<PAGE>
NORWEST ADVANTAGE FUNDS-Registered Trademark-
SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
NORWEST ADVANTAGE FUNDS
FIXED INCOME FUNDS
STABLE INCOME FUND
LIMITED TERM GOVERNMENT INCOME FUND
INTERMEDIATE GOVERNMENT INCOME FUND
DIVERSIFIED BOND FUND
INCOME FUND
TOTAL RETURN BOND FUND
-----------------------
TAX-FREE FIXED INCOME FUNDS
LIMITED TERM TAX-FREE FUND
TAX-FREE INCOME FUND
COLORADO TAX-FREE FUND
MINNESOTA INTERMEDIATE TAX-FREE FUND
MINNESOTA TAX-FREE FUND
-----------------------
BALANCED FUNDS
STRATEGIC INCOME FUND
MODERATE BALANCED FUND
GROWTH BALANCED FUND
-----------------------
EQUITY FUNDS
INDEX FUND
INCOME EQUITY FUND
VALUGROWTHSM STOCK FUND
DIVERSIFIED EQUITY FUND
GROWTH EQUITY FUND
LARGE COMPANY GROWTH FUND
SMALL COMPANY STOCK FUND
SMALL COMPANY GROWTH FUND
SMALL CAP OPPORTUNITIES FUND
CONTRARIAN STOCK FUND
INTERNATIONAL FUND
------------------------------------
PERFORMA FUNDS
PERFORMA STRATEGIC VALUE BOND FUND
PERFORMA DISCIPLINED GROWTH FUND
PERFORMA SMALL CAP VALUE FUND
PERFORMA GLOBAL GROWTH FUND
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NOT FDIC INSURED
<PAGE>
TABLE OF CONTENTS NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
A MESSAGE TO OUR SHAREHOLDERS............................................. 1
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA.......................... 2
Stable Income Fund............................................... 2
Limited Term Government Income Fund.............................. 3
Intermediate Government Income Fund.............................. 4
Diversified Bond Fund............................................ 5
Income Fund...................................................... 6
Total Return Bond Fund........................................... 7
Limited Term Tax-Free Fund....................................... 8
Tax-Free Income Fund............................................. 9
Colorado Tax-Free Fund........................................... 10
Minnesota Intermediate Tax-Free Fund............................. 11
Minnesota Tax-Free Fund.......................................... 12
Strategic Income Fund............................................ 13
Moderate Balanced Fund........................................... 14
Growth Balanced Fund............................................. 15
Index Fund....................................................... 16
Income Equity Fund............................................... 17
ValuGrowth-SM- Stock Fund........................................ 18
Diversified Equity Fund.......................................... 19
Growth Equity Fund............................................... 20
Large Company Growth Fund........................................ 21
Small Company Stock Fund......................................... 22
Small Company Growth Fund........................................ 23
Small Cap Opportunities Fund..................................... 24
Contrarian Stock Fund............................................ 25
International Fund............................................... 26
Performa Strategic Value Bond Fund............................... 27
Performa Disciplined Growth Fund................................. 27
Performa Small Cap Value Fund.................................... 28
Performa Global Growth Fund...................................... 28
FINANCIAL STATEMENTS OF NORWEST ADVANTAGE FUNDS
Statements of Assets and Liabilities............................. 30
Statements of Operations......................................... 34
Statements of Changes in Net Assets.............................. 38
Financial Highlights............................................. 42
Notes to Financial Statements.................................... 53
Schedule of Investments.......................................... 63
Stable Income Fund...................................... 63
Limited Term Government Income Fund..................... 63
Intermediate Government Income Fund..................... 63
Diversified Bond Fund................................... 64
Income Fund............................................. 64
Total Return Bond Fund.................................. 66
Limited Term Tax-Free Fund.............................. 66
Tax-Free Income Fund.................................... 70
Colorado Tax-Free Fund.................................. 75
Minnesota Intermediate Tax-Free Fund.................... 77
Minnesota Tax-Free Fund................................. 90
Strategic Income Fund................................... 93
Moderate Balanced Fund.................................. 93
Growth Balanced Fund.................................... 94
Index Fund.............................................. 94
Income Equity Fund...................................... 94
ValuGrowth-SM- Stock Fund............................... 94
Diversified Equity Fund................................. 96
Growth Equity Fund...................................... 96
Large Company Growth Fund............................... 96
Small Company Stock Fund................................ 96
Small Company Growth Fund............................... 96
Small Cap Opportunities Fund............................ 96
</TABLE>
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<PAGE>
TABLE OF CONTENTS (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Contrarian Stock Fund .................................. 97
International Fund...................................... 97
Notes to Schedules of Investments................................ 98
FINANCIAL STATEMENTS OF NORWEST ADVANTAGE PERFORMA FUNDS
Statements of Assets and Liabilities............................. 102
Statements of Operations......................................... 103
Statements of Changes in Net Assets.............................. 104
Financial Highlights............................................. 105
Notes to Financial Statements.................................... 106
Schedules of Investments......................................... 108
Performa Strategic Value Bond Fund...................... 108
Performa Disciplined Growth Fund........................ 108
Performa Small Cap Value Fund........................... 108
Performa Global Growth Fund............................. 108
Notes to Schedules of Investments................................ 109
FINANCIAL STATEMENTS OF CORE TRUST (DELAWARE)
Statements of Assets and Liabilities............................. 112
Statements of Operations......................................... 114
Statements of Changes in Net Assets.............................. 116
Financial Highlights............................................. 118
Notes to Financial Statements.................................... 119
Schedules of Investments of Core Trust (Delaware)................ 124
Positive Return Bond Portfolio.......................... 124
Stable Income Portfolio................................. 124
Managed Fixed Income Portfolio.......................... 127
Total Return Bond Portfolio............................. 130
Index Portfolio......................................... 131
Income Equity Portfolio................................. 139
Large Company Growth Portfolio.......................... 141
Small Company Stock Portfolio........................... 142
Small Company Growth Portfolio.......................... 143
Small Company Value Portfolio........................... 146
International Portfolio................................. 148
Strategic Value Bond Portfolio.......................... 151
Disciplined Growth Portfolio............................ 152
Small Cap Value Portfolio............................... 153
Notes to Schedules of Investments................................ 156
FINANCIAL STATEMENTS OF SCHRODER CAPITAL FUNDS (DELAWARE)
Statements of Assets and Liabilities............................. 160
Statements of Operations......................................... 161
Statements of Changes in Net Assets.............................. 162
Financial Highlights............................................. 163
Notes to Financial Statements.................................... 164
Schedule of Investments of Schroder Capital Funds................ 166
Schroder U.S. Smaller Companies Portfolio............... 166
Schroder Global Growth Portfolio........................ 167
Schroder EM Core Portfolio.............................. 169
</TABLE>
[LOGO]
<PAGE>
A MESSAGE TO OUR SHAREHOLDERS
- --------------------------------------------------------------------------------
January 21,
1998
Dear Shareholders,
We are pleased to present the Semi-Annual Report for
Norwest Advantage Funds. This report includes twenty-nine
of the thirty-five Norwest Advantage Funds portfolios. The
five Norwest Advantage Funds money market portfolios are
reported separately.
Norwest Advantage Funds experienced substantial asset
growth during this period, with net assets increasing from
one year ago by 23% to more than $18 billion as of
November 30, 1997. This continues a long period of growth
due, in part, to our funds' performance. We pledge to
continue to provide the prudent management and results
that earn your trust and support.
The big news during this period was, of course, the
financial turmoil that emerged from Asian markets.
Eventually, the damage spread until markets around the
globe experienced significant declines. Despite the
downturn, both the U.S. economy and the financial markets
remained on relatively solid footing. Inflation remained
under control. Interest rates fell substantially. And the
federal deficit continued to decline appreciably. We
believe that these trends are likely to continue and,
overall, may bode well for the U.S. financial markets.
In the bond markets, a healthy rally occurred. The
Federal Reserve took no action. Meanwhile, interest rates
on the 30-year Treasury yield fell from almost seven
percent to nearly six percent. As the impact of Asia hit
America, a "decoupling" of the bond and stock markets
began to occur as the bond rally continued while stocks
corrected. We expect bond market conditions to remain
favorable for some time.
Despite the correction, the U.S. stock market produced
solid returns, with the S&P 500 gaining 28.1% for the past
year. Smaller stocks also performed well, yet continued to
trail large stocks. A rally that began last spring ended
abruptly in October, leaving the Russell 2000 with a
one-year gain of 23.4%. Volatility increased greatly, due
primarily to worries about Asia. We expect volatility with
occasional corrections to continue, even while our long-
term outlook for stocks remains positive.
We recognize that such volatility amid increased
uncertainty can be stressful for investors. That's why we
offer a variety of mutual funds appropriate for your
risk-tolerance and time-frames, along with personalized
service to aid you in achieving your financial goals. If
you have questions or need information, please call us at
(800) 338-1348 or (612) 667-8833. We are grateful that you
have chosen Norwest Advantage Funds, and look forward to
continuing to earn your confidence.
Sincerely,
[SIGNATURE]
John Y. Keffer
CHAIRMAN, NORWEST ADVANTAGE
FUNDS
[LOGO]
1
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED) NOVEMBER 30,
1997
- --------------------------------------------------------------------------------
STABLE INCOME FUND MANAGED BY: KARL P. TOURVILLE
An interview with Karl P. Tourville
Portfolio Manager of Stable Income Fund
Q. Karl, how has the Fund performed?
A. For the six months ended November 30, 1997, the Fund achieved a cumulative
return of 3.39%, compared to a return of 3.41% for the Lipper Short
Investment-Grade Debt Funds Average. Also, we are very proud of the fact that
the Fund recently received an overall Morningstar rating of 4 stars among 1,355
fixed income funds.
Q. What benchmark do you manage the Fund against?
A. The Fund is managed against the Merrill Lynch One Year
T-Bill Index, which we have outperformed on a consistent basis. Our approach
avoids timing interest rate moves and focuses on outperforming the benchmark
through the security selection process.
Q. Can you tell me a little bit about your security selection process?
A. In choosing specific securities we have a bottom-up strategy which considers
four factors. First, we analyze the relative cash flows and yield advantage of
the security. Second, we value any options which may be embedded in the
security. Additionally, we evaluate the credit or structural issues of the
security. Finally, we look at esoteric factors like liquidity or anything else
which may affect its marketability. From this process, we are able to estimate a
security's true economic value which we then compare with the market price.
Q. What is your outlook?
A. We believe inflation will remain low and that real GDP growth will slow
somewhat from current levels to around 2.5%-3.0%. As a result, we believe
interest rates have room to fall further from current levels. As rates fall, the
configuration of the yield curve is expected to become steeper.
Q. What are the Fund characteristics?
A. The Fund's credit quality is strong with a weighted average quality of AAA.
At last quarter-end we had 78% of the portfolio in AAA bonds, 9% in AA bonds,
and 13% in A-rated bonds. We had 11% of the portfolio in Treasuries, 7% in
agencies, 48% in mortgage-backed securities, 19% asset-backed securities, 8%
corporate, 2% taxable municipals and 5% cash. The average maturity of our
portfolio was 2.99 years. Our modified duration was at .97 years. As of November
30, the make-up of the portfolio is largely unchanged. However, over the past
year we have selectively added about 7% to asset-backed securities.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
STABLE INCOME FUND VS. ONE-YEAR U.S. TREASURY BILL ("INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. PAST PERFORMANCE
IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------
A SHARES B SHARES I SHARES INDEX
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ONE YEAR 4.55% 4.56% 6.08% 5.81%
SINCE INCEPTION 6.00% 5.11% 6.49% 6.20%
INCEPTION DATE 11/11/94* 5/17/96 11/11/94 10/31/94
VALUE NOVEMBER 30, 1997 $11,954 $ 10,874 $12,124 $12,039
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund Index
<S> <C> <C>
11/09/94 $10,000 $10,000
11/95 10,800.00 10,761.82
11/96 11,429.66 11,378.64
11/97 12,124.23 12,039.49
</TABLE>
* 5/2/96 was the actual inception date of A Shares of the fund; however,
performance information has been calculated using the inception date of the
initial class of share.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
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2
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
LIMITED TERM GOVERNMENT INCOME FUND MANAGED BY: MARJORIE H. GRACE
An interview with Marjorie H. Grace
Portfolio Manager of Limited Term Government Income Fund
Q. Margie, the Fund was launched October 1, 1997. How has the Fund performed in
the first two months?
A. For the two months ended November 30, 1997, the Fund achieved a cumulative
return of 1.09%.
Q. What is your investment strategy for the Fund?
A. We plan to move the Fund toward a longer duration and expect to have a
neutral position across each sector.
Q. What is your outlook?
A. We think that commodity prices are still headed down so we intend to remain
longer in duration than our peers. We expect interest rates to come down and
yield curves to flatten. We look for low inflation and believe that the bond
market will do well.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
[LOGO]
3
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND MANAGED BY: MARJORIE H. GRACE
An interview with Marjorie H. Grace
Portfolio Manager of Intermediate Government Income Fund
Q. Margie, how has the Fund performed?
A. For the six months ended November 30, 1997, the Fund achieved a cumulative
return of 6.23%, compared to a return of 5.52% for the Lipper Intermediate
Government Funds Average.
Q. What contributed to the Fund's outperformance?
A. We were longer in duration than our peers and that helped us. Also, we were
underweighted in mortgage-backed securities versus our competition.
Q. How do you manage the Fund?
A. We manage the Fund conservatively, relying upon limited duration moves and
changing the weighting of our mortgage-backed security allocation.
Q. What is your outlook?
A. Although mortgages have done better recently, we plan to remain
underweighted in that sector. We are bullish on the market and therefore we are
bearish on owning mortgage-backed securities because of prepayment fears.
However, if we find that rates don't continue to go down and prepayment fears
are overstated then we may need to add more mortgages to help with the yield. We
think that commodity prices are still headed down so we intend to remain longer
in duration than our peers. We expect interest rates to come down and yield
curves to flatten. We look for low inflation and believe that the bond market
will do well.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INTERMEDIATE GOVERNMENT INCOME FUND VS. LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT INDEX ("LEHMAN INDEX") AND
LIPPER INTERMEDIATE GOVERNMENT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES* INDEX AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 2.22% 3.74% 6.52% 8.39% 6.17%
FIVE YEAR 4.65% N.A. 5.50% 7.20% 6.08%
TEN YEAR 6.78% N.A. 7.21% 8.49% 7.90%
SINCE INCEPTION N.A. 5.83% N.A. N.A. N.A.
INCEPTION DATE N.A. 5/17/96 N.A. N.A. N.A.
VALUE NOVEMBER 30, 1997 $20,088 $11,113 $20,087 $22,613 $ 21,218
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
Nov-88 10,696 10,734 10,791
Nov-89 11,768 12,073 12,071
Nov-90 12,697 13,083 12,970
Nov-91 14,275 14,773 14,680
Nov-92 15,365 15,972 15,780
Nov-93 16,851 17,431 17,266
Nov-94 15,839 17,278 16,645
Nov-95 17,895 19,643 19,066
Nov-96 18,858 20,862 19,989
Nov-97 20,087 22,613 21,218
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
4
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
DIVERSIFIED BOND FUND
MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
DIVERSIFIED BOND FUND seeks to provide total return by diversifying its
investments among different fixed-income investment styles. The Fund follows a
"multi-style" approach designed to reduce the price and return volatility of the
Fund and to provide more consistent returns. The Fund's portfolio combines three
different fixed income investment styles: (i) Strategic Value Bond Style; (ii)
Managed Fixed Income style; and (iii) Positive Return style. The Fund is managed
by multiple managers.
For the six months ended November 30, 1997, the Fund returned 7.66%, compared to
a return of 5.83% for the Lipper Intermediate Investment-Grade Debt Funds
Average.
The diversified structure of the Fund continues to help it perform well on a
relative basis for the period ending November 30, 1997. The bond market, as
measured by the Lehman Brothers Aggregate Bond Index, returned 6.55% for the six
months ended November 30, 1997. Continued moderate economic growth and low
inflation were positives for the bond market during the past six months.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED BOND FUND VS. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE
INDEX
("LEHMAN INDEX") AND LIPPER INTERMEDIATE INVESTMENT GRADE DEBT AVERAGE ("LIPPER
AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
LEHMAN LIPPER
I SHARES* INDEX AVERAGE
---------- ---------- ----------
<S> <C> <C> <C>
ONE YEAR 7.97% 6.32% 6.57%
FIVE YEAR 6.02% 6.77% 6.86%
TEN YEAR 7.58% 8.35% 8.42%
VALUE NOVEMBER 30, 1997 $20,778 $22,323 $ 22,076
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
Nov-88 10,857 10,769 10,808
Nov-89 12,017 12,120 12,047
Nov-90 12,960 13,088 12,782
Nov-91 14,466 14,843 14,571
Nov-92 15,511 16,085 15,812
Nov-93 16,635 17,649 17,553
Nov-94 16,299 17,327 16,909
Nov-95 18,305 19,841 19,626
Nov-96 19,244 20,996 20,702
Nov-97 20,778 22,323 22,076
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
5
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
INCOME FUND MANAGED BY: MARJORIE H. GRACE
An interview with Marjorie H. Grace
Portfolio Manager of Income Fund
Q. Margie, how has the Fund performed?
A. For the six months ended November 30, 1997, the Fund achieved a cumulative
return of 7.79%, compared to a return of 6.58 % for the Lipper Corporate Debt A
Rated Funds Average.
Q. What contributed to the Fund outperforming its Lipper peer group?
A. We did two things well that led to the outperformance of the fund. The first
is that we were longer in duration than our peers. It was a contrarian position
in that our competition was not as bullish as we were. Secondly, we had some
good sector allocations in that we reduced our mortgage-backed exposure in the
last few months. Thus, we were underweighted in mortgages as well as slightly
underweighted in corporate when both of these areas underperformed the last
couple of months. We capitalized on the market rally by being overweighted in
Treasuries. Overall, we have done a good job of restructuring the Fund and now
the performance is starting to show it.
Q. What changes have you made to the Fund?
A. Recently, we have added some corporates and now believe that we are no
longer underweighted as compared to our peers.
Q. What is your outlook?
A. We think that commodity prices are still headed down so we intend to remain
longer in duration than our peers, although most of them appear to be
lengthening. We will remain underweighted in mortgages, but, as I mentioned, we
are presently neutral in corporate as we have added some back. We expect
interest rates to come down and yield curves to flatten. We look for low
inflation and believe that the bond market will do well.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INCOME FUND VS. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN
INDEX") AND LIPPER CORPORATE DEBT A-RATED AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.44% 4.95% 7.75% 6.32% 6.93%
FIVE YEAR 5.13% N.A. 5.97% 6.77% 7.48%
TEN YEAR 7.72% N.A. 8.06% 8.35% 9.03%
SINCE INCEPTION N.A. 4.26% N.A. N.A. N.A.
INCEPTION DATE N.A. 8/5/93 N.A.* N.A. N.A.
VALUE NOVEMBER 30, 1997 $21,926 $11,984 $21,905 $22,323 $ 23,120
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
Nov-88 10,746 10,769 10,914
Nov-89 11,801 12,120 12,326
Nov-90 12,769 13,088 12,996
Nov-91 14,909 14,843 14,897
Nov-92 16,392 16,085 16,296
Nov-93 18,014 17,649 18,342
Nov-94 16,712 17,327 17,464
Nov-95 19,455 19,841 20,545
Nov-96 20,349 20,996 21,614
Nov-97 21,926 22,323 23,120
</TABLE>
* 8/2/93 was the actual inception date of I Shares of the Fund; however,
performance information has been calculated using the inception date of the
initial class of shares. Lipper Analytical Services, Inc. is a leading source
for mutual fund data. Although gathered from reliable sources, data accuracy and
completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
6
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
TOTAL RETURN BOND FUND MANAGED BY: DAVID B. KINNEY
An interview with David B. Kinney
Portfolio Manager of Total Return Bond Fund
Q. Dave, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 5.67%, compared to a return of 6.99% for the Lipper Corporate Debt BBB
Funds Average.
Q. What led to the Fund's underperformance?
A. The Fund has been positioned with a shorter duration than its benchmark.
With the strength of the economy, we anticipated that inflation and interest
rates would pick up. In the first half of the year, this proved beneficial. We
have also run the Fund with high quality securities. Both of these positions
hurt the portfolio in the past six months as interest rates have come down and
yield spreads have tightened.
Q. Could you describe your security selection process?
A. We concentrate on historical yield spreads of quality securities. We do not
manage the Fund by sector or actively trade securities.
Q. What is your outlook for the bond market?
A. We have been anticipating an increase in interest rates. However, the
problems in Asia have caused a recent flight to quality in the Treasury market
and a decline in commodity prices. We therefore have not shortened the duration
of the Fund.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
TOTAL RETURN BOND FUND VS. LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE
INDEX ("LEHMAN INDEX") AND LIPPER CORPORATE DEBT BBB-RATED AVERAGE ("LIPPER
AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ONE YEAR 2.21% 3.65% 6.44% 6.32% 7.76%
SINCE INCEPTION 4.81% 4.97% 5.95% 6.05% 6.90%
INCEPTION DATE 12/31/93 12/31/93 12/31/93 12/31/93 12/31/93
VALUE NOVEMBER 30, 1997 $12,024 $12,194 $12,542 $12,591 $12,992
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
31-Dec-93 $10,000 $10,000 $10,000
Nov-94 9,871 9,773 9,455
Nov-95 11,195 11,191 11,305
Nov-96 11,783 11,842 12,050
Nov-97 12,542 12,591 12,992
</TABLE>
Lipper Analytical Services, Inc. is a leading source for mutual fund data.
Although gathered from reliable sources, data accuracy and completeness cannot
be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
7
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
LIMITED TERM TAX-FREE FUND MANAGED BY: WILLIAM T. JACKSON
An interview with William T. Jackson,
Portfolio Manager of Limited Term Tax-Free Fund
Q. Bill, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 3.76%, compared to a return of 3.07% for the Lipper Short Intermediate
Municipal Debt Funds Average.
Q. What contributed to the Fund's outperformance?
A. The Fund had a relatively longer duration in the time period than most of
the funds in its peer group which in the positive market we have had has given
the Fund greater price appreciation. Also, due to a positive cash flow into the
Fund, we have been able to add value though opportunistic issue selection.
Q. Was the Fund's longer duration an interest rate bet?
A. Certainly, our market outlook has called for a decline in interest rates. We
positioned ourselves accordingly and the Fund benefited when rates decreased.
However, this is a short-term fund which we manage extremely conservatively. Our
longer duration is in strict relative terms. We must keep our average maturity
under 5 years and have done that.
Q. What is your outlook for the bond market?
A. We still maintain a positive outlook for the bond market and we feel that
there is still room for interest rates to decline. We are positioned
accordingly. However, first and foremost, we focus on trading and issue
selection expertise to add value each day in order to deliver a safe positive
return to shareholders.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
LIMITED TERM TAX-FREE FUND VS. LEHMAN 3 YEAR MUNICIPAL BOND INDEX ("LEHMAN
INDEX") AND LIPPER SHORT INTERMEDIATE MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The results
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------
LEHMAN LIPPER
I SHARES INDEX AVERAGE
--------- --------- ---------
<S> <C> <C> <C>
ONE YEAR 5.37% 4.82% 4.39%
FIVE YEAR N.A. N.A. N.A.
TEN YEAR N.A. N.A. N.A.
SINCE INCEPTION 9.37% 5.56% 5.23%
INCEPTION DATE 10/1/96 9/30/96 9/30/96
VALUE NOVEMBER 30, 1997 $11,102 $10,654 $10,614
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund Lehman Index Lipper Average
<S> <C> <C> <C>
10/1/96 $10,000 $10,000 $10,000
10/31/96 10,387 10,070 10,066
11/30/96 10,537 10,164 10,166
12/31/96 10,515 10,169 10,160
1/31/97 10,555 10,213 10,191
2/28/97 10,621 10,264 10,247
3/31/97 10,566 10,210 10,179
4/30/97 10,616 10,254 10,216
5/31/97 10,699 10,337 10,300
6/30/97 10,780 10,398 10,368
7/31/97 10,977 10,522 10,502
8/31/97 10,906 10,501 10,469
9/30/97 10,999 10,576 10,541
10/31/97 11,072 10,623 10,582
11/30/97 11,102 10,654 10,614
</TABLE>
Lipper Analytical Services, Inc. is a leading source for mutual fund data.
Although gathered from reliable sources, data accuracy and completeness cannot
be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
8
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
TAX-FREE INCOME FUND MANAGED BY: WILLIAM T. JACKSON
An interview with William T. Jackson
Portfolio Manager of Tax-Free Income Fund
Q. Bill, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 5.86%, compared to a return of 5.44% for the Lipper General Municipal
Debt Funds Average.
Q. What led to the Fund's outperformance?
A. The outperformance is primarily attributable to the Fund having had a longer
duration in the time period than most of the funds in its peer group. This leads
to greater price appreciation in a positive market.
Q. What other strategies have worked well?
A. The Fund has acquired a significant number of long-term non-callable bonds.
Although non-callable bonds typically offer less yield than callable bonds, when
interest rates fall, non-callable bonds offer significantly better price
appreciation. Mortgage-backed callable bonds have also worked well in the Fund.
Q. Will you describe your security selection process?
A. We manage the Fund with a long-term view with respect to how a bond will
perform over significant market moves and position the Fund accordingly. We also
hold high quality securities as we feel the current marketplace is not paying
for credit risk.
Q. What is your outlook for the bond market?
A. We have a positive outlook for the bond market and we feel that there is
still room for interest rates to decline. We are positioned accordingly.
However, first and foremost, we focus on trading and issue selection expertise
to add value each day in order to deliver a superior return to shareholders.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS.THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
TAX-FREE INCOME FUND VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX ("LEHMAN
INDEX") AND
LIPPER GENERAL MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
--------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.56% 5.07% 7.96% 7.05% 6.88%
FIVE YEAR 6.02% N.A. 6.90% 7.71% 6.74%
SINCE INCEPTION 6.42% 5.60% 6.96% 8.38% 7.27%
INCEPTION DATE 8/1/89 8/6/93 8/1/89* 7/31/89 7/31/89
VALUE NOVEMBER 30, 1997 $16,809 $12,662 $17,528 $19,561 $ 17,963
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
8/1/89 $9,600 $10,000 $10,000
Nov-90 10,374 11,150 10,789
Nov-91 11,220 12,269 11,869
Nov-92 12,051 13,491 13,063
Nov-93 13,048 15,066 14,558
Nov-94 12,425 14,391 13,536
Nov-95 14,657 17,060 16,020
Nov-96 15,584 18,273 16,807
Nov-97 16,809 19,561 17,963
</TABLE>
* 8/2/93 was the actual inception date of I Shares of the fund; however,
performance information has been calculated using the inception date of the
initial class of shares. Lipper Analytical Services, Inc. is a leading source
for mutual fund data. Although gathered from reliable sources, data accuracy and
completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
9
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
COLORADO TAX-FREE FUND MANAGED BY: WILLIAM T. JACKSON
An interview with William T. Jackson
Portfolio Manager of Colorado Tax-Free Fund
Q. Bill, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 5.87%, compared to a return of 5.75% for the Lipper Colorado Municipal
Debt Funds Average.
Q. What led to the Fund's performance?
A. The Fund, like the other municipal debt funds we manage, had a long
duration. However, the duration was probably not as long as some of the funds in
the peer group.
Q. What security selection strategies does the Fund employ?
A. Actually, one of the challenges in managing a single state fund is in
finding enough issues to implement market strategies. We manage the Fund with a
long-term view with respect to how a bond will perform over significant market
moves and position the Fund accordingly. We also hold high quality securities as
we feel the current marketplace is not paying for credit risk.
Q. Any other portfolio management strategies?
A. When the market sells off, we intentionally look for opportunities to
realize tax losses in each of the municipal debt funds we manage in an effort to
minimize any taxable event for shareholders.
Q. What is your outlook for the bond market?
A. We have a positive outlook for the bond market and we feel that there is
still room for interest rates to decline. We are positioned accordingly.
However, first and foremost, we focus on trading and issue selection expertise
to add value each day in order to deliver a superior return to shareholders.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
COLORADO TAX-FREE FUND VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX ("LEHMAN
INDEX") AND
LIPPER COLORADO MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
--------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
ONE YEAR 3.87% 5.54% 8.35% 7.05% 7.19%
SINCE INCEPTION 5.61% 5.78% 6.59% 7.10% 6.05%
INCEPTION DATE 6/1/93 8/2/93 6/1/93* 5/31/93 5/31/93
VALUE NOVEMBER 30, 1997 $12,785 $12,756 $13,332 $13,623 $ 13,033
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
6/1/93 $9,600 $10,000 10,000
Nov-94 $9,433 $10,022 9,762
Nov-95 $11,119 $11,881 11,520
Nov-96 $11,812 $12,726 12,127
Nov-97 $12,785 $13,623 13,033
</TABLE>
* 8/23/93 was the actual inception date of I Shares of the Fund; however,
performance information has been calculated using the inception date of the
initial class of shares. Lipper Analytical Services, Inc. is a leading source
for mutual fund data. Although gathered from reliable sources, data accuracy and
completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
10
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND MANAGED BY: PATRICIA D. HOVANETZ
An interview with Patricia D. Hovanetz
Portfolio Manager of Minnesota Intermediate Tax-Free Fund
Q. Pat, the Fund was launched October 1, 1997. How has the Fund performed in
the first two months?
A. For the 2 months ended November 30, 1997, the Fund achieved a cumulative
return of 0.95%, compared to a return of 0.79% for the Lipper Other States
Intermediate Funds Average.
Q. What is the history of the Fund?
A. The Fund was managed as a common trust fund before it converted to a mutual
fund on October 1. The Fund is positioned primarily as a high yield, low
volatility fund due to several old, high coupon positions maturing between 1997
and 2003. Those bonds have virtually no price movement and generate high income.
Q. What is your security selection process for new issues?
A. I utilize a modified barbell approach by offsetting those securities with
little volatility and high yield with securities with greater volatility. I also
think that the Fund is slightly longer in duration than its peer group. The Fund
holds high quality securities and is designed to perform in line in up markets
and outperform in down markets.
Q. What is your outlook for the bond market?
A. I expect rates to further decline gradually. I anticipate low inflation and
moderate growth. The only risk factor in inflation has been wage inflation.
However, thus far it has not materialized. Our outlook and strategy have not
changed and we continue to seek high current income that is exempt from federal
and Minnesota state income taxes (including the alternative minimum tax).
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
[LOGO]
11
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
MINNESOTA TAX-FREE FUND MANAGED BY: PATRICIA D. HOVANETZ
An interview with Patricia D. Hovanetz
Portfolio Manager of Minnesota Tax-Free Fund
Q. Pat, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 5.48%, compared to a return of 5.02% for the Lipper Minnesota
Municipal Debt Funds Average.
Q. What led to the Fund's outperformance versus its peer group?
A. The performance of the Fund is primarily attributable to several decisions I
made in early 1997. We have been anticipating low inflation and moderate growth
in the economy. We therefore look for securities with good convexity, in other
words, securities with more upside than downside potential that are not hampered
by call features. We also believe the Fund is slightly longer in duration than
the peer group which, in the positive market we have experienced, has proven
successful.
Q. How has the supply in the Minnesota bond market been?
A. There has been a decline in issuances in the past year. Therefore, it has
been difficult to add value by utilizing trading techniques. Instead, we have
focused on building a structurally strong portfolio.
Q. What is your outlook for the bond market?
A. I expect rates to further decline gradually. I anticipate low inflation and
moderate growth. The only risk factor in inflation has been wage inflation.
However, thus far it has not materialized. Our outlook and strategy have not
changed and we continue to seek high current income that is exempt from federal
and Minnesota state income taxes.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
MINNESOTA TAX-FREE FUND VS. LEHMAN BROTHERS 10-YEAR MUNICIPAL INDEX ("LEHMAN
INDEX") AND
LIPPER MINNESOTA MUNICIPAL DEBT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
LEHMAN LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 2.66% 4.29% 6.98% 7.05% 6.32%
FIVE YEAR 5.77% N.A. 6.64% 7.71% 6.44%
SINCE INCEPTION 6.53% 5.20% 6.97% 8.61% 7.56%
INCEPTION DATE 1/12/88 8/6/93 1/12/88* 12/31/87 12/31/87
VALUE NOVEMBER 30, 1997 $18,700 $12,460 $19,479 $22,708 $20,558
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C>
1/12/88 $9,600 $10,000 10,000
Nov-88 9,942 10,736 10,924
Nov-89 10,966 11,811 12,028
Nov-90 11,679 12,944 12,837
Nov-91 12,544 14,242 13,959
Nov-92 13,559 15,661 15,215
Nov-93 14,906 17,490 16,910
Nov-94 13,959 16,706 15,782
Nov-95 16,575 19,805 18,483
Nov-96 17,480 21,213 19,335
Nov-97 18,700 22,708 20,558
</TABLE>
* 8/2/93 was the actual inception date of I Shares of the Fund; however,
performance information has been calculated using the inception date of the
initial class of shares. Lipper Analytical Services, Inc. is a leading source
for mutual fund data. Although gathered from reliable sources, data accuracy and
completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
12
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
STRATEGIC INCOME FUND
(PREVIOUSLY CALLED CONSERVATIVE BALANCED FUND)
MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
STRATEGIC INCOME FUND seeks to provide a combination of current income and
capital appreciation by diversifying investment of the Fund's assets among
stocks, bonds and other fixed income instruments through investment in several
equity and fixed income investment styles. In other words, the Fund is designed
for investors seeking to invest in fixed income securities with limited exposure
to equity securities. The Fund has a 80% bond and 20% stock mix and is managed
by multiple managers.
For the six months ended November 30, 1997, the Fund returned 7.63%, compared to
a return of 6.33% to its Benchmark, which represents the appropriate base
allocation percentages applied to the Lipper Universe of the underlying
component portfolios.
The bond market, as measured by the Lehman Brothers Aggregate Bond Index,
returned 6.55% for the six months ending November 30, 1997. Continued moderate
economic growth and low inflation were positives for the bond market during the
past six months.
The stock market continued its breathtaking pace over the past six months with
the Standard & Poor's 500 Index returning 13.58%. A healthy economy, low
inflation, and optimism over corporate earnings prospects helped drive the S&P's
returns.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
STRATEGIC INCOME FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"),
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN INDEX") AND
STRATEGIC INCOME FUND WEIGHTED LIPPER PEER GROUP ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
S&P LEHMAN LIPPER
I SHARES* INDEX INDEX AVERAGE
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ONE YEAR 11.55% 24.22% 6.32% 9.95%
FIVE YEAR 8.80% 19.31% 6.77% 9.29%
SINCE INCEPTION 9.40% 16.79% 8.46% 9.50%
INCEPTION DATE 5/1/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30, 1997 $21,651 $ 37,962 $20,090 $ 21,806
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
FUND S&P INDEX LEHMAN INDEX LIPPER AVERAGE
<S> <C> <C> <C> <C>
4/30/89 $10,000 $10,000 $10,000 10,000
Nov-89 $10,813 $11,413 $10,908 10,825
Nov-90 $11,392 $11,017 $11,779 11,195
Nov-91 $13,034 $13,253 $13,358 12,794
Nov-92 $14,203 $15,697 $14,476 13,963
Nov-93 $15,271 $17,276 $15,883 15,652
Nov-94 $15,455 $17,456 $15,594 15,556
Nov-95 $17,728 $23,904 $17,856 18,099
Nov-96 $19,410 $30,560 $18,896 19,826
Nov-97 $21,651 $37,962 $20,090 21,806
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
13
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
MODERATE BALANCED FUND
MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
MODERATE BALANCED FUND seeks a combination of current income and capital
appreciation by diversifying investment of the Fund's assets among stocks, bonds
and other fixed income investments through investment in several equity and
fixed income investment styles. In other words, the Fund is designed for
investors seeking roughly equivalent exposures to fixed income securities and
equity securities. The Fund has a 60% bond and 40% bond mix and is managed by
multiple managers.
For the six months ended November 30, 1997, the Fund returned 8.24%, compared to
a return of 7.38% to its Benchmark, which represents the appropriate base
allocation percentages applied to the Lipper Universe of the underlying
component portfolios.
The bond market, as measured by the Lehman Brothers Aggregate Bond Index,
returned 6.55% for the past six months. Continued moderate economic growth and
low inflation were positives for the bond market during this period.
The stock market continued its record-setting climb this past six months with
the Standard & Poor's 500 Index returning 13.58% for the six months ending
November 30, 1997. A healthy economy, low inflation, and optimism over corporate
earnings prospects helped drive the S&P's returns.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
MODERATE BALANCED FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"),
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN INDEX") AND
MODERATE BALANCED FUND WEIGHTED LIPPER PEER GROUP ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
S&P LEHMAN LIPPER
I SHARES* INDEX INDEX AVERAGE
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ONE YEAR 13.92% 24.22% 6.32% 12.28%
FIVE YEAR 10.55% 19.31% 6.77% 11.30%
SINCE INCEPTION 11.05% 16.79% 8.46% 10.88%
INCEPTION DATE 5/1/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30, 1997 $24,611 $ 37,962 $20,090 $ 24,297
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index Lehman Index Lipper Average
<S> <C> <C> <C> <C>
4/30/89 $10,000 $10,000 $10,000 $10,000
11/89 11,105 11,413 10,908 10,894
11/90 11,529 11,017 11,779 11,033
11/91 13,501 13,253 13,358 12,834
11/92 14,896 15,697 14,476 14,200
11/93 16,131 17,276 15,883 16,292
11/94 16,351 17,456 15,594 16,201
11/95 19,323 23,904 17,856 19,306
11/96 21,604 30,560 18,896 21,633
11/97 24,611 37,962 20,090 24,297
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
14
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
GROWTH BALANCED FUND
MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
GROWTH BALANCED FUND seeks a combination of current income and capital
appreciation by diversifying investment of the Fund's assets between stocks and
bonds through investment in several equity and fixed income investment styles.
In other words, the Fund is designed for investors seeking long-term capital
appreciation in the equity securities market in a balanced fund. The Fund has a
65% stock and 35% bond mix and is managed by multiple managers.
For the six months ended November 30, 1997, the Fund returned 9.81%, compared to
a return of 9.02% to its Benchmark, which represents the appropriate base
allocation percentages applied to the Lipper Universe of the underlying
component portfolios.
The stock market continued reaching new heights this past six months with the
Standard & Poor's 500 Index returning 13.58% for the six months ending November
30, 1997. A healthy economy, low inflation, and optimism over corporate earnings
prospects helped drive the S&P's returns.
The bond market, as measured by the Lehman Brothers Aggregate Bond Index,
returned 6.55% this past six months. Continued moderate economic growth and low
inflation were positives for the bond market during this period.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
GROWTH BALANCED FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"), LEHMAN
BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE INDEX ("LEHMAN INDEX"), GROWTH
BALANCED FUND WEIGHTED LIPPER PEER GROUP ("LIPPER GB AVERAGE") LIPPER BALANCED
FUND AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
S&P LEHMAN LIPPER GB LIPPER
I SHARES* INDEX INDEX AVERAGE AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 18,12% 24.22% 6.32% 16.14% 16.10%
FIVE YEAR 13.36% 19.31% 6.77% 14.61% 13.18%
SINCE INCEPTION 13.01% 16.79% 8.46% 13.07% 12.25%
INCEPTION DATE 5/1/89 4/30/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30, 1997 $28,609 $ 37,962 $20,090 $28,731 $ 26,989
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index Lehman Index Lipper GB Average Lipper Average
<S> <C> <C> <C> <C> <C>
4/30/89 $10,000 $10,000 $10,000 $10,000 $10,000
Nov-89 $11,018 $11,413 $10,908 $11,000 $10,971
Nov-90 $11,160 $11,017 $11,779 $10,756 $10,806
Nov-91 $13,580 $13,253 $13,358 $12,839 $12,870
Nov-92 $15,281 $15,697 $14,476 $14,508 $14,708
Nov-93 $16,682 $17,276 $15,883 $17,244 $16,287
Nov-94 $16,929 $17,456 $15,594 $17,203 $15,999
Nov-95 $20,815 $23,904 $17,856 $21,272 $19,965
Nov-96 $24,220 $30,560 $18,896 $24,732 $23,215
Nov-97 $28,609 $37,962 $20,090 $28,731 $26,989
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
15
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
INDEX FUND CO-MANAGED BY: DAVID D. SYLVESTER AND LAURIE R. WHITE
An interview with Laurie R. White
Portfolio Manager of Index Fund
Q. Laurie, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 13.42%, compared to a return of 13.24% for the Lipper S&P 500 Index
Funds Average.
Q. What contributed to the Fund's performance?
A. Our mandate is to completely replicate the S&P 500 Index. To accomplish this
goal we purchase all of the securities in the Index within the proper
weightings.
Q. Is the Fund fully invested?
A. We keep a portion of the Fund in cash in order to handle purchases and
redemptions without requiring us to execute stock transactions. We reduce the
drag of cash by hedging our cash position by investing in S&P futures contracts.
This effectively gives us a 100% equity position.
Q. Do you consider management of the Fund to be active or passive management?
A. Since the management of the Fund is based completely on replicating of the
S&P 500 Index, we consider management of the Fund to be passive. The only active
management involves the cash position.
Q. Would you like to comment on your outlook?
A. Since the Fund mimics the S&P 500 Index, our outlook does not have any
impact on the Fund's performance at all. We believe that our careful replication
and active management of the cash position will allow the Fund to continue to
perform in line with the Index.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INDEX FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LIPPER STANDARD & POOR'S 500 INDEX OBJECT AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
LIPPER
I SHARES* S&P INDEX AVERAGE
---------- ---------- ----------
<S> <C> <C> <C>
ONE YEAR 28.14% 24.22% 27.80%
FIVE YEAR 19.42% 19.31% 19.60%
TEN YEAR 18.07% 18.27% 17.92%
VALUE NOVEMBER 30, 1997 $52,731 $ 53,626 $ 52,344
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
11/30/88 $12,234 $12,328 $12,180
11/30/89 $15,891 $16,122 $15,795
11/30/90 $15,255 $15,564 $15,222
11/30/91 $18,307 $18,722 $18,208
11/30/92 $21,697 $22,175 $21,447
11/30/93 $23,681 $24,405 $23,494
11/30/94 $23,880 $24,660 $23,644
11/30/95 $32,337 $33,768 $32,207
11/30/96 $41,150 $43,170 $40,965
11/30/97 $52,731 $53,626 $52,344
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a collective
trust fund with investment objectives and policies substantially the same as
those of the Fund. Performance information includes the performance of the
predecessor collective trust fund for periods before it became a mutual fund on
November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
16
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
INCOME EQUITY FUND MANAGED BY: DAVID L. ROBERTS
An interview with David L. Roberts
Portfolio Manager of Income Equity Fund
Q. Dave, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 12.84%, compared to a return of 12.48% for the Lipper Equity Income
Funds Average.
Q. What led to the Fund's performance?
A. Our energy exposure contributed positively to the performance of the Fund
over the period. We also have a low technology exposure. Right now, we are at a
maximum underweight in technology because the group does not currently have the
characteristics we look for.
Q. Do you anticipate changing sector weightings going forward?
A. No, for the most part, our sector weightings have been successful and we
expect more of the same going forward. We currently have an emphasis on capital
goods and consumer cyclicals such as retail stocks. We also have an emphasis on
utility securities as that group has been greatly undervalued. We have benefited
from the recent rise of electrical utilities stock prices as the industry is
currently undergoing deregulation.
Q. The turnover of the Fund is low, at approximately 10%. Is this a
characteristic of equity income funds or is this your personal investment style?
A. It is attributable to our investment style. We look for companies that will
deliver long-term positive returns. We also look for non-cyclical, stable names
that can deliver consistent dividend growth.
Q. What is your outlook for the market?
A. We are positive on the market and the Fund's current positioning. The Fund
has performed well, particularly in a strong stock market. We do, however, have
a defensive position with an emphasis on energy and capital goods. We especially
like US companies with global exposure going forward.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INCOME EQUITY FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LIPPER EQUITY INCOME AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------
S&P LIPPER
A SHARES* B SHARES I SHARES* INDEX AVERAGE
--------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
ONE YEAR 16.56% 19.39% 23.30% 24.22% 23.99%
FIVE YEAR 17.52% N.A. 18.85% 19.31% 16.84%
SINCE INCEPTION 16.33% 21.75% 17.09% 17.30% 14.55%
INCEPTION DATE 3/31/89 5/2/96 3/31/89 3/31/89 3/31/89
VALUE NOVEMBER 30, 1997 $37,147 $13,964 $39,310 $ 39,930 $ 32,504
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index Lipper Average
<S> <C> <C> <C>
3/31/89 $10,000 $10,000 $10,000
11/89 11,850 12,004 11,333
11/90 11,928 11,589 10,364
11/91 14,239 13,941 12,486
11/92 16,567 16,511 14,600
11/93 17,827 18,172 16,733
11/94 18,563 18,362 16,580
11/95 25,402 25,144 21,271
11/96 31,882 32,145 26,137
11/97 39,310 39,930 32,504
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a
collective trust fund with investment objectives and policies substantially the
same as those of the Fund. Performance information includes the performance of
the predecessor collective trust fund for periods before it became a mutual fund
on November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
17
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
VALUGROWTH-SM- STOCK FUND MANAGED BY: DAVID S. LUNT
An interview with David S. Lunt
One of the Portfolio Managers of ValuGrowth-SM- Stock Fund
Q. Dave, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 8.85%, compared to a return of 12.38% for the Lipper Growth Funds
Average.
Q. What led to the Fund's performance?
A. The underperformance of the Fund relative to its peer group in the past six
months is attributable largely to the style of the Fund. The Fund's emphasis on
growth and large capitalization companies caused the Fund to underperform in a
period where value outperformed growth securities and small-to mid-cap
securities outperformed large-cap securities. Additionally, the Fund held stock
in several companies which announced disappointing earnings in the time period,
resulting in a decline in their stock prices in a jittery market.
Q. Could you describe your current sector weightings?
A. In the current market, we have taken a relatively defensive position. We
expect earnings growth and the economy to slow. We are therefore interested in
securities with which we have a high level of comfort. We anticipate interest
rates will come down from current levels and that the financial sector will
benefit from that. We would like to have more portfolio exposure in consumer
staples but are currently having trouble finding value within the sector.
Q. What is your outlook for the market?
A. The market has seen a great deal of volatility. Good opportunities disappear
quickly. I expect more of the same going forward. I believe that earnings
expectations are high. We are therefore taking some of the cyclicality out of
the portfolio and anticipate that our style will do well in the volatile
environment we foresee.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
VALUGROWTH-SM- STOCK FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LIPPER GROWTH AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------
S&P LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
--------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C>
ONE YEAR 13.01% 15.71% 19.54% 24.22% 22.00%
FIVE YEAR 11.94% N.A. 13.15% 19.31% 16.55%
SINCE INCEPTION 13.25% 14.17% 13.87% 17.56% 16.15%
INCEPTION DATE 1/8/88 8/5/93 1/8/88* 12/31/87 12/31/87
VALUE NOVEMBER 30, 1997 $34,279 $17,960 $36,188 $49,835 $44,034
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
1/8/88 $9,450 $10,000 $10,000
Nov-88 9,622 11,456 11,181
Nov-89 12,317 14,982 14,473
Nov-90 11,958 14,463 13,539
Nov-91 15,048 17,399 17,243
Nov-92 18,429 20,607 20,421
Nov-93 18,887 22,680 22,425
Nov-94 18,819 22,916 22,477
Nov-95 23,487 31,381 29,633
Nov-96 28,660 40,118 36,131
Nov-97 34,279 49,835 44,034
</TABLE>
* 8/2/93 was the actual inception date of I Shares of the Fund; however,
performance information has been calculated using the inception date of the
initial class of shares. Lipper Analytical Services, Inc. is a leading source
for mutual fund data. Although gathered from reliable sources, data accuracy and
completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
18
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
DIVERSIFIED EQUITY FUND
MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
DIVERSIFIED EQUITY Q&A seeks long-term capital appreciation while moderating
annual return volatility by diversifying its investments among five different
equity investment styles.
The Fund follows a "multi-style" approach designed to minimize the volatility
and risk of investing in equity securities. The Fund's portfolio combines five
different equity investment styles: (i) an index style; (ii) an income equity
style; (iii) a large company style; (iv) small company styles; and (v) an
international style. In addition, the Fund allocates the assets dedicated to
small company investments to four distinct small company investment styles.
For the six months ended November 30, 1997, the Fund returned 10.74%, compared
to a return of 10.62% to its Benchmark, which represents the appropriate base
allocation percentages applied to the Lipper Universe of the underlying
component portfolios.
The stock market continued breaking record ground this past six months with the
Standard & Poor's 500 Index returning 13.58% for the six months ending November
30, 1997. A healthy economy, low inflation, and optimism over corporate earnings
prospects helped drive the S&P's returns. Small stocks provided equivalent
returns over the period as reflected by the six month return of the Russell 2000
Index of 13.80%. However, international stocks did not fare well during this
period.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
DIVERSIFIED EQUITY FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX"),
DIVERSIFIED EQUITY FUND WEIGHTED LIPPER PEER GROUP ("LIPPER DE AVERAGE") AND
LIPPER GROWTH & INCOME AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------------
S&P LIPPER DE LIPPER
A SHARES* B SHARES I SHARES* INDEX AVERAGE AVERAGE
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ONE YEAR 15.89% 18.72% 22.61% 24.22% 21.35% 23.50%
FIVE YEAR 16.20% N.A. 17.52% 19.31% 18.85% 17.43%
SINCE INCEPTION 16.31% 20.66% 17.05% 17.68% 16.25% 15.74%
INCEPTION DATE 1/1/89 5/6/96 1/1/89 12/31/88 12/31/88 12/31/88
VALUE NOVEMBER 30, 1997 $38,515 $13,732 $40,747 $42,755 $38,326 $36,843
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index Lipper DE Average Lipper Average
<S> <C> <C> <C> <C>
12/31/88 $10,000 $10,000 $10,000 $10,000
Nov-89 12,622 12,854 12,303 12,210
Nov-90 12,337 12,408 11,470 11,494
Nov-91 15,762 14,927 14,005 13,902
Nov-92 18,171 17,679 16,150 16,401
Nov-93 19,989 19,457 19,888 18,237
Nov-94 20,571 19,661 20,198 18,308
Nov-95 27,067 26,922 25,817 23,913
Nov-96 33,233 34,418 31,580 29,759
Nov-97 40,747 42,755 38,326 36,843
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a collective
trust fund with investment objectives and policies substantially the same as
those of the Fund. Performance information includes the performance of the
predecessor collective trust fund for periods before it became a mutual fund on
November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
19
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (unaudited)
(continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
GROWTH EQUITY FUND MANAGED BY: NORWEST INVESTMENT MANAGEMENT--MULTIPLE MANAGERS
GROWTH EQUITY FUND seeks a high level of long-term capital appreciation while
moderating annual return volatility by diversifying its investments among three
different equity investment styles.
The Fund follows a "multi-style" approach designed to reduce the volatility and
risk of investing in equity securities. The Fund's portfolio combines three
different equity investment styles: (i) a large company growth style; (ii) small
company styles; and (iii) an international style. In addition, the Fund
allocates the assets dedicated to small company investments to four distinct
small company investment styles.
For the six months ended November 30, 1997, the Fund returned 8.96%, compared to
a return of 8.71% to its Benchmark, which represents the appropriate base
allocation percentages applied to the Lipper Universe of the underlying
component portfolios.
The stock market forged into record territory this past year with the Standard &
Poor's 500 Index returning 13.58% for the six months ending November 30, 1997. A
healthy economy, low inflation, and optimism over corporate earnings prospects
helped drive the S&P's returns. Small stocks provided equivalent returns over
the period as reflected by the six month return of the Russell 2000 Index of
13.80%. However, international stocks did not fare well during this period.
THE COMPOSITION, INDUSTRIES AND HOLDINGS OF EACH STYLE ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
GROWTH EQUITY FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
GROWTH EQUITY FUND WEIGHTED LIPPER PEER GROUP ("LIPPER GE AVERAGE") AND
LIPPER GROWTH AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------------
LIPPER GE LIPPER
A SHARES* B SHARES I SHARES* S&P INDEX AVERAGE AVERAGE
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ONE YEAR 12.71% 15.36% 19.25% 24.22% 16.67% 22.00%
FIVE YEAR 15.09% N.A. 16.41% 19.31% 15.80% 16.55%
SINCE INCEPTION 15.62% 14.50% 16.38% 16.79% 13.60% 15.30%
INCEPTION DATE 5/1/89 5/6/96 5/1/89 4/30/89 4/30/89 4/30/89
VALUE NOVEMBER 30, 1997 $34,800 $12,685 $36,826 $ 37,962 $29,913 $ 33,990
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index Lipper GE Average Lipper Average
<S> <C> <C> <C> <C> <C>
4/30/89 $10,000 $10,000 $10,000 $10,000
11/89 11,246 11,413 10,947 11,172
11/90 10,868 11,017 10,001 10,451
11/91 15,024 13,253 12,637 13,310
11/92 17,224 15,697 14,372 15,763
11/93 19,900 17,276 16,805 17,310
11/94 20,481 17,456 17,378 17,350
11/95 26,064 23,904 21,477 22,874
11/96 30,881 30,560 25,637 27,890
11/97 36,826 37,962 29,913 33,990
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a collective
trust fund with investment objectives and policies substantially the same as
those of the Fund. Performance information includes the performance of the
predecessor collective trust fund for periods before it became a mutual fund on
November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data and completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
20
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
LARGE COMPANY GROWTH FUND MANAGED BY: JOHN S. DALE
An interview with John S. Dale
Portfolio Manager of Large Company Growth Fund
Q. John, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 15.26%, compared to a return of 12.38% for the Lipper Growth Funds
Average.
Q. What contributed to the Fund's performance?
A. Our emphasis on pure growth securities led to the outperformance of the Fund
versus its Lipper peer group. Our outperformance was not attributable to active
trading in the Fund. In the latter half of the period we had no new purchases or
sales in the portfolio. The earnings growth of our securities continues to be in
the 24%-25% range, which is quite high.
Q. Could you describe your stock selection strategy?
A. Our investment philosophy centers around finding needles in haystacks. We
are looking for great secular long-term growth companies that can grow earnings
at a minimum of 50% faster than the average company from a normalized earnings
base beyond an economic cycle.
Q. The average annual turnover rate for the past 5 years in this Fund is 29%.
How does this compare to your peers?
A. We make long-term commitments to the companies in which we invest. Our
portfolio turnover averages below 30% compared to the 91% annual rate of
turnover experienced by general equity funds in the first half of 1997.
Q. The Fund is heavily weighted in technology, financials and consumer
cyclicals. Is the Fund managed by sector?
A. No, not at all. All of our security selections are bottom-up. There are a
lot of technology, healthcare and financial services companies that meet our
high unit volume growth criteria. We do not own many consumer durables because
they do not meet our growth criteria.
Q. What is your outlook for the market?
A. Average earnings growth is slowing. Recent markets have seen unusually
strong profit growth due to corporate America expanding margins. We expect
profit growth to now grow in line with revenue growth. We will continue to focus
on companies with future earnings potential of at least 50% that are not
dependent on cost cutting strategies.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
LARGE COMPANY GROWTH FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX") AND
LIPPER GROWTH AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------
LIPPER
I SHARES* S&P INDEX AVERAGE
----------- ----------- -----------
<S> <C> <C> <C>
ONE YEAR 29.40% 24.22% 22.00%
FIVE YEAR 15.89% 19.31% 16.55%
TEN YEAR 17.92% 18.27% 16.76%
VALUE NOVEMBER 30, 1997 $52,057 $53,626 $47,988
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND S&P INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
Nov-88 $10,824 $12,328 $12,186
Nov-89 $14,126 $16,122 $15,773
Nov-90 $14,221 $15,564 $14,755
Nov-91 $21,373 $18,722 $18,791
Nov-92 $24,890 $22,175 $22,255
Nov-93 $24,311 $24,405 $24,439
Nov-94 $24,301 $24,660 $24,495
Nov-95 $32,751 $33,768 $32,295
Nov-96 $40,228 $43,170 $39,375
Nov-97 $52,057 $53,626 $47,988
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a collective
trust fund with investment objectives and policies substantially the same as
those of the Fund. Performance information includes the performance of the
predecessor collective trust fund for periods before it became a mutual fund on
November 11, 1994. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data and completeness cannot be guaranteed.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
21
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
SMALL COMPANY STOCK FUND MANAGED BY: KIRK MCCOWN
An interview with Kirk McCown
Portfolio Manager of Small Company Stock Fund
Q. Kirk, how has the Fund performed?
A. For the six months ended November 30, 1997, the Fund achieved a cumulative
return of 6.36%, compared to a return of 12.67% for the Lipper Small Cap Funds
Average.
Q. What contributed to the Fund's performance?
A. The Fund performed fairly well in the summer but suffered in October and
November. The smaller the stock category, the worse it performed during this
time period. Being the smallest of the small cap managers in terms of companies
we work on contributed to the performance.
Q. What performed well over the summer?
A. Technology in particular, as well as finance and energy.
Q. Can you describe your style of stock selection?
A. We search for growth at a reasonable price. We compare the companies we are
interested in by peer groups. Often, we don't look for companies that have the
highest growth rates as they are generally too expensive. We also don't want the
stocks with the lowest value of the peer group, they usually deserve to have the
lowest value because their growth rate isn't there. We are trying to find
companies that we believe are undervalued based on their historical and future
growth rate and who are unrecognized by others. In addition, we have started to
use a system where we set the maximum and minimum percentage of stocks we will
own in a sector for each S&P 600 Small Cap Index sector. By eliminating
overweight and underweight positions by sector, we believe volatility and
turnover will be reduced. It will also allow us to focus on what we do best,
which is to pick stocks versus the index.
Q. What is your outlook?
A. Our outlook is very positive on the small cap world, as positive as we have
been in some number of years. Valuations are historically compelling relative to
large caps. The earnings growth rate looks to be exceptional for small caps. We
are fully invested looking forward to a very good 1998. We are finding lots of
bargains at reasonable prices. However, until the fear of financial instability
in Asia recedes, we think small caps will be hard pressed to outperform as money
will flow to more liquid investments.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL COMPANY STOCK FUND VS. RUSSELL 2000 INDEX ("RUSSELL INDEX") AND
LIPPER SMALL CAP AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------------
RUSSELL LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 7.47% 9.88% 13.71% 23.16% 21.00%
SINCE INCEPTION 13.00% 13.41% 14.52% 14.99% 17.51%
INCEPTION DATE 12/31/93 12/31/93 12/31/93 12/31/93 12/31/93
VALUE NOVEMBER 30, 1997 $16,145 $16,580 $17,015 $17,293 $18,826
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND RUSSELL INDEX LIPPER AVERAGE
<S> <C> <C> <C>
12/31/93 $9,450 $10,000 $10,000
Nov-94 9,333 9,447 9,727
Nov-95 11,627 12,051 12,882
Nov-96 14,197 14,041 15,484
Nov-97 16,145 17,293 18,826
</TABLE>
Lipper Analytical Services, Inc. is a leading source for mutual fund data.
Although gathered from reliable sources, data and completeness cannot be
guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF A SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
THE RISKS INVOLVED IN SEEKING CAPITAL APPRECIATION FROM INVESTMENTS PRINCIPALLY
IN COMPANIES WITH SMALL MARKET CAPITALIZATION ARE SET FORTH IN THE PROSPECTUS.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
22
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH FUND MANAGED BY: PAUL VON KUSTER
An interview with Paul von Kuster
Portfolio Manager of Small Company Growth Fund
Q. Paul, how has the Fund performed?
A. For the six months ended November 30, 1997, the Fund achieved a cumulative
return of 19.45%, compared to a return of 15.55% for the Lipper Small Cap Funds
Average.
Q. What led to the Fund outperforming its Lipper peer group?
A. The Discovery phase stocks rallied very sharply, up 23%, while the
Overlooked phase stocks were up about 17% over six months. Small, rapidly
growing stocks, such as we own in the Fund's Discovery phase segment, were the
most undervalued going into the time period and performed very well.
Q. How does the Fund compare to the general market?
A. Our Fund has a 24% projected earnings growth rate over the next 3-5 years as
opposed to the general stock market which has a 7% projected growth rate. Our
Fund is trading at about 16 times next year's earnings compared to about 22
times for the market. The price/earnings ratio for the market is 3 times its
growth rate while our price/earnings ratio is a fraction of its growth rate. The
Fund's growth to price/earnings ratio of 1.5, versus 0.3 of the general market,
indicates that we have five times the value in our small stocks. This is a good
illustration of an important component of our buy disciplines: buying stocks
with excellent growth prospects that are selling at comparatively low
price/earnings ratios.
Q. Have you repositioned the Fund at all with the volatility of the market?
A. We have stayed fully invested and taken advantage of the weakness seen in
small stocks. We have moved into companies with what we consider to be excellent
earnings visibility at very reasonable and inexpensive valuations. Also, in
October and November, we cut back on our energy holdings and then replaced some
of those cuts as the stocks corrected.
Q. What is your outlook for small stocks?
A. We expect small stocks to outperform the general market. In the wake of the
October correction, large stocks recovered while small stocks did not. As a
result, relative valuations are more attractive, approaching low levels that
have marked significant outperformance in the past. Small companies are
continuing to report good earnings while large companies' earnings gains are
slowing. Attractively valued with superior earnings gains, small stocks should
be a highly attractive area for investors.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL COMPANY GROWTH FUND VS. RUSSELL 2000 INDEX ("RUSSELL INDEX")
AND LIPPER SMALL CAP AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------
RUSSELL LIPPER
I SHARES* INDEX AVERAGE
---------- ---------- ----------
<S> <C> <C> <C>
ONE YEAR 26.59% 23.16% 21.00%
FIVE YEAR 20.70% 15.90% 16.97%
TEN YEAR 24.01% 14.98% 18.03%
VALUE NOVEMBER 30, 1997 $86,105 $40,432 $55,209
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND RUSSELL INDEX LIPPER AVERAGE
<S> <C> <C> <C>
Nov-87 $10,000 $10,000 $10,000
Nov-88 $12,042 $12,712 $12,621
Nov-89 $16,711 $15,053 $16,131
Nov-90 $15,989 $11,539 $13,864
Nov-91 $26,514 $15,956 $19,814
Nov-92 $33,604 $19,327 $24,155
Nov-93 $40,949 $22,641 $28,147
Nov-94 $39,663 $22,089 $28,526
Nov-95 $57,855 $28,175 $37,777
Nov-96 $68,021 $32,829 $45,409
Nov-97 $86,105 $40,432 $55,209
</TABLE>
* Prior to November 11, 1994, Norwest Investment Management managed a collective
trust fund with investment objectives and policies substantially the same as
those of the Fund. Performance information includes the performance of the
predecessor collective trust fund for periods before it became a mutual fund on
November 11, 1994. The collective trust fund performance was adjusted to reflect
the Fund's 1994 estimate of its expense ratio for the first year of operations
as a mutual fund. The collective trust fund was not registered under the
Investment Company Act of 1940 (the "1940 Act") or subject to certain investment
restrictions that are imposed by the 1940 Act. If the collective trust fund had
been registered under the 1940 Act, the collective trust fund historical return
may have been adversely affected. Index returns do not reflect expenses, which
have been deducted from the Fund's return. Lipper Analytical Services, Inc. is a
leading source for mutual fund data. Although gathered from reliable sources,
data accuracy and completeness cannot be guaranteed.
THE RISKS INVOLVED IN SEEKING CAPITAL APPRECIATION FROM INVESTMENTS PRINCIPALLY
IN COMPANIES WITH SMALL MARKET CAPITALIZATION ARE SET FORTH IN THE PROSPECTUS.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
23
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
SMALL CAP OPPORTUNITIES FUND MANAGED BY: FARIBA TALEBI
An interview with Fariba Talebi
Portfolio Manager of Small Cap Opportunities Fund
Q. Fariba, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of 14.67%, compared to a return of 15.55% for the Lipper Small Cap Funds
Average.
Q. What contributed to the Fund's performance?
A. During the summer months, the technology sector was one of the best
performing sectors. We were not as heavily weighted as some of our peers in
technology which hurt our relative performance somewhat during this particular
time period. We have not found a great deal of value in the fundamentals of
individual names within the technology sector and indeed, recently, the problems
in Asia have had a negative impact on the technology sector. The sectors that
have worked well have been our exposure to energy, financials and individual
healthcare securities. Our underweighting in utilities and consumer staples has
hurt the Fund on a relative basis as well.
Q. Could you describe your security selection process?
A. We are very much bottom-up stock pickers. We strive to select quality
securities with high earnings visibility. We search for profitable companies
with dominant market positions and a
well-defined growth strategy. In our valuation analysis, we look for companies
with an earnings multiple that is at a discount to its earnings growth rate.
Q. The small capitalization universe staged a brief rebound before it pulled
back again in recent months. What do you see for the future of small cap
securities?
A. We have seen underperformance of the small cap sector since the problems in
Asia increased market volatility. As the small cap securities are often less
liquid, this is not unusual in such circumstances. Fundamentals in the small cap
universe however, have improved over the past several months. Smaller company
earnings look better than larger company earnings. We think that going forward,
we have a positive environment for small capitalization investors. We will
remain focused on our research-intensive individual stock selection,
concentrating on underfollowed and misunderstood companies that can offer
superior earnings growth.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
SMALL CAP OPPORTUNITIES FUND VS. RUSSELL 2000 INDEX ("RUSSELL INDEX") AND
LIPPER SMALL CAP AVERAGE ("LIPPER INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
RUSSELL LIPPER
A SHARES B SHARES I SHARES INDEX AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR 20.82% 23.91% 27.84% 23.16% 21.00%
SINCE INCEPTION 24.11% 24.92% 25.75% 15.82% 18.44%
INCEPTION DATE 8/1/93 11/8/96 8/1/93 7/31/93 7/31/93
VALUE NOVEMBER 30, 1997 $25,518 $12,968 $27,015 $ 18,912 $ 20,842
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND RUSSELL INDEX LIPPER AVERAGE
<S> <C> <C> <C>
8/1/93 $10,000 $10,000 $10,000
Nov-94 11,384 10,332 10,769
Nov-95 16,671 13,179 14,261
Nov-96 21,133 15,356 17,142
Nov-97 27,015 18,912 20,642
</TABLE>
Lipper Analytical Services, Inc. is a leading source for mutual fund data.
Although gathered from reliable sources, data accuracy and completeness cannot
be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
THE RISKS INVOLVED IN SEEKING CAPITAL APPRECIATION FROM INVESTMENTS PRINCIPALLY
IN COMPANIES WITH SMALL MARKET CAPITALIZATION ARE SET FORTH IN THE PROSPECTUS.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
24
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
CONTRARIAN STOCK FUND MANAGED BY: LOU SCHREUR
An interview with Lou Schreur
Portfolio Manager of Contrarian Stock Fund
Q. Lou, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund achieved a cumulative
return of (0.04%), compared to a return of 12.16% for the Lipper Growth & Income
Funds Average.
Q. What led to the Fund's underperformance?
A. The Fund is positioned for a strong domestic economy and a stable global
economy. We have emphasized basic industry commodity companies. In the first
half of the year, this strategy worked well. However, when the problems in the
Pacific Rim developed, these stocks were among the worst of the casualties.
Q. Have you changed the composition of the Fund?
A. When the problems in the Pacific Rim developed, we moved out of some of our
basic industry positions; however, our weighting was still large enough to hurt
performance.
Q. Could you describe the Fund's investment strategy?
A. Our Fund has a value orientation with a contrarian approach. We invest in
price depressed, undervalued companies. This strategy has not worked well in the
market we've seen over the past 5 years, but going forward, we believe that
people will buy into the increasingly visible earnings power of these
securities.
Q. What is your outlook for the stock market?
A. We are positive on the market. We believe the market is strong and do not
expect to see a recession any time soon.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE RESPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
CONTRARIAN STOCK FUND VS. STANDARD & POOR'S 500 INDEX ("S&P INDEX")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. PAST PERFORMANCE
IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN
-----------------------
I SHARES S&P INDEX
---------- ----------
<S> <C> <C>
ONE YEAR 16.48% 24.22%
SINCE INCEPTION 8.77% 21.86%
INCEPTION DATE 12/31/93 12/31/93
VALUE NOVEMBER 30, 1997 $13,904 $21,711
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
Fund S&P Index
<S> <C> <C>
12/31/93 $10,000 $10,000
11/94 9,981.65 9,983.68
11/95 11,596.14 13,671.11
11/96 11,937.23 17,477.79
11/97 13,903.87 21,710.96
</TABLE>
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES. ON MAY 30, 1997,
A AND B SHARES CLOSED.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
25
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
INTERNATIONAL FUND MANAGED BY: MICHAEL PERELSTEIN
An interview with Michael Perelstein
Portfolio Manager of International Fund
Q. Michael, how has the Fund performed?
A. For the 6 months ended November 30, 1997, the Fund's cumulative return was
(5.77%), compared to a return of (2.92%) for the Lipper International Funds
Average.
Q. What led to the Fund's underperformance?
A. The Fund performed quite well in May, June and July due to its Japanese
exposure. In mid-July and into August, the Asian problems began. At that time,
we did not view the events as a temporary market correction, but as an
indication of severe economic dislocation in a number of the countries. We
reduced our holdings in Malaysia, Hong Kong, the Philippines and Indonesia,
which has paid off. We were overexposed to the region going into the situation
but moved quickly and by October had positioned the Fund more defensively.
Q. What do your country weightings look like?
A. Our largest exposure is in Continental Europe, where we anticipate the best
earnings momentum. Although valuations are somewhat extended, they are not as
extended as other markets. More importantly, they are in what traditionally has
been the best part of the cycle, an environment where they have just moved from
recovery to expansion and earnings still look pretty good going forward. Also,
arguably, Continental Europe is less exposed to Asian difficulties than many
other markets. We have been extremely selective in Asia, with a low position in
Japan. We have no exposure in Hong Kong as we feel that there is more currency
turbulence ahead there. We do not, however, take large regional positions and
are very much bottom-up stock pickers.
Q. What is your outlook for the market?
A. We believe that the markets will remain stormy for the next three to six
months. We have a 13% cash position which is extremely conservative for this
Fund. This is a highly unusual time in the international marketplace. We are
proceeding with a high level of caution and are seeking high quality companies
about whose earning prospects we are very confident.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
THE PERFORMANCE REPRESENTS INFORMATION OF I SHARES. PAST PERFORMANCE IS NOT
INDICATIVE OF FUTURE RESULTS.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
INTERNATIONAL FUND VS. MSCI EAFE INDEX ("INDEX") AND
LIPPER INTERNATIONAL AVERAGE ("LIPPER AVERAGE")
- --------------------------------------------------------------------------------
The following chart reflects the value of a $10,000 investment in the Fund,
including reinvested dividends and distributions, over the past 10 fiscal year
periods or since inception (for funds lacking 10-year records). The result is
compared with a broad-based average or index. The Index excludes the effect of
any fees or sales charges. Lipper performance averages are calculated by taking
an arithmetic average of the returns of the funds in the group. Investment
return and principal value of an investment in the Fund will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. PAST PERFORMANCE IS NOT PREDICTIVE NOR A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
LIPPER
A SHARES* B SHARES I SHARES* INDEX AVERAGE
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ONE YEAR (3.40)% (1.61)% 2.13% (0.40)% 4.88%
FIVE YEAR 11.85% N.A. 13.12% 11.26% 12.32%
TEN YEAR 9.12% N.A. 9.73% 6.43% 9.64%
SINCE INCEPTION N.A. 6.17% N.A. N.A. N.A.
