unit. Without voluntary fee waiver, expense per unit is $0.21.
## Does not reflect voluntary waiver of management fees of $17,330. Net of the voluntary management fee waiver, the net expense
ratio is 0.95% of average net assets.
* Amounts adjusted to reflect 10:1 reverse split for the years ended 1991 - 1993.
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
</TABLE>
14
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
----------- -------
LONG-TERM INVESTMENTS-83.3%
Common Stocks-47.8%
Consumer Discretionary-9.1%
5,600 Bed Bath and Beyond, Inc. * $ 149,800
1,250 Dayton Hudson Corporation 128,906
2,900 Dillard Department Stores, Inc. 105,850
1,400 Disney (Walt) Company 88,025
9,500 Federated Department Stores, Inc. * 324,187
2,100 Gannett Company, Inc. 148,575
9,700 Gap, Inc. 311,613
2,300 Jones Apparel Group, Inc. * 112,987
7,900 Kroger Company * 312,050
1,400 McDonalds Corporation 65,450
7,200 Wal Mart Stores, Inc. 182,700
---------
Total Consumer Discretionary 1,930,143
---------
Consumer Staples-5.9%
9,200 Coca Cola Company 449,650
1,800 Gillette Company 112,275
3,400 Pepsico, Inc. 120,275
3,000 Phillip Morris Companies, Inc. 312,000
2,800 Procter & Gamble Company 253,750
---------
Total Consumer Staples 1,247,950
---------
Financial Services-2.4%
4,500 American Express Company 200,813
1,000 American International Group, Inc. 98,625
4,900 Salomon, Inc. 215,600
---------
Total Financial Services 515,038
---------
15
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
----------- -------
Healthcare-9.2%
5,800 Amgen, Inc. * $ 313,200
1,100 Bristol-Myers Squibb Company 99,000
975 Chiron Corporation * 95,550
1,700 Lilly (Eli) & Company 110,500
4,600 Johnson & Johnson 227,700
9,700 Liposome Company * 181,875
2,100 Medtronic, Inc. 117,600
4,300 Merck & Company, Inc. 277,888
2,700 Pfizer, Inc. 192,712
8,800 Teva Pharmaceutical Industries, Ltd. ADR 333,300
-----------
Total Healthcare 1,949,325
-----------
Integrated Oil-0.5%
1,200 Exxon Corporation 104,250
-----------
Materials & Processing-3.6%
3,100 Aluminum Company of America 177,862
6,500 Barrick Gold Corporation 176,313
3,900 Inco, Ltd. 125,775
4,400 Phelps Dodge Corporation 274,450
----------
Total Materials & Processing 754,400
----------
Producer Durables-4.3%
2,700 Boeing Company 235,238
3,200 Fluor Corporation 209,200
5,400 General Electric Company 467,100
----------
Total Producer Durables 911,538
----------
16
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
----------- -------
Technology-9.5%
4,100 Analog Devices, Inc. * $ 104,550
4,400 cisco Systems, Inc. * 249,150
1,550 Computer Association International, Inc 110,438
3,900 DSC Communications Corporation * 117,487
2,000 Hewlett Packard Company 199,250
2,700 Intel Corporation 198,281
3,700 Microsoft Corporation * 444,462
1,700 Motorola, Inc. 106,888
3,800 Newbridge Networks Corporation * 248,900
10,800 Novell, Inc. * 149,850
1,800 Novellus Systems, Inc. * 64,800
-----------
Total Technology 1,994,056
-----------
Utilities-3.3%
6,000 AT&T Corporation 372,000
4,900 NEXTEL Communications A * 93,406
4,000 WorldCom, Inc. * 221,500
-----------
Total Utilities 686,906
-----------
Total Common Stocks (Cost $8,066,500) 10,093,606
-----------
Principal
Amount Corporate Bonds-7.5%
------------
Auto & Transportation-1.9%
$360,000 Ford Motor Company, 8.88%, due 01/15/22 401,806
-----------
Bank-1.8%
400,000 BankAmerica Corporation, 6.85%,
due 03/01/03 394,536
-----------
17
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Principal
Amount Value
---------- -------
Financial & Other-3.8%
$360,000 Beneficial Corporation, 6.60%,
due 10/29/97 $ 361,886
437,636 Ford Credit Grantor Trust, 5.90%,
due 10/15/00 435,982
----------
Total Financial & Other 797,868
----------
Total Corporate Bonds (Cost $1,559,141) 1,594,210
----------
U.S. Government and Agency
Obligations-28.0%
U.S. Government Agency Obligations-4.3%
500,000 Federal Home Loan Mortgage Company, 8.35%,
due 10/06/04 510,985
400,000 Federal National Mortgage Association,
7.80%, due 06/10/02 405,012
----------
Total U.S. Government Agency Obligations 915,997
----------
U.S. Treasury Obligations-23.7%
2,075,000 U.S. Treasury Bond, 6.25%, due 08/15/23 1,879,819
400,000 U.S. Treasury Bond, 8.13%, due 05/15/21 450,625
1,230,000 U.S. Treasury Note, 5.88%, due 02/15/04 1,174,265
1,500,000 U.S. Treasury Note, 6.38%, due 03/31/01 1,492,968
----------
Total U.S. Treasury Obligations 4,997,677
----------
Total U.S. Government and Agency
Obligations (Cost $5,938,278) 5,913,674
----------
Total Long-Term Investments
(Cost $15,563,919) 17,601,490
----------
18
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Principal
Amount Value
------------ ------
SHORT-TERM INVESTMENTS-16.1%
Repurchase Agreement-4.2%
$887,000 Lehman Government Securities, dated $ 887,000
06/28/96, 5.30%, due 07/01/96 -----------
in the amount of $887,392
(collateralized by $930,509
U.S. Treasury Note, 7.75%, due
03/01/00, with a market value of
$952,691 at 06/30/96), repurchase
proceeds $887,392.
Number
of Shares Short-Term Investment Funds-1.3%
-----------
179,000 Fidelity Institutional Cash Portfolios- 179,000
U.S. Government Portfolio
96,279 Goldman Sachs-Institutional Liquid Assets-
Government Portfolio 96,279
-----------
Total Short-Term Investment Funds 275,279
-----------
Principal
Amount U.S. Government Obligation-10.6%
-----------
$2,250,000 U.S. Treasury Note, 4.38%, due 11/15/96 2,240,858
-----------
Total Short-Term Investments
(Cost $3,403,137) 3,403,137
-----------
Total Investments (Cost $18,967,056)-99.4% 21,004,627
-----------
Other assets in excess of liabilities-0.6% 129,624
-----------
NET ASSETS - 100% $21,134,251
===========
* Non-income producing security.
The accompanying notes are an integral part of this statement.
19
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
BALANCED FUND BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <S> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $18,967,056) $21,004,627 Income
Cash 431 Dividends $ 72,452
Investment income receivable 163,872 Interest 311,693
----------- ----------
Total assets 21,168,930 Total income 384,145
----------- ----------
Expenses
LIABILITIES Management fee (Note 2) 104,477
Accounting fees 4,713
Management fee payable 34,679 Audit fees 5,531
----------- Directors' fees 1,208
Total liabilities 34,679 Insurance 1,450
----------- Legal fees 2,166
Registration fees 59
NET ASSETS $21,134,251 Shareholder reports 713
=========== Miscellaneous 1,000
Net assets were comprised of: ----------
Total expenses 121,317
Units of beneficial interest $ 4,660,433 Expense subsidy (Note 3) (16,840)
Accumulated net investment income 6,485,816 ----------
Accumulated net realized gain 7,950,431 Net expenses 104,477
Net unrealized appreciation 2,037,571
----------- Net investment income 262,828
Net assets at June 30, 1996 $21,134,251 ----------
===========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($21,134,251 / GAIN/(LOSS) ON INVESTMENTS
957,259 units of beneficial
interest issued and outstanding; Net realized gain on investments 1,088,494
unlimited number of units authorized) $22.08 Unrealized depreciation in value
====== of investments during the year (569,174)
----------
Net gain on investments 519,320
----------
Net Increase in Net Assets
Resulting from Operations $ 782,148
==========
</TABLE>
The accompanying notes are an integral part of this statement.
20
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
1996 1995
---------------- -------------
<S> <C> <C>
Increase/(Decrease) in Net Assets
FROM OPERATIONS
Net investment income $ 262,828 $ 641,949
Net realized gain on investments 1,088,494 1,560,947
Unrealized appreciation/(depreciation) in value
of investments during the year (569,174) 2,414,091
----------- -----------
Net increase in net assets
resulting from operations 782,148 4,616,987
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 1,779,505 3,492,374
Cost of units redeemed (2,915,689) (9,439,693)
----------- -----------
Net decrease in net assets resulting
from unit transactions (1,136,184) (5,947,319)
----------- -----------
Total decrease in net assets (354,036) (1,330,332)
Net assets, beginning of year 21,471,447 22,801,779
----------- -----------
Net assets, end of year $21,117,411 $21,471,447
=========== ===========
Net Change in Units Outstanding
Units issued 81,710 179,016
Units redeemed (135,013) (496,947)
----------- -----------
(53,303) (317,931)
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
21
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
BALANCED FUND
SELECTED PER UNIT DATA AND RATIOS *
(Unaudited)
(Selected data for a unit outstanding throughout each of the years indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, -------------------------------------------------
1996 1995 1994 1993 1992 1991
----------- ---------- --------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Investment income $ 0.40 $ 0.76 $ 0.63 $ 0.64 $ 0.68 $ 0.68
Expenses (0.13) (0.23) (0.20) (0.19) (0.18) (0.18)
Expense subsidy 0.02 0.04 0.03 0.02 0.02 0.04
------- ------- ------- ------- ------- -------
Net investment income 0.29 0.57 0.46 0.47 0.52 0.54
Net realized and unrealized gain/(loss)
on investments 0.54 3.12 -0.86 0.52 0.32 2.52
------- ------- ------- ------- ------- -------
Net increase/(decrease) in net asset value 0.83 3.69 -0.40 0.99 0.84 3.06
Net asset value, beginning of year 21.25 17.56 17.56 16.57 15.73 12.67
------- ------- ------- ------- ------- -------
Net asset value, end of year $ 22.08 $ 21.25 $ 17.16 $ 17.56 $ 16.57 $ 15.73
======= ======= ======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Net investment income 2.68% 2.94% 2.78% 2.78% 3.33% 3.77%
OTHER:
Average net assets (000 omitted) $21,010 $21,843 $51,971 $51,971 $43,061 $22,446
Portfolio turnover 31% 98% 148% 148% 187% 213%
Number of units outstanding at
end of year (000 omitted) 970 1,011 2,123 2,123 3,084 1,942
Total return 3.87% 23.83% 2.25% 6.01% 5.32% 24.16%
</TABLE>
* Amounts adjusted to reflect 10:1 reverse split for the years ended 1991-1993.
Per unit amounts are calculated using average units outstanding for the
period. The accompanying notes are an integral part of this statement.
22
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
----------- -------
<C> <C>
LONG-TERM INVESTMENTS-80.2%
Corporate Bonds-10.6%
Auto & Transportation-2.4%
$1,140,000 Ford Motor Company, 8.88%, due 01/15/22 $1,272,386
----------
Bank-2.0%
1,100,000 BankAmerica Corporation, 6.85%, due 03/01/03 1,084,974
Financial Services-6.2%
1,140,000 Beneficial Corporation, 6.60%, due 10/29/97 1,145,973
2,188,179 Ford Credit Grantor Trust, 5.90%, due 10/15/00 2,179,908
----------
Total Financial Services 3,325,881
----------
Total Corporate Bonds (Cost $5,572,840) 5,683,241
----------
U.S. Government and Agency Obligations-69.6%
U.S. Government Agency Obligations-8.7%
2,550,000 Federal Home Loan Mortgage Company, 8.35%, due 10/06/04 2,606,026
2,000,000 Federal National Mortgage Association, 7.80%, due 06/10/02 2,025,060
----------
Total U.S. Government Agency Obligations (Cost $4,592,717) 4,631,086
U.S. Treasury Obligations-60.9%
5,800,000 U.S. Treasury Bond, 6.25%, due 08/15/23 5,254,434
6,000,000 U.S. Treasury Bond, 8.13%, due 05/15/21 6,759,371
5,300,000 U.S. Treasury Note, 5.88%, due 02/15/04 5,059,841
15,500,000 U.S. Treasury Note, 6.38%, due 03/31/01 15,427,334
----------
Total U.S. Treasury Obligations (Cost $32,934,453) 32,500,980
----------
Total U.S. Government and Agency Obligations
(Cost $37,527,170) 37,132,066
----------
Total Long-Term Investments (Cost $43,100,010) 42,815,307
----------
</TABLE>
23
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
---------- ------
<S> <C> <C>
SHORT-TERM INVESTMENTS-18.6%
Commercial Paper-4.4%
$2,376,000 American General, 5.50%, due 07/01/96 $2,376,000
----------
Repurchase Agreements-8.7%
2,233,000 Goldman Sachs and Company, dated 06/28/9, 5.25% due 2,233,000
07/01/96 in the amount of $ 2,233,000 (collateralized by $2,348,226
U.S. Treasury Note, 5.25% due 01/31/01, with a market value of
$2,293,387 at 06/30/96), repurchase proceeds $2,233,977.
2,387,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 2,387,000
07/01/96 in the amount of $2,387,000 (collateralized by $2,264,536
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value of
$2,504,088 at 06/30/96), repurchase proceeds $2,388,054.
----------
Total Repurchase Agreements 4,620,000
----------
Number
of Shares Short-Term Investment Funds-0.1%
----------
1,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 1,000
78,064 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 78,064
---------
Total Short-Term Investment Funds 79,064
---------
</TABLE>
24
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------- -----------
<S> <C> <C>
U.S. Government Obligations-5.4%
$1,000,000 U.S. Treasury Bill, 4.94%, due 07/11/96 $ 998,621
1,145,000 U.S. Treasury Bill, 5.07%, due 09/26/96 1,130,967
764,000 U.S. Treasury Bill, 5.10%, due 09/05/96 756,844
-----------
Total U.S. Treasury Obligations 2,886,432
-----------
Total Short-Term Investments (Cost $9,961,496) 9,961,496
-----------
Total Investments (Cost $53,061,506)-98.8% 52,776,803
-----------
Other assets in excess of liabilities-1.2% 621,023
-----------
NET ASSETS - 100% $53,397,826
===========
</TABLE>
The accompanying notes are an integral part of this statement.