INCEPTION DATE N.A. 5/12/95 N.A. N.A. N.A.
VALUE NOVEMBER 30, 1997 $25,340 $11,955 $25,337 $18,667 $ 24,958
</TABLE>
<TABLE>
<CAPTION>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND INDEX LIPPER AVERAGE
<S> <C> <C> <C>
11/30/87 $10,000 $10,000 $10,000
Nov-88 12,644 13,133 12,259
Nov-89 14,876 14,078 14,223
Nov-90 13,738 10,996 13,379
Nov-91 13,800 11,913 14,423
Nov-92 13,667 10,947 14,294
Nov-93 17,908 13,607 17,961
Nov-94 20,399 15,622 19,666
Nov-95 21,896 16,805 20,716
Nov-96 24,808 18,741 23,815
Nov-97 25,337 18,912 24,958
</TABLE>
* Performance information includes the performance of the Fund's predecessor
collective trust fund for periods before the Fund's registration statement
became effective on November 11, 1994. Performance reflects the historic
performance of the mutual fund in which the collective trust invested, which is
managed by Schroder Capital Management International Inc. Performance has been
adjusted to reflect the fees and expenses of the fund, which are higher than the
fees and expenses of the predecessor collective trust fund during those periods.
The collective trust fund was not registered under the Investment Company Act of
1940 (the "1940 Act") or subject to certain investment restrictions that are
imposed by the 1940 Act. If the collective trust fund had been registered under
the 1940 Act, the collective trust fund historical return may have been
adversely affected. Index returns do not reflect expenses, which have been
deducted from the Fund's return. Lipper Analytical Services, Inc. is a leading
source for mutual fund data. Although gathered from reliable sources, data
accuracy and completeness cannot be guaranteed.
THE ABOVE GRAPH REPRESENTS PERFORMANCE INFORMATION OF I SHARES (THE SOLE CLASS
OF SHARES PRIOR TO THE INCEPTION OF OTHER CLASSES). PERFORMANCE OF THE OTHER
CLASSES WILL BE GREATER OR LESS THAN THE PERFORMANCE SHOWN BASED ON DIFFERENCES
IN SALES CHARGES AND EXPENSES PAID BY SHAREHOLDERS INVESTING IN THE DIFFERENT
CLASSES.
INVESTING IN FOREIGN SECURITIES INVOLVES GREATER RISKS THAN INVESTING IN
SECURITIES OF U.S. ISSUERS, INCLUDING CURRENCY FLUCTUATION AND POLITICAL
UNCERTAINTY.
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN
VOLUNTARILY WAIVED AND/OR REIMBURSED.
[LOGO]
26
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
PERFORMA STRATEGIC VALUE BOND FUND MANAGED BY: JOHN HUBER
An interview with John Huber, Portfolio Manager of
Performa Strategic Value Bond Fund
Q. John, how has the Fund performed?
A. For the one and a half months ended November 30, 1997, the Fund achieved a
cumulative return of 1.55%.
Q. Could you describe the current holdings of the Fund?
A. Presently, we have 11.3% in asset-backed securities, 6.5% in general agency
debentures, 1.3% in adjustable rate mortgages, 11% in collateralized mortgage
obligation allocation, 16.3% in finance, 23% in industrial product, 5% in
taxable municipal bonds, 8.6% in mortgage pass-through product, 2.9% in
utilities, and almost 14% in Treasuries. We plan to add selectively to each of
these asset classes where we find value and where incremental yield can be added
on a diversified basis.
Q. How is the Fund managed?
A. The main tenets of the Fund is to provide superior risk-adjusted returns.
Our overriding strategy is strategic diversification. Our historical research
has shown that the optimal portfolio would consist of approximately 60%
mortgage- and asset-backed product and 40% in corporate product. We will
emphasize mortgage- and corporate-backed securities in the Fund. We will
maintain a low turnover rate, about 25% annual turnover in the Fund. The Fund
purchases securities for a 12-24 month investment horizon. As a result, the Fund
will have a lower turnover rate than many of our peers. Our duration is
presently at 5.29 years, with a yield advantage of 60 basis points. The Fund
will not emphasize duration as the primary component of total return. The Fund's
duration will mimic that of its peer group. Risk-adjusted performance will be
generated through superior security selection and portfolio construction.
Q. What is your outlook on the market?
A. We think interest rates will continue to drop over the next 6-12 months. We
look for low inflation, a relatively strong domestic economy, and corporate
profitability.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
PERFORMA DISCIPLINED GROWTH FUND MANAGED BY: STEPHEN S. SMITH
An interview with Stephen S. Smith
Portfolio Manager of Performa Disciplined Growth Fund
Q. Steve, how is the Fund managed?
A. The style of managing the Fund is based on our process of forecasting
companies that will report better than expected earnings. Our system is partly
qualitative and partly quantitative. We have a bottom-up stock selection
procedure, all of our work is based on company-specific information and we rely
very little on our opinion about where the market is going. The only factor that
we use within our process that would be considered top-down is determining
whether the risk level of the overall market is higher than average. By almost
any measure, that is the case right now. The performance that we generate in our
portfolios is based on two things. First, whether we do a good job of
forecasting earnings surprises, and second, whether the market does pay for
positive earnings surprise reports.
Q. Could you describe the current composition of the Fund?
A. We benchmark the portfolio against the S&P 500 Index. What we do within our
portfolios is we will match the composition of the S&P 500 economic sectors as
closely as possible. We are close to the S&P sector weightings in all of the
major sectors. The discipline that we use does allow us to move away from the
benchmark sector weight but never more than 50% of the S&P sector weight. When
we believe that the risk level of the market is unusually high, we will match
the S&P sector weights as close as we can and won't be near the outer bounds
that the discipline allows. Other ways that we manage the portfolio to take risk
into account is by reducing the beta or volatility level of the average stock
and attempting to restrain the risk elements of the portfolio such as credit
risk and liquidity risk.
Q. What is your outlook on the market?
A. As I previously mentioned, there is an unusually high level of risk present
in the market right now. That risk is caused by a number of factors. First, the
valuation level of the market is unusually high. Second, the world-wide economic
environment is very unstable because of the developments in Asia. Third, it
appears that going into this period most investors did not think anything could
go wrong and that is the way they were pricing the market. Clearly, there are
things that can go wrong and some of those are working their way out right now.
We think the market will experience a tumultuous time over the next several
months and as a result of that we have structured the portfolio defensively.
However, we have not raised cash as our investors pay us to invest in the stock
market and we will always be fully invested.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
[LOGO]
27
<PAGE>
INVESTMENT ADVISER'S REPORT AND PERFORMANCE DATA (UNAUDITED)
(CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
PERFORMA SMALL CAP VALUE FUND MANAGED BY: STEPHEN S. SMITH
An interview with Stephen S. Smith
Portfolio Manager of Performa Small Cap Value Fund
Q. Steve, how is the Fund managed?
A. The primary driver of performance is our ability to forecast earnings
surprises. Within small cap stocks we have found that value means a lot more in
driving stock prices than it does in large companies. We use a measure that we
call the private market value to determine valuation of our small cap companies.
We analyze each of these companies as if it was a private company that is not
publicly traded on the stock market. We compare our valuation with the value
that the stock market assigns it. What we are trying to find are companies that
are substantially undervalued. We then forecast the earnings surprises. Our idea
is that if we can find companies that are substantially undervalued because
nobody likes them and we believe that they are about to report a steady stream
of positive earnings surprises then the earnings surprises serve as a catalyst
to unlock the hidden value and cause the stock price to rise.
Q. What sector considerations do you use for this Fund?
A. We don't apply sector considerations to the small cap environment since it
is hard to find enough companies within each sector. The size criteria that we
apply to the small cap portfolio is the same as that of the Russell 2000 Index;
we attempt to have the average company size to be very close to that of the
average company size within the Russell 2000 Index.
Q. How many securities are you presently holding in this Fund?
A. We have 60 small cap companies, a number large enough to provide
diversification and liquidity, yet small enough to allow us to keep up with the
details of the business environment of each of our companies.
Q. Do you believe it is time for small cap stocks to outperform large cap
stocks?
A. It appears so for several reasons. One, large cap stocks have outperformed
small caps for a number of years. Historically, once a size category is in
favor, then it stays in favor for a long period of time. There are indications
that the tide may have turned in favor of small caps. If that is the case, then
we may have a multi-year period of outperformance by small caps, based on
historical record. Second, the major problem with the world-wide economic
situation is centered in Asia and large companies are the ones that typically
trade world-wide and would either benefit or suffer from what goes on in other
parts of the world. Small cap companies tend to be domestically based and
therefore relatively immune from the problems in Asia and other foreign markets.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
PERFORMA GLOBAL GROWTH FUND MANAGED BY: MICHAEL PERELSTEIN
An interview with Michael Perelstein
Portfolio Manager of Performa Global Growth Fund
Q. Michael, this Fund was recently started, right?
A. Yes, the Fund was launched on October 15, 1997.
Q. How has the volatility of world markets affected management of the Fund?
A. The Fund is cautiously positioned due to the volatility in world markets,
especially Asia. This is an unusual stance for Schroders. We will probably be
this cautious only once every four or five years. We seek to invest in high
quality, well managed companies that have identifiable earnings growth
prospects. In an environment where it is inevitably difficult to be precise
about future earnings prospects, we believe that such quality companies will
command a premium.
Q. What regions are you focusing on?
A. From a regional perspective, we are emphasizing Continental Europe which has
the largest position in the Fund. Although valuations are somewhat extended,
they are not as extended as other markets. More importantly, they are in what
traditionally has been the best part of the cycle, an environment where they
have just moved from recovery to expansion and earnings still look pretty good
going forward. Also, arguably, Continental Europe is less exposed to Asian
difficulties than many other markets.
Q. What are your thoughts on the domestic market?
A. We have about a 15% holding in the United States equity market, which is
lower than normal. We feel the U.S. market is vulnerable from a valuation
perspective. If there is a surprise on the earnings side, that could trigger a
problem. We are trying to be as opportunistic as possible in the U.S. market. We
are focusing on well-managed companies that have their destiny within their
control as much as any company can and where earnings visibility is as strong as
possible. We are shying away from companies that have either economically
sensitive earning streams or earning streams derived from Asia. We are swapping
into companies that have more of a domestic bent.
Q. How have the Asian markets affected the Fund?
A. We have quite a low exposure in Asia. We have about a 9%-9.5% holding in
Japan, which is below normal. The only other exposure we have in Asia is in
Singapore, which we believe is the highest quality market in Asia due to its
management of the economy and quality of companies. We have no exposure in the
emerging markets which have really had a tough time. Asia will become a major
export market, but before we consider moving into Asia, we need to see stability
of currency and low interest rates.
Q. How does the Fund compare to your competition?
A. Compared to our peers we have less exposure in Asia. Many of our peers have
an important position in Hong Kong, a market we have been avoiding in the second
half of 1997. We believe that many of the problems the other Asian markets have
faced are being transferred to Hong Kong. For example, the devaluation of the
currencies in the Asian region causes a competitive problem for Hong Kong and
China. We also have less exposure to Latin America than our peers. We are only
in one market, Chile, as we believe that there may be a contagion effect from
Asia into Latin America since both markets are dependent on capital flows. Our
U.S. exposure is probably lower than our peers; currently we have about 17
holdings spread out across all sectors.
THE OPINIONS EXPRESSED IN THIS INTERVIEW REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH NOVEMBER 30, 1997. THE MANAGER'S OPINIONS ARE SUBJECT TO CHANGE AT
ANY TIME BASED ON THE MARKET AND OTHER CONDITIONS. THE COMPOSITION, INDUSTRIES
AND HOLDINGS OF THE PORTFOLIO ARE SUBJECT TO CHANGE.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
The Comparison of Change in Value of a $10,000 Investment has not been included
for this Fund because it has been in existence for two months or less.
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28
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
29
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE
STABLE GOVERNMENT GOVERNMENT DIVERSIFIED
INCOME INCOME INCOME BOND INCOME
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $ 134,503,391 $ 62,172,747 $381,688,193 $ 169,669,343 $ 270,609,076
Net unrealized appreciation
(depreciation).......... 361,809 498,425 6,333,684 5,735,081 7,126,206
------------- ------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT VALUE... 134,865,200 62,671,172 388,021,877 175,404,424 277,735,282
Collateral for securities
loaned (Notes 2 & 5)..... - 9,096,170 112,740,540 - 72,934,613
Interest, dividends and other
receivables.............. - 788,881 5,185,072 - 3,472,924
Receivable for securities
sold..................... - 50,000 - - -
Receivable for Fund shares
issued................... 33,527 - 107,041 322,591 152,848
Receivable from other related
parties.................. - - - - -
Organization Costs, net of
amortization (Note 2).... 23,277 - 23,277 23,277 -
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS.................. 134,922,004 72,606,223 506,077,807 175,750,292 354,295,667
------------- ------------- ------------- ------------- -------------
LIABILITIES:
Payable for securities
purchased................ - - - - 2,299,741
Payable for securities loaned
(Notes 2 & 5)............ - 9,096,170 112,740,540 - 72,934,613
Payable for Fund shares
redeemed................. 306,067 13,000 258,138 41,541 127,779
Payable to Norwest and
affiliates (Note 3)...... 4,158 7,721 187,464 30,488 147,552
Payable to other related
parties (Note 3)......... - - 18,076 - 8,599
Accrued expenses and other
liabilities.............. 3,564 9,997 26,631 4,196 11,089
Dividends payable............ 1,354 288,066 16,607 - 1,266,570
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES............. 315,143 9,414,954 113,247,456 76,225 76,795,943
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 134,606,861 $ 63,191,269 $392,830,351 $ 175,674,067 $ 277,499,724
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $ 141,377,917 $ 62,629,385 $412,461,571 $ 158,778,926 $ 286,800,505
Undistributed (distributions
in excess of) net
investment income
(loss)................... 128,698 - 393,727 11,210,087 17,328
Accumulated net realized gain
(loss) from investments
sold..................... (7,261,563) 63,459 (26,358,631) (50,027) (16,444,315)
Net unrealized appreciation
(depreciation) from
investments.............. 361,809 498,425 6,333,684 5,735,081 7,126,206
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 134,606,861 $ 63,191,269 $392,830,351 $ 175,674,067 $ 277,499,724
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 9,565,039 $ - $ 12,337,416 $ - $ 5,458,380
B Shares..................... 1,531,037 - 8,613,568 - 3,971,678
I Shares..................... 123,510,785 63,191,269 371,879,367 175,674,067 268,069,666
------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 134,606,861 $ 63,191,269 $392,830,351 $ 175,674,067 $ 277,499,724
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 929,088 - 1,105,946 - 563,394
B Shares..................... 148,800 - 772,661 - 410,575
I Shares..................... 12,000,505 6,412,987 33,323,151 6,374,996 27,694,960
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ 10.30 $ - $ 11.16 $ - $ 9.69
B Shares..................... $ 10.29 $ - $ 11.15 $ - $ 9.67
I Shares..................... $ 10.29 $ 9.85 $ 11.16 $ 27.56 $ 9.68
</TABLE>
(a) Net Assets by Share Class divided by Shares of Beneficial Interest
See Notes to Financial Statements.
[LOGO]
30
<PAGE>
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
TOTAL RETURN LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA STRATEGIC
BOND TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE INCOME
FUND FUND FUND FUND FUND FUND FUND
------------- ------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $138,348,209 $45,429,973 $ 301,858,468 $ 59,104,386 $196,566,929 $ 55,519,591 $ 122,818,929
Net unrealized appreciation
(depreciation).......... 1,296,556 688,610 13,792,669 3,406,266 9,925,254 2,482,210 16,693,354
------------- ------------ ------------- ------------ ------------- ------------ -------------
TOTAL INVESTMENTS AT VALUE... 139,644,765 46,118,583 315,651,137 62,510,652 206,492,183 58,001,801 139,512,283
Collateral for securities
loaned (Notes 2 & 5)..... - - - - - - -
Interest, dividends and other
receivables.............. - 837,291 5,677,151 1,265,516 3,357,872 824,100 -
Receivable for securities
sold..................... - - 1,841,380 330,561 - - -
Receivable for Fund shares
issued................... 44,350 25,000 415,527 238,333 6,000 131,798 55,718
Receivable from other related
parties.................. - - - - - - 4,140
Organization Costs, net of
amortization (Note 2).... 7,084 - - - - - 23,277
------------- ------------ ------------- ------------ ------------- ------------ -------------
TOTAL ASSETS.................. 139,696,199 46,980,874 323,585,195 64,345,062 209,856,055 58,957,699 139,595,418
------------- ------------ ------------- ------------ ------------- ------------ -------------
LIABILITIES:
Payable for securities
purchased................ - - 12,094,789 - - - -
Payable for securities loaned
(Notes 2 & 5)............ - - - - - - -
Payable for Fund shares
redeemed................. 35,078 51,496 47,222 201,656 46,474 4,957 27,023
Payable to Norwest and
affiliates (Note 3)...... 28,416 15,378 114,408 19,826 80,465 16,573 37,340
Payable to other related
parties (Note 3)......... 10,070 5,689 14,951 4,283 18,953 3,949 -
Accrued expenses and other
liabilities.............. 11,803 10,432 23,026 14,651 13,593 20,093 1,699
Dividends payable............ 564,736 145,869 1,018,566 127,234 801,053 77,515 -
------------- ------------ ------------- ------------ ------------- ------------ -------------
TOTAL LIABILITIES............. 650,103 228,864 13,312,962 367,650 960,538 123,087 66,062
------------- ------------ ------------- ------------ ------------- ------------ -------------
NET ASSETS.................... $139,046,096 $46,752,010 $ 310,272,233 $ 63,977,412 $208,895,517 $ 58,834,612 $ 139,529,356
------------- ------------ ------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ ------------- ------------ -------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $137,226,421 $46,028,271 $ 301,563,440 $ 61,129,325 $198,750,903 $ 56,753,356 $ 112,067,726
Undistributed (distributions
in excess of) net
investment income
(loss)................... - - (509,879) - - (41,762) 6,720,992
Accumulated net realized gain
(loss) from investments
sold..................... 523,119 35,129 (4,573,997) (558,179) 219,360 (359,192) 4,047,284
Net unrealized appreciation
(depreciation) from
investments.............. 1,296,556 688,610 13,792,669 3,406,266 9,925,254 2,482,210 16,693,354
------------- ------------ ------------- ------------ ------------- ------------ -------------
NET ASSETS.................... $139,046,096 $46,752,010 $ 310,272,233 $ 63,977,412 $208,895,517 $ 58,834,612 $ 139,529,356
------------- ------------ ------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ ------------- ------------ -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 3,013,588 $ - $ 30,955,989 $ 29,862,281 $ - $ 29,488,405 $ -
B Shares..................... 2,494,345 - 9,242,784 7,537,811 - 12,876,802 -
I Shares..................... 133,538,163 46,752,010 270,073,460 26,577,320 208,895,517 16,469,405 139,529,356
------------- ------------ ------------- ------------ ------------- ------------ -------------
NET ASSETS.................... $139,046,096 $46,752,010 $ 310,272,233 $ 63,977,412 $208,895,517 $ 58,834,612 $ 139,529,356
------------- ------------ ------------- ------------ ------------- ------------ -------------
------------- ------------ ------------- ------------ ------------- ------------ -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 312,848 - 2,985,335 2,831,956 - 2,709,761 -
B Shares..................... 258,509 - 891,205 713,990 - 1,183,528 -
I Shares..................... 13,845,893 4,434,877 26,029,931 2,519,990 20,969,442 1,513,343 7,020,326
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ 9.63 $ - $ 10.37 $ 10.54 $ - $ 10.88 $ -
B Shares..................... $ 9.65 $ - $ 10.37 $ 10.56 $ - $ 10.88 $ -
I Shares..................... $ 9.64 $ 10.54 $ 10.38 $ 10.55 $ 9.96 $ 10.88 $ 19.88
</TABLE>
(a) Net Assets by Share Class divided by Shares of Beneficial Interest
[LOGO]
31
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE GROWTH INCOME VALUGROWTH-SM-
BALANCED BALANCED INDEX EQUITY STOCK
FUND FUND FUND FUND FUND
------------- ------------- ------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $ 343,390,490 $ 429,574,508 $ 414,115,035 $ 741,344,105 $484,164,733
Net unrealized appreciation
(depreciation).......... 75,332,813 136,295,185 160,416,624 381,435,458 163,110,886
------------- ------------- ------------- --------------- -------------
TOTAL INVESTMENTS AT VALUE... 418,723,303 565,869,693 574,531,659 1,122,779,563 647,275,619
Collateral for securities
loaned (Notes 2 & 5)..... - - - - 109,227,837
Interest, dividends and other
receivables.............. - - - - 911,811
Receivable for securities
sold..................... - - - - 2,174,286
Receivable for Fund shares
issued................... 66,313 300,304 1,397,291 599,188 80,317
Receivable from other related
parties.................. - - - - -
Organization Costs, net of
amortization (Note 2).... 23,277 23,277 23,277 23,277 -
------------- ------------- ------------- --------------- -------------
TOTAL ASSETS.................. 418,812,893 566,193,274 575,952,227 1,123,402,028 759,669,870
------------- ------------- ------------- --------------- -------------
LIABILITIES:
Payable for securities
purchased................ - - - - 3,754,106
Payable for securities loaned
(Notes 2 & 5)............ - - - - 109,227,837
Payable for Fund shares
redeemed................. 423,087 287,646 49,295 329,674 180,354
Payable to Norwest and
affiliates (Note 3)...... 122,548 168,812 - 217,631 450,760
Payable to other related
parties (Note 3)......... 16,622 39,214 18,786 69,324 53,185
Accrued expenses and other
liabilities.............. 4,270 3,935 4,208 81,025 49,624
Dividends payable............ - - - 10,976 95,047
------------- ------------- ------------- --------------- -------------
TOTAL LIABILITIES............. 566,527 499,607 72,289 708,630 113,810,913
------------- ------------- ------------- --------------- -------------
NET ASSETS.................... $ 418,246,366 $ 565,693,667 $ 575,879,938 $ 1,122,693,398 $645,858,957
------------- ------------- ------------- --------------- -------------
------------- ------------- ------------- --------------- -------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $ 302,885,379 $ 389,322,125 $ 357,371,952 $ 728,898,740 $435,410,460
Undistributed (distributions
in excess) net investment
income (loss)............ 17,474,339 13,584,495 9,273,373 3,829,698 1,087,198
Accumulated net realized gain
(loss) from investments
sold..................... 22,553,835 26,491,862 48,817,989 8,529,502 46,250,413
Net unrealized appreciation
(depreciation) from
investments.............. 75,332,813 136,295,185 160,416,624 381,435,458 163,110,886
------------- ------------- ------------- --------------- -------------
NET ASSETS.................... $ 418,246,366 $ 565,693,667 $ 575,879,938 $ 1,122,693,398 $645,858,957
------------- ------------- ------------- --------------- -------------
------------- ------------- ------------- --------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ - $ - $ - $ 55,262,957 $ 21,767,827
B Shares..................... - - - 45,440,393 7,456,686
I Shares..................... 418,246,366 565,693,667 575,879,938 1,021,990,048 616,634,444
------------- ------------- ------------- --------------- -------------
NET ASSETS.................... $ 418,246,366 $ 565,693,667 $ 575,879,938 $ 1,122,693,398 $645,858,957
------------- ------------- ------------- --------------- -------------
------------- ------------- ------------- --------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... - - - 1,506,928 870,161
B Shares..................... - - - 1,242,716 305,273
I Shares..................... 17,893,690 20,796,830 12,857,731 27,870,834 24,680,817
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ - $ - $ - $ 36.67 $ 25.02
B Shares..................... $ - $ - $ - $ 36.57 $ 24.43
I Shares..................... $ 23.37 $ 27.20 $ 44.79 $ 36.67 $ 24.98
<CAPTION>
DIVERSIFIED
EQUITY
FUND
---------------
<S> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $ 999,291,380
Net unrealized appreciation
(depreciation).......... 453,412,584
---------------
TOTAL INVESTMENTS AT VALUE... 1,452,703,964
Collateral for securities
loaned (Notes 2 & 5)..... -
Interest, dividends and other
receivables.............. -
Receivable for securities
sold..................... -
Receivable for Fund shares
issued................... 1,117,390
Receivable from other related
parties.................. -
Organization Costs, net of
amortization (Note 2).... 23,277
---------------
TOTAL ASSETS.................. 1,453,844,631
---------------
LIABILITIES:
Payable for securities
purchased................ -
Payable for securities loaned
(Notes 2 & 5)............ -
Payable for Fund shares
redeemed................. 856,493
Payable to Norwest and
affiliates (Note 3)...... 466,928
Payable to other related
parties (Note 3)......... 103,213
Accrued expenses and other
liabilities.............. 64,104
Dividends payable............ 1,575
---------------
TOTAL LIABILITIES............. 1,492,313
---------------
NET ASSETS.................... $ 1,452,352,318
---------------
---------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $ 902,818,855
Undistributed (distributions
in excess) net investment
income (loss)............ 11,194,257
Accumulated net realized gain
(loss) from investments
sold..................... 84,926,622
Net unrealized appreciation
(depreciation) from
investments.............. 453,412,584
---------------
NET ASSETS.................... $ 1,452,352,318
---------------
---------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 38,558,950
B Shares..................... 54,110,985
I Shares..................... 1,359,682,383
---------------
NET ASSETS.................... $ 1,452,352,318
---------------
---------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 953,804
B Shares..................... 1,350,905
I Shares..................... 33,635,596
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ 40.43
B Shares..................... $ 40.06
I Shares..................... $ 40.42
</TABLE>
(a) Net Assets by Share Class divided by Shares of Beneficial Interest
See Notes to Financial Statements.
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32
<PAGE>
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL SMALL
GROWTH COMPANY COMPANY COMPANY CAP CONTRARIAN
EQUITY GROWTH STOCK GROWTH OPPORTUNITIES STOCK
FUND FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $ 764,347,239 $ 112,048,060 $ 216,195,430 $ 597,492,625 $164,445,598 $ 4,439,379
Net unrealized appreciation
(depreciation).......... 217,405,372 53,416,958 7,440,349 127,125,572 15,664,840 644,374
------------- ------------- ------------- ------------- ------------- -------------
TOTAL INVESTMENTS AT VALUE... 981,752,611 165,465,018 223,635,779 724,618,197 180,110,438 5,083,753
Collateral for securities
loaned (Notes 2 & 5)..... - - - - - 498,058
Interest, dividends and other
receivables.............. - - - - 3,976 10,293
Receivable for securities
sold..................... - - - - - 162,677
Receivable for Fund shares
issued................... 1,884,976 34,051 21,222 1,361,820 217,145 25
Receivable from other related
parties.................. - - - - 13,595 6,564
Organization Costs, net of
amortization (Note 2).... 23,277 23,277 7,084 23,277 - 7,084
------------- ------------- ------------- ------------- ------------- -------------
TOTAL ASSETS.................. 983,660,864 165,522,346 223,664,085 726,003,294 180,345,154 5,768,454
------------- ------------- ------------- ------------- ------------- -------------
LIABILITIES:
Payable for securities
purchased................ - - - - - -
Payable for securities loaned
(Notes 2 & 5)............ - - - - - 498,058
Payable for Fund shares
redeemed................. 291,916 888 162,040 279,750 22,265 50,268
Payable to Norwest and
affiliates (Note 3)...... 356,617 32,269 32,121 151,603 49,487 -
Payable to other related
parties (Note 3)......... 49,974 3,593 2,242 63,962 - -
Accrued expenses and other
liabilities.............. 14,211 4,259 11,352 4,287 - 7,423
Dividends payable............ - - 2,117 - - -
------------- ------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES............. 712,718 41,009 209,872 499,602 71,752 555,749
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 982,948,146 $ 165,481,337 $ 223,454,213 $ 725,503,692 $180,273,402 $ 5,212,705
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $ 662,545,989 $ 100,276,596 $ 184,237,083 $ 519,982,417 $159,957,916 $ 5,643,805
Undistributed (distributions
in excess) net investment
income (loss)............ 333,611 (290,787) (588,750) (2,220,417) (232,195) 10,507
Accumulated net realized gain
(loss) from investments
sold..................... 102,663,174 12,078,570 32,365,531 80,616,120 4,882,841 (1,085,981)
Net unrealized appreciation
(depreciation) from
investments.............. 217,405,372 53,416,958 7,440,349 127,125,572 15,664,840 644,374
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 982,948,146 $ 165,481,337 $ 223,454,213 $ 725,503,692 $180,273,402 $ 5,212,705
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 18,491,654 $ - $ 8,551,362 $ - $ 2,987,342 $ -
B Shares..................... 11,798,038 - 5,679,041 - 1,714,081 -
I Shares..................... 952,658,454 165,481,337 209,223,810 725,503,692 175,571,980 5,212,705
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS.................... $ 982,948,146 $ 165,481,337 $ 223,454,213 $ 725,503,692 $180,273,402 $ 5,212,705
------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- -------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 522,349 - 598,795 - 131,360 -
B Shares..................... 336,719 - 408,860 - 75,982 -
I Shares..................... 26,912,606 4,400,206 14,724,706 19,962,195 7,718,265 515,725
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ 35.40 $ - $ 14.28 $ - $ 22.74 $ -
B Shares..................... $ 35.04 $ - $ 13.89 $ - $ 22.56 $ -
I Shares..................... $ 35.40 $ 37.61 $ 14.21 $ 36.34 $ 22.75 $ 10.11
<CAPTION>
INTERNATIONAL
FUND
-------------
<S> <C>
ASSETS:
Investments (Note 2)
Investments at cost......... $222,300,067
Net unrealized appreciation
(depreciation).......... 16,070,486
-------------
TOTAL INVESTMENTS AT VALUE... 238,370,553
Collateral for securities
loaned (Notes 2 & 5)..... -
Interest, dividends and other
receivables.............. 3,605
Receivable for securities
sold..................... -
Receivable for Fund shares
issued................... 21,089
Receivable from other related
parties.................. -
Organization Costs, net of
amortization (Note 2).... 23,277
-------------
TOTAL ASSETS.................. 238,418,524
-------------
LIABILITIES:
Payable for securities
purchased................ -
Payable for securities loaned
(Notes 2 & 5)............ -
Payable for Fund shares
redeemed................. 92,501
Payable to Norwest and
affiliates (Note 3)...... 348,893
Payable to other related
parties (Note 3)......... 18,022
Accrued expenses and other
liabilities.............. 4,984
Dividends payable............ -
-------------
TOTAL LIABILITIES............. 464,400
-------------
NET ASSETS.................... $237,954,124
-------------
-------------
COMPONENTS OF NET ASSETS:
Paid in capital.............. $218,669,261
Undistributed (distributions
in excess) net investment
income (loss)............ 2,607,840
Accumulated net realized gain
(loss) from investments
sold..................... 606,537
Net unrealized appreciation
(depreciation) from
investments.............. 16,070,486
-------------
NET ASSETS.................... $237,954,124
-------------
-------------
NET ASSETS BY SHARE CLASS
A Shares..................... $ 2,932,275
B Shares..................... 1,860,198
I Shares..................... 233,161,651
-------------
NET ASSETS.................... $237,954,124
-------------
-------------
SHARES OF BENEFICIAL INTEREST
A Shares..................... 143,762
B Shares..................... 91,996
I Shares..................... 11,424,212
NET ASSET VALUE PER SHARE(A)
A Shares..................... $ 20.40
B Shares..................... $ 20.22
I Shares..................... $ 20.41
</TABLE>
(a) Net Assets by Share Class divided by Shares of Beneficial Interest
[LOGO]
33
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED
TERM INTERMEDIATE
STABLE GOVERNMENT GOVERNMENT DIVERSIFIED
INCOME INCOME INCOME BOND INCOME
FUND FUND(A) FUND FUND FUND
----------- ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $4,144,658 $ 667,436 $13,991,714 $ 5,684,336 $ 9,670,966
Dividend income.............. - - - - -
Securities lending income
(Notes 2 & 5)............ 10,592 - 32,159 26,707 33,734
Net expenses allocated from
Core Trust and/or
Schroder Capital Funds
(Note 1)................. (242,630) - - (355,597) -
----------- ----------- ------------ ------------ -------------
TOTAL INCOME................. 3,912,620 667,436 14,023,873 5,355,446 9,704,700
----------- ----------- ------------ ------------ -------------
EXPENSES
Advisory (Note 3)............ - 34,818 648,998 - 681,117
Administration (Note 3)...... 21,131 5,275 96,377 27,833 68,112
Management (Note 3).......... 21,131 5,275 96,377 27,833 68,112
Norwest Management (Note
3)....................... - - - - -
Asset Allocation (Note 3).... - - - 209,590 -
Transfer Agent (Note 3)
A Shares.................... 12,238 - 16,103 - 6,678
B Shares.................... 1,655 - 11,012 - 4,552
I Shares.................... 145,645 26,377 464,550 209,590 329,328
Custody (Note 3)............. - 2,110 - - 21,143
Accounting (Note 3).......... 18,000 6,000 43,000 6,000 46,000
Legal (Note 3)............... 1,249 - 3,977 1,334 2,513
Compliance................... 21,755 10,152 21,413 11,215 28,171
Audit........................ 8,130 7,138 9,052 3,286 6,116
Trustees'.................... 887 - 2,777 1,161 1,909
Reporting.................... 6,750 - 6,447 3,290 6,733
12b-1 Distribution fees--B
shares (Note 3).......... 6,620 - 44,048 - 18,209
Amortization of organization
costs (Note 2)........... 5,960 - 5,960 5,960 -
Miscellaneous................ 1,858 365 3,295 1,226 4,038
----------- ----------- ------------ ------------ -------------
TOTAL EXPENSES............... 273,009 97,510 1,473,386 508,318 1,292,731
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 & EXHIBIT
A )......................... (95,768) (54,343) (103,280) (274,907) (257,563)
----------- ----------- ------------ ------------ -------------
NET EXPENSES................. 177,241 43,167 1,370,106 233,411 1,035,168
----------- ----------- ------------ ------------ -------------
NET INVESTMENT INCOME
(LOSS)................... 3,735,379 624,269 12,653,767 5,122,035 8,669,532
----------- ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. - 63,459 1,016,514 - 1,726,581
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 26,980 - - 732,606 -
Foreign currency
transactions from
investments in Core
Trust............... - - - - -
Futures transactions
from investments in
Core Trust.......... - - - - -
----------- ----------- ------------ ------------ -------------
Net realized gain (loss)
from investments.... 26,980 63,459 1,016,514 732,606 1,726,581
----------- ----------- ------------ ------------ -------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. - 498,425 9,921,425 - 10,053,305
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 487,714 - - 6,461,838 -
Foreign currency
transactions from
investments in Core
Trust............... - - - - -
Futures transactions
from investments in
Core Trust.......... - - - - -
----------- ----------- ------------ ------------ -------------
Net change in unrealized
appreciation
(depreciation) from
investments........... 487,714 498,425 9,921,425 6,461,838 10,053,305
----------- ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS.............. 514,694 561,884 10,937,939 7,194,444 11,779,886
----------- ----------- ------------ ------------ -------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $4,250,073 $1,186,153 $23,591,706 $12,316,479 $ 20,449,418
----------- ----------- ------------ ------------ -------------
----------- ----------- ------------ ------------ -------------
-----------------------------
(a) Commenced operations on
October 1, 1997.
</TABLE>
See Notes to Financial Statements.
[LOGO]
34
<PAGE>
FOR THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
TOTAL RETURN LIMITED TERM TAX-FREE COLORADO INTERMEDIATE
BOND TAX-FREE INCOME TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND(A)
---------------- ------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 4,712,050 $ 1,123,098 $ 8,787,501 $ 1,794,848 $ 2,013,196
Dividend income.............. - - - - -
Securities lending income
(Notes 2 & 5)............ 32,301 - - - -
Net expenses allocated from
Core Trust and/or
Schroder Capital Funds
(Note 1)................. (271,015) - - - -
---------------- ------------- ------------- ------------- -----------------
TOTAL INCOME................. 4,473,336 1,123,098 8,787,501 1,794,848 2,013,196
---------------- ------------- ------------- ------------- -----------------
EXPENSES
Advisory (Note 3)............ - 108,780 766,533 158,360 176,527
Administration (Note 3)...... 22,625 10,878 76,628 15,836 17,653
Management (Note 3).......... 22,625 10,878 76,628 15,836 17,653
Norwest Management (Note
3)....................... - - - - -
Asset Allocation (Note 3).... - - - - -
Transfer Agent (Note 3)
A Shares.................... 4,057 - 37,399 37,362 -
B Shares.................... 2,968 - 10,145 8,944 -
I Shares.................... 163,185 54,390 335,722 32,874 88,264
Custody (Note 3)............. - 4,351 22,851 6,334 6,037
Accounting (Note 3).......... 18,000 18,000 44,000 30,000 8,000
Legal (Note 3)............... 1,220 379 3,004 1,420 1,424
Compliance................... 23,658 10,028 29,097 1,243 -
Audit........................ 3,280 6,742 6,798 4,709 6,600
Trustees'.................... 948 296 2,124 442 -
Reporting.................... 4,060 699 6,264 5,448 -
12b-1 Distribution fees--B
shares (Note 3).......... 11,872 - 40,579 35,775 -
Amortization of organization
costs (Note 2)........... 3,269 - - - -
Miscellaneous................ 715 5,805 18,571 4,372 2,748
---------------- ------------- ------------- ------------- -----------------
TOTAL EXPENSES............... 282,482 231,226 1,476,343 358,955 324,906
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 & EXHIBIT
A )......................... (32,509) (89,819) (526,192) (142,113) (113,050)
---------------- ------------- ------------- ------------- -----------------
NET EXPENSES................. 249,973 141,407 950,151 216,842 211,856
---------------- ------------- ------------- ------------- -----------------
NET INVESTMENT INCOME
(LOSS)................... 4,223,363 981,691 7,837,350 1,578,006 1,801,340
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. - 82,890 4,797,250 472,229 219,360
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 1,121,115 - - - -
Foreign currency
transactions from
investments in Core
Trust............... - - - - -
Futures transactions
from investments in
Core Trust.......... - - - - -
---------------- ------------- ------------- ------------- -----------------
Net realized gain (loss)
from investments.... 1,121,115 82,890 4,797,250 472,229 219,360
---------------- ------------- ------------- ------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. - 541,366 4,594,336 1,487,062 9,925,254
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 2,127,154 - - - -
Foreign currency
transactions from
investments in Core
Trust............... - - - - -
Futures transactions
from investments in
Core Trust.......... - - - - -
---------------- ------------- ------------- ------------- -----------------
Net change in unrealized
appreciation
(depreciation) from
investments........... 2,127,154 541,366 4,594,336 1,487,062 9,925,254
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS.............. 3,248,269 624,256 9,391,586 1,959,291 10,144,614
---------------- ------------- ------------- ------------- -----------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $ 7,471,632 $ 1,605,947 $ 17,228,936 $ 3,537,297 $ 11,945,954
---------------- ------------- ------------- ------------- -----------------
---------------- ------------- ------------- ------------- -----------------
-----------------------------
(a) Commenced operations on
October 1, 1997.
<CAPTION>
MINNESOTA STRATEGIC
TAX-FREE INCOME
FUND FUND
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME
Interest income.............. $ 1,482,098 $ 3,355,455
Dividend income.............. - 244,451
Securities lending income
(Notes 2 & 5)............ - 18,194
Net expenses allocated from
Core Trust and/or
Schroder Capital Funds
(Note 1)................. - (282,350)
----------------- -----------------
TOTAL INCOME................. 1,482,098 3,335,750
----------------- -----------------
EXPENSES
Advisory (Note 3)............ 134,976 -
Administration (Note 3)...... 13,497 22,599
Management (Note 3).......... 13,497 22,599
Norwest Management (Note
3)....................... - -
Asset Allocation (Note 3).... - 170,451
Transfer Agent (Note 3)
A Shares.................... 35,393 -
B Shares.................... 15,120 -
I Shares.................... 16,975 170,451
Custody (Note 3)............. 5,399 -
Accounting (Note 3).......... 31,000 7,000
Legal (Note 3)............... 2,102 1,349
Compliance................... 1,228 12,013
Audit........................ 6,604 3,278
Trustees'.................... 360 937
Reporting.................... 5,747 2,450
12b-1 Distribution fees--B
shares (Note 3).......... 60,479 -
Amortization of organization
costs (Note 2)........... - 5,960
Miscellaneous................ 5,587 2,386
----------------- -----------------
TOTAL EXPENSES............... 347,964 421,473
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 & EXHIBIT
A )......................... (140,645) (157,936)
----------------- -----------------
NET EXPENSES................. 207,319 263,537
----------------- -----------------
NET INVESTMENT INCOME
(LOSS)................... 1,274,779 3,072,213
----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. 194,218 -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... - 2,124,392
Foreign currency
transactions from
investments in Core
Trust............... - (2,241)
Futures transactions
from investments in
Core Trust.......... - 106,323
----------------- -----------------
Net realized gain (loss)
from investments.... 194,218 2,228,474
----------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. 1,330,944 -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... - 4,615,570
Foreign currency
transactions from
investments in Core
Trust............... - 21
Futures transactions
from investments in
Core Trust.......... - (3,521)
----------------- -----------------
Net change in unrealized
appreciation
(depreciation) from
investments........... 1,330,944 4,612,070
----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS.............. 1,525,162 6,840,544
----------------- -----------------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS............... $ 2,799,941 $ 9,912,757
----------------- -----------------
----------------- -----------------
-----------------------------
(a) Commenced operations on
October 1, 1997.
</TABLE>
[LOGO]
35
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE GROWTH INCOME VALUGROWTH-SM-
BALANCED BALANCED INDEX EQUITY STOCK
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income............... $ 8,321,966 $ 6,670,178 $ 717,435 $ 287,874 $ 137,657
Dividend income............... 1,221,807 2,459,847 4,269,650 9,042,216 2,495,546
Securities lending income
(Notes 2 & 5)............. 63,882 89,727 77,428 61,776 39,137
Net expenses allocated from
Core Trust and/or Schroder
Capital Funds (Note 1).... (989,151) (1,379,014) (494,964) (2,071,503) -
------------ ------------ ------------ ------------ -------------
TOTAL INCOME.................. 8,618,504 7,840,738 4,569,549 7,320,363 2,672,340
------------ ------------ ------------ ------------ -------------
EXPENSES
Advisory (Note 3)............. - - - - 1,595,097
Administration (Note 3)....... 67,735 85,382 83,910 116,374 101,588
Management (Note 3)........... 67,735 85,382 83,910 116,374 101,588
Norwest Management (Note 3)... - - - - -
Asset Allocation (Note 3)..... 526,487 681,301 - - -
Transfer Agent (Note 3)
A Shares.................... - - - 63,436 26,131
B Shares.................... - - - 50,650 9,022
I Shares.................... 526,487 681,301 670,621 872,765 472,789
Custody (Note 3).............. - - - - 27,838
Accounting (Note 3)........... 6,000 6,000 6,000 18,000 36,500
Legal (Note 3)................ 4,202 5,341 4,145 6,234 2,718
Compliance.................... 14,472 15,307 15,242 63,501 61,487
Audit......................... 3,339 3,356 3,357 6,164 5,567
Trustees'..................... 2,952 3,680 3,632 3,956 1,627
Reporting..................... 7,677 9,032 8,618 29,564 7,880
12b-1 Distribution fees--B
shares (Note 3)........... - - - 202,600 36,089
Amortization of organization
costs (Note 2)............ 5,960 5,960 5,960 5,960 -
Miscellaneous................. 2,842 2,689 3,607 2,646 3,179
------------ ------------ ------------ ------------ -------------
TOTAL EXPENSES................ 1,235,888 1,584,731 889,002 1,558,224 2,489,100
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 &
EXHIBIT A )............... (361,680) (413,045) (714,735) (123,868) (428,553)
------------ ------------ ------------ ------------ -------------
NET EXPENSES.................. 874,208 1,171,686 174,267 1,434,356 2,060,547
------------ ------------ ------------ ------------ -------------
NET INVESTMENT INCOME
(LOSS).................... 7,744,296 6,669,052 4,395,282 5,886,007 611,793
------------ ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. - - - - 47,372,788
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 10,427,640 18,788,361 10,927,550 8,532,029 -
Foreign currency
transactions from
investments in Core
Trust............... (10,932) (21,757) - - -
Futures transactions
from investments in
Core Trust.......... 497,384 860,346 2,947,931 - -
------------ ------------ ------------ ------------ -------------
Net realized gain (loss) from
investments............... 10,914,092 19,626,950 13,875,481 8,532,029 47,372,788
------------ ------------ ------------ ------------ -------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. - - - - (29,548,016)
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 14,824,197 22,746,309 45,158,162 68,820,294 -
Foreign currency
transactions from
investments in Core
Trust............... (273) (702) - - -
Futures transactions
from investments in
Core Trust.......... (20,231) (42,197) (261,809) - -
------------ ------------ ------------ ------------ -------------
Net change in unrealized
appreciation
(depreciation) from
investments............. 14,803,693 22,703,410 44,896,353 68,820,294 (29,548,016)
------------ ------------ ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS............... 25,717,785 42,330,360 58,771,834 77,352,323 17,824,772
------------ ------------ ------------ ------------ -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $33,462,081 $48,999,412 $63,167,116 $ 83,238,330 $ 18,436,565
------------ ------------ ------------ ------------ -------------
------------ ------------ ------------ ------------ -------------
- ------------------------------
(a) Commenced operations on
October 1, 1997.
</TABLE>
See Notes to Financial Statements.
[LOGO]
36
<PAGE>
FOR THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL
DIVERSIFIED GROWTH COMPANY COMPANY COMPANY
EQUITY EQUITY GROWTH STOCK GROWTH
FUND FUND FUND FUND FUND
---------------- ------------- ------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income............... $ 1,423,405 $ 1,182,668 $ 43,694 $ 365,997 $ 722,760
Dividend income............... 9,618,819 3,951,212 398,245 264,475 932,999
Securities lending income
(Notes 2 & 5)............. 235,914 222,696 40,064 69,540 -
Net expenses allocated from
Core Trust and/or Schroder
Capital Funds (Note 1).... (3,859,755) (3,849,653) (521,641) (1,012,624) (2,899,543)
---------------- ------------- ------------- ------------- -----------------
TOTAL INCOME.................. 7,418,383 1,506,923 (39,638) (312,612) (1,243,784)
---------------- ------------- ------------- ------------- -----------------
EXPENSES
Advisory (Note 3)............. - - - - -
Administration (Note 3)....... 196,896 144,913 25,371 33,956 94,146
Management (Note 3)........... 196,896 144,913 25,371 33,956 94,146
Norwest Management (Note 3)... - - - - -
Asset Allocation (Note 3)..... 1,760,054 1,240,226 - - -
Transfer Agent (Note 3)
A Shares.................... 40,840 21,541 - 10,701 -
B Shares.................... 56,793 13,177 - 7,140 -
I Shares.................... 1,662,421 1,205,508 193,353 246,514 775,502
Custody (Note 3).............. - - - - -
Accounting (Note 3)........... 18,000 18,000 6,000 18,000 6,000
Legal (Note 3)................ 15,244 10,795 1,801 8,622 4,738
Compliance.................... 34,998 27,363 13,013 24,951 15,186
Audit......................... 3,516 3,440 3,278 3,283 3,343
Trustees'..................... 9,449 6,709 1,005 1,286 3,550
Reporting..................... 34,764 21,248 2,210 6,203 7,542
12b-1 Distribution fees--B
shares (Note 3)........... 227,172 52,708 - 28,560 -
Amortization of organization
costs (Note 2)............ 5,960 5,960 5,960 3,269 5,960
Miscellaneous................. 5,111 3,835 652 941 2,298
---------------- ------------- ------------- ------------- -----------------
TOTAL EXPENSES................ 4,268,114 2,920,336 278,014 427,382 1,012,411
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 &
EXHIBIT A )............... (891,691) (512,974) (26,865) (151,244) (35,778)
---------------- ------------- ------------- ------------- -----------------
NET EXPENSES.................. 3,376,423 2,407,362 251,149 276,138 976,633
---------------- ------------- ------------- ------------- -----------------
NET INVESTMENT INCOME
(LOSS).................... 4,041,960 (900,439) (290,787) (588,750) (2,220,417)
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. - - - - -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 65,263,203 83,146,921 10,973,751 32,545,605 80,643,760
Foreign currency
transactions from
investments in Core
Trust............... (81,015) (114,148) - - -
Futures transactions
from investments in
Core Trust.......... 2,723,685 - - - -
---------------- ------------- ------------- ------------- -----------------
Net realized gain (loss) from
investments............... 67,905,873 83,032,773 10,973,751 32,545,605 80,643,760
---------------- ------------- ------------- ------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. - - - - -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 63,608,933 (673,696) 9,748,700 (24,142,095) 7,021,293
Foreign currency
transactions from
investments in Core
Trust............... (4,856) (6,618) - - -
Futures transactions
from investments in
Core Trust.......... (168,093) - - - -
---------------- ------------- ------------- ------------- -----------------
Net change in unrealized
appreciation
(depreciation) from
investments............. 63,435,984 (680,314) 9,748,700 (24,142,095) 7,021,293
---------------- ------------- ------------- ------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS............... 131,341,857 82,352,459 20,722,451 8,403,510 87,665,053
---------------- ------------- ------------- ------------- -----------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ 135,383,817 $ 81,452,020 $ 20,431,664 $ 7,814,760 $ 85,444,636
---------------- ------------- ------------- ------------- -----------------
---------------- ------------- ------------- ------------- -----------------
- ------------------------------
(a) Commenced operations on
October 1, 1997.
<CAPTION>
SMALL
CAP CONTRARIAN
OPPORTUNITIES STOCK INTERNATIONAL
FUND FUND FUND
----------------- ----------------- -----------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income............... $ 240,331 $ 14,004 $ 525,425
Dividend income............... 356,858 53,339 1,481,953
Securities lending income
(Notes 2 & 5)............. - - 47,813
Net expenses allocated from
Core Trust and/or Schroder
Capital Funds (Note 1).... (534,829) - (833,923)
----------------- ----------------- -----------------
TOTAL INCOME.................. 62,360 67,343 1,221,268
----------------- ----------------- -----------------
EXPENSES
Advisory (Note 3)............. - 30,389 -
Administration (Note 3)....... 20,963 1,899 62,268
Management (Note 3)........... 20,963 1,899 62,268
Norwest Management (Note 3)... 169,710 - 311,338
Asset Allocation (Note 3)..... - - 250,616
Transfer Agent (Note 3)
A Shares.................... 1,685 - 3,329
B Shares.................... 902 - 2,294
I Shares.................... 167,123 9,496 305,715
Custody (Note 3).............. - 760 -
Accounting (Note 3)........... 18,000 18,000 18,000
Legal (Note 3)................ 25,938 611 2,382
Compliance.................... 22,236 9,477 22,351
Audit......................... 3,263 4,385 3,300
Trustees'..................... 722 64 1,718
Reporting..................... 3,887 278 4,873
12b-1 Distribution fees--B
shares (Note 3)........... 3,607 - 9,176
Amortization of organization
costs (Note 2)............ - 3,269 5,960
Miscellaneous................. 518 1,416 857
----------------- ----------------- -----------------
TOTAL EXPENSES................ 459,517 81,943 1,066,445
FEES WAIVED AND EXPENSES
REIMBURSED (NOTE 3 &
EXHIBIT A )............... (164,962) (36,341) (10,220)
----------------- ----------------- -----------------
NET EXPENSES.................. 294,555 45,602 1,056,225
----------------- ----------------- -----------------
NET INVESTMENT INCOME
(LOSS).................... (232,195) 21,741 165,043
----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net Realized Gain (Loss)
from:
Securities.............. - 832,468 -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 4,322,240 - 1,800,211
Foreign currency
transactions from
investments in Core
Trust............... - - (97,056)
Futures transactions
from investments in
Core Trust.......... - - -
----------------- ----------------- -----------------
Net realized gain (loss) from
investments............... 4,322,240 832,468 1,703,155
----------------- ----------------- -----------------
Net Change in Unrealized
Appreciation
(Depreciation) from:
Securities.............. - (621,042) -
Investments of Core
Trust and/or
Schroder Capital
Funds (Note 1)...... 8,483,410 - (17,324,358)
Foreign currency
transactions from
investments in Core
Trust............... - - (7,972)
Futures transactions
from investments in
Core Trust.......... - - -
----------------- ----------------- -----------------
Net change in unrealized
appreciation
(depreciation) from
investments............. 8,483,410 (621,042) (17,332,330)
----------------- ----------------- -----------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS............... 12,805,650 211,426 (15,629,175)
----------------- ----------------- -----------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ 12,573,455 $ 233,167 $ (15,464,132)
----------------- ----------------- -----------------
----------------- ----------------- -----------------
- ------------------------------
(a) Commenced operations on
October 1, 1997.
</TABLE>
[LOGO]
37
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIMITED TERM INTERMEDIATE
STABLE GOVERNMENT GOVERNMENT DIVERSIFIED
INCOME INCOME INCOME BOND INCOME
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $100,526,392 $ - $426,568,283 $ 167,159,152 $ 279,970,781
------------- ------------- ------------- ------------- -------------
OPERATIONS:
Net investment income
(loss)................... 6,382,602 - 26,936,358 10,574,998 18,230,620
Net realized gain (loss) from
investments sold......... (16,722) - (6,210,130) (628,563) (6,842,137)
Net change in unrealized
appreciation
(depreciation) from
investments.............. 350,666 - 4,866,761 477,226 7,049,605
------------- ------------- ------------- ------------- -------------
6,716,546 - 25,592,989 10,423,661 18,438,088
------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... (721,899) - (951,891) - (348,870)
B Shares.................... (38,565) - (583,483) - (200,173)
I Shares.................... (5,602,672) - (25,549,628) (11,271,882) (17,681,577)
Net realized gain on
investments -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - (2,307,298) -
Distribution in Excess -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
------------- ------------- ------------- ------------- -------------
(6,363,136) - (27,085,002) (13,579,180) (18,230,620)
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... 1,191,772 - 1,106,096 - 1,161,599
B Shares.................... 701,755 - 1,575,225 - 1,023,640
I Shares.................... 61,899,250 - 47,225,594 56,312,542 34,365,830
Reinvestment of distributions
-
A Shares.................... 260,034 - 712,814 - 296,467
B Shares.................... 26,240 - 358,502 - 158,950
I Shares.................... 4,614,509 - 3,133,761 13,557,797 242,372
Redemption of Shares -
A Shares.................... (5,300,964) - (5,302,226) - (1,842,981)
B Shares.................... (542,351) - (3,611,256) - (1,127,169)
I Shares.................... (39,192,241) - (76,988,609) (71,564,199) (47,759,316)
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 23,658,004 - (31,790,099) (1,693,860) (13,480,608)
------------- ------------- ------------- ------------- -------------
NET ASSETS - MAY 31, 1997..... 124,537,806 - 393,286,171 162,309,773 266,697,641
------------- ------------- ------------- ------------- -------------
OPERATIONS
Net investment income
(loss)................... 3,735,379 624,269 12,653,767 5,122,035 8,669,532
Net realized gain (loss) from
investments.............. 26,980 63,459 1,016,514 732,606 1,726,581
Net change in unrealized
appreciation
(depreciation) from
investments.............. 487,714 498,425 9,921,425 6,461,838 10,053,305
------------- ------------- ------------- ------------- -------------
4,250,073 1,186,153 23,591,706 12,316,479 20,449,418
------------- ------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... (271,166) - (401,857) - (170,262)
B Shares.................... (33,448) - (242,783) - (102,006)
I Shares.................... (3,320,634) (624,269) (11,625,983) - (8,397,264)
Net realized gain on
investments -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
------------- ------------- ------------- ------------- -------------
(3,625,248) (624,269) (12,270,623) - (8,669,532)
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... 4,165,446 - 974,916 - 654,481
B Shares.................... 633,998 - 921,312 - 582,102
I Shares.................... 31,574,103 65,113,593 251,867,687 24,955,766 150,887,618
Sale of Shares issued in
conversion - (Note 7)
I Shares.................... - 61,995,790 - - -
Reinvestment of distributions
-
A Shares.................... 114,103 - 286,250 - 141,672
B Shares.................... 28,049 - 148,361 - 85,321
I Shares.................... 2,779,760 3,408 1,199,263 - 190,816
Redemption of Shares -
A Shares.................... (7,225,122) - (2,332,961) - (713,172)
B Shares.................... (192,074) - (1,683,347) - (201,058)
I Shares.................... (22,434,033) (64,483,406) (263,158,384) (23,907,951) (152,605,583)
------------- ------------- ------------- ------------- -------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 9,444,230 62,629,385 (11,776,903) 1,047,815 (977,803)
------------- ------------- ------------- ------------- -------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $134,606,861 $ 63,191,269 $392,830,351 $ 175,674,067 $ 277,499,724
------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- -------------
<CAPTION>
TOTAL RETURN
BOND
FUND
----------------
<S> <C>
NET ASSETS - MAY 31, 1996..... $124,875,423
----------------
OPERATIONS:
Net investment income
(loss)................... 8,266,646
Net realized gain (loss) from
investments sold......... (597,996)
Net change in unrealized
appreciation
(depreciation) from
investments.............. 1,219,804
----------------
8,888,454
----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... (165,157)
B Shares.................... (126,442)
I Shares.................... (7,975,055)
Net realized gain on
investments -
A Shares.................... (7,033)
B Shares.................... (6,165)
I Shares.................... (348,086)
Distribution in Excess -
A Shares.................... -
B Shares.................... -
I Shares.................... -
----------------
(8,627,938)
----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... 1,601,894
B Shares.................... 666,573
I Shares.................... 46,717,303
Reinvestment of distributions
-
A Shares.................... 175,548
B Shares.................... 110,954
I Shares.................... 446,003
Redemption of Shares -
A Shares.................... (705,561)
B Shares.................... (627,550)
I Shares.................... (42,745,129)
----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 5,640,035
----------------
NET ASSETS - MAY 31, 1997..... 130,775,974
----------------
OPERATIONS
Net investment income
(loss)................... 4,223,363
Net realized gain (loss) from
investments.............. 1,121,115
Net change in unrealized
appreciation
(depreciation) from
investments.............. 2,127,154
----------------
7,471,632
----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... (101,117)
B Shares.................... (64,741)
I Shares.................... (4,057,505)
Net realized gain on
investments -
A Shares.................... -
B Shares.................... -
I Shares.................... -
----------------
(4,223,363)
----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... 858,749
B Shares.................... 313,164
I Shares.................... 16,636,189
Sale of Shares issued in
conversion - (Note 7)
I Shares.................... -
Reinvestment of distributions
-
A Shares.................... 98,938
B Shares.................... 54,152
I Shares.................... 309,148
Redemption of Shares -
A Shares.................... (1,110,446)
B Shares.................... (182,259)
I Shares.................... (11,955,782)
----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 5,021,853
----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $139,046,096
----------------
----------------
</TABLE>
See Notes to Financial Statements.
[LOGO]
38
<PAGE>
FOR THE YEAR ENDED MAY 31, 1997 AND THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MINNESOTA
LIMITED TERM TAX-FREE COLORADO INTERMEDIATE MINNESOTA
TAX-FREE INCOME TAX-FREE TAX-FREE TAX-FREE
FUND FUND FUND FUND FUND
------------- ------------- ------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $ - $315,969,971 $ 57,465,130 $ - $ 39,422,925
------------- ------------- ------------- ----------------- -----------------
OPERATIONS:
Net investment income
(loss)................... 789,661 16,553,234 3,158,306 - 2,095,493
Net realized gain (loss) from
investments sold......... (47,761) 1,727,823 493,059 - (141,622)
Net change in unrealized
appreciation
(depreciation) from
investments.............. 147,244 6,758,068 1,445,137 - 1,253,339
------------- ------------- ------------- ----------------- -----------------
889,144 25,039,125 5,096,502 - 3,207,210
------------- ------------- ------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... - (1,591,311) (1,470,771) - (1,322,564)
B Shares.................... - (308,558) (311,583) - (443,287)
I Shares.................... (789,661) (14,653,365) (1,375,952) - (329,642)
Net realized gain on
investments -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
Distribution in Excess -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
------------- ------------- ------------- ----------------- -----------------
(789,661) (16,553,234) (3,158,306) - (2,095,493)
------------- ------------- ------------- ----------------- -----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... - 6,496,836 1,722,891 - 3,538,661
B Shares.................... - 1,904,021 1,012,888 - 2,882,204
I Shares.................... 41,586,251 41,150,176 5,985,260 - 8,567,269
Reinvestment of distributions
-
A Shares.................... - 1,278,621 1,199,954 - 1,051,926
B Shares.................... - 224,415 217,609 - 342,375
I Shares.................... 40,619 274,923 17,000 - 59,840
Redemption of Shares -
A Shares.................... - (13,367,873) (3,001,775) - (6,143,453)
B Shares.................... - (884,326) (633,831) - (1,171,847)
I Shares.................... (736,230) (65,125,982) (4,982,823) - (1,659,308)
------------- ------------- ------------- ----------------- -----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 40,890,640 (28,049,189) 1,537,173 - 7,467,667
------------- ------------- ------------- ----------------- -----------------
NET ASSETS - MAY 31, 1997..... 40,990,123 296,406,673 60,940,499 - 48,002,309
------------- ------------- ------------- ----------------- -----------------
OPERATIONS
Net investment income
(loss)................... 981,691 7,837,350 1,578,006 1,801,340 1,274,779
Net realized gain (loss) from
investments.............. 82,890 4,797,250 472,229 219,360 194,218
Net change in unrealized
appreciation
(depreciation) from
investments.............. 541,366 4,594,336 1,487,062 9,925,254 1,330,944
------------- ------------- ------------- ----------------- -----------------
1,605,947 17,228,936 3,537,297 11,945,954 2,799,941
------------- ------------- ------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... - (767,668) (756,990) - (691,997)
B Shares.................... - (176,827) (154,146) - (250,063)
I Shares.................... (981,691) (6,892,853) (666,870) (1,801,340) (332,720)
Net realized gain on
investments -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
------------- ------------- ------------- ----------------- -----------------
(981,691) (7,837,348) (1,578,006) (1,801,340) (1,274,780)
------------- ------------- ------------- ----------------- -----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... - 3,642,919 2,820,355 - 3,948,023
B Shares.................... - 1,858,037 1,031,300 - 1,800,641
I Shares.................... 38,793,095 172,470,339 2,119,956 215,144,009 5,994,131
Sale of Shares issued in
conversion - (Note 7)
I Shares.................... - - - 204,022,181 -
Reinvestment of distributions
-
A Shares.................... - 618,970 600,688 - 513,288
B Shares.................... - 139,228 105,469 - 190,973
I Shares.................... 45,967 310,691 15,396 24,742 108,925
Redemption of Shares -
A Shares.................... - (3,454,527) (2,286,003) - (1,517,040)
B Shares.................... - (332,548) (1,040,319) - (584,375)
I Shares.................... (33,701,431) (170,779,137) (2,289,220) (220,440,029) (1,147,424)
------------- ------------- ------------- ----------------- -----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 5,137,631 4,473,972 1,077,622 198,750,903 9,307,142
------------- ------------- ------------- ----------------- -----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $ 46,752,010 $310,272,233 $ 63,977,412 $208,895,517 $ 58,834,612
------------- ------------- ------------- ----------------- -----------------
------------- ------------- ------------- ----------------- -----------------
<CAPTION>
STRATEGIC
INCOME
FUND
-----------------
<S> <C>
NET ASSETS - MAY 31, 1996..... $ 146,949,679
-----------------
OPERATIONS:
Net investment income
(loss)................... 5,736,709
Net realized gain (loss) from
investments sold......... 3,568,401
Net change in unrealized
appreciation
(depreciation) from
investments.............. 2,524,245
-----------------
11,829,355
-----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... -
B Shares.................... -
I Shares.................... (6,159,478)
Net realized gain on
investments -
A Shares.................... -
B Shares.................... -
I Shares.................... (2,495,149)
Distribution in Excess -
A Shares.................... -
B Shares.................... -
I Shares.................... -
-----------------
(8,654,627)
-----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... -
B Shares.................... -
I Shares.................... 36,138,290
Reinvestment of distributions
-
A Shares.................... -
B Shares.................... -
I Shares.................... 8,655,005
Redemption of Shares -
A Shares.................... -
B Shares.................... -
I Shares.................... (66,141,197)
-----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (21,347,902)
-----------------
NET ASSETS - MAY 31, 1997..... 128,776,505
-----------------
OPERATIONS
Net investment income
(loss)................... 3,072,213
Net realized gain (loss) from
investments.............. 2,228,474
Net change in unrealized
appreciation
(depreciation) from
investments.............. 4,612,070
-----------------
9,912,757
-----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... -
B Shares.................... -
I Shares.................... -
Net realized gain on
investments -
A Shares.................... -
B Shares.................... -
I Shares.................... -
-----------------
-
-----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... -
B Shares.................... -
I Shares.................... 19,035,100
Sale of Shares issued in
conversion - (Note 7)
I Shares.................... -
Reinvestment of distributions
-
A Shares.................... -
B Shares.................... -
I Shares.................... -
Redemption of Shares -
A Shares.................... -
B Shares.................... -
I Shares.................... (18,195,006)
-----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 840,094
-----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $ 139,529,356
-----------------
-----------------
</TABLE>
[LOGO]
39
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MODERATE GROWTH INCOME VALUGROWTH-SM-
BALANCED BALANCED INDEX EQUITY STOCK
FUND FUND FUND FUND FUND
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $398,005,320 $484,641,177 $249,644,199 $279,597,845 $176,914,679
---------------- ---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income
(loss)................... 15,258,336 11,428,255 7,884,583 7,341,585 1,201,816
Net realized gain (loss) from
investments sold......... 12,798,650 15,551,273 37,286,980 7,545,807 27,574,311
Net change in unrealized
appreciation
(depreciation) from
investments.............. 18,806,708 41,497,874 59,200,263 67,108,555 10,617,449
---------------- ---------------- ---------------- ---------------- ----------------
46,863,694 68,477,402 104,371,826 81,995,947 39,393,576
---------------- ---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... - - - (631,328) (24,656)
B Shares.................... - - - (248,650) (761)
I Shares.................... (15,207,156) (11,872,271) (5,954,051) (5,409,270) (238,700)
Net realized gain on
investments -
A Shares.................... - - - - (1,711,849)
B Shares.................... - - - - (581,032)
I Shares.................... (5,845,141) (17,285,365) (6,050,374) - (16,880,842)
Distribution in Excess -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
---------------- ---------------- ---------------- ---------------- ----------------
(21,052,297) (29,157,636) (12,004,425) (6,289,248) (19,437,840)
---------------- ---------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... - - - 13,631,365 3,013,903
B Shares.................... - - - 14,627,119 1,120,672
I Shares.................... 116,845,894 143,517,666 298,477,778 179,823,737 29,570,961
Reinvestment of distributions
-
A Shares.................... - - - 604,511 1,725,002
B Shares.................... - - - 240,847 557,001
I Shares.................... 21,052,296 29,111,750 11,725,407 2,063,741 1,397,591
Redemption of Shares -
A Shares.................... - - - (9,134,378) (2,965,382)
B Shares.................... - - - (3,238,148) (829,125)
I Shares.................... (143,034,670) (193,208,525) (139,080,889) (51,392,099) (24,835,838)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (5,136,480) (20,579,109) 171,122,296 147,226,695 8,754,785
---------------- ---------------- ---------------- ---------------- ----------------
NET ASSETS - MAY 31, 1997..... 418,680,237 503,381,834 513,133,896 502,531,239 205,625,200
---------------- ---------------- ---------------- ---------------- ----------------
OPERATIONS
Net investment income
(loss)................... 7,744,296 6,669,052 4,395,282 5,886,007 611,793
Net realized gain (loss) from
investments.............. 10,914,092 19,626,950 13,875,481 8,532,029 47,372,788
Net change in unrealized
appreciation
(depreciation) from
investments.............. 14,803,693 22,703,410 44,896,353 68,820,294 (29,548,016)
---------------- ---------------- ---------------- ---------------- ----------------
33,462,081 48,999,412 63,167,116 83,238,330 18,436,565
---------------- ---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... - - - (333,604) (40,330)
B Shares.................... - - - (150,276) -
I Shares.................... - - - (3,241,872) (385,376)
Net realized gain on
investments -
A Shares.................... - - - (650,324) (1,665,511)
B Shares.................... - - - (519,123) (588,377)
I Shares.................... - - - (6,351,116) (15,855,529)
---------------- ---------------- ---------------- ---------------- ----------------
- - - (11,246,315) (18,535,123)
---------------- ---------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... - - - 9,400,609 3,345,182
B Shares.................... - - - 9,571,315 758,002
I Shares.................... 53,119,753 71,010,663 113,723,318 585,022,196 448,951,157
Sale of Shares issued in
conversion (Note 7)
I Shares.................... - - - 477,132,068(a) 443,623,815(a)
Reinvestment of distributions
-
A Shares.................... - - - 967,080 1,671,884
B Shares.................... - - - 648,248 582,287
I Shares.................... - - - 1,366,480 45,106
Redemption of Shares -
A Shares.................... - - - (3,679,928) (2,046,748)
B Shares.................... - - - (2,203,830) (443,049)
I Shares.................... (87,015,705) (57,698,242) (114,144,392) (530,054,094) (456,155,321)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (33,895,952) 13,312,421 (421,074) 548,170,144 440,332,315
---------------- ---------------- ---------------- ---------------- ----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $418,246,366 $565,693,667 $575,879,938 1$,122,693,398 $645,858,957
---------------- ---------------- ---------------- ---------------- ----------------
---------------- ---------------- ---------------- ---------------- ----------------
<CAPTION>
DIVERSIFIED
EQUITY
FUND
----------------
<S> <C>
NET ASSETS - MAY 31, 1996..... $912,368,717
----------------
OPERATIONS:
Net investment income
(loss)................... 8,213,961
Net realized gain (loss) from
investments sold......... 23,417,472
Net change in unrealized
appreciation
(depreciation) from
investments.............. 180,774,329
----------------
212,405,762
----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... (71,788)
B Shares.................... (37,139)
I Shares.................... (5,048,533)
Net realized gain on
investments -
A Shares.................... (86,235)
B Shares.................... (95,727)
I Shares.................... (6,064,480)
Distribution in Excess -
A Shares.................... -
B Shares.................... -
I Shares.................... -
----------------
(11,403,902)
----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... 21,946,642
B Shares.................... 28,308,236
I Shares.................... 306,247,811
Reinvestment of distributions
-
A Shares.................... 157,020
B Shares.................... 128,150
I Shares.................... 11,033,830
Redemption of Shares -
A Shares.................... (2,937,661)
B Shares.................... (898,800)
I Shares.................... (205,649,293)
----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 158,335,935
----------------
NET ASSETS - MAY 31, 1997..... 1,271,706,512
----------------
OPERATIONS
Net investment income
(loss)................... 4,041,960
Net realized gain (loss) from
investments.............. 67,905,873
Net change in unrealized
appreciation
(depreciation) from
investments.............. 63,435,984
----------------
135,383,817
----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... -
B Shares.................... -
I Shares.................... -
Net realized gain on
investments -
A Shares.................... -
B Shares.................... -
I Shares.................... -
----------------
-
----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... 12,440,759
B Shares.................... 18,358,249
I Shares.................... 163,268,850
Sale of Shares issued in
conversion (Note 7)
I Shares.................... -
Reinvestment of distributions
-
A Shares.................... 271
B Shares.................... 17
I Shares.................... -
Redemption of Shares -
A Shares.................... (1,979,602)
B Shares.................... (1,824,769)
I Shares.................... (145,001,786)
----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 45,261,989
----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... 1$,452,352,318
----------------
----------------
</TABLE>
(a) Included is the unrealized appreciation on investments associated with the
common trust fund conversions. The amount of unrealized appreciation for
Income Equity, ValuGrowth Stock, Small Company Stock and Small Company
Growth Fund's is $190,138,063, $135,221,555, $6,746,038 and $40,180,323,
respectively.
See Notes to Financial Statements.
[LOGO]
40
<PAGE>
FOR THE YEAR ENDED MAY 31, 1997 AND THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL SMALL
GROWTH COMPANY COMPANY COMPANY CAP
EQUITY GROWTH STOCK GROWTH OPPORTUNITIES
FUND FUND FUND FUND FUND
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $ 739,768,444 $ 82,113,879 $135,536,752 $ 378,546,170 $ -
---------------- ---------------- ---------------- ---------------- ----------------
OPERATIONS:
Net investment income
(loss)................... (792,473) (185,228) (598,907) (2,783,457) (42,108)
Net realized gain (loss) from
investments sold......... 31,567,811 1,200,464 7,815,985 30,533,189 578,865
Net change in unrealized
appreciation
(depreciation) from
investments.............. 83,999,395 20,808,081 5,063,015 (4,867,156) 7,181,430
---------------- ---------------- ---------------- ---------------- ----------------
114,774,733 21,823,317 12,280,093 22,882,576 7,718,187
---------------- ---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
Net realized gain on
investments -
A Shares.................... (221,686) - (403,293) - (55)
B Shares.................... (95,413) - (282,900) - (25)
I Shares.................... (15,939,879) (776,305) (9,739,168) (41,561,778) (18,248)
Distribution in Excess -
A Shares.................... (14,426) - - - -
B Shares.................... - - - - -
I Shares.................... (1,037,304) - - - -
---------------- ---------------- ---------------- ---------------- ----------------
(17,308,708) (776,305) (10,425,361) (41,561,778) (18,328)
---------------- ---------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... 13,671,892 - 2,507,754 - 490,051
B Shares.................... 7,397,442 - 1,214,647 - 145,725
I Shares.................... 261,561,411 46,499,014 60,448,696 123,744,071 75,031,266
Reinvestment of distributions
-
A Shares.................... 234,009 - 400,158 - 49
B Shares.................... 95,271 - 280,822 - 25
I Shares.................... 16,970,323 761,975 1,357,055 41,561,778 15,061
Redemption of Shares -
A Shares.................... (4,688,246) - (1,071,456) - (4,799)
B Shares.................... (321,575) - (500,213) - -
I Shares.................... (213,875,777) (18,653,787) (27,553,043) (77,592,594) (5,522,886)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. 81,044,750 28,607,202 37,084,420 87,713,255 70,154,492
---------------- ---------------- ---------------- ---------------- ----------------
NET ASSETS - MAY 31, 1997..... 918,279,219 131,768,093 174,475,904 447,580,223 77,854,351
---------------- ---------------- ---------------- ---------------- ----------------
OPERATIONS
Net investment income
(loss)................... (900,439) (290,787) (588,750) (2,220,417) (232,195)
Net realized gain (loss) from
investments.............. 83,032,773 10,973,751 32,545,605 80,643,760 4,322,240
Net change in unrealized
appreciation
(depreciation) from
investments.............. (680,314) 9,748,700 (24,142,095) 7,021,293 8,438,410
---------------- ---------------- ---------------- ---------------- ----------------
81,452,020 20,431,664 7,814,760 85,444,636 12,573,455
---------------- ---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... - - - - -
B Shares.................... - - - - -
I Shares.................... - - - - -
Net realized gain on
investments -
A Shares.................... - - (330,914) - -
B Shares.................... - - (218,914) - -
I Shares.................... - - (6,845,084) (11,761,222) -
---------------- ---------------- ---------------- ---------------- ----------------
- - (7,394,912) (11,761,222) -
---------------- ---------------- ---------------- ---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... 4,925,848 - 6,268,827 - 2,584,524
B Shares.................... 2,920,794 - 540,125 - 1,617,027
I Shares.................... 98,927,876 30,222,678 76,678,755 251,673,318 97,057,172
Sale of Shares issued in
conversion (Note 7)
I Shares.................... - - 44,432,702(a) 140,478,982(a) -
Reinvestment of distributions
-
A Shares.................... 536 - 328,523 - -
B Shares.................... - - 218,391 - -
I Shares.................... - - 1,253,178 11,757,064 -
Redemption of Shares -
A Shares.................... (1,846,434) - (5,476,014) - (143,040)
B Shares.................... (554,460) - (265,110) - (49,479)
I Shares.................... (121,157,253) (16,941,098) (75,420,916) (199,669,309) (11,220,608)
---------------- ---------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (16,783,093) 13,281,580 48,558,461 204,240,055 89,845,596
---------------- ---------------- ---------------- ---------------- ----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $ 982,948,146 $165,481,337 $223,454,213 $ 725,503,692 $180,273,402
---------------- ---------------- ---------------- ---------------- ----------------
---------------- ---------------- ---------------- ---------------- ----------------
<CAPTION>
CONTRARIAN
STOCK INTERNATIONAL
FUND FUND
---------------- ----------------
<S> <C> <C>
NET ASSETS - MAY 31, 1996..... $ 37,527,639 $145,717,531
---------------- ----------------
OPERATIONS:
Net investment income
(loss)................... 161,833 588,177
Net realized gain (loss) from
investments sold......... (1,905,305) 2,473,923
Net change in unrealized
appreciation
(depreciation) from
investments.............. 1,616,215 18,182,296
---------------- ----------------
(127,257) 21,244,396
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income -
A Shares.................... (2,376) (7,226)
B Shares.................... (535) (869)
I Shares.................... (83,280) (878,290)
Net realized gain on
investments -
A Shares.................... (54,381) -
B Shares.................... (72,155) -
I Shares.................... (2,323,753) -
Distribution in Excess -
A Shares.................... - (7,004)
B Shares.................... - (843)
I Shares.................... - (851,430)
---------------- ----------------
(2,536,480) (1,745,662)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Sale of Shares -
A Shares.................... 268,444 1,308,335
B Shares.................... 67,343 697,162
I Shares.................... 4,868,878 90,113,789
Reinvestment of distributions
-
A Shares.................... 56,085 14,232
B Shares.................... 69,441 1,700
I Shares.................... 115,373 1,332,379
Redemption of Shares -
A Shares.................... (1,139,629) (333,794)
B Shares.................... (653,518) (166,748)
I Shares.................... (30,256,096) (25,724,008)
---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (26,603,679) 67,243,047
---------------- ----------------
NET ASSETS - MAY 31, 1997..... 8,260,223 232,459,312
---------------- ----------------
OPERATIONS
Net investment income
(loss)................... 21,741 165,043
Net realized gain (loss) from
investments.............. 832,468 1,703,155
Net change in unrealized
appreciation
(depreciation) from
investments.............. (621,042) (17,332,330)
---------------- ----------------
233,167 (15,464,132)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM
Net investment income -
A Shares.................... - -
B Shares.................... - -
I Shares.................... (86,876) -
Net realized gain on
investments -
A Shares.................... - -
B Shares.................... - -
I Shares.................... - -
---------------- ----------------
(86,876) -
---------------- ----------------
CAPITAL SHARE TRANSACTIONS
Sale of Shares -
A Shares.................... - 1,236,245
B Shares.................... - 396,428
I Shares.................... 1,290,248 31,908,065
Sale of Shares issued in
conversion (Note 7)
I Shares.................... - -
Reinvestment of distributions
-
A Shares.................... - -
B Shares.................... - -
I Shares.................... 9,441 -
Redemption of Shares -
A Shares.................... - (334,885)
B Shares.................... - (75,714)
I Shares.................... (4,493,498) (12,171,195)
---------------- ----------------
NET INCREASE (DECREASE) FROM
CAPITAL SHARE
TRANSACTIONS.............. (3,193,809) 20,958,944
---------------- ----------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $ 5,212,705 $237,954,124
---------------- ----------------
---------------- ----------------
</TABLE>
(a) Included is the unrealized appreciation on investments associated with the
common trust fund conversions. The amount of unrealized appreciation for
Income Equity, ValuGrowth Stock, Small Company Stock and Small Company
Growth Fund's is $190,138,063, $135,221,555, $6,746,038 and $40,180,323,
respectively.
[LOGO]
41
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
STABLE INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... $10.24 $ 0.30 $ 0.05 $(0.29) $ - $10.30
June 1, 1996 to May 31, 1997............... 10.20 0.58 0.04 (0.58) - 10.24
May 2, 1996 to May 31, 1996................ 10.22 0.02 - (0.04) - 10.20
B SHARES
June 1, 1997 to November 30, 1997.......... 10.24 0.26 0.05 (0.26) - 10.29
June 1, 1996 to May 31, 1997............... 10.20 0.52 0.02 (0.50) - 10.24
May 17, 1996 to May 31, 1996............... 10.23 0.02 (0.01) (0.04) - 10.20
I SHARES
June 1, 1997 to November 30, 1997.......... 10.24 0.30 0.04 (0.29) - 10.29
June 1, 1996 to May 31, 1997............... 10.20 0.58 0.04 (0.58) - 10.24
November 1, 1995 to May 31, 1996........... 10.72 0.28 0.03 (0.77) (0.06) 10.20
November 11, 1994 to October 31, 1995...... 10.00 0.50 0.22 - - 10.72
LIMITED TERM GOVERNMENT INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
October 1, 1997 to November 30, 1997....... 10.00 0.10 (0.15) (0.10) - 9.85
INTERMEDIATE GOVERNMENT INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 10.84 0.36 0.31 (0.35) - 11.16
June 1, 1996 to May 31, 1997............... 10.89 0.73 (0.05) (0.73) - 10.84
May 2, 1996 to May 31, 1996................ 10.89 0.03 - (0.03) - 10.89
B SHARES
June 1, 1997 to November 30, 1997.......... 10.83 0.32 0.31 (0.31) - 11.15
June 1, 1996 to May 31, 1997............... 10.89 0.64 (0.05) (0.65) - 10.83
May 17, 1996 to May 31, 1996............... 10.97 0.03 (0.08) (0.03) - 10.89
I SHARES
June 1, 1997 to November 30, 1997.......... 10.84 0.36 0.31 (0.35) - 11.16
June 1, 1996 to May 31, 1997............... 10.89 0.72 (0.04) (0.73) - 10.84
November 1, 1995 to May 31, 1996........... 12.40 0.40 0.53 (1.32) (1.12) 10.89
November 11, 1994 to October 31, 1995
(d)...................................... 11.11 0.93 0.36 - - 12.40
DIVERSIFIED BOND FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 25.60 0.80 1.16 - - 27.56
June 1, 1996 to May 31, 1997............... 26.03 1.59 0.01 (1.69) (0.34) 25.60
November 1, 1995 to May 31, 1996........... 27.92 1.07 (0.99) (1.67) (0.30) 26.03
November 11, 1994 to October 31, 1995...... 25.08 1.65 1.19 - - 27.92
INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 9.27 0.30 0.42 (0.30) - 9.69
June 1, 1996 to May 31, 1997............... 9.27 0.62 - (0.62) - 9.27
June 1, 1995 to May 31, 1996............... 9.63 0.61 (0.36) (0.61) - 9.27
June 1, 1994 to May 31, 1995............... 9.52 0.65 0.11 (0.65) - 9.63
June 1, 1993 to May 31, 1994............... 10.61 0.70 (0.83) (0.70) (0.26) 9.52
B SHARES
June 1, 1997 to November 30, 1997.......... 9.26 0.27 0.41 (0.27) - 9.67
June 1, 1996 to May 31, 1997............... 9.26 0.55 - (0.55) - 9.26
June 1, 1995 to May 31, 1996............... 9.61 0.54 (0.35) (0.54) - 9.26
June 1, 1994 to May 31, 1995............... 9.51 0.58 0.10 (0.58) - 9.61
August 5, 1993 to May 31, 1994............. 10.67 0.50 (0.90) (0.50) (0.26) 9.51
I SHARES
June 1, 1997 to November 30, 1997.......... 9.27 0.30 0.41 (0.30) - 9.68
June 1, 1996 to May 31, 1997............... 9.26 0.62 0.01 (0.62) - 9.27
June 1, 1995 to May 31, 1996............... 9.62 0.61 (0.36) (0.61) - 9.26
June 1, 1994 to May 31, 1995............... 9.51 0.65 0.11 (0.65) - 9.62
August 2, 1993 to May 31, 1994............. 10.68 0.58 (0.91) (0.58) (0.26) 9.51
</TABLE>
[LOGO]
See Notes to Financial Highlights.
42
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD AVERAGE
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S COMMISSION
INCOME (LOSS) EXPENSES EXPENSES(b) RETURN(f) RATE OMITTED) RATE(c)
--------------- ---------- ------------ ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
STABLE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 5.87%(a)(e) 0.65%(a)(e) 0.98%(a)(e) 3.49%(h) 11.36%(g) $ 9,565 N/A
June 1, 1996 to May 31,
1997................. 5.69% 0.65% 0.87% 6.24% 41.30% 12,451 N/A
May 2, 1996 to May 31,
1996................. 5.77%(a) 0.70%(a) 2.22%(a) 0.23% 109.95% 16,256 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 5.11%(a)(e) 1.40%(a)(e) 2.50%(a)(e) 3.02%(h) 11.36%(g) 1,531 N/A
June 1, 1996 to May 31,
1997................. 4.96% 1.39% 2.89% 5.43% 41.30% 1,056 N/A
May 17, 1996 to May 31,
1996................. 5.02%(a) 1.42%(a) 3.07%(a) 0.12% 109.95% 867 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 5.86%(a)(e) 0.65%(a)(e) 0.84%(a)(e) 3.39%(h) 11.36%(g) 123,511 N/A
June 1, 1996 to May 31,
1997................. 5.73% 0.65% 0.79% 6.24% 41.30% 111,030 N/A
November 1, 1995 to May
31, 1996............. 5.74%(a) 0.65%(a) 0.92%(a) 2.97% 109.95% 83,404 N/A
November 11, 1994 to
October 31, 1995..... 5.91%(a) 0.65%(a) 0.98%(a) 7.20% 115.85% 48,087 N/A
LIMITED TERM GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
October 1, 1997 to
November 30, 1997.... 5.92%(a) 0.41%(a) 0.92%(a) 1.09%(h) 33.06% 63,191 N/A
INTERMEDIATE GOVERNMENT INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 6.45%(a) 0.68%(a) 0.84%(a) 6.23%(h) 53.50% 12,337 N/A
June 1, 1996 to May 31,
1997................. 6.58% 0.68% 0.80% 6.36% 183.05% 13,038 N/A
May 2, 1996 to May 31,
1996................. 7.32%(a) 0.75%(a) 1.74%(a) 0.26% 74.64% 16,562 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 5.70%(a) 1.43%(a) 1.81%(a) 5.85%(h) 53.50% 8,614 N/A
June 1, 1996 to May 31,
1997................. 5.80% 1.42% 1.85% 5.51% 183.05% 8,970 N/A
May 17, 1996 to May 31,
1996................. 5.56%(a) 1.35%(a) 2.65%(a) (0.49%) 74.64% 10,682 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 6.45%(a) 0.68%(a) 0.72%(a) 6.23%(h) 53.50% 371,879 N/A
June 1, 1996 to May 31,
1997................. 6.57% 0.68% 0.72% 6.36% 183.05% 371,278 N/A
November 1, 1995 to May
31, 1996............. 6.71%(a) 0.71%(a) 1.17%(a) 0.60% 74.64% 399,324 N/A
November 11, 1994 to
October 31, 1995
(d).................. 7.79%(a) 0.68%(a) 0.93%(a) 11.58% 240.90% 50,213 N/A
DIVERSIFIED BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 6.11%(a)(e) 0.70%(a)(e) 1.09%(a)(e) 7.66%(h) N/A 175,674 N/A
June 1, 1996 to May 31,
1997................. 6.19% 0.70% 0.77% 6.23% 57.19% 162,310 N/A
November 1, 1995 to May
31, 1996............. 6.78%(a) 0.70%(a) 0.77%(a) 0.22% 118.92% 167,159 N/A
November 11, 1994 to
October 31, 1995..... 5.87%(a) 0.67%(a) 0.82%(a) 11.32% 58.90% 171,453 N/A
INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 6.37%(a) 0.75%(a) 1.23%(a) 7.90%(h) 69.73% 5,458 N/A
June 1, 1996 to May 31,
1997................. 6.59% 0.75% 1.17% 6.79% 231.00% 5,142 N/A
June 1, 1995 to May 31,
1996................. 6.33% 0.75% 1.16% 2.58% 270.17% 5,521 N/A
June 1, 1994 to May 31,
1995................. 7.02% 0.75% 1.24% 8.49% 98.83% 6,231 N/A
June 1, 1993 to May 31,
1994................. 6.72% 0.60% 1.16% (1.58%) 26.67% 6,177 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 5.60%(a) 1.50%(a) 2.35%(a) 7.39%(h) 69.73% 3,972 N/A
June 1, 1996 to May 31,
1997................. 5.87% 1.50% 2.25% 6.03% 231.00% 3,349 N/A
June 1, 1995 to May 31,
1996................. 5.57% 1.50% 2.27% 1.92% 270.17% 3,292 N/A
June 1, 1994 to May 31,
1995................. 6.24% 1.50% 2.21% 7.57% 98.83% 3,296 N/A
August 5, 1993 to May
31, 1994............. 5.82%(a) 1.33%(a) 2.08%(a) (4.82%)(a) 26.67% 2,605 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 6.37%(a) 0.75%(a) 0.92%(a) 7.79%(h) 69.73% 268,070 N/A
June 1, 1996 to May 31,
1997................. 6.59% 0.75% 1.02% 6.90% 231.00% 258,207 N/A
June 1, 1995 to May 31,
1996................. 6.30% 0.75% 1.06% 2.58% 270.17% 271,157 N/A
June 1, 1994 to May 31,
1995................. 7.02% 0.75% 1.06% 8.49% 98.83% 109,994 N/A
August 2, 1993 to May
31, 1994............. 6.75%(a) 0.61%(a) 1.09%(a) (4.04%)(a) 26.67% 93,665 N/A
</TABLE>
[LOGO]
43
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN BOND FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... $ 9.40 $ 0.30 $ 0.23 $(0.30) $ - $ 9.63
June 1, 1996 to May 31, 1997............... 9.40 0.60 0.03 (0.60) (0.03) 9.40
June 1, 1995 to May 31, 1996............... 9.73 0.64 (0.31) (0.64) (0.02) 9.40
June 1, 1994 to May 31, 1995............... 9.54 0.67 0.19 (0.67) - 9.73
December 31, 1993 to May 31, 1994.......... 10.00 0.27 (0.46) (0.27) - 9.54
B SHARES
June 1, 1997 to November 30, 1997.......... 9.42 0.26 0.23 (0.26) - 9.65
June 1, 1996 to May 31, 1997............... 9.40 0.53 0.05 (0.53) (0.03) 9.42
June 1, 1995 to May 31, 1996............... 9.73 0.57 (0.31) (0.57) (0.02) 9.40
June 1, 1994 to May 31, 1995............... 9.54 0.59 0.19 (0.59) - 9.73
December 31, 1993 to May 31, 1994.......... 10.00 0.24 (0.46) (0.24) - 9.54
I SHARES
June 1, 1997 to November 30, 1997.......... 9.41 0.30 0.23 (0.30) - 9.64
June 1, 1996 to May 31, 1997............... 9.40 0.60 0.04 (0.60) (0.03) 9.41
June 1, 1995 to May 31, 1996............... 9.73 0.64 (0.31) (0.64) (0.02) 9.40
June 1, 1994 to May 31, 1995............... 9.54 0.67 0.19 (0.67) - 9.73
December 31, 1993 to May 31, 1994.......... 10.00 0.27 (0.46) (0.27) - 9.54
LIMITED TERM TAX-FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 10.39 0.24 0.15 (0.24) - 10.54
October 1, 1996 to May 31, 1997............ 10.00 0.31 0.39 (0.31) - 10.39
TAX-FREE INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 10.05 0.26 0.32 (0.26) - 10.37
June 1, 1996 to May 31, 1997............... 9.78 0.54 0.27 (0.54) - 10.05
June 1, 1995 to May 31, 1996............... 9.82 0.55 (0.04) (0.55) - 9.78
June 1, 1994 to May 31, 1995............... 9.60 0.55 0.22 (0.55) - 9.82
June 1, 1993 to May 31, 1994............... 10.06 0.58 (0.39) (0.58) (0.07) 9.60
B SHARES
June 1, 1997 to November 30, 1997.......... 10.05 0.23 0.32 (0.23) - 10.37
June 1, 1996 to May 31, 1997............... 9.78 0.46 0.27 (0.46) - 10.05
June 1, 1995 to May 31, 1996............... 9.82 0.48 (0.04) (0.48) - 9.78
June 1, 1994 to May 31, 1995............... 9.60 0.48 0.22 (0.48) - 9.82
August 6, 1993 to May 31, 1994............. 10.17 0.39 (0.50) (0.39) (0.07) 9.60
I SHARES
June 1, 1997 to November 30, 1997.......... 10.06 0.26 0.32 (0.26) - 10.38
June 1, 1996 to May 31, 1997............... 9.78 0.54 0.28 (0.54) - 10.06
June 1, 1995 to May 31, 1996............... 9.82 0.55 (0.04) (0.55) - 9.78
June 1, 1994 to May 31, 1995............... 9.60 0.55 0.22 (0.55) - 9.82
August 2, 1993 to May 31, 1994............. 10.14 0.47 (0.47) (0.47) (0.07) 9.60
COLORADO TAX-FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 10.22 0.26 0.32 (0.26) - 10.54
June 1, 1996 to May 31, 1997............... 9.89 0.54 0.33 (0.54) - 10.22
June 1, 1995 to May 31, 1996............... 9.90 0.53 (0.01) (0.53) - 9.89
June 1, 1994 to May 31, 1995............... 9.69 0.48 0.21 (0.48) - 9.90
June 1, 1993 to May 31, 1994............... 10.00 0.51 (0.30) (0.51) (0.01) 9.69
B SHARES
June 1, 1997 to November 30, 1997.......... 10.23 0.23 0.33 (0.23) - 10.56
June 1, 1996 to May 31, 1997............... 9.90 0.47 0.33 (0.47) - 10.23
June 1, 1995 to May 31, 1996............... 9.91 0.46 (0.01) (0.46) - 9.90
June 1, 1994 to May 31, 1995............... 9.70 0.41 0.21 (0.41) - 9.91
August 2, 1993 to May 31, 1994............. 10.04 0.35 (0.33) (0.35) (0.01) 9.70
I SHARES
June 1, 1997 to November 30, 1997.......... 10.22 0.27 0.33 (0.27) - 10.55
June 1, 1996 to May 31, 1997............... 9.89 0.54 0.33 (0.54) - 10.22
June 1, 1995 to May 31, 1996............... 9.90 0.53 (0.01) (0.53) - 9.89
June 1, 1994 to May 31, 1995............... 9.69 0.48 0.21 (0.48) - 9.90
August 23, 1993 to May 31, 1994............ 10.22 0.39 (0.52) (0.39) (0.01) 9.69
MINNESOTA INTERMEDIATE TAX-FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
October 1, 1997 to November 30, 1997....... 10.00 0.08 (0.04) (0.08) - 9.96
</TABLE>
[LOGO]
See Notes to Financial Highlights.
44
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD AVERAGE
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S COMMISSION
INCOME (LOSS) EXPENSES EXPENSES(b) RETURN(f) RATE OMITTED) RATE(c)
--------------- ---------- ------------ ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 6.23%(a)(e) 0.75%(a)(e) 1.24%(a)(e) 5.68%(h) 18.08%(g) $ 3,014 N/A
June 1, 1996 to May 31,
1997................. 6.37% 0.75% 1.31% 6.84% 55.07% 3,086 N/A
June 1, 1995 to May 31,
1996................. 6.48% 0.76% 1.57% 3.41% 77.49% 2,010 N/A
June 1, 1994 to May 31,
1995................. 6.94% 0.64% 2.38% 9.42% 35.19% 599 N/A
December 31, 1993 to
May 31, 1994......... 6.04%(a) 0.37%(a) 13.29%(a) (4.64%) 37.50% 150 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 5.45%(a)(e) 1.50%(a)(e) 2.44%(a)(e) 5.27%(h) 18.08%(g) 2,494 N/A
June 1, 1996 to May 31,
1997................. 5.61% 1.49% 2.37% 6.27% 55.07% 2,254 N/A
June 1, 1995 to May 31,
1996................. 5.75% 1.51% 2.48% 2.63% 77.49% 2,098 N/A
June 1, 1994 to May 31,
1995................. 6.17% 1.41% 3.09% 8.59% 35.19% 919 N/A
December 31, 1993 to
May 31, 1994......... 5.40%(a) 1.11%(a) 8.29%(a) (5.23%)(a) 37.50% 186 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 6.22%(a)(e) 0.75%(a)(e) 0.85%(a)(e) 5.67%(h) 18.08%(g) 133,538 N/A
June 1, 1996 to May 31,
1997................. 6.36% 0.75% 1.05% 6.95% 55.07% 125,437 N/A
June 1, 1995 to May 31,
1996................. 6.57% 0.75% 1.07% 3.41% 77.49% 120,767 N/A
June 1, 1994 to May 31,
1995................. 7.04% 0.71% 1.17% 9.43% 35.19% 96,199 N/A
December 31, 1993 to
May 31, 1994......... 6.81%(a) 0.46%(a) 2.10%(a) (4.62%)(a) 37.50% 11,694 N/A
LIMITED TERM TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 4.51%(a) 0.65%(a) 1.06%(a) 3.77%(h) 28.79% 46,752 N/A
October 1, 1996 to May
31, 1997............. 4.45%(a) 0.65%(a) 1.27%(a) 6.99% 16.39% 40,990 N/A
TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 5.13%(a) 0.60%(a) 1.00%(a) 5.86%(h) 78.78% 30,956 N/A
June 1, 1996 to May 31,
1997................. 5.41% 0.50% 1.06% 8.43% 152.33% 29,217 N/A
June 1, 1995 to May 31,
1996................. 5.54% 0.40% 1.06% 5.29% 126.20% 33,914 N/A
June 1, 1994 to May 31,
1995................. 5.87% 0.60% 1.12% 8.42% 130.90% 30,786 N/A
June 1, 1993 to May 31,
1994................. 5.77% 0.60% 1.14% 1.74% 116.54% 34,426 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 4.36%(a) 1.35%(a) 2.12%(a) 5.47%(h) 78.78% 9,243 N/A
June 1, 1996 to May 31,
1997................. 4.64% 1.26% 2.15% 7.63% 152.33% 7,329 N/A
June 1, 1995 to May 31,
1996................. 4.77% 1.14% 2.21% 4.50% 126.20% 5,897 N/A
June 1, 1994 to May 31,
1995................. 5.05% 1.35% 2.21% 7.61% 130.90% 3,729 N/A
August 6, 1993 to May
31, 1994............. 4.76%(a) 1.31%(a) 2.24%(a) (0.98%)(a) 116.54% 2,674 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 5.13%(a) 0.60%(a) 0.92%(a) 5.86%(h) 78.78% 270,073 N/A
June 1, 1996 to May 31,
1997................. 5.40% 0.50% 1.03% 8.54% 152.33% 259,861 N/A
June 1, 1995 to May 31,
1996................. 5.57% 0.32% 1.06% 5.29% 126.20% 276,159 N/A
June 1, 1994 to May 31,
1995................. 5.84% 0.60% 1.05% 8.42% 130.90% 94,454 N/A
August 2, 1993 to May
31, 1994............. 5.71%(a) 0.60%(a) 1.10%(a) (0.21%)(a) 116.54% 102,084 N/A
COLORADO TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 5.07%(a) 0.60%(a) 1.03%(a) 5.77%(h) 34.97% 29,862 N/A
June 1, 1996 to May 31,
1997................. 5.36% 0.45% 1.14% 9.00% 129.26% 27,806 N/A
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 26,991 N/A
June 1, 1994 to May 31,
1995................. 5.10% 0.30% 1.15% 7.47% 47.88% 25,997 N/A
June 1, 1993 to May 31,
1994................. 4.94% 0.07% 1.23% 2.02% 40.92% 31,724 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 4.31%(a) 1.35%(a) 2.03%(a) 5.49%(h) 34.97% 7,538 N/A
June 1, 1996 to May 31,
1997................. 4.60% 1.20% 2.15% 8.19% 129.26% 7,218 N/A
June 1, 1995 to May 31,
1996................. 4.64% 1.05% 2.16% 4.56% 171.41% 6,400 N/A
June 1, 1994 to May 31,
1995................. 4.32% 1.05% 2.16% 6.67% 47.88% 5,198 N/A
August 2, 1993 to May
31, 1994............. 4.08%(a) 0.85%(a) 2.24%(a) 0.27%(a) 40.92% 4,494 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 5.07%(a) 0.60%(a) 1.01%(a) 5.89%(h) 34.97% 26,577 N/A
June 1, 1996 to May 31,
1997................. 5.35% 0.45% 1.13% 9.00% 129.26% 25,917 N/A
June 1, 1995 to May 31,
1996................. 5.30% 0.30% 1.13% 5.35% 171.41% 24,074 N/A
June 1, 1994 to May 31,
1995................. 5.08% 0.30% 1.16% 7.47% 47.88% 24,539 N/A
August 23, 1993 to May
31, 1994............. 5.03%(a) 0.11%(a) 1.21%(a) 0.90%(a) 40.92% 15,153 N/A
MINNESOTA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
October 1, 1997 to
November 30, 1997.... 5.10%(a) 0.60%(a) 0.92%(a) 0.95%(h) 4.57% 208,896 N/A
</TABLE>
[LOGO]
45
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
MINNESOTA TAX-FREE FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... $10.57 $ 0.27 $ 0.30 $(0.26) $ - $10.88
June 1, 1996 to May 31, 1997............... 10.30 0.54 0.27 (0.54) - 10.57
June 1, 1995 to May 31, 1996............... 10.45 0.56 (0.15) (0.56) - 10.30
June 1, 1994 to May 31, 1995............... 10.15 0.53 0.30 (0.53) - 10.45
June 1, 1993 to May 31, 1994............... 10.65 0.53 (0.31) (0.53) (0.19) 10.15
B SHARES
June 1, 1997 to November 30, 1997.......... 10.57 0.22 0.31 (0.22) - 10.88
June 1, 1996 to May 31, 1997............... 10.30 0.46 0.27 (0.46) - 10.57
June 1, 1995 to May 31, 1996............... 10.44 0.48 (0.14) (0.48) - 10.30
June 1, 1994 to May 31, 1995............... 10.15 0.45 0.29 (0.45) - 10.44
August 6, 1993 to May 31, 1994............. 10.77 0.35 (0.43) (0.35) (0.19) 10.15
I SHARES
June 1, 1997 to November 30, 1997.......... 10.57 0.27 0.30 (0.26) - 10.88
June 1, 1996 to May 31, 1997............... 10.30 0.54 0.27 (0.54) - 10.57
June 1, 1995 to May 31, 1996............... 10.45 0.56 (0.15) (0.56) - 10.30
June 1, 1994 to May 31, 1995............... 10.16 0.53 0.29 (0.53) - 10.45
August 2, 1993 to May 31, 1994............. 10.74 0.43 (0.39) (0.43) (0.19) 10.16
STRATEGIC INCOME FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 18.47 0.43 0.98 - - 19.88
June 1, 1996 to May 31, 1997............... 18.12 0.97 0.71 (0.95) (0.38) 18.47
November 1, 1995 to May 31, 1996........... 18.21 0.48 0.42 (0.76) (0.23) 18.12
November 11, 1994 to October 31, 1995...... 16.19 0.75 1.27 - - 18.21
MODERATE BALANCED FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 21.59 0.47 1.31 - - 23.37
June 1, 1996 to May 31, 1997............... 20.27 0.77 1.60 (0.76) (0.29) 21.59
November 1, 1995 to May 31, 1996........... 19.84 0.46 0.89 (0.66) (0.26) 20.27
November 11, 1994 to October 31, 1995...... 17.25 0.65 1.94 - - 19.84
GROWTH BALANCED FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 24.77 0.31 2.12 - - 27.20
June 1, 1996 to May 31, 1997............... 22.83 0.62 2.86 (0.63) (0.91) 24.77
November 1, 1995 to May 31, 1996........... 21.25 0.31 1.95 (0.51) (0.17) 22.83
November 11, 1994 to October 31, 1995...... 17.95 0.47 2.83 - - 21.25
INDEX FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 39.49 0.35 4.95 - - 44.79
June 1, 1996 to May 31, 1997............... 31.49 0.49 8.50 (0.48) (0.51) 39.49
November 1, 1995 to May 31, 1996........... 27.67 0.36 4.08 (0.43) (0.19) 31.49
November 11, 1994 to October 31, 1995...... 21.80 0.45 5.42 - - 27.67
INCOME EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 33.16 0.27 3.94 (0.24) (0.46) 36.67
June 1, 1996 to May 31, 1997............... 27.56 0.57 5.54 (0.51) - 33.16
May 2, 1996 to May 31, 1996................ 26.94 0.07 0.55 - - 27.56
B SHARES
June 1, 1997 to November 30, 1997.......... 33.09 0.13 3.95 (0.14) (0.46) 36.57
June 1, 1996 to May 31, 1997............... 27.54 0.36 5.52 (0.33) - 33.09
May 2, 1996 to May 31, 1996................ 26.94 0.02 0.58 - - 27.54
I SHARES
June 1, 1997 to November 30, 1997.......... 33.16 0.26 3.95 (0.24) (0.46) 36.67
June 1, 1996 to May 31, 1997............... 27.56 0.56 5.55 (0.51) - 33.16
November 1, 1995 to May 31, 1996........... 24.02 0.29 4.02 (0.69) (0.08) 27.56
November 11, 1994 to October 31, 1995...... 18.90 0.46 4.66 - - 24.02
</TABLE>
[LOGO]
See Notes to Financial Highlights.
46
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD AVERAGE
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S COMMISSION
INCOME (LOSS) EXPENSES EXPENSES(b) RETURN(f) RATE OMITTED) RATE(c)
--------------- ---------- ------------ ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
MINNESOTA TAX-FREE FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 4.89%(a) 0.60%(a) 1.07%(a) 5.48%(h) 33.45% $ 29,488 N/A
June 1, 1996 to May 31,
1997................. 5.11% 0.60% 1.21% 7.98% 96.68% 25,739 N/A
June 1, 1995 to May 31,
1996................. 5.26% 0.48% 1.26% 3.97% 77.10% 26,610 N/A
June 1, 1994 to May 31,
1995................. 5.25% 0.49% 1.61% 8.55% 139.33% 15,559 N/A
June 1, 1993 to May 31,
1994................. 4.92% 0.61% 1.52% 1.94% 84.23% 10,008 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... 4.13%(a) 1.35%(a) 2.07%(a) 5.08%(h) 33.45% 12,877 N/A
June 1, 1996 to May 31,
1997................. 4.35% 1.34% 2.21% 7.18% 96.68% 11,128 N/A
June 1, 1995 to May 31,
1996................. 4.51% 1.23% 2.29% 3.28% 77.10% 8,825 N/A
June 1, 1994 to May 31,
1995................. 4.52% 1.21% 2.62% 7.63% 139.33% 5,090 N/A
August 6, 1993 to May
31, 1994............. 3.99%(a) 1.31%(a) 2.45%(a) (0.58%)(a) 84.23% 2,485 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 4.90%(a) 0.60%(a) 1.04%(a) 5.48%(h) 33.45% 16,469 N/A
June 1, 1996 to May 31,
1997................. 5.12% 0.60% 1.23% 7.98% 96.68% 11,135 N/A
June 1, 1995 to May 31,
1996................. 5.24% 0.51% 1.30% 3.97% 77.10% 3,988 N/A
June 1, 1994 to May 31,
1995................. 5.29% 0.48% 1.58% 8.44% 139.33% 1,799 N/A
August 2, 1993 to May
31, 1994............. 4.90%(a) 0.61%(a) 1.54%(a) 0.29%(a) 84.23% 872 N/A
STRATEGIC INCOME FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 4.51%(a)(e) 0.80%(a)(e) 1.08%(a)(e) 7.63%(h) N/A 139,529 N/A
June 1, 1996 to May 31,
1997................. 4.38%(e) 0.81%(e) 0.98%(e) 9.58% 72.03% 128,777 $0.0720
November 1, 1995 to May
31, 1996............. 4.65%(a)(e) 0.82%(a)(e) 0.97%(a)(e) 5.14% 56.47% 146,950 0.0648
November 11, 1994 to
October 31, 1995..... 4.67%(a)(e) 0.82%(a)(e) 1.03%(a)(e) 12.48% 65.53% 136,710 N/A
MODERATE BALANCED FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 3.68%(a)(e) 0.89%(a)(e) 1.11%(a)(e) 8.24%(h) N/A 418,246 N/A
June 1, 1996 to May 31,
1997................. 3.70%(e) 0.88%(e) 1.04%(e) 12.04% 45.33% 418,680 0.0684
November 1, 1995 to May
31, 1996............. 3.95%(a)(e) 0.90%(a)(e) 1.04%(a)(e) 7.03% 52.71% 398,005 0.0658
November 11, 1994 to
October 31, 1995..... 3.76%(a)(e) 0.92%(a)(e) 1.11%(a)(e) 15.01% 62.08% 373,998 N/A
GROWTH BALANCED FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 2.45%(a)(e) 0.94%(a)(e) 1.14%(a)(e) 9.81%(h) N/A 565,694 N/A
June 1, 1996 to May 31,
1997................. 2.47%(e) 0.94%(e) 1.16%(e) 15.81% 24.33% 503,382 0.0676
November 1, 1995 to May
31, 1996............. 2.66%(a)(e) 0.98%(a)(e) 1.16%(a)(e) 10.87% 38.78% 484,641 0.0696
November 11, 1994 to
October 31, 1995..... 2.63%(a)(e) 0.99%(a)(e) 1.23%(a)(e) 18.38% 41.04% 374,892 N/A
INDEX FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 1.64%(a)(e) 0.25%(a)(e) 0.58%(a)(e) 13.42%(h) 6.85%(g) 575,880 0.0330(g)
June 1, 1996 to May 31,
1997................. 2.10% 0.25% 0.56% 29.02% 24.17% 513,134 0.0417
November 1, 1995 to May
31, 1996............. 2.25%(a) 0.31%(a) 0.57%(a) 16.27% 9.12% 249,644 0.0517
November 11, 1994 to
October 31, 1995..... 2.12%(a) 0.50%(a) 0.64%(a) 26.93% 14.48% 186,197 N/A
INCOME EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 1.53%(a)(e) 0.85%(a)(e) 0.97%(a)(e) 12.85%(h) 2.43%(g) 55,263 0.0600(g)
June 1, 1996 to May 31,
1997................. 1.95% 0.85% 0.93% 22.40% 4.76% 43,708 0.0792
May 2, 1996 to May 31,
1996................. 3.69%(a) 0.91%(a) 1.91%(a) 2.30% 0.69% 31,448 0.0942
B SHARES
June 1, 1997 to
November 30, 1997.... 0.78%(a) 1.60%(a) 1.97%(a) 12.44%(h) 2.43%(g) 45,440 0.0600(g)
June 1, 1996 to May 31,
1997................. 1.24% 1.59% 1.96% 21.48% 4.76% 33,626 0.0792
May 2, 1996 to May 31,
1996................. 2.92%(a) 1.72%(a) 2.63%(a) 2.23% 0.69% 17,318 0.0942
I SHARES
June 1, 1997 to
November 30, 1997.... 1.53%(a) 0.85%(a) 0.92%(a) 12.85%(h) 2.43%(g) 1,021,990 0.0600(g)
June 1, 1996 to May 31,
1997................. 1.97% 0.85% 0.90% 22.40% 4.76% 425,197 0.0792
November 1, 1995 to May
31, 1996............. 2.72%(a) 0.86%(a) 1.13%(a) 18.14% 0.69% 230,831 0.0942
November 11, 1994 to
October 31, 1995..... 2.51%(a) 0.85%(a) 1.12%(a) 27.09% 7.03% 49,000 N/A
</TABLE>
[LOGO]
47
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
VALUGROWTH-SM- STOCK FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... $25.06 $ 0.05 $ 2.13 $(0.05) $(2.17) $25.02
June 1, 1996 to May 31, 1997............... 22.63 0.17 4.80 (0.13) (2.41) 25.06
June 1, 1995 to May 31, 1996............... 18.82 0.13 3.93 (0.13) (0.12) 22.63
June 1, 1994 to May 31, 1995............... 17.17 0.17 1.66 (0.18) - 18.82
June 1, 1993 to May 31, 1994............... 17.27 0.10 0.19 (0.17) (0.22) 17.17
B SHARES
June 1, 1997 to November 30, 1997.......... 24.55 (0.02) 2.07 - (2.17) 24.43
June 1, 1996 to May 31, 1997............... 22.28 0.01 4.68 (0.01) (2.41) 24.55
June 1, 1995 to May 31, 1996............... 18.65 (0.02) 3.87 (0.10) (0.12) 22.28
June 1, 1994 to May 31, 1995............... 17.10 0.07 1.61 (0.13) - 18.65
August 5, 1993 to May 31, 1994............. 17.12 0.07 0.23 (0.10) (0.22) 17.10
I SHARES
June 1, 1997 to November 30, 1997.......... 25.03 (0.03) 2.20 (0.05) (2.17) 24.98
June 1, 1996 to May 31, 1997............... 22.61 0.16 4.80 (0.13) (2.41) 25.03
June 1, 1995 to May 31, 1996............... 18.80 0.14 3.91 (0.12) (0.12) 22.61
June 1, 1994 to May 31, 1995............... 17.16 0.18 1.64 (0.18) - 18.80
August 2, 1993 to May 31, 1994............. 16.91 0.13 0.46 (0.12) (0.22) 17.16
DIVERSIFIED EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 36.51 0.06 3.86 - - 40.43
June 1, 1996 to May 31, 1997............... 30.56 0.20 6.10 (0.16) (0.19) 36.51
May 2, 1996 to May 31, 1996................ 29.89 0.02 0.65 - - 30.56
B SHARES
June 1, 1997 to November 30, 1997.......... 36.31 (0.05) 3.80 - - 40.06
June 1, 1996 to May 31, 1997............... 30.54 0.03 6.00 (0.07) (0.19) 36.31
May 6, 1996 to May 31, 1996................ 29.41 0.02 1.11 - - 30.54
I SHARES
June 1, 1997 to November 30, 1997.......... 36.50 0.12 3.80 - - 40.42
June 1, 1996 to May 31, 1997............... 30.55 0.25 6.05 (0.16) (0.19) 36.50
November 1, 1995 to May 31, 1996........... 27.53 0.16 4.25 (0.42) (0.97) 30.55
November 11, 1994 to October 31, 1995...... 22.21 0.22 5.10 - - 27.53
GROWTH EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 32.49 (0.05) 2.96 - - 35.40
June 1, 1996 to May 31, 1997............... 29.08 (0.02) 4.06 (0.04) (0.59) 32.49
May 2, 1996 to May 31, 1996................ 28.50 - 0.58 - - 29.08
B SHARES
June 1, 1997 to November 30, 1997.......... 32.28 (0.15) 2.91 - - 35.04
June 1, 1996 to May 31, 1997............... 29.07 (0.13) 3.93 - (0.59) 32.28
May 6, 1996 to May 31, 1996................ 28.18 - 0.89 - - 29.07
I SHARES
June 1, 1997 to November 30, 1997.......... 32.48 (0.03) 2.95 - - 35.40
June 1, 1996 to May 31, 1997............... 29.08 (0.02) 4.05 (0.04) (0.59) 32.48
November 1, 1995 to May 31, 1996........... 26.97 - 4.09 (0.12) (1.86) 29.08
November 11, 1994 to October 31, 1995...... 22.28 (0.02) 4.71 - - 26.97
LARGE COMPANY GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 32.63 (0.07) 5.05 - - 37.61
June 1, 1996 to May 31, 1997............... 26.97 (0.03) 5.91 - (0.22) 32.63
November 1, 1995 to May 31, 1996........... 23.59 (0.04) 3.64 - (0.22) 26.97
November 11, 1994 to October 31, 1995...... 18.50 (0.05) 5.14 - - 23.59
</TABLE>
[LOGO]
See Notes to Financial Highlights.
48
<PAGE>
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD AVERAGE
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S COMMISSION
INCOME (LOSS) EXPENSES EXPENSES(b) RETURN(f) RATE OMITTED) RATE(c)
--------------- ---------- ------------ ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
VALUGROWTH-SM- STOCK FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 0.44%(a) 1.00%(a) 1.29%(a) 8.89%(h) 51.26% $ 21,768 $0.0619
June 1, 1996 to May 31,
1997................. 0.70% 1.01% 1.39% 23.32% 75.50% 18,830 0.0781
June 1, 1995 to May 31,
1996................. 0.63% 1.20% 1.42% 21.69% 105.43% 15,232 0.0603
June 1, 1994 to May 31,
1995................. 1.01% 1.20% 1.43% 10.72% 63.82% 12,138 N/A
June 1, 1993 to May 31,
1994................. 1.06% 1.20% 1.43% 1.68% 86.07% 12,922 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... (0.31%)(a) 1.75%(a) 2.41%(a) 8.50%(h) 51.26% 7,457 0.0619
June 1, 1996 to May 31,
1997................. (0.07%) 1.76% 2.48% 22.33% 75.50% 6,591 0.0781
June 1, 1995 to May 31,
1996................. (0.12%) 1.96% 2.54% 20.79% 105.43% 5,130 0.0603
June 1, 1994 to May 31,
1995................. 0.28% 1.95% 2.51% 9.88% 63.82% 3,569 N/A
August 5, 1993 to May
31, 1994............. 0.25%(a) 1.95%(a) 2.55%(a) 2.36%(a) 86.07% 2,218 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 0.31%(a) 1.00%(a) 1.20%(a) 8.86%(h) 51.26% 616,634 0.0619
June 1, 1996 to May 31,
1997................. 0.67% 1.01% 1.33% 23.30% 75.50% 180,204 0.0781
June 1, 1995 to May 31,
1996................. 0.62% 1.20% 1.32% 21.72% 105.43% 156,553 0.0603
June 1, 1994 to May 31,
1995................. 1.02% 1.20% 1.33% 10.67% 63.82% 136,589 N/A
August 2, 1993 to May
31, 1994............. 0.92%(a) 1.20%(a) 1.39%(a) 2.99%(a) 86.07% 113,061 N/A
DIVERSIFIED EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 0.60%(a)(e) 1.00%(a)(e) 1.24%(a)(e) 10.74%(h) N/A 38,559 N/A
June 1, 1996 to May 31,
1997................. 0.81%(e) 1.02%(e) 1.40%(e) 20.75% 48.08% 25,271 0.0626
May 2, 1996 to May 31,
1996................. 1.88%(a)(e) 1.52%(a)(e) 4.06%(a)(e) 2.24% 5.76% 2,699 0.0671
B SHARES
June 1, 1997 to
November 30, 1997.... (0.15%)(a)(e) 1.75%(a)(e) 2.22%(a)(e) 10.33%(h) N/A 54,111 N/A
June 1, 1996 to May 31,
1997................. 0.09%(e) 1.76%(e) 2.41%(e) 19.86% 48.08% 33,870 0.0626
May 6, 1996 to May 31,
1996................. 1.24%(a)(e) 2.37%(a)(e) 4.95%(a)(e) 3.84% 5.76% 2,447 0.0671
I SHARES
June 1, 1997 to
November 30, 1997.... 0.60%(a)(e) 1.00%(a)(e) 1.17%(a)(e) 10.74%(h) N/A 1,359,682 N/A
June 1, 1996 to May 31,
1997................. 0.79%(e) 1.02%(e) 1.31%(e) 20.76% 48.08% 1,212,565 0.0626
November 1, 1995 to May
31, 1996............. 1.00%(a)(e) 1.06%(a)(e) 1.30%(a)(e) 16.38% 5.76% 907,223 0.0671
November 11, 1994 to
October 31, 1995..... 1.01%(a)(e) 1.09%(a)(e) 1.37%(a)(e) 23.95% 10.33% 711,111 N/A
GROWTH EQUITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... (0.19%)(a)(e) 1.25%(a)(e) 1.47%(a)(e) 8.96%(h) N/A 18,492 N/A
June 1, 1996 to May 31,
1997................. (0.12%)(e) 1.30%(e) 1.95%(e) 14.11% 9.06% 14,146 0.0565
May 2, 1996 to May 31,
1996................. 0.34%(a)(e) 2.08%(a)(e) 6.40%(a)(e) 2.04% 7.39% 3,338 0.0617
B SHARES
June 1, 1997 to
November 30, 1997.... (0.94%)(a)(e) 2.00%(a)(e) 2.50%(a)(e) 8.55%(h) N/A 11,798 N/A
June 1, 1996 to May 31,
1997................. (0.82%)(e) 2.04%(e) 3.02%(e) 13.28% 9.06% 8,713 0.0565
May 6, 1996 to May 31,
1996................. (0.40%)(a)(e) 2.92%(a)(e) 7.44%(a)(e) 3.16% 7.39% 703 0.0617
I SHARES
June 1, 1997 to
November 30, 1997.... (0.17%)(a)(e) 1.25%(a)(e) 1.39%(a)(e) 8.96%(h) N/A 952,658 N/A
June 1, 1996 to May 31,
1997................. (0.09%)(e) 1.30%(e) 1.84%(e) 14.11% 9.06% 895,420 0.0565
November 1, 1995 to May
31, 1996............. 0.01%(a)(e) 1.35%(a)(e) 1.85%(a)(e) 15.83% 7.39% 735,728 0.0617
November 11, 1994 to
October 31, 1995..... (0.11%)(a)(e) 1.38%(a)(e) 1.92%(a)(e) 21.10% 8.90% 564,004 N/A
LARGE COMPANY GROWTH
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... (0.38%)(a)(e) 1.00%(a)(e) 1.10%(a)(e) 15.26%(h) 8.07%(g) 165,481 0.0558(g)
June 1, 1996 to May 31,
1997................. (0.18%) 0.99% 1.09% 21.93% 24.37% 131,768 0.0564
November 1, 1995 to May
31, 1996............. (0.30%)(a) 1.00%(a) 1.13%(a) 15.40% 16.93% 82,114 0.0616
November 11, 1994 to
October 31, 1995..... (0.23%)(a) 1.00%(a) 1.20%(a) 27.51% 31.60% 63,567 N/A
</TABLE>
[LOGO]
49
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING NET AND DIVIDENDS DISTRIBUTIONS ENDING
NET ASSET INVESTMENT UNREALIZED FROM NET FROM NET NET ASSET
VALUE PER INCOME GAIN (LOSS) ON INVESTMENT INVESTMENT VALUE PER
SHARE (LOSS) INVESTMENTS INCOME GAINS SHARE
--------- ---------- -------------- ---------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
SMALL COMPANY STOCK FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... $13.95 $(0.04) $ 0.95 $ - $(0.58) $14.28
June 1, 1996 to May 31, 1997............... 14.02 (0.04) 0.88 - (0.91) 13.95
June 1, 1995 to May 31, 1996............... 10.64 0.01 3.93 (0.03) (0.53) 14.02
June 1, 1994 to May 31, 1995............... 9.84 0.12 0.87 (0.11) (0.08) 10.64
December 31, 1993 to May 31, 1994.......... 10.00 0.07 (0.15) (0.08) - 9.84
B SHARES
June 1, 1997 to November 30, 1997.......... 13.63 (0.08) 0.92 - (0.58) 13.89
June 1, 1996 to May 31, 1997............... 13.83 (0.11) 0.82 - (0.91) 13.63
June 1, 1995 to May 31, 1996............... 10.56 (0.08) 3.90 (0.02) (0.53) 13.83
June 1, 1994 to May 31, 1995............... 9.82 0.07 0.84 (0.09) (0.08) 10.56
December 31, 1993 to May 31, 1994.......... 10.00 0.06 (0.17) (0.07) - 9.82
I SHARES
June 1, 1997 to November 30, 1997.......... 13.88 (0.04) 0.95 - (0.58) 14.21
June 1, 1996 to May 31, 1997............... 13.96 (0.04) 0.87 - (0.91) 13.88
June 1, 1995 to May 31, 1996............... 10.59 0.01 3.93 (0.03) (0.54) 13.96
June 1, 1994 to May 31, 1995............... 9.80 0.12 0.87 (0.12) (0.08) 10.59
December 31, 1993 to May 31, 1994.......... 10.00 0.08 (0.20) (0.08) - 9.80
SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 31.08 (0.11) 6.14 - (0.77) 36.34
June 1, 1996 to May 31, 1997............... 33.00 (0.18) 1.83 - (3.57) 31.08
November 1, 1995 to May 31, 1996........... 29.99 (0.07) 5.94 - (2.86) 33.00
November 11, 1994 to October 31, 1995...... 21.88 (0.11) 8.22 - - 29.99
SMALL CAP OPPORTUNITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 19.83 (0.04) 2.95 - - 22.74
June 1, 1996 to May 31, 1997............... 17.39 (0.01) 2.46 - (0.01) 19.83
B SHARES
June 1, 1997 to November 30, 1997.......... 19.75 (0.01) 2.82 - - 22.56
June 1, 1996 to May 31, 1997............... 17.41 (0.05) 2.40 - (0.01) 19.75
I SHARES
June 1, 1997 to November 30, 1997.......... 19.84 (0.03) 2.94 - - 22.75
June 1, 1996 to May 31, 1997............... 16.26 (0.01) 3.60 - (0.01) 19.84
CONTRARIAN STOCK FUND
- -------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to November 30, 1997.......... 10.25 0.07 (0.06) (0.15) - 10.11
June 1, 1996 to May 31, 1997............... 10.82 0.09 1.03 (0.08) (1.61) 10.25
June 1, 1995 to May 31, 1996............... 10.90 0.10 1.01 (0.10) (1.09) 10.82
June 1, 1994 to May 31, 1995............... 9.71 0.11 1.19 (0.11) (0.003) 10.90
December 31, 1993 to May 31, 1994.......... 10.00 0.07 (0.29) (0.07) - 9.71
INTERNATIONAL FUND
- -------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to November 30, 1997.......... 21.66 (0.06) (1.20) - - 20.40
June 1, 1996 to May 31, 1997............... 19.82 0.10 1.94 (0.20) - 21.66
November 1, 1995 to May 31, 1996........... 17.97 0.35 1.83 (0.33) - 19.82
April 12, 1995 to October 31, 1995......... 16.50 0.01 1.46 - - 17.97
B SHARES
June 1, 1997 to November 30, 1997.......... 21.55 (0.10) (1.23) - - 20.22
June 1, 1996 to May 31, 1997............... 19.71 (0.06) 1.93 (0.03) - 21.55
November 1, 1995 to May 31, 1996........... 17.91 0.25 1.83 (0.28) - 19.71
May 12, 1995 to October 31, 1995........... 17.20 0.01 0.70 - - 17.91
I SHARES
June 1, 1997 to November 30, 1997.......... 21.67 -- (1.26) - - 20.41
June 1, 1996 to May 31, 1997............... 19.84 0.09 1.94 (0.20) - 21.67
November 1, 1995 to May 31, 1996........... 17.99 0.14 2.04 (0.33) - 19.84
November 11, 1994 to October 31, 1995...... 17.28 0.09 0.62 - - 17.99
</TABLE>
[LOGO]
See Notes to Financial Highlights.
50
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS NET ASSETS AT
------------------------------------------- PORTFOLIO END OF PERIOD AVERAGE
NET INVESTMENT NET GROSS TOTAL TURNOVER (000'S COMMISSION
INCOME (LOSS) EXPENSES EXPENSES(b) RETURN(f) RATE OMITTED) RATE(c)
--------------- ---------- ------------ ------------ ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
SMALL COMPANY STOCK FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... (0.53%)(a)(e) 1.20%(a)(e) 1.51%(a)(e) 6.32%(h) 115.24%(g) $ 8,551 $0.0635(g)
June 1, 1996 to May 31,
1997................. (0.38%) 1.19% 1.67% 6.34% 210.19% 7,355 0.0774
June 1, 1995 to May 31,
1996................. 0.03% 1.21% 1.87% 38.22% 134.53% 5,426 0.0555
June 1, 1994 to May 31,
1995................. 1.14% 0.53% 2.32% 10.19% 68.09% 1,540 N/A
December 31, 1993 to
May 31, 1994......... 1.95%(a) 0.22%(a) 10.66%(a) (1.98%)(h) 14.98% 265 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... (1.28%)(a)(e) 1.95%(a)(e) 2.62%(a)(e) 5.95%(h) 115.24%(g) 5,679 0.0635(g)
June 1, 1996 to May 31,
1997................. (1.13%) 1.94% 2.73% 5.46% 210.19% 5,125 0.0774
June 1, 1995 to May 31,
1996................. (0.74%) 1.96% 2.96% 37.32% 134.53% 4,125 0.0555
June 1, 1994 to May 31,
1995................. 0.38% 1.27% 3.56% 9.31% 68.09% 963 N/A
December 31, 1993 to
May 31, 1994......... 1.27%(a) 0.98%(a) 20.87%(a) (2.77%)(a) 14.98% 195 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... (0.54%)(a)(e) 1.20%(a)(e) 1.38%(a)(e) 6.36%(h) 115.24%(g) 209,224 0.0635(g)
June 1, 1996 to May 31,
1997................. (0.38%) 1.19% 1.56% 6.30% 210.19% 161,995 0.0774
June 1, 1995 to May 31,
1996................. 0.05% 1.21% 1.60% 38.30% 134.53% 125,986 0.0555
June 1, 1994 to May 31,
1995................. 1.14% 0.52% 1.82% 10.13% 68.09% 54,240 N/A
December 31, 1993 to
May 31, 1994......... 2.03%(a) 0.20%(a) 4.33%(a) (2.93%)(a) 14.98% 9,251 N/A
SMALL COMPANY GROWTH FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... (0.72%)(a)(e) 1.25%(a)(e) 1.32%(a)(e) 19.45%(h) 53.77%(g) 725,504 0.0576(g)
June 1, 1996 to May 31,
1997................. (0.71%) 1.24% 1.29% 5.65% 124.03% 447,580 0.0565
November 1, 1995 to May
31, 1996............. (0.41%)(a) 1.25%(a) 1.29%(a) 21.43% 62.06% 378,546 0.0583
November 11, 1994 to
October 31, 1995..... (0.47%)(a) 1.25%(a) 1.35%(a) 37.07% 106.55% 278,058 N/A
SMALL CAP OPPORTUNITY FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... (0.38%)(a)(e) 1.23%(a)(e) 3.41%(a)(e) 14.67%(h) 28.71%(g) 2,987 0.0583(g)
June 1, 1996 to May 31,
1997................. (0.18%)(a)(e) 1.25%(a)(e) 10.51%(a)(e) 11.37% 34.45%(g) 522 0.0584(g)
B SHARES
June 1, 1997 to
November 30, 1997.... (1.15%)(a)(e) 1.99%(a)(e) 6.17%(a)(e) 14.23%(h) 28.71%(g) 1,714 0.0583(g)
June 1, 1996 to May 31,
1997................. (0.99%)(a)(e) 2.06%(a)(e) 27.27%(a)(e) 13.53% 34.45%(g) 158 0.0584(g)
I SHARES
June 1, 1997 to
November 30, 1997.... (0.34%)(a)(e) 1.22%(a)(e) 1.42%(a)(e) 14.67%(h) 28.71%(g) 175,571 0.0583(g)
June 1, 1996 to May 31,
1997................. (0.16%)(a)(e) 1.25%(a)(e) 1.89%(a)(e) 11.42% 34.45%(g) 77,174 0.0584(g)
CONTRARIAN STOCK FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
I SHARES
June 1, 1997 to
November 30, 1997.... 0.57%(a) 1.20%(a) 2.16%(a) (0.04%)(h) 7.40% 5,213 0.0469
June 1, 1996 to May 31,
1997................. 0.81% 1.19% 1.72% 13.02% 13.36% 8,260 0.0472
June 1, 1995 to May 31,
1996................. 0.87% 1.20% 1.45% 10.90% 28.21% 36,020 0.0467
June 1, 1994 to May 31,
1995................. 0.91% 1.12% 1.57% 13.52% 30.32% 45,832 N/A
December 31, 1993 to
May 31, 1994......... 1.82%(a) 0.62%(a) 3.52%(a) (5.35%)(a) 2.67% 4,548 N/A
INTERNATIONAL FUND
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
A SHARES
June 1, 1997 to
November 30, 1997.... 0.10%(a)(e) 1.51%(a)(e) 1.82%(a)(e) (5.77%)(h) N/A 2,932 N/A
June 1, 1996 to May 31,
1997................. 0.42%(e) 1.43%(e) 1.72%(e) 10.33% 48.23% 2,240 0.0202(g)
November 1, 1995 to May
31, 1996............. 0.92%(a)(e) 1.50%(a)(e) 2.51%(a)(e) 12.31% 14.12% 1,080 0.0325(g)
April 12, 1995 to
October 31, 1995..... 0.26%(a)(e) 1.32%(a)(e) 20.95%(a)(e) 8.91% 29.41% 216 N/A
B SHARES
June 1, 1997 to
November 30, 1997.... (0.62%)(a)(e) 2.26%(a)(e) 2.94%(a)(e) (6.13%)(h) N/A 1,860 N/A
June 1, 1996 to May 31,
1997................. (0.34%)(e) 2.18%(e) 2.76%(e) 9.44% 48.23% 1,667 0.0202(g)
November 1, 1995 to May
31, 1996............. (0.02%)(a)(e) 2.25%(a)(e) 3.11%(a)(e) 11.79% 14.12% 995 0.0325(g)
May 12, 1995 to October
31, 1995............. 0.17%(a)(e) 1.27%(a)(e) 14.57%(a)(e) 4.30 29.41% 395 N/A
I SHARES
June 1, 1997 to
November 30, 1997.... 0.14%(a)(e) 1.51%(a)(e) 1.52%(a)(e) (5.77%)(h) N/A 233,162 N/A
June 1, 1996 to May 31,
1997................. 0.40%(e) 1.43%(e) 1.44%(e) 10.27% 48.23% 228,552 0.0202(g)
November 1, 1995 to May
31, 1996............. 0.60%(a)(e) 1.50%(a)(e) 1.52%(a)(e) 12.31% 14.12% 143,643 0.0325(g)
November 11, 1994 to
October 31, 1995..... 0.54%(a)(e) 1.50%(a)(e) 1.66%(a)(e) 4.11% 29.41% 91,401 N/A
</TABLE>
[LOGO]
51
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(a) Annualized.
(b) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense ratio
in the absence of any waivers and reimbursements.
(c) For the fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose average commission per share paid to brokers on the
purchase and sale of equity securities on which commissions are charged.
(d) Adjusted for a five to one stock split.
(e) Includes expenses allocated from the Portfolios of Core Trust and/or
Schroder Core.
(f) Total return calculations do not include any sales charges. Total return
would have been lower had certain fees and/or expenses not been reduced
during the period shown (Note 3 and Exhibit A).
(g) The portfolio turnover rate and the average commission rate represents the
activity from their investments in their respective Portfolios.
(h) Not annualized.
[LOGO]
See Notes to Financial Statements.
52
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds ("Trust") is organized as a Delaware business trust and
is registered as an open-end management investment company. The Trust currently
has twenty eight separate investment portfolios. These financial statements
relate to twenty-five of those portfolios (each a "Fund" and collectively the
"Funds"), each of which is a diversified portfolio, with the exception of
Colorado Tax-Free Fund and Minnesota Tax-Free Fund. The classes of each Fund and
their date of commencement of operations are as follows:
<TABLE>
<CAPTION>
A SHARES B SHARES I SHARES
----------------- ----------------- -----------------
<S> <C> <C> <C>
Stable Income Fund...................... May 2, 1996 May 17, 1996 November 11, 1994
Limited Term Government Income Fund..... N/A N/A October 1, 1997
Intermediate Government Income Fund..... May 2, 1996 May 17, 1996 November 11, 1994
Diversified Bond Fund................... N/A N/A November 11, 1994
Income Fund............................. June 9, 1987 August 5, 1993 August 2, 1993
Total Return Bond Fund.................. December 31, 1993 December 31, 1993 December 31, 1993
Limited Term Tax-Free Fund.............. N/A N/A October 1, 1996
Tax-Free Income Fund.................... August 1, 1989 August 6, 1993 August 2, 1993
Colorado Tax-Free Fund.................. June 1, 1993 August 2, 1993 August 23, 1993
Minnesota Intermediate Tax-Free Fund.... N/A N/A October 1, 1997
Minnesota Tax-Free Fund................. January 12, 1988 August 6, 1993 August 2, 1993
Strategic Income Fund................... N/A N/A November 11, 1994
Moderate Balanced Fund.................. N/A N/A November 11, 1994
Growth Balanced Fund.................... N/A N/A November 11, 1994
Index Fund.............................. N/A N/A November 11, 1994
Income Equity Fund...................... May 2, 1996 May 2, 1996 November 11, 1994
ValuGrowth-SM- Stock Fund............... January 8, 1988 August 5, 1993 August 2, 1993
Diversified Equity Fund................. May 2, 1996 May 6, 1996 November 11, 1994
Growth Equity Fund...................... May 2, 1996 May 6, 1996 November 11, 1994
Large Company Growth Fund............... N/A N/A November 11, 1994
Small Company Stock Fund................ December 31, 1993 December 31, 1993 December 31, 1993
Small Company Growth Fund............... N/A N/A November 11, 1994
Small Cap Opportunities Fund............ October 9, 1996 November 8, 1996 August 15, 1996
Contrarian Stock Fund................... N/A N/A December 31, 1993
International Fund...................... April 12, 1995 May 12, 1995 November 11, 1994
</TABLE>
Each share of each class represents an undivided proportionate interest in the
Fund. A Shares are sold with a front-end sales charge to the general public but
do not incur distribution expenses. B Shares are sold to the general public with
a contingent deferred sales charge imposed on most redemptions made within six
years of purchase and, after a specified number of years, automatically convert
to A Shares. B Shares incur distribution expenses. I Shares are offered
primarily to fiduciary, agency and custodial clients of bank trust departments,
trust companies and their affiliates, are sold without a sales charge and do not
incur distribution expenses. Contrarian Stock Fund ceased offering A Shares and
B Shares on May 30, 1997. Conservative Balanced Fund was renamed Strategic
Income Fund.
MASTER-FEEDER ARRANGEMENT--Stable Income Fund, Total Return Bond Fund, Index
Fund, Income Equity Fund, Large Company Growth Fund, Small Company Stock Fund
and Small Company Growth Fund each seek to achieve its investment objective by
investing all of its investable assets in a separate portfolio (each a
"Portfolio" and collectively the "Portfolios") of Core Trust (Delaware) ("Core
Trust"), a registered, open-end, management investment company, that has the
same investment objective and substantially identical investment policies as the
Fund. Small Cap Opportunities Fund seeks to achieve its investment objective by
investing all of its investable assets in Schroder U. S. Smaller Companies
Portfolio, a separate diversified portfolio of Schroder Capital Funds ("Schroder
Core"), a registered, open-end, management investment company. Diversified Bond
Fund, Strategic Income Fund, Moderate Balanced Fund, Growth Balanced Fund,
Diversified Equity Fund, Growth Equity Fund and International Fund each seek to
achieve its investment objective by investing all or a part of its assets in two
or more Portfolios of Core Trust and Schroder Core. The Funds may withdraw their
investments from Core Trust and Schroder Core, respectively, at any time if the
Board determines that it is in the best interest of the Fund and its
shareholders to do so. The Funds account for their investment in a Portfolio as
a partnership investment. This is commonly referred to as a master-feeder
arrangement. The financial statements of the Portfolios are in this report and
should be read in conjunction with the Fund's financial statements.
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53
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates.
The following represents significant accounting policies of the Funds:
SECURITY VALUATION--Each Fund determines its net asset value of each Fund as of
the close of trading on the New York Stock Exchange on each Fund business day.
Funds that invest in Portfolios record their investment in the Portfolio at
value. Valuation of securities held in the Portfolios are discussed in the Notes
to the Financial Statements of the Portfolio. Securities held by other Funds
value securities purchased that mature in 60 days or less are valued at
amortized cost. Securities for which market quotations are readily available are
valued using the last reported sales price provided by independent pricing
services. If no sales are reported, the mean of the last bid and ask price is
used. Fixed income securities and other securities traded on an exchange for
which market quotations are readily available are valued at the mean of the last
bid and ask price provided by independent pricing services. If no mean price is
available, the last bid price is used. In the absence of readily available
market quotations, securities are valued at fair value determined in accordance
with procedures adopted by the Board of Trustees. Interest rate swap, cap and
floor valuations are based on interest rates quoted by independent brokers on
the date of valuation.
INTEREST, DIVIDEND INCOME AND EXPENSES--Interest income is recorded on the
accrual basis. Dividends on securities held by the Funds are recorded on the
ex-dividend date. Funds that invest in Portfolios record daily their pro rata
share of their Portfolio's income, expenses and realized gain and loss. Each
Fund accrues their own expenses.
DISTRIBUTIONS TO SHAREHOLDERS--Dividends to shareholders of net investment
income, if any, are declared daily and paid monthly by Limited Term Government
Income Fund, Income Fund, Total Return Bond Fund, Limited Term Tax-Free,
Tax-Free Income Fund, Colorado Tax-Free Fund, Minnesota Intermediate Tax-Free
Fund and Minnesota Tax-Free Fund; are declared and paid monthly by Stable Income
Fund and Intermediate Government Income Fund; are declared and paid quarterly by
Income Equity Fund, ValuGrowth-SM- Stock Fund, Small Company Stock Fund and
Contrarian Stock Fund; and are declared and paid annually by Diversified Bond
Fund, Strategic Income Fund, Moderate Balanced Fund, Growth Balanced Fund, Index
Fund, Diversified Equity Fund, Growth Equity Fund, Large Company Growth Fund,
Small Company Growth Fund, Small Cap Opportunities Fund and International Fund.