25
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
INCOME FUND INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30,1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $53,061,506) $52,776,803 Income
Cash 43 Interest $1,694,676
Investment income receivable 686,952 ----------
----------- Total income 1,694,676
Total assets 53,463,798 ----------
----------- Expenses
LIABILITIES Management fee (Note 2) 269,534
Accounting fees 4,713
Management fee payable 65,972 Audit fees 5,531
----------- Directors' fees 1,208
Total liabilities 65,972 Insurance 1,831
----------- Legal fees 2,166
Registration fees (766)
NET ASSETS $53,397,826 Shareholder reports 713
=========== Miscellaneous 1,000
Net assets were comprised of: ----------
Total expenses 285,930
Units of beneficial interest $32,471,361 Expense subsidy (Note 3) (16,396)
Accumulated net investment income 19,348,812 Voluntary fee waiver (Note 3) (67,397)
Accumulated net realized gain 1,862,356 -----------
Net unrealized depreciation (284,703) Net expenses 202,137
-----------
Net assets at June 30, 1996 $53,397,826 Net investment income 1,408,746
=========== -----------
Unit value, offering price and redemp-
tion price per unit ($53,397,826/ NET REALIZED AND UNREALIZED
2,993,556 units of beneficial GAIN/(LOSS) ON INVESTMENTS
interest issued and outstanding;
unlimited number of units authorized) $ 17.84 Net realized gain on investments 161,239
=========== Unrealized depreciation in value
of investments during the year (2,815,524)
-----------
Net loss on investments (2,654,285)
-----------
Net Decrease in Net Assets
Resulting from Operations $(1,245,539)
===========
The accompanying notes are an integral part of this statement.
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
June 30, December 31,
1996 1995
---------------- ------------
Increase/(Decrease) in Net Assets
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 1,476,143 $ 3,153,511
Net realized gain on investments 161,239 1,136,606
Unrealized appreciation/(depreciation) in value
of investments during the year (2,815,524) 4,897,758
----------- -----------
Net increase/(decrease) in net assets
resulting from operations (1,178,142) 9,187,875
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 4,278,998 10,958,151
Cost of units redeemed (7,171,053) (14,929,216)
----------- -----------
Net decrease in net assets resulting
from unit transactions (2,892,055) (3,971,065)
----------- -----------
Total increase/(decrease) in net assets (4,070,197) 5,216,810
Net assets, beginning of year 57,451,627 52,234,817
----------- -----------
Net assets, end of year $53,381,430 $57,451,627
=========== ===========
Net Change in Units Outstanding
Units issued 239,834 179,016
Units redeemed (400,635) (496,947)
----------- -----------
(160,801) (317,931)
=========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INCOME FUND
SELECTED PER UNIT DATA AND RATIOS*
(Unaudited)
(Selected data for a unit outstanding throughout each of the years indicated)
Six months
ended Years ended December 31,
June 30, -----------------------------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993 1992 1991
---------- --------- ---------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income $ 0.56 $ 1.09 $ 0.97 $ 0.97 $ 1.02 $ 0.97
Expenses (0.08) (0.14)** (0.14)** (0.17) (0.16) (0.15)
Expense subsidy 0.01 0.02 0.01 0.02 0.02 0.02
------- ------- ------- ------- ------- -------
Net investment income 0.49 0.97 0.84 0.82 0.88 0.84
Net realized and unrealized
gain/(loss) on investments (0.86) 1.85 (1.56) 0.67 (0.16) 0.84
------- ------- ------- ------- ------- -------
Net increase/(decrease) in net
asset value (0.37) 2.82 (0.72) 1.49 0.72 1.68
Net asset value, beginning of
year 18.21 15.39 16.11 14.62 13.90 12.22
------- ------- ------- ------- ------- -------
Net asset value, end of year $ 17.84 $ 18.21 $ 15.39 $ 16.11 $ 14.62 $ 13.90
======= ======= ======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 0.75% 0.75%*** 0.75%*** 1.00% 1.00% 1.00%
Net investment income 5.54% 5.77% 5.43% 5.20% 6.21% 6.57%
OTHER:
Average net assets (000 omitted) $54,203 $54,637 $63,817 $70,750 $53,886 $29,199
Portfolio turnover 43% 93% 239% 156% 285% 304%
Number of units outstanding at
end of year (000 omitted) 2,994 3,154 3,395 4,724 4,413 3,012
Total return (2.06%) 18.38% (4.47%) 10.18% 5.13% 13.73%
* Amounts adjusted to reflect 10:1 reverse split for the years 1991 - 1993.
** Reflects management fee reduction of $136,617 or $0.04 per unit and $99,627
or $0.03 per unit for the years ended December 31, 1995 and 1994
respectively. Without management fee reduction, expense per unit is $0.18 and
$0.17 for the years ended December 31, 1995 and 1994 respectively.
*** Reflects management fee reductions of .25% or $136,617 and $99,627 for the
years ended December 31, 1995 and 1994 respectively. For the year
ended December 31, 1994 the actual net expense ratio for the year was .8% of
average net assets as the fee reduction went into effect on 5/2/94.
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
</TABLE>
28
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- ----------------- -----------
COMMON STOCKS-97.3%
Auto & Transportation-5.5%
5,000 AMR Corporation * $ 455,000
7,500 Chrysler Corporation 465,000
7,900 Ford Motor Company 255,762
5,000 General Motors Corporation 261,875
----------
Total Auto & Transportation 1,437,637
----------
Consumer Discretionary-12.9%
3,100 Dayton Hudson Corporation 319,687
3,100 Disney (Walt) Company 194,913
5,000 Eastman Kodak Company 388,750
10,000 Federated Department Stores, Inc. * 341,250
4,300 Home Depot, Inc. 232,200
11,875 Mattel, Inc. 339,922
4,150 McDonalds Corporation 194,013
9,500 Sears Roebuck & Company 461,937
5,250 Tambrands, Inc. 214,594
7,100 Time Warner, Inc. 278,675
17,500 Wal Mart Stores, Inc. 444,062
----------
Total Consumer Discretionary 3,410,003
----------
Consumer Staples-9.3%
10,000 Coca Cola Company 488,750
4,600 Gillette Company 286,925
8,200 Pepsico, Inc. 290,075
3,500 Philip Morris Companies, Inc. 364,000
4,200 Procter & Gamble Company 380,625
14,500 Sysco Corporation 496,625
900 Unilever, N.V. 130,612
----------
Total Consumer Staples 2,437,612
----------
29
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- ----------------- ----------
Financial Services-12.6%
8,500 American Express Company $ 379,312
6,000 American International Group, Inc. 591,750
18,000 Federal National Mortgage Association 603,000
6,000 MBIA, Inc. 467,250
8,000 Student Loan Marketing Association 592,000
15,000 Travelers Corporation 684,375
----------
Total Financial Services 3,317,687
----------
Healthcare-7.4%
4,100 Abbott Laboratories 178,350
3,600 American Home Products Corporation 216,450
2,700 Bristol-Myers Squibb Company 243,000
2,300 Columbia HCA/Healthcare Corporation 122,762
2,800 Lilly (Eli) & Company 182,000
6,000 Johnson & Johnson 297,000
6,800 Merck & Company, Inc. 439,450
3,900 Pfizer, Inc. 278,363
----------
Total Healthcare 1,957,375
----------
Integrated Oils-9.4%
3,000 Amoco Corporation 217,125
4,595 British Petroleum Company PLC 491,091
4,800 Chevron Corporation 283,200
6,000 Exxon Corporation 521,250
5,000 Mobil Corporation 560,625
2,700 Royal Dutch Petroleum Company ADR 415,125
----------
Total Integrated Oils 2,488,416
----------
30
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- ----------------- ----------
Materials & Processing-9.7%
3,100 Aluminum Company of America $ 177,862
9,500 Dover Corporation 438,188
5,500 Dow Chemical Company 418,000
5,000 dupont (E.I.) de Nemours & Company 395,625
5,600 Inco, Ltd. 180,600
6,600 International Paper Company 243,375
1,500 Kimberly Clark Corporation 115,875
5,750 Minnesota Mining & Manufacturing Company 396,750
2,900 Phelps Dodge Corporation 180,888
---------
Total Materials & Processing 2,547,163
---------
Other Energy-1.1%
3,500 Schlumberger, Ltd. 294,875
Producer Durables-9.6%
8,500 Allied Signal, Inc. 485,562
3,100 Boeing Company 270,088
5,000 Emerson Electric Company 451,875
3,900 Fluor Corporation 254,963
9,000 General Electric Company 778,500
4,700 General Motors Corporation 282,587
---------
Total Producer Durables 2,523,575
---------
Technology-8.5%
2,400 Applied Materials, Inc. * 73,200
3,400 cisco Systems, Inc. * 192,525
1,800 Computer Association International, Inc. 128,250
2,450 Hewlett Packard Company 244,081
4,500 Intel Corporation 330,469
2,750 International Business Machines Corporation 272,250
4,400 Microsoft Corporation * 528,550
2,400 Motorola, Inc. 150,900
6,000 Xerox Corporation 321,000
---------
Total Technology 2,241,225
---------
31
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- ----------------- -------------
Utilities-11.3%
8,450 AT&T Corporation $ 523,900
12,500 GTE Corporation 559,375
8,400 MCI Communications Corporation 215,250
12,500 NIPSCO Industries, Inc. 503,125
8,500 SBC Communications, Inc. 418,625
13,500 WorldCom, Inc. * 747,563
-----------
Total Utilities 2,967,838
-----------
Total Common Stocks (Cost $20,483,933) 25,623,406
-----------
SHORT-TERM INVESTMENTS-2.8%
<TABLE>
<CAPTION>
Principal
Amount
- --------------------
<S> <C> <C>
Repurchase Agreements-2.7%
$276,000 Goldman Sachs and Company, dated 06/28/96, 5.25%, due $ 276,000
07/01/96 in the amount of $276,000 (collateralized by $290,242
U.S. Treasury Note, 5.25%, due 01/31/01, with a market value of
$283,464 at 06/30/96), repurchase proceeds $276,121.
434,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 434,000
07/01/96 in the amount of $434,000 (collateralized by $411,734
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value of
$455,289 at 06/30/96), repurchase proceeds $434,192.
-----------
Total Repurchase Agreements 710,000
-----------
Number
of Shares
- -------------------
Short-Term Investment Fund-0.1%
14,804 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 14,804
-----------
Total Short-Term Investments (Cost $724,804) 724,804
-----------
Total Investments (Cost $21,208,737)-100.1% 26,348,210
-----------
Liabilities in excess of other assets-(0.1%) (1,201)
-----------
NET ASSETS - 100% $26,347,009
===========
</TABLE>
* Non-income producing.
The accompanying notes are an integral part of this statement.
32
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
CORE EQUITY FUND CORE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $21,208,737) $26,348,210 Income
Cash 63 Dividends $ 242,964
Investment income receivable 42,447 Interest 17,395
----------- -----------
Total assets 26,390,720 Total income 260,359
----------- -----------
LIABILITIES Expenses
Management fee (Note 2) 128,181
Management fee payable 43,711 Accounting fees 4,713
----------- Audit fees 5,531
Total liabilities 43,711 Directors' fees 1,208
----------- Insurance 1,526
Legal fees 2,166
NET ASSETS $26,347,009 Registration fees (56)
=========== Shareholder reports 713
Net assets were comprised of: Miscellaneous 977
-----------
Units of beneficial interest $19,124,249 Total expenses 144,959
Accumulated net investment income 798,877 Expense subsidy (Note 3) (16,778)
Accumulated net realized gain 1,284,410 -----------
Net unrealized appreciation 5,139,473
----------- Net expenses 128,181
Net assets at June 30, 1996 $26,347,009 Net investment income 115,400
=========== -----------
Unit value, offering price and redemp-
tion price per unit ($26,347,009 / NET REALIZED AND UNREALIZED
1,840,779 units of beneficial GAIN ON INVESTMENTS
interest issued and outstanding;
unlimited number of units authorized) $14.31 Net realized gain on securities 295,725
============ Unrealized appreciation in value
of investments during the year 2,013,152
----------
Net gain on investments 2,308,877
----------
Net Increase in Net Assets
Resulting from Operations $2,424,277
==========
</TABLE>
The accompanying notes are an integral part of this statement.
33
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
Increase/(Decrease) in Net Assets 1996 1995
----------------- -----------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 115,400 $ 321,856
Net realized gain on investments 295,725 1,676,560
Unrealized appreciation in value
of investments during the year 2,013,152 3,034,911
----------- -----------
Net increase in net assets
resulting from operations 2,424,277 5,033,327
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 3,503,195 4,888,390
Cost of units redeemed (3,964,375) (6,590,153)
----------- -----------
Net decrease in net assets resulting
from unit transactions (461,180) (1,701,763)
----------- -----------
Total increase in net assets 1,963,097 3,331,564
Net assets, beginning of year 24,367,134 21,035,570
----------- ----------
Net assets, end of year $26,330,231 $24,367,134
=========== ===========
Net Change in Units Outstanding
Units issued 255,408 412,444
Units redeemed (288,216) (569,249)
----------- -----------
(32,808) (156,805)
=========== ===========
</TABLE>
The accompanying notes are an integral part of this statement.
34
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
CORE EQUITY FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout each of the periods indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, ----------------------------------
1996 1995 1994 1993*
------- ------- ------- ------
<S> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Investment income $ 0.14 $ 0.29 $ 0.28 $ 0.21
Expenses (0.08) (0.14)# (0.13) (0.20)#
Expense subsidy 0.01 0.02 0.03 0.13
------- ------- ------- ------
Net investment income 0.07 0.17 0.18 0.14
Net realized and unrealized gain/(loss)
on investments 1.23 2.48 (0.62) 0.66
------- ------- -------- ------
Net increase/(decrease) in net asset value 1.30 2.65 (0.44) 0.80
Net asset value, beginning of period 13.01 10.36 10.80 10.00
------- ------- ------- -------
Net asset value, end of period $ 14.31 $ 13.01 $ 10.36 $ 10.80
======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.00% 1.00% 1.00% 1.00%##
Net investment income 1.03% 1.44% 1.68% 1.84%**
OTHER:
Average net assets (000 omitted) $25,771 $22,336 $16,948 $4,356
Portfolio turnover 27% 133% 129% 83%
Number of units outstanding at
end of period (000 omitted) 1,841 1,874 2,030 1,086
Total return 10.05% 25.53% (4.03%) 7.95%***
</TABLE>
# Reflects voluntary fee waiver of $6,949 or $0.01 per unit. Without voluntary
fee waiver, expense per unit is $0.21.