Net capital gain, if any, is distributed to shareholders at least annually.
Distributions are based on amounts calculated in accordance with applicable
federal income tax regulations, which may differ from generally accepted
accounting principles. These differences are due primarily to differing
treatments of income and gain on various investment securities held by a Fund,
timing differences and differing characterizations of distributions made by a
Fund.
PREMIUM AMORTIZATION AND DISCOUNT ACCRETION--Except for Stable Income Fund,
fixed income investments with a maturity greater than sixty days and purchased
at a premium or discount (other than original issue discount) are not amortized
or accreted. Stable Income Fund amortizes premium and accretes discount.
FEDERAL TAXES--Each Fund intends to qualify and continue to qualify each year as
a regulated investment company and distribute all of its taxable income. In
addition, by distributing in each calendar year substantially all of its net
investment income, capital gain and certain other amounts, if any, each Fund
will not be subject to a federal excise tax. Therefore, no federal income or
excise tax provision is required.
REPURCHASE AGREEMENTS--Each Fund may invest in repurchase agreements. The Funds,
through their custodian, receive delivery of the underlying collateral, whose
market value must always equal or exceed the repurchase price. The investment
adviser is responsible for determining the value of the underlying collateral at
all times. In the event of default, a Fund may have difficulties with the
disposition of such collateral.
EXPENSE ALLOCATION--The Trust accounts separately for the assets and liabilities
and operations of each Fund. Expenses that are directly attributable to more
than one Fund are allocated among the respective Funds. Expenses that are
directly attributable to a class are allocated to that class.
REALIZED GAIN AND LOSS--Security transactions are recorded on a trade date
basis. Realized gain and loss on investments sold are recorded on the basis of
identified cost.
ORGANIZATIONAL COSTS--The costs incurred by certain Funds in connection with
their organization and registration of shares have been capitalized and are
being amortized using the straight line method over a five year period beginning
on the commencement of the Funds' operations.
[LOGO]
54
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
SECURITY LOANS--The Funds may receive compensation for lending securities in the
form of fees or by retaining a portion of interest on the investment securities
or any cash received as collateral. A Fund also continues to receive interest or
dividends on the securities loaned. Security loans are secured at all times by
collateral equal to the market value of the securities loaned plus accrued
interest. Gain or loss in the market price of the securities loaned that may
occur during the term of the loan are reflected in the value of the Fund.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS AND ASSET ALLOCATION SERVICES--Effective June 1, 1997, the
investment adviser of each Fund is Norwest Investment Management, Inc.
("Adviser"), a wholly owned subsidiary of Norwest Bank Minnesota, N.A. ("
Norwest") is a subsidiary of Norwest Corporation. The Adviser receives an annual
advisory fee from each Fund based on a percentage of average daily net assets of
each Fund. No fee is directly payable by a fund to the extent the Fund is
invested in a Portfolio. With respect to Diversified Bond Fund, Strategic Income
Fund, Moderate Balanced Fund, Growth Balanced Fund, Diversified Equity Fund and
Growth Equity Fund, Norwest is entitled to receive investment advisory fees for
its Asset Allocation Services at an annual rate of 0.25% of each Fund's average
daily net assets. Refer to Exhibit A of Notes to Financial Statements for a
detail listing of the fee arrangements, related fee waivers and expense
reimbursements.
MANAGEMENT, ADMINISTRATION AND DISTRIBUTOR--The manager and distributor of the
Trust is Forum Financial Services, Inc. ("FFSI"), a registered broker-dealer and
a member of the National Association of Securities Dealers, Inc. FFSI receives
no payments for its services as distributor. Forum Administrative Services, LLC
("FAS") provides administrative services for the Funds. For their services with
respect to each Fund, Forum and FAS each receives a fee up to, an annual rate of
0.05% of the fund's average daily net assets. In addition, for the period ended
November 30, 1997, Forum charged the Trust legal expenses aggregating $4,678.
TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND CUSTODIAN--Norwest serves as the
Trust's transfer agent and dividend disbursing agent. For these services Norwest
receives a fee at an annual rate of 0.25% of the average daily net assets
attributable to each class of each Fund's shares. Norwest also serves as the
Trust's custodian and may appoint subcustodians for foreign securities and other
assets held in foreign countries. For some of the Funds, Norwest is compensated
for its custodial services at an annual rate of up to 0.075% of the Fund's
average daily net assets. No custodian fee is directly payable by a fund to the
extent the Fund is invested in a Portfolio. Refer to Exhibit A for a detail
listing of the percentages charged for transfer agent and custodian fees.
DISTRIBUTION SERVICES--The Trust has adopted a Distribution Plan (the "Plan")
with respect to B Shares of each Fund currently offering B Shares pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The Plan authorizes the
payment to FFSI of an annual distribution service fee of 0.75% of the average
daily net assets, and a maintenance fee of 0.25% of the average daily net
assets, of each Fund attributable to B Shares. No Fund incurred any maintenance
fees during the period ended November 30, 1997. The distribution payments are
used to reimburse the distributor for commissions and interest on the
outstanding balance of unreimbursed distribution charges. The Plan may be
terminated by vote of a majority of the Funds' shareholders or by vote of a
majority of the Board of Trustees who do not have any direct or indirect
financial interest in the Plan. In the event that the Plan is terminated or not
continued, at the discretion of the Board of Trustees, the Fund will continue to
pay distribution service fees to FFSI (but only with respect to sales that
occurred prior to the termination or discontinuance of the Plan) until the
earlier of (a) four years after the date of termination or discontinuance or (b)
such time as there exists no unreimbursed distribution charges attributable to
that Fund under the Plan, as calculated pursuant to the Plan. The respective
unreimbursed distribution charges at November 30,1997 were as follows: Stable
Income Fund, $18,668; Intermediate Government Income Fund, $134,196; Income
Fund, $74,949; Total Return Bond Fund, $42,963; Tax-Free Income Fund, $121,714;
Colorado Tax-Free Fund, $76,315; Minnesota Tax-Free Fund, $201,300; Income
Equity Fund, $1,087,896; ValuGrowth-SM- Stock Fund, $111,929; Diversified Equity
Fund, $1,690,383; Growth Equity Fund, $355,443; Small Company Stock Fund,
$115,581; Small Cap Opportunities Fund, $63,554; Contrarian Stock Fund $20,055;
and International Fund, $58,743.
OTHER SERVICES PROVIDERS--Effective June 1, 1997, Forum Accounting Services, LLC
("FAcS") provides portfolio accounting services to each Fund. Prior to June 1,
1997, Forum Financial Corp. ("FFC"), an affiliate of FFSI, provided portfolio
accounting services to each Fund pursuant to a separate agreement, and the terms
of the agreement were identical in all material terms.
NOTE 4. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales (including maturities) of securities
(excluding short-term investments) during the period ended November 30, 1997 are
presented in Exhibit B of the Notes to Financial Statements.
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55
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 4. SECURITIES TRANSACTIONS (CONTINUED)
The federal tax cost basis of investments, related gross unrealized appreciation
and depreciation for federal income tax purposes, and the capital loss
carryovers available to offset future capital gains, as of November 30, 1997,
are presented in Exhibit B of Notes to Financial Statements.
NOTE 5. PORTFOLIO SECURITIES LOANED
As of November 30, 1997, certain Funds had loaned securities which were
collateralized by various securities, including time deposits, commercial paper,
corporate bonds and repurchase agreements. Norwest receives transaction fees for
providing services in connection with the securities lending program. The value
of the securities on loan and the value of the related collateral were as
follows:.
<TABLE>
<CAPTION>
SECURITIES COLLATERAL
------------- -------------
<S> <C> <C>
Limited Term Government Income
Fund............................... $ 8,263,671 $ 9,096,170
Intermediate Government Income
Fund............................... 105,316,597 112,740,540
Income Fund......................... 65,935,325 72,934,613
ValuGrowth-SM- Stock Fund........... 100,174,076 109,227,837
Contrarian Stock Fund............... 426,248 498,058
</TABLE>
NOTE 6. CAPITAL SHARE TRANSACTIONS
The Trust Instrument authorizes the issuance of an unlimited number of shares of
beneficial interest without par value. Transactions of Trust shares for the past
two years or periods were as follows:
<TABLE>
<CAPTION>
OTHER SHARES ISSUED NET
SHARES SHARES FOR DIVIDEND SHARES INCREASE
YEAR/PERIOD END SUBSCRIBED ISSUED REINVESTMENT REDEEMED (DECREASE)
----------------- ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Stable Income Fund
A Shares.............................. November 30, 1997 405,240 -- 11,097 (702,894) (286,557)
A Shares.............................. May 31, 1997 116,433 -- 25,455 (519,673) (377,785)
B Shares.............................. November 30, 1997 61,586 -- 2,729 (18,685) 45,630
B Shares.............................. May 31, 1997 68,546 -- 2,568 (52,923) 18,191
I Shares.............................. November 30, 1997 3,100,734 -- 270,297 (2,214,199) 1,156,832
I Shares.............................. May 31, 1997 6,043,926 -- 451,686 (3,826,730) 2,668,882
Limited Term Government Income Fund
I Shares.............................. November 30, 1997 6,629,988 6,348,564 345 (6,565,910) 6,412,987
Intermediate Government Income Fund
A Shares.............................. November 30, 1997 92,239 -- 21,615 (210,799) (96,945)
A Shares.............................. May 31, 1997 101,046 -- 65,443 (485,037) (318,548)
B Shares.............................. November 30, 1997 82,697 -- 14,325 (152,408) (155,386)
B Shares.............................. May 31, 1997 143,867 -- 32,932 (330,050) 153,251
I Shares.............................. November 30, 1997 23,013,451 -- 108,440 (24,040,798) (918,907)
I Shares.............................. May 31, 1997 4,318,750 -- 287,444 (7,035,092) (2,428,898)
Diversified Bond Fund
I Shares.............................. November 30, 1997 946,130 -- -- (911,474) 34,656
I Shares.............................. May 31, 1997 2,161,872 -- 535,458 (2,779,738) (82,408)
Income Fund
A Shares.............................. November 30, 1997 68,852 -- 14,829 (74,759) 8,922
A Shares.............................. May 31, 1997 124,580 -- 31,742 (197,291) (40,969)
B Shares.............................. November 30, 1997 61,108 -- 8,944 (21,134) 48,918
B Shares.............................. May 31, 1997 110,114 -- 17,044 (121,013) 6,145
I Shares.............................. November 30, 1997 15,830,573 -- 19,955 (16,024,308) (173,780)
I Shares.............................. May 31, 1997 3,688,038 -- 25,996 (5,115,980) (1,401,946)
</TABLE>
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<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
OTHER SHARES ISSUED NET
SHARES SHARES FOR DIVIDEND SHARES INCREASE
YEAR/PERIOD END SUBSCRIBED ISSUED REINVESTMENT REDEEMED (DECREASE)
----------------- ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Total Return Bond Fund
A Shares.............................. November 30, 1997 90,107 -- 10,339 (115,743) (15,297)
A Shares.............................. May 31, 1997 170,319 -- 18,604 (74,659) 114,264
B Shares.............................. November 30, 1997 32,647 -- 5,649 (19,073) 19,223
B Shares.............................. May 31, 1997 70,772 -- 11,735 (66,379) 16,128
I Shares.............................. November 30, 1997 1,740,306 -- 32,245 (1,250,014) 522,537
I Shares.............................. May 31, 1997 4,957,128 -- 47,176 (4,529,523) 474,781
Limited Term Tax-Free Fund
I Shares.............................. November 30, 1997 3,693,580 -- 4,370 (3,209,202) 488,748
I Shares.............................. May 31, 1997 4,012,956 -- 3,911 (70,738) 3,946,129
Tax-Free Income Fund
A Shares.............................. November 30, 1997 355,397 -- 60,214 (337,007) 78,604
A Shares.............................. May 31, 1997 651,520 -- 128,315 (1,341,769) (561,934)
B Shares.............................. November 30, 1997 181,087 -- 13,542 (32,429) 162,200
B Shares.............................. May 31, 1997 192,278 -- 22,497 (88,841) 125,934
I Shares.............................. November 30, 1997 16,844,200 -- 30,129 (16,681,757) 192,572
I Shares.............................. May 31, 1997 4,135,427 -- 19,966 (6,547,997) (2,392,604)
Colorado Tax-Free Fund
A Shares.............................. November 30, 1997 273,114 -- 57,499 (219,286) 111,327
A Shares.............................. May 31, 1997 170,726 -- 117,975 (297,437) (8,736)
B Shares.............................. November 30, 1997 98,565 -- 10,080 (99,998) 8,647
B Shares.............................. May 31, 1997 100,299 -- 21,464 (62,801) 58,962
I Shares.............................. November 30, 1997 203,324 -- 1,471 (220,186) (15,391)
I Shares.............................. May 31, 1997 591,668 -- 1,678 (492,050) 101,296
Minnesota Intermediate Tax-Free Fund
I Shares.............................. November 30, 1997 21,708,796 21,500,494 2,487 (22,242,335) 20,969,442
Minnesota Tax-Free Fund
A Shares.............................. November 30, 1997 367,674 -- 47,534 (141,079) 274,129
A Shares.............................. May 31, 1997 337,553 -- 100,177 (585,949) (148,219)
B Shares.............................. November 30, 1997 166,962 -- 17,686 (54,335) 130,313
B Shares.............................. May 31, 1997 275,429 -- 32,596 (111,982) 196,043
I Shares.............................. November 30, 1997 555,935 -- 10,081 (106,322) 459,694
I Shares.............................. May 31, 1997 818,720 -- 5,690 (157,930) 666,480
Strategic Bond Fund
I Shares.............................. November 30, 1997 978,146 -- -- (930,927) 47,219
I Shares.............................. May 31, 1997 1,988,531 -- 488,156 (3,615,308) (1,138,621)
Moderate Balanced Fund
I Shares.............................. November 30, 1997 2,386,757 -- -- (3,884,053) (1,497,296)
I Shares.............................. May 31, 1997 5,665,636 -- 1,032,988 (6,939,729) (241,105)
Growth Balanced Fund
I Shares.............................. November 30, 1997 2,660,657 -- -- (2,182,887) 477,770
I Shares.............................. May 31, 1997 6,156,683 -- 1,275,712 (8,337,658) (905,263)
Income Equity Fund
A Shares.............................. November 30, 1997 286,545 -- 5,305 (102,845) 189,005
A Shares.............................. May 31, 1997 456,258 -- 20,378 (299,650) 176,986
B Shares.............................. November 30, 1997 285,727 -- 2,444 (61,517) 226,654
B Shares.............................. May 31, 1997 487,593 -- 8,139 (108,511) 387,221
I Shares.............................. November 30, 1997 16,299,440 13,451,708 128,714 (14,831,769) 15,048,093
I Shares.............................. May 31, 1997 6,080,949 -- 69,140 (1,703,263) 4,446,826
</TABLE>
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57
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
OTHER SHARES ISSUED NET
SHARES SHARES FOR DIVIDEND SHARES INCREASE
YEAR/PERIOD END SUBSCRIBED ISSUED REINVESTMENT REDEEMED (DECREASE)
----------------- ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ValuGrowth-SM- Stock Fund
A Shares.............................. November 30, 1997 129,479 -- 68,160 (78,997) 118,642
A Shares.............................. May 31, 1997 129,010 -- 76,755 (127,445) 78,320
B Shares.............................. November 30, 1997 29,791 -- 24,293 (17,243) 36,841
B Shares.............................. May 31, 1997 48,421 -- 25,310 (35,598) 38,133
I Shares.............................. November 30, 1997 17,333,443 17,761,393 1,785 (17,615,317) 17,481,304
I Shares.............................. May 31, 1997 1,270,685 -- 62,286 (1,057,238) 275,733
Index Fund
I Shares.............................. November 30, 1997 2,651,868 -- -- (2,787,555) (135,687)
I Shares.............................. May 31, 1997 8,601,686 -- 339,126 (3,875,130) 5,065,682
Diversified Equity Fund
A Shares.............................. November 30, 1997 311,017 -- -- (49,474) 261,543
A Shares.............................. May 31, 1997 688,908 -- 4,817 (89,797) 603,928
B Shares.............................. November 30, 1997 463,835 -- -- (45,821) 418,014
B Shares.............................. May 31, 1997 875,773 -- 3,939 (26,943) 852,769
I Shares.............................. November 30, 1997 4,207,329 -- -- (3,789,793) 417,536
I Shares.............................. May 31, 1997 9,526,934 -- 338,461 (6,338,921) 3,526,474
Growth Equity Fund
A Shares.............................. November 30, 1997 138,787 -- -- (51,870) 86,917
A Shares.............................. May 31, 1997 468,640 -- 7,941 (155,931) 320,650
B Shares.............................. November 30, 1997 82,678 -- -- (15,916) 66,762
B Shares.............................. May 31, 1997 253,247 -- 3,244 (10,702) 245,789
I Shares.............................. November 30, 1997 2,805,937 -- -- (3,457,779) (651,842)
I Shares.............................. May 31, 1997 8,961,272 -- 576,046 (7,274,990) 2,262,328
Large Company Growth Fund
I Shares.............................. November 30, 1997 859,722 -- -- (497,553) 362,169
I Shares.............................. May 31, 1997 1,625,992 -- 26,366 (658,984) 993,374
Small Company Stock Fund
A Shares.............................. November 30, 1997 419,958 -- 21,971 (370,437) 71,492
A Shares.............................. May 31, 1997 192,692 -- 30,374 (82,668) 140,398
B Shares.............................. November 30, 1997 36,291 -- 14,900 (18,327) 32,864
B Shares.............................. May 31, 1997 95,993 -- 21,752 (40,086) 77,659
I Shares.............................. November 30, 1997 4,801,100 2,892,754 84,329 (4,723,110) 3,055,073
I Shares.............................. May 31, 1997 4,669,144 -- 103,596 (2,126,789) 2,645,951
Small Company Growth Fund
I Shares.............................. November 30, 1997 10,447,050 -- 329,792 (5,217,228) 5,559,614
I Shares.............................. May 31, 1997 4,080,643 -- 1,418,007 (2,568,519) 2,930,131
Small Cap Opportunities Fund(a)
A Shares.............................. November 30, 1997 111,124 -- -- (6,098) 105,026
A Shares.............................. May 31, 1997 26,610 -- -- (276) 26,334
B Shares.............................. November 30, 1997 70,184 -- -- (2,201) 67,983
B Shares.............................. May 31, 1997 7,999 -- -- -- 7,999
I Shares.............................. November 30, 1997 4,370,383 -- -- (542,835) 3,827,548
I Shares.............................. May 31, 1997 4,193,736 -- 850 (303,869) 3,890,717
</TABLE>
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58
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
OTHER SHARES ISSUED NET
SHARES SHARES FOR DIVIDEND SHARES INCREASE
YEAR/PERIOD END SUBSCRIBED ISSUED REINVESTMENT REDEEMED (DECREASE)
----------------- ----------- ----------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Contrarian Stock Fund
A Shares.............................. November 30, 1997 -- -- -- -- --
A Shares.............................. May 31, 1997 26,510 -- 6,299 (116,769) (83,960)
B Shares.............................. November 30, 1997 -- -- -- -- --
B Shares.............................. May 31, 1997 6,710 -- 7,981 (70,733) (56,042)
I Shares.............................. November 30, 1997 123,936 -- 858 (414,601) (289,807)
I Shares.............................. May 31, 1997 504,786 -- 12,989 (3,042,555) (2,524,780)
International Fund
A Shares.............................. November 30, 1997 55,498 -- -- (15,161) 40,337
A Shares.............................. May 31, 1997 65,020 -- 731 (16,799) 48,952
B Shares.............................. November 30, 1997 18,015 -- -- (3,378) 14,637
B Shares.............................. May 31, 1997 35,177 -- 87 (8,379) 26,885
I Shares.............................. November 30, 1997 1,466,508 -- -- (588,997) 877,511
I Shares.............................. May 31, 1997 4,508,576 -- 68,362 (1,271,670) 3,305,268
</TABLE>
(a) Inception date for the Fund was June 1, 1996.
NOTE 7. COMMON TRUST FUND CONVERSION
In exchange for portfolio securities of certain common trust funds managed by
Norwest, Limited Term Government Income, Minnesota Intermediate Tax-Free, Income
Equity, ValuGrowth Stock-SM-, Small Company Stock and Small Company Growth Funds
issued I shares to the common trust funds. Immediately after this conversion,
the common trust funds distributed the I shares of these Funds to the investors
of the common trust funds and ceased operations.
NOTE 8. MERGER OF FUNDS
On May 17, 1996, Stable Income Fund, Intermediate Government Income Fund and
Income Equity Fund ("Acquiring Funds") acquired all of the assets and
liabilities of Adjusted U.S. Government Reserve Fund, Government Income Fund and
Income Stock Fund ("Target Funds"), respectively, pursuant to a plan of
reorganization and liquidation approved by the shareholders on May 13, 1996. The
acquisition was accomplished by a tax free exchange of assets and liabilities of
the individual Target Funds for shares of the existing Acquiring Fund, and the
distribution of such shares to the Target Funds' shareholders and the subsequent
termination of the respective Target Funds.
The Stable Income Fund issued the following shares in exchange for the assets
and liabilities, including unrealized appreciation and accumulated net realized
capital losses of the Adjustable U.S. Government Reserve Fund:
<TABLE>
<CAPTION>
STABLE INCOME FUND ADJUSTABLE U.S. RESERVE FUND
- ------------------------------------ --------------------------------------------------------------
MAY 17, 1996 MAY 17, 1996
SHARE SHARES PER SHARE UNREALIZED ACCUMULATED MAY 17, 1996 PER SHARE
CLASS ISSUED VALUE GAIN (LOSS) NET GAIN (LOSS) NET ASSETS VALUE
- -------- ----------- ------------ ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
A Shares 1,588,229 $10.24 $ (422,368) $ (4,968,020) $ 16,263,468 $ 9.40
B Shares 38,476 10.24 4,677 (33,733) 393,994 9.36
I Shares 1,646,222 10.24 92,660 (2,270,066) 16,857,313 9.40
------------- --------------- -------------
$ (325,031) $ (7,271,819) $ 33,514,775
------------- --------------- -------------
------------- --------------- -------------
</TABLE>
Immediately after the exchange, combined net assets were: A Shares, $16,280,721;
B Shares, $741,524; and I Shares, $82,560,262.
[LOGO]
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 8. MERGER OF FUNDS (CONTINUED)
The Intermediate Government Income Fund issued the following shares in exchange
for the assets and liabilities, including unrealized depreciation and
accumulated net realized capital losses of the Government Income Fund:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT INCOME FUND GOVERNMENT INCOME FUND
- ------------------------------------ --------------------------------------------------------------
MAY 17, 1996 MAY 17, 1996
SHARE SHARES PER SHARE UNREALIZED ACCUMULATED MAY 17, 1996 PER SHARE
CLASS ISSUED VALUE GAIN (LOSS) NET GAIN (LOSS) NET ASSETS VALUE
- -------- ----------- ------------ ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
A Shares 1,724,803 $10.97 $ 5,553,969 $ (2,372,866) $ 18,921,088 $ 8.57
B Shares 987,229 10.97 5,528 (1,329,344) 10,829,902 8.56
I Shares 32,282,358 10.97 (10,807,493) (17,017,680) 354,137,467 8.57
------------- --------------- -------------
$ (5,247,996) $(20,719,890) $383,888,457
------------- --------------- -------------
------------- --------------- -------------
</TABLE>
Immediately after the exchange, combined net assets were: A Shares, $18,958,902;
B Shares, $10,829,902; and I Shares, $401,687,938.
The Income Equity Fund issued the following shares in exchange for the assets
and liabilities, including unrealized appreciation and accumulated net realized
capital losses of the Income Stock Fund:
<TABLE>
<CAPTION>
INCOME EQUITY FUND INCOME STOCK FUND
- ------------------------------------ --------------------------------------------------------------
MAY 17, 1996 MAY 17, 1996
SHARE SHARES PER SHARE UNREALIZED ACCUMULATED MAY 17, 1996 PER SHARE
CLASS ISSUED VALUE GAIN (LOSS) NET GAIN (LOSS) NET ASSETS VALUE
- -------- ----------- ------------ ------------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
A Shares 1,053,473 $27.43 $ 6,204,781 $ 64,930 $ 28,896,764 $14.20
B Shares 602,328 27.42 2,169,156 47,510 16,515,834 14.09
I Shares 5,314,997 27.43 29,080,757 54,367 145,790,368 14.21
------------- --------------- -------------
$ 37,454,694 $ 166,807 $191,202,966
------------- --------------- -------------
------------- --------------- -------------
</TABLE>
Immediately after the exchange, combined net assets were: A Shares, $29,152,935;
B Shares, $16,971,366; and I Shares, $227,899,458.
NOTE 9. CONCENTRATION OF CREDIT RISK
The Colorado Tax-Free, Minnesota Intermediate Tax-Free and Minnesota Tax-Free
Funds invest substantially all of their assets in debt obligations of issuers
located in the states of Colorado and Minnesota, respectively. The issuers'
abilities to meet their obligations may be affected by Colorado and Minnesota
economic or political developments.
[LOGO]
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
EXHIBIT A - ADDITIONAL EXPENSE INFORMATION
<TABLE>
<CAPTION>
FEES FEES WAIVED
--------------------- ----------------------------------------------
CUSTODIAN CUSTODIAN EXPENSES TOTAL FEES
AND AND REIMBURSED WAIVED AND
TRANSFER TRANSFER BY FFSI/ EXPENSES
ADVISORY AGENT AGENT ADVISER FFSI/FAS FAS REIMBURSED
-------- --------- --------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Stable Income Fund...................... -- 0.25% $ 38,108 $ -- $ 43,917 $13,743 $ 95,768
Limited Term Government Income Fund..... 0.33% 0.25%(c) 14,250 29,543 10,550 -- 54,343
Intermediate Government Income Fund..... 0.33% 0.25% -- -- 98,373 4,907 103,280
Diversified Bond Fund................... -- 0.25% 21,650 209,590 43,667 -- 274,907
Income Fund............................. 0.50% 0.25%(c) 66,979 90,387 86,050 14,147 257,563
Total Return Bond Fund.................. -- 0.25% 15,298 -- 5,592 11,619 32,509
Limited Term Tax-Free Fund.............. 0.50% 0.25%(c) 30,653 58,190 976 -- 89,819
Tax-Free Income Fund.................... 0.50% 0.25%(c) 144,879 337,892 39,095 4,326 526,192
Colorado Tax-Free Fund.................. 0.50%(a) 0.25%(c) 45,477 78,044 18,592 -- 142,113
Minnesota Intermediate Tax-Free Fund.... 0.50% 0.25%(c) 88,299 17,653 7,098 113,050
Minnesota Tax-Free Fund................. 0.50%(a) 0.25%(c) 29,258 86,163 25,224 -- 140,645
Strategic Income Fund................... -- 0.25% 11,565 104,572 41,799 -- 157,936
Moderate Balanced Fund.................. -- 0.25% 40,893 256,038 64,749 -- 361,680
Growth Balanced Fund.................... -- 0.25% 49,417 306,742 56,886 -- 413,045
Index Fund.............................. -- 0.25% 670,621 -- 44,114 -- 714,735
Income Equity Fund...................... -- 0.25% 50,030 -- 73,838 -- 123,868
ValuGrowth-SM- Stock Fund............... 0.80%(b) 0.25%(c) 400,966 2,907 21,120 3,560 428,553
Diversified Equity Fund................. -- 0.25% 124,030 615,193 147,440 5,028 891,691
Growth Equity Fund...................... -- 0.25% 152,317 145,337 205,717 9,603 512,974
Large Company Growth Fund............... -- 0.25% 10,230 -- 16,635 -- 26,865
Small Company Stock Fund................ -- 0.25% 114,500 -- 27,600 9,144 151,244
Small Company Growth Fund............... -- 0.25% 35,778 -- -- -- 35,778
Small Cap Opportunities Fund............ -- 0.25% 89,485 -- 42,827 32,650 164,962
Contrarian Stock Fund................... 0.80%(b) 0.25%(c) 8,345 24,197 3,799 -- 36,341
International Fund...................... -- 0.25% -- -- 4,543 5,677 10,220
</TABLE>
(a) For the first $300 million of average net assets of the Fund, declining to
0.42% for average net assets in excess of $700 million.
(b) For the first $300 million of average net assets of the Fund, declining to
0.72% for average net assets in excess of $700 million.
(c) In addition to the transfer agent fee, the custody fee is 0.02% for the
first $100 million of average net assets of the Fund, declining to 0.01% for
average net assets in excess of $200 million.
[LOGO]
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
EXHIBIT B - ADDITIONAL INVESTMENT/SECURITIES INFORMATION
<TABLE>
<CAPTION>
COST PROCEEDS UNREALIZED CAPITAL
OF FROM ------------------------------------------- TAX LOSS
PURCHASES SALES APPRECIATION DEPRECIATION NET COST BASIS CARRYOVERS(a)
------------- ------------- ------------ ------------ ------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stable Income
Fund.............. $ NA $ NA $ NA $ NA $ NA $ 134,503,391 $ 7,288,543
Limited Term
Government Income
Fund.............. 35,308,248 20,518,789 511,226 12,801 498,425 62,172,747 --
Intermediate
Government Income
Fund.............. 206,755,304 205,300,855 7,906,925 1,573,241 6,333,684 381,688,193 24,283,206
Diversified Bond
Fund.............. NA NA NA NA NA 168,869,135 171,595
Income Fund........ 207,504,325 184,702,415 7,225,149 98,943 7,126,206 270,609,076 17,757,682
Total Return Bond
Fund.............. NA NA NA NA NA 138,348,209 466,225
Limited Term
Tax-Free Fund..... 17,496,239 12,181,939 689,023 413 688,610 45,429,973 --
Tax-Free Income
Fund.............. 258,667,228 227,196,607 13,792,669 NA 13,792,669 301,858,468 8,242,972
Colorado Tax-Free
Fund.............. 25,387,853 21,117,715 3,406,266 NA 3,406,266 59,104,386 836,690
Minnesota
Intermediate
Tax-Free Fund..... 9,345,241 13,021,656 9,960,804 35,550 9,925,254 196,566,929 --
Minnesota Tax-Free
Fund.............. 27,078,552 17,011,316 2,485,422 3,212 2,482,210 55,519,591 446,909
Strategic Income
Fund.............. NA NA NA NA NA 139,512,283 --
Moderate Balanced
Fund.............. NA NA NA NA NA 418,723,303 --
Growth Balanced
Fund.............. NA NA NA NA NA 565,869,693 --
Index Fund......... NA NA NA NA NA 414,115,035 --
Income Equity
Fund.............. NA NA NA NA NA 1,122,779,563 --
ValuGrowth-SM-
Stock Fund........ 202,750,945 243,599,485 174,106,863 10,995,977 163,110,886 484,164,733
Diversified Equity
Fund.............. NA NA NA NA NA 1,452,703,964 --
Growth Equity
Fund.............. NA NA NA NA NA 981,752,611 --
Large Company
Growth Fund....... NA NA NA NA NA 112,048,060 --
Small Company Stock
Fund.............. NA NA NA NA NA 216,226,986 --
Small Company
Growth Fund....... NA NA NA NA NA 724,618,197 --
Small Cap
Opportunities
Fund.............. NA NA NA NA NA 180,108,995 --
Contrarian Stock
Fund.............. 501,991 4,058,282 927,212 282,838 644,374 4,439,379 1,600,098
International
Fund.............. NA NA NA NA NA 238,370,553 658,163
</TABLE>
(a) Expiring in various years through 2005.
[LOGO]
62
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
STABLE INCOME FUND
- ----------------------------------------------------
N/A Stable Income Portfolio of Core Trust
(Delaware)(e) $ 134,865,200
---------------
TOTAL INVESTMENTS (100.0%) (COST $134,503,391)
$ 134,865,200
---------------
---------------
- ----------------------------------------------------
LIMITED TERM GOVERNMENT INCOME FUND
- ----------------------------------------------------
GOVERNMENT AGENCY BONDS & NOTES (12.9%)
FHLB (12.9%)
3,000,000 6.80%, 10/16/00 $ 3,009,930
5,000,000 6.37%, 4/9/01 5,058,700
---------------
TOTAL FHLB (COST $8,001,250) 8,068,630
---------------
GOVERNMENT AGENCY BONDS & NOTES (COST $8,001,250)
8,068,630
---------------
MORTGAGE BACKED SECURITIES (32.5%)
FNMA (15.9%)
5,003,964 Pool 251123, 7.00%, 8/1/04 5,064,963
4,994,873 Pool 401770, 6.50%, 10/1/27 4,895,755
---------------
TOTAL FNMA (COST $9,931,032) 9,960,718
---------------
GNMA (16.6%)
5,322,030 Pool 2036, 8.00%, 7/20/25 5,508,302
4,807,647 Pool 455464, 7.50%, 8/15/27 4,908,319
---------------
TOTAL GNMA (COST $10,416,408) 10,416,621
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $20,347,440)
20,377,339
---------------
U.S. TREASURY OBLIGATIONS (53.0%)
U.S. TREASURY NOTES (53.0%)
4,000,000 8.88%, 11/15/98 4,116,600
4,000,000 8.88%, 2/15/99 4,143,880
3,500,000 5.88%, 2/15/00 3,506,405
3,000,000 6.13%, 7/31/00(d) 3,024,180
3,500,000 5.63%, 11/30/00 3,481,415
4,000,000 5.50%, 12/31/00 3,964,120
5,000,000 6.63%, 3/31/02 5,143,950
3,000,000 7.00%, 7/15/06(d) 3,218,130
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM GOVERNMENT INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS (continued)
U.S. TREASURY NOTES (continued)
<TABLE>
<C> <S> <C>
2,500,000 6.50%, 10/15/06(d) $ 2,600,473
---------------
TOTAL U.S. TREASURY NOTES (COST $32,798,004)
33,199,153
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $32,798,004)
33,199,153
---------------
SHORT-TERM HOLDINGS (1.6%)
1,026,050 Dreyfus Treasury Cash Management A
Series Fund (cost $1,026,050) 1,026,050
---------------
TOTAL INVESTMENTS (100.0%) (COST $62,172,744)
$ 62,671,172
---------------
---------------
- ----------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND
- ----------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (6.3%)
6,298,383 AMBS, Series AS-1006 1, 7.49%, 1/25/12 $ 6,610,349
4,592,682 AMBS, Series BA-1001 1, 6.92%, 1/25/03 4,652,961
3,217,305 AMBS, Series CS-1001 1, 7.19%, 7/25/01 3,284,164
9,416,000 AMBS, Series CS-1001 1, 7.42%, 7/25/02 9,751,445
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$24,033,798) 24,298,919
---------------
GOVERNMENT AGENCY BONDS & NOTES (8.1%)
FHLB (6.5%)
5,000,000 7.59%, 3/10/05 5,437,900
9,000,000 6.41%, 10/11/05 9,148,860
10,000,000 6.44%, 12/12/11 10,574,100
---------------
TOTAL FHLB (COST $24,331,581) 25,160,860
---------------
FHLMC (1.1%)
4,000,000 8.07%, 1/27/05 (cost $4,583,750) 4,432,640
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
63
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
GOVERNMENT AGENCY BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
OTHER (0.5%)
2,000,000 TVA, 8.38%, 10/1/99 (cost $2,041,140) $ 2,080,800
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES (COST $30,956,471)
31,674,300
---------------
MORTGAGE BACKED SECURITIES (17.6%)
FHLMC (8.2%)
23,264,479 Gold Pool C80461, 7.00%, 12/1/26 23,388,014
8,685,906 Gold Pool D70924, 6.50%, 5/1/26 8,550,232
---------------
TOTAL FHLMC (COST $31,262,658) 31,938,246
---------------
FNMA (4.2%)
10,211,904 Pool 73595, 7.43%, 8/1/06 10,956,965
4,963,698 Pool 73806, 7.30%, 12/1/11 5,298,151
---------------
TOTAL FNMA (COST $15,396,859) 16,255,116
---------------
GNMA (5.2%)
19,532,165 Pool 445071, 7.50%, 1/15/27 (cost
$19,538,268) 19,959,528
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $66,197,785)
68,152,890
---------------
U.S. TREASURY OBLIGATIONS (67.8%)
U.S. TREASURY BONDS (11.7%)
14,000,000 11.75%, 2/15/01(d) 16,451,400
13,000,000 12.75%, 11/15/10 18,506,540
8,000,000 10.38%, 11/15/12 10,573,200
---------------
TOTAL U.S. TREASURY BONDS (COST $45,201,636)
45,531,140
---------------
U.S. TREASURY NOTES (56.1%)
13,000,000 9.13%, 5/15/99 13,596,180
25,000,000 7.75%, 11/30/99 (d) 25,921,000
8,000,000 8.50%, 11/15/00 8,574,080
10,000,000 6.63%, 6/30/01 (d) 10,249,700
38,500,000 7.50%, 11/15/01 40,712,595
2,000,000 6.25%, 2/28/02 (d) 2,029,440
15,000,000 7.88%, 11/15/04 (d) 16,696,650
42,000,000 6.88%, 5/15/06 (d) 44,693,880
33,000,000 7.00%, 7/15/06 (d) 35,399,430
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERMEDIATE GOVERNMENT INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS (continued)
U.S. TREASURY NOTES (continued)
<TABLE>
<C> <S> <C>
19,000,000 6.50%, 10/15/06 (d) $ 19,763,610
---------------
TOTAL U.S. TREASURY NOTES (COST $214,570,440)
217,636,565
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $259,772,076)
263,167,705
---------------
SHORT-TERM HOLDINGS (0.2%)
728,063 Dreyfus Treasury Cash Management A
Series Fund (cost $728,063) 728,063
---------------
TOTAL INVESTMENTS (100.0%) (COST $381,688,193)
$ 388,021,877
---------------
---------------
- ----------------------------------------------------
DIVERSIFIED BOND FUND
- ----------------------------------------------------
N/A Positive Return Portfolio of Core Trust
(Delaware)(e) $ 58,477,929
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(e) 29,274,189
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware)(e) 87,652,306
---------------
TOTAL INVESTMENTS (100.0%) (COST $169,669,343)
$ 175,404,424
---------------
---------------
- ----------------------------------------------------
INCOME FUND
- ----------------------------------------------------
ASSET BACKED SECURITIES (13.9%)
4,998,518 First Plus Home Loan Trust, Series
1996-2 A5, 7.47%, 2/20/11 $ 5,124,930
7,444,432 First USA Consumer Trust, A, 6.50%,
9/15/02 7,456,068
7,000,000 Green Tree Financial Corp., Series
1997-6 A7, 7.14%, 1/15/29 7,166,250
9,473,209 Mid-State Trust, Series 1997-6 A1,
7.34%, 7/1/35 9,791,083
6,600,000 PSB Lending Trust, Series 1997-2 A5,
7.63%, 11/20/23 6,726,845
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
64
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
ASSET BACKED SECURITIES (continued)
<TABLE>
<C> <S> <C>
2,300,000 Pacific Gas & Electric, Series 1997-1
A3, 6.15%, 6/25/00 $ 2,298,921
---------------
TOTAL ASSET BACKED SECURITIES (COST $37,796,265)
38,564,097
---------------
CORPORATE BONDS & NOTES (34.3%)
5,000,000 ABN Amro Bank, Chicago, 7.55%, 6/28/06 5,316,850
6,000,000 AMBAC, Inc., 9.38%, 8/1/11 7,482,720
6,000,000 American Home Products Corp., 7.25%,
3/1/23 6,285,420
3,000,000 Bayerische Landesbank, New York, 6.20%,
2/9/06 2,961,690
5,000,000 Bear Stearns Cos., Inc., 7.00%, 3/1/07 5,125,600
7,000,000 Campbell Soup Co., 8.88%, 5/1/21 8,756,580
4,000,000 Caterpillar Inc., 9.38%, 3/15/21 5,166,360
5,000,000 Consolidated Natural Gas Co., 6.63%,
12/1/08 5,079,900
4,800,000 Dillard Department Stores, Inc., 9.13%,
8/1/11 5,874,336
6,000,000 Ford Motor Co., 9.50%, 9/15/11 7,489,080
6,000,000 General Electric Capital Corp., 8.70%,
2/15/03 6,671,220
7,000,000 Lehman Brothers Holdings, Inc., 8.50%,
8/1/15 8,030,540
5,000,000 Oracle Corp., 6.72%, 2/15/04 5,067,450
5,000,000 Royal Carribbean Cruises, 7.25%, 8/15/06 5,175,050
5,000,000 Tosco Corp., 7.80%, 1/1/27 5,467,100
5,000,000 Wal-Mart Stores, Inc., 9.10%, 7/15/00 5,358,400
---------------
TOTAL CORPORATE BONDS & NOTES (COST $92,453,102)
95,308,296
---------------
MORTGAGE BACKED SECURITIES (13.5%)
FHLMC (6.6%)
9,693,533 Gold Pool C80461, 7.00%, 12/1/26 9,745,006
8,685,906 Gold Pool D70924, 6.50%, 5/1/26 8,550,232
---------------
TOTAL FHLMC (COST $17,844,384) 18,295,238
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MORTGAGE BACKED SECURITIES (continued)
<TABLE>
<C> <S> <C>
FNMA (6.9%)
9,554,302 Pool 250547, 6.00%, 3/1/26 $ 9,178,149
8,969,003 Pool 375112, 7.78%, 5/1/15 9,965,818
---------------
TOTAL FNMA (COST $18,550,313) 19,143,967
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $36,394,697)
37,439,205
---------------
MUNICIPAL NOTES (1.5%)
4,000,000 Denver, CO, City and County SD #1, RV,
AMBAC insured, 6.49%, 12/15/02 (cost
$4,000,000) 4,049,360
---------------
U.S. TREASURY OBLIGATIONS (36.2%)
U.S. TREASURY BONDS (15.0%)
6,500,000 10.75%, 5/15/03(d) 7,962,175
8,000,000 10.38%, 11/15/12(d) 10,573,200
7,000,000 8.75%, 5/15/17(d) 9,076,760
12,000,000 7.50%, 11/15/24(d) 14,172,480
---------------
TOTAL U.S. TREASURY BONDS (COST $46,968,045)
41,784,615
---------------
U.S. TREASURY NOTES (21.2%)
3,000,000 7.75%, 11/30/99 3,110,520
8,000,000 8.50%, 11/15/00 8,574,080
13,000,000 7.88%, 8/15/01(d) 13,863,850
5,500,000 7.50%, 11/15/01(d) 5,816,086
4,000,000 7.25%, 5/15/04 4,295,120
4,000,000 7.88%, 11/15/04(d) 4,452,440
7,000,000 7.00%, 7/15/06(d) 7,508,970
4,000,000 6.50%, 10/15/06(d) 4,160,760
5,000,000 9.88%, 11/15/15 7,042,000
---------------
TOTAL U.S. TREASURY NOTES (COST $51,231,084)
58,823,826
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $98,199,129)
100,608,441
---------------
SHORT-TERM HOLDINGS (0.6%)
1,765,883 Dreyfus Cash Management Fund (cost
$1,765,883) 1,765,883
---------------
TOTAL INVESTMENTS (100.0%) (COST $270,609,076)
$ 277,735,282
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
65
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TOTAL RETURN BOND FUND
- ----------------------------------------------------
N/A Total Return Bond Portfolio of Core
Trust (Delaware)(e) $ 139,644,765
---------------
TOTAL INVESTMENTS (100.0%) (COST $138,348,209)
$ 139,644,765
---------------
---------------
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND
- ----------------------------------------------------
MUNICIPAL BONDS (96.8%)
ALABAMA (2.2%)
1,000,000 Birmingham Jefferson, AL, Civic Center
Authority Special Tax Bonds, Series B,
7.10%, 1/1/01 $ 1,022,650
---------------
ALASKA (1.9%)
1,000,000 North Slope Boro, AK, GO Bonds, Capital
Appreciation, Series A, MBIA insured,
0.00% (4.55% effective yield), 6/30/00 893,890
---------------
ARIZONA (5.5%)
1,150,000 Maricopa County, AZ, IDA, MFHR Bonds,
Advantage Point Projects, Series A,
5.75%, 7/1/01 1,172,299
1,305,000 Mesa, AZ, IDA, Healthcare Facilities RV,
Western Health Network B-1, BIG
insured, 7.50%, 1/1/04 1,376,357
---------------
2,548,656
---------------
COLORADO (11.6%)
200,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
4.80%, 12/1/03 200,050
385,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.00%, 12/1/05 385,628
1,000,000 Castle Rock Ranch, CO, PFA RV, 5.70%,
12/1/06(b) 1,061,060
250,000 Colorado HFA, SFM RV, Series C, 5.00%,
5/1/05 251,685
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
COLORADO (continued)
<TABLE>
<C> <S> <C>
165,000 Colorado HFA, SFM RV, Series D-I,
remarketed 7/15/94, 6.25%, 12/1/01 $ 170,966
185,000 Colorado HFA, SFM RV, Series D-II,
remarketed 11/15/94, 6.38%, 12/1/01 191,765
355,000 Denver, CO, City & County RV, Helen G.
Bonfils Foundation Project, Series B,
9.50%, 12/1/01 421,871
1,250,000 Larimer County, CO, SD #R1, Poudre COP,
Educational Facilites RV, Colorado
Association School Board Lease,
10.00%, 12/1/01 1,512,338
1,070,000 Tellar County, CO, COP, 5.50% VR,
12/1/09 1,105,342
---------------
5,300,705
---------------
FLORIDA (3.2%)
480,000 Broward County, FL, Resource Recovery
RV, SES Broward Co. LP South Project,
7.95%, 12/1/08 523,363
1,295,000 Plantation, FL, Water & Sewer RV,
Capital Appreciation, MBIA insured,
0.00% (5.68% effective yield), 3/1/03 967,352
---------------
1,490,715
---------------
IDAHO (4.9%)
1,200,000 Boise City, ID, HFA RV, Hobbler Place
Project, 5.25%, 2/1/02(f) 1,209,288
500,000 Pocatello, ID, IDA RV, Allocation Tax
Increment Bonds, Series B, 7.25%,
12/1/08 536,070
100,000 Post Falls, ID, Urban Renewal Agency RV,
Tax Increment, 4.00%, 8/1/98 100,070
100,000 Post Falls, ID, Urban Renewal Agency RV,
Tax Increment, 4.35%, 8/1/00 100,157
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
66
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
IDAHO (continued)
<TABLE>
<C> <S> <C>
335,000 Post Falls, ID, Urban Renewal Agency RV,
Tax Increment, 4.45%, 8/1/01 $ 335,600
---------------
2,281,185
---------------
ILLINOIS (7.2%)
1,185,000 Des Plaines, IL, Hospital Facilities RV,
Holy Family Hospital, MBIA insured,
10.63%, 1/1/03, P/R 7/1/02 @ 100 1,402,424
500,000 Illinois Health Facilities Authority RV,
Alexian Brothers Medical Center
Project, 7.00%, 1/1/03 534,700
500,000 Illinois State, Sales Tax RV, Series E,
7.10%, 6/15/98 508,800
500,000 Metropolitan Pier & Exposition
Authority, IL, Dedicated State Tax RV,
McCormick Place Expansion Project,
Series A, AMBAC insured, 4.90%,
12/15/03 512,870
75,000 Waukegan, IL, Board Libor Trustees,
Economic Development RV, Libor
Building Notes, 9.00%, 1/1/99 78,638
80,000 Waukegan, IL, Board Libor Trustees,
Economic Development RV, Libor
Building Notes, 9.00%, 1/1/00 86,754
85,000 Waukegan, IL, Board Libor Trustees,
Economic Development RV, Libor
Building Notes, 8.00%, 1/1/01 92,774
95,000 Waukegan, IL, Board Libor Trustees,
Economic Development RV, Libor
Building Notes, 7.50%, 1/1/02 103,978
---------------
3,320,938
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
IOWA (0.6%)
275,000 Ottumwa, IA, Hospital Facilities RV,
Ottumwa Regional Health Center, Inc.,
9.50%, 11/1/00 $ 282,844
---------------
KANSAS (1.3%)
175,000 Lawrence, KS, Hospital RV, Lawrence
Memorial Hospital, 5.00%, 7/1/02 179,060
225,000 Lawrence, KS, Hospital RV, Lawrence
Memorial Hospital, 5.00%, 7/1/03 230,108
185,000 Lawrence, KS, Hospital RV, Lawrence
Memorial Hospital, 5.00%, 7/1/04 188,791
---------------
597,959
---------------
LOUISIANA (2.8%)
400,000 Louisiana PFA, MFHR Bonds, Edgewood
Apartments, FNMA insured, 5.70%,
6/1/05 416,744
745,000 Shreveport, LA, GO Bonds, MBIA insured,
8.00%, 6/1/03 876,925
---------------
1,293,669
---------------
MAINE (1.2%)
535,000 State Street Housing Preservation Corp.,
ME, MFHR Bonds, Project Acquisition,
100 State Street, Series A, HUD
Section 8 LOC, 7.20%, 1/1/02 567,077
---------------
MICHIGAN (4.8%)
600,000 Battle Creek, MI, Ecomomic Development
RV, Kellogg Co. Project, remarketed
8/1/97, 5.13%, 2/1/09 600,948
300,000 Lakeview, MI, Community Schools, GO
Bonds, FGIC insured, 6.50%, 5/1/05 337,704
305,000 Lakeview, MI, Community Schools, GO
Bonds, FGIC insured, 6.50%, 5/1/06 345,541
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
67
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MICHIGAN (continued)
<TABLE>
<C> <S> <C>
395,000 Merrill, MI, Community SD, GO Bonds,
FGIC insured, 6.50%, 5/1/05 $ 443,850
450,000 Schoolcraft, MI, Community SD, GO Bonds,
FGIC insured, 6.50%, 5/1/04 501,840
---------------
2,229,883
---------------
MINNESOTA (2.3%)
750,000 Minneapolis, MN, Temporary Package Ramp,
Transportation RV, Series A, 4.75%,
6/1/00 750,278
160,000 St. Cloud, MN, COP, 5.00%, 12/1/03 159,998
170,000 St. Cloud, MN, COP, 5.10%, 12/1/04 169,998
---------------
1,080,274
---------------
MISSOURI (1.4%)
605,000 St. Louis, MO, Regional Convention &
Sports Complex Authority RV, Series C,
7.75%, 8/15/01 635,928
---------------
NEVADA (3.5%)
1,000,000 Clark County, NV, Flood Control, GO
Bonds, AMBAC insured, 6.10%, 11/1/02 1,075,050
500,000 Clark County, NV, SD, GO Bonds, Series
A, MBIA insured, 7.00%, 6/1/05, P/R
6/1/01 @ 101 549,120
---------------
1,624,170
---------------
NEW YORK (8.2%)
840,000 County of Westchester, NY, IDA RV, AGR
Realty Co. Project, 5.75%, 1/1/02(f) 868,342
485,000 New York State Dorm Authority RV,
Capital Appreciation, Series A, FSA
insured, 0.00% (5.29% effective
yield), 7/1/25 328,389
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
NEW YORK (continued)
<TABLE>
<C> <S> <C>
1,850,000 New York State HFA, EFA RV, State
University Construction, ETM, COLL
USG, 6.50%, 11/1/06 $ 2,009,581
500,000 Syracuse, NY, IDA PILOT RV, 5.13%,
10/15/02 509,690
---------------
3,716,002
---------------
NORTH CAROLINA (1.6%)
700,000 North Carolina Municipal Power Agency
#1, Catawba Electric RV, 5.90%, 1/1/03 738,906
---------------
OHIO (3.8%)
1,285,000 Akron, OH, COP, Sports Facilities RV,
Municipal Baseball Stadium Project,
0.00% (5.32% effective yield), 12/1/01 1,067,925
230,000 Akron, OH, COP, Sports Facilities RV,
Muncipal Baseball Stadium Project,
0.00%, (6.50% effective yield),
12/1/07 195,052
500,000 Cleveland, OH, Cuyahoga County Port
Authorities RV, Rock & Roll Hall of
Fame, 4.60%, 12/1/99 503,235
---------------
1,766,212
---------------
PENNSYLVANIA (9.5%)
1,500,000 Pennsylvania State, HEFA RV, Allegheny
General Hospital, Series A, 7.13%,
9/1/07 1,647,390
265,000 Philadelphia, PA, Gas Works RV,
Thirteenth Series, 7.50%, 6/15/01 290,517
550,000 Philadelphia, PA, IDA RV, Gallery II
Garage Project, 6.13%, 2/15/03(f) 565,796
700,000 Sayre, PA, Health Care Facilities
Authority RV, Guthrie Healthcare
Systems, Series A, AMBAC insured,
6.70%, 3/1/02 762,923
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
68
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
PENNSYLVANIA (continued)
<TABLE>
<C> <S> <C>
1,000,000 Windber, PA, Area Authority Hospital RV,
Windber Hospital Project, FHA insured,
6.50%, 2/1/30, P/R 8/1/05 @ 102 $ 1,118,930
---------------
4,385,556
---------------
SOUTH CAROLINA (2.4%)
250,000 Medical University of SC, Hospital
Facilities RV, Series A, 7.00%, 7/1/02 270,370
250,000 Medical University of SC, Hospital
Facilities RV, Series A, 7.20%, 7/1/05 269,948
500,000 South Carolina Educational Television
Community COP RV, ETV Endowment of
South Carolina, Inc., FSA insured,
6.40%, 9/1/02 545,830
---------------
1,086,148
---------------
TEXAS (10.4%)
450,000 Desoto, TX, Housing Fianance Corp., MFHR
Bonds, Windsor Foundation Project,
Series A, 6.13%, 2/1/05 466,988
1,010,000 Grand Prairie, TX, Health Facilities RV,
Dallas/Fort Worth Medical Center
Project, 6.00%, 11/1/99 1,030,069
535,000 Grape Creek-Pulliam, TX, Independent SD,
EFA RV, Public Facilities Corp.,
6.20%, 5/15/02 544,031
250,000 Harlandale, TX, Independant SD Public
Facilites Corp. Lease Revenue,
Educational Facilities RV, 5.20%,
10/15/06 252,285
750,000 Houston, TX, Housing Finance Corp., SFM
RV, Series A-1, 8.00%, 6/1/14 824,175
250,000 Houston, TX, Housing Finance Corp., SFM
RV, Series B-1, 8.00%, 6/1/14 273,958
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
TEXAS (continued)
<TABLE>
<C> <S> <C>
855,000 San Antonio, TX, HEFA, Educational
Facilities RV, University of Texas at
San Antonio, Phase I, 6.50%,
11/1/01(f) $ 885,686
495,000 Texas Water Resource Finance Authority
RV, AMBAC insured, 7.50%, 8/15/03 521,527
---------------
4,798,719
---------------
UTAH (1.1%)
105,000 West Valley City, UT, Redevelopment
Agency Tax Increment RV, 4.55%, 3/1/00 105,542
100,000 West Valley City, UT, Redevelopment
Agency Tax Increment RV, 4.70%, 3/1/01 100,880
70,000 West Valley City, UT, Redevelopment
Agency Tax Increment RV, 4.80%, 3/1/02 70,841
105,000 West Valley City, UT, Redevelopment
Agency Tax Increment RV, 5.00%, 3/1/03 106,910
100,000 West Valley City, UT, Redevelopment
Agency Tax Increment RV, 5.10%, 3/1/04 102,265
---------------
486,438
---------------
WASHINGTON (4.3%)
850,000 Seattle, WA, MFHR Bonds, Market House
Elderly Housing, Series A, 6.20%,
2/1/04 876,597
1,000,000 Washington State Public Power Supply,
System Nuclear Project #2, Power RV,
FGIC insured, 6.50%, 7/1/05 1,082,640
---------------
1,959,237
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
69
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
LIMITED TERM TAX-FREE FUND (continued)
- ----------------------------------------------------
MUNICIPAL BONDS (continued)
WISCONSIN (1.1%)
500,000 Wisconsin Housing & Economic Development
Authority, Housing RV, Series A, HUD
insured, 6.20%, 11/1/01 $ 521,752
---------------
TOTAL MUNICIPALS (COST $43,940,903) 44,629,513
---------------
SHORT-TERM HOLDINGS (3.2%)
500,000 Moffat County, CO, PCR Bonds, AMBAC
insured, 4.05% VR, 7/1/10(c) 500,000
989,070 Norwest Municipal Money Market Fund 989,070
---------------
TOTAL SHORT-TERM HOLDINGS (COST $1,489,070)
1,489,070
---------------
TOTAL INVESTMENTS (100.0%) (COST $45,429,973)
$ 46,118,583
---------------
---------------
- ----------------------------------------------------
TAX-FREE INCOME FUND
- ----------------------------------------------------
MUNICIPALS BONDS (96.6%)
ALABAMA (1.5%)
5,000,000 Alabama Special Care Facilities
Financing Authority, Health Care RV,
Daughters Charity, St. Vincents,
5.00%, 11/1/25 $ 4,678,900
---------------
ARIZONA (1.2%)
3,000,000 Maricopa County, AZ, Union SD #48, GO
Bonds, School Improvements, 9.00%,
7/1/05 3,864,300
---------------
CALIFORNIA (0.7%)
1,910,000 Los Angeles, CA, Community Redevelopment
Agency Housing RV, Monterey Hills
Redevelopment Project, Series A,
8.20%, 12/1/13 2,163,954
---------------
COLORADO (15.8%)
6,390,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/12 6,947,528
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
COLORADO (continued)
<TABLE>
<C> <S> <C>
1,750,000 Arapahoe County, CO, Utilities RV, Water
& Wastewater Authority Revenue, 6.25%,
12/1/20 $ 1,806,210
1,950,000 Castle Rock Ranch, CO, PFA RV, 5.70%,
12/1/06(b) 2,069,067
1,000,000 Colorado HFA, GO Bonds, Series A, 7.40%,
5/1/11 1,065,760
3,000,000 Colorado HFA, MFHR Bonds, Series C,
5.65%, 10/1/15 3,006,540
1,500,000 Colorado HFA, SFM RV, Series A-2, 7.15%,
11/1/14 1,691,190
2,820,000 Colorado HFA, SFM RV, Series B-2, 7.50%,
12/1/16 3,220,693
3,855,000 Colorado HFA, SFM RV, Series C, 7.90%,
12/1/24 4,318,795
3,720,000 Colorado HFA, SFM RV, Series D-1,
remarketed 7/15/94, 8.00%, 12/1/24 4,220,861
2,660,000 Colorado HFA, SFM RV, Series D-2,
remarketed 11/15/94, 8.13%, 6/1/25 3,021,175
5,200,000 Denver, CO, Urban Renewal Authority, Tax
Increment RV, remarketed 6/15/94,
9.13%, 9/1/17(f) 6,180,304
11,000,000 E-470 Public Highway Authority, CO,
Transportation RV, Capital
Appreciation, Series B, MBIA insured,
0.00% (5.47% effective yield), 9/1/18 3,661,460
3,500,000 El Paso County, CO, SD #11, Colorado
Springs, GO Bonds, 7.10%, 12/1/17 4,351,130
795,000 Logan County, CO, SFM RV, Series 1992 A,
8.50%, 11/1/11 853,162
1,000,000 Northern Metropolitan District, CO, RV,
Adams County, 6.50%, 12/1/16(f) 1,013,050
1,000,000 Tellar County, CO, COP, 5.88% VR,
12/1/24 1,030,110
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
70
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
COLORADO (continued)
<TABLE>
<C> <S> <C>
990,000 Vail, CO, SFM RV, Series A, 8.13%,
6/1/10 $ 1,073,081
---------------
49,530,116
---------------
FLORIDA (1.1%)
3,000,000 Lakeland, FL, Electric & Water RV, FGIC
insured, 6.00%, 10/1/14 3,347,700
---------------
GEORGIA (1.2%)
3,650,000 Georgia Municipal Electric Authority
Power RV, Series BB, MBIA insured,
5.25%, 1/1/25 3,655,074
---------------
HAWAII (2.4%)
7,250,000 Hawaii State Department of Budget &
Finance, Health Care RV, The Queens
Health Systems, Series A, 5.75%,
7/1/26 7,452,275
---------------
IDAHO (0.2%)
500,000 Pocatello, ID, IDA RV, Allocation Tax
Increment, Series B, 7.25%, 12/1/08 536,070
---------------
ILLINOIS (9.4%)
1,800,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 7/1/20(f) 2,196,270
1,000,000 Illinois Development Financial Authority
RV, Community Rehabilitation
Providers, Series A, 7.88%, 7/1/20(f) 1,112,060
1,655,000 Illinois Educational Facilities
Authority RV, Capital Appreciation,
ETM, 0.00% (6.22% effective yield),
7/1/14 624,316
1,120,000 Illinois Health Facilities Authority RV,
Edgewater Medical Center, Series A,
9.25%, 7/1/24(f) 1,340,002
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
ILLINOIS (continued)
<TABLE>
<C> <S> <C>
3,000,000 Illinois Health Facilities Authority RV,
Victory Health Services, Series A,
5.75%, 8/15/27 $ 3,025,980
1,025,000 Lake County, IL, Community Unit SD #116,
Educational Facilities RV, Rund Lake,
7.60%, 2/1/13 1,277,181
7,350,000 Regional Transportation Authority, IL,
Sales Tax RV, Series D, FGIC insured,
7.75%, 6/1/19 9,716,774
8,000,000 Regional Transportation Authority, IL,
Transportation RV, FGIC insured,
6.00%, 6/1/23 8,874,240
700,000 Waukegan, IL, Board Libor Trustees,
Economic Development RV, Libor
Building Notes, 5.90%, 1/1/17 718,879
2,000,000 Will County, IL, Unit SD #365, GO Bonds,
Series B, 0.00% (5.60% effective
yield), 11/1/16 729,600
---------------
29,615,302
---------------
INDIANA (0.9%)
2,900,000 Indiana Transportation Financial
Authority Highway RV, Series A, AMBAC
insured, 5.25%, 6/1/15 2,961,799
---------------
KANSAS (2.7%)
3,175,000 Kansas State, DOT, Highway RV, Series A,
7.25%, 9/1/08 3,873,310
4,150,000 Sedgwick & Shawnee Counties, KS, SFM RV,
Mortgage Backed Securities, Series
A-2, Step Coupon, GNMA COLL, 5.50%,
6/1/29 4,585,750
---------------
8,459,060
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
71
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
<TABLE>
<C> <S> <C>
LOUISIANA (0.9%)
435,000 East Baton Rouge, LA, Mortgage Finance
Authority, SFM RV, Series C, GNMA
COLL, 8.38%, 2/1/17 $ 453,096
5,000,000 Rapides Parish, LA, Housing & Mortgage
Finance Authority, Capital
Appreciation RV, Series C, 0.00%,
(7.45% effective yield), 7/10/14 1,646,800
2,900,000 St. Bernard Parish, LA, Housing Mortgage
Agency, SFM RV, Series 1992 C, 0.00%,
(7.65% effective yield), 7/10/14 850,309
---------------
2,950,205
---------------
MASSACHUSETTS (9.8%)
1,500,000 Massachusetts Bay Transportation
Authority, General Transporation
System RV, Series A, 5.63%, 3/1/26 1,523,820
4,000,000 Massachusetts Bay Transportation
Authority, General Transporation
System RV, Series A, FGIC insured,
5.00%, 3/1/27 3,839,480
5,325,000 Massachusetts Bay Transportation
Authority, General Transportation
System RV, Series B, 6.20%, 3/1/16 5,991,264
2,500,000 Massachusetts State College Building
Authority, Educational Facilities RV,
Series A, 7.50%, 5/1/14 3,152,200
2,500,000 Massachusetts State, GO Bonds, Series D,
5.00%, 11/1/16 2,443,075
3,000,000 Massachusetts State Turnpike Authority,
Metropolitan Highway System RV, Series
A, MBIA insured, 5.13%, 1/1/17 2,965,320
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
MASSACHUSETTS (continued)
<TABLE>
<C> <S> <C>
11,000,000 Massachusetts State Turnpike Authority,
Metropolitan Highway System RV, Series
A, MBIA insured, 5.00%, 1/1/37 $ 10,457,370
590,000 New Bedford, MA, IDA RV, Aerovox Inc.,
Project, Series 1982, 7.42%, 7/1/02(f) 596,897
---------------
30,969,426
---------------
MICHIGAN (3.4%)
3,500,000 Michigan Municipal Bond Authority RV,
State Revolving Fund, 5.13%, 10/1/20 3,423,700
1,765,000 Oakland County, MI, Economic Development
Corp. Limited Obligated RV, First of
America LOC, 5.50%, 6/1/14 1,770,966
2,025,000 Springport, MI, Public Schools, GO
Bonds, MBIA insured, 5.15%, 5/1/22 1,986,302
2,760,000 Wayland, MI, Unified SD, GO Bonds, FGIC
insured, 8.00%, 5/1/10 3,567,134
---------------
10,748,102
---------------
MISSISSIPPI (0.2%)
2,000,000 Mississippi Home Corp., Residual Capital
Appreciation RV, Series 1992 II, 0.00%
(7.38% effective yield), 4/15/12 736,560
---------------
NEBRASKA (0.5%)
1,000,000 Nebraska Investment Financial Authority
RV, Catholic Health Initiatives,
Series A, 5.13%, 12/1/17 968,980
795,000 Nebraska Investment Financial Authority
RV, Catholic Health Initiatives,
Series A, 5.13%, 12/1/21 762,675
---------------
1,731,655
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
72
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
<TABLE>
<C> <S> <C>
NEVADA (4.2%)
620,000 Nevada Housing Division, SFM RV, Series
C-1, 5.45%, 4/1/10 $ 624,123
12,760,000 Nevada State, GO Bonds, Colorado River
Commonwealth-Power Delivery, Series A,
5.25%, 9/15/27 12,551,246
---------------
13,175,369
---------------
NEW HAMPSHIRE (0.7%)
1,590,000 New Hampshire HEHFA RV, New London
Hospital Association Project, 7.00%,
6/1/00 1,648,957
500,000 New Hampshire HEFA RV, Androscoggin
Valley Hospital, AMBAC insured, 5.38%,
11/1/27 515,175
---------------
2,164,132
---------------
NEW MEXICO (4.6%)
5,295,000 Bernalillo County, NM, Gross Receipts
Tax RV, Series B, 5.70%, 4/1/27 5,690,801
1,200,000 Hobbs, NM, SFM RV, 8.75%, 7/1/11 1,344,300
6,585,000 Santa Fe County, NM, Correctional
Systems RV, FSA LOC, 6.00%, 2/1/27 7,424,719
---------------
14,459,820
---------------
NEW YORK (5.1%)
12,500,000 New York, NY, City Municipal Water
Finance Authority, Water & Sewer
System RV, Series B, 5.75%, 6/15/29 12,878,375
110,000 New York, NY, GO Bonds, Series B-1,
7.30%, 8/15/10 126,413
1,370,000 New York, NY, GO Bonds, Series B-1,
7.30%, 8/15/10,
P/R 8/15/04 @ 101 1,611,956
1,300,000 New York, NY, GO Bonds, Series B-1,
7.38%, 8/15/13 1,499,511
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
NEW YORK (continued)
<TABLE>
<C> <S> <C>
65,000 New York, NY, GO Bonds, Series B-1,
7.38%, 8/15/13,
P/R 8/15/04 @ 101 $ 76,470
---------------
16,192,725
---------------
NORTH DAKOTA (0.9%)
3,000,000 Fargo, ND, Health System RV, Meritcare
Obligatee Group, Series A, MBIA
insured, 5.38%, 6/1/27 2,971,500
---------------
OHIO (0.1%)
350,000 Cleveland, OH, Cuyahoga County Port
Authorities RV, Rock & Roll Hall of
Fame, 5.35%, 12/1/04 361,340
---------------
OKLAHOMA (0.4%)
1,245,000 Tulsa, OK, IDA RV, University of Tulsa,
Series A, MBIA insured, 6.00%, 10/1/16 1,373,148
---------------
OREGON (1.5%)
1,685,000 Clackamas & Washington Counties, OR, SD
#3 Junction, GO Bonds, Series B, FGIC
insured, 5.00%, 6/1/17 1,646,009
2,490,000 Emerald Peoples Utilities District, OR,
Utilities RV, FGIC insured, 7.35%,
11/1/12 3,125,822
---------------
4,771,831
---------------
PENNSYLVANIA (0.4%)
1,200,000 Cumberland County, PA, Municipal
Authority Health Care RV, Carlisle
Hospital & Health, 6.80%, 11/15/14 1,296,240
---------------
SOUTH CAROLINA (5.4%)
1,000,000 Charleston, SC, Waterworks & Sewer RV,
5.00%, 1/1/16 966,450
7,500,000 Piedmont, SC, Municipal Power Agency,
Electric RV, Series A, 6.55%, 1/1/16 7,507,350
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
73
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
SOUTH CAROLINA (continued)
<TABLE>
<C> <S> <C>
5,725,000 Piedmont, SC, Municipal Power Agency,
Electric RV, Series A, 6.60%, 1/1/21 $ 5,730,210
3,000,000 Spartanburg, SC, Waterworks RV, FGIC
insured, 5.00%, 6/1/19 2,900,250
---------------
17,104,260
---------------
SOUTH DAKOTA (1.3%)
3,500,000 South Dakota State, HEHFA RV, Huron
Regional Medical Center, 7.30%,
4/1/16(f) 4,127,200
---------------
TEXAS (12.5%)
530,000 Baytown, TX, Housing Finance Corp., SFM
RV, Series 1992 A, 8.50%, 9/1/11 600,612
2,350,000 Beaumont, TX, Housing Finance Corp. RV,
9.20%, 3/1/12 2,656,111
1,960,000 Corpus Christi, TX, HFA, Housing RV,
Series A, MBIA insured, 7.70%, 7/1/11 2,182,636
2,395,000 Desoto, TX, Housing Finance Corp., MFHR
Bonds, Windsor Foundation Project,
Series A, 7.00%, 2/1/25 2,570,554
275,000 El Paso, TX, Housing Finance Corp., SFM
RV, Series A, 8.75%, 10/1/11 310,376
1,650,000 Fort Bend, TX, Independent SD, GO Bonds,
5.00%, 2/15/17 1,606,160
370,000 Galveston County, TX, Property Finance
Authority, Inc., SFM RV, Series A,
8.50%, 9/1/11 401,931
1,300,000 Grape Creek-Pulliam, TX, Independent SD
Public Facilities Corp., GO Bonds,
7.25%, 5/15/21 1,418,716
1,115,000 Harlandale, TX, Independent ISD Public
Facilites Corp. Lease Revenue,
Educational Facilities RV, 5.50%,
10/15/12 1,108,210
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
TEXAS (continued)
<TABLE>
<C> <S> <C>
10,000,000 Harris County, TX, GO Bonds, MBIA
insured, 0.00% (5.45% effective
yield), 12/1/13 $ 4,373,000
5,000,000 Harris County, TX, Health Care
Facilities RV, School Health Care
System, Series B, 5.75%, 7/1/27 5,170,850
6,250,000 Houston, TX, Housing Finance Corp., SFM
RV, Series A-1, 8.00%, 6/1/14 6,868,125
2,250,000 Houston, TX, Housing Finance Corp., SFM
RV, Series B-1, 8.00%, 6/1/14 2,465,618
240,000 Port Arthur, TX, Housing Finance Corp.,
SFM RV, 8.70%, 3/1/12 268,613
4,180,000 San Antonio, TX, HEFA, Educational
Facilities RV, 7.13%, 11/1/15(f) 4,540,818
2,200,000 Texas State Department of Housing and
Community Affairs, SFM RV, Series A,
8.10%, 9/1/15 2,504,392
---------------
39,046,722
---------------
UTAH (0.2%)
750,000 Salt Lake County, UT, Educational
Facilities RV, Westminister College
Project, 5.75%, 10/1/27 757,163
---------------
VIRGINIA (1.0%)
3,000,000 Fairfax County, VA, Redevelopment &
Housing Authority, MFHR Bonds, Burke
Shire Commons, 7.60%, 10/1/36(f) 3,217,290
---------------
WASHINGTON (5.5%)
1,748,000 Kitsap County, WA, Housing Authority
Revenue, MFHR Bonds, Low Income
Housing, GNMA COLL, 7.10%, 2/20/16 1,974,733
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
74
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
WASHINGTON (continued)
<TABLE>
<C> <S> <C>
4,000,000 Washington Public Power Supply System,
Power RV, Nuclear Project #1, Series
A, AMBAC insured, 6.00%, 7/1/07 $ 4,381,400
2,750,000 Washington Public Power Supply System,
Power RV, Nuclear Project #2, Series
A, 6.00%, 7/1/07 3,000,058
1,620,000 Washington State Housing Finance
Commission, Nonprofit Housing RV, VA
Mason Research Center Project, Series
A, U.S. Bank of Washington LOC, 5.65%,
1/1/19 1,628,355
3,000,000 Washington State Housing Finance
Commission, Nonprofit Housing RV, VA
Mason Research Center Project, Series
A, U.S. Bank of Washington LOC, 5.70%,
1/1/24 3,015,450
3,000,000 Yakima County, WA, SD #007, GO Bonds,
MBIA insured, 6.75%, 12/1/06 3,478,500
---------------
17,478,496
---------------
WEST VIRGINIA (0.9%)
2,925,000 West Virginia, GO Bonds, Series A, FGIC
insured, 5.25%, 11/1/26 2,890,542
---------------
TOTAL MUNICIPALS (COST $290,995,607) 304,788,276
---------------
SHORT-TERM HOLDINGS (3.4%)
1,500,000 Moffat County, CO, PCR Bonds, AMBAC
insured, 4.05% VR, 7/1/10(c) 1,500,000
6,612,861 Norwest Municipal Money Market Fund 6,612,861
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TAX-FREE INCOME FUND (continued)
- ----------------------------------------------------
</TABLE>
SHORT-TERM HOLDINGS (continued)
<TABLE>
<C> <S> <C>
2,750,000 Pitkin County, CO, MFHR Bonds,
Centennial, Credit Lyonnais LOC,
Series A, 3.95% VR, 12/1/24(c) $ 2,750,000
---------------
TOTAL SHORT-TERM HOLDINGS
(COST $10,862,861) 10,862,861
---------------
TOTAL INVESTMENTS (100.0%)
(COST $301,858,468) $ 315,651,137
---------------
---------------
- ----------------------------------------------------
COLORADO TAX-FREE FUND
- ----------------------------------------------------
MUNICIPALS BONDS (99.5%)
AIRPORT REVENUE (6.5%)
2,500,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.60%,
11/15/20 $ 2,561,300
1,500,000 Denver, CO, City & County, Airport RV,
Series A, MBIA insured, 5.50%,
11/15/25 1,515,960
---------------
4,077,260
---------------
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (2.1%)
1,210,000 Montrose County, CO, COP, Series A,
6.40%, 12/1/12 1,298,741
---------------
EDUCATION FACILITIES REVENUE (1.6%)
1,000,000 University of Northern Colorado,
Educational Facilities RV, Aux
Facilities System, MBIA insured,
5.60%, 6/1/24 1,024,430
---------------
GENERAL OBLIGATION (20.1%)
500,000 Centennial 25 Metropolitan District, CO,
GO Bonds, Arapahoe County, 6.38%,
12/1/16 503,960
500,000 Denver, CO, City & County SD #1, GO
Bonds, Series A, 6.50%, 6/1/10 578,220
2,500,000 El Paso County, CO, SD #11, GO Bonds,
Colorado Springs, 7.10%, 12/1/17 3,107,950
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
75
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
1,000,000 Highlands Ranch, CO, Metropolitan
District #1, GO Bonds, AMBAC insured,
5.75%, 9/1/12 $ 1,083,540
1,000,000 Highlands Ranch, CO, Metropolitan
District #2, GO Bonds, FSA insured,
6.50%, 6/15/11 1,158,100
1,100,000 Highlands Ranch, CO, Metropolitan
District #2, GO Bonds, 6.50%, 6/15/12 1,275,912
350,000 Highlands Ranch, CO, Metropolitan
District #4, GO Bonds, Series A,
6.10%, 12/1/11 366,545
800,000 Highlands Ranch, CO, Metropolitan
District #4, GO Bonds, Series A,
6.30%, 12/1/17 844,968
2,500,000 Metex Metropolitan District, CO, GO
Bonds, Series A, 5.80%, 12/1/16 2,646,100
1,000,000 Northern Metropolitan District, CO, GO
Bonds, Adams County, 6.50%, 12/1/16(f) 1,013,050
---------------
12,578,345
---------------
HEALTH CARE REVENUE (8.4%)
1,000,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.60%, 12/1/27 989,950
750,000 Boulder County, CO, Hospital RV,
Longmont United Hospital Project,
5.13%, 12/1/08 746,258
750,000 Colorado Health Facilities Authority RV,
Catholic Health Initiatives, Series A,
5.13%, 12/1/17 730,320
750,000 Colorado Health Facilities Authority RV,
Catholic Health Initiatives, Series A,
5.13%, 12/1/22 728,888
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
1,250,000 Colorado Health Facilities Authority RV,
Sisters of Charity, Series A, AMBAC
insured, 6.25%, 5/15/11 $ 1,415,550
650,000 Denver, CO, City & County RV, Sisters of
Charity Leavenworth, 5.00%, 12/1/23 619,119
---------------
5,230,085
---------------
INDUSTRIAL DEVELOPMENT REVENUE (6.0%)
3,000,000 Fort Collins, CO, PCR Bonds, Anheuser
Busch Project, 6.00%, 9/1/31 3,139,500
500,000 Summit County, CO, Sports Facilities RV,
Keystone Resorts Management Project,
Ralston Purina Corp. LOC, 7.38%,
9/1/10 592,495
---------------
3,731,995
---------------
JAIL FACILITIES REVENUE (2.5%)
1,525,000 Teller County, CO, COP, 5.75%, 12/1/18 1,568,219
---------------
MULTI-FAMILY HOUSING REVENUE (2.1%)
300,000 Aurora, CO, Housing Authority Finance
Corp., MFHR Bonds, Mountainview Place,
FHA insured, 7.13%, 9/1/22 314,028
1,000,000 San Miguel County, CO, Housing
Authority, MFHR Bonds, Telluride
Village Apartments Project, 6.40%,
7/1/23 1,016,550
---------------
1,330,578
---------------
OTHER REVENUE (8.5%)
3,000,000 Castle Rock Ranch CO, Public Facilities
RV, 6.25%, 12/1/17(b) 3,376,800
2,000,000 Denver, CO, City & County RV, Helen G.
Bonfils Foundation Project, Series B,
5.13%, 12/1/17 1,947,520
---------------
5,324,320
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
76
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
<TABLE>
<C> <S> <C>
PARKING REVENUE (0.6%)
345,000 Pueblo, CO, COP, Public Parking-Lease,
Purchase & Sublease, 6.90%, 7/1/15 $ 366,393
---------------
SALES TAX REVENUE (3.1%)
1,490,000 Arapahoe County, CO, Capital
Improvements & Transportation Highway
RV, Series E-470, MBIA insured,
remarketed 8/31/95, 6.15%, 8/31/26 1,628,361
140,000 Blackhawk, CO, Device Tax RV, 5.60%,
12/1/04 146,345
145,000 Blackhawk, CO, Device Tax RV, 5.70%,
12/1/05 152,607
---------------
1,927,313
---------------
SINGLE FAMILY HOUSING REVENUE (24.0%)
1,680,000 Adams County, CO, SFM RV, Series A-2,
8.70%, 6/1/12 1,826,580
440,000 Colorado HFA, SFM RV, Series B-2, 7.50%,
12/1/16 502,520
3,390,000 Colorado HFA, SFM RV, Series B-2, 7.45%,
11/1/27 3,878,737
1,610,000 Colorado HFA, SFM RV, Series C-2, 7.45%,
6/1/17 1,826,948
1,680,000 Colorado HFA, SFM RV, Series D-1,
remarketed 7/15/94, 8.00%, 12/1/24 1,906,195
1,650,000 Colorado HFA, SFM RV, Series D-2, 7.10%,
6/1/14 1,861,431
2,800,000 Colorado HFA, SFM RV, Series D-2,
remarketed 11/15/94, 8.13%, 6/1/25 3,180,184
---------------
14,982,595
---------------
TOLL ROAD REVENUE (6.7%)
750,000 Commonwealth of Puerto Rico, Highway &
Transportation Authority RV, Series Y,
MBIA-IBC LOC, 5.50%, 7/1/26 761,391
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
COLORADO TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPALS BONDS (continued)
TOLL ROAD REVENUE (continued)
<TABLE>
<C> <S> <C>
15,000,000 E-470 Public Highway Authority, CO,
Transportation RV, Capital
Appreciation, Series B, MBIA insured,
0.00% (5.52% effective yield), 9/1/25 $ 3,436,200
---------------
4,197,591
---------------
WATER & SEWER REVENUE (7.3%)
1,250,000 Arapahoe County, CO, Utilities RV, Water
& Wastewater Authority Revenue, 6.25%,
12/1/20 1,290,150
1,750,000 Centennial, CO, Water & Sanitation
District RV, Series A, FSA insured,
5.13%, 12/1/17(f) 1,746,515
1,500,000 Colorado Springs, CO, Utilities RV,
Series A, 5.38%, 11/15/26 1,500,540
---------------
4,537,205
---------------
TOTAL MUNICIPALS (COST $58,768,804) 62,175,070
---------------
SHORT-TERM HOLDINGS (0.5%)
335,582 Norwest Municipal Money Market Fund
(cost $335,582) 335,582
---------------
TOTAL INVESTMENTS (100.0%) (COST $59,104,386)
$ 62,510,652
---------------
---------------
- ----------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND
- ----------------------------------------------------
MUNICIPAL BONDS (98.5%)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (3.5%)
165,000 Eden Prairie, MN, Housing &
Redevelopment Authority, Leasing RV,
Community Center Project, Series A,
6.15%, 8/1/08 $ 173,237
150,000 Hennepin County, MN, Lease RV, COP,
Series A, 5.85%, 11/15/99 155,016
260,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.15%, 5/15/02 277,158
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
77
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
310,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.25%, 11/15/03 $ 329,490
135,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.45%, 5/15/05 144,457
300,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.45%, 11/15/05 321,015
145,000 Hennepin County, MN, Lease RV, COP,
Series A, 6.55%, 5/15/06 156,881
1,000,000 Minneapolis, MN, Special SD, COP, 5.60%,
2/1/02 1,024,880
400,000 Minneapolis, MN, Special SD, COP, 5.80%,
2/1/04 410,088
170,000 St. Paul, MN, Independent SD #625, COP,
Series B, 5.70%, 2/1/02 178,599
195,000 St. Paul, MN, Independent SD #625, COP,
Series B, 5.90%, 2/1/04 207,279
215,000 St. Paul, MN, Independent SD #625, COP,
Series B, 6.10%, 2/1/06 227,960
230,000 St. Paul, MN, Independent SD #625, COP,
Series B, 6.20%, 2/1/07 244,906
245,000 St. Paul, MN, Independent SD #625, COP,
Series B, 6.25%, 2/1/08 262,944
260,000 St. Paul, MN, Independent SD #625, COP,
Series B, 6.30%, 2/1/09 278,400
185,000 Savage, MN, EDA RV, Lease Revenue,
5.30%, 2/1/12 185,192
195,000 Savage, MN, EDA RV, Lease Revenue,
5.35%, 2/1/13 195,250
125,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
5.50%, 12/1/97 125,016
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (continued)
<TABLE>
<C> <S> <C>
145,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
5.75%, 12/1/98 $ 147,572
360,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
6.60%, 12/1/02 393,815
380,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
6.75%, 12/1/03 408,010
410,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
6.90%, 12/1/04 442,915
435,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
7.00%, 12/1/05 482,045
465,000 Washington County, MN, Housing &
Redevelopment Authority, Lease RV,
Independent SD #833, South Washington,
7.00%, 12/1/06 513,104
---------------
7,285,229
---------------
EDUCATION FACILITIES REVENUE (7.3%)
1,000,000 Hopkins, MN, Educational Facilities RV,
Blake School Project, 5.35%, 9/1/17 1,003,680
1,000,000 Minnesota State, HEFA RV, Carleton
College, Series 4-N, 5.50%, 11/1/06 1,068,250
1,000,000 Minnesota State, HEFA RV, Carleton
College, Series 4-N, 5.00%, 11/1/18 976,130
430,000 Minnesota State, HEFA RV, Macalester
College, Series 3-J, 6.10%, 3/1/05 456,015
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
78
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
EDUCATION FACILITIES REVENUE (continued)
<TABLE>
<C> <S> <C>
1,250,000 Minnesota State, HEFA RV, Northwestern
College of Chiropractic, Series 2-X,
8.50%, 10/1/05(f) $ 1,321,188
150,000 Minnesota State, HEFA RV, St. Mary's
College, Series 3-Q, 5.70%, 10/1/03 158,712
280,000 Minnesota State, HEFA RV, St. Mary's
College, Series 3-Q, 5.80%, 10/1/04 298,799
295,000 Minnesota State, HEFA RV, St. Mary's
College, Series 3-Q, 5.90%, 10/1/05 314,738
340,000 Minnesota State, HEFA RV, St. Mary's
College, Series 3-Q, 6.00%, 10/1/08 355,868
485,000 Minnesota State, HEFA RV, University of
St. Thomas, Series 3-I, 6.00%, 10/1/99 501,505
400,000 Northfield, MN, Educational Facilites
RV, St. Olaf College Project, 6.05%,
10/1/04 430,044
2,000,000 Univesity of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/08 2,135,640
1,000,000 Univesity of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/11 1,082,540
1,000,000 Univesity of Minnesota, Educational
Facilities RV, Series A, 5.75%, 7/1/18 1,072,910
3,750,000 Univesity of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/21 3,912,150
---------------
15,088,169
---------------
ELECTRIC REVENUE (12.1%)
500,000 Moorhead, MN, Public Utilities RV,
Series A, MBIA insured, 5.75%, 11/1/03 531,625
260,000 New Praque, MN, Electric RV, 7.00%,
10/1/05 272,800
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ELECTRIC REVENUE (continued)
<TABLE>
<C> <S> <C>
3,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, FSA
insured, 5.50%, 1/1/08 $ 3,171,210
275,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series A,
7.20%, 1/1/99 284,573
2,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series B,
AMBAC insured, 5.50%, 1/1/18 2,032,740
115,000 Puerto Rico, Electric Power Authority
RV, Series N, Unrefunded Balance,
7.00%, 7/1/07 121,938
1,000,000 Puerto Rico, Electric Power Authority
RV, Series S, 6.13%, 7/1/08 1,126,680
2,500,000 Puerto Rico, Electric Power Authority
RV, Series X, 5.50%, 7/1/25 2,504,475
6,200,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Capital Appreciation, Series A, MBIA
insured, 0.00% (6.07% effective
yield), 1/1/20 1,914,746
955,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Unrefunded Balance, Series A, 5.50%,
1/1/03 998,204
2,155,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, AMBAC insured, 5.00%, 1/1/09 2,165,129
1,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, 5.00%, 1/1/12 977,710
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
79
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
MUNICIPAL BONDS (continued)
ELECTRIC REVENUE (continued)
10,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, MBIA insured, 0.00% (5.78%
effective yield), 1/1/24 $ 2,496,400
1,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Unrefunded Balance, Series B, 5.80%,
1/1/07 1,067,480
2,830,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
B, AMBAC-TCRS insured, 5.00%, 1/1/10 2,831,726
1,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
B, AMBAC insured, 5.00%, 1/1/13 984,350
1,500,000 Western Minnesota Municipal Power
Agency, Power RV, Series A, 6.13%,
1/1/16 1,502,475
---------------
24,984,261
---------------
ESCROWED IN TREASURIES (21.5%)
500,000 Alexandria, MN, Independent SD #206, GO
Bonds, Series A, 6.00%, 2/1/04 535,675
250,000 Alexandria, MN, Independent SD #206, GO
Bonds, Series A, 6.15%, 2/1/06 269,553
250,000 Alexandria, MN, Independent SD #206, GO
Bonds, Series A, 6.20%, 2/1/07 270,125
100,000 Anoka County, MN, GO Bonds, 7.00%,
2/1/02 103,297
300,000 Anoka County, MN, GO Bonds, Capital
Improvements, Series B, 7.00%, 2/1/05 309,891
1,025,000 Anoka-Hennepin, MN, Independent SD #11,
GO Bonds, Series 1991A, FSA insured,
6.75%, 2/1/09 1,078,925
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
1,100,000 Anoka-Hennepin, MN, Independent SD #11,
GO Bonds, Series 1991A, FSA insured,
6.75%, 2/1/10 $ 1,157,871
1,500,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, Series A, Goldman
Sachs & Co. LOC, 7.00%, 9/1/11, P/R
9/1/01 @ 102 1,668,210
160,000 Blaine, MN, IDA RV, Ball Corp. Project,
ETM USG, 7.13%, 12/1/04 184,954
640,000 Centennial, MN, Independent SD #12, GO
Bonds, Series A, FSA insured, 7.15%,
2/1/10, P/R 2/1/00 @ 100 680,928
500,000 Commonwealth of Puerto Rico, GO Bonds,
FGIC insured, 7.10%, 7/1/02, P/R
7/1/00 @ 102 547,125
750,000 Commonwealth of Puerto Rico, Highway &
Transportation Authority RV, Series N,
8.00%, 7/1/03, P/R 7/1/98 @ 102 783,390
500,000 Dakota County, MN, GO Bonds, 7.10%,
2/1/00 502,665
205,000 Duluth, MN, GO Bonds, USG COLL, 6.10%,
8/1/02, P/R 8/1/00 @ 100 215,245
210,000 Duluth, MN, GO Bonds, USG COLL, 6.20%,
8/1/03, P/R 8/1/00 @ 100 221,023
215,000 Duluth, MN, GO Bonds, USG COLL, 6.30%,
8/1/04, P/R 8/1/00 @ 100 226,825
350,000 Eden Prairie, MN, Independent SD #279,
GO Bonds, Series B, 7.40%, 2/1/02 352,055
200,000 Edina, MN, GO Bonds, Recreational
Facilities Bonds, 7.05%, 1/1/02 200,548
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
80
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
225,000 Edina, MN, GO Bonds, Recreational
Facilities Bonds, 7.05%, 1/1/02 $ 226,182
250,000 Edina, MN, GO Bonds, Tax Increment,
7.00%, 2/1/01 251,290
1,250,000 Edina, MN, Hospital System RV, Fairview
Hospital, Series A, 7.13%, 7/1/06, P/R
7/1/99 @ 102 1,332,564
400,000 Glencoe, MN, Electric RV, ETM, USG COLL,
10.00%, 5/1/98(f) 410,124
1,000,000 Mankato, MN, Independent SD #077, GO
Bonds, Series A, FSA insured, 6.35%,
2/1/13 1,076,320
300,000 Mankato, MN, Nursing Home RV, Mankato
Lutheran Home Project, Series A, USG
COLL, 8.00%, 10/1/11, P/R 10/1/01 @
102 343,587
500,000 Metropolitan Council, MN, Go Bonds,
Minneapolis-St Paul Metropolitan Area,
7.10%, 12/1/02 528,735
155,000 Minneapolis, MN, GO Bonds, 7.10%,
12/1/01, P/R 12/1/99 @ 100 164,168
500,000 Minneapolis, MN, GO Bonds, 7.00%,
4/1/02, P/R 4/1/99 @ 100 519,670
165,000 Minneapolis, MN, GO Bonds, 7.10%,
12/1/02, P/R 12/1/99 @ 100 174,760
420,000 Minneapolis, MN, Hospital Facilities RV,
Abbott Northwestern Hospital Inc., USG
COLL, ETM, 6.50%, 12/1/06 460,013
30,000 Minneapolis, MN, Hospital Facilities RV,
Metropolitan Medical Center, USG COLL,
ETM, 8.88%, 4/1/00 32,240
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
730,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc., Series A, USG COLL,
7.00%, 12/1/98, P/R 12/1/97 @ 102 $ 744,783
225,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc., Series A, USG COLL,
7.40%, 12/1/02, P/R 12/1/97 @ 102 229,565
200,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc., Series B, USG COLL,
7.50%, 8/1/00, P/R 8/1/98 @ 102 208,725
820,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc., Series B, USG COLL,
8.00%, 8/1/06, P/R 8/1/98 @ 102 858,466
1,500,000 Minneapolis, MN, Hospital Facilities RV,
Life Span Inc./ Abbott Northwestern
Hospital Inc., AMBAC insured, USG
COLL, 7.00%, 12/1/14, P/R 12/1/99 @
102 1,612,350
450,000 Minneapolis, MN, Hospital RV, Minnesota
Children's Medical Center Project,
Series C, USG COLL, 7.00%, 12/1/01,
P/R 6/1/01 @ 102 497,939
575,000 Minneapolis, MN, Hospital RV, Minnesota
Children's Medical Center Project,
Series C, USG COLL, 7.10%, 12/1/02,
P/R 6/1/01 @ 102 638,112
780,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 7.00%,
3/1/09, P/R 3/1/99 @ 102 824,499
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
81
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
525,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, USG COLL,
7.10%, 3/1/12, P/R 3/1/00 @ 102 $ 568,832
1,960,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.50%,
3/1/14, P/R 3/1/02 @ 102 2,161,527
190,000 Minnesota State, HEFA RV, Hamline
University, Series 3-A, USG COLL,
7.00%, 10/1/04, P/R 10/1/00 @ 100 204,334
205,000 Minnesota State, HEFA RV, Hamline
University, Series 3-A, USG COLL,
7.00%, 10/1/05, P/R 10/1/00 @ 100 220,465
220,000 Minnesota State, HEFA RV, Hamline
University, Series 3-A, USG COLL,
7.00%, 10/1/06, P/R 10/1/00 @ 100 236,597
235,000 Minnesota State, HEFA RV, Hamline
University, Series 3-A, USG COLL,
7.00%, 10/1/07, P/R 10/1/00 @ 100 252,728
110,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL, ETM,
6.10%, 6/1/00 115,100
135,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL, ETM,
6.20%, 6/1/01 143,428
130,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL, ETM,
6.30%, 6/1/02 140,358
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
270,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL,
6.40%, 6/1/03, P/R 6/1/02 @ 100 $ 292,380
240,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL,
6.50%, 6/1/04, P/R 6/1/02 @ 100 260,866
250,000 Minnesota State, HEFA RV, Hamline
University, Series 3-K, USG COLL,
6.60%, 6/1/07, P/R 6/1/02 @ 100 272,750
1,000,000 Minnetonka, MN, Independent SD #276, GO
Bonds, Series A, 6.30%, 2/1/04, P/R
2/1/02 @ 100 1,075,420
1,865,000 Moorhead, MN, Residential Mortgage RV,
7.10%, 8/1/11 2,186,454
105,000 Olmstead County, MN, Housing &
Redevelopment Authority RV, USG COLL,
7.00%, 2/1/06, P/R 2/1/01 @ 100 113,759
290,000 Olmstead County, MN, Housing &
Redevelopment Authority RV, USG COLL,
7.00%, 2/1/07, P/R 2/1/01 @ 100 314,192
300,000 Olmstead County, MN, Housing &
Redevelopment Authority RV, USG COLL,
7.00%, 2/1/08, P/R 2/1/01 @ 100 325,026
160,000 Puerto Rico, Electric Power Authority
RV, Series N, USG COLL, 7.00%, 7/1/07,
P/R 7/1/99 @ 101.50 169,589
500,000 Rochester, MN, GO Bonds, 7.00%, 12/1/04 515,030
500,000 Rochester, MN, GO Bonds, 7.00%, 12/1/05 515,030
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
82
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
2,750,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series A, 8.30%, 11/15/07, P/R
11/15/99 @ 100 $ 2,962,823
1,250,000 Saint Cloud, MN, Hospital Facilities RV,
St. Cloud Hospital Project, Series C,
AMBAC insured, 6.75%, 7/1/15, P/R
7/1/01 @ 102 1,375,175
1,440,000 Sartell, MN, Independent SD #748, GO
Bonds, Capital Appreciation, Series A,
0.00% (6.03% effective yield), 2/1/11 645,120
545,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV,
Refunded Balance, Series A, 5.50%,
1/1/03 573,454
470,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
1984 B, 7.00%, 1/1/18, P/R 1/1/98 @
100 471,363
250,000 St. Paul, MN, Housing & Redevelopment
Authority, Health Care RV, Children's
Hospital St. Paul, 7.15%, 12/1/05, P/R
12/1/99 @ 102 269,443
600,000 St. Paul, MN, Independent SD #625, GO
Bonds, Series B, 6.10%, 2/1/03, P/R
2/1/01 @ 100 633,420
625,000 St. Paul, MN, Independent SD #625, GO
Bonds, Series B, 6.20%, 2/1/04, P/R
2/1/01 @ 100 661,656
1,000,000 St. Paul, MN, Sewer RV, Series A, 8.00%,
12/1/08 1,049,360
1,000,000 Washington County, MN, Housing &
Redevelopment Authority, Jail
Facilities RV, 7.00%, 2/1/06, P/R
2/1/02 @ 100 1,103,510
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ESCROWED IN TREASURIES (continued)
<TABLE>
<C> <S> <C>
940,000 Washington County, MN, Housing &
Redevelopment Authority, Jail
Facilities RV, 7.00%, 2/1/07, P/R
2/1/02 @ 100 $ 1,037,299
100,000 Wayzata, MN, Independent SD #284, GO
Bonds, Series A, 7.00%, 2/1/05 103,309
250,000 Wayzata, MN, Independent SD #284, GO
Bonds, Series A, 7.10%, 2/1/08 258,558
2,340,000 Western Minnesota Municipal Power
Agency, Power RV, Series 1977 A,
6.38%, 1/1/16 2,631,121
---------------
44,301,873
---------------
GENERAL OBLIGATION (19.7%)
1,000,000 Alexandria, MN, Independent SD #206, GO
Bonds, Series A, 5.38%, 2/1/13 1,024,740
375,000 Brooklyn Park, MN, GO Bonds, 10.00%,
7/1/98 377,040
1,250,000 Chaska, MN, Independent SD #112, GO
Bonds, Series B, 5.75%, 2/1/07 1,349,585
1,000,000 Chaska, MN, Independent SD #112, GO
Bonds, Series B, 5.75%, 2/1/09 1,066,320
250,000 Commonwealth of Puerto Rico, GO Bonds,
6.70%, 7/1/98 253,790
2,000,000 Commonwealth of Puerto Rico, GO Bonds,
MBIA insured, 6.25%, 7/1/11 2,278,360
255,000 Coon Rapids, MN, GO Bonds, Special
Assesment, Series B, 5.80%, 2/1/04 270,375
2,325,000 Dakota County, MN, GO Bonds, Series B,
AMBAC insured, 6.00%, 2/1/02 2,409,490
400,000 Dakota County, MN, GO Bonds, Series B,
AMBAC insured, 6.20%, 2/1/04 416,180
1,075,000 Faribault, MN, Independent SD #656, GO
Bonds, 7.75%, 6/1/02 1,227,080
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
83
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
3,250,000 Metropolitan Council, MN, GO Bonds,
Minneapolis-St Paul Metropolitan Area,
Series A, 6.00%, 12/1/02 $ 3,463,753
2,815,000 Minneapolis, MN, GO Bonds, Sales Tax
Revenue, 6.05%, 4/1/04 3,046,646
1,750,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.13%, 10/1/20 1,744,033
1,000,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.20%, 10/1/24 1,002,310
1,010,000 Minneapolis, MN, Special SD #001, UTGO
Bonds, 5.75%, 2/1/09 1,055,309
915,000 Minneapolis, MN, Special SD #001, UTGO
Bonds, 5.00%, 2/1/14 907,918
1,500,000 Minnesota State, GO Bonds, 5.25%, 8/1/15 1,510,245
1,580,000 Minnetonka, MN, Independent SD #276, GO
Bonds, Series A, 6.10%, 2/1/02 1,692,510
1,400,000 Minnetonka, MN, Independent SD #276, GO
Bonds, Series B, 5.65%, 2/1/10 1,485,540
1,000,000 Ramsey County, MN, GO Bonds, Capital
Improvements, Series A, 6.25%, 2/1/06 1,118,520
2,000,000 Rosemount, MN, Independent SD #196, GO
Bonds, Capital Appreciation, Series A,
0.00% (5.50% effective yield), 4/1/09 1,143,560
3,000,000 Rosemount, MN, Independent SD #196, GO
Bonds, Capital Appreciation, Series A,
0.00% (5.55% effective yield), 4/1/10 1,613,310
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
2,000,000 Rosemount, MN, Independent SD #196, GO
Bonds, Capital Appreciation, Series A,
0.00% (5.60% effective yield), 4/1/11 $ 1,016,180
1,295,000 Roseville, MN, Tax Increment RV, 5.90%,
2/1/04 1,298,367
2,000,000 St. Cloud, MN, GO Bonds, Inverse
Floaters, 8.65% VR, 8/1/13 2,232,500
1,000,000 St. Louis Park, MN, Independent SD #283,
GO Bonds, 5.90%, 2/1/03 1,047,850
1,050,000 St. Paul, MN, Independent SD #625, GO
Bonds, Series B, 5.70%, 2/1/09 1,107,099
580,000 St. Paul, MN, Independent SD #625, GO
Bonds, Series B, 5.80%, 2/1/11 610,496
235,000 Waconia, MN, GO Bonds,Water RV, 6.00%,
6/1/06 248,799
1,000,000 Wayzata, MN, Independent SD #284, GO
Bonds, Series B, 5.85%, 2/1/10 1,052,190
825,000 West St. Paul, MN, Independent SD #197,
GO Bonds, Capital Appreciation School
Building Project, MBIA insured, 0.00%
(5.40% effective yield), 2/1/04 628,295
1,000,000 West St. Paul, MN, Independent SD #197,
GO Bonds, Capital Appreciation School
Building Project, MBIA insured, 0.00%
(5.60% effective yield), 2/1/06 679,941
225,000 Wright County, MN, GO Bonds, Series B,
5.80%, 2/1/04 239,229
---------------
40,617,560
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
84
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
HEALTH CARE REVENUE (12.5%)
2,195,000 Breckenridge, MN, Health Facilities RV,
Catholic Health Corp., MBIA insured,
5.00%, 11/15/05 $ 2,269,213
1,190,000 Detroit Lakes, MN, Health Care
Facilities RV, Benedictine Health
Systems, St. Mary, Series G, Connie
Lee insured, 6.00%, 2/15/12 1,253,855
635,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.55%,
2/15/04 671,449
690,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.65%,
2/15/05 735,740
465,000 Duluth, MN, EDA, Health Care Facilities
RV, Benedictine Health System, St.
Mary, Series A, MBIA insured, 5.75%,
2/15/06 496,392
425,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.10%, 5/1/00 443,318
450,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.20%, 5/1/01 477,531
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.45%, 5/1/05 545,020
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.40%, 5/1/18 543,820
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
315,000 Edina, MN, Hospital System RV, Fairview
Hospital, Series A, 7.00%, 7/1/99 $ 328,797
1,000,000 Fergus Falls, MN, Health Care Facilities
RV, Lake Region Hospital Corp.
Project, Series A, 6.50%, 9/1/18 1,059,770
700,000 Glencoe, MN, Hospital RV, 6.63%, 4/1/11 731,199
365,000 Mankato, MN, Hospital Facilities RV, 1st
Mortgage-Immanuel St. Joseph's
Project, Series C, 6.10%, 8/1/05 389,130
450,000 Mankato, MN, Hospital Facilities RV, 1st
Mortgage-Immanuel St. Joseph's
Project, Series C, 6.15%, 8/1/06 479,511
1,700,000 Mankato, MN, Hospital Facilities RV, 1st
Mortgage-Immanuel St. Joseph's
Project, Series A, 6.30%, 8/1/22 1,789,590
550,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Health Care RV, HealthOne
Obligated Group Project, Series A,
MBIA insured, 7.38%, 8/15/02 602,932
805,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Health Care RV, HealthOne
Obligated Group Project, Series A,
MBIA insured, 7.40%, 8/15/11 879,721
2,000,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.50%, 11/15/17 2,047,540
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
85
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
2,000,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.75%, 11/15/26 $ 2,091,580
1,385,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.80%, 11/15/07 1,520,107
965,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.88%, 11/15/08 1,063,005
1,400,000 Rochester, MN, Health Care Facilites RV,
Mayo Foundation/ Mayo Medical Center,
Series I, 5.90%, 11/15/09 1,545,628
2,000,000 Rochester, MN, Health Care Facilities
RV, Mayo Foundation/ Mayo Medical
Center, Series I, 5.90%, 11/15/10 2,202,340
1,000,000 Saint Cloud, MN, Hospital Facilities RV,
St. Cloud Hospital Project, Series A,
AMBAC insured, 5.50%, 7/1/06 1,063,970
500,000 St. Louis Park, MN, Hospital RV,
Methodist Hospital, Series A, AMBAC
insured, 7.00%, 7/1/00 534,775
---------------
25,765,933
---------------
INDUSTRIAL DEVELOPMENT REVENUE (2.1%)
110,000 Becker, MN, PCR Bonds, Northern States
Power Co. Project, 7.25%, 12/1/05 110,300
100,000 Fergus Falls, MN, PCR Bonds, Otter Tail
Power Co. Project, 5.63%, 7/1/98 100,983
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
INDUSTRIAL DEVELOPMENT REVENUE (continued)
<TABLE>
<C> <S> <C>
1,075,000 Red Wing, MN, PCR Bonds, Northern States
Power Co., MBIA insured, 5.70%, 5/1/03 $ 1,082,869
2,100,000 Seaway Port Authority Duluth, MN,
Industrial Development Dock & Wharf
RV, Series B, 6.80%, 5/1/12(f) 2,314,662
615,000 St. Louis Park, MN, Commercial
Development RV, G & N LP Project,
7.00%, 6/1/06(f) 646,586
---------------
4,255,400
---------------
JAIL FACILITIES REVENUE (0.5%)
1,000,000 Saint Cloud, MN, Law Enforcement Center
RV, 6.20%, 2/1/05 1,058,490
---------------
MULTI-FAMILY HOUSING REVENUE (3.2%)
1,150,000 Edina, MN, Housing Development RV, MFHR
Bonds, Edina Park Place Project,
Series A, FHA insured, 7.50%, 12/1/09 1,207,109
20,000 Minneapolis, MN, Community Development
Agency & St. Paul Housing &
Redevelopment Authority RV, Joint
Housing Program, 9.50%, 12/1/00 20,095
1,225,000 Minneapolis, MN, MFHR Bonds, Chuchill
Project, FHA insured, 6.95%, 10/1/05 1,313,016
875,000 Minnesota State, HFA, Housing
Development RV, 6.25%, 2/1/20 885,518
1,050,000 Minnesota State, HFA, MFHR Bonds, 6.38%,
2/1/20 1,063,010
695,000 Minnesota State, HFA, Rental Housing RV,
Series D, MBIA insured, 5.90%, 8/1/15 719,819
150,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.00%, 7/1/99 154,163
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
86
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MULTI-FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
160,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.10%, 7/1/00 $ 167,069
170,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.25%, 7/1/01 179,872
180,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.40%, 7/1/02 193,419
190,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.50%, 7/1/03 205,956
175,000 St. Anthony, MN, MFHR RV, Autumn Woods
Project, Asset Guaranty Insurance Co.
LOC, 6.60%, 7/1/04 190,496
250,000 St. Paul, MN, Housing & Redevelopment
Authority RV, Amherst H. Wilder
Foundation, 6.20%, 6/1/98 252,605
50,000 St. Paul, MN, Housing & Redevelopment
Authority RV, Amherst H. Wilder
Foundation, 6.50%, 6/1/01 50,597
---------------
6,602,744
---------------
NURSING HOME REVENUE (1.9%)
500,000 Minneapolis, MN, Health Care Facilities
RV, Ebenezer Society Project, Series
A, 7.20%, 7/1/23(f) 518,010
250,000 Moorhead, MN, EDA, MFHR Bonds, Eventide
Project, Series A, 8.00%, 9/1/11(f) 270,543
500,000 Pine River, MN, Health Facilities RV,
Evan Lutheran Good Samaritan Project,
6.40%, 8/1/15 545,270
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
NURSING HOME REVENUE (continued)
<TABLE>
<C> <S> <C>
95,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 7.50%, 8/1/98(f) $ 96,847
105,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 7.75%, 8/1/99 109,866
115,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.00%, 8/1/00 123,586
125,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.00%, 8/1/01 136,995
135,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.10%, 8/1/02 150,198
145,000 Spring Park, MN, Health Care Facilities
RV, Twin Birch Health Care Center
Project, 8.10%, 8/1/03 160,798
125,000 St. Paul, MN, Housing & Redevelopment
Authority, Nursing Home Development
RV, Lyngblomsten Care Center Project,
6.50%, 12/1/97 125,020
1,500,000 White Bear Lake, MN, First Mortgage,
Nursing Home RV, White Bear Lake Care
Center, 8.25%, 11/1/12(f) 1,668,885
---------------
3,906,018
---------------
OTHER REVENUE (2.0%)
750,000 Anoka County, MN, Resource Recovery RV,
Northern State Power Co., 7.00%,
12/1/03 799,560
106,257 Minnesota Tax Exempt Mortgage Trust,
Series C, 6.77% VR, 9/1/10 105,725
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
87
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
OTHER REVENUE (continued)
<TABLE>
<C> <S> <C>
400,000 St. Paul, MN, Housing & Redevelopment
Authority, Heating RV, Cogeneration
Facilities Project, 8.30%, 11/1/04(f) $ 417,768
2,640,000 St. Paul, MN, Housing & Redevelopment
Authority, Distribution Cooling RV,
Series C, 8.00%, 3/1/12(f) 2,882,299
---------------
4,205,352
---------------
PARKING REVENUE (1.6%)
3,245,000 Minneapolis, MN, Temporary Package Ramp,
Transportation RV, Series A, 4.75%,
6/1/00 3,246,201
---------------
SINGLE FAMILY HOUSING REVENUE (2.5%)
915,000 Coon Rapids, MN, SFM RV, 6.15%, 9/1/09 958,398
700,000 Minnesota State, HFA, SFM RV, Series A,
5.95%, 1/1/17 729,988
140,000 Minnesota State, HFA, SFM RV, Series B,
6.60%, 7/1/98 141,760
90,000 Minnesota State, HFA, SFM RV, Series B,
6.80%, 7/1/99 91,142
70,000 Minnesota State, HFA, SFM RV, Series B,
7.00%, 7/1/01 70,900
165,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/ Private Mortgages LOC, 7.05%,
1/1/02 172,592
180,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/ Private Mortgages LOC, 7.05%,
7/1/02 188,494
95,000 Minnesota State, HFA, SFM RV, Series B,
FHA/VA/ Private Mortgages LOC, 7.30%,
7/1/10 99,530
135,000 Minnesota State, HFA, SFM RV, Series C,
6.90%, 7/1/00 136,723
195,000 Minnesota State, HFA, SFM RV, Series C,
7.00%, 7/1/01 197,508
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
SINGLE FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
195,000 Minnesota State, HFA, SFM RV, Series
D-2, remarketed 3/24/93, 5.60%, 1/1/06 $ 203,921
300,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages LOC, 7.30%, 8/1/99 309,318
100,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages LOC, 7.40%, 2/1/00 103,527
100,000 Minnesota State, HFA, SFM RV, Series E,
FHA/VA Mortgages LOC, 7.50%, 2/1/01 103,905
350,000 Minnesota State, HFA, SFM RV, Series G,
6.45%, 1/1/05 365,442
700,000 St. Paul, MN, Housing & Redevelopment
Authority, SFM RV, FNMA Mortgage
Backed Securities Program, FNMA
insured, mandatory extraordinary
redemption @ 100, 3/1/07, 6.25%,
9/1/14 738,661
485,000 Vadnais Heights, MN, SFM RV, 5.25%,
11/1/02 498,090
---------------
5,109,899
---------------
SPORTS FACILITIES REVENUE (2.0%)
285,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.00%, 2/1/00(f) 293,801
300,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.15%, 2/1/01 310,890
300,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.30%, 2/1/02 311,241
400,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.50%, 2/1/04 414,940
425,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.60%, 2/1/05 438,532
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
88
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
SPORTS FACILITIES REVENUE (continued)
<TABLE>
<C> <S> <C>
455,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, 6.70%, 2/1/06 $ 470,179
1,445,000 Minnesota Iron Range Resources &
Rehabilitation Gross RV, Giants Ridge
Recreational Area, 7.25%, 10/1/11(f) 1,504,852
180,000 St. Cloud, MN, COP, 5.20%, 12/1/05 180,349
185,000 St. Cloud, MN, COP, 5.30%, 12/1/06 185,357
100,000 St. Cloud, MN, COP, 5.38%, 12/1/07 100,225
---------------
4,210,366
---------------
TAX INCREMENT REVENUE (5.5%)
2,000,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.25%, 2/1/03 2,075,920
2,000,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.45%, 2/1/09 2,041,300
2,000,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series A, FSA
insured, 5.35%, 2/1/13 2,042,080
5,500,000 Minneapolis, MN, Community Development
Agency, Tax Increment RV, Capital
Appreciation, MBIA insured, 0.00%
(5.00% effective yield), 9/1/04 4,082,210
1,150,000 Minneapolis, MN, Tax Increment RV, MBIA
insured, 7.00%, 3/1/03 1,158,878
---------------
11,400,388
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA INTERMEDIATE TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
<TABLE>
<C> <S> <C>
WATER & SEWER REVENUE (0.6%)
750,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.25%,
3/1/15 $ 814,013
500,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 4.75%,
3/1/11 488,425
---------------
1,302,438
---------------
TOTAL MUNICIPALS (COST $193,415,067) 203,340,321
---------------
SHORT-TERM HOLDINGS (1.5%)
100,000 Cottage Grove, MN, Environmental Control
RV, Minnesota, Mining & Manufacturing
LOC, 3.97% VR, 8/1/12(c) 100,000
500,000 Fridley, MN, IDA RV, Longview Fibre Co.,
Algemene Bank Netherlands-Amro Bank
LOC, 3.90% VR, 1/1/03(c) 500,000
651,862 Norwest Municipal Money Market Fund 651,862
500,000 St. Paul, MN, Housing & Redvelopment
Authority, District Cooling RV, Series
F, Credit Local de France LOC, 3.90%
VR, 3/1/13(c) 500,000
1,400,000 St. Paul, MN, Housing & Redevelopment
Authority, Utilities RV, Local De
France LOC, 3.90% VR, 12/1/12(c) 1,400,000
---------------
TOTAL SHORT-TERM HOLDINGS (COST $3,151,862)
3,151,862
---------------
TOTAL INVESTMENTS (100.0%) (COST $196,566,929)
$ 206,492,183
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
89
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MINNESOTA TAX-FREE FUND
- ----------------------------------------------------
MUNICIPAL BONDS (96.8%)
CERTIFICATES OF PARTICIPATION & LEASE REVENUE (1.1%)
205,000 Savage, MN, EDA RV, Lease Revenue,
5.40%, 2/1/14 $ 205,357
220,000 Savage, MN, EDA RV, Lease Revenue,
5.45%, 2/1/15 220,669
210,000 Savage, MN, EDA RV, Lease Revenue,
5.50%, 2/1/16 210,785
---------------
636,811
---------------
EDUCATION FACILITIES REVENUE (14.5%)
1,470,000 Hopkins, MN, Educational Facilities RV,
Blake School Project, 5.50%, 9/1/24 1,482,010
500,000 Minnesota HEFA RV, College of St.
Benedict, Series 3-W, 6.00%, 3/1/07 530,260
500,000 Minnesota HEFA RV, University of St.
Thomas, Series 4-M, 5.35%, 4/1/17 503,250
2,250,000 Minnesota State HEFA RV, St. Johns
University, Series 4-L, 5.40%, 10/1/22 2,260,059
3,500,000 Univesity of Minnesota, Educational
Facilities RV, Series A, 5.50%, 7/1/21 3,651,340
---------------
8,426,919
---------------
ELECTRIC REVENUE (10.5%)
1,000,000 Northern Minnesota Municipal Power
Agency, Electric System RV, FSA
insured, 5.25%, 1/1/17 998,750
1,525,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series A,
5.00%, 1/1/21 1,443,047
1,135,000 Northern Minnesota Municipal Power
Agency, Electric System RV, Series B,
AMBAC insured, 5.50%, 1/1/18 1,153,580
1,000,000 Puerto Rico, Electric Power Authority
RV, Series X, 5.50%, 7/1/25 1,001,790
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
ELECTRIC REVENUE (continued)
<TABLE>
<C> <S> <C>
6,000,000 Southern Minnesota Municipal Power
Agency, Power Supply System RV, Series
A, MBIA insured, 0.00% (5.99%
effective yield), 1/1/24 $ 1,497,840
---------------
6,095,007
---------------
ESCROWED IN TREASURIES (3.7%)
200,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, Series A, Goldman
Sachs & Co. LOC, 7.00%, 9/1/11, P/R
9/1/01 @ 102 222,428
210,000 Bloomington, MN, GO Bonds, 9.75%, 2/1/07 268,968
1,240,000 Burnsville, MN, Hospital System RV,
Fairview Community Hospitals, 0.00%
(5.90% effective yield), 5/1/12, P/R
5/22/09 @ 77 545,612
1,000,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 6.50%,
3/1/14, P/R 3/1/02 @ 102 1,102,820
---------------
2,139,828
---------------
GENERAL OBLIGATION (21.7%)
100,000 Bloomington, MN, GO Bonds, 9.70%, 2/1/04 127,995
500,000 Chaska, MN, Independent SD #112, GO
Bonds, Series B, 6.00%, 2/1/13 533,175
1,000,000 Farmington, MN, , Independent SD #192,
GO Bonds, Series A, FSA insured,
5.30%, 6/1/20 1,000,610
2,650,000 Minneapolis, MN, GO Bonds, Sports Arena
Project, 5.20%, 10/1/24 2,656,122
1,000,000 Minneapolis, MN, Special SD #001, GO
Bonds, 5.00%, 2/1/14 992,260
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
90
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
GENERAL OBLIGATION (continued)
<TABLE>
<C> <S> <C>
1,500,000 Minnesota State, GO Bonds, 5.25%, 8/1/15 $ 1,510,245
1,650,000 Minnetonka, MN, Independent SD #276, GO
Bonds, State Credit Enhancement
Program, Series B, 5.75%, 2/1/22 1,728,837
520,000 North St. Paul Maplewood, MN,
Independent SD #622, GO Bonds, Series
A, 5.13%, 2/1/20 516,214
1,025,000 Stillwater, MN, GO Bonds, Series A,
5.38%, 2/1/21 1,028,957
245,000 Waconia, MN, GO Bonds, Water RV, 6.00%,
6/1/07 258,659
2,200,000 Wayzata, MN, Independent SD #284, GO
Bonds, Series A, 5.35%, 2/1/15 2,234,584
---------------
12,587,658
---------------
HEALTH CARE REVENUE (21.5%)
1,435,000 Bemidji, MN, Hospital Facilities, First
Mortgage RV, North Country Health
Services Project, 5.63%, 9/1/21 1,455,104
1,000,000 Brainerd, MN, Health Care Facilities RV,
Benedictine Health-St. Joseph's Health
Center, Series 1993 E, Connie Lee
insured, 6.00%, 2/15/20 1,052,430
500,000 Duluth, MN, EDA, Hospital Facilities RV,
St. Luke's Hospital of Duluth, Series
B, Connie Lee insured, 6.40%, 5/1/18 543,820
500,000 Glencoe, MN, Health Care RV, 6.40%,
12/1/15(f) 509,470
690,000 Glencoe, MN, Hospital RV, 6.63%,
4/1/11(f) 720,753
1,000,000 Hibbing, MN, Health Care Facilities RV,
Duluth Clinic Ltd., FSA insured,
5.50%, 11/1/16 1,021,370
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
HEALTH CARE REVENUE (continued)
<TABLE>
<C> <S> <C>
780,000 Mankato, MN, Hospital Facilities RV, 1st
Mortgage-Immanuel St. Joseph's
Project, Series A, 6.30%, 8/1/22 $ 821,106
1,000,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Childrens Health Care RV,
Series A, FSA insured, 5.70%, 8/15/16 1,036,280
500,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Health Care RV, Group Health
Plan, Inc. Project, 6.75%, 12/1/13 548,955
600,000 Minneapolis & St. Paul, MN, Housing &
Redevelopment Authority Health Care
System, Health Care RV, HealthOne
Obligated Group Project, Series A,
MBIA insured, 7.40%, 8/15/11 655,692
2,800,000 Minnesota Agriculture & Economic
Development Board, Health Care RV,
Fairview Hospital, Series A, MBIA
insured, 5.75%, 11/15/26 2,928,212
115,000 Red Wing, MN, Health Care Facilities RV,
River Region Obligated Group, Series
1993 B, 6.35%, 9/1/07 123,864
1,000,000 Rochester, MN, Health Care Facilities
RV, Mayo Medical Center, Series F,
6.25%, 11/15/21 1,078,230
---------------
12,495,286
---------------
MULTI-FAMILY HOUSING REVENUE (5.9%)
630,000 Maplewood, MN, MFHR Bonds, GNMA-Hazel
Ridge Project, Series A, GNMA COLL,
5.65%, 12/1/24 631,802
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
91
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
MULTI-FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
600,000 Minnesota State, HFA, Housing
Development RV, 6.25%, 2/1/20 $ 607,212
550,000 Minnesota State, HFA, Housing
Development RV, Series A, 6.85%,
2/1/07 581,224
620,000 Minnesota State, HFA, MFHR Bonds, 6.38%,
2/1/20 627,682
490,000 Minnesota State, HFA, Rental Housing RV,
Series B, 6.25%, 8/1/22 495,807
450,000 Minnesota State, HFA, Rental Housing RV,
Series D, MBIA insured, 5.90%, 8/1/15 466,070
---------------
3,409,797
---------------
NURSING HOME REVENUE (3.2%)
500,000 Minneapolis, MN, Health Care Facilities
RV, Ebenezer Society Project, Series
A, 7.20%, 7/1/23(f) 518,010
750,000 Moorhead, MN, EDA, MFHR Bonds, Eventide
Project, Series A, 8.00%, 9/1/11(f) 811,628
500,000 Waconia, MN, Housing & Redevelopment
Authority RV, The Evangelical Lutheran
Project, Series A, 5.85%, 6/1/06 525,215
---------------
1,854,853
---------------
SINGLE FAMILY HOUSING REVENUE (6.8%)
960,000 Minnesota State, HFA, SFM RV, remarketed
8/12/92, 6.25%, 1/1/15 1,004,045
600,000 Minnesota State, HFA, SFM RV, Series A,
5.95%, 1/1/17 625,704
1,070,000 Minnesota State, HFA, SFM RV, Series Q,
6.25% VR, 7/1/14 1,111,452
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS (continued)
SINGLE FAMILY HOUSING REVENUE (continued)
<TABLE>
<C> <S> <C>
675,000 St. Paul, MN, Housing & Redevelopment
Authority, SFM RV, FNMA Mortgage
Backed Securities Program, FNMA
insured, mandatory extraordinary
redemption @ 100, 3/1/07, 6.25%,
9/1/14 $ 712,280
490,000 Vadnais Heights, MN, SFM RV, 6.00%,
11/1/09 512,500
---------------
3,965,981
---------------
SPORTS FACILITIES REVENUE (3.3%)
250,000 Duluth, MN, Gross RV, Spirit Mountain
Recreation Area, Series 1992, 6.40%,
2/1/03(f) 259,353
960,000 Minnesota Iron Range Resources &
Rehabilitation Gross RV, Giants Ridge
Recreational Area, 7.25%, 10/1/11(f) 999,764
115,000 St. Cloud, MN, COP, 5.40%, 12/1/08 114,716
120,000 St. Cloud, MN, COP, 5.50%, 12/1/09 119,687
400,000 St. Cloud, MN, COP, 5.90%, 12/1/17 402,812
---------------
1,896,332
---------------
WATER & SEWER REVENUE (4.6%)
1,000,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 7.00%,
3/1/05 1,157,270
500,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series A, 4.75%,
3/1/11 488,425
1,000,000 Minnesota Public Facilities Authority,
Water PCR Bonds, Series B, 5.40%,
3/1/16 1,015,220
---------------
2,660,915
---------------
TOTAL MUNICIPALS (COST $53,687,177) 56,169,387
---------------
</TABLE>
[LOGO]
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SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MINNESOTA TAX-FREE FUND (continued)
- ----------------------------------------------------
SHORT TERM HOLDINGS (3.2%)
250,000 Bloomington, MN, Port Authority Tax RV,
Mall of America Project, Series B, FSA
LOC, 4.00% VR, 2/1/09(c) $ 250,000
1,000,000 Cottage Grove, MN, Environmental Control
RV, Minnesota, Mining & Manufacturing
LOC, 4.32% VR, 8/1/12(c) 1,000,000
100,000 Hennepin County, MN, RV, Series C, 4.00%
VR, 12/1/06(c) 100,000
382,414 Norwest Municipal Money Market Fund 382,414
100,000 St. Paul, MN, Housing & Redevelopment
Authority, Utilities RV, Local De
France LOC, 4.00% VR, 12/1/12(c) 100,000
---------------
TOTAL SHORT-TERM HOLDINGS (COST $1,832,414)
1,832,414
---------------
TOTAL INVESTMENTS (100.0%)
(COST $55,519,591) $ 58,001,801
---------------
---------------
- ----------------------------------------------------
STRATEGIC INCOME FUND
- ----------------------------------------------------
N/A Disciplined Growth Portfolio of Core
Trust (Delaware)(e) $ 1,540,067
N/A Income Equity Portfolio of Core Trust
(Delaware)(e) 7,738,428
N/A Index Non-Public Portfolio of Core Trust
(Delaware)(e) 7,768,456
N/A International Portfolio of Core Trust
(Delaware)(e) 4,452,860
N/A Large Company Portfolio of Core Trust
(Delaware)(e) 6,164,315
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware)(e) 36,878,606
N/A Money Market Portfolio of Core Trust
(Delaware)(e) 13,945,382
N/A Positive Return Portfolio of Core Trust
(Delaware)(e) 24,612,090
N/A Schroder EM Core Portfolio(e) 138,105
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STRATEGIC INCOME FUND (continued)
- ----------------------------------------------------
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(e) $ 457,708
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) 911,544
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) 760,990
N/A Small Company Value Portfolio of Core
Trust (Delaware)(e) 925,294
N/A Stable Income Portfolio of Core Trust
(Delaware)(e) 20,909,004
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(e) 12,309,434
---------------
TOTAL INVESTMENTS (100.0%) (COST $122,818,929)
$ 139,512,283
---------------
---------------
- ----------------------------------------------------
MODERATE BALANCED INCOME FUND
- ----------------------------------------------------
N/A Disciplined Growth Portfolio of Core
Trust (Delaware)(e) $ 8,779,612
N/A Income Equity Portfolio of Core Trust
(Delaware)(e) 44,212,326
N/A Index Non-Public Portfolio of Core Trust
(Delaware)(e) 44,381,836
N/A International Portfolio of Core Trust
(Delaware)(e) 25,177,028
N/A Large Company Portfolio of Core Trust
(Delaware)(e) 35,216,612
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware)(e) 90,076,733
N/A Positive Return Portfolio of Core Trust
(Delaware)(e) 60,155,708
N/A Schroder EM Core Portfolio(e) 776,480
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(e) 2,582,939
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) 5,088,646
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) 4,241,345
N/A Small Company Value Portfolio of Core
Trust (Delaware)(e) 5,260,089
N/A Stable Income Portfolio of Core Trust
(Delaware)(e) 62,709,417
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
93
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MODERATE BALANCED INCOME FUND (continued)
- ----------------------------------------------------
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(e) $ 30,064,532
---------------
TOTAL INVESTMENTS (100.0%) (COST $343,390,490)
$ 418,723,303
---------------
---------------
- ----------------------------------------------------
GROWTH BALANCED INCOME FUND
- ----------------------------------------------------
N/A Disciplined Growth Portfolio of Core
Trust (Delaware)(e) 18,316,251
N/A Income Equity Portfolio of Core Trust
(Delaware)(e) 92,888,081
N/A Index Non-Public Portfolio of Core Trust
(Delaware)(e) 92,637,491
N/A International Portfolio of Core Trust
(Delaware)(e) 52,586,704
N/A Large Company Portfolio of Core Trust
(Delaware)(e) 73,121,655
N/A Managed Fixed Income Portfolio of Core
Trust (Delaware)(e) 99,007,821
N/A Positive Return Portfolio of Core Trust
(Delaware)(e) 66,124,588
N/A Schroder EM Core Portfolio(e) 1,644,426
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(e) 5,484,726
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) 10,899,715
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) 9,011,487
N/A Small Company Value Portfolio of Core
Trust (Delaware)(e) 11,044,559
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware)(e) 33,102,189
---------------
TOTAL INVESTMENTS (100.0%) (COST $429,574,508)
$ 565,869,693
---------------
---------------
- ----------------------------------------------------
INDEX FUND
- ----------------------------------------------------
N/A Index Non-Public Portfolio of Core Trust
(Delaware)(e) $ 574,531,659
---------------
TOTAL INVESTMENTS (100.0%) (COST $414,115,035)
$ 574,531,659
---------------
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INCOME EQUITY FUND
- ----------------------------------------------------
N/A Income Equity Portfolio of Core Trust
(Delaware)(e) $ 1,122,779,563
---------------
TOTAL INVESTMENTS (100.0%) (COST $741,334,105)
$ 1,122,779,563
---------------
---------------
- ----------------------------------------------------
VALUGROWTH-SM- STOCK FUND
- ----------------------------------------------------
COMMON STOCK (96.0%)
AMUSEMENT & RECREATION SERVICES (1.8%)
121,673 Walt Disney Co.(d) $ 11,551,330
---------------
BUSINESS SERVICES (5.1%)
327,400 Cabletron Systems, Inc.(a) 7,530,200
258,600 Computer Associates International, Inc. 13,463,363
85,080 Microsoft Corp.(a) 12,038,819
---------------
33,032,382
---------------
CHEMICALS & ALLIED PRODUCTS (5.4%)
239,980 E.I. du Pont
de Nemours & Co. 14,533,790
207,000 Ecolab, Inc. 10,557,000
219,300 Monsanto Co. 9,580,670
---------------
34,671,460
---------------
DEPOSITORY INSTITUTIONS (7.1%)
221,400 BankAmerica Corp. 16,162,200
79,000 Citicorp(d) 9,475,061
201,680 First Union Corp.(d) 9,831,900
173,300 State Street Corp. 10,311,349
---------------
45,780,510
---------------
ELECTRIC, GAS & SANITARY SERVICES (6.0%)
229,300 Consolidated Natural Gas Co. 13,843,988
334,100 Texas Utilities Co. 13,364,000
346,033 USA Waste Services, Inc.(a)(d) 11,440,717
---------------
38,648,705
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (13.0%)
412,970 American Power Conversion Corp.(a)(d) 12,543,965
221,312 Emerson Electric Co. 12,172,161
91,400 General Electric Co. 6,740,750
211,274 Honeywell, Inc. 13,838,447
123,400 Intel Corp. 9,578,924
</TABLE>
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
VALUGROWTH-SM- STOCK FUND (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
94,900 Motorola, Inc. $ 5,966,837
258,700 Philips Electronics N.V.(d) 17,332,900
143,600 Telefonaktiebolaget LM Ericsson, Series
B, Sponsored ADR 5,806,826
---------------
83,980,810
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(6.0%)
139,280 Gillette Co.(d) 12,857,286
380,101 Newell Co. 15,512,831
242,500 Parker-Hannifin Corp. 10,791,250
---------------
39,161,367
---------------
FEDERAL AGENCIES & INSTRUMENTALITIES (2.2%)
271,200 FNMA 14,322,751
---------------
FOOD & KINDRED PRODUCTS (5.9%)
140,900 Coca-Cola Co. 8,806,250
434,000 PepsiCo, Inc. 16,003,750
175,000 Procter & Gamble Co. 13,354,688
---------------
38,164,688
---------------
GENERAL MERCHANDISE STORES (2.2%)
129,500 May Department Stores Co. 6,960,624
154,100 Sears Roebuck and Co. 7,059,705
---------------
14,020,329
---------------
HEALTH SERVICES (0.8%)
197,600 Vencor, Inc.(a)(d) 4,793,328
---------------
HOLDING & OTHER INVESTMENT OFFICES (1.9%)
137,800 Franklin Resources, Inc. 12,384,774
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.6%)
162,900 Black & Decker Corp.(d) 5,986,575
176,150 Cisco Systems Inc.(a) 15,192,937
291,300 Culligan Water Technologies, Inc.(a) 13,072,088
378,300 Dresser Industries, Inc.(d) 14,138,962
462,800 EMC Corp.(a)(d) 14,028,625
---------------
62,419,187
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
VALUGROWTH-SM- STOCK FUND (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
INSURANCE CARRIERS (3.4%)
94,025 American International Group, Inc. $ 9,478,895
172,400 Chubb Corp. 12,229,626
---------------
21,708,521
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (6.7%)
136,480 Baxter International, Inc.(d) 6,909,302
213,800 Becton, Dickinson & Co.(d) 11,024,063
248,405 Thermo Electron Corp.(a)(d) 9,144,410
215,800 Xerox Corp.(d) 16,764,963
---------------
43,842,738
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (1.6%)
252,100 Mattel, Inc.(d) 10,099,757
---------------
OIL & GAS EXTRACTION (2.0%)
159,600 Schlumberger, Ltd. 13,137,075
---------------
PAPER & ALLIED PRODUCTS (2.0%)
251,600 Kimberly-Clark Corp. 13,098,924
---------------
PERSONAL SERVICES (2.4%)
371,200 H & R Block, Inc. 15,219,199
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (3.7%)
152,700 Chevron Corp.(d) 12,244,631
167,199 Mobil Corp. 12,027,951
---------------
24,272,582
---------------
PHARMACEUTICAL PREPARATIONS (3.6%)
93,800 American Home Products Corp. 6,554,274
110,330 Johnson & Johnson 6,943,894
103,700 Merck & Co., Inc. 9,806,131
---------------
23,304,299
---------------
REAL ESTATE INVESTMENT TRUST (2.6%)
149,500 Beacon Properties Corp. 6,727,500
330,700 Patriot American Hospitality, Inc.(d) 10,334,374
---------------
17,061,874
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.0%)
259,500 Gentex Corp.(a)(d) 6,422,624
---------------
TOTAL COMMON STOCK (COST $457,988,328) 621,099,214
---------------
</TABLE>
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95
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
VALUGROWTH-SM- STOCK FUND (continued)
- ----------------------------------------------------
SHORT-TERM HOLDINGS (4.0%)
13,088,922 Dreyfus Cash Management Fund $ 13,088,922
13,087,483 Institutional Funds Group, TempFund Fund 13,087,483
---------------
TOTAL SHORT-TERM HOLDINGS (COST $26,176,405)
26,176,405
---------------
WARRANTS (0.0%)
28 Jan Bell Marketing, Inc. 0
---------------
TOTAL WARRANTS (COST $0) 0
---------------
TOTAL INVESTMENTS (100.0%) (COST $484,164,733)
$ 647,275,619
---------------
---------------
- ----------------------------------------------------
DIVERSIFIED EQUITY FUND
- ----------------------------------------------------
N/A Disciplined Growth Portfolio(e) $ 71,801,162
N/A Income Equity Portfolio of Core Trust
(Delaware)(e) 370,193,629
N/A Index Non-Public Portfolio of Core Trust
(Delaware)(e) 368,747,478
N/A International Portfolio of Core Trust
(Delaware)(e) 204,918,635
N/A Large Company Portfolio of Core Trust
(Delaware)(e) 290,052,478
N/A Schroder EM Core Portfolio(e) 6,291,522
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(e) 21,290,660
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) 41,881,556
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) 34,192,208
N/A Small Company Value Portfolio of Core
Trust (Delaware)(e) 43,334,636
---------------
TOTAL INVESTMENTS (100.0%) (COST $999,291,380)
$ 1,452,703,964
---------------
---------------
- ----------------------------------------------------
GROWTH EQUITY FUND
- ----------------------------------------------------
N/A International Portfolio of Core Trust
(Delaware)(e) $ 273,264,884
N/A Large Company Portfolio of Core Trust
(Delaware)(e) 353,507,583
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
GROWTH EQUITY FUND (continued)
- ----------------------------------------------------
N/A Schroder EM Core Portfolio(e) $ 8,370,654
N/A Small Cap Value Portfolio of Core Trust
(Delaware)(e) 52,161,777
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) 103,718,645
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) 83,874,406
N/A Small Company Value Portfolio of Core
Trust (Delaware)(e) 106,854,662
---------------
TOTAL INVESTMENTS (100.0%) (COST $764,347,239)
$ 981,752,611
---------------
---------------
- ----------------------------------------------------
LARGE COMPANY GROWTH FUND
- ----------------------------------------------------
N/A Large Company Portfolio of Core Trust
(Delaware)(e) $ 165,465,018
---------------
TOTAL INVESTMENTS (100.0%) (COST $112,064,379)
$ 165,465,018
---------------
---------------
- ----------------------------------------------------
SMALL COMPANY STOCK FUND
- ----------------------------------------------------
N/A Small Company Stock Portfolio of Core
Trust (Delaware)(e) $ 223,635,780
---------------
TOTAL INVESTMENTS (100.0%) (COST $216,195,430)
$ 223,635,780
---------------
---------------
- ----------------------------------------------------
SMALL COMPANY GROWTH FUND
- ----------------------------------------------------
N/A Small Company Growth Portfolio of Core
Trust (Delaware)(e) $ 724,618,197
---------------
TOTAL INVESTMENTS (100.0%) (COST $637,672,948)
$ 724,618,197
---------------
---------------
- ----------------------------------------------------
SMALL CAP OPPORTUNITIES FUND
- ----------------------------------------------------
N/A Schroder U.S. Smaller Companies
Portfolio(e) $ 180,110,438
---------------
TOTAL INVESTMENTS (100.0%) (COST $164,445,598)
$ 180,110,438
---------------
---------------
</TABLE>
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96
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CONTRARIAN STOCK FUND
- ----------------------------------------------------
COMMON STOCK (89.3%)
APPAREL & ACCESSORY STORES (5.2%)
10,900 Limited, Inc. $ 262,281
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(1.6%)
9,800 Hartmarx Corp.(a) 79,625
---------------
CHEMICALS & ALLIED PRODUCTS (5.7%)
800 Dow Chemical Co. 79,000
2,300 Pharmacia & Upjohn, Inc. 77,625
6,400 Wellman, Inc. 135,600
---------------
292,225
---------------
COAL MINING (0.7%)
4,000 Pittston Minerals Group 36,500
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(3.0%)
10,500 Material Sciences Corp.(a) 154,218
---------------
FOOD & KINDRED PRODUCTS (5.4%)
16,200 Chiquita Brands International, Inc.(d) 274,387
---------------
GENERAL MERCHANDISE STORES (3.8%)
1,700 Dilliards, Inc. 62,156
3,300 Wal-Mart Stores, Inc. 131,794
---------------
193,950
---------------
HOLDING & OTHER INVESTMENT OFFICES (1.8%)
23,800 Mesabi Trust 92,225
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.6%)
5,800 Bombay Co., Inc.(a) 30,088
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.0%)
6,000 Ampco Pittsburgh Corp. 114,000
6,200 Gerber Scientific, Inc. 124,000
7,000 McDermott International, Inc. 220,500
---------------
458,500
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (2.0%)
3,700 Flowserve Corp. 99,438
---------------
METAL MINING (2.9%)
8,000 Cyprus Amax Minerals Co.(d) 146,500
---------------
MINING & QUARRYING OF NONMETALLIC MINERALS, EXCEPT FUELS (1.6%)
8,000 Dravo Corp.(a) 79,500
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.3%)
3,100 Werner Enterprises, Inc. 66,263
---------------
PAPER & ALLIED PRODUCTS (6.2%)
3,700 Bowater, Inc. 166,038
2,400 Champion International Corp. 128,550
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
CONTRARIAN STOCK FUND (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
PAPER & ALLIED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
400 Consolidated Papers, Inc. $ 21,550
---------------
316,138
---------------
PAPER & FOREST PRODUCTS (2.1%)
8,200 Abitibi-Consolidated, Inc. 106,600
---------------
PRIMARY METAL INDUSTRIES (24.1%)
8,500 Alcan Aluminum Ltd. 228,968
8,800 Alumax, Inc.(a) 276,650
24,000 Armco, Inc.(a) 127,500
1,900 Asarco, Inc. 47,262
9,500 Bethlehem Steel Corp.(a) 97,375
7,606 Inland Steel Industries, Inc.(d) 145,465
11,500 LTV Corp. 127,938
5,600 USX-US Steel Group, Inc.(d) 175,350
---------------
1,226,508
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.2%)
2,000 Lafarge Corp. 59,750
---------------
TEXTILE MILL PRODUCTS (5.3%)
5,300 Albany International Corp. 128,856
3,600 Burlington Industries, Inc.(a) 52,200
11,100 Cone Mills Corp.(a) 87,413
---------------
268,469
---------------
TRANSPORTATION SERVICES (3.8%)
5,300 Ryder System, Inc. 192,456
---------------
TRUCKING (0.5%)
800 Teekay Shipping Corp. 26,000
---------------
WATER TRANSPORTATION (1.5%)
2,500 Knightsbridge Tankers Ltd. 76,250
---------------
TOTAL COMMON STOCK (COST $3,893,497) 4,537,871
---------------
SHORT-TERM HOLDINGS (10.7%)
277,213 Dreyfus Treasury Cash Management Fund 277,214
268,668 Institutional Funds Group, TempFund Fund 268,668
---------------
SHORT-TERM HOLDINGS (COST $545,882) 545,882
---------------
TOTAL INVESTMENTS (100.0%) (COST $4,439,379)
$ 5,083,753
---------------
---------------
- ----------------------------------------------------
INTERNATIONAL FUND
- ----------------------------------------------------
N/A International Portfolio of Core Trust
(Delaware)(e) $ 231,251,287
N/A Schroder EM Core Portfolio(e) 7,119,266
---------------
TOTAL INVESTMENTS (100.0%) (COST $222,300,067)
$ 238,370,553
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
97
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Securities that may be resold to "qualified institutional buyers" under rule
144A or securities offered pursuant to 4(2) of the Securities Act of 1933,
as amended.