Per unit amounts are calculated using average units outstanding for the
period.
The accompanying notes are an integral part of this statement.
35
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
--------- -----------
COMMON STOCKS-91.0%
Auto & Transportation-2.7%
18,000 Titan Wheel International, Inc. $ 288,000
6,300 Werner Enterprises, Inc. 163,800
-----------
Total Auto & Transportation 451,800
-----------
Consumer Discretionary-17.3%
9,800 Career Horizons, Inc. * 343,000
4,200 Clear Channel Communications * 345,975
5,150 Corrections Corporation of America * 360,500
6,500 DAKA International, Inc. * 152,750
6,290 Evergreen Media Corporation * 268,898
6,900 Proffitt's, Inc. * 244,950
15,700 St. John Knits, Inc. 700,612
9,150 Trump Hotels & Casino Resorts, Inc. * 260,775
9,800 Waban, Inc. 233,975
-----------
Total Consumer Discretionary 2,911,435
-----------
Consumer Staple-0.7%
3,800 Richfood Holdings, Inc. 123,500
-----------
Financial Services-14.6%
3,900 Allied Group, Inc. 169,650
5,550 Capstead Mortgage Corporation 154,706
19,100 City National Corporation 300,825
8,000 Collective Bancorp, Inc. 189,000
9,400 Delphi Financial Group, Inc. * 253,800
4,600 Evans Withycombe Residential, Inc. 96,025
9,800 Integon Group, Inc. 197,225
7,600 Magna Group, Inc. 182,400
6,900 Olympic Financial, Ltd. * 158,700
11,700 Roosevelt Financial Group, Inc. 225,225
7,300 Vesta Insurance Group, Inc. 243,638
5,200 Weeks Corporation 135,200
6,700 WFS Financial * 150,750
-----------
Total Financial Services 2,457,144
-----------
36
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
--------- -----------
Healthcare-15.3%
5,000 ALPHARMA, Inc. $ 99,375
4,800 American Medical Response 169,200
19,350 Applied Bioscience International, Inc.* 203,175
17,650 Centocor, Inc.* 527,294
1,600 IDEXX Laboratories * 62,800
11,400 Immunex Corporation* 155,325
11,200 Liposome Company, Inc. * 210,000
6,100 Martek Biosciences Corporation * 178,425
4,200 Multicare Companies, Inc. 79,800
6,450 OccuSystems, Inc. * 241,069
14,550 Sofamor/Danek Group, Inc. * 403,762
9,650 Sybron International Corporation * 241,250
-----------
Total Healthcare 2,571,475
-----------
Integrated Oils-1.4%
8,500 Cabot Oil & Gas Corporation 147,688
3,600 Rutherford-Moran Oil Corporation 87,750
-----------
Total Integrated Oils 235,438
-----------
Materials & Processing-6.2%
4,600 Huntco, Inc. 85,100
8,200 Jacobs Engineering Group * 216,275
5,600 NCI Building Systems, Inc. * 189,000
15,600 Pegasus Gold 191,100
3,150 Potash Corporation of Saskatchewan, Inc. 208,687
4,300 Wolverine Tube, Inc. 150,500
-----------
Total Materials & Processing 1,040,662
-----------
Other Energy-9.0%
10,150 Barrett Resources Corporation * 301,963
7,000 Energy Ventures, Inc. * 227,500
13,900 Falcon Drilling, Inc. * 377,037
7,000 McDermott, J Ray, S.A. 175,000
9,300 Parker and Parsley Petroleum Company 258,075
3,400 Tosco Corporation 170,850
-----------
Total Other Energy 1,510,425
-----------
37
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
--------- -----------
Producer Durables-5.9%
9,800 Greenfield Industries, Inc. $ 323,400
8,900 Sanifill, Inc. * 438,325
7,700 USA Waste Services, Inc. * 228,112
-----------
Total Producer Durables 989,837
-----------
Technology-15.0%
5,200 BISYS Group, Inc. * 196,300
10,800 Black Box Corporation * 256,500
11,600 Comverse Technology, Inc. 353,800
7,150 Global DirectMail Corporation * 282,425
11,350 International Rectifier Corporation * 183,019
1,200 Kronos, Inc. 42,600
5,800 Madge Networks N.V. 84,100
5,900 Merix Corporation 118,000
9,800 National Computer Systems, Inc. 209,475
2,600 Novellus Systems, Inc. * 93,600
1,550 PairGain Technologies, Inc. * 96,100
3,000 PRI Automation, Inc. * 91,500
6,600 SDL, Inc. * 183,150
2,200 Sterling Software, Inc. * 169,400
14,300 S3, Inc. * 176,069
-----------
Total Technology 2,536,038
-----------
Utilities-2.9%
6,500 California Energy Company, Inc.* 165,750
2,800 Excel Communication 75,600
7,200 Tejas Gas Corporation * 250,200
-----------
Total Utilities 491,550
-----------
Total Common Stocks (Cost $11,408,322) 15,319,304
-----------
38
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
--------- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS-9.1%
Repurchase Agreement-3.4%
$581,000 Lehman Government Securities, dated 06/28/96, 5.30%, due $ 581,000
07/01/96 in the amount of $581,000 (collateralized by $551,192 -----------
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value
of $609,499 at 06/30/96), repurchase proceeds $581,257.
Number
of Shares Short-Term Investment Funds-4.2%
---------
683,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 683,000
24,981 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 24,981
-----------
Total Short-Term Investment Funds 707,981
-----------
Principal
Amount U.S. Government Obligation-1.5%
---------
$250,000 U.S. Treasury Bill, 4.93%, due 07/25/96 249,178
-----------
Total Short-Term Investments (Cost $1,538,159) 1,538,159
-----------
Total Investments (Cost $12,946,481)-100.1% 16,857,463
-----------
Liabilities in excess of other assets-(0.1)% (23,058)
-----------
NET ASSETS - 100% $16,834,405
===========
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of this statement.
39
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
SMALL CAPITALIZATION FUND SMALL CAPITALIZATION FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $12,946,481) $16,857,463 Income
Investment income receivable 7,534 Dividends $ 41,454
----------- Interest 44,312
Total assets 16,864,997 ----------
----------- Total income 85,766
LIABILITIES ----------
Expenses
Cash overdraft 2,687 Management fee (Note 2) 85,138
Management fee payable 27,905 Accounting fees 4,713
----------- Audit fees 5,531
Total liabilities 30,592 Directors' fees 1,208
----------- Insurance 1,315
NET ASSETS $16,834,405 Legal fees 2,166
=========== Registration fees 403
Net assets were comprised of: Shareholder reports 713
Miscellaneous 600
Units of beneficial interest $11,565,262 ----------
Accumulated net investment income 124,595 Total expenses 101,787
Accumulated net realized gain 1,233,566 Expense subsidy (Note 3) (16,649)
Net unrealized appreciation 3,910,982 Voluntary fee waiver (Note 3) (11,122)
----------- ----------
Net assets at June 30, 1996 $16,834,405 Net expenses 74,016
===========
Unit value, offering price and redemp- Net investment income (16,021)
tion price per unit ($16,834,405/ ----------
1,059,052 units of beneficial
interest issued and outstanding; NET REALIZED AND UNREALIZED
unlimited number of units authorized) $ 15.90 GAIN ON INVESTMENTS
===========
Net realized gain on investments 1,612,266
Unrealized appreciation in value
of investments during the year 855,179
----------
Net gain on investments 2,467,445
----------
Net Increase in Net Assets
Resulting from Operations $2,451,424
==========
The accompanying notes are an integral part of this statement.
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
June 30, December 31,
Increase in Net Assets 1996 1995
---------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ (4,899) $ 47,355
Net realized gain on investments 1,612,266 370,797
Unrealized appreciation in value
of investments during the year 855,179 2,480,282
----------- -----------
Net increase in net assets
resulting from operations 2,462,546 2,898,434
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 3,067,492 2,518,482
Cost of units redeemed (1,560,322) (1,835,378)
----------- -----------
Net increase in net assets resulting
from unit transactions 1,507,170 683,104
----------- -----------
Total increase in net assets 3,969,716 3,581,538
Net assets, beginning of year 12,848,040 9,266,502
----------- -----------
Net assets, end of year $16,817,756 $12,848,040
=========== ===========
Net Change in Units Outstanding
Units issued 206,822 215,639
Units redeemed (105,738) (163,732)
----------- -----------
101,084 51,907
=========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SMALL CAPITALIZATION FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout each of the periods indicated)
Six months Years ended
ended December 31,
June 30, ------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993***
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
Investment income $ 0.08 $ 0.17 $ 0.16 $ 0.09
Expenses (0.09) (0.16)** (0.15)** (0.17)#
Expense subsidy 0.02 0.04 0.05 0.10
------- ------- ------- -------
Net investment income 0.01 0.05 0.06 0.02
Net realized and unrealized gain/(loss)
on investments 2.48 3.13 (0.72) 0.87
------- ------- ------- -------
Net increase/(decrease) in net asset value 2.49 3.18 (0.66) 0.89
Net asset value, beginning of period 13.41 10.23 10.89 10.00
------- ------- ------- -------
Net asset value, end of period $ 15.90 $ 13.41 $ 10.23 $ 10.89
======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.00% 1.00%* 1.00%* 1.15%##
Net investment income 0.16% 0.46% 0.55% 0.28%(CARET)
OTHER:
Average net assets (000 omitted) 14,888 10,378 $ 9,678 $ 5,768
Portfolio turnover 36% 89% 120% 161%
Number of units outstanding at
end of period (000 omitted) 1,059 958 906 903
Total return 18.52% 31.14% 6.12% 8.94%****
(CARET) Annualized
# Reflects voluntary fee waiver of $14,349 or $0.02 per unit. Without voluntary fee waiver, expense per unit is $0.19.
## Does not reflect voluntary waiver of management fees of $14,349. Net of the voluntary management fee waiver, the net
expense ratio is 0.82% of average net assets. This figure is annualized.
* Reflects management fee reduction of .15% or $15,584 and $9,153 for the years ended December 31, 1995 and 1994
respectively. For the year ended December 31, 1994 the actual net expense ratio for the year was 1.06% of
average net assets as the fee reduction went into effect on 5/2/94.
** Reflects management fee reduction of $15,584 or $0.02 per unit and $9,153 or $0.01 per unit for the years ended
December 31, 1995 and 1994 respectively. Without management fee reduction, expense per unit is $0.17 and
$0.16 for the years ended December 31, 1995 and 1994 espectively.
*** Commencement of Operations April 1, 1993.
**** Not annualized.
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
</TABLE>
42
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------ -----------
<S> <C> <C>
INTERMEDIATE-TERM U.S. GOVERNMENT OBLIGATIONS-80.7%
U.S. Government Agency Obligation-9.9%
$2,819,769 Federal Home Loan Mortgage Corporation, 5.60%, due 09/15/00 $ 2,742,056
-----------
U.S. Government Obligations-70.8%
4,666,000 U.S. Treasury Note, 5.50%, due 11/15/98 4,593,094
4,500,000 U.S. Treasury Note, 5.63%, due 01/31/98 4,470,466
765,000 U.S. Treasury Note, 5.75%, due 08/15/03 727,945
4,666,000 U.S. Treasury Note, 6.13%, due 03/31/98 4,668,916
765,000 U.S. Treasury Note, 6.38%, due 08/15/02 757,828
500,000 U.S. Treasury Note, 6.50%, due 05/31/01 500,000
500,000 U.S. Treasury Note, 6.88%, due 05/15/06 505,468
2,500,000 U.S. Treasury Note, 7.75%, due 11/30/99 2,603,125
765,000 U.S. Treasury Note, 7.88%, due 08/15/01 810,182
-----------
Total U.S. Government Obligations 19,637,024
-----------
Total Intermediate-Term U.S. Government 22,379,080
-----------
Obligations (Cost $22,349,284)
SHORT-TERM INVESTMENTS-18.4%
Repurchase Agreement-1.0%
280,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 280,000
07/01/96 in the amount of $280,000 (collateralized by -----------
$293,734 U.S. Treasury Note, 7.75%, due 01/31/00 with
a market value of $300,737 at 06/30/96), repurchase
proceeds $280,124.
Number
of Shares Short-Term Investment Funds-0.5%
--------------
49,000 Fidelity Institutional Cash Portfolio-U.S. Government Portfolio 49,000
77,660 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 77,660
-----------
126,660
-----------
</TABLE>
43
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------ -----------
<S> <C> <C>
U.S. Government Obligations-16.9%
$30,000 U.S. Treasury Bill, 5.16%, due 01/09/97 $ 29,142
4,666,000 U.S. Treasury Note, 5.63%, due 06/30/97 4,657,251
-----------
Total U.S. Government Obligations 4,686,393
-----------
Total Short-Term Investments (Cost $5,093,053) 5,093,053
-----------
Total Investments (Cost $27,442,337)-99.1% 27,472,133
-----------
Other assets in excess of liabilities-0.9% 257,834
-----------
NET ASSETS - 100% $27,729,967
===========
</TABLE>
The accompanying notes are an integral part of this statement.
44
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SHORT-INTERMEDIATE TERM U.S. GOVERNMENT
SECURITIES FUND SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
ASSETS NET INVESTMENT INCOME
<S> <C> <C> <C>
Investments, at value (cost $27,453,252) $27,472,134 Income
Cash 914 Interest $844,194
Investment income receivable 292,824 ---------
----------- Total income 844,194
Total assets 27,765,872 ---------
=========== Expenses
LIABILITIES Management fee (Note 2) 107,809
Accounting fees 4,713
Management fee payable 35,905 Audit fees 5,531
----------- Directors' fees 1,208
Total liabilities 35,905 Insurance 1,506
----------- Legal fees 2,166
Registration fees 1,277
NET ASSETS $27,729,967 Shareholder reports 713
=========== Miscellaneous 1,000
---------
Net assets were comprised of: Total expenses 125,923
Expense subsidy (Note 3) (18,114)
---------
Units of beneficial interest $25,188,627
Accumulated net investment income 3,237,624 Net expenses 107,809
Accumulated net realized loss (715,166)
Net unrealized appreciation 18,882 Net investment income 718,271
----------- ---------
Net assets at June 30, 1996 $27,729,967 NET REALIZED AND UNREALIZED
=========== LOSS ON INVESTMENTS
Unit value, offering price and redemp-
tion price per unit ($27,729,967/ Net realized loss on investments (233,191)
2,450,874 units of beneficial Unrealized depreciation in value
interest issued and outstanding; of investments during the year (611,008)
unlimited number of units authorized) $11.31 ---------
============
Net loss on investments (844,199)
---------
Net Decrease in Net Assets
Resulting from Operations ($125,928)
=========
</TABLE>
The accompanying notes are integral part of this statement.