(c) Certain rate securities are deemed to have a maturity remaining until the
next readjustment of the interest rate or the longer of the demand period or
readjustment. The interest rates shown reflect the rate in effect on
November 30, 1997.
(d) Part or all of this investment on loan, see Note 6 of Notes to Financial
Statements.
(e) The Funds have invested in a joint repurchase agreement. The following
represents the collateral on the BancAmerica Robertson Stephens joint
repurchase agreement: Collateralized by $22,460,000 FNMA Discount Notes,
5.53%, 1998; $26,280,000 FFCB Discount Notes, 5.40% to 5.58%, 1998 and
$153,000,000 FHLB Discount Notes, 5.54% to 5.58%, 1998.
(f) The Funds have invested in a joint repurchase agreement. The following
represents the collateral on the Bear, Stearns & Co., Inc. joint repurchase
agreement: Collateralized by multiple UST Strips, 0%, 2/15/01 - 8/15/04, Par
$65,000,000.
(g) The following percentages represents each Fund's investments in their
respective Portfolio's as of November 30, 1997:
<TABLE>
<CAPTION>
TOTAL
STABLE RETURN STRATEGIC MODERATE GROWTH INCOME
INCOME DIVERSIFIED BOND INCOME BALANCED BALANCED INDEX EQUITY
FUND BOND FUND FUND FUND FUND FUND FUND FUND
-------- ----------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Positive Return Bond Portfolio..... N/A 27.93% N/A 11.76% 28.73% 31.58% N/A N/A
Stable Income Portfolio............ 61.73% N/A N/A 9.57% 28.70% N/A N/A N/A
Managed Fixed Income Portfolio..... N/A 27.95% N/A 11.76% 28.72% 31.57% N/A N/A
Total Return Bond Portfolio........ N/A N/A 100.00% N/A N/A N/A N/A N/A
Index Portfolio.................... N/A N/A N/A 0.71% 4.08% 8.51% 52.80% N/A
Income Equity Portfolio............ N/A N/A N/A 0.47% 2.70% 5.67% N/A 68.53%
Large Company Growth Portfolio..... N/A N/A N/A 0.67% 3.81% 7.92% N/A N/A
Small Company Stock Portfolio...... N/A N/A N/A 0.21% 1.19% 2.53% N/A N/A
Small Company Growth Portfolio..... N/A N/A N/A 0.10% 0.57% 1.23% N/A N/A
Small Company Value Portfolio...... N/A N/A N/A 0.55% 3.14% 6.60% N/A N/A
International Portfolio............ N/A N/A N/A 0.56% 3.18% 6.64% N/A N/A
Strategic Value Bond Portfolio..... N/A 27.47% N/A 11.55% 28.21% 31.06% N/A N/A
Disciplined Growth Portfolio....... N/A N/A N/A 1.50% 8.52% 17.78% N/A N/A
Small Cap Value Portfolio.......... N/A N/A N/A 0.55% 3.12% 6.62% N/A N/A
Schroder U.S. Smaller Companies
Portfolio........................ N/A N/A N/A N/A N/A N/A N/A N/A
Schroder Global Growth Portfolio... N/A N/A N/A N/A N/A N/A N/A N/A
Schroder EM Core Portfolio......... N/A N/A N/A 0.57% 3.19% 6.76% N/A N/A
Money Market Portfolio............. N/A N/A N/A 0.68% N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
LARGE SMALL SMALL SMALL
DIVERSIFIED GROWTH COMPANY COMPANY COMPANY CAP
EQUITY EQUITY GROWTH STOCK GROWTH OPPORTUNITIES INTERNATIONAL
FUND FUND FUND FUND FUND FUND FUND
----------- -------- -------- -------- -------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Positive Return Bond Portfolio..... N/A N/A N/A N/A N/A N/A N/A
Stable Income Portfolio............ N/A N/A N/A N/A N/A N/A N/A
Managed Fixed Income Portfolio..... N/A N/A N/A N/A N/A N/A N/A
Total Return Bond Portfolio........ N/A N/A N/A N/A N/A N/A N/A
Index Portfolio.................... 33.90% N/A N/A N/A N/A N/A N/A
Income Equity Portfolio............ 22.59% N/A N/A N/A N/A N/A N/A
Large Company Growth Portfolio..... 31.41% 38.28% 17.92% N/A N/A N/A N/A
Small Company Stock Portfolio...... 9.61% 23.58% N/A 62.88% N/A N/A N/A
Small Company Growth Portfolio..... 4.72% 11.69% N/A N/A 81.68% N/A N/A
Small Company Value Portfolio...... 25.88% 63.83% N/A N/A N/A N/A N/A
International Portfolio............ 25.88% 34.51% N/A N/A N/A N/A 29.21%
Strategic Value Bond Portfolio..... N/A N/A N/A N/A N/A N/A N/A
Disciplined Growth Portfolio....... 69.71% N/A N/A N/A N/A N/A
Small Cap Value Portfolio.......... 25.69% 62.92% N/A N/A N/A N/A N/A
Schroder U.S. Smaller Companies
Portfolio........................ N/A N/A N/A N/A N/A 81.59% N/A
Schroder Global Growth Portfolio... N/A N/A N/A N/A N/A N/A N/A
Schroder EM Core Portfolio......... 25.85% 34.38% N/A N/A N/A N/A 29.25%
Money Market Portfolio............. N/A N/A N/A N/A N/A N/A N/A
</TABLE>
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98
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
(f) These securities have been determined to be illiquid. In the absence of
market value, the securities are valued based upon their face value
determined under procedures approved by the Board of Trustees. A Fund may
make investments in an amount up to 10% of the value of the Fund's net
assets in such securities. The date of acquisition, acquisition cost and
carry value per unit as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION CARRY VALUE
SECURITY DESCRIPTION DATE COST PER UNIT
- ---------------------------------------- ------------ ------------ -------------
<S> <C> <C> <C>
LIMITED TERM TAX-FREE FUND:
Boise City, ID, HFA RV, 5.25%, 2/1/02... 2/20/97 $1,200,000 $ 100.774
County of Westchester, NY, IDA RV,
5.75%, 1/1/02......................... 3/31/97 840,000 103.374
Philadelphia, PA, IDA RV, 6.13%,
2/15/03............................... 12/5/96 556,281 102.872
San Antonio, TX, HEFA, 6.50%, 11/1/01... 10/14/96 355,000 103.589
San Antonio, TX, HEFA, 6.50%, 11/1/01... 2/7/97 502,500 103.589
TAX-FREE FUND:
Denver, CO, Urban Renewal Authority, Tax
Increment RV, 9.13%, 9/1/17........... 6/3/94 3,245,310 118.582
Denver, CO, Urban Renewal Authority, Tax
Increment RV, 9.13%, 9/1/17........... 11/21/95 2,408,186 118.582
Fairfax County, VA, Redevelopment &
Housing Authority, 7.60%, 10/1/36..... 10/16/96 3,000,000 107.243
Illinois Development Financial Authority
RV, Series A, 7.88%, 7/1/20........... 11/26/97 1,800,000 122.015
Illinois Development Financial Authority
RV, Series A, 7.88%, 7/1/20........... 11/26/97 1,000,000 111.206
Illinois Health Facilities Authority RV,
Series A, 9.25%, 7/1/24............... 10/22/96 1,245,406 119.643
Northern Metropolitan District, CO, GO
Bonds RV, 6.50%, 12/1/16.............. 10/14/97 1,000,000 101.305
New Bedford, MA, IDA RV, Series 1982,
7.42%, 7/1/02......................... 6/19/92 590,000 101.169
San Antonio, TX, HEFA, 7.13%, 11/1/15... 2/22/96 4,180,000 108.632
South Dakota State, HEFA RV, 7.30%,
4/1/16................................ 4/15/94 1,750,000 117.920
South Dakota State, HEFA RV, 7.30%,
4/1/16................................ 11/8/95 1,848,875 117.920
COLORADO TAX-FREE FUND:
Northern Metropolitan District, CO, GO
Bonds, 6.50%, 12/1/16................. 10/14/97 1,000,000 101.305
Centennial, CO, Water & Sanitation
District RV, Series A, 5.13%,
12/1/17............................... 10/22/97 1,687,228 99.801
MINNESOTA INTERMEDIATE TAX-FREE FUND
Duluth, MN, Gross RV, 6.00%, 2/1/00..... 7/23/92 285,000 103.088
Glencoe, MN, Electric RV, 10.00,
5/1/98................................ 3/23/84 400,000 102.531
Minneapolis, MN, Health Care Facilities
RV, Series A, 7.20%, 7/1/23........... 7/6/95 495,525 103.602
Minnesota State, HEFA RV, Series 2-X,
8.50%, 10/1/05........................ 8/14/95 1,350,675 105.695
Minnesota Iron Range Resources &
Rehabilitation Gross RV, 7.25%,
10/1/11............................... 6/27/96 1,445,000 104.142
Moorhead, MN, EDA, Series A, 8.00%,
9/1/11................................ 7/30/96 267,063 108.217
Seaway Port Authority Duluth, MN,
Industrial Development Dock & Wharf
RV,
Series B, 6.80%, 5/1/12............... 6/18/97 873,920 110.222
Seaway Port Authority Duluth, MN,
Industrial Development Dock & Wharf
RV,
Series B, 6.80%, 5/1/12............... 5/20/92 1,300,000 110.222
Spring Park, MN, Health Care Facilities
RV, 7.50%, 8/1/98..................... 8/20/91 95,000 101.944
St. Paul, MN, Distribution Cooling
RV,Series C, 8.00%, 3/1/12............ 10/15/91 2,640,000 109.178
St. Paul, MN, Heating RV, 8.30%,
11/1/04............................... 11/14/89 1,687,228 104.442
St. Louis Park, MN, Commercial
Development RV, 7.00%, 6/1/06......... 6/15/92 615,000 105.136
White Bear Lake, MN, Nursing Home RV,
8.25%, 11/1/12........................ 9/27/95 1,621,575 111.259
MINNESOTA TAX-FREE FUND:
Duluth, MN, Gross RV, Series 1992,
6.40%, 2/1/03......................... 7/23/92 250,000 103.741
Glencoe, MN, Hospital RV, 6.63%,
4/1/11................................ 7/25/96 685,142 104.457
Glencoe, MN, Health Care RV, 6.40%,
12/1/15............................... 3/4/97 489,285 101.894
Minneapolis, MN, Health Care Facilities
RV, Series A, 7.20%, 7/1/23........... 7/6/95 495,525 103.602
Minnesota Iron Range Resources &
Rehabilitation Gross RV, 7.25%,
10/1/11............................... 6/27/96 960,000 104.142
Moorhead, MN, EDA, Series A, 8.00%,
9/1/11................................ 7/30/96 801,188 108.217
</TABLE>
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99
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
ABBREVIATIONS
<TABLE>
<S> <C>
ADR American Depositary Receipts
AMBAC American Municipal Bond Assurance Corporation
AMBS Agriculture Mortgage Backed Securities
BIG Bond Insurance Group
COLL Collateralized
COP Certificate of Participation
DOT Department of Transportation
EDA Economic Development Authority
EFA Education Finance Authority
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
HEFA Higher Education Facilities Authority
HEHFA Higher Education & Health Facilities Authority
HFA Housing Finance Authority
HUD Department of Housing and Urban Development
IDA Industrial Development Authority
LOC Letter of Credit
MBIA Municipal Bond Insurance Association
MFHR Multi Family Housing Revenue
P/R Prerefunded
PCR Pollution Control Revenue
PFA Public Finance Authority
RV Revenue Bonds
SD School District
SFM Single Family Mortgage
TVA Tennessee Valley Authority
USG U.S. Governments
UTGO Unlimited Tax General Obligation
VA Veterans'
VR Variable Rate
</TABLE>
See Notes to Financial Statements.
[LOGO]
100
<PAGE>
NORWEST ADVANTAGE PERFORMA FUNDS
SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
PERFORMA STRATEGIC VALUE BOND FUND
PERFORMA DISCIPLINED GROWTH FUND
PERFORMA SMALL CAP VALUE FUND
PERFORMA GLOBAL GROWTH FUND
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA
STRATEGIC PERFORMA PERFORMA PERFORMA
VALUE DISCIPLINED SMALL CAP GLOBAL
BOND FUND GROWTH FUND VALUE FUND GROWTH FUND
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments (Note 2)
Investments at cost........................... $1,796,253 $ 2,581,594 $ 941,502 $ 346,756
Net unrealized appreciation (depreciation).... 17,152 (20,458) (33,345) (12,208)
----------- ------------- ----------- -------------
TOTAL INVESTMENTS AT VALUE........................ 1,813,405 2,561,136 908,157 334,548
Interest, dividends and other receivables....... - 115 - -
Receivable for Fund shares issued............... - 40,100 - -
Receivable from other related parties........... - - 222 352
Organization Costs, net of amortization (Note
2)............................................ 3,364 3,364 3,364 3,364
----------- ------------- ----------- -------------
TOTAL ASSETS...................................... 1,816,769 2,604,715 911,743 338,264
----------- ------------- ----------- -------------
LIABILITIES:
Accrued expenses & other liabilities............ 4,497 3,559 3,364 3,364
----------- ------------- ----------- -------------
TOTAL LIABILITIES................................. 4,497 3,559 3,364 3,364
----------- ------------- ----------- -------------
NET ASSETS........................................ $1,812,272 $ 2,601,156 $ 908,379 $ 334,900
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
COMPONENTS OF NET ASSETS:
Paid-in capital................................. $1,791,993 $ 2,638,120 $ 963,094 $ 350,020
Undistributed (distributions in excess) net
investment income (loss)...................... 1,759 1,361 (409) 52
Accumulated net realized gain (loss) from
investments sold.............................. 1,368 (17,867) (20,961) (2,964)
Net unrealized appreciation (depreciation) from
investments................................... 17,152 (20,458) (33,345) (12,208)
----------- ------------- ----------- -------------
NET ASSETS........................................ $1,812,272 $ 2,601,156 $ 908,379 $ 334,900
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
SHARES OF BENEFICIAL INTEREST..................... 179,517 273,227 97,713 35,890
NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER
SHARE (NET ASSETS DIVIDED BY SHARES OF
BENEFICIAL INTEREST)............................. $ 10.10 $ 9.52 $ 9.30 $ 9.33
</TABLE>
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See Notes to Financial Statements.
102
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA PERFORMA PERFORMA PERFORMA
STRATEGIC DISCIPLINED SMALL CAP GLOBAL
VALUE BOND FUND GROWTH FUND VALUE FUND GROWTH FUND
--------------- --------------- --------------- ---------------
FOR THE PERIOD OCTOBER 15, 1997 (COMMENCEMENT OF OPERATIONS) THROUGH
NOVEMBER 30, 1997
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income................................. $ 13,134 $ 457 $ 230 $ 378
Dividend income................................. - 4,013 781 165
Net expenses allocated from Core Trust and
Schroder Core (Note 1)........................ (1,158) (2,366) (1,091) (288)
--------------- --------------- --------------- ---------------
TOTAL INCOME...................................... 11,976 2,104 (80) 255
--------------- --------------- --------------- ---------------
EXPENSES
Investment advisory (Note 3).................... - - - 85
Administration (Note 3)......................... 49 59 26 8
Management (Note 3)............................. 49 59 26 8
Transfer Agent (Note 3)......................... 489 592 260 85
Accounting (Note 3)............................. 1,548 1,548 1,548 1,548
Registration.................................... 14,271 14,271 14,471 14,271
Audit........................................... 3,250 3,250 3,250 3,250
Amortization of organization costs (Note 2)..... 116 116 116 116
Miscellaneous................................... 100 7 7 7
--------------- --------------- --------------- ---------------
TOTAL EXPENSES.................................... 19,872 19,902 19,704 19,378
FEES WAIVED AND EXPENSES REIMBURSED (Note 5).... (19,252) (19,159) (19,375) (19,175)
--------------- --------------- --------------- ---------------
NET EXPENSES...................................... 620 743 329 203
--------------- --------------- --------------- ---------------
NET INVESTMENT INCOME (LOSS)...................... 11,356 1,361 (409) 52
--------------- --------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS OF CORE TRUST:
Net Realized Gain (Loss) from Investments of Core
Trust and Schroder Core.......................... 1,368 (17,867) (20,961) (2,964)
--------------- --------------- --------------- ---------------
Net Change in Unrealized Appreciation
(Depreciation) from Investments of Core Trust and
Schroder Core.................................... 17,152 (20,458) (33,345) (12,208)
--------------- --------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS OF CORE TRUST........................ 18,520 (38,325) (54,306) (15,172)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.................................. $ 29,876 $(36,964) $(54,715) $(15,120)
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
</TABLE>
[LOGO]
See Notes to Financial Statements.
103
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERFORMA PERFORMA
STRATEGIC PERFORMA PERFORMA GLOBAL
VALUE DISCIPLINED SMALL CAP GROWTH
BOND FUND GROWTH FUND VALUE FUND FUND
------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
NET ASSETS--OCTOBER 15, 1997 (COMMENCEMENT OF
OPERATIONS)...................................... $ 10 $ 10 $ 10 $ 10
------------ ------------ ---------- ----------
OPERATIONS
Net investment income (loss).................... 11,356 1,361 (409) 52
Net realized gain (loss) from investments....... 1,368 (17,867) (20,961) (2,964)
Net change in unrealized appreciation
(depreciation) from investments............... 17,152 (20,458) (33,345) (12,208)
------------ ------------ ---------- ----------
29,876 (36,964) (54,715) (15,120)
------------ ------------ ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income........................... (9,597) - - -
------------ ------------ ---------- ----------
CAPITAL SHARE TRANSACTIONS
Sale of Shares.................................. 1,797,948 3,988,410 963,084 350,010
Reinvestment of distributions................... 5,035 - - -
Redemption of Shares............................ (11,000) (1,350,300) - -
------------ ------------ ---------- ----------
NET INCREASE (DECREASE) FROM CAPITAL SHARE
TRANSACTIONS..................................... 1,791,983 2,638,110 963,084 350,010
------------ ------------ ---------- ----------
NET ASSETS--NOVEMBER 30, 1997..................... $1,812,272 $ 2,601,156 $908,379 $334,900
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
SHARE TRANSACTIONS
Sale of Shares.................................. 180,521 408,257 97,713 35,890
Reinvestment of distributions................... 87 - - -
Redemption of Shares............................ (1,091) (135,030) - -
------------ ------------ ---------- ----------
NET INCREASE (DECREASE) IN SHARES................. 179,517 273,227 97,713 35,890
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
</TABLE>
[LOGO]
See Notes to Financial Statements.
104
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
Selected per share data and ratios for a share outstanding throughout the
period:
<TABLE>
<CAPTION>
PERFORMA
STRATEGIC PERFORMA PERFORMA PERFORMA
VALUE DISCIPLINED SMALL CAP GLOBAL
BOND FUND GROWTH FUND VALUE FUND GROWTH FUND
------------- --------------- ------------- ---------------
FOR THE PERIOD ENDED NOVEMBER 30, 1997
--------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period(a)........... $ 10.00 $ 10.00 $ 10.00 $ 10.00
------ ------- ------------- -------
Investment Operations
Net Investment Income (Loss).................... 0.12 - - -
Net Realized and Unrealized Gain (Loss) on
Investments................................... 0.04 (0.48) (0.70) (0.67)
------ ------- ------------- -------
Total from Investment Operations.................. 0.16 (0.48) (0.70) (0.67)
------ ------- ------------- -------
Distributions From:
Net Investment Income........................... (0.06) - - -
------ ------- ------------- -------
Net Asset Value, End of Period.................... $ 10.10 $ 9.52 $ 9.30 $ 9.33
------ ------- ------------- -------
------ ------- ------------- -------
Total Return(b)(c)................................ 1.55% (4.80)% (7.00)% (6.70)%
Ratio/Supplementary Data
Net Assets at End of Period (000's omitted)..... $ 1,812 $ 2,601 $ 908 $ 335
Ratios to Average Net Assets:
Expenses including reimbursement/waiver of
fees(d)(e).................................... 0.91% 1.31% 1.37% 1.45%
Expenses excluding reimbursement/waiver of
fees(d)(e).................................... 10.80% 9.46% 20.05% 63.51%
Net investment income (loss) including
reimbursement/ waiver of fees(d)(e)........... 5.81% 0.57% (0.39)% 0.15%
Average Commission Rate Per Share(f).............. N/A $ 0.0587 $ 0.0583 $ 0.0444
Portfolio Turnover Rate(g)........................ 75.17% 7.11% 25.08% 9.40%
</TABLE>
(a) See Notes to Financial Statements for commencement of operations.
(b) Not Annualized.
(c) Total return would have been lower had certain expenses not been reduced
during the period shown (Note 5).
(d) Annualized.
(e) Includes expenses allocated from the Funds corresponding Portfolios.
(f) Amount represents average commission per share paid to brokers by the
Portfolio to brokers on the purchase and sale of equity securities on which
commissions are charged.
(g) Portfolio turnover represents the rate of portfolio activity.
[LOGO]
See Notes to Financial Statements.
105
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Norwest Advantage Funds ("Trust") is organized as a Delaware business trust and
is registered as an open-end management investment company. The Trust currently
has thirty-five separate investment portfolios. These financial statements
relate to four of those portfolios, Performa Strategic Value Bond Fund, Performa
Disciplined Growth Fund, Performa Small Cap Value Fund and Performa Global
Growth Fund (each a "Fund" and collectively the "Funds"), each of which is a
diversified portfolio. The Funds commencement of operations was October 15,
1997. The Trust has an unlimited number of authorized shares of beneficial
interest.
MASTER-FEEDER ARRANGEMENT--Each Fund currently seeks to achieve its investment
objective by investing all of its investable assets in separate diversified
portfolios of Core Trust (Delaware) ("Core Trust") and Schroder Capital Funds
("Schroder Core") which has the same investment objectives and substantially
similar investment policies as the Fund. Core Trust and Schroder Core are
registered as open-end management investment companies. Performa Strategic Value
Bond Fund invest all its assets in Strategic Value Bond Portfolio of Core Trust,
Performa Disciplined Growth Fund invests all its assets in Disciplined Growth
Portfolio of Core Trust, Performa Small Cap Value Fund invests all its asset in
Small Cap Value Portfolio of Core Trust and Performa Global Growth Fund invests
all its assets in Schroder Global Growth Portfolio of Schroder Core (each a
"Portfolio" and collectively the "Portfolios"). Each Fund may withdraw its
investment from its corresponding Portfolio at any time if the Board determines
that it is in the best interest of the Fund. The Funds account for their
investment in the corresponding Portfolios as partnership investments and
records daily their share of the Portfolio's income, expenses and realized and
unrealized gain and loss. This is commonly referred to as a master-feeder
arrangement. The financial statements of the Portfolios are in this report and
should be read in conjunction with the Fund's financial statements.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates.
The following represents significant accounting policies of the Funds:
SECURITY VALUATION--The Trust determines the net asset value per share of each
Fund as of close of the regular trading day on the New York Stock Exchange on
each Fund business day. The Trust records its investment in the Portfolios at
value. Valuation of securities held in the Portfolios are discussed in the Notes
to the Financial Statements of Core Trust and Schroder Core which are included
elsewhere in this report.
INVESTMENT INCOME AND EXPENSES--The Trust records daily its pro rata share of
the Portfolios' income, expenses and realized and unrealized gain and loss. In
addition, the Fund accrues its own expenses.
EXPENSE ALLOCATION--The Trust accounts separately for the assets and liabilities
and operations of each Fund. Expenses that are directly attributable to more
than one Fund are allocated among the respective Funds.
DISTRIBUTIONS TO SHAREHOLDERS--Dividends of net investment income are declared
and paid monthly in the case of Performa Strategic Value Bond Fund and declared
and paid annually in the case of all other Funds. Capital gain distributions, if
any, are distributed to shareholders at least annually. Distributions are based
on amounts calculated in accordance with applicable federal income tax
regulations, which may differ from generally accepted accounting principles.
These differences are due primarily to differing treatments of income and gain
on various investment securities held by the Fund, timing differences and
differing characterizations of distributions made by the Fund.
FEDERAL TAXES--The Fund intends to qualify and continue to qualify each year as
a regulated investment company and distribute all of its taxable income. In
addition, by distributing in each calendar year substantially all of its net
investment income, capital gain and certain other amounts, if any, the Fund will
not be subject to a federal excise tax. Therefore, no federal income or excise
tax provision is required.
REALIZED GAIN AND LOSS--Security transactions are recorded on trade date.
Realized gain and loss on investments sold are recorded on the basis of
identified cost for both financial statement and federal income tax purposes.
ORGANIZATIONAL COSTS--The costs incurred by certain Funds in connection with
their organization and registration of shares have been capitalized and are
being amortized using the straight line method over a five year period beginning
on the commencement of the Funds' operations.
[LOGO]
106
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISERS--Each Fund currently invests all of their assets in a
corresponding Portfolio, which retains Norwest Investment Management, Inc.
("Adviser"), formerly a part of and effective June 1, 1997, a wholly owned
subsidiary of Norwest Bank Minnesota, N.A. ("Norwest") to act as the investment
adviser of each Core Portfolio other than Schroder Global Growth Portfolio and
each Fund. Norwest is a subsidiary of Norwest Corporation. See Notes to the
Financial Statements of Core Trust and Schroder Core. Pursuant to a separate
agreement, Norwest receives a fee with respect to Performa Global Growth Fund at
a rate of 0.25% of the Fund's average daily net assets.
MANAGEMENT AND ADMINISTRATIVE--Forum Financial Services, Inc. ("FFSI") and Forum
Administrative Services, LLC ("FAS") serve as the manager and administrator to
the Funds. For their services FFSI and FAS each receive a fee at an annual rate
of 0.025% of the Fund's average daily net assets.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT--Norwest serves as the Trust's
transfer agent and dividend disbursing agent. For its services Norwest receives
a fee at an annual rate of 0.25% of Fund's average daily net assets.
OTHER SERVICE PROVIDER--Forum Accounting Services, LLC, provides portfolio
accounting services to each Fund pursuant to a separate agreement.
NOTE 4. SECURITIES TRANSACTIONS
For federal income tax purposes, the tax basis of investment securities owned,
the aggregate gross unrealized appreciation and the aggregate gross unrealized
depreciation as of November 30, 1997 were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
--------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Performa Strategic Value Bond Fund...... $1,796,253 $ 43,995 $ (26,843) $ 17,152
Performa Disciplined Growth Fund........ 2,581,594 325,484 (345,942) (20,458)
Performa Small Cap Value Fund........... 941,502 121,104 (154,449) (33,345)
Performa Global Growth Fund............. 346,756 30,391 (42,599) (12,208)
</TABLE>
NOTE 5. FEES WAIVED AND EXPENSE REIMBURSED
Norwest, FFSI and FAS have voluntarily waived a portion of their fees and have
reimbursed certain expenses of the Portfolios so that total expenses would not
exceed certain expense limitations established for each Portfolio. Norwest, FFSI
and FAS at their discretion, may revise or discontinue the voluntarily fee
waivers and expense reimbursements at any time. For the period ended November
30, 1997, fees waived and expenses reimbursed by the Trust's service providers
were as follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES TOTAL FEES
--------------------------------------- REIMBURSED WAIVED AND
TRANSFER ------------- EXPENSES
ADVISER AGENT FAS/FFSI FFSI REIMBURSED
----------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Performa Strategic Value Bond Fund...... $ - $ 489 $ 98 $ 18,665 $ 19,252
Performa Disciplined Growth Fund........ - 592 118 18,449 19,159
Performa Small Cap Value Fund........... - 260 52 19,063 19,375
Performa Global Growth Fund............. 85 81 16 18,993 19,175
</TABLE>
[LOGO]
107
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
PERFORMA STRATEGIC VALUE FUND
- ----------------------------------------------------
N/A Strategic Value Bond Portfolio of Core
Trust (Delaware) $ 1,813,405
---------------
TOTAL INVESTMENTS (100.0%)
(COST $1,796,253) $ 1,813,405
---------------
---------------
- ----------------------------------------------------
PERFORMA DISCIPLINED GROWTH FUND
- ----------------------------------------------------
N/A Disciplined Growth Portfolio of Core
Trust (Delaware) $ 2,561,136
---------------
TOTAL INVESTMENTS (100.0%)
(COST $2,581,594) $ 2,561,136
---------------
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
PERFORMA SMALL CAP VALUE FUND
- ----------------------------------------------------
N/A Small Cap Value Portfolio of Core Trust
(Delaware) $ 908,157
---------------
TOTAL INVESTMENTS (100.0%) (COST $941,502) $ 908,157
---------------
---------------
- ----------------------------------------------------
PERFORMA GLOBAL GROWTH FUND
- ----------------------------------------------------
N/A Schroder Global Growth Portfolio of
Schroder Capital Funds $ 334,548
---------------
TOTAL INVESTMENTS (100.0%) (COST $346,756) $ 334,548
---------------
---------------
</TABLE>
[LOGO]
See Notes to Schedules of Investments.
108
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
As of November 30, 1997, Performa Strategic Value Bond Fund investment in
Strategic Value Bond Portfolio of Core Trust represents 1.70% of the portfolio's
outstanding interest. Performa Disciplined Growth Fund investment in Disciplined
Growth Portfolio of Core Trust represents 2.49% of the portfolio's outstanding
interest. Performa Small Cap Value Fund investment in Small Cap Value Portfolio
of Core Trust represents 1.10% of the portfolio's outstanding interest. Performa
Global Growth Fund investment in Schroder Global Growth Portfolio of Schroder
Capital Funds represents 15.20% of the portfolio's outstanding interest.
[LOGO]
109
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
110
<PAGE>
CORE TRUST (DELAWARE)
SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
POSITIVE RETURN BOND PORTFOLIO
STABLE INCOME PORTFOLIO
MANAGED FIXED INCOME PORTFOLIO
TOTAL RETURN BOND PORTFOLIO
INDEX PORTFOLIO
INCOME EQUITY PORTFOLIO
LARGE COMPANY GROWTH PORTFOLIO
SMALL COMPANY STOCK PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
INTERNATIONAL PORTFOLIO
STRATEGIC VALUE BOND PORTFOLIO
DISCIPLINED GROWTH PORTFOLIO
SMALL CAP VALUE PORTFOLIO
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITIVE STABLE MANAGED FIXED TOTAL
RETURN BOND INCOME INCOME RETURN BOND INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost......... $192,175,470 $ 215,705,276 $304,044,324 $135,611,400 $ 714,730,631
Net unrealized appreciation
(depreciation).......... 13,513,765 751,855 5,174,978 1,730,469 371,622,372
------------- ------------- ------------- ------------- ---------------
TOTAL INVESTMENT AT VALUE.... 205,689,235 216,457,131 309,219,302 137,341,869 1,086,353,003
Collateral for securities
loaned (Notes 2 and 7)... 74,114,697 20,205,908 38,809,146 46,130,429 309,088,755
Cash......................... 1,129,421 -- -- -- 1,010
Net receivable for forward
foreign currency
contracts................ -- -- -- -- --
Receivable for investments
sold..................... -- -- -- -- --
Receivable for dividends and
interest................. 2,621,072 2,096,141 4,496,778 2,341,695 1,873,576
Interest rate swap, at value
(Note 9)................. -- -- 6,514,400 -- --
Organization costs, net of
amortization (Note 2).... 10,002 10,067 10,002 10,558 11,857
------------- ------------- ------------- ------------- ---------------
TOTAL ASSETS.................. 283,564,427 238,769,247 359,049,628 185,824,551 1,397,328,201
------------- ------------- ------------- ------------- ---------------
LIABILITIES:
Payable for investments
purchased................ -- -- -- -- --
Payable for securities loaned
(Notes 2 & 7)............ 74,114,697 20,205,908 38,809,146 46,130,429 309,088,755
Payable for daily variation
margin on financial
futures contracts (Note
2)....................... -- -- -- -- 6,450
Payable to investment adviser
(Note 3)................. 62,848 56,451 93,353 42,016 141,612
Payable to other related
parties (Note 3)......... 4,193 6,882 14,673 -- --
Payable for interest rate
swap, at value (Note
9)....................... -- -- 6,500,000 -- --
Accrued expenses and other
liabilities.............. 12,373 16,382 16,989 7,342 24,467
------------- ------------- ------------- ------------- ---------------
TOTAL LIABILITIES............. 74,194,111 20,285,623 45,434,161 46,179,787 309,261,284
------------- ------------- ------------- ------------- ---------------
NET ASSETS.................... $209,370,316 $ 218,483,624 $313,615,467 $139,644,764 $ 1,088,066,917
------------- ------------- ------------- ------------- ---------------
------------- ------------- ------------- ------------- ---------------
COMPONENTS OF NET ASSETS:
Investors' capital........... $195,856,551 $ 217,731,769 $308,426,089 $137,914,295 $ 715,935,424
Net unrealized appreciation
(depreciation) on
investments.............. 13,513,765 751,855 5,189,378 1,730,469 372,131,493
------------- ------------- ------------- ------------- ---------------
NET ASSETS.................... $209,370,316 $ 218,483,624 $313,615,467 $139,644,764 $ 1,088,066,917
------------- ------------- ------------- ------------- ---------------
------------- ------------- ------------- ------------- ---------------
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
112
<PAGE>
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE SMALL SMALL SMALL STRATEGIC
INCOME COMPANY COMPANY COMPANY COMPANY VALUE DISCIPLINED
EQUITY GROWTH STOCK GROWTH VALUE INTERNATIONAL BOND GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments (Note
2):
Investments at
cost.......... $1,046,807,802 $ 517,623,279 $339,816,930 $738,266,592 $138,129,017 $648,358,829 $107,775,973 $ 106,680,821
Net unrealized
appreciation
(depreciation)... 583,328,532 406,197,810 18,330,107 165,236,111 27,074,556 63,419,407 850,396 (3,161,739)
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
TOTAL INVESTMENT AT
VALUE.......... 1,630,136,334 923,821,089 358,147,037 903,502,703 165,203,573 711,778,236 108,626,369 103,519,082
Collateral for
securities
loaned (Notes 2
and 7)......... 213,139,062 240,559,156 80,789,468 -- 15,011,982 -- 16,445,503 25,032,075
Cash............... -- -- 1,326,865 -- -- 76,343,413 16,058 --
Net receivable for
forward foreign
currency
contracts...... -- -- -- -- -- 2,121,118 -- --
Receivable for
investments
sold........... 3,605,137 -- 5,746,551 7,887,373 2,820,045 438,785 -- --
Receivable for
dividends and
interest....... 5,446,786 211,267 86,247 319,859 189,820 1,644,962 1,361,665 152,194
Interest rate swap,
at value (Note
9)............. -- -- -- -- -- -- 3,507,758 --
Organization costs,
net of
amortization
(Note 2)....... 13,323 13,139 4,179 3,895 3,844 11,857 -- --
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
TOTAL ASSETS........ 1,852,340,642 1,164,604,651 446,100,347 911,713,830 183,229,264 792,338,371 129,957,353 128,703,351
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
LIABILITIES:
Payable for
investments
purchased...... -- -- 9,281,474 23,872,257 657,558 -- 3,399,414 591,431
Payable for
securities
loaned (Notes 2
& 7)........... 213,139,062 240,559,156 80,789,468 -- 15,011,982 -- 16,445,503 25,032,075
Payable for daily
variation
margin on
financial
futures
contracts (Note
2)............. -- -- -- -- -- -- -- --
Payable to
investment
adviser (Note
3)............. 677,105 498,911 274,675 681,654 126,297 274,964 45,161 77,299
Payable to other
related parties
(Note 3)....... 27,360 3,504 22,686 25,760 -- 97,209 -- --
Payable for
interest rate
swap, at value
(Note 9)....... -- -- -- -- -- -- 3,500,000 --
Accrued expenses
and other
liabilities.... 16,015 15,420 15,824 15,853 14,188 97,405 3,527 4,320
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
TOTAL LIABILITIES... 213,859,542 241,076,991 90,384,127 24,595,524 15,810,025 469,578 23,393,605 25,705,125
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
NET ASSETS.......... $1,638,481,100 $ 923,527,660 $355,716,220 $887,118,306 $167,419,239 $791,868,793 $106,563,748 $ 102,998,226
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
COMPONENTS OF NET
ASSETS:
Investors'
capital........ $1,055,152,568 $ 517,329,850 $337,386,113 $721,882,195 $140,344,683 $726,348,077 $105,705,594 $ 106,159,965
Net unrealized
appreciation
(depreciation)
on
investments.... 583,328,532 406,197,810 18,330,107 165,236,111 27,074,556 65,520,716 858,154 (3,161,739)
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
NET ASSETS.......... $1,638,481,100 $ 923,527,660 $355,716,220 $887,118,306 $167,419,239 $791,868,793 $106,563,748 $ 102,998,226
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
-------------- -------------- ------------ ------------ ------------ ------------- ------------ -------------
<CAPTION>
SMALL CAP
VALUE
PORTFOLIO
------------
<S> <C>
ASSETS:
Investments (Note
2):
Investments at
cost.......... $ 86,359,478
Net unrealized
appreciation
(depreciation)... (3,093,768)
------------
TOTAL INVESTMENT AT
VALUE.......... 83,265,710
Collateral for
securities
loaned (Notes 2
and 7)......... 5,976,398
Cash............... --
Net receivable for
forward foreign
currency
contracts...... --
Receivable for
investments
sold........... --
Receivable for
dividends and
interest....... 68,157
Interest rate swap,
at value (Note
9)............. --
Organization costs,
net of
amortization
(Note 2)....... --
------------
TOTAL ASSETS........ 89,310,265
------------
LIABILITIES:
Payable for
investments
purchased...... 376,709
Payable for
securities
loaned (Notes 2
& 7)........... 5,976,398
Payable for daily
variation
margin on
financial
futures
contracts (Note
2)............. --
Payable to
investment
adviser (Note
3)............. 67,211
Payable to other
related parties
(Note 3)....... --
Payable for
interest rate
swap, at value
(Note 9)....... --
Accrued expenses
and other
liabilities.... 3,984
------------
TOTAL LIABILITIES... 6,424,302
------------
NET ASSETS.......... $ 82,885,963
------------
------------
COMPONENTS OF NET
ASSETS:
Investors'
capital........ $ 85,979,731
Net unrealized
appreciation
(depreciation)
on
investments.... (3,093,768)
------------
NET ASSETS.......... $ 82,885,963
------------
------------
</TABLE>
CORE TRUST (DELAWARE)
113
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MANAGED
POSITIVE STABLE FIXED TOTAL
RETURN BOND INCOME INCOME RETURN BOND INDEX
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income (a).......... $ - $ - $ - $ - $ 8,209,837
Interest income.............. 6,286,351 6,859,325 8,340,359 9,296,983 1,381,813
Securities Lending (Notes 2
and 7)................... 65,646 17,508 6,255 56,313 149,147
------------ ----------- ------------ ------------ -------------
TOTAL INVESTMENT INCOME....... 6,351,997 6,876,833 8,346,614 9,353,296 9,740,797
------------ ----------- ------------ ------------ -------------
EXPENSES:
Investment advisory (Note
3)....................... 350,118 317,073 409,822 468,661 773,854
Administration (Note 3)...... 66,314 70,173 74,818 94,466 340,175
Custody...................... 17,458 18,090 19,167 20,395 59,111
Accounting (Note 3).......... 30,000 44,000 41,500 31,500 71,000
Legal........................ 963 1,021 978 1,590 11,932
Audit........................ 9,468 9,468 9,468 3,505 13,360
Trustees..................... 861 816 799 876 1,627
Amortization of organization
costs (Note 2)........... 1,111 1,118 1,111 1,172 3,036
Miscellaneous................ 744 3,024 3,387 2,367 18,671
------------ ----------- ------------ ------------ -------------
TOTAL EXPENSES................ 477,037 464,783 561,050 624,532 1,292,766
FEES WAIVED (Note 4)........ (62,121) (63,291) (60,145) (94,466) (340,175)
------------ ----------- ------------ ------------ -------------
NET EXPENSES.................. 414,916 401,492 500,905 530,066 952,591
------------ ----------- ------------ ------------ -------------
NET INVESTMENT INCOME
(LOSS).................... 5,937,081 6,475,341 7,845,709 8,823,230 8,788,206
------------ ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) On:
Securities................. (116,355) 109,565 423,828 1,839,290 27,116,605
Foreign currency........... - - - - -
Financial futures
transactions........... - - - - 7,135,667
------------ ----------- ------------ ------------ -------------
Net Realized Gain (Loss) on
investments.............. (116,355) 109,565 423,828 1,839,290 34,252,272
------------ ----------- ------------ ------------ -------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
Securities................. 15,939,995 746,254 4,959,828 4,872,749 81,441,620
Foreign currency........... - - - - -
Financial futures
transactions........... - - - - (495,850)
------------ ----------- ------------ ------------ -------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
investments.............. 15,939,995 746,254 4,959,828 4,872,749 80,945,770
------------ ----------- ------------ ------------ -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:.............. 15,823,640 855,819 5,383,656 6,712,039 115,198,042
------------ ----------- ------------ ------------ -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $21,760,721 $7,331,160 $13,229,365 $15,535,269 $ 123,986,248
------------ ----------- ------------ ------------ -------------
------------ ----------- ------------ ------------ -------------
(a) NET OF FOREIGN WITHHOLDING
TAXES OF.................. $ - $ - $ - $ - $ -
------------ ----------- ------------ ------------ -------------
------------ ----------- ------------ ------------ -------------
</TABLE>
See Notes to Financial Statements.
CORE TRUST (DELAWARE)
114
<PAGE>
FOR THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME LARGE COMPANY SMALL COMPANY SMALL COMPANY SMALL COMPANY
EQUITY GROWTH STOCK GROWTH VALUE INTERNATIONAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- -------------- ------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income (a).......... $ 14,661,934 $ 2,579,241 $ 477,845 $ 1,205,503 $ 1,510,384 $ 4,914,754
Interest income.............. 482,301 274,993 690,261 937,329 100,110 1,674,496
Securities Lending (Notes 2
and 7)................... 99,557 254,332 119,798 -- 69,339 158,747
-------------- -------------- ------------- -------------- ------------- --------------
TOTAL INVESTMENT INCOME....... 15,243,792 3,108,566 1,287,904 2,142,832 1,679,833 6,747,997
-------------- -------------- ------------- -------------- ------------- --------------
EXPENSES:
Investment advisory (Note
3)....................... 3,211,803 3,145,263 1,715,266 3,604,338 806,814 1,855,084
Administration (Note 3)...... 406,546 322,805 125,160 256,321 59,503 550,034
Custody...................... 71,757 55,909 26,579 47,569 15,954 246,033
Accounting (Note 3).......... 37,000 38,500 41,000 40,000 38,000 60,500
Legal........................ 5,974 4,838 2,779 4,719 1,761 5,022
Audit........................ 8,970 8,970 11,044 11,044 10,385 15,571
Trustees..................... 1,648 1,589 978 1,296 782 1,434
Amortization of organization
costs (Note 2)........... 1,481 1,459 1,044 972 960 3,036
Miscellaneous................ 4,356 3,193 3,371 5,002 3,753 21,564
-------------- -------------- ------------- -------------- ------------- --------------
TOTAL EXPENSES................ 3,749,535 3,582,526 1,927,221 3,971,261 937,912 2,758,278
FEES WAIVED (Note 4)........ (379,186) (319,302) (102,474) (230,560) (59,503) (16,664)
-------------- -------------- ------------- -------------- ------------- --------------
NET EXPENSES.................. 3,370,349 3,263,224 1,824,747 3,740,701 878,409 2,741,614
-------------- -------------- ------------- -------------- ------------- --------------
NET INVESTMENT INCOME
(LOSS).................... 11,873,443 (154,658) (536,843) (1,597,869) 801,424 4,006,383
-------------- -------------- ------------- -------------- ------------- --------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) On:
Securities................. 14,799,887 84,868,409 64,466,819 106,828,610 19,958,394 9,271,264
Foreign currency........... - - - - - (322,046)
Financial futures
transactions........... - - - - - -
-------------- -------------- ------------- -------------- ------------- --------------
Net Realized Gain (Loss) on
investments.............. 14,799,887 84,868,409 64,466,819 106,828,610 19,958,394 8,949,218
-------------- -------------- ------------- -------------- ------------- --------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
Securities................. 116,636,212 55,190,127 (38,698,184) 14,687,071 13,857,937 (59,971,518)
Foreign currency........... - - - - - (19,809)
Financial futures
transactions........... - - - - - -
-------------- -------------- ------------- -------------- ------------- --------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
investments.............. 116,636,212 55,190,127 (38,698,184) 14,687,071 13,857,937 (59,991,327)
-------------- -------------- ------------- -------------- ------------- --------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:.............. 131,436,099 140,058,536 25,768,635 121,515,681 33,816,331 (51,042,109)
-------------- -------------- ------------- -------------- ------------- --------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ 143,309,542 $ 139,903,878 $ 25,231,792 $ 119,917,812 $ 34,617,755 $ (47,035,726)
-------------- -------------- ------------- -------------- ------------- --------------
-------------- -------------- ------------- -------------- ------------- --------------
(a) NET OF FOREIGN WITHHOLDING
TAXES OF.................. $ - $ - $ - $ - $ - $ 308,201
-------------- -------------- ------------- -------------- ------------- --------------
-------------- -------------- ------------- -------------- ------------- --------------
<CAPTION>
STRATEGIC
VALUE DISCIPLINED SMALL CAP
BOND GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividend income (a).......... $ - $ 241,015 $ 82,698
Interest income.............. 1,136,498 117,982 111,687
Securities Lending (Notes 2
and 7)................... -- -- --
------------ ------------- -------------
TOTAL INVESTMENT INCOME....... 1,136,498 358,997 194,385
------------ ------------- -------------
EXPENSES:
Investment advisory (Note
3)....................... 86,558 153,810 136,226
Administration (Note 3)...... 8,656 8,545 7,170
Custody...................... 3,432 3,397 2,868
Accounting (Note 3).......... 8,000 8,000 7,000
Legal........................ - - -
Audit........................ 170 823 867
Trustees..................... -- -- --
Amortization of organization
costs (Note 2)........... 167 167 167
Miscellaneous................ 190 330 450
------------ ------------- -------------
TOTAL EXPENSES................ 107,173 175,072 154,748
FEES WAIVED (Note 4)........ (8,656) (8,545) (7,170)
------------ ------------- -------------
NET EXPENSES.................. 98,517 166,527 147,578
------------ ------------- -------------
NET INVESTMENT INCOME
(LOSS).................... 1,037,981 192,470 46,807
------------ ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) On:
Securities................. 194,575 (876,146) (1,861,693)
Foreign currency........... - - -
Financial futures
transactions........... - - -
------------ ------------- -------------
Net Realized Gain (Loss) on
investments.............. 194,575 (876,146) (1,861,693)
------------ ------------- -------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
Securities................. 858,154 (3,161,739) (3,093,768)
Foreign currency........... - - -
Financial futures
transactions........... - - -
------------ ------------- -------------
Net Change in Unrealized
Appreciation
(Depreciation) on:
investments.............. 858,154 (3,161,739) (3,093,768)
------------ ------------- -------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:.............. 1,052,729 (4,037,885) (4,955,461)
------------ ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ $ 2,090,710 $ (3,845,415) $ (4,908,654)
------------ ------------- -------------
------------ ------------- -------------
(a) NET OF FOREIGN WITHHOLDING
TAXES OF.................. $ - $ - $ -
------------ ------------- -------------
------------ ------------- -------------
</TABLE>
CORE TRUST (DELAWARE)
115
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POSITIVE STABLE MANAGED FIXED TOTAL
RETURN BOND INCOME INCOME RETURN BOND INDEX
PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO
------------- ------------- ------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $ - $ - $ - $ - $ 360,469,155
------------- ------------- ------------- -------------- ---------------
OPERATIONS
Net investment income
(loss)................... - - - - 7,998,685
Net realized gain (loss) on
investments sold......... - - - - 11,395,983
Net change in unrealized
appreciation
(depreciation) on
investments.............. - - - - 85,427,079
------------- ------------- ------------- -------------- ---------------
Net increase (decrease) in
net assets resulting from
operations............... - - - - 104,821,747
------------- ------------- ------------- -------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ - - - - 41,212,190
Withdrawals.................. - - - - (50,510,474)
------------- ------------- ------------- -------------- ---------------
Net transactions from
investors' beneficial
interest................. - - - - (9,298,284)
------------- ------------- ------------- -------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... - - - - 95,523,463
------------- ------------- ------------- -------------- ---------------
NET ASSETS - MAY 31, 1997..... - - - - 455,992,618
------------- ------------- ------------- -------------- ---------------
OPERATIONS
Net investment income
(loss)................... 5,937,081 6,475,341 7,845,709 8,823,230 8,788,206
Net realized gain (loss) on
investments sold......... (116,355) 109,565 423,828 1,839,290 34,252,272
Net change in unrealized
appreciation
(depreciation) on
investments.............. 13,513,765 751,855 5,189,378 1,730,469 196,466,036
------------- ------------- ------------- -------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 19,334,491 7,336,761 13,458,915 12,392,989 239,506,514
------------- ------------- ------------- -------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 216,985,902 247,311,226 316,862,988 348,849,787 500,519,070
Withdrawals.................. (26,950,077) (36,164,363) (16,706,436) (221,598,012) (107,951,285)
------------- ------------- ------------- -------------- ---------------
Net transactions from
investors' beneficial
interest................. 190,035,825 211,146,863 300,156,552 127,251,775 392,567,785
------------- ------------- ------------- -------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 209,370,316 218,483,624 313,615,467 139,644,764 632,074,299
------------- ------------- ------------- -------------- ---------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $209,370,316 $218,483,624 $313,615,467 $ 139,644,764 $ 1,088,066,917
------------- ------------- ------------- -------------- ---------------
------------- ------------- ------------- -------------- ---------------
(a) See Notes to Financial
Statements for
commencement of operations
</TABLE>
See Notes to Financial Statements
CORE TRUST (DELAWARE)
116
<PAGE>
FOR THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INCOME LARGE COMPANY SMALL COMPANY SMALL COMPANY SMALL COMPANY
EQUITY GROWTH STOCK GROWTH VALUE
PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a)
--------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $ - $ - $ - $ - $ -
--------------- -------------- ------------- ------------- -------------
OPERATIONS
Net investment income
(loss)................... - - - - -
Net realized gain (loss) on
investments sold......... - - - - -
Net change in unrealized
appreciation
(depreciation) on
investments.............. - - - - -
--------------- -------------- ------------- ------------- -------------
Net increase (decrease) in
net assets resulting from
operations............... - - - - -
--------------- -------------- ------------- ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ - - - - -
Withdrawals.................. - - - - -
--------------- -------------- ------------- ------------- -------------
Net transactions from
investors' beneficial
interest................. - - - - -
--------------- -------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... - - - - -
--------------- -------------- ------------- ------------- -------------
NET ASSETS - MAY 31, 1997..... - - - - -
--------------- -------------- ------------- ------------- -------------
OPERATIONS
Net investment income
(loss)................... 11,873,443 (154,658) (536,843) (1,597,869) 801,424
Net realized gain (loss) on
investments sold......... 14,799,887 84,868,409 64,466,819 106,828,610 19,958,394
Net change in unrealized
appreciation
(depreciation) on
investments.............. 583,328,532 406,197,810 18,330,107 165,236,111 27,074,556
--------------- -------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ 610,001,862 490,911,561 82,260,083 270,466,852 47,834,374
--------------- -------------- ------------- ------------- -------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 1,067,968,937 606,234,686 366,649,444 677,060,019 158,365,552
Withdrawals.................. (39,489,699) (173,618,587) (93,193,307) (60,408,565) (38,780,687)
--------------- -------------- ------------- ------------- -------------
Net transactions from
investors' beneficial
interest................. 1,028,479,238 432,616,099 273,456,137 616,651,454 119,584,865
--------------- -------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 1,638,481,100 923,527,660 355,716,220 887,118,306 167,419,239
--------------- -------------- ------------- ------------- -------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $1,638,481,100 $ 923,527,660 $355,716,220 $887,118,306 $167,419,239
--------------- -------------- ------------- ------------- -------------
--------------- -------------- ------------- ------------- -------------
(a) See Notes to Financial
Statements for
commencement of operations
<CAPTION>
STRATEGIC
VALUE DISCIPLINED SMALL CAP
INTERNATIONAL BOND GROWTH VALUE
PORTFOLIO PORTFOLIO(a) PORTFOLIO(a) PORTFOLIO(a)
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
NET ASSETS - MAY 31, 1996..... $439,815,157 $ - $ - $ -
------------- ------------- ------------- ------------
OPERATIONS
Net investment income
(loss)................... 7,278,121 - - -
Net realized gain (loss) on
investments sold......... 11,031,767 - - -
Net change in unrealized
appreciation
(depreciation) on
investments.............. 41,949,537 - - -
------------- ------------- ------------- ------------
Net increase (decrease) in
net assets resulting from
operations............... 60,259,425 - - -
------------- ------------- ------------- ------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 108,485,326 - - -
Withdrawals.................. (69,263,029) - - -
------------- ------------- ------------- ------------
Net transactions from
investors' beneficial
interest................. 39,222,297 - - -
------------- ------------- ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 99,481,722 - - -
------------- ------------- ------------- ------------
NET ASSETS - MAY 31, 1997..... 539,296,879 - - -
------------- ------------- ------------- ------------
OPERATIONS
Net investment income
(loss)................... 4,006,383 1,037,981 192,470 46,807
Net realized gain (loss) on
investments sold......... 8,949,218 194,575 (876,146) (1,861,693)
Net change in unrealized
appreciation
(depreciation) on
investments.............. (26,401,242) 858,154 (3,161,739) (3,093,768)
------------- ------------- ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS................ (13,445,641) 2,090,710 (3,845,415) (4,908,654)
------------- ------------- ------------- ------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
Contributions................ 320,715,461 106,298,667 108,999,947 90,664,064
Withdrawals.................. (54,697,906) (1,825,629) (2,156,306) (2,869,447)
------------- ------------- ------------- ------------
Net transactions from
investors' beneficial
interest................. 266,017,555 104,473,038 106,843,641 87,794,617
------------- ------------- ------------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS.................... 252,571,914 106,563,748 102,998,226 82,885,963
------------- ------------- ------------- ------------
NET ASSETS - NOVEMBER 30, 1997
(UNAUDITED)............... $791,868,793 $106,563,748 $102,998,226 $82,885,963
------------- ------------- ------------- ------------
------------- ------------- ------------- ------------
(a) See Notes to Financial
Statements for
commencement of operations
</TABLE>
CORE TRUST (DELAWARE)
117
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) SELECTED DATA FOR A SHARE OUTSTANDING DURING
EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO
AVERAGE
NET ASSETS
-------------------------------------------
NET
INVESTMENT PORTFOLIO AVERAGE
INCOME NET TURNOVER COMMISSION
(LOSS) EXPENSES GROSS EXPENSES RATE RATE(a)
---------- ----------- -------------- -------- ----------
<S> <C> <C> <C> <C> <C>
POSITIVE RETURN BOND PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 5.94%(c) 0.41%(c) 0.48%(c) 25.89% N/A
STABLE INCOME PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 6.13%(c) 0.38%(c) 0.44%(c) 11.36% N/A
MANAGED FIXED INCOME PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 6.70%(c) 0.43%(c) 0.48%(c) 51.78% N/A
TOTAL RETURN BOND PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 6.59%(c) 0.40%(c) 0.47%(c) 18.08% N/A
INDEX PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997 to November 30, 1997..... 1.70%(c) 0.18%(c) 0.25%(c) 6.85% $0.0330
June 1, 1996 to May 31, 1997.......... 2.03% 0.11% 0.31% 7.29% $0.0444
November 1, 1995 to May 31, 1996...... 2.35%(c) 0.17%(c) 0.32%(c) 7.21% $0.0501
November 11, 1994(b) to October 31,
1995................................ 2.42%(c) 0.17%(c) 0.33%(c) 7.73% N/A
INCOME EQUITY PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 1.85%(c) 0.52%(c) 0.58%(c) 2.43% $0.0600
LARGE COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ (0.03%)(c) 0.67%(c) 0.74%(c) 8.07% $0.0558
SMALL COMPANY STOCK PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ (0.28%)(c) 0.96%(c) 1.01%(c) 115.24% $0.0635
SMALL COMPANY GROWTH PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ (0.40%)(c) 0.93%(c) 0.99%(c) 53.77% $0.0576
SMALL COMPANY VALUE PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 0.89%(c) 0.98%(c) 1.05%(c) 46.51% $0.0503
INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997 to November 30, 1997..... 0.97%(c) 0.66%(c) 0.67%(c) 15.51% $0.0177
June 1, 1996 to May 31, 1997.......... 1.53% 0.19% 0.67% 53.32% $0.0244
November 1, 1995 to May 31, 1996...... 1.75%(c) 0.23%(c) 0.68%(c) 17.58% $0.0247
November 11, 1994(b) to October 31,
1995................................ 1.94%(c) 0.25%(c) 0.70%(c) 28.19% N/A
STRATEGIC VALUE BOND PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 6.00%(c) 0.56%(c) 0.62%(c) 75.17% N/A
DISCIPLINED GROWTH PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 1.13%(c) 0.97%(c) 1.02%(c) 7.11% $0.0587
SMALL CAP VALUE PORTFOLIO
- --------------------------------------------------------------------------------------------------------------
June 1, 1997(b) to November 30,
1997................................ 0.33%(c) 1.03%(c) 1.08%(c) 25.08% $0.0583
</TABLE>
- ------------------------
(a) For fiscal years ending after September 1, 1995, the Portfolios are required
to disclose average commissions per share paid to brokers on the purchase
and sale of equity securities on which commissions are charged.
(b) Commencement of operations.
(c) Annualized.
CORE TRUST (DELAWARE)
118
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Core Trust (Delaware) ("Core Trust"), organized as a Delaware business trust,
was formed on September 1, 1994. Core Trust, which is registered as an open-end
management investment company under the Investment Company Act of 1940 (the
"Act"), currently has twenty separate investment portfolios. These financial
statements relate to the following fourteen portfolios (each a "Portfolio" and
collectively the "Portfolios"), diversified portfolios which commenced
operations on the following dates:
<TABLE>
<S> <C>
Positive Return Bond Portfolio................................................................ June 1, 1997
Stable Income Portfolio....................................................................... June 1, 1997
Managed Fixed Income Portfolio................................................................ June 1, 1997
Total Return Bond Portfolio................................................................... June 1, 1997
Index Portfolio............................................................................... November 11, 1994
Income Equity Portfolio....................................................................... June 1, 1997
Large Company Growth Portfolio................................................................ June 1, 1997
Small Company Stock Portfolio................................................................. June 1, 1997
Small Company Growth Portfolio................................................................ June 1, 1997
Small Company Value Portfolio................................................................. June 1, 1997
International Portfolio....................................................................... November 11, 1994
Strategic Value Bond Portfolio................................................................ June 1, 1997
Disciplined Growth Portfolio.................................................................. June 1, 1997
Small Cap Value Portfolio..................................................................... June 1, 1997
</TABLE>
On June 1, 1997, the following portfolio reorganizations occurred. The Small
Company Portfolio was separated by investment style into three new portfolios
named Small Company Stock Portfolio, Small Company Growth Portfolio and Small
Company Value Portfolio. International Portfolio merged into International
Portfolio II. International Portfolio II was renamed International Portfolio.
Interests in the Portfolios are sold without any sales charge in private
placement transactions to qualified investors, including open-end management
investment companies.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates.
The following represent significant accounting policies of the Portfolios:
SECURITIES VALUATION--Short-term securities that mature in 60 days or less are
valued at amortized cost. Equity securities for which market quotations are
readily available are valued using the last reported sales price provided by
independent pricing services. If no sales are reported, the mean of the last bid
and ask price is used. If no mean price is available, the last bid price is
used. Fixed income and other securities, for which market quotations are readily
available, are valued using the mean of the bid and ask prices provided by
independent pricing services. If no mean price is available the last bid price
is used. In the absence of readily available market quotations, securities are
valued at fair value determined in accordance with procedures adopted by the
Board of Trustees.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date except that certain dividends from foreign securities where the ex-dividend
date may have passed are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of withholding tax. Interest
income, including amortization of discount or premium, is recorded as earned.
Identified cost of investments sold is used to determine realized gain and loss
for both financial statement and federal income tax purposes. Foreign dividend
and interest income amounts and realized capital gain and loss are converted to
U.S. dollar equivalents using foreign exchange rates in effect at the date of
the transactions.
Foreign currency amounts are translated into U.S. dollars at the mean of the bid
and asked prices of such currencies against U.S. dollars as follows: (i) assets
and liabilities at the rate of exchange at the end of the respective period; and
(ii) purchases and sales of securities and income and expenses at the rate of
exchange prevailing on the dates of such transactions. The portion of the
results of operations arising from changes in the exchange rates and the portion
due to fluctuations arising from changes in the market prices of securities are
not isolated. Such fluctuations are included with the net realized and
unrealized gain or loss on investments.
CORE TRUST (DELAWARE)
119
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
International Portfolio may enter into forward contracts to purchase or sell
foreign currencies to protect against the effect on the U.S. dollar value of the
underlying portfolio of possible adverse movements in foreign exchange rates.
Risks associated with such contracts include the movement in value of the
foreign currency relative to the U.S. dollar and the ability of the counterparty
to perform. Fluctuations in the value of such contracts are recorded as
unrealized gain or loss; realized gain or loss include net gain or loss on
contracts that have terminated by settlement or by the Portfolio entering into
offsetting commitments.
EXPENSE ALLOCATION--Core Trust accounts separately for the assets and
liabilities and operations of each Portfolio. Expenses that are directly
attributable to more than one Portfolio are allocated among the respective
Portfolios.
FUTURES CONTRACTS--Each Portfolio may invest in futures contracts. A futures
contract is an agreement between two parties to buy and sell a security at a set
price on a future date. Upon entering into such a contract the Portfolio is
required to pledge to the broker an amount of cash or securities equal to the
minimum "initial margin" requirements of the exchange on which the contract is
traded. Pursuant to the contract, the Portfolio agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Portfolio as unrealized gain or loss. When the contract is
closed, the Portfolio records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed. The potential risk to the Portfolio is that the change in
value of the underlying securities may not correlate to the change in value of
the contracts.
REPURCHASE AGREEMENTS--Each Portfolio may invest in repurchase agreements. The
Portfolios, through their custodian, receive delivery of the underlying
collateral, whose market value must always equal or exceed the repurchase price.
The investment adviser is responsible for determining the value of the
underlying collateral at all times. In the event of default, the Portfolios may
have difficulties with the disposition of any securities held as collateral.
SECURITY LOANS--The Portfolios receive compensation for lending securities in
the form of fees or by retaining a portion of interest on the investment
securities or any cash received as collateral. A Portfolio also continues to
receive interest or dividends on the securities loaned. Security loans are
secured at all times by collateral equal to at least 102% of the market value of
the securities loaned plus accrued interest. Gain or loss in the market price of
the securities loaned that may occur during the term of the loan are reflected
in the value of the Portfolio.
ORGANIZATIONAL COSTS--The costs incurred by each Portfolio in connection with
its organization, in the amount of $30,360 have been capitalized and are being
amortized using the straight line method over a five year period beginning on
the commencement of the Portfolio's operations.
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER--Norwest Investment Management, Inc. is a part of Norwest
Bank Minnesota, N.A. ("Norwest"). Norwest Bank Minnesota, N.A., a subsidiary of
Norwest Corporation serves, as investment adviser of each Portfolio other than
International Portfolio. Schroder Capital Management International Inc.
("Schroder") serves as investment adviser to International Portfolio. Norwest
has retained the services of Subadvisers on certain Portfolios. Norwest (not the
Portfolios) pays each Subadviser. UCM, Galliard, Crestone, and Peregrine are
affiliates of Norwest. The investment advisory fee and the associated subadviser
is as follows:
<TABLE>
<CAPTION>
INVESTMENT
ADVISORY FEE SUBADVISER
--------------- ----------
<S> <C> <C>
Positive Return Bond Portfolio....................................................... 0.35% Pergrine
Stable Income Portfolio.............................................................. 0.30 Galliard
Managed Fixed Income Portfolio....................................................... 0.35 Galliard
Total Return Bond Portfolio.......................................................... 0.35 UCM
Index Portfolio...................................................................... 0.15 -
Income Equity Portfolio.............................................................. 0.50 -
Large Company Growth Portfolio....................................................... 0.65 Pergrine
Small Company Stock Portfolio........................................................ 0.90 Crestone
Small Company Growth Portfolio....................................................... 0.90 Pergrine
Small Company Value Portfolio........................................................ 0.90 Pergrine
International Portfolio.............................................................. 0.45 -
Strategic Value Bond Portfolio....................................................... 0.50 Galliard
Disciplined Growth Portfolio......................................................... 0.90 Smith
Small Cap Value Portfolio............................................................ 0.95 Smith
</TABLE>
CORE TRUST (DELAWARE)
120
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. ADVISORY, SERVICING FEES AND OTHER TRANSACTIONS WITH
AFFILIATES (CONTINUED)
ADMINISTRATIVE AND OTHER SERVICES--Forum Administrative Services, LLC ("FAS") is
the administrator of Core Trust and receives a fee with respect to each
Portfolio (other than the International Portfolio) at an annual rate of 0.05% of
the Portfolio's average daily net assets. With respect to International
Portfolio, FAS receives a fee at an annual rate of 0.15% of the Portfolio's
average daily net assets. In addition, for the period ended November 30, 1997,
certain legal expenses were charged to the Portfolios by FAS aggregating $6,262.
Norwest serves as the custodian for each Portfolio and may appoint certain
subcustodians to custody those portfolios' foreign securities and other assets
held in foreign countries. Norwest receives a fee with respect to each Portfolio
(other than International Portfolio) at an annual rate of 0.02% of the first
$100 million of the Portfolio's average daily net assets, 0.015% of the next
$100 million of the Portfolio's average daily net assets and 0.01% of the
remaining Portfolio's average daily net assets. With respect to International
Portfolio, Norwest receives a fee at an annual rate of 0.075% of the Portfolio's
average daily net assets.
Forum Accounting Services, LLC provides portfolio accounting and interestholder
recordkeeping services to each Portfolio pursuant to separate agreements.
NOTE 4. WAIVERS OF FEES
For the period ended November 30, 1997, fees waived by the Portfolio's service
providers were as follows:
<TABLE>
<CAPTION>
FEES WAIVED FEES WAIVED TOTAL
BY NORWEST BY FAS FEES WAIVED
------------- ----------- -----------
<S> <C> <C> <C>
Positive Return Bond Portfolio.......................................... $ - $ 62,121 $ 62,121
Stable Income Portfolio................................................. - 63,291 63,291
Managed Fixed Income Portfolio.......................................... - 60,145 60,145
Total Return Bond Portfolio............................................. - 94,466 94,466
Index Portfolio......................................................... - 340,175 340,175
Income Equity Portfolio................................................. - 379,186 379,186
Large Company Growth Portfolio.......................................... - 319,302 319,302
Small Company Stock Portfolio........................................... - 102,474 102,474
Small Company Growth Portfolio.......................................... - 230,560 230,560
Small Company Value Portfolio........................................... - 59,503 59,503
International Portfolio................................................. 16,664 - 16,664
Strategic Value Bond Portfolio.......................................... - 8,656 8,656
Disciplined Growth Portfolio............................................ - 8,545 8,545
Small Cap Value Portfolio............................................... - 7,170 7,170
</TABLE>
NOTE 5. FEDERAL INCOME TAX
The Portfolios are not required to pay federal income taxes on their net
investment income and net capital gain as they are treated as partnerships for
federal income tax purposes. All interest, dividends, gain and loss of the
Portfolios are deemed to have been "passed through" to the partners in
proportion to their holdings of the Portfolios regardless of whether such
interest, dividends or gain have been distributed by the Portfolios.
CORE TRUST (DELAWARE)
121
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 6. SECURITIES TRANSACTIONS
The cost of purchases and the proceeds from sales (including maturities) of
securities (excluding short-term investments) for the period ended November 30,
1997 were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------- -------------
<S> <C> <C>
Positive Return Bond Portfolio.................... $ 103,727,562 $ 51,123,102
Stable Income Portfolio........................... 67,593,307 23,090,499
Managed Fixed Income Portfolio.................... 244,718,746 120,444,822
Total Return Bond Portfolio....................... 40,883,314 219,455,250
Index Portfolio................................... 71,716,044 62,079,091
Income Equity Portfolio........................... 129,097,780 31,886,195
Large Company Growth Portfolio.................... 75,719,855 205,557,884
Small Company Stock Portfolio..................... 412,195,420 455,565,020
Small Company Growth Portfolio.................... 458,290,719 423,665,640
Small Company Value Portfolio..................... 80,792,696 109,638,198
International Portfolio........................... 105,274,776 162,943,644
Strategic Value Bond Portfolio.................... 187,344,856 82,275,177
Disciplined Growth Portfolio...................... 111,134,490 6,996,057
Small Cap Value Portfolio......................... 106,808,669 20,256,787
</TABLE>
For federal income tax purposes, the tax basis of investment securities owned as
of November 30, 1997 and the aggregate gross unrealized appreciation and the
aggregate unrealized depreciation based on identified tax cost as of November
30, 1997 were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
TAX UNREALIZED UNREALIZED APPRECIATION
COST BASIS APPRECIATION DEPRECIATION (DEPRECIATION)
--------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Positive Return Bond Portfolio........................ $ 192,175,470 $ 13,513,765 $ - $ 13,513,765
Stable Income Portfolio............................... 215,705,276 1,331,749 579,894 751,855
Managed Fixed Income Portfolio........................ 304,044,324 5,592,413 417,435 5,174,978
Total Return Bond Portfolio........................... 135,611,400 2,622,679 892,210 1,730,469
Index Portfolio....................................... 714,730,631 385,221,859 13,599,487 371,622,372
Income Equity Portfolio............................... 1,046,807,802 593,151,526 9,822,994 583,328,532
Large Company Growth Portfolio........................ 517,623,279 412,966,603 6,768,793 406,197,810
Small Company Stock Portfolio......................... 339,816,930 40,537,908 22,207,801 18,330,107
Small Company Growth Portfolio........................ 738,266,592 187,100,299 21,864,188 165,236,111
Small Company Value Portfolio......................... 138,129,017 31,863,496 4,788,940 27,074,556
International Portfolio............................... 648,358,829 136,176,882 72,757,475 63,419,407
Strategic Value Bond Portfolio........................ 107,775,973 1,008,437 158,041 850,396
Disciplined Growth Portfolio.......................... 106,680,821 2,836,821 5,998,560 (3,161,739)
Small Cap Value Portfolio............................. 86,359,478 1,964,824 5,058,592 (3,093,768)
</TABLE>
CORE TRUST (DELAWARE)
122
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 7. PORTFOLIO SECURITIES LOANED
As of November 30, 1997, certain Portfolios had loaned securities which were
collateralized by various securities, including time deposits, commercial paper,
corporate bonds and repurchase agreements. Norwest receives transaction fees for
providing services in connection with the securities lending program. The value
of the securities on loan and the value of the related collateral were as
follows:
<TABLE>
<CAPTION>
SECURITIES COLLATERAL
------------- -------------
<S> <C> <C>
Positive Return Bond Portfolio....................................................... $ 67,992,046 $ 74,114,697
Stable Income Portfolio.............................................................. 18,360,950 20,205,908
Managed Fixed Income Portfolio....................................................... 35,547,475 38,809,146
Total Return Bond Portfolio.......................................................... 42,041,810 46,130,429
Index Portfolio...................................................................... 284,726,173 309,088,755
Income Equity Portfolio.............................................................. 197,130,319 213,139,062
Large Company Growth Portfolio....................................................... 220,217,843 240,559,156
Small Company Stock Portfolio........................................................ 73,251,280 80,789,468
Small Company Value Portfolio........................................................ 13,617,977 15,011,982
Strategic Value Bond Portfolio....................................................... 15,165,308 16,445,503
Disciplined Growth Portfolio......................................................... 22,951,349 25,032,075
Small Cap Value Portfolio............................................................ 5,450,930 5,976,398
</TABLE>
NOTE 8. CONCENTRATION OF CREDIT RISK
The International Portfolio has a relatively large concentration of portfolio
securities invested in companies domiciled in Japan. The Portfolio may be more
susceptible to political, social and economic events adversely affecting
Japanese companies than portfolios not so concentrated.