45
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT
SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
Increase/(Decrease) in Net Assets 1996 1995
----------------- ----------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 736,385 $ 1,310,352
Net realized gain/(loss) on investments (233,191) 172,381
Unrealized appreciation/(depreciation) in value
of investments during the year (611,008) 1,250,842
----------- ------------
Net increase/(decrease) in net assets
resulting from operations (107,814) 2,733,575
----------- ------------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 4,545,276 10,490,632
Cost of units redeemed (5,490,822) (7,433,318)
----------- ------------
Net increase/(decrease) in net assets resulting
from unit transactions (945,546) 3,057,314
----------- ------------
Total increase/(decrease) in net assets (1,053,360) 5,790,889
Net assets, beginning of year 28,783,327 22,992,438
----------- ------------
Net assets, end of year $27,729,967 $ 28,783,327
=========== ============
Net Change in Units Outstanding
Units issued 402,025 960,197
Units redeemed (486,776) (693,274)
----------- ------------
(84,751) 266,923
=========== ============
</TABLE>
The accompanying notes are integral part of this statement.
46
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
SHORT-INTERMEDIATE TERM U.S. GOVERNMENT
SECURITIES FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout each of the periods indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, -------------------------------
1996 1995 1994 1993*
---------- ------- ------- -------
<S> <C> <C> <C> <C>
SELECTED PER UNIT DATA:
Investment income $ 0.66 $ 0.66 $ 0.52 $ 0.33
Expenses (0.10) (0.10) (0.09) (0.11)#
Expense subsidy 0.02 0.02 0.02 0.07
------- ------- ------- -------
Net investment income 0.58 0.58 0.45 0.29
Net realized and unrealized gain/(loss)
on investments (0.62) (0.63) (0.55) (0.05)
------- ------- ------- -------
Net increase/(decrease) in net asset value (0.04) 1.21 (0.10) (0.24)
Net asset value, beginning of period 11.35 10.14 10.24 10.00
------- -------- ------- -------
Net asset value, end of period $ 11.31 $ 11.35 $ 10.14 $ 10.24
======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 0.75% 0.75% 0.75% 0.75% ##
Net investment income 5.12% 5.38% 4.41% 3.76% **
OTHER:
Average net assets (000 omitted) $28,907 $24,350 $21,504 $8,598
Portfolio turnover 132% 187% 268% 247%
Number of units outstanding at
end of period (000 omitted) 2,451 2,536 2,269 1,698
Total return (0.33%) 12.01% (1.05%) 2.43% ***
</TABLE>
# Reflects voluntary fee waiver of $9,789 or $0.02 per unit. Without voluntary
fee waiver, expense per unit is $0.13.
## Does not reflect voluntary waiver of management fees of $9,789. Net of the
voluntary management fee waiver, the net expense ratio is 0.60% of average
net assets. This figure is annualized.
* Commencement of Operations April 1, 1993.
** Annualized.
*** Not annualized.
Per unit amounts are calculated using average units outstanding for the
period.
The accompanying notes are integral part of this statement.
47
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- --------- ------
<S> <C> <C>
LONG-TERM U.S. GOVERNMENT OBLIGATIONS-90.4%
$2,225,000 U.S. Treasury Bond, 6.25%, due 08/15/23 $2,015,710
500,000 U.S. Treasury Note, 6.38%, due 03/31/01 497,655
----------
Total Long-Term U.S. Government Obligations (Cost $2,446,315) 2,513,365
----------
SHORT-TERM INVESTMENTS-7.5%
Repurchase Agreements-7.3%
80,000 Goldman Sachs and Company, dated 06/28/96, 5.25%, due 07/01/96 80,000
in the amount of $80,000 (collateralized by $84,128 U.S. Treasury
Note, 5.25%, due 01/31/01, with a market value of $82,163 at 06/30/96),
repurchase proceeds $80,035.
123,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 123,000
07/01/96 in the amount of $123,000 (collateralized by $116,689
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value
of $129,033 at 06/30/96), repurchase proceeds $123,054.
----------
Total Repurchase Agreements 203,000
----------
Number
of Shares Short-Term Investment Fund-0.2%
----------
6,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 6,000
----------
Total Short-Term Investments (Cost $209,000) 209,000
----------
Total Investments (Cost $2,655,315)-97.9% 2,722,365
----------
Other assets in excess of liabilities-2.1% 57,144
----------
NET ASSETS - 100% $2,779,509
==========
</TABLE>
The accompanying notes are an integral part of this statement.
48
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
U.S. GOVERNMENT SECURITIES FUND U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $2,655,315) $2,722,365 Income
Cash 718 Interest $ 90,846
Investment income receivable 59,638 ---------
---------- Total income 90,846
Total assets 2,782,721 ---------
----------
Expenses
Management fee (Note 2) 11,409
LIABILITIES Accounting fees 4,713
Audit fees 5,531
Management fee payable 3,212 Directors' fees 1,208
---------- Insurance 1,096
Total liabilities 3,212 Legal fees 2,166
---------- Registration fees 801
Shareholder reports 713
NET ASSETS $2,779,509 Miscellaneous 600
========== ---------
Net assets were comprised of: Total expenses 28,237
Expense subsidy (Note 3) (16,828)
Units of beneficial interest $2,441,425 Voluntary fee waiver (Note 3) (1,344)
Accumulated net investment income 487,850 ---------
Accumulated net realized loss (216,816) Net expenses 10,065
Net unrealized appreciation 67,050
----------
Net investment income 62,609
Net assets at June 30, 1996 $2,779,509 ---------
==========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($2,779,509/ GAIN/(LOSS) ON INVESTMENTS
229,664 units of beneficial
interest issued and outstanding; Net realized gain on investments 28,982
unlimited number of units authorized) $ 12.10 Unrealized depreciation in value
========== of investments during the year (311,466)
---------
Net loss on investments (282,484)
---------
Net Decrease in Net Assets
Resulting from Operations $(219,875)
=========
The accompanying notes are an integral part of this statement.
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
U.S. GOVERNMENT SECURITIES FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Increase/(Decrease) in Net Assets
Six months ended Year ended
June 30, December 31,
1996 1995
FROM OPERATIONS ---------------- ------------
<S> <C> <C>
Net investment income $ 80,781 $ 161,680
Net realized gain on investments 28,982 23,350
Unrealized appreciation/(depreciation) in value
of investments during the year (311,466) 494,639
---------- -----------
Net increase/(decrease) in net assets
resulting from operations (201,703) 679,669
---------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 503,795 1,036,585
Cost of units redeemed (399,872) (1,467,055)
---------- -----------
Net increase/(decrease) in net assets resulting
from unit transactions 103,923 (430,470)
---------- -----------
Total increase/(decrease) in net assets (97,780) 249,199
Net assets, beginning of year 2,877,289 2,628,090
---------- -----------
Net assets, end of year $2,779,509 $ 2,877,289
========== ===========
Net Change in Units Outstanding
Units issued 41,822 87,397
Units redeemed (33,358) (129,083)
---------- -----------
8,464 (41,686)
========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
50
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
U.S. GOVERNMENT SECURITIES FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout each of the periods indicated)
Six months ended Years ended December 31,
June 30, -------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993***
---------------- -------- -------- ---------
<S> <C> <C> <C> <C>
Investment income $ 0.41 $ 0.81 $ 0.70 $ 0.45
Expenses (0.12) (0.24)** (0.23)** (0.36)#
Expense subsidy 0.07 0.16 0.15 0.31
------ ------ ------ ------
Net investment income 0.36 0.73 0.62 0.40
Net realized and unrealized gain/(loss)
on investments (1.27) 2.28 (1.53) 0.51
------ ------ ------ ------
Net increase/(decrease) in net asset value (0.9) 13.01 (0.91) 0.91
Net asset value, beginning of period 13.01 10.00 10.91 10.00
------ ------ ------ ------
Net asset value, end of period $12.10 $13.01 $10.00 $10.91
====== ====== ====== ======
RATIO TO AVERAGE NET ASSETS:
Expenses 0.75% 0.75%* 0.75%* 0.85%##
Net investment income 6.02% 6.38% 6.23% 4.91%(CARET)
OTHER:
Average net assets (000 omitted) $2,699 $2,535 $2,810 $1,905
Portfolio turnover 11% 17% 174% 232%
Number of units outstanding at
end of period (000 omitted) 230 221 263 267
Total return (6.96%) 30.11% (8.39%) 9.12%****
(CARET) Annualized
# Reflects voluntary fee waiver of $3,040 or $0.02 per unit. Without voluntary waiver, expense per unit is $0.38.
## Does not reflect voluntary waiver of management fees of $3,040. Net of the voluntary management fee waiver, the net
expense ratio is 0.64% of average net assets. This figure is annualized.
* Reflects management fee reduction of .10% or $2,527 and $1,886 for the years ended December 31, 1995 and 1994
respectively. For the year ended December 31, 1994 the actual net expense ratio for the year was .80% of
average net assets as the fee reduction went into effect on 5/2/94.
** Reflects management fee reduction of $2,527 or $0.01 per unit and $1,886 or $0.01 per unit for the years ended
December 31, 1995 and 1994 respectively. Without management fee reduction, expense per unit is $0.25 and
$0.24 for the years ended December 31, 1995 and 1994 respectively.
*** Commencement of Operations April 1, 1993.
**** Not annualized.
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
</TABLE>
51
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INTERMEDIATE TERM BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
-------- -----
<S> <C> <C>
LONG-TERM INVESTMENTS-93.6%
Corporate Bonds-32.8%
Banks-9.2%
$150,000 BankAmerica Corporation, 6.85%, due 03/01/03 $ 147,951
200,000 First Union Corporation, 7.00%, due 03/15/06 193,750
200,000 Norwest Corporation, 6.20%, due 12/01/05 185,696
---------
Total Banks 527,397
---------
Financial & Other-21.2%
150,000 Associates Corporation of North America, 7.70%, due 03/01/02 155,125
200,000 Chubb Capital, 6.88%, due 02/01/03 198,368
179,033 Ford Credit Grantor Trust, 5.90%, due 10/15/00 178,356
99,065 General Motors Acceptance Corporation, 7.15%, due 03/15/00 100,164
150,000 Household Finance Company, 6.18%, due 06/30/98 149,220
150,000 International Lease Finance, 5.50%, due 01/15/99 146,223
150,000 U.S. Leasing International, 5.95%, due 10/15/03 139,435
150,000 WMX, 6.25%, due 04/01/99 148,859
---------
Total Financial & Other 1,215,750
---------
Financial Services-2.4%
150,000 Commercial Credit Corporation, 6.13%, due 12/01/05 138,173
---------
Total Corporate Bonds (Cost $1,908,706) 1,881,320
---------
U.S. Government and Agency Obligations-60.8%
U.S. Government Agency Obligation-1.7%
100,000 Federal Home Loan Bank, 6.05%, due 06/28/00 98,103
---------
</TABLE>
52
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INTERMEDIATE TERM BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- -------- --------
<S> <C> <C>
U.S. Treasury Obligations-59.1%
$650,000 U.S. Treasury Note, 6.13%, due 03/31/98 $ 650,406
130,000 U.S. Treasury Note, 6.38%, due 03/31/01 129,391
650,000 U.S. Treasury Note, 6.38%, due 08/15/02 643,906
435,000 U.S. Treasury Note, 6.88%, due 05/15/06 439,758
900,000 U.S. Treasury Note, 7.25%, due 08/15/04 931,781
560,000 U.S. Treasury Note, 7.75%, due 01/31/00 583,800
----------
Total U.S. Treasury Obligations 3,379,042
----------
Total U.S. Government and Agency Obligations (Cost $3,551,278 3,477,145
----------
Total Long-Term Investments (Cost $5,459,984) 5,358,465
----------
SHORT-TERM INVESTMENTS-7.1%
Repurchase Agreement-4.0%
229,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 229,000
07/01/96 in the amount of $229,000 (collateralized by $217,251 ----------
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value of
$240,233 at 06/30/96), repurchase proceeds $229,101.
Number
of Shares Short-Term Investment Funds-2.9%
---------
152,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 152,000
13,238 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 13,238
----------
Total Short-Term Investment Funds 165,238
----------
</TABLE>
53
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INTERMEDIATE TERM BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------ -----------
<S> <C> <C>
U.S. Government Obligation-0.2%
$10,000 U.S. Treasury Bill, 5.16%, due 01/09/97 # $9,721
----------
Total Short-Term Investments (Cost $403,959) 403,959
----------
Total Investments (Cost $5,863,943)-100.7% 5,762,424
----------
Liabilities in excess of other assets-(0.7%) (37,963)
----------
NET ASSETS-100% $5,724,461
==========
</TABLE>
# Security is held as collateral (pledged amount is $10,000) for futures
contracts and is restricted as to resale. The accompanying notes are an
integral part of this statement.
54
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
INTERMEDIATE TERM BOND FUND INTERMEDIATE TERM BOND FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $5,863,943) $5,762,424 Income
Cash 379 Interest $ 187,079
Investment income receivable 100,841 ----------
---------- Total income 187,079
Total assets 5,863,644 ----------
----------
Expenses
LIABILITIES Management fee (Note 2) 23,638
Accounting fees 4,713
Investments purchased payable 131,004 Audit fees 5,531
Management fee payable 8,179 Directors' fees 1,208
---------- Insurance 1,195
Total liabilities 139,183 Legal fees 5,441
---------- Registration fees 715
NET ASSETS $5,724,461 Shareholder reports 713
========== Miscellaneous 1,053
----------
Net assets were comprised of:
Total expenses 44,207
Units of beneficial interest $4,962,156 Expense subsidy (Note 3) (20,569)
Accumulated net investment income 591,273 ----------
Accumulated net realized gain 272,551 Net expenses 23,638
Net unrealized depreciation (101,519)
---------- Net investment income 163,441
----------
Net assets at June 30, 1996 $5,724,461
==========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($5,724,461/ LOSS ON INVESTMENTS
500,224 units of beneficial
interest issued and outstanding; Net realized loss on investments (74,092)
unlimited number of units authorized) $11.44 Unrealized depreciation in value
========== of investments during the year (222,981)
----------
Net loss on investments (297,073)
----------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ($133,632)
==========
The accompanying notes are an integral part of this statement.