NOTE 9. INTEREST RATE SWAP TRANSACTIONS
As of November 30, 1997 Managed Fixed Income Portfolio and Strategic Value Bond
Portfolio had entered into an interest swap agreement with Morgan Stanley
Capital Services Inc. ("MSCS"). In the agreement, the Portfolio has agreed to
exchange 6.47% fixed interest payments for interest payments based on LIBOR plus
0.30% on a notional amount of $6,500,000 and $3,500,000, respectively. Interest
rate differentials are settled semi-annually on April 8 and October 8,
commencing on April 8, 1998 and terminating on October 8, 2000. As of November
30, 1997 the unrealized gain on the agreement was $14,404 and $7,756,
respectively.
CORE TRUST (DELAWARE)
123
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
POSITIVE RETURN BOND PORTFOLIO
- ----------------------------------------------------
U.S. TREASURY BONDS (100.0%)
15,050,000 6.25%, 8/15/23 $ 15,261,649
4,500,000 7.50%, 11/15/24 5,300,159
37,100,000 6.88%, 8/15/25(c) 40,717,288
65,275,000 6.00%, 2/15/26(c) 64,112,322
63,275,000 6.50%, 11/15/26(c) 66,537,648
12,875,000 6.63%, 2/15/27(c) 13,760,169
---------------
TOTAL U.S. TREASURY BONDS (COST $192,175,470)
205,689,235
---------------
TOTAL INVESTMENTS (100.0%) (COST $192,175,470)
$ 205,689,235
---------------
---------------
- ----------------------------------------------------
STABLE INCOME PORTFOLIO
- ----------------------------------------------------
ASSET BACKED SECURITIES (19.9%)
1,933,547 AFC Home Equity Loan Trust Series 1995-2
A1, 7.45% VR, 7/25/26 $ 1,941,422
3,500,000 Aesop Funding II LLC, Series 1997-1 A1,
6.22% VR, 10/20/01(b)(h) 3,513,671
955,080 Bear Stearns Secured Investors Trust,
Series 1991-2 H, 7.50% VR, 9/20/20 958,505
4,000,000 DreamWorks Firm Trust, 6.10% VR,
10/15/05 4,000,000
1,500,000 EQCC Home Equity Loan Trust, Series
1995-3 A4, 7.10%, 2/15/12 1,535,640
2,950,762 GMAC, Commercial Mortgage Securities,
Inc., Series 1996 C1 A1, 6.35% VR,
10/15/28 2,954,449
5,105,000 Green Tree Financial Corp., Series
1993-4 A3, 6.25%, 1/15/19 5,118,222
1,075,000 Green Tree Financial Corp., Series
1994-1 A3, 6.90%, 4/15/19 1,090,878
2,510,000 Green Tree Financial Corp., Series
1995-5 A3, 6.25%, 9/15/26 2,516,401
3,500,000 Green Tree Financial Corp., Series
1995-10 A4, 6.30%, 2/15/27 3,505,285
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
ASSET BACKED SECURITIES (continued)
<TABLE>
<C> <S> <C>
3,500,000 HCLT, Series 1997-1 A3, 5.98% VR,
3/15/07 $ 3,493,438
5,000,000 HCLT, Series 1997-2 A3, 6.09% VR,
11/15/07 5,000,000
2,400,000 Keystone Home Improvement Loan Trust,
Series 1997-P2 IA3, 6.99%, 4/25/14 2,420,626
1,419,054 MLMI, Inc., Series 1987-C A, 10.10%,
12/15/07 1,480,115
3,462,529 Sequoia Mortgage Trust, Series 2 A1,
6.50% VR, 10/25/24 3,484,094
---------------
TOTAL ASSET BACKED SECURITIES (COST $42,894,321)
43,012,746
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (30.7%)
3,000,000 AMBS, Series CS-1012 1, 7.06% VR,
7/25/02 3,065,625
2,919,276 Commercial Loan Funding Trust, Series I
A, 6.08%, 8/15/05(b)(h) 2,917,157
198,447 FNMA, Series 1993-39 FA, 7.12% VR,
4/25/23 205,058
7,129,797 FNMA, Series 1994-1 A1, 6.08% VR,
10/20/04 7,124,228
3,700,000 Hospitality Properties Mortgage
Acceptance, Series 1996-C1, 6.31% VR,
12/6/04(b) 3,700,000
3,000,000 MLCC Mortgage Investors, Inc., Series
1994 A A3, 6.49% VR, 7/15/19 3,039,375
633,627 MLCC Mortgage Investors, Inc., Series
1994 B A1, 6.09% VR, 12/15/19 634,109
3,000,000 MLCC Mortgage Investors, Inc., Series
1994-B A2, 6.29% VR, 12/15/19 3,004,980
989,694 MLMI, Inc., Series 1994-I A1, 7.14% VR,
1/25/05 1,005,570
1,912,299 MNB Mortgage Pass-thru Certificates,
Series 1990-1 A, 9.50%, 6/25/19 1,912,299
3,000,000 PRAT, Series 1997-1 B, 6.55%, 9/6/03 3,022,530
813,772 RFMSI ARM, Series 1989-5A, 7.68% VR,
10/25/19 825,978
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
124
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
316,951 RFMSI ARM, Series 1991 21 BA, 7.63% VR,
8/25/21 $ 325,667
417,813 RTC, Series 1991-6 E, 11.59% VR, 5/25/24 434,264
1,089,533 RTC, Series 1991-14 A1, 7.61% VR,
1/25/22 1,098,693
253,047 RTC, Series 1991 M6 A3, 8.35% VR,
6/25/21 252,572
798,306 RTC, Series 1992-4 A2, 7.68% VR, 7/25/28 804,543
4,164,617 RTC, Series 1992-7 A2D, 8.35%, 6/25/29 4,191,295
1,213,063 RTC, Series 1992-9 B4, 7.53% VR, 4/25/27 1,215,718
2,391,821 RTC, Series 1992-18P A4, 6.64% VR,
4/25/28(b)(h) 2,391,821
6,407,250 RTC, Series 1992-C2 A2, 6.56% VR,
10/25/21 6,445,796
3,394,860 RTC, Series 1992-C3 A3, 6.84% VR,
8/25/23 3,396,980
131,076 RTC, Series 1992-CHF A2, 6.72% VR,
12/25/20 130,993
3,176,694 RTC, Series 1992-M3 A1, 7.75% VR,
7/25/30 3,173,178
3,353,968 RTC, Series 1992-M3 A4, 7.75% VR,
7/25/30 3,350,870
4,470,378 RTC, Series 1994-C1 A3, 6.24% VR,
6/25/26 4,476,663
1,377,174 RTC, Series 1995 C2 A2, 6.14% VR,
5/25/27 1,378,896
1,607,712 RTC, Series 1995-1 A3, 7.26% VR,
10/25/28 1,628,813
1,275,000 RTC, Series 1995-2 A1B, 7.15%, 5/25/29 1,275,797
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$66,623,909) 66,429,468
---------------
CORPORATE BONDS & NOTES (9.0%)
4,037,000 Chase Manhattan Corp., 10.13%, 11/1/00 4,451,471
2,150,000 Chrysler Financial Corp., 6.26%, 7/20/98 2,155,226
2,500,000 Corestates Capital Corp., 9.63%, 2/15/01 2,719,013
2,043,000 Lehman Brothers Holdings, Inc., 8.88%,
11/1/98 2,089,319
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
3,475,000 Newell Co., 6.18%, 7/11/00 $ 3,479,657
1,500,000 Transamerica Financial, 6.41%, 6/20/00 1,508,432
1,000,000 Transamerica Financial, 6.36%, 6/26/00 1,004,467
2,000,000 USAA Capital Corp., 5.97%, 8/4/99(b)(h) 2,001,150
---------------
TOTAL CORPORATE BONDS & NOTES (COST $19,299,608)
19,408,735
---------------
GOVERNMENT AGENCY BONDS & NOTES (6.7%)
FFCB (0.5%)
1,200,000 4.65% VR, 3/2/98
(cost $1,188,519) 1,196,699
---------------
FHLB (4.2%)
350,000 5.88% VR, 12/23/97 350,041
2,000,000 4.50% VR, 3/2/98 1,992,810
1,000,000 4.95% VR, 3/4/98 995,926
500,000 4.65% VR, 3/11/98 498,469
2,000,000 7.11%, 7/8/99(c) 2,037,234
400,000 3.06% VR, 7/15/98 393,996
950,000 Series AP98, 5.40% VR, 4/27/98 948,667
1,790,000 Series RR98, 4.42% VR, 3/16/98 1,781,353
---------------
TOTAL FHLB (COST $8,985,079) 8,998,496
---------------
FHLMC (0.9%)
2,000,000 Structured Note, 4.65% VR, 3/11/98 (cost
$1,990,551) 1,993,875
---------------
FNMA (1.1%)
1,300,000 4.97% VR, 3/10/98 1,297,208
1,000,000 8.70%, 6/10/99 1,040,734
---------------
TOTAL FNMA (COST $2,344,376) 2,337,942
---------------
TOTAL GOVERNMENT AGENCY BONDS & NOTES (COST $14,508,525)
14,527,012
---------------
MORTGAGE BACKED SECURITIES (15.5%)
FHLMC ARM (1.4%)
823,228 Pool 410220, 7.60% VR, 10/1/25 847,924
1,369,105 Pool 845151, 7.82% VR, 6/1/22 1,428,072
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
125
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
MORTGAGE BACKED SECURITIES (continued)
FHLMC ARM (continued)
<TABLE>
<C> <S> <C>
709,954 Pool 846367, 7.41% VR, 4/1/29 $ 735,583
---------------
TOTAL FHLMC ARM (COST $2,960,756) 3,011,579
---------------
FNMA ARM (5.2%)
291,770 Pool 46698, 7.13% VR, 12/1/15 304,588
1,735,748 Pool 155506, 7.46% VR, 4/1/22 1,811,114
3,031,438 Pool 190815, 6.44% VR, 7/1/17 3,073,272
1,326,392 Pool 220706, 8.05% VR, 6/1/23 1,388,322
1,703,705 Pool 318464, 7.57% VR, 4/1/25 1,771,427
2,067,400 Pool 321051, 7.96% VR, 8/1/25 2,153,424
760,055 Pool 331866, 7.29% VR, 12/1/25 787,562
---------------
TOTAL FNMA ARM (COST $11,065,990) 11,289,709
---------------
SBA ARM (8.9%)
112,306 Pool 500025, 8.38% VR, 12/25/10 118,202
67,112 Pool 500276, 10.38% VR, 5/25/07 72,565
157,138 Pool 500299, 10.38% VR, 6/25/07 168,530
731,168 Pool 500392, 8.38% VR, 11/25/12 778,694
102,064 Pool 500569, 10.38% VR, 6/25/08 110,485
601,157 Pool 500664, 8.38% VR, 3/25/04 631,086
635,397 Pool 500806, 7.00% VR, 2/25/14 651,282
708,644 Pool 500957, 8.75% VR, 7/25/14 775,966
18,775 Pool 501013, 9.38% VR, 6/25/98 18,822
208,212 Pool 501017, 6.88% VR, 9/25/14 210,816
666,154 Pool 501224, 7.25% VR, 6/25/15 702,792
54,617 Pool 501828, 9.13% VR, 9/25/98 54,754
85,825 Pool 501973, 10.13% VR, 12/25/01 89,044
333,864 Pool 502083, 8.38% VR, 11/25/04 344,297
252,153 Pool 502241, 8.38% VR, 4/25/03 255,935
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
MORTGAGE BACKED SECURITIES (continued)
SBA ARM (continued)
<TABLE>
<C> <S> <C>
431,442 Pool 502394, 10.13% VR, 6/25/13 $ 481,597
1,192,094 Pool 502462, 9.73% VR, 11/25/07 1,278,521
882,647 Pool 502501, 9.73% VR, 4/25/03 923,469
386,806 Pool 502568, 9.73% VR, 9/25/03 405,663
399,681 Pool 502583, 9.73% VR, 9/25/03 419,166
170,898 Pool 502966, 9.73% VR, 5/25/15 199,293
349,721 Pool 503249, 8.38% VR, 4/25/07 364,584
343,402 Pool 503250, 9.73% VR, 3/25/09 376,024
482,582 Pool 503398, 8.88% VR, 5/25/13 525,410
847,606 Pool 503405, 8.88% VR, 5/25/13 936,604
2,207,752 Pool 503611, 8.38% VR, 12/25/21 2,540,104
218,558 Pool 503653, 9.13% VR, 1/25/10 245,982
1,448,771 Pool 503658, 9.63% VR, 9/25/10 1,664,256
1,347,940 Pool 503664, 8.98% VR, 1/25/13 1,537,452
2,145,389 Pool 503694, 8.38% VR, 1/25/22 2,471,772
---------------
TOTAL SBA ARM (COST $19,145,878) 19,353,167
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $33,172,624)
33,654,455
---------------
MUNICIPAL BONDS & NOTES (1.6%)
3,145,000 Denver, CO, City and County SD #1,
Educational Facilities RV, Taxable
Pension, School Facilities Lease,
AMBAC insured, 6.34%, 12/15/00 3,165,505
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
126
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
STABLE INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
MUNICIPAL BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
330,000 York County, PA, Tax-Exempt Economic
Development RV, 5.45%, 12/30/98 $ 327,878
---------------
TOTAL MUNICIPAL BONDS & NOTES (COST $3,472,901)
3,493,383
---------------
RECEIVABLES BACKED SECURITIES (3.8%)
2,500,000 Choice Credit Card Master Trust, Series
1992-2 B, 7.20%, 4/15/99 2,510,374
1,000,000 First Merchants Auto Receivables Corp.,
Series 1996-A A2, 6.70%, 7/17/00(b)(h) 1,005,431
1,684,584 First Merchants Grantor Trust, Series
1996-2 A, 6.85%, 11/15/01(b)(h) 1,695,941
3,000,000 Standard Credit Card Master Trust,
Series 1991-3 B, 9.25%, 9/7/99 3,066,300
---------------
TOTAL RECEIVABLES BACKED SECURITIES (COST $8,298,469)
8,278,046
---------------
U.S. TREASURY OBLIGATIONS (9.3%)
U.S. TREASURY NOTES (9.3%)
12,000,000 8.00%, 8/15/99(c) 12,423,756
1,000,000 7.75%, 1/31/00 1,038,751
2,250,000 6.38%, 5/15/00(c) 2,278,829
3,000,000 6.38%, 9/30/01(c) 3,049,689
1,250,000 5.88%, 2/15/04(c) 1,251,173
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $19,823,831)
20,042,198
---------------
REPURCHASE AGREEMENTS (3.5%)
7,611,088 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$7,614,715 (cost $7,611,088)(e) 7,611,088
---------------
TOTAL INVESTMENTS (100.0%) (COST $215,705,276)
$ 216,457,131
---------------
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO
- ----------------------------------------------------
ASSET BACKED SECURITIES (14.7%)
1,800,000 ContiMortgage Home Equity Loan Trust,
Series 1997-4 A7, 6.63%, 9/15/16 $ 1,808,570
2,441,000 EQCC Home Equity Loan Trust, Series
1996-2 A4, 7.50%, 6/15/21 2,541,677
4,900,000 EQCC Home Equity Loan Trust, Series
1997-2 A9, 6.81%, 7/15/28 4,977,420
1,500,000 Equicredit Funding Trust, Series 1997-B
A7, 6.86%, 10/15/28 1,523,437
1,000,000 GE Capital Mortgage Services, Inc.,
Series 1997 HE-2 A7, 7.12%, 6/25/27 1,025,230
3,800,000 Green Tree Financial Corp., Series
1994-1 A4, 7.20%, 4/15/19 3,921,767
600,000 Green Tree Financial Corp., Series
1995-5 A5, 6.90%, 9/15/26 613,632
1,500,000 Green Tree Financial Corp., Series
1995-10 A4, 6.30%, 2/15/27 1,502,265
10,000,000 Green Tree Financial Corp., Series
1997-7 A8, 6.86%, 7/15/29 10,157,500
1,100,000 Green Tree Home Improvement Loan Trust,
Series 1995-F A4, 6.15%, 1/15/21 1,094,753
3,000,000 Keystone Home Improvement Loan Trust,
Series 1997-P2 IA3, 6.99%, 4/25/14 3,025,782
6,693,000 Oakwood Mortgage Investors, Inc., Series
1995-A A3, 7.10%, 9/15/20 6,888,435
6,500,000 Van Kampen CLO-I Ltd., 6.02% VR, 10/8/07 6,485,005
---------------
TOTAL ASSET BACKED SECURITIES (COST $44,976,354)
45,565,473
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS (18.4%)
2,750,000 AMBS, Series CS-1012 1, 7.06%, 7/25/02 2,810,157
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
127
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
1,600,000 American Housing Trust, Series VI, Class
I-I, 9.15%, 5/25/20 $ 1,747,665
1,500,000 Asset Securitization Corp., Series
1997-D4, Class A1C, 7.42%, 4/14/27 1,601,070
3,201,169 CMC Securities Corp. II, Series 1993-2I
A2, 7.30% VR, 9/25/23 3,228,183
750,000 FHLMC, Series 1832 D, 6.50%, 6/15/08 757,298
488,417 FNMA, Series 1988-5 Z, 9.20%, 3/25/18 518,005
1,627,311 FNMA, Series 1989-27 Y, 6.90%, 6/25/19 1,635,903
3,500,000 FNMA, Series 1994-M1 B, 6.50%, 10/25/03 3,527,347
1,499,556 First Plus Home Loan Trust, Series
1996-2 A6, 7.85%, 8/20/13 1,565,395
5,000,000 Hospitality Properties Mortgage
Acceptance, Series 1996-C1, 6.31% VR,
12/6/04(b) 5,000,000
1,950,185 L.F. Rothschild Mortgage Trust, Series
2Z, 9.95%, 8/1/17 2,162,309
1,214,625 MLMI, Inc., Series 1994-I, 8.14% VR,
1/25/05 1,234,109
700,414 RTC, Series 1991-14 A1, 7.61% VR,
1/25/22 706,303
1,676,102 RTC, Series 1991-M5 A, 9.00%, 3/25/17 1,773,183
2,235,257 RTC, Series 1992-4 A2, 7.68% VR, 7/25/28 2,252,720
3,950,659 RTC, Series 1992-M3 A1, 7.75%, 7/25/30 3,946,287
2,686,366 RTC, Series 1992-M3 A2, 8.63%, 7/25/30 2,683,849
2,000,000 RTC, Series 1995-1 A2C, 7.50%, 10/25/28 2,030,935
1,000,000 RTC, Series 1995-1 A2D, 7.50%, 10/25/28 1,014,531
1,000,000 RTC, Series 1995-2 A1C, 7.45%, 5/25/29 1,010,000
791,297 RTC, Series 1995-C2 A1C, 6.55%, 5/25/27 791,295
2,150,000 RFMSI ARM, Series 1994-S13 A2, 7.00%,
5/25/24 2,151,675
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
<TABLE>
<C> <S> <C>
1,000,000 Vendee Mortgage Trust, Series 1992-2 2D,
7.75%, 12/15/14 $ 1,025,260
3,653,810 Vendee Mortgage Trust, Series 1992-2 G,
7.25%, 2/15/19 3,687,980
3,250,000 Vendee Mortgage Trust, Series 1995-1C
3E, 8.00%, 7/15/18 3,424,850
3,000,000 Vendee Mortgage Trust, Series 1997-1 2C,
7.50%, 9/15/17 3,087,430
1,500,000 Vendee Mortgage Trust, Series 1997-1 2D,
7.50%, 1/15/19 1,525,670
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$56,388,530) 56,899,409
---------------
CORPORATE BONDS & NOTES (41.5%)
2,250,000 Allied Signal, Inc., 9.88%, 6/1/02 2,564,415
755,000 Allied Signal, Inc., 9.20%, 2/15/03 849,428
600,000 Applied Materials, 6.70%, 9/6/05 606,349
5,400,000 Applied Materials, 7.00%, 9/6/05 5,554,909
3,600,000 Cargill, Inc., 8.35%, 2/12/11(b)(h) 3,946,500
700,000 Charles Schwab Corp., 7.19%, 5/31/01 716,529
2,000,000 Charles Schwab Corp., 6.25%, 1/23/03 1,978,253
2,000,000 Charles Schwab Corp., 6.88%, 9/2/03 2,026,222
3,400,000 Chase Manhattan Corp., 8.63%, 5/1/02 3,689,048
3,400,000 Citicorp, 9.50%, 2/1/02 3,766,149
3,000,000 CIT Group Holdings, 6.15%, 12/15/02 2,971,746
1,500,000 Coca Cola Bottling Co., 6.85%, 11/01/07 1,519,393
1,500,000 Colonial Pipeline, 7.13%, 8/15/02(b) 1,546,350
625,000 Colonial Pipeline, 7.45%, 8/15/07(b)(h) 660,625
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
128
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
2,300,000 Continental Airlines, Inc., 7.15%,
6/30/07 $ 2,333,833
2,175,000 Corestates Capital Corp., 5.88%,
10/15/03 2,116,594
750,000 Corestates Capital Corp., 6.41% VR,
1/15/27(b)(h) 739,564
1,000,000 El Paso Natural Gas, 7.75%, 1/15/02 1,046,133
200,000 First Bank N.A., 6.00%, 10/15/03 196,226
2,500,000 First Bank Systems, Inc., 8.00%, 7/2/04 2,700,517
1,300,000 First Bank Systems, Inc., 7.63%, 5/1/05 1,383,686
1,000,000 First Data Corp., 6.63%, 4/1/03 1,014,226
3,000,000 Florida Residential Property & Casualty,
7.25%, 7/1/02(b)(h) 3,055,641
1,700,000 Hyundai Semiconductor, 8.25%,
5/15/04(b)(h) 1,569,953
1,500,000 LG-Caltex Oil, 7.88%, 7/1/06(b)(h) 1,559,943
2,500,000 Lehman Brothers Holdings, Inc., 8.80%,
3/1/15 2,937,760
5,065,000 Levi Strauss & Co., 6.80%, 11/1/03(b) 5,150,543
500,000 MBNA Corp., 7.49%, 9/14/99 510,033
1,900,000 Massachusetts Institute of Technology,
7.25%, 11/2/2096 2,113,860
2,000,000 May Department Stores, 9.88%, 6/15/00 2,168,517
5,635,000 Oracle Corp., 6.72%, 2/15/04 5,711,016
3,600,000 Paine Webber Group, Inc., 7.00%, 3/1/00 3,640,226
1,250,000 Paine Webber Group, Inc., 6.90%, 8/15/03 1,256,519
5,000,000 Pep Boys, 6.71%, 11/3/04 5,026,110
1,305,000 Petroliam Nasional Berhad, 6.63%,
10/18/01(b)(h) 1,274,301
2,750,000 Philip Morris Cos., Inc., 7.63%, 5/15/02 2,862,921
2,500,000 Philip Morris Cos., Inc., 7.50%, 4/1/04 2,598,778
2,709,000 Philips Electronics, 6.75%, 8/15/03 2,741,765
2,000,000 Potomac Capital Investment Corp., 7.32%,
4/14/00 2,037,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
2,450,000 Prudential Insurance Co., 7.65%,
7/1/07(b) $ 2,564,802
3,000,000 Raytheon Co., 6.45%, 8/15/02 3,014,070
5,200,000 Reinsurance Group of America, 7.25%,
4/1/06(b) 5,399,732
2,500,000 Reynolds & Reynolds, 7.00%, 12/15/06 2,555,310
1,750,000 Royal Carribbean Cruises, 7.13%, 9/18/02 1,799,031
3,325,000 Scholastic Corp., 7.00%, 12/15/03 3,380,095
2,250,000 Terra Nova Holdings, 10.75%, 7/1/05 2,525,001
2,200,000 Terra Nova Holdings, 7.20%, 8/15/07(b) 2,245,793
3,000,000 Texas Utilities, 6.20%, 10/1/02(b) 2,989,269
2,100,000 Transamerica Financial, 6.41%, 6/20/00 2,111,805
750,000 Tyco International Ltd., 6.50%, 11/1/01 753,796
2,500,000 Tyco International Ltd., 6.38%, 1/15/04 2,491,975
1,050,000 USA Waste Services, Inc., 7.00%, 10/1/04 1,067,695
1,000,000 US West Capital Funding, Inc., 6.95%,
1/15/37 1,023,328
885,000 United Missouri Bancshares, 7.30%,
2/24/03 909,568
1,000,000 Universal Corp., 9.25%, 2/15/01 1,077,585
250,000 Vastar Resources, Inc., 6.95%, 11/8/06 255,896
850,000 Whitman Corp., 7.50%, 2/1/03 889,264
1,000,000 Whitman Corp., 7.29%, 9/15/26 1,051,021
---------------
TOTAL CORPORATE BONDS & NOTES (COST $125,808,029)
128,246,617
---------------
MORTGAGE BACKED SECURITIES (7.7%)
FHLMC ARM (1.9%)
1,234,133 Pool 410425, 7.86% VR, 9/1/26 1,274,785
765,749 Pool 410464, 6.40% VR, 11/1/26 788,438
1,512,046 Pool 606279, 7.28% VR, 2/1/15 1,583,672
2,129,862 Pool 846367, 7.41% VR, 4/1/29 2,206,749
---------------
TOTAL FHLMC ARM (COST $5,750,268) 5,853,644
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
129
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
MORTGAGE BACKED SECURITIES (continued)
FNMA (5.8%)
3,477,207 Pool 73919, 6.80%, 1/1/04 $ 3,504,364
6,631,752 Pool 313687, 7.00%, 9/1/27 6,631,606
370,332 Pool 342042, 7.61% VR, 6/1/25 385,123
1,096,297 Pool 344689, 7.75% VR, 11/1/25 1,140,874
619,416 Pool 344692, 7.59% VR, 10/1/25 644,130
562,873 Pool 347712, 7.74% VR, 6/1/26 583,334
4,982,515 Pool 375168, 7.13%, 6/1/04 5,166,151
---------------
TOTAL FNMA (COST $18,071,195) 18,055,582
---------------
GNMA (0.0%)
99 Pool 665, 7.50%, 5/15/01 101
1,235 Pool 2218, 6.50%, 12/15/02 1,238
---------------
TOTAL GNMA (COST $1,240) 1,339
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $23,822,703)
23,910,565
---------------
MUNICIPAL BONDS & NOTES (2.5%)
3,500,000 Denver, CO, City and County SD #1,
Educational Facilities RV, Taxable
Pension, School Facilities Lease,
AMBAC insured, 6.67%, 12/15/04 3,558,660
3,805,000 Hudson County, NJ, Import Authority
Facilities, Leasing RV, FSA insured,
7.40%, 12/1/25 4,029,571
---------------
TOTAL MUNICIPAL BONDS & NOTES (COST $7,409,751)
7,588,231
---------------
RECEIVABLES BACKED SECURITIES (1.7%)
2,900,000 First Merchants Auto Receivables Corp.,
Series 1996-A A2, 6.70%, 7/17/00(b) 2,915,752
2,300,000 Keystone/Lehman Title I Loan Trust
1996-2, 7.45%, 11/25/10 2,392,039
---------------
TOTAL RECEIVABLES BACKED SECURITIES (COST $5,196,361)
5,307,791
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
MANAGED FIXED INCOME PORTFOLIO (continued)
- ----------------------------------------------------
U.S. TREASURY OBLIGATIONS (12.6%)
U.S. TREASURY BONDS (11.2%)
5,500,000 7.50%, 11/15/16(c) $ 6,331,880
12,500,000 7.13%, 2/15/23(c) 14,084,375
13,000,000 6.75%, 8/15/26(c) 14,096,888
---------------
TOTAL U.S. TREASURY BONDS (COST $33,258,907)
34,513,143
---------------
U.S. TREASURY NOTES (1.4%)
4,000,000 7.00%, 7/15/06 (cost $4,280,625)(c) 4,285,009
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $37,539,532)
38,798,152
---------------
REPURCHASE AGREEMENTS (0.9%)
2,903,064 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$2,904,448 (cost $2,903,064)(e) 2,903,064
---------------
TOTAL INVESTMENTS (100.0%) (COST $304,044,324)
$ 309,219,302
---------------
---------------
- ----------------------------------------------------
TOTAL RETURN BOND PORTFOLIO
- ----------------------------------------------------
CORPORATE BONDS & NOTES (19.3%)
4,650,000 AT&T Capital Corp., 6.26%, 2/18/99 $ 4,653,143
1,498,125 GMAC, 6.05%, 10/4/99 1,495,091
1,000,000 Limited, Inc., 8.88%, 8/15/99 1,037,567
500,000 McDermott International, Inc., 6.50%,
4/20/98 500,285
3,180,000 McDermott International, Inc., 6.50%,
4/23/98 3,181,818
300,000 National Rural Utilities, 6.03%,
11/18/99 299,315
200,000 Pennsylvania Power & Light Co., 5.50%,
4/1/98 199,673
2,800,000 Philadelphia Electric, 7.50%, 1/15/99 2,839,939
2,000,000 Puget Sound Power & Light, 6.41%,
9/16/99 2,007,171
1,600,000 Texas Utilities Electric Co., 9.50%,
8/1/99 1,671,372
1,800,000 Unicom Corp., 6.00%, 3/15/98 1,799,427
1,000,000 Union Oil of California, 8.90%, 2/15/99 1,031,617
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
130
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TOTAL RETURN BOND PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
3,875,000 Union Oil of California, 7.24%, 4/1/99 $ 3,928,846
800,000 Virginia Electric Power, 6.35%, 6/8/98 802,010
1,000,000 Washington Natural Gas, 7.08%, 1/15/99 1,009,588
---------------
TOTAL CORPORATE BONDS & NOTES (COST $26,525,415)
26,456,862
---------------
MORTGAGE BACKED SECURITIES (12.2%)
GMMA (12.2%)
3,280,214 Pool 345066, 6.50%, 10/15/23 3,238,621
3,220,513 Pool 346960, 6.50%, 12/15/23 3,179,677
3,066,826 Pool 354692, 6.50%, 11/15/23 3,027,939
3,628,437 Pool 361398, 6.50%, 1/15/24 3,580,216
3,776,106 Pool 366641, 6.50%, 11/15/23 3,728,225
---------------
TOTAL MORTGAGE BACKED SECURITIES (COST $15,990,117)
16,754,678
---------------
U.S. TREASURY OBLIGATIONS (66.8%)
U.S. TREASURY BONDS (17.8%)
10,000,000 9.38%, 2/15/06(c) 12,215,630
415,000 11.25%, 2/15/15 642,861
1,325,000 7.50%, 11/15/16(c) 1,525,407
1,475,000 8.75%, 5/15/17 1,908,744
3,575,000 8.13%, 8/15/19 4,412,894
1,450,000 8.75%, 8/15/20 1,906,750
1,700,000 7.13%, 2/15/23(c) 1,915,475
---------------
TOTAL U.S. TREASURY BONDS (COST $20,840,778)
24,527,761
---------------
U.S. TREASURY NOTES (49.0%)
925,000 8.25%, 7/15/98 939,454
1,000,000 8.88%, 11/15/98 1,028,751
2,450,000 5.75%, 12/31/98 2,450,768
4,750,000 6.88%, 7/31/99 4,828,675
350,000 7.75%, 11/30/99 362,688
3,150,000 7.75%, 12/31/99 3,269,111
4,050,000 8.50%, 2/15/00 4,271,487
7,850,000 7.13%, 2/29/00(c) 8,063,426
6,875,000 6.88%, 3/31/00 7,031,839
10,125,000 6.13%, 7/31/00(c) 10,200,948
650,000 8.00%, 5/15/01 692,657
2,100,000 6.63%, 6/30/01(c) 2,149,220
500,000 7.25%, 8/15/04 537,188
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
TOTAL RETURN BOND PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS (continued)
U.S. TREASURY NOTES (continued)
<TABLE>
<C> <S> <C>
1,000,000 6.50%, 5/15/05 $ 1,035,001
2,000,000 6.88%, 5/15/06 2,123,751
10,700,000 7.00%, 7/15/06(c) 11,462,385
6,675,000 6.25%, 2/15/07(c) 6,827,279
---------------
TOTAL U.S. TREASURY NOTES (COST $69,927,150)
67,274,628
---------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $90,767,928)
91,802,389
---------------
REPURCHASE AGREEMENTS (1.7%)
2,327,940 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$2,329,050 (cost $2,327,940)(e) 2,327,940
---------------
TOTAL INVESTMENTS (100.0%) (COST $135,611,400)
$ 137,341,869
---------------
---------------
- ----------------------------------------------------
INDEX PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (95.6%)
AGRICULTURAL PRODUCTION--CROPS (0.1%)
11,500 Pioneer Hi-Bred International, Inc. $ 1,174,430
---------------
AMUSEMENT & RECREATION SERVICES (0.8%)
14,400 Harrah's Entertainment, Inc.(a) 288,900
94,600 Walt Disney Co.(c) 8,981,080
---------------
9,269,980
---------------
APPAREL & ACCESSORY STORES (0.6%)
25,100 CVS Corp. 1,666,010
14,800 Charming Shoppes, Inc.(a) 72,610
37,200 Gap, Inc.(c) 1,997,170
38,000 Limited, Inc. 914,370
11,200 Nordstrom, Inc.(c) 660,796
24,300 TJX Cos., Inc. 838,350
---------------
6,149,306
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(0.1%)
9,900 Liz Claiborne, Inc. 497,474
17,600 V.F. Corp. 812,900
---------------
1,310,374
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
131
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
AUTOMOTIVE DEALERS & GASOLINE SERVICE STATIONS (0.1%)
21,100 Autozone, Inc. (a)(c) $ 633,000
9,300 Pep Boys - Manny, Moe & Jack 233,660
---------------
866,660
---------------
AUTOMOTIVE REPAIR, SERVICES, & PARKING (0.0%)
11,200 Ryder System, Inc. 406,700
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (0.0%)
4,000 Centex Corp. 253,500
5,400 Kaufman & Broad Home Corp. 117,110
2,900 Pulte Corp. 117,630
---------------
488,240
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (0.6%)
102,100 Home Depot, Inc.(c) 5,711,210
24,200 Lowe's Cos., Inc.(c) 1,111,685
---------------
6,822,895
---------------
BUSINESS SERVICES (4.5%)
46,500 3Com Corp.(a) 1,685,625
10,000 Adobe Systems, Inc. 420,000
6,700 Autodesk, Inc. 257,530
41,000 Automatic Data Processing, Inc.(c) 2,306,250
57,200 C.U.C. International, Inc.(a)(c) 1,644,500
21,800 Cabletron Systems, Inc.(a) 501,400
11,300 Ceridian Corp.(a)(c) 495,790
22,800 Cognizant Corp. 977,550
76,351 Computer Associates International,
Inc.(a)(c) 3,974,970
10,700 Computer Sciences Corp.(a)(c) 847,305
21,200 Equifax, Inc. 723,450
62,900 First Data Corp.(c) 1,780,855
27,600 HBO & Co.(c) 1,238,550
17,700 Interpublic Group of Cos., Inc.(c) 848,490
167,900 Microsoft Corp.(a) 23,757,850
48,600 Novell, Inc.(a) 449,550
137,301 Oracle Systems Corp.(a)(c) 4,573,805
17,900 Parametric Technology Co.(a)(c) 905,070
8,200 Safety Kleen Corp. 227,550
3,500 Shared Medical Systems Corp. 224,000
33 Siebel Systems, Inc.(a) 1,385
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
BUSINESS SERVICES (continued)
<TABLE>
<C> <S> <C>
51,700 Sun Microsystems, Inc.(a)(c) $ 1,861,200
---------------
49,702,675
---------------
CHEMICALS & ALLIED PRODUCTS (11.2%)
108,400 Abbott Laboratories 7,046,000
15,400 Air Products & Chemicals, Inc.(c) 1,180,985
7,900 Alberto Culver Co. 246,380
9,200 Allergan, Inc. 311,650
11,900 Alza Corp.(a) 317,580
18,500 Avon Products, Inc. 1,069,530
38,900 Baxter International, Inc.(c) 1,969,315
140,100 Bristol-Myers Squibb Co.(c) 13,116,860
21,400 Clorox Co. 1,661,175
41,400 Colgate-Palmolive Co.(c) 2,766,040
31,600 Dow Chemical Co. 3,120,500
158,200 E.I. du Pont de Nemours & Co. 9,580,990
11,000 Eastman Chemical Co.(c) 664,125
9,100 Ecolab, Inc. 464,100
155,600 Eli Lilly & Co. 9,812,525
5,200 FMC Corp.(a) 379,925
7,600 Goodrich (B.F.) Co.(c) 338,200
8,400 Great Lakes Chemical Corp. 376,950
14,100 Hercules, Inc. 684,730
15,300 International Flavors & Fragrances,
Inc.(c) 737,270
186,600 Johnson & Johnson, Inc. 11,744,140
10,300 Mallinckrodt, Inc. 381,100
169,100 Merck & Co., Inc. 15,990,520
82,900 Monsanto Co. 3,621,695
19,600 Morton International, Inc. 667,625
9,400 Nalco Chemical Co. 364,835
25,300 PPG Industries, Inc. 1,465,815
180,900 Pfizer, Inc. 13,160,475
71,100 Pharmacia & Upjohn, Inc. 2,399,625
22,100 Praxair, Inc. 971,020
8,700 Rohm & Haas Co. 799,855
102,500 Schering-Plough Corp. 6,425,470
24,100 Sherwin-Williams Co. 688,355
15,620 Solutia, Inc. 356,330
17,600 Union Carbide Corp. 776,600
10,200 W.R. Grace & Co. 742,050
38,000 Warner-Lambert Co.(c) 5,315,250
---------------
121,715,590
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
132
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
COMMUNICATIONS (7.1%)
227,700 AT&T Corp. $ 12,722,740
70,500 Airtouch Communications, Inc.(a)(c) 2,767,125
26,100 Alltel Corp. 1,037,475
76,900 Ameritech Corp.(c) 5,926,105
108,700 Bell Atlantic Corp.(c) 9,701,475
139,100 BellSouth Corp. 7,615,725
13,900 Clear Channel Communications, Inc.(a)(c) 941,725
49,100 Comcast Corp., Class A 1,374,800
23,000 Frontier Corp.(c) 563,500
133,800 GTE Corp. 6,765,260
5,200 King World Productions, Inc.(c) 282,750
79,500 MCI Communications Corp. 3,493,030
20,500 NextLevel Systems, Inc.(a) 271,625
127,800 SBC Communications, Inc.(c) 9,305,435
60,300 Sprint Corp. 3,531,315
70,800 Tele-Communications, Inc.(a)(c) 1,621,765
67,200 U.S. West Communications Group(c) 3,036,600
85,000 U.S. West Media Group(a)(c) 2,257,810
129,200 WorldCom, Inc.(a)(c) 4,134,400
---------------
77,350,660
---------------
DEPOSITORY INSTITUTIONS (8.0%)
83,800 Banc One Corp.(c) 4,305,225
52,700 Bank of New York Co., Inc. 2,832,625
97,500 BankAmerica Corp.(c) 7,117,500
20,600 BankBoston Corp.(c) 1,835,975
13,700 Bankers Trust New York Corp.(c) 1,624,305
27,900 Barnett Banks, Inc. 1,963,465
59,000 Chase Manhattan Corp. 6,408,875
64,200 Citicorp(c) 7,699,990
14,800 Comerica, Inc. 1,260,775
28,100 Corestates Financial Corp. 2,172,485
21,200 Fifth Third Bancorp 1,494,600
41,500 First Chicago NBD Corp. 3,247,375
78,000 First Union Corp.(c) 3,802,500
33,800 Fleet Financial Group, Inc.(c) 2,232,910
8,000 Golden West Financial Corp.(c) 717,005
13,300 H. F. Ahmanson & Co. 791,350
26,700 Huntington Bancshares, Inc.(c) 907,800
24,600 J.P. Morgan & Co., Inc. 2,809,015
29,900 KeyCorp 2,016,380
34,700 Mellon Bank Corp. 1,967,055
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
DEPOSITORY INSTITUTIONS (continued)
<TABLE>
<C> <S> <C>
29,800 National City Corp.(c) $ 1,989,150
98,400 NationsBank Corp.(c) 5,910,155
104,800 Norwest Corp.(c)(e) 3,923,450
41,400 PNC Bank Corp.(c) 2,227,840
7,800 Republic New York Corp. 848,250
22,700 State Street Corp. 1,350,650
29,200 Suntrust Banks, Inc. 2,073,200
34,300 U.S. Bancorp(c) 3,689,395
22,600 Wachovia Corp.(c) 1,740,200
35,000 Washington Mutual, Inc.(c) 2,419,375
12,300 Wells Fargo & Co.(c) 3,779,175
---------------
87,158,050
---------------
EATING & DRINKING PLACES (0.7%)
21,400 Darden Restaurants, Inc. 254,125
17,700 Marriott International, Inc. 1,282,145
96,700 McDonald's Corp. 4,689,950
21,470 Tricon Global Restaurants, Inc. (a) 725,955
18,400 Wendy's International, Inc.(c) 386,400
---------------
7,338,575
---------------
ELECTRIC, GAS, & SANITARY SERVICES (3.3%)
26,400 American Electric Power Co.(c) 1,308,450
20,700 Baltimore Gas and Electric Co.(c) 635,230
29,800 Browning-Ferris Industries(c) 1,063,485
22,100 CINergy Corp. 787,315
21,200 Carolina Power & Light Co. 792,350
29,700 Central & Southwest Corp. 742,500
14,800 Coastal Corp.(c) 866,725
7,800 Columbia Gas System, Inc. 567,450
32,900 Consolidated Edison Co. of New York,
Inc.(c) 1,241,975
13,300 Consolidated Natural Gas Co. 802,990
20,300 DTE Energy Co.(c) 666,095
26,500 Dominion Resources, Inc. 1,030,190
50,400 Duke Energy Corp.(c) 2,620,800
2,900 Eastern Enterprises 116,725
54,400 Edison International 1,458,600
42,800 Enron Corp.(c) 1,658,500
34,700 Entergy Corp.(c) 902,200
25,600 FPL Group, Inc.(c) 1,432,000
34,100 FirstEnergy Corp.(a) 920,700
16,900 GPU, Inc. 667,550
41,100 Houston Industries, Inc. 973,560
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
133
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
COMMON STOCK (continued)
ELECTRIC, GAS, & SANITARY SERVICES (continued)
41,700 Laidlaw, Inc., Class B $ 542,100
20,200 Niagara Mohawk Power Corp.(a) 193,160
6,900 Nicor, Inc. 277,725
9,700 Northern States Power Co. 532,290
4,000 Oneok, Inc. 149,500
23,000 PP&L Resources, Inc. 540,500
41,400 PacifiCorp 965,140
11,700 Pacific Enterprises 413,890
61,400 Pacific Gas & Electric Co. 1,734,550
31,200 Peco Energy Co. 758,550
4,900 People's Energy Corp. 179,465
32,500 Public Service Enterprise Group, Inc. 948,595
12,100 Sonat, Inc.(c) 527,110
95,500 Southern Co.(c) 2,292,000
33,700 Texas Utilities Co. 1,348,000
14,300 Union Electric Co. 569,315
63,500 Waste Management, Inc. 1,563,690
22,200 Williams Cos., Inc.(c) 1,186,310
---------------
35,977,280
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (7.7%)
30,800 AMP, Inc. 1,337,875
19,700 Advanced Micro Devices, Inc. 429,705
3,900 Aeroquip-Vickers, Inc. 199,145
12,800 Andrew Corp.(a)(c) 339,200
17,900 Cooper Industries, Inc.(c) 924,090
16,400 DSC Communications Corp.(a) 370,025
62,400 Emerson Electric Co. 3,432,000
459,700 General Electric Co. 33,902,875
11,200 Harris Corp. 531,300
229,500 Intel Corp. 17,814,935
19,800 LSI Logic Corp.(a) 460,350
89,700 Lucent Technologies, Inc.(c) 7,187,215
13,700 Maytag Corp.(c) 442,680
29,500 Micron Technology, Inc.(a)(c) 733,815
83,300 Motorola, Inc.(c) 5,237,490
19,800 National Semiconductor
Corp.(a)(c) 655,875
6,300 National Service Industries 294,920
37,500 Northern Telecom Ltd. 3,367,965
6,100 Raychem Corp. 576,830
10,900 Scientific-Atlanta, Inc. 218,000
25,300 Tellabs, Inc.(a)(c) 1,315,600
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
53,600 Texas Instruments, Inc.(c) $ 2,639,800
7,900 Thomas & Betts Corp. 358,465
10,400 Whirlpool Corp.(c) 570,050
---------------
83,340,205
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT, & RELATED SERVICES (0.1%)
24,000 Dun & Bradstreet Corp. 672,000
6,500 EG&G, Inc. 127,565
---------------
799,565
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(0.9%)
4,200 Ball Corp. 161,700
6,400 Crane Co. 269,600
18,000 Crown Cork & Seal Co., Inc. 878,625
78,100 Gillette Co.(c) 7,209,605
15,600 Parker-Hannifin Corp. 694,200
8,500 Snap-On, Inc. 373,470
12,500 Stanley Works 550,780
---------------
10,137,980
---------------
FOOD STORES (0.4%)
34,100 Albertson's, Inc. 1,513,190
38,200 American Stores Co. 756,840
8,400 Giant Food, Inc., Class A 283,500
5,400 Great Atlantic & Pacific Tea Co. 166,725
35,600 Kroger Co.(a)(c) 1,225,980
20,900 Winn-Dixie Stores, Inc.(c) 845,145
---------------
4,791,380
---------------
FOOD & KINDRED PRODUCTS (7.4%)
5,200 Adolph Coors Co. 187,200
69,100 Anheuser-Busch Cos., Inc. 2,984,260
78,500 Archer Daniels Midland Co. 1,677,935
9,700 Brown-Forman Corp. 498,340
20,100 CPC International, Inc. 2,077,840
64,500 Campbell Soup Co. 3,612,000
347,400 Coca-Cola Co. 21,712,500
67,000 Conagra, Inc.(c) 2,407,815
22,600 General Mills, Inc. 1,672,400
51,500 Heinz (H.J.) Co. 2,578,220
20,000 Hershey Foods Corp.(c) 1,227,500
58,100 Kellogg Co.(c) 2,694,385
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
134
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
FOOD & KINDRED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
214,700 PepsiCo, Inc. $ 7,917,065
189,800 Procter & Gamble Co.(c) 14,484,115
19,100 Quaker Oats Co. 1,012,300
14,900 Ralston-Ralston Purina Group 1,385,700
67,300 Sara Lee Corp. 3,558,490
52,000 Seagram Co. Ltd. 1,680,250
89,600 Unilever N.V.(c) 5,202,400
14,200 Whitman Corp. 373,640
16,300 Wrigley (Wm) Jr. Co. 1,289,740
---------------
80,234,095
---------------
FURNITURE & FIXTURES (0.1%)
23,900 Masco Corp.(c) 1,126,290
---------------
GENERAL MERCHANDISE STORES (2.5%)
29,600 Costco Cos., Inc.(a) 1,311,650
30,400 Dayton Hudson Corp. 2,019,700
15,900 Dilliards, Inc. 581,345
29,100 Federated Department Stores, Inc.(a)(c) 1,325,865
9,900 Harcourt General, Inc. 542,025
34,600 J.C. Penney Co., Inc. 2,223,050
68,000 KMart Corp.(a)(c) 854,250
32,200 May Department Stores Co. 1,730,750
5,200 Mercantile Stores Co., Inc. 336,050
54,900 Sears Roebuck and Co. 2,515,105
317,500 Wal-Mart Stores, Inc.(c) 12,680,155
18,800 Woolworth Corp.(a) 406,550
---------------
26,526,495
---------------
HEALTH SERVICES (0.5%)
15,400 Beverly Enterprises, Inc.(a)(c) 261,800
87,800 Columbia/HCA Healthcare Corp.(c) 2,590,100
48,100 HEALTHSOUTH Corp.(a)(c) 1,262,625
8,900 Manor Care, Inc. 313,725
42,200 Tenet Healthcare Corp.(a)(c) 1,337,215
---------------
5,765,465
---------------
HEAVY CONSTRUCTION OTHER THAN BUILDING CONSTRUCTION-- CONTRACTORS (0.2%)
11,800 Fluor Corp.(c) 424,060
5,700 Foster Wheeler Corp. 175,630
35,400 Halliburton Co. 1,909,390
---------------
2,509,080
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
HOLDING & OTHER INVESTMENT OFFICES (0.1%)
25,700 Conseco Inc.(c) $ 1,196,655
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.0%)
13,700 Circuit City Stores(c) 449,530
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.4%)
22,200 HFS Inc.(a) 1,523,475
35,000 Hilton Hotels Corp.(c) 1,089,375
16,300 ITT Corp.(a) 1,236,765
24,800 Mirage Resorts, Inc.(a) 589,000
---------------
4,438,615
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (6.7%)
17,700 Apple Computer, Inc.(a)(c) 314,175
50,800 Applied Materials, Inc.(a)(c) 1,676,400
23,100 Baker Hughes, Inc.(c) 967,315
27,900 Bay Networks, Inc.(a) 838,740
13,200 Black & Decker Corp.(c) 485,100
3,600 Briggs & Stratton Corp. 184,050
13,900 Brunswick Corp. 464,780
10,400 Case Corp.(c) 644,800
52,900 Caterpillar, Inc.(c) 2,535,895
5,600 Cincinnati Milacron, Inc. 165,550
95,700 Cisco Systems, Inc.(a) 8,254,125
107,200 Compaq Computer Corp.(a)(c) 6,693,300
5,400 Cummins Engine Co., Inc.(c) 347,625
6,600 Data General Corp.(a) 118,385
35,800 Deere & Co. 1,962,285
46,300 Dell Computer Corp.(a)(c) 3,897,880
21,400 Digital Equipment Corp.(a)(c) 1,053,950
15,700 Dover Corp. 1,052,880
24,700 Dresser Industries, Inc. 923,165
69,000 EMC Corp.(a)(c) 2,091,565
7,000 General Signal Corp. 285,685
6,900 Harnischfeger Industries, Inc. 263,490
150,700 Hewlett-Packard Co. 9,202,120
137,800 IBM Corp.(c) 15,097,715
24,000 Ingersoll-Rand Co.(c) 981,000
7,700 McDermott International, Inc.(c) 242,550
17,700 Pall Corp. 373,915
20,400 Pitney Bowes, Inc. 1,714,875
34,400 Seagate Technology, Inc.(a) 780,450
24,800 Silicon Graphics, Inc.(a)(c) 325,500
15,200 Tandy Corp. 653,600
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
135
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
24,000 Tenneco, Inc. $ 1,039,500
8,800 Timken Co. 311,850
74,600 Tyco International Ltd.(c) 2,928,050
7,500 UNOVA, Inc.(a) 126,565
24,500 Unisys Corp.(a)(c) 350,655
99,300 Westinghouse Electric Corp.(c) 2,979,000
---------------
72,328,485
---------------
INSURANCE AGENTS, BROKERS & SERVICE (0.3%)
23,800 Aon Corp.(c) 1,259,910
22,800 Humana, Inc.(a) 505,875
24,300 Marsh & McLennan Cos., Inc. 1,808,830
---------------
3,574,615
---------------
INSURANCE CARRIERS (4.3%)
21,100 Aetna Life & Casualty, Inc. 1,590,415
60,700 Allstate Corp.(c) 5,212,615
35,500 American General Corp.(c) 1,912,560
98,701 American International Group, Inc. 9,950,195
10,400 CIGNA Corp. 1,739,400
24,500 Chubb Corp. 1,737,970
11,100 General Re Corp. 2,203,350
16,500 Hartford Financial Services Group, Inc. 1,381,875
9,900 Jefferson-Pilot Corp. 755,495
14,500 Lincoln National Corp. 1,034,940
16,100 Loews Corp.(c) 1,708,615
13,000 MBIA, Inc.(c) 817,375
15,600 MGIC Investment Corp.(c) 911,625
10,000 Progressive Corp. 1,020,000
13,100 Providian Corp. 577,220
17,700 Safeco Corp.(c) 865,090
11,700 St. Paul Cos., Inc.(c) 936,000
27,400 SunAmerica, Inc.(c) 1,109,700
19,600 Torchmark Corp. 799,930
160,447 Travelers Group, Inc.(c) 8,102,450
15,500 USF&G Corp.(c) 312,905
26,100 United Healthcare Corp.(c) 1,358,830
19,600 Unum Corp. 929,775
---------------
46,968,330
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.0%)
15,300 Louisiana-Pacific Corp. 308,870
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (1.9%)
8,000 Bard (C.R.), Inc.(c) $ 239,500
7,800 Bausch & Lomb, Inc.(c) 309,075
17,100 Becton, Dickinson & Co.(c) 881,720
15,600 Biomet, Inc.(c) 372,450
27,300 Boston Scientific Corp.(a) 1,233,620
45,700 Eastman Kodak Co. 2,770,565
20,800 Guidant Corp. 1,336,400
17,800 Honeywell, Inc. 1,165,900
11,700 Johnson Controls, Inc. 536,010
11,700 KLA-Tencor Corp.(a)(c) 453,375
65,300 Medtronic, Inc. 3,118,075
6,100 Millipore Corp. 236,375
6,100 Perkin-Elmer Corp.(c) 424,330
6,300 Polaroid Corp.(c) 267,750
33,100 Raytheon Co.(c) 1,851,530
12,800 St. Jude Medical, Inc.(a)(c) 379,200
7,050 Tektronix, Inc. 295,660
21,000 Thermo Electron Corp.(a)(c) 773,060
10,200 U.S. Surgical Corp. 269,025
45,400 Xerox Corp.(c) 3,527,010
---------------
20,440,630
---------------
METAL MINING (0.3%)
52,200 Barrick Gold Corp.(c) 864,560
32,200 Battle Mountain Gold Co. 163,010
13,100 Cyprus Amax Minerals Co.(c) 239,895
19,500 Echo Bay Mines Ltd. 45,090
28,100 Freeport McMoran Inc., Class B 588,340
20,600 Homestake Mining Co.(c) 216,300
21,900 Newmont Mining Corp.(c) 658,370
33,600 Placer Dome, Inc. 411,600
---------------
3,187,165
---------------
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.3%)
17,900 Hasbro, Inc.(c) 520,215
16,600 ITT Industries, Inc. 527,050
5,400 Jostens, Inc. 129,600
40,901 Mattel, Inc.(c) 1,638,575
1,100 NACCO Industries, Inc. 119,765
---------------
2,935,205
---------------
MISCELLANEOUS RETAIL (0.5%)
5,500 Longs Drug Stores, Inc. 160,875
17,200 Rite Aid Corp.(c) 1,130,900
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
136
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
MISCELLANEOUS RETAIL (continued)
<TABLE>
<C> <S> <C>
40,000 Toys "R" Us, Inc.(a)(c) $ 1,365,000
69,000 Walgreen Co.(c) 2,220,940
---------------
4,877,715
---------------
MOTION PICTURES (0.1%)
30,300 Unicom Corp.(c) 882,490
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (0.0%)
5,500 Caliber System, Inc. 293,905
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.2%)
65,900 American Express Co. 5,197,865
7,500 Beneficial Corp. 582,190
15,600 Countrywide Credit Industries, Inc. 638,625
97,400 FHLMC(c) 4,017,750
148,700 Fannie Mae 7,853,215
19,000 Green Tree Financial Corp.(c) 581,875
14,900 Household International, Inc. 1,877,400
70,200 MBNA Corp.(c) 1,864,685
8,600 Transamerica Corp. 933,635
---------------
23,547,240
---------------
OIL & GAS EXTRACTION (1.1%)
8,400 Anadarko Petroleum Corp. 546,000
12,600 Apache Corp.(c) 463,050
24,820 Burlington Resources, Inc. 1,104,490
3,500 Helmerich & Payne, Inc. 266,220
46,200 Occidental Petroleum Corp.(c) 1,371,565
14,800 Oryx Energy Co.(a) 399,600
12,000 Rowan Cos., Inc.(a) 408,000
69,200 Schlumberger Ltd. 5,696,030
35,600 Union Pacific Resources Group, Inc. 885,550
7,500 Western Atlas, Inc.(a) 521,715
---------------
11,662,220
---------------
PAPER & ALLIED PRODUCTS (1.9%)
14,500 Avery Dennison Corp. 607,185
7,400 Bemis Co., Inc.(c) 311,725
6,900 Boise Cascade Corp. 232,440
13,400 Champion International Corp. 717,740
26,500 Fort James Corp.(c) 1,036,815
12,800 Georgia Pacific Corp.(c) 1,092,805
18,600 IKON Office Solutions, Inc. 566,140
42,200 International Paper Co.(c) 2,001,860
78,400 Kimberly-Clark Corp.(c) 4,081,705
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
PAPER & ALLIED PRODUCTS (continued)
<TABLE>
<C> <S> <C>
7,300 Mead Corp. $ 471,305
58,300 Minnesota Mining & Manufacturing Co. 5,680,605
13,900 Stone Container Corp. 173,750
8,300 Temple-Inland, Inc.(c) 474,140
9,700 Union Camp Corp. 582,605
14,300 Westvaco Corp.(c) 466,535
27,800 Weyerhaeuser Co.(c) 1,468,185
15,600 Willamette Industries 547,950
---------------
20,513,490
---------------
PERSONAL SERVICES (0.2%)
14,600 H & R Block, Inc. 598,600
35,200 Service Corp. International 1,287,000
---------------
1,885,600
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (6.8%)
13,000 Amerada Hess Corp. 728,000
69,200 Amoco Corp.(c) 6,228,000
10,400 Ashland, Inc. 485,550
45,100 Atlantic Richfield Co. 3,675,650
91,600 Chevron Corp.(c) 7,345,175
347,900 Exxon Corp. 21,221,900
6,700 Kerr-McGee Corp. 444,295
110,200 Mobil Corp. 7,927,515
6,600 Pennzoil Co. 439,725
36,900 Phillips Petroleum Co.(c) 1,787,345
300,500 Royal Dutch Petroleum Co.(c) 15,832,590
10,200 Sun Co., Inc.(c) 412,465
73,800 Texaco, Inc.(c) 4,169,700
40,300 USX-Marathon Group, Inc.(c) 1,380,275
35,000 Unocal Corp.(c) 1,393,435
---------------
73,471,620
---------------
PHARMACEUTICAL PREPARATIONS (0.7%)
92,600 American Home Products Corp. 6,470,425
37,100 Amgen, Inc.(a) 1,896,740
---------------
8,367,165
---------------
PRIMARY METAL INDUSTRIES (0.6%)
31,800 Alcan Aluminum Ltd. 856,610
24,700 Allegheny Teledyne, Inc.(c) 636,025
24,300 Aluminum Co. of America(c) 1,634,175
15,000 Armco, Inc.(a) 79,690
6,000 Asarco, Inc. 149,255
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
137
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
PRIMARY METAL INDUSTRIES (continued)
<TABLE>
<C> <S> <C>
15,700 Bethlehem Steel Corp.(a) $ 160,925
20,200 Engelhard Corp. 359,810
23,300 Inco Ltd.(c) 444,155
6,900 Inland Steel Industries, Inc.(c) 131,965
12,300 Nucor Corp. 615,000
8,700 Phelps Dodge Corp. 576,375
10,200 Reynolds Metals Co. 580,765
12,000 USX-US Steel Group, Inc.(c) 375,750
13,500 Worthington Industries, Inc. 244,690
---------------
6,845,190
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.4%)
10,500 American Greetings Corp. 385,875
11,500 Deluxe Corp. 406,095
13,400 Dow Jones & Co., Inc. 677,540
39,600 Gannett Co., Inc. 2,299,275
4,300 John H. Harland Co. 88,960
11,900 Knight-Ridder, Inc. 596,485
14,000 McGraw-Hill Cos., Inc.(c) 958,125
7,500 Meredith Corp. 261,560
12,600 Moore Corp. Ltd. 196,085
13,400 New York Times Co.(c) 795,625
20,500 R.R. Donnelley & Sons Co.(c) 722,625
78,300 Time Warner, Inc.(c) 4,560,975
13,400 Times Mirror Co.(c) 795,625
17,200 Tribune Co. 969,650
49,400 Viacom, Inc., Class B(a)(c) 1,729,000
---------------
15,443,500
---------------
RAILROAD TRANSPORTATION (0.7%)
21,600 Burlington Northern Santa Fe Corp.(c) 1,976,400
30,500 CSX Corp. 1,595,530
52,800 Norfolk Southern Corp.(c) 1,679,700
34,600 Union Pacific Corp. 2,076,000
---------------
7,327,630
---------------
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (0.6%)
5,700 Armstrong World Industries(c) 392,945
11,000 Cooper Tire and Rubber Co. 246,130
21,900 Goodyear Tire & Rubber Co.(c) 1,329,055
34,900 Illinois Tool Works, Inc.(c) 1,912,960
40,500 Nike, Inc., Class B(c) 1,971,845
7,900 Reebok International Ltd.(a) 310,565
21,000 Rubbermaid, Inc. 509,250
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (continued)
<TABLE>
<C> <S> <C>
8,600 Tupperware Corp. $ 205,325
---------------
6,878,075
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (0.9%)
36,750 Charles Schwab Corp. 1,417,170
46,400 Merrill Lynch & Co. Inc.(c) 3,256,700
85,200 Morgan Stanley, Dean Witter, Discover &
Co. 4,627,430
---------------
9,301,300
---------------
STONE, CLAY, GLASS, & CONCRETE PRODUCTS (0.3%)
32,100 Corning, Inc. 1,362,240
22,300 Newell Co. 910,115
7,500 Owens-Corning Corp. 275,625
20,200 Owens-Illinois, Inc. (a) 684,270
---------------
3,232,250
---------------
TEXTILE MILL PRODUCTS (0.1%)
10,700 Fruit of the Loom, Inc.(a)(c) 249,440
5,100 Russell Corp. 155,870
2,800 Springs Industries, Inc., Class A 141,220
---------------
546,530
---------------
TOBACCO PRODUCTS (1.5%)
24,100 Fortune Brands, Inc. 872,115
340,300 Philip Morris Cos., Inc. 14,803,050
25,700 UST, Inc. 793,490
---------------
16,468,655
---------------
TRANSPORTATION BY AIR (0.5%)
12,800 AMR Corp.(a) 1,551,200
10,300 Delta Airlines, Inc.(c) 1,147,805
16,000 Federal Express Corp.(a)(c) 1,073,000
30,600 Southwest Airlines Co. 747,790
13,000 U.S. Air Group, Inc.(a) 716,625
---------------
5,236,420
---------------
TRANSPORTATION EQUIPMENT (3.8%)
79,400 Allied Signal, Inc. 2,947,725
143,101 Boeing Co. 7,602,230
93,700 Chrysler Corp.(c) 3,215,080
15,000 Dana Corp. 701,250
10,800 Eaton Corp. 1,019,925
8,700 Echlin, Inc. 275,680
5,000 Fleetwood Enterprises, Inc. 178,440
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
138
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
TRANSPORTATION EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
166,700 Ford Motor Co.(c) $ 7,168,100
8,800 General Dynamics Corp.(c) 762,300
102,200 General Motors Corp.(c) 6,234,200
27,100 Lockheed Martin Corp.(c) 2,643,940
10,300 Navistar International Corp.(a) 226,600
9,300 Northrop Grumman Corp. 1,048,575
10,900 Paccar, Inc. 599,500
29,000 Rockwell International Corp. 1,413,750
17,200 TRW, Inc. 976,100
23,100 Textron, Inc.(c) 1,365,785
33,200 United Technologies Corp. 2,487,925
---------------
40,867,105
---------------
WHOLESALE TRADE--DURABLE GOODS (0.2%)
25,200 Genuine Parts Co.(c) 806,400
6,800 Grainger (W.W.), Inc.(c) 636,650
4,000 Potlatch Corp. 194,500
---------------
1,637,550
---------------
WHOLESALE TRADE--NONDURABLE GOODS (0.3%)
15,200 Cardinal Health, Inc.(c) 1,151,400
5,300 Fleming Cos., Inc. 88,115
14,000 Sigma Aldrich 505,750
8,400 Supervalu, Inc.(c) 330,220
24,400 Sysco Corp. 1,087,325
---------------
3,162,810
---------------
TOTAL COMMON STOCK (COST $667,616,075) 1,039,238,530
---------------
COMMERCIAL PAPER (1.1%)
11,870,000 Bear Stearns Cos., Inc., 5.78%, 12/1/97
(cost $11,870,000) 11,870,000
---------------
TIME DEPOSITS (3.0%)
8,100,000 Den Danske Bank New York, Grand Cayman
Branch, 5.66%, 12/1/97 8,100,000
2,400,000 Norddeutsche Landesbank Girozentrale,
5.66%, 12/1/97 2,400,000
22,000,000 Union Bank of Switzerland, 5.59%,
12/2/97 22,000,000
---------------
TOTAL TIME DEPOSITS (COST $32,500,000) 32,500,000
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
INDEX PORTFOLIO (continued)
- ----------------------------------------------------
U.S. TREASURY BILLS (0.3%)
2,765,000 5.33% yield, 1/22/98 (cost
$2,744,556)(f) $ 2,744,473
---------------
TOTAL INVESTMENTS (100.0%) (COST $714,730,631)
$ 1,086,353,003
---------------
---------------
FINANCIAL INSTRUMENTS (0.0%)
FINANCIAL FUTURES CONTRACTS (0.0%)
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
POSITION CONTRACTS INDEX APPRECIATION
- --------- ------------- ----------------------------------- ------------
<S> <C> <C> <C>
Long 70 S&P 500 Futures,
Expiring December 1, 1997 $ 600,300
Long 126 S&P 500 Futures, Expiring March 1,
1998 (91,175)
------------
$ 509,125
------------
------------
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
INCOME EQUITY PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (99.3%)
BUSINESS SERVICES (1.6%)
608,900 Cognizant Corp. $ 26,106,587
---------------
CHEMICALS & ALLIED PRODUCTS (4.7%)
845,200 E.I. du Pont de Nemours & Co.(c) 51,187,425
742,000 Morton International, Inc. 25,274,375
---------------
76,461,800
---------------
COMMUNICATIONS (6.2%)
1,113,200 AT&T Corp.(c) 62,200,050
782,600 GTE Corp. 39,570,212
---------------
101,770,262
---------------
DEPOSITORY INSTITUTIONS (4.8%)
349,450 J.P. Morgan & Co., Inc.(c) 39,902,821
355,950 U.S. Bancorp(c) 38,286,871
---------------
78,189,692
---------------
EATING & DRINKING PLACES (2.0%)
602,750 McDonald's Corp. 29,233,374
91,564 Tricon Global Restaurants, Inc. (a) 3,096,007
---------------
32,329,381
---------------
ELECTRIC, GAS & SANITARY SERVICES (7.8%)
493,000 Consolidated Natural Gas Co.(c) 29,764,875
274,150 FPL Group, Inc.(c) 15,335,265
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
139
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
ELECTRIC, GAS & SANITARY SERVICES (continued)
<TABLE>
<C> <S> <C>
740,600 Pacific Gas & Electric Co.(c) $ 20,921,951
604,100 Public Service Enterprise Group, Inc. 17,632,168
526,350 Texas Utilities Co. 21,054,000
937,700 Waste Management, Inc.(c) 23,090,862
---------------
127,799,121
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (11.1%)
1,008,800 AMP, Inc.(c) 43,819,750
513,200 Emerson Electric Co.(c) 28,226,000
536,600 General Electric Co.(c) 39,574,250
567,600 Honeywell, Inc. 37,177,800
391,574 Lucent Technologies, Inc.(c) 31,374,787
---------------
180,172,587
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (2.7%)
1,563,600 Dun & Bradstreet Corp. 43,780,800
---------------
FOOD & KINDRED PRODUCTS (7.5%)
915,640 PepsiCo, Inc.(c) 33,764,224
554,800 Procter & Gamble Co.(c) 42,338,178
877,250 Sara Lee Corp.(c) 46,384,593
---------------
122,486,995
---------------
GENERAL MERCHANDISE STORES (7.8%)
482,900 Dayton Hudson Corp.(c) 32,082,668
538,400 J.C. Penney Co., Inc.(c) 34,592,201
729,500 May Department Stores Co.(c) 39,210,624
473,830 Sears, Roebuck & Co. 21,707,336
---------------
127,592,829
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.4%)
901,800 Hewlett-Packard Co.(c) 55,066,164
---------------
INSURANCE CARRIERS (2.3%)
686,750 American General Corp.(c) 36,998,658
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (1.6%)
444,050 Eastman Kodak Co. 26,920,531
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (5.1%)
412,300 American Express Co.(c) 32,520,164
470,900 Transamerica Corp.(c) 51,122,081
---------------
83,642,245
---------------
- ----------------------------------------------------
INCOME EQUITY PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
OIL & GAS EXTRACTION (2.0%)
395,100 Schlumberger Ltd.(c) $ 32,521,668
---------------
PAPER & ALLIED PRODUCTS (2.7%)
452,150 Minnesota Mining & Manufacturing Co. 44,056,365
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (9.7%)
538,200 Atlantic Richfield Co. 43,863,300
458,750 Chevron Corp.(c) 36,786,015
524,700 Exxon Corp. 32,006,700
301,499 Mobil Corp.(c) 21,689,159
440,602 Royal Dutch Petroleum Co. ADR(c) 23,214,112
---------------
157,559,286
---------------
PHARMACEUTICAL PREPARATIONS (8.0%)
461,450 American Home Products Corp. 32,243,820
520,750 Johnson & Johnson(c) 32,774,703
287,400 Merck & Co., Inc. 27,177,262
530,400 Pfizer, Inc. 38,586,600
---------------
130,782,385
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.5%)
678,800 Deluxe Corp. 23,976,309
---------------
TOBACCO PRODUCTS (5.1%)
1,336,600 Fortune Brands, Inc. 48,368,212
794,450 Philip Morris Cos., Inc. 34,558,575
---------------
82,926,787
---------------
TRANSPORTATION EQUIPMENT (1.7%)
369,300 United Technologies Corp. 27,674,416
---------------
TOTAL COMMON STOCK (COST $1,035,486,336) 1,618,814,868
---------------
REPURCHASE AGREEMENTS (0.7%)
11,321,466 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$11,326,863 (cost $11,321,466)(e) 11,321,466
---------------
TOTAL INVESTMENTS (100.0%) (COST $1,046,807,802)
$ 1,630,136,334
---------------
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
140
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (99.4%)
AMUSEMENT & RECREATION SERVICES (2.2%)
211,980 Walt Disney Co.(c) $ 20,124,851
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(1.6%)
380,600 Cintas Corp.(c) 14,795,825
---------------
BUILDING MATERIALS, HARDWARE, GARDEN SUPPLY & MOBILE HOME DEALERS (4.1%)
71,400 Fastenal Co.(c) 3,784,200
605,289 Home Depot, Inc.(c) 33,858,353
---------------
37,642,553
---------------
BUSINESS SERVICES (15.7%)
211,700 DST Systems, Inc.(a) 7,846,131
854,600 First Data Corp.(c) 24,195,862
268,250 Fiserv, Inc.(a)(c) 13,010,125
458,200 HBO & Co.(c) 20,561,725
500,940 Microsoft Corp.(a) 70,883,010
350,500 Sungard Data Systems, Inc.(a)(c) 9,069,188
---------------
145,566,041
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (16.0%)
820,500 Intel Corp.(c) 63,691,313
366,600 Molex, Inc., Class A 12,739,315
206,760 Motorola, Inc.(c) 13,000,035
465,200 Solectron Corp.(a)(c) 16,950,725
1,034,400 Telefonaktiebolaget LM Ericsson, Series
B 41,828,550
---------------
148,209,938
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (2.2%)
285,600 Gartner Group, Inc.(a)(c) 8,318,100
306,315 Paychex, Inc.(c) 12,558,751
---------------
20,876,851
---------------
FOOD & KINDRED PRODUCTS (3.3%)
487,000 Coca-Cola Co. 30,437,500
---------------
HOLDING & OTHER INVESTMENT OFFICES (8.1%)
511,650 Franklin Resources, Inc.(c) 45,984,543
440,900 T. Rowe Price(c) 28,658,500
---------------
74,643,043
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (7.3%)
540,800 Cisco Systems, Inc.(a)(c) 46,644,000
- ----------------------------------------------------
LARGE COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (continued)
<TABLE>
<C> <S> <C>
340,400 Hewlett-Packard Co.(c) $ 20,785,675
---------------
67,429,675
---------------
INSURANCE CARRIERS (4.8%)
438,762 American International Group, Inc.(c) 44,232,694
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (5.1%)
977,900 Medtronic, Inc.(c) 46,694,725
---------------
MISCELLANEOUS RETAIL (2.3%)
547,500 Staples, Inc.(a)(c) 15,432,656
230,900 Viking Office Products, Inc.(a)(c) 5,353,993
---------------
20,786,649
---------------
OIL & GAS EXTRACTION (5.2%)
586,100 Schlumberger, Ltd.(c) 48,243,358
---------------
PHARMACEUTICAL PREPARATIONS (8.7%)
326,200 Merck & Co., Inc.(c) 30,846,289
682,500 Pfizer, Inc. 49,651,875
---------------
80,498,164
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (8.4%)
1,652,250 Charles Schwab Corp.(c) 63,714,890
194,000 Donaldson, Lufkin & Jenrette, Inc. 14,137,750
---------------
77,852,640
---------------
TOBACCO PRODUCTS (2.7%)
570,500 Philip Morris Cos., Inc. 24,816,750
---------------
WHOLESALE TRADE-NONDURABLE GOODS (1.7%)
209,100 Cardinal Health, Inc.(c) 15,839,324
---------------
TOTAL COMMON STOCK (COST $512,492,771) 918,690,581
---------------
REPURCHASE AGREEMENTS (0.6%)
5,130,508 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$5,132,954 (cost $5,130,508)(e) 5,130,508
---------------
TOTAL INVESTMENTS (100.0%) (COST $517,623,279)
$ 923,821,089
---------------
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
141
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (98.5%)
APPAREL & ACCESSORY STORES (2.2%)
134,500 Dress Barn, Inc.(a) $ 3,463,375
105,400 Stage Stores, Inc.(a) 4,439,976
--------------
7,903,351
--------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(1.1%)
121,110 Oshkosh B'Gosh, Inc. 3,936,075
--------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (1.5%)
200,200 Service Experts, Inc.(a) 5,442,937
--------------
BUSINESS SERVICES (19.1%)
179,400 ACNielson Corp.(a) 4,025,288
495,900 Accelr8 Technology Corp.(a)(c) 10,847,812
118,100 Billing Information Concepts(a) 5,255,450
218,000 Cerner Corp.(a) 5,245,626
141,400 Ciber, Inc.(a)(c) 6,221,600
156,300 Computer Horizons Corp.(a) 5,157,900
120,800 Computer Task Group, Inc. 3,805,200
217,500 INSpire Insurance Solutions, Inc.(a) 4,132,500
286,765 Leasing Solutions, Inc.(a) 6,864,438
140,255 Metro Information Services, Inc.(a) 3,611,566
206,800 QuadraMed Corp.(a) 5,402,655
252,835 SEEC, Inc.(a)(c) 4,424,612
221,900 SPR, Inc.(a) 3,522,662
--------------
68,517,309
--------------
CHEMICALS & ALLIED PRODUCTS (1.9%)
352,100 Lifecore Biomedical, Inc.(a) 6,865,950
--------------
COMMUNICATIONS (1.0%)
515,460 General Communications, Inc.(a) 3,511,573
--------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (1.5%)
243,000 Dycom Industries, Inc.(a) 5,467,500
--------------
DEPOSITORY INSTITUTIONS (7.2%)
173,300 Downey Financial Corp. 4,765,750
187,450 Haven Bancorp, Inc. 8,060,350
192,627 Peoples Bank(c) 6,489,054
104,100 Webster Financial Corp.(c) 6,522,520
--------------
25,837,674
--------------
EATING & DRINKING PLACES (3.6%)
235,300 Foodmaker, Inc.(a) 3,647,150
- ----------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
EATING & DRINKING PLACES (continued)
<TABLE>
<C> <S> <C>
209,858 Schlotzsky's, Inc.(a) $ 3,646,284
256,400 Showbiz Pizza Time, Inc.(a) 5,512,600
--------------
12,806,034
--------------
ELECTRIC, GAS & SANITARY SERVICES (2.2%)
158,300 KCS Energy, Inc. 3,759,625
187,015 Western Gas Resources, Inc.(c) 4,277,968
--------------
8,037,593
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (8.4%)
142,400 Exar Corp.(a) 3,564,459
170,300 Inter-Tel, Inc. 3,576,300
178,910 Orbital Sciences Corp.(a)(c) 4,584,568
237,700 Plexus Corp.(a) 6,328,762
220,900 Power-One, Inc.(a) 3,617,237
73,050 Rayovac Corp.(a)(c) 1,223,588
252,465 STB Systems, Inc.(a)(c) 7,068,880
--------------
29,963,794
--------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (1.1%)
160,150 Tetra Technologies, Inc.(a) 4,093,834
--------------
HEALTH SERVICES (2.3%)
298,020 Graham-Field Health Products, Inc.(a)(c) 4,451,674
293,300 Specialty Care Network, Inc.(a) 3,647,918
--------------
8,099,592
--------------
HOLDING & OTHER INVESTMENT OFFICES (1.1%)
182,900 Consolidated Capital Corp.(a) 3,760,882
--------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.7%)
479,300 Bombay Co., Inc.(a) 2,486,368
--------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (2.5%)
308,750 CHS Electronics, Inc.(a)(c) 5,827,656
296,835 Middleby Corp.(a)(c) 3,079,664
--------------
8,907,320
--------------
INSURANCE CARRIERS (3.4%)
216,375 FPA Medical Management, Inc.(a)(c) 5,585,179
250,535 Trigon Healthcare, Inc.(a) 6,420,488
--------------
12,005,667
--------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
142
<PAGE>
SCHEDULES OF INVESTMENTS (unaudited) (continued) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO (continued)
- ----------------------------------------------------
COMMON STOCKS (continued)
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (4.1%)
42,825 Cyberonics, Inc.(a) $ 480,535
194,325 Integrated Circuit Systems, Inc.(a) 5,465,390
127,975 OYO Geospace Corp.(a) 2,039,602
311,600 Zygo Corp.(a)(c) 6,660,450
---------------
14,645,977
---------------
MISCELLANEOUS MANUFACTURING (0.1%)
70,120 Racing Champions Corp.(a)(c) 517,135
---------------
MISCELLANEOUS RETAIL (1.0%)
184,200 Funco, Inc.(a) 3,407,701
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (2.8%)
231,750 Covenant Transportation, Inc.(a) 3,708,000
223,265 Jevic Transportation, Inc.(a) 3,683,873
115,150 Simon Transportation Services(a) 2,677,237
---------------
10,069,110
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (5.9%)
203,100 American Capital Strategies, Ltd.(a) 3,757,351
206,880 Franchise Mortgage Acceptance Co.