</TABLE>
55
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INTERMEDIATE TERM BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
Increase/(Decrease) in Net Assets 1996 1995
---------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 163,441 $ 351,652
Net realized gain/(loss) on investments (74,092) 350,978
Unrealized appreciation/(depreciation) in
value of investments during the period (222,981) 196,223
----------- ------------
Net increase/(decrease) in net assets
resulting from operations (133,632) 898,853
----------- ------------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 2,810,276 2,335,347
Cost of units redeemed (1,982,864) (3,327,720)
----------- -----------
Net increase/(decrease) in net assets
resulting from unit transactions 827,412 (992,373)
----------- -----------
Total increase/(decrease) in net assets 693,780 (93,520)
Net assets, beginning of period 5,030,681 5,124,201
----------- -----------
Net assets, end of period $ 5,724,461 $ 5,030,681
=========== ===========
NET CHANGE IN UNITS OUTSTANDING
Units issued 243,843 212,880
Units redeemed (174,658) (294,670)
----------- -----------
69,185 (81,790)
=========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
56
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
INTERMEDIATE TERM BOND FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout the period indicated)
<TABLE>
<CAPTION>
Six months Years ended
ended December 31,
June 30, ------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994*
---------- ------------- -----------
<S> <C> <C> <C>
Investment income $ 0.34 $ 0.72 $ 0.17
Expenses (0.08) (0.16) (0.08)
Expense subsidy 0.04 0.08 0.06
------- -------- --------
Net investment income 0.30 0.64 0.15
Net realized and unrealized gain/(loss)
on investments (0.53) 1.04 (0.16)
------- -------- --------
Net increase/(decrease) in net asset value (0.23) 1.68 (0.01)
Net asset value, beginning of period 11.67 9.99 10.00
------- -------- --------
Net asset value, end of period $ 11.44 $ 11.67 $ 9.99
======= ======== ========
RATIO TO AVERAGE NET ASSETS:
Expenses 0.75% 0.75% 0.75% **
Net investment income 5.19% 5.89% 6.12% **
OTHER:
Average net assets (000 omitted) $ 6,338 $ 5,973 $ 5,046
Portfolio turnover 98% 198% 7%
Number of units outstanding at
end of period (000 omitted) 500 431 513
Total return (1.94%) 16.79% (0.32%) **
</TABLE>
* Commencement of Operations October 3, 1994.
** Annualized
Per unit amounts are calculated using average units outstanding for the
period.
The accompanying notes are an integral part of this statement.
57
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- ---------
LONG-TERM INVESTMENTS-65.4%
Common Stocks-20.6%
Auto & Transportation-1.1%
200 AMR Corporation * $ 18,200
200 Chrysler Corporation 12,400
400 Ford Motor Company 12,950
150 General Motors Corporation 7,856
--------
Total Auto & Transportation 51,406
--------
Consumer Discretionary-2.5%
150 Dayton Hudson Corporation 15,469
150 Disney (Walt) Company 9,431
200 Eastman Kodak Company 15,550
350 Federated Department Stores, Inc. * 11,944
200 Home Depot, Inc. 10,800
400 Mattel, Inc. 11,450
200 McDonalds Corporation 9,350
200 Tambrands, Inc. 8,175
315 Time Warner, Inc. 12,364
750 Wal Mart Stores, Inc. 19,031
--------
Total Consumer Discretionary 123,564
--------
Consumer Staples-2.1%
300 Coca Cola Company 14,662
200 Gillette Company 12,475
400 Pepsico, Inc. 14,150
150 Philip Morris Companies, Inc. 15,600
200 Procter & Gamble Company 18,125
550 Sysco Corporation 18,838
50 Unilever, N.V. 7,256
--------
Total Consumer Staples 101,106
--------
58
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- ---------
Financial Services-2.4%
250 American Express Company $ 11,156
200 American International Group, Inc. 19,725
700 Federal National Mortgage Association 23,450
300 MBIA, Inc. 23,362
200 Student Loan Marketing Association 14,800
475 Travelers Corporation 21,672
--------
Total Financial Services 114,165
--------
Healthcare-1.4%
200 Abbott Laboratories 8,700
100 American Home Products Corporation 6,012
100 Bristol-Myers Squibb Company 9,000
100 Columbia HCA/Healthcare Corporation 5,338
100 Lilly (Eli) & Company 6,500
300 Merck & Company, Inc. 19,388
200 Pfizer, Inc. 14,275
--------
Total Healthcare 69,213
--------
Integrated Oils-2.0%
100 Amoco Corporation 7,238
200 British Petroleum Company PLC 21,375
200 Chevron Corporation 11,800
200 Exxon Corporation 17,375
200 Mobil Corporation 22,425
100 Royal Dutch Petroleum Company ADR 15,375
--------
Total Integrated Oils 95,588
--------
59
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- --------
Materials & Processing-2.1%
150 Aluminum Company of America $ 8,606
300 Dover Corporation 13,837
200 Dow Chemical Company 15,200
200 dupont (E.I.) de Nemours & Company 15,825
250 Inco, Ltd. 8,062
300 International Paper Company 11,063
50 Kimberly Clark Corporation 3,863
300 Minnesota Mining & Manufacturing Company 20,700
100 Phelps Dodge Corporation 6,238
35 Schweitzer Mauduit International, Inc. * 984
--------
Total Materials & Processing 104,378
--------
Other Energy-0.2%
150 Schlumberger, Ltd. 12,638
--------
Producer Durables-2.2%
400 Allied Signal, Inc. 22,850
150 Boeing Company 13,069
200 Emerson Electric Company 18,075
200 Fluor Corporation 13,075
300 General Electric Company 25,950
200 General Motors Corporation 12,025
--------
Total Producer Durables 105,044
--------
Technology-2.1%
100 Applied Materials, Inc. * 3,050
100 cisco Systems, Inc. * 5,662
100 Computer Association International, Inc. 7,125
100 Hewlett Packard Company 9,962
200 Intel Corporation 14,688
100 International Business Machines Corporation 9,900
200 Microsoft Corporation * 24,025
100 Motorola, Inc. 6,287
375 Xerox Corporation 20,063
--------
Total Technology 100,762
--------
60
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
- --------- ---------
<C> <S> <C>
Utilities-2.5%
350 AT&T Corporation $ 21,700
450 GTE Corporation 20,138
400 MCI Communications Corporation 10,250
550 NIPSCO Industries, Inc. 22,137
400 SBC Communications, Inc. 19,700
450 WorldCom, Inc. * 24,919
----------
Total Utilities 118,844
----------
Total Common Stocks (Cost $840,839) 996,708
----------
Principal
Amount U.S. Government and Agency Obligations-44.8%
- ---------
U.S. Government Agency Obligation-3.0%
$150,000 Federal Home Loan Bank, 6.05%, due 06/28/00 147,155
----------
U.S. Government Obligations-41.8%
500,000 U.S. Treasury Note, 6.38%, due 03/31/01 497,656
700,000 U.S. Treasury Note, 6.38%, due 08/15/02 693,438
630,000 U.S. Treasury Note, 7.25%, due 08/15/04 652,246
170,000 U.S. Treasury Note, 9.25%, due 08/15/98 180,200
----------
Total U.S. Government Obligations 2,023,540
----------
Total U.S. Government and Agency Obligations (Cost $2,207,005) 2,170,695
----------
Total Long-Term Investments (Cost $3,047,844) 3,167,403
----------
</TABLE>
61
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------ -----------
<S> <C> <C>
SHORT-TERM INVESTMENTS-33.5%
Repurchase Agreements-4.6%
$ 4,000 Goldman Sachs and Company, dated 06/28/96, 5.25%, due $ 4,000
07/01/96 in the amount of $4,000 (collateralized by $4,206
U.S. Treasury Note, 5.25%, due 01/31/01 with a market value
of $4,108 at 06/30/96), repurchase proceeds $4,002.
217,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 217,000
07/01/96 in the amount of $217,000 (collateralized by $205,867
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value
of $227,644 at 06/30/96), repurchase proceeds $217,096.
--------
Total Repurchase Agreements 221,000
--------
Number
of Shares
- --------- Short-Term Investment Funds-5.3%
200,000 Fidelity Institutional Cash Portfolios - U.S. Government Portfolio 200,000
57,621 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 57,621
--------
Total Short-Term Investment Funds 257,621
--------
Principal
Amount U.S. Government Obligations-23.6%
- ---------
$100,000 U.S. Treasury Bill, 5.11%, due 09/19/96 98,864
450,000 U.S. Treasury Note, 4.38%, due 11/15/96 448,172
600,000 U.S. Treasury Note, 4.75%, due 02/15/97 596,437
----------
Total U.S. Government Obligations 1,143,473
----------
Total Short-Term Investments (Cost $1,622,094) 1,622,094
----------
Total Investments (Cost $4,669,938)-98.9% 4,789,497
----------
Other assets in excess of liabilities-1.1% 54,683
----------
NET ASSETS - 100% $4,844,180
==========
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of this statement.
62
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
RISK MANAGER-INCOME FUND RISK MANAGER-INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $4,669,938) $4,789,497 Income
Cash 789 Dividends $ 11,616
Investment income receivable 62,886 Interest 113,520
---------- ---------
Total assets 4,853,172 Total income 125,136
---------- ---------
LIABILITIES Expenses
Management fee (Note 2) 28,267
Management fee payable 8,991 Accounting fees 4,713
---------- Audit fees 5,531
Total liabilities 8,991 Directors' fees 1,208
---------- Insurance 1,230
Legal fees 5,441
NET ASSETS $4,844,180 Registration fees 702
========== Shareholder reports 713
NET ASSETS WERE COMPRISED OF: Miscellaneous 600
---------
Units of beneficial interest $3,169,720 Total expenses 48,405
Accumulated net investment income 687,493 Expense subsidy (Note 3) (20,138)
Accumulated net realized gain 867,408 ---------
Net unrealized appreciation 119,559 Net expenses 28,267
----------
Net assets at June 30, 1996 $4,844,180 Net investment income 76,731
========== ---------
Unit value, offering price and redemp-
tion price per unit ($4,844,180 / NET REALIZED AND UNREALIZED
413,995 units of beneficial GAIN/(LOSS) ON INVESTMENTS
interest issued and outstanding;
unlimited number of units authorized) $11.70 Net realized gain on investments 92,358
========== Unrealized depreciation in value
of investments during the year (103,644)
---------
Net loss on investments (11,286)
---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 65,445
=========
</TABLE>
The accompanying notes are an integral part of this statement.
63
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
Increase/(Decrease) in Net Assets 1996 1995
----------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 76,731 $ 479,083
Net realized gain on investments 92,358 808,803
Unrealized appreciation/(depreciation) in
value of investments during the period (103,644) 307,656
----------- -----------
Net increase in net assets
resulting from operations 65,445 1,595,542
----------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 330,950 13,404,622
Cost of units redeemed (941,336) (19,276,354)
----------- -----------
Net decrease in net assets resulting
from unit transactions (610,386) (5,871,732)
----------- -----------
Total decrease in net assets (544,941) (4,276,190)
Net assets, beginning of period 5,368,983 9,645,173
----------- -----------
Net assets, end of period $ 4,824,042 $ 5,368,983
=========== ===========
NET CHANGE IN UNITS OUTSTANDING
Units issued 28,675 1,270,206
Units redeemed (81,265) (1,770,961)
----------- -----------
(52,590) (500,755)
=========== ===========
</TABLE>
* Commencement of Operations October 3, 1994.
The accompanying notes are an integral part of this statement.
64
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-INCOME FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout the period indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, ------------------------
SELECTED PER UNIT DATA: 1996 1995 1994*
---------- --------- ---------
<S> <C> <C> <C>
Investment income $ 0.28 $ 0.60 $ 0.15
Expenses (0.11) (0.16) (0.06)
Expense subsidy 0.05 0.04 0.03
---------- -------- --------
Net investment income 0.22 0.48 0.12
Net realized and unrealized gain/(loss)
on investments (0.03) 1.06 (0.15)
---------- -------- --------
Net increase in net asset value 0.19 1.54 (0.03)
Net asset value, beginning of period 11.51 9.97 10.00
---------- -------- --------
Net asset value, end of period $ 11.70 $ 11.51 $ 9.97
========== ======== ========
RATIO TO AVERAGE NET ASSETS:
Expenses 1.10% 1.10% 1.10% **
Net investment income 3.77% 4.52% 4.77% **
OTHER:
Average net assets (000 omitted) $ 5,167 $10,590 $ 9,491
Portfolio turnover 44% 278% 15%
Number of units outstanding at
end of period (000 omitted) 414 467 967
Total return 1.69% 15.41% (1.22%) **
</TABLE>
* Commencement of Operations October 3, 1994.
** Annualized
Per unit amounts are calculated using average units outstanding for the
period.
The accompanying notes are an integral part of this statement.
65
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- --------
LONG-TERM INVESTMENTS-73.2%
Common Stocks-41.3%
Auto & Transportation-2.1%
500 AMR Corporation* $ 45,500
500 Chrysler Corporation 31,000
800 Ford Motor Company 25,900
450 General Motors Corporation 23,569
--------
Total Auto & Transportation 125,969
--------
Consumer Discretionary-4.7%
300 Dayton Hudson Corporation 30,938
300 Disney (Walt) Company 18,863
400 Eastman Kodak Company 31,100
1,000 Federated Department Stores, Inc. * 34,125
450 Home Depot, Inc. 24,300
1,187 Mattel, Inc. 33,978
400 McDonalds Corporation 18,700
500 Tambrands, Inc. 20,437
700 Time Warner, Inc. 27,475
1,500 Wal Mart Stores, Inc. 38,062
--------
Total Consumer Discretionary 277,978
--------
Consumer Staples-4.1%
500 Coca Cola Company 48,875
400 Gillette Company 24,950
400 Pepsico, Inc. 28,300
350 Philip Morris Companies, Inc. 36,400
400 Procter & Gamble Company 36,250
1,450 Sysco Corporation 49,662
100 Unilever, N.V. 14,513
--------
Total Consumer Staples 238,950
--------
66
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- --------
Financial Services-5.3%
800 American Express Company $ 35,700
500 American International Group, Inc. 49,313
1,700 Federal National Mortgage Association 56,950
600 MBIA, Inc. 46,725
750 Student Loan Marketing Association 55,500
1,500 Travelers Corporation 68,437
--------
Total Financial Services 312,625
--------
Healthcare-3.0%
400 Abbott Laboratories 17,400
400 American Home Products Corporation 24,050
300 Bristol-Myers Squibb Company 27,000
250 Columbia HCA/Healthcare Corporation 13,344
300 Lilly (Eli) & Company 19,500
700 Merck & Company, Inc. 45,237
400 Pfizer, Inc. 28,550
--------
Total Healthcare 175,081
--------
Integrated Oils-4.2%
300 Amoco Corporation 21,712
400 British Petroleum Company PLC 42,750
500 Chevron Corporation 29,500
600 Exxon Corporation 52,125
500 Mobil Corporation 56,063
300 Royal Dutch Petroleum Company ADR 46,125
--------
Total Integrated Oils 248,275
--------
67
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
- --------- --------
Materials & Processing-4.3%
350 Aluminum Company of America $ 20,081
900 Dover Corporation 41,512
500 Dow Chemical Company 38,000
500 dupont (E.I.) De Nemours & Company 39,562
600 Inco, Ltd. 19,350
700 International Paper Company 25,812
150 Kimberly Clark Corporation 11,588
600 Minnesota Mining & Manufacturing Company 41,400
300 Phelps Dodge Corporation 18,713
--------
Total Materials & Processing 256,018
--------
Other Energy-0.5%
350 Schlumberger, Ltd. 29,488
--------
Producer Durables-4.2%
850 Allied Signal, Inc. 48,556
300 Boeing Company 26,138
500 Emerson Electric Company 45,187
400 Fluor Corporation 26,150
850 General Electric Company 73,525
500 General Motors Corporation 30,063
--------
Total Producer Durables 249,619
--------
Technology-3.9%
250 Applied Materials, Inc. * 7,625
300 cisco Systems, Inc. * 16,988
200 Computer Association International, Inc. 14,250
225 Hewlett Packard Company 22,416
500 Intel Corporation 36,719
300 International Business Machines Corporation 29,700
450 Microsoft Corporation * 54,056
250 Motorola, Inc. 15,719
600 Xerox Corporation 32,100
--------
Total Technology 229,573
--------
68
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Number
of Shares Value
- --------- ----------
<C> <S> <C>
Utilities-5.0%
850 AT&T Corporation $ 52,700
1,200 GTE Corporation 53,700
800 MCI Communications Corporation 20,500
1,250 NIPSCO Industries, Inc. 50,312
800 SBC Communications, Inc. 39,400
1,300 WorldCom, Inc. * 71,988
-----------
Total Utilities 288,600
-----------
Total Common Stocks (Cost $2,158,450) 2,432,176
-----------
Principal
Amount U. S. Government and Agency Obligations-31.9%
- ---------
U. S. Government Agency Obligation-2.5%
$150,000 Federal Home Loan Bank Corporation, 6.05%, due 06/28/00 147,155
-----------
U.S. Government Obligations-29.4%
500,000 U.S. Treasury Note, 6.38%, due 03/31/01 497,656
800,000 U.S. Treasury Note, 6.38%, due 08/15/02 792,500
270,000 U.S. Treasury Note, 7.25%, due 08/15/04 279,534
150,000 U.S. Treasury Note, 8.50%, due 11/15/00 161,578
-----------
Total U.S. Government Obligations 1,731,268
-----------
Total U.S. Government and Agency Obligations (Cost $1,776,109) 1,878,423
-----------
Total Long-Term Investments (Cost $3,934,559) 4,310,599
-----------
</TABLE>
69
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
- --------- ---------
<C> <S> <C>
SHORT-TERM INVESTMENTS-26.2%
Repurchase Agreement-3.6%
$212,000 Lehman Government Securities, dated 06/28/96, 5.30%, due $ 212,000
07/01/96 in the amount of $212,000 (collateralized by $201,123 ----------
U.S. Treasury Note, 7.75%, due 01/31/00, with a market value
of $222,399 at 06/30/96), repurchase proceeds $212,094.
Number
of Shares Short-Term Investment Funds-4.0%
- ----------
208,000 Fidelity-Institutional Cash Portfolio-Government Portfolio 208,000
29,236 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 29,236
-----------
Total Short-Term Investment Funds 237,236
-----------
Principal
Amount U.S. Government Obligations-18.6%
- ----------
$ 100,000 U.S. Treasury Bill, 5.11%, due 09/19/96 98,864
1,000,000 U.S. Treasury Note, 4.38%, due 11/15/96 995,937
Total U.S. Government Obligations 1,094,801
-----------
Total Short-Term Investments (Cost $1,544,037) 1,544,037
-----------
Total Investments (Cost $5,478,596)-99.4% 5,854,636
-----------
Other assets in excess of liabilities-0.6% 35,565
-----------
NET ASSETS - 100% $ 5,890,201
-----------
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of this statement.
70
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
RISK MANAGER-BALANCED FUND RISK MANAGER-BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $5,478,596) $5,854,635 Income
Cash 465 Dividends $ 24,408
Investment income receivable 45,874 Interest 98,497
---------- --------
Total assets 5,900,974 Total income 122,905
---------- --------
LIABILITIES Expenses
Management fee (Note 2) 33,121
Accounting fees 4,713
Management fee payable 10,774 Audit fees 5,531
---------- Directors' fees 1,208
Total liabilities 10,774 Insurance 1,195
---------- Legal fees 5,441
Registration fees 680
NET ASSETS $5,890,200 Shareholder reports 713
========== Miscellaneous 600
--------
Net assets were comprised of:
Total expenses 53,202
Units of beneficial interest $4,367,256 Expense subsidy (Note 3) (20,081)
Accumulated net investment income 438,583 ---------
Accumulated net realized gain 708,322 Net expenses 33,121
Net unrealized appreciation 376,039
----------
Net investment income 89,784
Net assets at June 30, 1996 $5,890,200 --------
==========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($5,890,201/ GAIN ON INVESTMENTS
485,211 units of beneficial
interest issued and outstanding; Net realized gain on investments 74,605
unlimited number of units authorized) $ 12.14 Unrealized appreciation in value
========== of investments during the year 62,808
--------
Net gain on investments 137,413
--------
Net Increase in Net Assets
Resulting from Operations $227,197
========
The accompanying notes are an integral part of this statement.
</TABLE>
71
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
1996 1995*
----------------- ------------
<S> <C> <C>
Increase/(Decrease) in Net Assets
FROM OPERATIONS
Net investment income $ 89,784 $ 299,128
Net realized gain on investments 74,605 672,362
Unrealized appreciation in value
of investments during the period 62,808 356,487
----------- ------------
Net increase in net assets
resulting from operations 227,197 1,327,977
----------- ------------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 1,394,471 14,814,714
Cost of units redeemed (1,648,227) (15,323,567)
----------- ------------
Net decrease in net assets resulting
from unit transactions (253,756) (508,853)
----------- ------------
Total increase/(decrease) in net assets (26,559) 819,124
Net assets, beginning of period 5,916,760 5,097,636
----------- ------------
Net assets, end of period $ 5,890,201 $ 5,916,760
=========== ============
Net Change in Units Outstanding
Units issued 116,728 1,379,553
Units redeemed (137,975) (1,386,206)
----------- ------------
(21,247) (6,653)
=========== ============
</TABLE>
* Commencement of Operations October 3, 1994.
The accompanying notes are an integral part of this statement.
72
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-BALANCED FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout the period indicated)
<S> <C> <C> <C>
Six months
ended Years ended December 31,
June 30, ------------------------
SELECTED PER UNIT DATA: 1996 1995 1994*
------ ------ ------
Investment income $ 0.24 $ 0.50 $ 0.13
Expenses (0.11) (0.17) (0.09)
Expense subsidy 0.04 0.05 0.06
------ ------ ------
Net investment income 0.17 0.38 0.10
Net realized and unrealized gain/(loss)
on investments 0.29 1.36 (0.16)
------ ------ ------
Net increase/(decrease) in net asset value 0.46 1.74 (0.06)
Net asset value, beginning of period 11.68 9.94 10.00
------ ------ ------
Net asset value, end of period $12.14 $11.68 $ 9.94
====== ====== ======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.10% 1.10% 1.10% **
Net investment income 1.48% 3.54% 3.99% **
OTHER:
Average net assets (000 omitted) $6,054 $8,456 $5,051
Portfolio turnover 34% 337% 17%
Number of units outstanding at
end of period (000 omitted) 485 506 513
Total return 3.91% 17.59% (2.64%)**
* Commencement of Operations October 3, 1994.
** Annualized
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
</TABLE>
73
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
------------- --------
LONG-TERM INVESTMENTS-67.2%
Common Stocks-42.9%
Auto & Transportation-2.0%
250 AMR Corporation * $ 22,750
300 Chrysler Corporation 18,600
500 Ford Motor Company 16,187
300 General Motors Corporation 15,713
--------
Total Auto & Transportation 73,250
--------
Consumer Discretionary-5.5%
200 Dayton Hudson Corporation 20,625
200 Disney (Walt) Company 12,575
350 Eastman Kodak Company 27,213
750 Federated Department Stores, Inc. * 25,594
250 Home Depot, Inc. 13,500
250 McDonalds Corporation 11,687
550 Sears Roebuck & Company 26,744
350 Tambrands, Inc. 14,306
500 Time Warner, Inc. 19,625
1,000 Wal Mart Stores, Inc. 25,375
--------
Total Consumer Discretionary 197,244
--------
Consumer Staples-4.6%
700 Coca Cola Company 34,213
300 Gillette Company 18,713
600 Pepsico, Inc. 21,225
250 Philip Morris Companies, Inc. 26,000
250 Procter & Gamble Company 22,656
1,000 Sysco Corporation 34,250
50 Unilever, N.V. 7,256
--------
Total Consumer Staples 164,313
--------
74
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
------------- --------
Financial Services-5.1%
500 American Express Company $ 22,312
300 American International Group, Inc. 29,588
1,000 Federal National Mortgage Association 33,500
300 MBIA, Inc. 23,362
500 Student Loan Marketing Association 37,000
5 Transport Holdings * 230
750 Travelers Corporation 34,219
--------
Total Financial Services 180,211
--------
Healthcare-2.9%
250 Abbott Laboratories 10,875
200 American Home Products Corporation 12,025
150 Bristol-Myers Squibb Company 13,500
200 Columbia HCA/Healthcare Corporation 10,675
200 Lilly (Eli) & Company 13,000
450 Merck & Company, Inc. 29,081
200 Pfizer, Inc. 14,275
--------
Total Healthcare 103,431
--------
Integrated Oils-4.4%
200 Amoco Corporation 14,475
300 British Petroleum Company PLC 32,062
300 Chevron Corporation 17,700
350 Exxon Corporation 30,406
300 Mobil Corporation 33,638
200 Royal Dutch Petroleum Company ADR 30,750
--------
Total Integrated Oils 159,031
--------
75
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
------------- --------
Materials & Processing-4.9%
200 Aluminum Company of America $ 11,475
600 Dover Corporation 27,675
300 Dow Chemical Company 22,800
250 dupont (E.I.) De Nemours & Company 19,781
400 Inco, Ltd. 12,900
400 International Paper Company 14,750
300 Kimberly Clark Corporation 23,175
400 Minnesota Mining & Manufacturing Company 27,600
200 Phelps Dodge Corporation 12,475
30 Schweitzer Mauduit International, Inc. 844
--------
Total Materials & Processing 173,475
--------
Other Energy-0.5%
200 Schlumberger, Ltd. 16,850
--------
Producer Durables-4.2%
600 Allied Signal, Inc. 34,275
200 Boeing Company 17,425
400 Emerson Electric Company 36,150
200 Fluor Corporation 13,075
350 General Electric Company 30,275
300 General Motors Corporation 18,038
--------
Total Producer Durables 149,238
--------
Technology-4.2%
150 Applied Materials, Inc. * 4,575
200 cisco Systems, Inc. * 11,325
100 Computer Association International, Inc. 7,125
200 Hewlett Packard Company 19,925
300 Intel Corporation 22,031
150 International Business Machines Corporation 14,850
300 Microsoft Corporation * 36,038
150 Motorola, Inc. 9,431
450 Xerox Corporation 24,075
--------
Total Technology 149,375
--------
76
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Number
of Shares Value
------------- ----------
Utilities-4.6%
550 AT&T Corporation $ 34,100
550 GTE Corporation 24,612
500 MCI Communications Corporation 12,813
750 NIPSCO Industries, Inc. 30,187
500 SBC Communications, Inc. 24,625
650 WorldCom, Inc. * 35,994
----------
Total Utilities 162,331
----------
Total Common Stocks (Cost $1,294,742) 1,528,749
----------
Principal
Amount U.S. Government and Agency Obligations-24.3%
---------------
U.S. Government Agency Obligation-1.4%
$50,000 Federal Home Loan Bank 6.05%, due 06/28/00 49,052
----------
U.S. Government Obligations-22.9%
250,000 U.S. Treasury Note, 6.38%, due 03/31/01 248,828
100,000 U.S. Treasury Note, 6.38%, due 08/15/02 99,063
30,000 U.S. Treasury Note, 7.25%, due 08/15/04 31,059
50,000 U.S. Treasury Note, 7.50%, due 05/15/02 52,297
130,000 U.S. Treasury Note, 7.75%, due 01/31/00 135,525
245,000 U.S. Treasury Note, 7.88%, due 04/15/98 252,273
----------
Total U.S. Government Obligations 819,045
----------
Total U.S. Government and Agency Obligations
(Cost $865,963) 868,097
----------
Total Long-Term Investments (Cost $2,160,705) 2,396,846
----------
77
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
------------------ ----------
<C> <S> <C>
SHORT-TERM INVESTMENTS-32.4%
Repurchase Agreements-9.0%
$160,000 Goldman Sachs and Company, dated 06/28/96, 5.25%, due $ 160,000
07/01/96 in the amount of $160,000 (collateralized by $164,327
U.S. Treasury Note, 5.25%, due 01/31/01 with a market value
of $152,825 at 06/30/96), repurchase proceeds $160,070.
160,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 160,000
07/01/96 in the amount of $160,000 (collateralized by $167,848
U.S. Treasury Note, 7.75%, due 01/31/00 with a market value
of $171,850 at 06/30/96), repurchase proceeds $160,071.
----------
Total Repurchase Agreements 320,000
----------
Number
of Shares Short-Term Investment Funds-4.9%
-----------------
148,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 148,000
25,654 Goldman Sachs-Institutional Liquid Assets-Government Portfolio 25,654
----------
Total Short-Term Investment Funds 173,654
----------
Principal
Amount U.S. Government Obligations-18.5%
---------------
$250,000 U.S. Treasury Bill, 4.92%, due 07/11/96 249,658
265,000 U.S. Treasury Bill, 4.96%, due 08/01/96 263,871
100,000 U.S. Treasury Bill, 5.11%, due 09/19/96 98,864
50,000 U.S. Treasury Note, 4.75%, due 02/15/97 49,703
----------
Total U.S. Government Obligations 662,096
----------
Total Short-Term Investments (Cost $1,155,750) 1,155,750
----------
Total Investments (Cost $3,316,455)-99.6% 3,552,596
----------
Other assets in excess of liabilities-0.4% 13,742
----------
NET ASSETS - 100% $3,566,338
==========
</TABLE>
- --------------
* Non-income producing security.
The accompanying notes are an integral part of this statement.
78
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
RISK MANAGER-GROWTH FUND RISK MANAGER-GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30,1996
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost $3,316,455) $3,552,596
Cash 131 Income
Investment income receivable 19,647 Dividends $ 14,764
---------- Interest 41,621
--------
Total assets 3,572,374
---------- Total income 56,385
--------
LIABILITIES Expenses
Management fee (Note 2) 15,864
Management fee payable 6,036 Accounting fees 4,713
---------- Audit fees 5,531
Total liabilities 6,036 Directors' fees 1,208
---------- Insurance 1,167
Legal fees 5,441
NET ASSETS $3,566,337 Registration fees 820
========== Shareholder reports 713
Net assets were comprised of: Miscellaneous 600
--------
Units of beneficial interest $2,457,098 Total expenses 36,057
Accumulated net investment income 235,875 Expense subsidy (Note 3) (20,193)
Accumulated net realized gain 637,223 --------
Net unrealized appreciation 236,141 Net expenses 15,864
---------- Net investment income 20,328
Net assets at June 30, 1996 $3,566,337 -------
==========
Unit value, offering price and redemp- NET REALIZED AND UNREALIZED
tion price per unit ($3,566,337 / GAIN ON INVESTMENTS
280,144 units of beneficial
interest issued and outstanding; Net realized gain on investments 1,734
unlimited number of units authorized) $12.73 Unrealized appreciation in value
========== of investments during the year 104,980
--------
Net gain on investments 106,713
--------
Net Increase in Net Assets
Resulting from Operations $127,041
========
The accompanying notes are integral part of this statement.
</TABLE>
79
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
RISK MANAGER-GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
Increase/(Decrease) in Net Assets 1996 1995
---------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 20,328 $ 156,984
Net realized gain on investments 1,734 693,488
Unrealized appreciation in value
of investments during the period 104,980 162,228
---------- -----------
Net increase in net assets
resulting from operations 127,041 1,012,700
---------- -----------
FROM UNIT TRANSACTIONS
Net proceeds from units issued 1,134,374 2,678,624
Cost of units redeemed (105,948) (6,252,526)
---------- -----------
Net increase/(decrease) in net assets resulting
from unit transactions 1,028,426 (3,573,902)
---------- -----------
Total increase/(decrease) in net assets 1,155,467 (2,561,202)
Net assets, beginning of period 2,390,677 4,951,879
---------- -----------
Net assets, end of period $3,546,144 $ 2,390,677
========== ===========
Net Change in Units Outstanding
Units issued 91,625 246,984
Units redeemed (9,207) (549,521)
---------- -----------
82,418 (302,537)
========== ===========
</TABLE>
* Commencement of Operations October 3, 1994.
The accompanying notes are integral part of this statement.
80
<PAGE>
AVESTA TRUST
RISK MANAGER-GROWTH FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout the period indicated)
<TABLE>
<CAPTION>
Six months
ended Years ended December 31,
June 30, ------------------------
SELECTED PER UNIT DATA: 1996 1995 1994*
----------- ---- -----
<S> <C> <C> <C>
Investment income $ 0.24 $ 0.43 $ 0.11
Expenses (0.16) (0.20) (0.09)
Expense subsidy 0.09 0.08 0.06
------ ------ ------
Net investment income 0.17 0.31 0.08
Net realized and unrealized gain/(loss)
on investments 0.47 1.88 (0.18)
------ ------ ------
Net increase/(decrease) in net asset value 0.64 2.19 (0.10)
Net asset value, beginning of period 12.09 9.90 10.00
------ ------ ------
Net asset value, end of period $12.73 $12.09 $ 9.90
====== ====== ======
RATIO TO AVERAGE NET ASSETS:
Expenses 1.10% 1.10% 1.10%**
Net investment income 2.81% 2.84% 3.14%**
OTHER:
Average net assets (000 omitted) $2,903 $5,532 $4,949
Portfolio turnover 18% 191% 31%
Number of units outstanding at
end of period (000 omitted) 280 198 500
Total return 5.29% 22.15% (4.10%)**
</TABLE>
* Commencement of Operations October 3, 1994.
**Annualized
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are integral part of this statement.
81
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(Unaudited)
Annualized
Principal Maturity Yield on Date
Amount Date of Purchase Value
- --------- -------- ------------- -------------
<S> <C> <C> <C> <C>
CERTIFICATE OF DEPOSIT-2.6%
$2,000,000 Commerzbank AG, 5.75%, due 04/11/97 $ 1,999,255
-----------
COMMERCIAL PAPER-71.9%
3,500,000 American Express Credit Corporation 07/26/96 5.34% 3,487,021
3,345,021 American General Corporation 07/01/96 5.50% 3,345,000
3,500,000 Anheuser Busch Companies 07/23/96 5.30% 3,488,664
3,425,000 Baltimore Gas & Electric 07/11/96 5.25% 3,420,005
3,800,000 BankAmerica Corporation 09/12/96 5.29% 3,759,238
3,500,000 Cargill, Inc. 08/01/96 5.35% 3,483,876
3,800,000 General Electric Capital Corporation 07/09/96 5.29% 3,795,533
2,500,000 Goldman Sachs Group, LP 08/12/96 5.33% 2,484,454
1,000,000 International Lease Finance Corporation 08/19/96 5.27% 992,827
3,700,000 Metropolitan Life Funding 07/22/96 5.27% 3,688,626
3,700,000 National Rural Utilities Cooperative Finance Corporation 07/08/96 5.30% 3,696,187
3,200,000 PHH Corporation 07/16/96 5.31% 3,192,920
3,500,000 Prudential Funding Corporation 07/11/96 5.34% 3,494,808
3,000,000 Societe Generale 07/09/96 4.90% 2,996,733
3,500,000 Student Loan Corporation 08/23/96 5.28% 3,472,793
1,800,000 Toyota Motor Credit 07/08/96 5.28% 1,798,152
1,800,000 Toyota Motor Credit 07/31/96 5.31% 1,792,035
3,500,000 USAA Capital Corporation 08/06/96 5.34% 3,481,310
-----------
Total Commercial Paper 55,870,182
-----------
CORPORATE BONDS-17.6%
1,900,000 International Lease Finance Corporation, 6.28%, due 01/27/97 1,910,191
3,000,000 Merrill Lynch and Company, Inc., 5.43%, due 04/04/97 2,999,545
3,000,000 Morgan, J.P., 5.75%, due 08/07/96 2,999,854
1,172,000 NationsBank Corporation, 7.50%, due 02/15/97 1,189,284
1,100,000 Norwest Corporation, 7.75%, due 12/31/96 1,111,659
3,000,000 Pepsico, Inc., 5.00%, due 02/24/97 2,999,757
500,000 Virginia Electric & Power Company, 8.20%, due 08/15/96 501,297
-----------
Total Corporate Bonds 13,711,587
-----------
</TABLE>
82
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Principal
Amount Value
- ------------ ------------
<C> <S> <C>
REPURCHASE AGREEMENTS-3.5%
$ 57,000 Goldman Sachs and Company, dated 06/28/96, 5.25%, due 07/01/96 in the amount $ 57,000
of $57,000 (collateralized by $59,941 U.S. Treasury Note, 5.25%, due
01/31/01, with a market value of $58,541 at 06/30/96), repurchase proceeds $57,024.
2,679,000 Lehman Government Securities, dated 06/28/96, 5.30%, due 07/01/96 in the amount 2,679,000
of $2,679,000 (collateralized by $2,541,555 U.S. Treasury Note, 7.75%, due 01/31/00,
with a market value of $2,810,411 at 06/30/96), repurchase proceeds $2,680,183. ------------
Total Repurchase Agreements 2,736,000
------------
Number
of Shares SHORT-TERM INVESTMENT FUND-2.1%
- ----------
1,596,000 Fidelity Institutional Cash Portfolios-U.S. Government Portfolio 1,596,000
------------
Principal
Amount U.S. GOVERNMENT AGENCY OBLIGATION-1.9%
- ----------
$1,500,000 Federal Home Loan Bank, 5.75%, due 04/18/97 1,500,000
------------
Total Investments (Cost $77,413,024)-99.7% 10,494,077
------------
Other assets in excess of liabilities-0.3% 268,593
------------
NET ASSETS-100% $10,762,670
============
</TABLE>
* Interest rate is reset monthly based on the three month U.S. Treasury Bill.
Rate shown is the rate in effect on June 30, 1996 plus ten basis points.
The accompanying notes are an integral part of this statement.
83
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST AVESTA TRUST
MONEY MARKET FUND MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(Unaudited) (Unaudited)
ASSETS NET INVESTMENT INCOME
<S> <C> <C> <C>
Investments at amortized cost, Income
which approximates value $77,413,024 Interest $2,153,190
Cash 132 ----------
Investment income receivable 336,297 Total income 2,153,190
----------- ----------
Total assets 77,749,453 Expenses
----------- Management fee (Note 2) 256,754
Accounting fees 6,210
LIABILITIES Audit fees 5,531
Directors' fees 1,208
Management fee payable 67,836 Insurance 1,888
---------- Legal fees 2,166
Total liabilities 67,836 Registration fees (1,372)
---------- Shareholder reports 713
NET ASSETS $77,681,617 Miscellaneous 1,000
=========== ----------
Unit value, offering price and redemp- Total expenses 274,098
tion price per unit ($77,681,617 / Expense subsidy (Note 3) (17,344)
77,681,617 units of beneficial Voluntary fee waiver (Note 3) (59,252)
interest issued and outstanding; ----------
unlimited number of units authorized) $1.00 Net expenses 197,502
==========
Net investment income $1,879,092
==========
</TABLE>
The accompanying notes are an integral part of this statement.
84
<PAGE>
<TABLE>
<CAPTION>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six months ended Year ended
June 30, December 31,
1996 1995
---------------- -------------
<S> <C> <C>
Increase in Net Assets
FROM OPERATIONS
Net investment income $ 1,955,688 $ 3,640,840
------------ -------------
Dividends to unitholders (1,955,688) (3,640,840)
------------ -------------
FROM UNIT TRANSACTIONS (at $1 per unit)
Net proceeds from units issued 69,164,903 143,467,408
Net asset value of units issued
for dividends reinvested 1,955,688 3,640,840
Cost of units redeemed (64,749,196) (131,303,078)
------------ -------------
Net increase in net assets resulting
from unit transactions 6,371,395 15,805,170
------------ -------------
Total increase in net assets 6,371,395 15,805,170
Net assets, beginning of year 71,310,222 55,505,052
------------ -------------
Net assets, end of year $ 77,681,617 $ 71,310,222
============ =============
Net Change in Units Outstanding
Units issued 69,164,903 143,467,408
Units redeemed (69,749,196) (131,303,078)
Units issued for dividends reinvested 1,955,688 3,640,840
------------ -------------
6,371,395 15,805,170
============ =============
</TABLE>
The accompanying notes are an integral part of this statement.
85
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
MONEY MARKET FUND
SELECTED PER UNIT DATA AND RATIOS
(Unaudited)
(Selected data for a unit outstanding throughout each of the years indicated)
<TABLE>
<CAPTION>
Six months ended Years ended December 31,
June 30, -------------------------------------------------
SELECTED PER UNIT DATA: 1996 1995 1994 1993 1992 1991
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income $ 0.027 $ 0.059 $ 0.045 $ 0.032 $ 0.041 $ 0.063
Expenses (0.003) (0.006)** (0.007)** (0.008) (0.008) (0.007)
Expense subsidy 0.001 0.001 0.001 0.002 0.002 0.001
------- ------- ------- ------- ------- -------
Net investment income (0.025) 0.054 0.039 0.026 0.035 0.057
Dividends to unitholders (0.025) (0.054) (0.039) (0.026) (0.035) (0.057)
------- ------- ------- ------- ------- -------
Net asset value, beginning of year 1.000 1.000 1.000 1.000 1.000 1.000
------- ------- ------- ------- ------- -------
Net asset value, end of year $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
RATIO TO AVERAGE NET ASSETS:
Expenses 0.50% 0.50%* 0.50%* 0.65% 0.65% 0.65%
Net investment income 4.95% 5.43% 3.90% 2.57% 3.37% 5.69%
OTHER:
Average net assets (000 omitted) $79,435 $67,067 $31,587 $30,917 $34,125 $31,036
Number of units outstanding at
end of year (000 omitted) 77,682 71,310 55,505 28,024 32,861 32,230
Total return 2.49% 5.57% 3.80% 2.60% 3.44% 6.01%
</TABLE>
* Reflects management fee reduction of .15% or $100,525 and $27,802 for the
years ended December 31, 1995 and 1994 respectively. For the year ended
December 31, 1994 the actual net expense ratio for the year was .56% of
average net assets as the fee reduction went into effect on 5/2/94.
**Reflects management fee reduction of $100,525 or $0.002 per unit and $27,802
or $0.001 per unit for the years ended December 31, 1995 and 1994
respectively. Without management fee reduction, expense per unit is $0.007 and
$0.008 for the years ended December 31, 1995 and 1994 respectively.
Per unit amounts are calculated using average units outstanding for the period.
The accompanying notes are an integral part of this statement.
86
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
The AVESTA Trust (the "Trust"), formerly the Retirement Investment Trust, is
registered under the Investment Company Act of 1940 as an open-end, diversified,
management investment company that consists of fifteen Funds for the collective
investment of retMatthew C. ThomasMatthew C. ThomasThe AVESTA Trust (the
"Trust"), formerly the Retirement Investment Trust, is registered under the
Investment Company Act of 1940 as an open-end, diversified, management
investment company that consists of fifteen Funds for the collective investment
of retirement accounts for which Texas Commerce Bank National Association
("TCB") or one of its affiliated banks serves as trustee. Under an amended and
restated Declaration of Trust, TCB is the Trustee of the Trust and, as such,
provides, or arranges for the provision of, investment advisory, administrative
and custodial services and unitholder accounting. Chemical Securities of Texas,
Inc., an affiliate of TCB, is the distributor of the Trust. Each Fund has an
unlimited number of units authorized.
The Trust currently offers thirteen Funds, each of which is accounted for
separately and has a different investment objective.
The EQUITY GROWTH FUND seeks to increase retirement assets primarily by
investing in equity-based securities, which include common stocks and those debt
securities and preferred stocks convertible into common stock, that provide
capital appreciation. Current income is a secondary objective.
The EQUITY INCOME FUND seeks to increase retirement assets by investing
primarily in equity-based securities that provide capital appreciation as well
as current income.
The BALANCED FUND seeks to increase retirement assets by investing in a
combination of bonds and equity-based securities to provide a balance of current
income and capital appreciation.
The INCOME FUND seeks to increase retirement assets by investing primarily in
domestic debt securities that earn a high level of current income with
consideration also given to safety of principal.
The CORE EQUITY FUND seeks to increase retirement assets by investing primarily
in common stocks of U.S. companies to maximize total investment return through
emphasis on capital appreciation and current income consistent with reasonable
risk.
The SMALL CAPITALIZATION FUND seeks to increase retirement assets by investing
primarily in common stocks and other equity-based securities of small
capitalization U.S. companies that can provide capital appreciation.
The SHORT-INTERMEDIATE TERM U.S. GOVERNMENT SECURITIES FUND seeks to increase
retirement assets by investing primarily in shorter-term securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities, and
repurchase agreements with respect thereto, to provide as high a level of
current income as is consistent with the preservation of capital.
The U.S. GOVERNMENT SECURITIES FUND seeks to increase retirement assets by
investing primarily in securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities, and repurchase agreements with respect
thereto, to provide current income with emphasis on preservation of capital.
There is no restriction on the maturity of the Fund's portfolio or any
particular portfolio security.
The INTERMEDIATE TERM BOND FUND seeks to increase retirement assets by investing
primarily in debt securities with intermediate term maturities to provide
current income, with consideration given to stability of principal.
The RISK MANAGER-INCOME FUND seeks to increase retirement assets by investing in
a combination of debt and, to a lesser extent, equity-based securities to
achieve high current income and, when appropriate, capital appreciation.
The RISK MANAGER-BALANCED FUND seeks to increase retirement assets by investing
in a combination of debt and equity-based securities for high total return.
The RISK MANAGER-GROWTH FUND seeks to increase retirement assets by investing in
a combination of equity-based and, to a lesser extent, debt securities to
achieve capital appreciation and, secondarily, current income.
The MONEY MARKET FUND seeks to increase retirement assets by investing only in
instruments with a remaining maturity of thirteen months or less to provide a
high level of current income with equal emphasis on liquidity and stability of
principal.
The INTERNATIONAL EQUITY FUND had not commenced operations at June 30, 1996.
The INTERNATIONAL BOND FUND had not commenced operations at June 30, 1996.
The ability of the issuers of the securities held by the Trust to meet their
obligations may be affected by economic developments in a specific industry or
region.
87
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. 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.
Note 1 - Accounting Policies
- ----------------------------
A. Securities Valuation
Securities listed or traded on a national securities exchange are valued at the
last reported sales price on the primary exchange on which they are traded,
usually 3:00 p.m. Houston time. Unlisted securities and listed securities for
which the last sales price is not available are valued at the last reported bid
price. U.S. Government securities are valued at the last reported bid price.
For all funds except for the Money Market Fund, short-term securities which
mature in more than 60 days are valued at current market quotations. Short-term
securities are valued at amortized cost if, (1) their term to maturity from date
of purchase was 60 days or less, (2) their maturity is 60 days or less, or (3)
their original term to maturity from date of purchase exceeded 60 days, by
amortizing their value on the 61st day prior to maturity. The Money Market Fund
values all securities at amortized cost.
A repurchase agreement is a short-term investment in which a fund acquires
ownership of a debt security and the seller agrees to repurchase the security at
a future time at a specified price. Repurchase agreements are entered into only
with approved counterparties which are monitored on a daily basis. It is the
Trust's policy that its custodian take possession of the underlying collateral
securities, through physical delivery or book entry transfer, the value of which
exceeds the principal amount of the repurchase transaction, including accrued
interest. To the extent that any repurchase transaction exceeds one business
day, the value of the collateral is marked-to-market on a daily basis to ensure
the adequacy of the collateral.
B. Options and Futures Contracts
Put and Call Options
All funds, except the Money Market Fund, may invest in exchange-listed and over-
the-counter put and call options in order to take advantage of market
inefficiencies or to provide portfolio protection in expectation of a declining
market. During 1996, the Trust invested in options contracts soley for the
purpose of hedging its existing portfolio.
When the Trust writes (sells) a call option, an amount equal to the premium
received by the Trust is recorded as a liability and is subsequently adjusted to
the current market value of the option written. Premiums received from writing
call options which expire unexercised are treated by the Trust on the expiration
date as realized gains from the sale of options. The difference between the
premium received and the amount paid on effecting a closing purchase
transaction, including brokerage commissions, is also treated as a realized
gain, or if the premium is less than the amount paid for the closing purchase
transaction, as a realized loss. If a written call option is exercised, the
premium is added to the proceeds from the sale of the underlying security in
determining whether the Trust has realized a gain or loss. The Trust, as writer
of a call option, may have no control over whether the underlying securities may
be sold, and as a result, bears the market risk of an unfavorable change in the
price of the security underlying the written call option. If a written call
option on a futures contract is exercised, the premium is recognized as a gain.
Thereafter, such futures contracts are accounted for as described under
"Financial Futures Contracts". The Trust may not write put options.
The premium paid by the Trust for the purchase of a call or put option is
recorded as an investment and is subsequently valued to reflect the current
market value of the option purchased. If a purchased option expires, the Trust
realizes a loss in the amount of the premium paid for the option. If the Trust
enters into a closing transaction, it realizes a gain or loss, depending on
whether the proceeds from the sale are more or less than the cost of the option.
If the Trust exercises a purchased put option, it realizes a gain or loss from
the sale of the underlying security and the proceeds from such sale are
decreased by the premium originally paid. If the Trust exercises a purchased
call option, the amount of the premium originally paid increases the cost of the
security which the Trust purchases upon exercise of the option.
Financial Futures Contracts
A financial futures contract is an agreement between two parties to purchase
(long) or sell (short) a financial instrument at a set price for delivery on a
future date. Upon entering into a financial futures contract, the Trust is
required to pledge to the broker an amount of cash and/or U.S. Government
securities equal to a certain percentage of the contract amount. This amount is
known as the "initial margin." Subsequent payments, known as "variation
margin," are made or received by the Trust each day, depending on the daily
fluctuations in the value of the underlying security. Such variation margin is
recorded for financial statement purposes on a daily basis as a realized gain or
loss. The Trust invests in
88
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
financial futures contracts solely for the purpose of hedging its existing
portfolio securities or securities the Trust intends to purchase against
fluctuations in value caused by changes in prevailing market interest rates.
Should market values move unexpectedly, the Trust may not achieve the
anticipated benefits of the financial futures contracts and may realize a loss.
The use of futures transactions involves the risk of imperfect correlation in
movements in the price of futures contracts, interest rates and the underlying
hedged assets.
C. Federal Income Taxes
No provision for federal income taxes is required because the IRS has ruled that
the Trust is a pooled-fund arrangement exempt from Federal Income Tax. To
maintain this tax-exempt status, only Individual Retirement Accounts, Keogh
plans, 401(k) plans and other plans exempt from federal taxation may invest in
the Funds.
D. Securities Transactions and Investment Income
Securities transactions are recorded on the trade date. Realized gains and
losses on sales of investments are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is
recorded on the accrual basis. Discounts and premiums are amortized using the
scientific method except for the Money Market Fund which utilizes the straight-
line method.
E. Dividend Distributions
The Money Market Fund declares daily and pays monthly dividend distributions
from net investment income and short-term capital gains; such dividend
distributions are automatically reinvested. Dividend distributions are recorded
on ex-dividend date. The other twelve funds do not declare or pay dividends on
investment income.
Note 2 - Management Fees
- ------------------------
The Trust has management agreements with TCB. Pursuant to these agreements, TCB
has responsibility for all investment advisory services in connection with the
management of the Trust. TCB pays the compensation of officers and employees of
the Trust, occupancy and certain accounting and clerical costs of the Trust.
The Trust bears all other costs and expenses.
The investment management fee paid by each Fund is accrued daily and paid
monthly. With respect to the Equity Growth Fund, the Equity Income Fund, the
Balanced Fund, the Income Fund, and the Core Equity Fund, the management fee is
limited to an annual rate of 1.00% of the first $250 million of the average
daily net assets of each Fund, 0.90% of the next $250 million of such net
assets, and 0.80% of such net assets in excess of $500 million. The Short-
Intermediate Term U.S. Government Securities Fund and the Intermediate Term Bond
Fund pay a management fee limited to an annual rate of 0.75% of the first $250
million of the average daily net assets of the Fund, 0.65% of the next $250
million of such net assets, and 0.55% of such net assets in excess of $500
million. The U.S. Government Securities Fund pays a management fee limited to
an annual rate of 0.85% of the first $250 million of the average daily net
assets of the Fund, 0.75% of the next $250 million of such net assets, and 0.65%
of such net assets in excess of $500 million. The Small Capitalization Fund
pays a management fee limited to an annual rate of 1.15% of the first $250
million of the average daily net assets of the Fund, 1.05% of the next $250
million of such net assets, and 0.95% of such net assets in excess of $500
million. The Risk Manager-Income Fund, the Risk Manager-Balanced Fund, and the
Risk Manager-Growth Fund pay a management fee limited to an annual rate of 1.10%
of the first $250 million of the average daily net assets of the fund, 1.00% of
the next $250 million of such net assets, and .90% of such net assets in excess
of $500 million. The Money Market Fund pays a management fee limited to an
annual rate of 0.65% of the Fund's average daily net assets.
Note 3 - Expense Subsidy and Voluntary Fee Waiver
- -------------------------------------------------
In accordance with the management agreement, TCB has agreed to subsidize 100% of
the operating expenses in excess of the management fee of each Fund until net
assets of each Fund exceeds $250 million. Generally, expenses applicable to all
funds are allocated equally. Expenses incurred for specific funds are allocated
to the respective funds.
For the six months ended June 30, 1996, TCB elected to reduce management fees on
an ongoing basis by a total of $139,115 resulting in the following amounts of
fees reduced per fund: $67,397 in the Income Fund, $11,122 in the Small
Capitalization Fund, $1,344 in the U.S. Government Securities Fund, and $59,252
in the Money Market Fund.
From time to time, TCB may voluntarily elect to waive a portion of the Trust's
management fee. The voluntary fee waiver may be discontinued at any time
without prior notice.
89
<PAGE>
TEXAS COMMERCE BANK NATIONAL ASSOCIATION
AVESTA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
Note 4 - Portfolio Securities
- -----------------------------
Purchases and sales of investment securities, excluding short-term securities,
futures and written options, for the six months ended June 30, 1996 and gross
unrealized appreciation and depreciation at June 30, 1996 were as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Purchases Sales Appreciation Depreciation
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Equity Growth Fund $16,194,899 $13,448,270 $10,567,366 $670,281
Equity Income Fund 10,075,971 2,568,770 15,413,027 185,181
Balanced Fund 10,297,187 9,551,552 2,254,944 217,372
Income Fund 17,884,518 18,169,362 379,661 664,364
Core Equity Fund 6,867,057 6,395,233 5,244,812 105,339
Small Capitalization Fund 6,502,567 3,183,264 4,458,407 544,425
Short-Intermediate Term U.S.
Government Securities Fund 36,594,514 34,525,047 106,258 87,377
U.S. Government Securities Fund 548,281 221,131 82,420 15,370
Intermediate Term Bond Fund 7,185,626 5,952,911 10,424 111,943
Risk Manager-Income Fund 2,120,231 2,168,205 171,276 51,716
Risk Manager-Balanced Fund 2,656,089 1,975,600 432,623 56,584
Risk Manager-Growth Fund 808,860 400,480 251,661 15,520
</TABLE>
Purchases and sales of long-term U.S. Government Obligations included in the
purchase and sale amounts above for the six months ended June 30, 1996 are as
follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Purchases Sales Appreciation Depreciation
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balanced Fund $ 4,726,188 $ 1,963,617 $ 52,165 $ 75,859
Income Fund 15,451,563 16,936,125 224,621 619,725
Short-Intermediate Term U.S.
Government Securities Fund 31,935,075 33,164,453 106,258 84,081
U.S. Government Securities Fund 548,281 250,141 67,901 850
Intermediate Term Bond Fund 6,079,935 5,043,984 7,284 82,521
Risk Manager-Income Fund 1,827,031 1,220,068 12,177 37,334
Risk Manager-Balanced Fund 812,219 794,924 38,141 45,545
Risk Manager-Growth Fund 353,828 0 32,389 8,233
</TABLE>
The Money Market Fund held only short-term securities and, therefore, is not
included above.
Note 5 - 10:1 Reverse Split
- ---------------------------
On May 7, 1993, the Equity Growth Fund, the Equity Income Fund, the Balanced
Fund and the Income Fund effected a 10 for 1 reverse split. One unit of
beneficial interest was exchanged for each ten units of beneficial interest
outstanding.
90
|
|