LLC(a)(c) 3,620,401
307,700 Imperial Credit Industries, Inc.(a) 7,365,568
305,325 Medallion Financial Corp. 6,564,487
---------------
21,307,807
---------------
OIL & GAS EXTRACTION (11.4%)
1,196,165 Abacan Resource Corp.(a) 2,766,131
99,920 Atwood Oceanics, Inc.(a)(c) 4,927,305
280,300 Basin Exploration, Inc.(a) 5,185,550
209,000 Cabot Oil and Gas Corp.(a) 4,336,751
168,800 Callon Petroleum Co.(a) 2,996,200
108,600 Forcenergy, Inc.(c) 3,373,387
172,115 Houston Exploration Co.(a) 3,700,472
204,200 IRI International Corp.(a)(c) 3,292,726
719,160 National Energy Group(a) 3,101,377
171,900 Snyder Oil Corp. 3,416,512
52,600 Stone Energy Corp.(a) 1,510,191
191,420 Unit Corp. 2,095,851
---------------
40,702,453
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SMALL COMPANY STOCK PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCKS (continued)
<TABLE>
<C> <S> <C>
PAPER & ALLIED PRODUCTS (2.4%)
200,200 Ivex Packaging Corp.(a) $ 4,004,000
140,400 Mail-Well, Inc.(a)(c) 4,580,550
---------------
8,584,550
---------------
PRIMARY METAL INDUSTRIES (3.0%)
185,285 NS Group, Inc. 3,474,093
231,200 Titanium Metals Corp.(a)(c) 7,138,300
---------------
10,612,393
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.8%)
219,750 Valassis Communications, Inc.(a) 6,606,236
---------------
REAL ESTATE INVESTMENT TRUST (0.9%)
218,250 Imperial Credit Commercial Mortgage
Investment Corp.(a)(c) 3,410,151
---------------
WHOLESALE TRADE-DURABLE GOODS (4.3%)
170,962 CellStar Corp.(a)(c) 4,423,459
253,925 Keystone Automotive Industries,
Inc.(a)(c) 5,887,886
154,705 Spine-Tech, Inc.(a)(c) 5,095,597
---------------
15,406,942
---------------
TOTAL COMMON STOCK (COST $334,583,801) 352,913,908
---------------
REPURCHASE AGREEMENTS (1.5%)
5,233,129 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$5,235,623 (cost $5,233,129)(e) 5,233,129
---------------
TOTAL INVESTMENTS (100.0%) (COST $339,816,930)
$ 358,147,037
---------------
---------------
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (97.0%)
APPAREL & ACCESSORY STORES (2.6%)
412,700 Claire's Stores, Inc. $ 9,337,338
330,000 Stage Stores, Inc.(a) 13,901,251
---------------
23,238,589
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(2.3%)
336,900 Nautica Enterprises, Inc.(a) 9,454,257
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
143
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(continued)
<TABLE>
<C> <S> <C>
383,000 Warnaco Group, Inc. Class A $ 11,250,625
---------------
20,704,882
---------------
BUSINESS SERVICES (9.0%)
329,200 Autodesk, Inc. 12,653,623
369,800 GTECH Holdings Corp.(a) 11,902,937
56,700 Healthcare Recoveries, Inc.(a) 1,148,175
349,100 Ivex Packaging Corp.(a) 6,982,000
566,900 Platinum Technology, Inc.(a) 14,739,400
454,200 Select Appointments Holdings Public Ltd.
Co. 8,743,350
709,100 Symantec Corp.(a) 17,727,500
552,900 System Software Associates, Inc.(a) 7,325,925
---------------
81,222,910
---------------
CHEMICALS & ALLIED PRODUCTS (6.4%)
284,600 Biovail Corp. International(a) 8,787,025
249,144 Elan Corp. plc ADR(a) 13,142,346
636,800 Genzyme Corp.(a) 17,074,200
190,000 North American Vaccine, Inc.(a) 4,750,000
392,200 Sepracor, Inc.(a) 14,462,375
---------------
58,215,946
---------------
COMMUNICATIONS (2.3%)
75,700 Commnet Cellular, Inc.(a) 2,673,156
400,000 Electric Lightwave, Inc.(a) 6,400,000
352,000 General Cable Corp. 12,012,001
---------------
21,085,157
---------------
CONSTRUCTION-SPECIAL TRADE CONTRACTORS (1.1%)
447,900 Apogee Enterprises, Inc. 9,909,787
---------------
DEPOSITORY INSTITUTIONS (1.2%)
446,200 Dime Bancorp, Inc. 10,820,350
---------------
EATING & DRINKING PLACES (0.9%)
501,900 Foodmaker, Inc.(a) 7,779,450
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (3.0%)
333,400 American Power Conversion Corp.(a) 10,127,025
579,900 Cypress Semiconductor Corp.(a) 6,342,657
244,900 Legato Systems, Inc.(a) 9,336,812
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER EQUIPMENT
(continued)
<TABLE>
<C> <S> <C>
31,200 STB Systems, Inc.(a) $ 873,600
---------------
26,680,094
---------------
FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & TRANSPORTATION EQUIPMENT
(1.9%)
311,000 Hexcel Corp.(a) 7,872,189
228,100 Tower Automotive, Inc.(a) 9,038,462
---------------
16,910,651
---------------
FOOD STORES (1.3%)
209,600 Dominick's Supermarkets, Inc.(a) 8,148,200
67,300 Whole Foods Market, Inc.(a) 3,822,746
---------------
11,970,946
---------------
FURNITURE & FIXTURES (0.7%)
331,200 Furniture Brands International, Inc.(a) 6,479,101
---------------
HEALTH SERVICES (3.2%)
104,700 Axogen Ltd.(a) 4,201,088
93,400 Genesis Health Ventures, Inc.(a) 2,264,950
555,004 Quorum Health Group, Inc.(a) 13,320,000
335,833 Total Renal Care Holdings, Inc.(a) 8,689,680
---------------
28,475,718
---------------
HOLDING & OTHER INVESTMENT OFFICES (0.8%)
354,600 Consolidated Capital Corp.(a) 7,291,462
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (0.8%)
241,500 Inacom Corp.(a) 6,852,562
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (1.3%)
323,800 Interstate Hotels Co.(a) 11,980,600
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.3%)
173,300 Applied Power, Inc. 10,571,300
555,000 FSI International, Inc.(a) 8,429,062
285,800 Pentair, Inc. 10,788,950
---------------
29,789,312
---------------
INSURANCE CARRIERS (5.6%)
395,600 Amerin Corp.(a) 9,247,151
355,900 Everest Reinsurance Holdings, Inc. 13,501,956
432,750 First Alliance Corp.(a) 9,087,750
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
144
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
INSURANCE CARRIERS (continued)
<TABLE>
<C> <S> <C>
447,100 HCC Insurance Holdings, Inc. $ 8,383,125
296,900 UICI(a) 10,651,288
---------------
50,871,270
---------------
MEASURING, ANALYZING & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (3.2%)
405,900 Danka Business Systems plc 14,916,825
299,200 Heartport, Inc.(a) 6,732,000
181,100 Mentor Corp. 6,157,400
22,100 Spine-Tech, Inc.(a) 727,918
---------------
28,534,143
---------------
METAL MINING (0.2%)
134,100 Metals USA, Inc.(a) 1,910,925
---------------
MISCELLANEOUS RETAIL (3.8%)
463,400 Borders Group, Inc.(a) 13,235,862
386,900 Petco Animal Supplies, Inc.(a) 11,413,550
450,000 West Marine, Inc.(a) 9,450,000
---------------
34,099,412
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (1.8%)
270,500 Swift Transportation, Inc.(a) 7,506,375
274,900 USFreightways Corp. 8,453,175
---------------
15,959,550
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.4%)
415,000 American Capital Strategies, Ltd.(a) 7,677,500
93,600 IMC Mortgage Co.(a) 1,251,901
516,200 Ocwen Financial Corp.(a) 12,517,850
---------------
21,447,251
---------------
OIL & GAS EXTRACTION (9.5%)
217,100 Apache Corp. 7,978,425
236,600 Bayard Drilling Technologies, Inc.(a) 4,347,525
177,000 Cooper Cameron Corp.(a) 10,785,938
186,600 Core Laboratories NV(a) 6,764,250
199,900 Dawson Production Services, Inc.(a) 4,197,900
1,277,400 Grey Wolf, Inc.(a) 7,903,911
207,600 Nabors Industries, Inc. 7,278,975
306,500 Noble Drilling Corp.(a) 9,214,157
181,500 Parker Drilling Co.(a) 2,393,531
68,300 Petsec Energy Limited ADR(a) 1,280,625
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
OIL & GAS EXTRACTION (continued)
<TABLE>
<C> <S> <C>
167,300 Pool Energy Services Co.(a) $ 4,328,888
276,200 Rowan Cos., Inc.(a) 9,390,800
159,700 Stolt Comex Seaway, S.A.(a) 7,945,075
47,100 Veritas DGC, Inc.(a) 1,884,000
---------------
85,694,000
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (1.3%)
292,500 Sun Co., Inc. 11,827,967
---------------
PHARMACEUTICAL PREPARATIONS (6.4%)
514,400 Alkermes, Inc.(a) 10,159,400
269,000 Forest Laboratories, Inc.(a) 12,037,750
230,000 Teva Pharmaceutical Industries Ltd. ADR 11,385,000
400,300 Twinlab Corp.(a) 7,355,513
582,000 Watson Pharmaceuticals, Inc.(a) 17,314,500
---------------
58,252,163
---------------
PRIMARY METAL INDUSTRIES (2.0%)
330,300 Essex International, Inc.(a) 10,672,818
233,200 Titanium Metals Corp.(a) 7,200,051
---------------
17,872,869
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.6%)
486,500 Valassis Communications, Inc. 14,625,404
---------------
REAL ESTATE (1.3%)
456,200 Newhall Land & Farming Co. 12,203,350
---------------
RUBBER & MISCELLANEOUS PLASTIC PRODUCTS (1.5%)
108,800 EVI, Inc.(a) 5,596,400
342,500 Standard Products Co. 8,605,312
---------------
14,201,712
---------------
SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES (1.1%)
342,400 Amresco, Inc.(a) 9,587,198
---------------
TRANSPORTATION EQUIPMENT (5.8%)
578,500 Gulfstream Aerospace Corp.(a) 16,993,437
328,000 Hayes Lemmerz International, Inc.(a) 9,799,001
353,000 Kitty Hawk, Inc.(a) 6,177,500
281,672 LucasVarity plc ADR(a) 8,943,086
375,300 Wabash National Corp. 10,625,680
---------------
52,538,704
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
145
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
TRANSPORTATION SERVICES (2.3%)
318,100 Avis Rent A Car, Inc.(a) $ 10,676,231
187,000 Caliber System, Inc. 9,992,812
---------------
20,669,043
---------------
WHOLESALE TRADE--DURABLE GOODS (5.1%)
318,700 AAR Corp. 12,289,870
298,804 Hughes Supply, Inc. 9,785,702
285,000 Physician Sales & Service, Inc.(a) 6,483,750
253,800 Reliance Steel & Aluminum Co. 7,122,261
262,600 Tech Data Corp.(a) 10,602,475
---------------
46,284,058
---------------
TOTAL COMMON STOCK (COST $710,750,425) 875,986,536
---------------
REPURCHASE AGREEMENTS (3.0%)
10,116,609 BancAmerica Robertson Stephens, 5.75%,
12/1/97, to be repurchased at
$10,121,457(d) 10,116,609
17,399,558 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$17,407,852(e) 17,399,558
---------------
TOTAL REPURCHASE AGREEMENTS
(COST $27,516,167) 27,516,167
---------------
TOTAL INVESTMENTS (100.0%)
(COST $738,266,592) $ 903,502,703
---------------
---------------
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (99.5%)
AMUSEMENT & RECREATION SERVICES (0.9%)
116,400 Jackpot Enterprises, Inc. $ 1,411,350
--------------
APPAREL & ACCESSORY STORES (0.8%)
140,200 Cato Corp. 1,296,850
--------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (5.5%)
52,100 Continental Homes Holding Corp. 1,696,507
52,300 Crossmann Communities, Inc.(a) 1,189,825
162,400 Hovnanian Enterprises, Inc.(a) 1,187,550
138,100 MDC Holdings, Inc. 1,527,729
85,600 NVR, Inc.(a) 1,926,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (continued)
<TABLE>
<C> <S> <C>
168,600 Southern Energy Homes, Inc.(a) $ 1,559,550
---------------
9,087,161
---------------
BUSINESS SERVICES (4.9%)
2,600 Grey Advertising, Inc. 923,000
104,800 Learning Co.(a)(c) 1,899,500
104,400 Leasing Solutions, Inc.(a) 2,499,076
61,500 Network Equipment Technologies, Inc.(a) 895,594
69,000 Ogden Corp. 1,837,125
---------------
8,054,295
---------------
CHEMICALS & ALLIED PRODUCTS (0.7%)
62,200 Mississippi Chemical Corp. 1,212,900
---------------
COAL MINING (0.3%)
34,700 Zeigler Coal Holding Co. 550,863
---------------
DEPOSITORY INSTITUTIONS (17.7%)
75,500 Anchor Bancorp Wisconsin, Inc. 2,378,250
69,100 BankAtlantic Bancorp, Inc. 993,312
56,100 CENFED Financial Corp. 2,286,075
65,650 Commercial Federal Corp. 3,155,304
29,000 First Citizens BancShares, Inc. 3,161,000
64,200 First Hawaiian, Inc. 2,439,600
24,300 First Republic Bank(a) 671,288
50,900 Peoples Heritage Financial Group, Inc. 2,169,612
48,530 Provident Bankshares Corp. 2,875,402
159,286 Sovereign Bancorp, Inc.(c) 3,016,479
67,200 Trans Financial, Inc. 2,310,001
14,400 UST Corp. 387,443
54,600 Webster Financial Corp. 3,421,033
---------------
29,264,799
---------------
EATING & DRINKING PLACES (1.2%)
31,500 Piccadilly Cafeterias, Inc. 395,719
170,700 Ryan's Family Steak Houses, Inc.(a) 1,514,962
---------------
1,910,681
---------------
ELECTRIC, GAS & SANITARY SERVICES (10.5%)
61,100 Boston Edison Co.(c) 2,138,500
112,200 Central Vermont Public Service 1,556,775
37,500 CILCORP, Inc. 1,645,313
82,700 Eastern Utilities Associates(c) 1,984,800
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
146
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
ELECTRIC, GAS & SANITARY SERVICES (continued)
<TABLE>
<C> <S> <C>
88,900 Public Service Co. of New Mexico $ 1,816,893
69,400 Rochester Gas & Electric Corp. 1,908,500
66,900 TNP Enterprises, Inc. 1,839,750
103,500 Tuscon Electric Power Co.(a) 1,798,313
21,400 United Illuminating Co. 872,051
56,100 WPS Resources Corp. 1,700,529
---------------
17,261,424
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (1.1%)
35,700 Harman International Industries, Inc. 1,807,313
---------------
ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT & RELATED SERVICES (1.0%)
137,000 Dames & Moore Group 1,695,375
---------------
FABRICATED METAL PRODUCTS (2.2%)
22,700 Alliant Techsystems, Inc.(a) 1,349,231
55,300 Nortek, Inc. 1,347,938
33,103 Varlen Corp. 906,113
---------------
3,603,282
---------------
FOOD STORES (1.9%)
98,100 Ingles Markets, Inc.(a) 1,324,350
87,800 Ruddick Corp. 1,788,925
---------------
3,113,275
---------------
GENERAL MERCHANDISE STORES (0.5%)
107,300 Homebase, Inc.(a)(c) 898,637
---------------
HEALTH SERVICES (2.4%)
49,600 Integrated Health Services, Inc.(c) 1,509,699
102,400 Mariner Health Group, Inc.(a) 1,484,800
72,700 Maxicare Health Plans, Inc.(a) 936,012
---------------
3,930,511
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (1.0%)
23,000 Inacom Corp.(a)(c) 652,625
68,100 Maxim Group, Inc.(a) 1,047,038
---------------
1,699,663
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (0.5%)
130,800 Station Casinos, Inc.(a) 866,551
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (7.2%)
69,100 Ampco Pittsburgh Corp. $ 1,312,900
43,900 Applied Magnetics Corp.(a)(c) 740,812
109,600 Auspex Systems, Inc.(a) 1,226,150
115,100 Commercial Intertech Corp. 2,057,412
71,200 Cypress Semiconductor Corp.(a) 778,750
41,300 Data General Corp.(a) 740,819
82,000 Gleason Corp. 2,126,875
42,700 Tractor Supply Co.(a) 677,863
48,200 TransTechnology Corp. 1,301,400
76,500 Trident Microsystems, Inc.(a)(c) 874,969
---------------
11,837,950
---------------
INSURANCE CARRIERS (7.7%)
83,900 ARM Financial Group, Inc. 1,704,219
63,600 Commerce Group, Inc. 1,995,450
84,000 Harleysville Group, Inc. 1,942,500
75,500 Nymagic, Inc. 1,925,250
55,800 PXRE Corp. 1,649,572
42,700 RLI Corp. 1,865,456
84,100 Symons International Group, Inc.(a) 1,566,362
---------------
12,648,809
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (0.9%)
157,900 Cavalier Homes, Inc. 1,539,525
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (2.8%)
71,300 ADAC Laboratories 1,488,388
29,900 Esterline Technologies Corp.(a) 1,057,712
108,400 Protocol Systems, Inc.(a) 1,097,551
32,700 Tech-Sym Corp.(a) 991,218
---------------
4,634,869
---------------
METAL MINING (0.9%)
32,100 Cleveland-Cliffs, Inc. 1,384,312
---------------
MOTION PICTURES (0.9%)
49,400 Carmike Cinemas, Inc.(a)(c) 1,528,313
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (1.2%)
114,600 Southern Pacific Funding Corp.(a)(c) 1,418,176
29,300 United Cos. Financial Corp.(c) 635,443
---------------
2,053,619
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
147
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
OIL & GAS EXTRACTION (2.8%)
106,100 Coho Energy, Inc.(a) $ 1,080,894
81,300 Global Industrial Technologies, Inc.(a) 1,453,238
33,300 Mitchell Energy & Development Corp. 882,450
21,000 SEACOR SMIT, Inc.(a) 1,169,438
---------------
4,586,020
---------------
PERSONAL SERVICES (1.6%)
59,200 Angelica Corp. 1,272,800
75,600 CPI Corp. 1,408,050
---------------
2,680,850
---------------
PETROLEUM REFINING & RELATED INDUSTRIES (0.9%)
25,000 Holly Corp. 675,000
52,800 Tesoro Petroleum Corp.(a) 877,800
---------------
1,552,800
---------------
PRIMARY METAL INDUSTRIES (7.8%)
67,600 AK Steel Holding Corp. 1,330,876
47,200 Carpenter Technology Corp. 2,224,299
57,700 Chase Industries, Inc.(a) 1,406,438
88,300 Inland Steel Industries, Inc. 1,688,738
52,900 Quanex Corp. 1,573,775
84,200 RMI Titanium Co.(a)(c) 1,999,750
55,900 Texas Industries, Inc. 2,602,844
---------------
12,826,720
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.0%)
41,300 Bowne & Co., Inc. 1,577,144
42,200 Media General, Inc. 1,798,774
---------------
3,375,918
---------------
TEXTILE MILL PRODUCTS (0.6%)
26,800 Oxford Industries, Inc. 941,350
---------------
TRANSPORTATION BY AIR (1.3%)
59,100 Alaska Air Group, Inc.(c) 2,208,860
---------------
TRANSPORTATION EQUIPMENT (2.1%)
81,800 Coachmen Industries, Inc. 1,820,050
138,700 Simpson Industries, Inc. 1,612,389
---------------
3,432,439
---------------
WHOLESALE TRADE--DURABLE GOODS (2.7%)
65,100 Bell Industries(a) 1,082,287
47,000 Commercial Metals Co. 1,548,063
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
WHOLESALE TRADE--DURABLE GOODS (continued)
<TABLE>
<C> <S> <C>
56,703 Hughes Supply, Inc. $ 1,856,925
---------------
4,487,275
---------------
WHOLESALE TRADE--NONDURABLE GOODS (3.0%)
46,800 Burlington Coat Factory Warehouse Corp. 874,575
63,800 Nash-Finch Co. 1,196,250
48,300 Performance Food Group Co.(a) 1,014,300
47,400 Universal Corp. 1,875,263
---------------
4,960,388
---------------
TOTAL COMMON STOCK (COST $137,270,391) 164,344,947
---------------
REPURCHASE AGREEMENTS (0.5%)
858,626 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at $859,035
(cost $858,626)(e) 858,626
---------------
TOTAL INVESTMENTS (100.0%)
(COST $138,129,017) $ 165,203,573
---------------
---------------
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO
- ----------------------------------------------------
STOCKS, WARRANTS AND RIGHTS (88.3%)
AUSTRALIA (3.0%)
COMMON STOCK
920,000 Australia & New Zealand Banking Group
Ltd. $ 6,320,082
326,000 Brambles Industries Ltd. 6,247,199
451,789 Broken Hill Proprietary Co. Ltd. 4,151,575
327,000 Telstra Corp. 615,293
521,000 Woodside Petroleum Ltd. 3,742,716
--------------
21,076,865
--------------
AUSTRIA (0.3%)
PREFERRED STOCK
42,890 Bank Austria AG 1,779,295
--------------
BELGIUM (0.7%)
COMMON STOCK
75,070 IPSO-Industrial Laundry Group(a) 3,176,911
140,000 Xeikon N.V.(a) 2,073,751
--------------
5,250,662
--------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
148
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ----------------------------------------------------
DENMARK (1.1%)
COMMON STOCK
232,650 International Service System
A/S(a) $ 7,796,234
---------------
FINLAND (0.3%)
COMMON STOCK
129,800 The Rauma Group 2,239,988
---------------
FRANCE (8.5%)
COMMON STOCK
54,580 Accor SA 10,317,825
38,990 Canal Plus 6,782,879
56,378 Compagnie Generale des Eaux 7,448,946
95,975 Elf Aquitaine 11,136,253
27,920 Legrand SA 5,320,574
155,000 METALEUROP SA(a) 1,614,720
126,107 Michelin 6,792,925
23,595 Primagaz 1,961,620
68,033 Societe Generale 8,942,680
WARRANTS
55,391 Compagnie Generale des Eaux(a) 33,874
2,145 Primagaz(a) 26,160
---------------
60,378,456
---------------
GERMANY (6.6%)
COMMON STOCK
24,240 Adidas AG 3,415,149
200,000 Bayer AG 7,401,068
11,000 Mannesmann AG 5,120,195
288,310 Tarkett AG 6,456,654
173,000 Veba AG 10,279,171
PREFERRED STOCK
47,300 SAP AG 14,561,685
---------------
47,233,922
---------------
ITALY (1.9%)
COMMON STOCK
2,217,742 Telecom Italia SpA 13,821,984
---------------
JAPAN (20.3%)
COMMON STOCK
336,000 Amada Metrecs Co. Ltd. 2,027,190
258,000 Arcland Sakamoto 1,799,178
441,000 Bridgestone Corp. 9,571,556
265,650 Credit Saison Co. Ltd. 6,660,766
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
JAPAN (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
239,000 Dai-Dan Co. Ltd. $ 1,666,680
1,122,000 Dai-Tokyo Fire & Marine Insurance Co. 4,307,776
319,000 Daiwa House Industry Co. Ltd. 2,574,496
324,000 Daiwa Securities Co. Ltd. 1,129,716
1,270 East Japan Railway Co. 5,771,593
311,000 Fuji Photo Film Co. 11,185,036
90,000 Glory Ltd. 1,107,151
667,000 Hanshin Electric Railway 2,137,536
910,000 Hitachi Ltd. 6,452,889
137,000 Ito-Yokado Co. Ltd. 6,183,114
191,000 Japan Airport Terminal Co. 1,466,638
3,507,000 Kobe Steel Ltd.(a) 3,352,431
66,000 Kyocera Corp. 3,185,583
85,000 Mabuchi Motor Co. 4,455,632
98,000 Matsushita Electric Industrial Co. Ltd. 1,528,071
69,100 Meiko Shokai 1,786,718
506,000 Mitsubishi Corp. 3,948,882
1,486,000 Mitsubishi Electric Corp. 4,110,150
181,000 Murata Manufacturing Co. Ltd. 5,431,774
69,600 Nagaileben Co. Ltd. 1,646,946
556,000 Oji Paper Co. Ltd. 2,313,307
263,000 Omron Corp. 4,492,380
122,600 SMC Corp. 10,855,084
64,000 Secom 4,011,754
337,000 Showa Shell Sekiyu 2,218,061
231,000 Takeda Chemical Inds. 6,751,263
38,500 Toho Co. 4,223,310
324,000 Tokio Marine & Fire Insurance Co. 3,071,811
417,000 Toppan Printing Co. Ltd. 5,652,576
37,000 Tostem Corp. 420,373
251,000 Toyota Motor Corp. 7,237,454
---------------
144,734,875
---------------
MALAYSIA (0.4%)
COMMON STOCK
767,000 Sime Darby Berhad 768,977
878,000 Tenaga Nasional Berhad 1,634,775
263,000 United Engineers (Malaysia) Berhad 235,803
---------------
2,639,555
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
149
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ----------------------------------------------------
NETHERLANDS (10.5%)
COMMON STOCK
401,000 Elsevier NV $ 6,777,463
180,433 Getronics NV 6,198,980
197,800 Gucci Group 8,047,990
56,500 Heineken NV 9,563,506
627,294 ING Group NV 25,495,652
43,451 Oce-Van Der Grinten NV 4,950,529
200,390 Philips Electronics NV 13,235,014
PREFERRED STOCK
8,400 ING Group NV 40,353
---------------
74,309,487
---------------
PORTUGAL (2.2%)
COMMON STOCK
260,360 Portugal Telecom 11,991,490
177,750 Semapa-Sociedade de Investimento e
Gestao
SGPS SA 3,945,396
---------------
15,936,886
---------------
SINGAPORE (2.4%)
COMMON STOCK
740,000 City Developments Ltd. 3,647,724
414,000 Development Bank of
Singapore Ltd. 3,899,529
567,000 Keppel Corp. Ltd. 1,922,637
335,400 Singapore Press Holdings Ltd. 4,591,347
533,000 United Overseas Bank Ltd. 3,179,592
---------------
17,240,829
---------------
SPAIN (0.9%)
COMMON STOCK
66,000 Banco Popular Espanol SA 4,204,526
132,000 Centros Comerciales Pryca SA 2,124,392
---------------
6,328,918
---------------
SWEDEN (2.1%)
COMMON STOCK
243,000 Atlas Copco AB 7,459,008
184,000 Telefonaktiebolaget LM Ericsson "B"
Shares 7,506,799
---------------
14,965,807
---------------
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ----------------------------------------------------
SWITZERLAND (10.6%)
COMMON STOCK
7,910 Asea Brown Boveri Ltd. $ 10,524,843
19,600 Adecco SA 5,774,006
8,640 Alusuisse-Lonza Holding AG 7,932,777
21,928 Novartis AG 35,036,811
860 Roche Holding AG 7,696,991
19,770 Selectra Group(a) 2,648,572
13,600 Zurich Versicherungs-Gesellschaft 5,723,504
---------------
75,337,504
---------------
UNITED KINGDOM (16.5%)
COMMON STOCK
377,300 Airtours plc 7,517,392
438,000 Allied Domecq plc 3,929,823
1,462,000 Asda Group plc 3,935,207
179,900 Barclays plc 4,328,512
303,584 Blue Circle Industries plc 1,751,938
372,200 British Airways plc 3,414,708
482,300 British Land Co. plc 5,322,772
322,700 Cable & Wireless plc 2,835,519
342,609 Cadbury Schweppes plc 3,550,203
1,645,800 David S. Smith Holdings plc 5,573,814
267,000 De La Rue plc 1,794,995
360,000 EMI Group plc 2,732,603
429,600 Enterprise Oil plc 4,234,474
110,000 HSBC Holdings plc 2,817,186
185,300 Johnson Matthey plc 1,712,502
334,600 Kingfisher plc 4,600,399
1,012,300 LASMO plc 4,485,845
530,000 Lloyds TSB Group plc 6,027,801
1,139,000 LucasVarity plc 3,641,538
1,263,900 MFI Furniture plc 2,598,076
36,220 National Westminster Bank plc 545,283
1,483,000 Pilkington Brothers plc 3,223,370
389,420 Prudential Corp. plc 4,202,587
564,000 Rank Group plc 3,290,394
199,000 Rio Tinto plc 2,397,389
240,000 Standard Chartered plc 2,674,979
309,200 Tesco plc 2,492,875
371,405 Tibbett & Britten Group 3,432,445
443,844 United News & Media plc 5,586,375
1,057,600 Vodafone Group plc 7,056,605
415,100 Williams Holdings plc 2,280,078
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
150
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
INTERNATIONAL PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
UNITED KINGDOM (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
99,000 Zeneca Group plc $ 3,164,347
---------------
117,152,034
---------------
TOTAL STOCKS, WARRANTS AND RIGHTS
(COST $564,803,894) 628,223,301
---------------
SHORT TERM HOLDINGS (11.7%)
39,121,649 Norwest Treasury Fund 39,121,649
44,433,286 Norwest U.S. Government Fund 44,433,286
---------------
TOTAL SHORT TERM HOLDINGS
(COST $83,554,935) 83,554,935
---------------
TOTAL INVESTMENTS (100.0%)
(COST $648,358,829) $ 711,778,236
---------------
---------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACT TO SELL
</TABLE>
<TABLE>
<CAPTION>
CONTRACT UNREALIZED
DATE CURRENCY UNITS US DOLLARS DEPRECIATION
- --------- --------------- ---------- ------------- ------------
<C> <S> <C> <C> <C>
12/19/97 Japanese Yen 3,000,000 $ 25,659,118 $ 2,121,118
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO
- ----------------------------------------------------
ASSET BACKED SECURITIES (12.4%)
3,000,000 Green Tree Financial Corp., Series
1997-7 A8, 6.86%, 7/15/29 $ 3,047,250
2,000,000 Loop Funding Master Trust, Series
1997-AX, Class B1, 6.00% VR,
12/26/07(b) 2,000,000
2,000,000 Oakwood Mortgage Investors, Inc., Series
1995-A, Class A3, 7.10% VR, 9/15/20 2,058,400
1,400,000 California Infrastructure Pacific Gas &
Electric, Series 1997-1 A6, 6.32%,
9/25/05 1,398,328
1,483,941 Sequoia Mortgage Trust, Series 2, Class
A1, 6.50% VR, 10/25/24 1,493,183
3,500,000 Van Kampen CLO-I, Ltd., 6.02% VR,
10/8/07 3,491,926
---------------
TOTAL ASSET BACKED SECURITIES
(COST $13,426,758) 13,489,087
---------------
- ----------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- ----------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (12.9%)
2,000,000 AMBS, Series CS-1012 1, 7.06% VR,
7/25/02 $ 2,043,750
1,500,000 Bear Stearns Structured Securities,
Inc., Series 1997-2, Class 1A2, 7.00%,
8/25/36 1,500,938
2,500,000 FHLMC Structured Pass Through
Securities, Series T-8, Class A4,
7.00%, 8/15/13 2,545,605
2,000,000 Hospitality Properties Mortgage
Acceptance, Series 1996-C1, 6.31% VR,
12/6/04(b) 2,000,000
3,025,423 RTC, Series 1992-M3 A1, 7.75% VR,
7/25/30 3,022,074
1,395,244 RTC, Series 1992-M3 A2, 8.63% VR,
7/25/30 1,393,936
1,461,524 Vendee Mortgage Trust, Series 1992-2,
Class G, 7.25% VR, 2/15/19 1,475,192
---------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST
$13,971,211) 13,981,495
---------------
CORPORATE BONDS & NOTES (38.4%)
2,500,000 Applied Materials, 7.00%, 9/6/05 2,571,718
3,000,000 Charles Schwab Corp., 6.88%, 9/2/03 3,039,333
3,000,000 Continental Airlines, 6.80%, 1/2/09 3,003,804
2,500,000 Corestates Capital Corp., 9.63%, 2/15/01 2,719,013
2,500,000 First Bank Systems, Inc., 8.00%, 7/2/04 2,700,518
2,000,000 Levi Strauss & Co., 6.80%, 11/1/03(b) 2,033,778
2,000,000 Massachusetts Institute of Technology,
7.25%, 11/2/2096 2,225,116
2,000,000 MedPartners, Inc., 6.88%, 9/1/00 1,968,360
1,000,000 Northwest Airlines Corp., 8.38%, 3/15/04 1,034,908
2,500,000 Oracle Corp., 6.72%, 2/15/04 2,533,725
2,000,000 Pep Boys, 6.71%, 11/3/04 2,010,444
2,500,000 Philip Morris Cos., Inc., 7.50%, 4/1/04 2,598,778
1,400,000 Potomac Capital Investment, 7.05%,
10/2/01(b) 1,420,818
1,750,000 Prudential Insurance Co., 7.65%,
7/1/07(b) 1,832,002
2,000,000 Raytheon Co., 6.45%, 8/15/02 2,009,380
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
151
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CORPORATE BONDS & NOTES (continued)
<TABLE>
<C> <S> <C>
2,500,000 Reinsurance Group of America, 7.25%,
4/1/06(b) $ 2,596,025
1,000,000 Tenet Healthcare Corp., 7.88%, 1/15/03 1,011,250
2,500,000 Terra Nova Holdings, 7.20%, 8/15/07(b) 2,552,038
1,875,000 Texas Utilities, 6.20%, 10/1/02(b) 1,868,293
---------------
TOTAL CORPORATE BONDS & NOTES
(COST $41,529,052) 41,729,301
---------------
GOVERNMENT AGENCY BONDS (6.5%)
5,490,000 FNMA, 8.95%, 2/12/18 (cost $6,876,045) 7,043,615
---------------
MORTGAGE BACKED SECURITIES (7.0%)
FNMA (7.0%)
1,985,481 Pool 73919, 6.80%, 1/1/04 2,000,988
3,468,241 Pool 313687, 7.00%, 9/1/27 3,468,164
1,993,006 Pool 375168, 7.13%, 6/1/04 2,066,460
---------------
TOTAL MORTGAGE BACKED SECURITIES
(COST $7,571,909) 7,535,612
---------------
MUNICIPAL BONDS & NOTES (3.8%)
2,000,000 Hudson County, NJ, Import Authority
Facilities, Leasing RV, FSA insured,
7.40%, 12/1/25 2,118,040
2,010,000 Western Minnesota, Power Agency RV,
Series A, AMBAC insured, 6.33%, 1/1/02 2,017,718
---------------
TOTAL MUNICIPAL BONDS & NOTES
(COST $4,072,840) 4,135,758
---------------
U.S. TREASURY OBLIGATIONS (16.6%)
U.S. TREASURY BONDS (8.1%)
4,750,000 7.50%, 11/15/16(c) 5,468,442
3,000,000 7.13%, 2/15/23(c) 3,380,250
---------------
TOTAL U.S. TREASURY BONDS (COST $8,561,445) 8,848,692
---------------
TOTAL U.S. TREASURY NOTES (8.5%)
2,500,000 5.50%, 12/31/00 2,477,575
2,500,000 5.75%, 8/15/03(c) 2,488,950
- ----------------------------------------------------
STRATEGIC VALUE BOND PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
U.S. TREASURY OBLIGATIONS (continued)
TOTAL U.S. TREASURY NOTES (continued)
<TABLE>
<C> <S> <C>
4,000,000 6.88%, 5/15/06(c) $ 4,247,501
---------------
TOTAL U.S. TREASURY NOTES (COST $9,117,930) 9,214,026
---------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $17,679,375) 18,062,718
---------------
REPURCHASE AGREEMENTS (2.4%)
2,648,783 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$2,650,046
(cost $2,648,783)(e) 2,648,783
---------------
TOTAL INVESTMENTS (100.0%)
(COST $107,775,973) $ 108,626,369
---------------
---------------
- ----------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (96.7%)
APPAREL & ACCESSORY STORES (2.6%)
68,990 Ross Stores, Inc. $ 2,690,610
---------------
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(4.5%)
48,200 Liz Claiborne, Inc. 2,422,050
57,200 Tommy Hilfiger Corp.(a)(c) 2,245,101
---------------
4,667,151
---------------
BUSINESS SERVICES (2.5%)
39,400 BMC Software, Inc.(a) 2,556,077
---------------
CHEMICALS & ALLIED PRODUCTS (4.9%)
27,600 Dow Chemical Co. 2,725,500
58,900 Lubrizol Corp. 2,297,100
---------------
5,022,600
---------------
COMMUNICATIONS (2.5%)
89,100 Cincinnati Bell, Inc. 2,628,450
---------------
DEPOSITORY INSTITUTIONS (2.3%)
20,500 Bankers Trust New York Corp.(c) 2,430,531
---------------
ELECTRIC, GAS & SANITARY SERVICES (5.1%)
67,700 GPU, Inc. 2,674,150
55,400 National Fuel Gas Co. 2,586,488
---------------
5,260,638
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
152
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (4.5%)
79,500 Bay Networks, Inc.(a) $ 2,389,968
68,300 National Semiconductor Corp.(a)(c) 2,262,439
---------------
4,652,407
---------------
FOOD & KINDRED PRODUCTS (5.3%)
52,400 Dean Foods Co. 2,783,750
76,800 Interstate Bakeries Corp.(c) 2,654,401
---------------
5,438,151
---------------
GENERAL MERCHANDISE STORES (5.5%)
42,200 Dayton Hudson Corp. 2,803,663
83,100 TJX Cos., Inc. 2,866,950
---------------
5,670,613
---------------
HOTELS, ROOMING HOUSES, CAMPS & OTHER LODGING PLACES (2.4%)
34,700 Marriott International, Inc. 2,513,581
---------------
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (9.1%)
47,900 Caterpillar, Inc.(c) 2,296,206
38,200 Compaq Computer Corp. 2,385,114
25,000 Eaton Corp. 2,360,937
54,100 Parker-Hannifin Corp. 2,407,450
---------------
9,449,707
---------------
INSURANCE CARRIERS (7.2%)
64,500 SunAmerica, Inc.(c) 2,612,250
53,550 Travelers Group, Inc.(c) 2,704,275
47,200 Wellpoint Health Networks, Inc.(a) 2,171,200
---------------
7,487,725
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (2.3%)
51,900 SCI Systems, Inc.(a)(c) 2,377,669
---------------
NONDEPOSITORY CREDIT INSTITUTIONS (2.1%)
17,100 SLM Holding Corp.(c) 2,208,038
---------------
OIL & GAS EXTRACTION (6.7%)
62,300 Dresser Industries, Inc. 2,328,463
64,200 ENSCO International, Inc.(c) 2,295,150
30,400 Helmerich & Payne, Inc. 2,312,301
---------------
6,935,914
---------------
- ----------------------------------------------------
DISCIPLINED GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
PETROLEUM REFINING & RELATED INDUSTRIES (2.5%)
63,600 Sun Co., Inc.(c) $ 2,571,825
---------------
PHARMACEUTICAL PREPARATIONS (2.9%)
47,400 Schering-Plough Corp. 2,971,388
---------------
PRIMARY METAL INDUSTRIES (2.2%)
73,900 USX-U.S. Steel Group, Inc.(c) 2,313,994
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (2.6%)
46,000 Times Mirror Co.(c) 2,731,251
---------------
TEXTILE MILL PRODUCTS (2.5%)
48,700 Sara Lee Corp. 2,575,013
---------------
TRANSPORTATION BY AIR (2.3%)
28,200 UAL Corp.(a) 2,397,000
---------------
TRANSPORTATION EQUIPMENT (9.6%)
53,900 Ford Motor Co. 2,317,700
30,500 General Dynamics Corp. 2,642,064
85,500 Harley-Davidson, Inc. 2,260,407
48,500 PACCAR, Inc. 2,667,500
---------------
9,887,671
---------------
WHOLESALE TRADE--NONDURABLE GOODS (2.6%)
67,300 Universal Corp. 2,662,544
---------------
TOTAL COMMON STOCK (COST $103,262,287) 100,100,548
---------------
REPURCHASE AGREEMENTS (3.3%)
3,418,534 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97, to be repurchased at
$3,420,164
(cost $3,418,534)(e) 3,418,534
---------------
TOTAL INVESTMENTS (100.0%)
(COST $106,680,821) $ 103,519,082
---------------
---------------
</TABLE>
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL CAP VALUE PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (98.0%)
APPAREL & OTHER FINISHED PRODUCTS MADE FROM FABRICS & SIMILAR MATERIALS
(3.3%)
41,000 Kellwood Co. $ 1,406,814
48,060 Nautica Enterprises, Inc.(a) 1,348,685
---------------
2,755,499
---------------
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (5.5%)
24,600 Centex Corp. 1,559,025
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
153
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
BUILDING CONSTRUCTION--GENERAL CONTRACTORS & OPERATIVE BUILDERS (continued)
<TABLE>
<C> <S> <C>
75,780 Ryland Group, Inc. $ 1,652,953
56,100 Toll Brothers, Inc.(a) 1,353,413
---------------
4,565,391
---------------
BUSINESS SERVICES (8.2%)
44,300 Comdisco, Inc. 1,295,776
31,200 Fiserv, Inc.(a) 1,513,200
40,120 GTECH Holdings Corp.(a) 1,291,363
45,830 Kelly Services, Inc. 1,323,342
98,500 Unisys Corp.(a)(c) 1,409,780
---------------
6,833,461
---------------
CHEMICALS & ALLIED PRODUCTS (1.7%)
35,500 Dexter Corp. 1,413,345
---------------
COMMUNICATIONS (2.0%)
56,400 Aliant Communications, Inc. 1,706,103
---------------
EATING & DRINKING PLACES (1.8%)
168,100 Ryan's Family Steak Houses, Inc.(a) 1,491,890
---------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT & COMPONENTS, EXCEPT COMPUTER
EQUIPMENT (3.6%)
28,500 Aeroquip-Vickers, Inc. 1,455,281
39,400 Teleflex, Inc. 1,507,052
---------------
2,962,333
---------------
FABRICATED METAL PRODUCTS (1.7%)
25,100 AptarGroup, Inc. 1,430,700
---------------
FOOD & KINDRED PRODUCTS (3.2%)
34,800 Adolph Coors Co. 1,252,800
29,700 Canandaigua Brands, Inc.(a) 1,421,888
---------------
2,674,688
---------------
FURNITURE & FIXTURES (1.7%)
36,700 Ethan Allen Interiors, Inc. 1,412,950
---------------
HEALTH SERVICES (5.0%)
27,480 Lincare Holdings, Inc.(a)(c) 1,545,750
53,500 RehabCare Group, Inc.(a) 1,444,500
41,230 Steiner Leisure Ltd.(a) 1,185,365
---------------
4,175,615
---------------
HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES (1.4%)
56,430 MicroAge, Inc.(a) 1,135,655
---------------
- ----------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
INDUSTRIAL & COMMERCIAL MACHINERY & COMPUTER EQUIPMENT (3.6%)
55,030 Detroit Diesel Corp.(a) $ 1,255,372
52,630 Kaydon Corp. 1,733,501
---------------
2,988,873
---------------
INSURANCE AGENTS, BROKERS & SERVICE (1.8%)
44,400 E.W. Blanch Holdings, Inc. 1,534,576
---------------
INSURANCE CARRIERS (6.9%)
37,960 American Bankers Insurance Group, Inc. 1,537,380
56,040 Fidelity National Financial, Inc. 1,457,040
43,900 Lawyers Title Corp. 1,393,826
26,600 Selective Insurance Group, Inc. 1,339,976
---------------
5,728,222
---------------
LUMBER & WOOD PRODUCTS, EXCEPT FURNITURE (3.6%)
52,700 Oakwood Homes Corp 1,581,000
57,870 TJ International, Inc. 1,439,517
---------------
3,020,517
---------------
MANUFACTURING (1.7%)
54,400 Watts Industries, Inc. 1,383,801
---------------
MEASURING, ANALYZING, & CONTROLLING INSTRUMENTS; PHOTOGRAPHIC, MEDICAL &
OPTICAL GOODS (4.7%)
54,700 Datascope Corp.(a) 1,398,268
77,720 ESCO Electronics Corp.(a) 1,272,666
35,400 Esterline Technologies Corp.(a) 1,252,276
---------------
3,923,210
---------------
MOTOR FREIGHT TRANSPORTATION & WAREHOUSING (6.3%)
115,120 Arkansas Best Corp.(a) 1,266,320
31,900 CNF Transportation, Inc. 1,387,650
54,010 M.S. Carriers, Inc.(a) 1,302,993
41,800 USFreightways Corp. 1,285,350
---------------
5,242,313
---------------
PRIMARY METAL INDUSTRIES (6.1%)
223,290 Armco, Inc.(a) 1,186,228
67,600 Inland Steel Industries, Inc.(c) 1,292,851
110,500 LTV Corp. 1,229,314
89,500 National Steel Corp.(a) 1,342,500
---------------
5,050,893
---------------
PRINTING, PUBLISHING & ALLIED INDUSTRIES (1.7%)
20,100 Central Newspapers, Inc. 1,381,876
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
154
<PAGE>
SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
- ----------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
RUBBER & MISCELLANEOUS PLASTICS PRODUCTS (1.5%)
47,400 Premark International, Inc. $ 1,238,325
---------------
STEEL (1.4%)
41,600 Schnitzer Steel Industries, Inc. 1,164,800
---------------
STONE, CLAY, GLASS & CONCRETE PRODUCTS (1.5%)
24,500 Lone Star Industries, Inc. 1,277,064
---------------
TEXTILE MILL PRODUCTS (3.0%)
68,700 Culp, Inc. 1,279,538
33,800 Oxford Industries, Inc. 1,187,226
---------------
2,466,764
---------------
TRANSPORTATION BY AIR (1.7%)
22,400 Airborne Freight Corp.(c) 1,426,600
---------------
TRANSPORTATION EQUIPMENT (4.7%)
111,110 Simpson Industries, Inc. 1,291,655
16,200 Thiokol Corp. 1,338,525
47,850 Varlen Corp. 1,309,894
---------------
3,940,074
---------------
TRANSPORTATION SERVICES (1.5%)
48,700 Circle International Group, Inc. 1,217,500
---------------
WATER TRANSPORTATION (2.6%)
41,700 Alexander & Baldwin 1,125,900
- ----------------------------------------------------
SMALL CAP VALUE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
WATER TRANSPORTATION (continued)
<TABLE>
<C> <S> <C>
38,570 Trico Marine Services, Inc.(a) $ 1,072,728
---------------
2,198,628
---------------
WHOLESALE TRADE--DURABLE GOODS (1.5%)
50,800 Pomeroy Computer Resources, Inc.(a) 1,270,000
---------------
WHOLESALE TRADE--NONDURABLE GOODS (3.1%)
67,380 Burlington Coat Factory Warehouse Corp. 1,259,163
34,100 Day Runner, Inc.(a)(c) 1,325,602
---------------
2,584,765
---------------
TOTAL COMMON STOCK (COST $84,690,199) 81,596,431
---------------
REPURCHASE AGREEMENTS (2.0%)
1,669,279 Bear, Stearns & Cos., Inc., 5.72%,
12/1/97 to be repurchased at
$1,670,075
(cost $1,669,279)(e) 1,669,279
---------------
TOTAL INVESTMENTS (100.0%)
(COST $86,359,478) $ 83,265,710
---------------
---------------
</TABLE>
See Notes to Schedules of Investments. CORE TRUST (DELAWARE)
155
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Securities that may be resold to "qualified institutional buyers" under rule
144A or securities offered pursuant to 4(2) of the Securities Act of 1933,
as amended.
(c) Part or all of this investment on loan, see Note 7 of Notes to Financial
Statements.
(d) The Funds have invested in a joint repurchase agreement. The following
represents the collateral on the BancAmerica Robertson Stephens joint
repurchase agreement: Collateralized by $22,460,000 FNMA Discount Notes,
5.53%, 1998; $26,280,000 FFCB Discount Notes, 5.40% to 5.58%, 1998 and
$153,000,000 FHLB Discount Notes, 5.54% to 5.58%, 1998.
(e) The Funds have invested in a joint repurchase agreement. The following
represents the collateral on the Bear, Stearns & Co., Inc. joint repurchase
agreement: Collateralized by multiple UST Strips, 0%, 2/15/01 - 8/15/04, Par
$65,000,000.
(f) At November 30, 1997, $2,765,000 of U.S. Treasury Bills, 1/22/98, with a
market value of $2,744,472, were pledged to cover margin requirements for
open futures contracts.
(g) During the period June 1, 1997 through November 30, 1997, Index Portfolio
purchased 6,400 shares of Norwest Corp.
(h) These securities have been determined to be illiquid. In the absence of
market value, the securities are valued based upon their fair value
determined under procedures approved by the Board of Trustees. A Fund may
make investments in an amount up to 15% of the value of the Fund's net
assets in such securities. The security description, acquisition date,
acquisition cost and carry value per unit are as follows:
<TABLE>
<CAPTION>
ACQUISITION ACQUISITION CARRY VALUE
SECURITY DESCRIPTION DATE COST PER UNIT
- ------------------------------------------------------------ ----------- ----------- -----------
<S> <C> <C> <C>
STABLE INCOME PORTFOLIO:
Aesop Funding II LLC, Series 1997-1 A1, 6.22% VR 10/20/01... 7/23/97 $3,500,000 $100.39
Commercial Loan Funding Trust, Series I A, 6.08% 8/15/05.... 8/20/97 3,218,579 99.93
First Merchant Auto Receivables Corp., Series 1996-A A2,
6.70%, 7/17/00............................................. 5/10/96 999,460 100.54
First Merchant Grantor Trust, Series 1996-2 A, 6.85%,
11/15/01................................................... 6/19/96 2,498,585 100.67
RTC 1992-18P A4, 6.64% VR, 4/25/28.......................... 2/24/95 4,116,470 100.00
USAA Capital Corp., 5.97%, 8/4/99........................... 7/30/97 1,999,620 100.06
MANAGED FIXED INCOME PORTFOLIO:
Cargill Inc., 8.35%, 2/12/11................................ 4/11/96 3,823,200 109.63
Colonial Pipeline, 7.45%, 8/15/07........................... 5/10/96 627,250 105.70
Corestates Capital Corp., 6.41% VR, 1/15/27................. 1/9/97 734,910 98.61
Florida Residential Property & Casualty, 7.25% 7/1/02....... 5/5/97 2,995,440 101.85
Hyundai Semiconductor, 8.25%, 5/15/04....................... 5/15/97 1,689,579 92.35
LG-Caltex Oil, 7.88%, 7/1/06................................ 6/28/96 996,850 103.99
Petroliam Nasional Berhad, 6.63%, 10/18/01.................. 9/19/97 1,299,650 97.65
</TABLE>
The following represent the fair market value of these securities and percentage
of the Portfolio's net assets as of November 30, 1997:
<TABLE>
<CAPTION>
FAIR MARKET PERCENTAGE OF
VALUE NET ASSETS
------------ --------------
<S> <C> <C>
Stable Income Portfolio........................... $13,525,171 6.19%
Managed Fixed Income Portfolio.................... 9,599,591 3.06%
</TABLE>
CORE TRUST (DELAWARE)
156
<PAGE>
NOTES TO SCHEDULES OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
ABBREVIATIONS
<TABLE>
<S> <C>
ADR American Depositary Receipts
AMBAC American Municipal Bond Assurance Corporation
AMBS Agriculture Mortgage Backed Securities
ARM Adjustable Rate Mortgage
FFCB Federal Farm Credit Bank
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
HCLT Household Consumer Loan Trust
MLMI Merrill Lynch Mortgage Investors
MNB Maryland National Bank
PRAT Premier Auto Trust
RFMSI Residential Funding Mortgage Security I
RTC Resolution Trust Corporation
RV Revenue Bonds
SBA Small Business Administration
SD School District
VR Variable Rate
</TABLE>
CORE TRUST (DELAWARE)
157
<PAGE>
(This page has been left blank intentionally.)
[LOGO]
158
<PAGE>
SCHRODER CAPITAL FUNDS
SEMI-ANNUAL REPORT
NOVEMBER 30, 1997
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
SCHRODER GLOBAL GROWTH PORTFOLIO
SCHRODER EM CORE PORTFOLIO
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHRODER SCHRODER
U.S. SMALLER GLOBAL SCHRODER
COMPANIES GROWTH EM CORE
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investments (Note 2):
Investments at cost........................... $170,633,649 $1,602,796 $ 19,724,127
Net unrealized appreciation (depreciation).... 21,409,045 (119,133) (844,471)
------------- ----------- ------------
TOTAL INVESTMENTS AT VALUE........................ 192,042,694 1,483,663 18,879,656
Cash and Cash Equivalents (Note 2).............. 29,153,751 715,728 5,950,618
Receivable for investments sold................. 1,797,894 - -
Receivable from administrator (Note 3).......... - 13,332 -
Receivable for dividends, tax reclaims and
interest...................................... 107,592 3,515 31,689
Organization costs, net of amortization (Note
2)............................................ 18,586 5,895 5,895
------------- ----------- ------------
TOTAL ASSETS...................................... 223,120,517 2,222,133 24,867,858
------------- ----------- ------------
LIABILITIES:
Payable for investments purchased............... 2,209,562 - 489,642
Payable to investment adviser (Note 3).......... 107,361 - 8,278
Payable to administrator (Note 3)............... - - 2,222
Payable to subadministrator (Note 3)............ 13,420 208 1,666
Accrued expenses and other liabilities.......... 48,591 20,446 25,578
------------- ----------- ------------
TOTAL LIABILITIES................................. 2,378,934 20,654 527,386
------------- ----------- ------------
NET ASSETS........................................ $220,741,583 $2,201,479 $ 24,340,472
------------- ----------- ------------
------------- ----------- ------------
COMPONENTS OF NET ASSETS:
Investors' capital.............................. $199,332,538 $2,320,612 $ 25,184,974
Net unrealized appreciation (depreciation) on
investments................................... 21,409,045 (119,133) (844,502)
------------- ----------- ------------
NET ASSETS........................................ $220,741,583 $2,201,479 $ 24,340,472
------------- ----------- ------------
------------- ----------- ------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
160
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE PERIOD ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHRODER U.S. SCHRODER SCHRODER
SMALLER COMPANIES GLOBAL GROWTH EM CORE
PORTFOLIO PORTFOLIO(A) PORTFOLIO(A)
------------------- --------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividend income (net of foreign withholding taxes of $0,
$114 and $114, respectively).......................... $ 449,403 $ 1,182 $ 9,381
Interest income......................................... 300,663 2,706 78,681
------------------- --------------- -------------
TOTAL INVESTMENT INCOME................................... 750,066 3,888 88,062
------------------- --------------- -------------
EXPENSES:
Investment advisory (Note 3)............................ 510,390 1,803 22,219
Administration (Note 3)................................. -- -- 2,222
Subadministration (Note 3).............................. 63,799 208 1,666
Transfer agency (Note 3)................................ 6,031 1,562 1,067
Custody................................................. 12,717 1,200 4,500
Accounting (Note 3)..................................... 18,000 7,742 5,323
Legal................................................... 5,892 200 2,000
Audit................................................... 20,700 4,000 5,000
Trustees................................................ 527 - -
Amortization of organization costs (Note 2)............. 2,509 - 105
Miscellaneous........................................... 30,715 782 2,075
------------------- --------------- -------------
TOTAL EXPENSES............................................ 671,280 17,497 46,177
Fees waived (Note 6).................................... - (15,135) (13,941)
------------------- --------------- -------------
NET EXPENSES.............................................. 671,280 2,362 32,236
------------------- --------------- -------------
NET INVESTMENT INCOME (LOSS).............................. 78,786 1,526 55,826
------------------- --------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments sold............ 6,149,644 (30,399) -
Net realized gain (loss) on foreign currency
transactions.......................................... - - (5,678)
------------------- --------------- -------------
Net realized gain (loss) on investments and foreign
currency transactions............................. 6,149,644 (30,399) (5,678)
------------------- --------------- -------------
Net change in unrealized appreciation (depreciation) on
investments........................................... 10,377,117 (119,133) (844,471)
Net change in unrealized appreciation (depreciation) on
foreign currency transactions......................... - - (31)
------------------- --------------- -------------
Net change in unrealized appreciation (depreciation)
on investments and foreign currency
transactions...................................... 10,377,117 (119,133) (844,502)
------------------- --------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS............................ 16,526,761 (149,532) (850,180)
------------------- --------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................... $16,605,547 $(148,006) $(794,354)
------------------- --------------- -------------
------------------- --------------- -------------
</TABLE>
(a) See Note 1 for the date the Portfolio commenced operations.
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
161
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHRODER SCHRODER
GLOBAL GROWTH EM CORE
PORTFOLIO PORTFOLIO
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO ------------------ ------------------
---------------------------------------------------- FOR THE PERIOD FOR THE PERIOD
FOR THE PERIOD OCTOBER 15, OCTOBER 30,
FOR THE SIX FOR THE AUGUST 15, 1997(A) 1997(A)
MONTHS ENDED PERIOD 1996(A) THROUGH THROUGH
NOVEMBER 30, 1997 ENDED THROUGH NOVEMBER 30, 1997 NOVEMBER 30, 1997
(UNAUDITED) MAY 31, 1997 OCTOBER 31, 1996 (UNAUDITED) (UNAUDITED)
------------------ ------------- ----------------- ------------------ ------------------
<S> <C> <C> <C> <C> <C>
NET ASSETS, BEGINNING OF PERIOD..... $ 103,385,258 $ 28,929,477 $ - $ - $ -
------------------ ------------- ----------------- ------------------ ------------------
OPERATIONS:
Net investment income (loss)...... 78,786 77,349 22,137 1,526 55,826
Net realized gain (loss) on
investments
sold............................ 6,149,644 2,311,789 735,049 (30,399) -
Net realized gain (loss) on
foreign currency transactions... - - - - (5,678)
Net change in unrealized
appreciation (depreciation) on
investments..................... 10,377,117 8,079,833 2,952,095 (119,133) (844,502)
------------------ ------------- ----------------- ------------------ ------------------
Net increase (decrease) in net
assets resulting from
operations...................... 16,605,547 10,468,971 3,709,281 (148,006) (794,354)
------------------ ------------- ----------------- ------------------ ------------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST:
Contributions..................... 103,197,618 69,106,539 26,247,304 2,350,040 33,435,944
Withdrawals....................... (2,446,840) (5,119,729) (1,027,108) (555) (8,301,118)
------------------ ------------- ----------------- ------------------ ------------------
Net increase (decrease) in net
assets from transactions in
investors' beneficial
interest........................ 100,750,778 63,986,810 25,220,196 2,349,485 25,134,826
------------------ ------------- ----------------- ------------------ ------------------
Net increase (decrease) in net
assets.......................... 117,356,325 74,455,781 28,929,477 2,201,479 24,340,472
------------------ ------------- ----------------- ------------------ ------------------
NET ASSETS, END OF PERIOD........... $ 220,741,583 $ 103,385,258 $ 28,929,477 $ 2,201,479 $ 24,340,472
------------------ ------------- ----------------- ------------------ ------------------
------------------ ------------- ----------------- ------------------ ------------------
</TABLE>
(a) Commencement of operations.
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
162
<PAGE>
FINANCIAL HIGHLIGHTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE
NET ASSETS
--------------------------------
NET PORTFOLIO AVERAGE
INVESTMENT GROSS TURNOVER COMMISSION
INCOME EXPENSES EXPENSES RATE RATE(a)
---------- -------- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
- -------------------------------------------------------------------------------------------------------------
June 1, 1997 to November 30, 1997............... 0.09%(b) 0.79%(b) N/A 28.71% $0.0588
November 1, 1996 to May 31, 1997................ 0.22%(b) 0.85%(b) 0.95%(b) 34.45% $0.0584
August 15, 1996 (c) to October 31, 1996......... 0.50%(b) 0.85%(b) 1.31%(b) 17.30% $0.0562
SCHRODER GLOBAL GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------------------
October 15, 1997 (c) to November 30, 1997....... 0.55%(b) 0.85%(b) 6.31%(b) 9.40% $0.0444
SCHRODER EM CORE PORTFOLIO
- -------------------------------------------------------------------------------------------------------------
October 30, 1997 (c) to November 30, 1997....... 2.51%(b) 1.45%(b) 2.08%(b) 0.00% $0.0084
</TABLE>
(a) Amount represents the average commission per share paid to brokers on the
purchase and sale of equity securities on which commissions are charged.
(b) Annualized.
(c) Commencement of operations.
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
163
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Schroder Capital Funds ("Schroder Core") was organized as a Delaware business
trust on September 7, 1995. Schroder Core, which is registered as an open-end,
management investment company under the Investment Company Act of 1940 (the
"Act"), currently has six investment portfolios. Included in this report are
Schroder U.S. Smaller Companies Portfolio, Schroder Global Growth Portfolio and
Schroder EM Core Portfolio (each a "Portfolio" and collectively the
"Portfolios"). Schroder U.S. Smaller Companies Portfolio is a diversified
portfolio that commenced operations on August 15, 1996, Schroder Global Growth
Portfolio and Schroder EM Core Portfolio are non-diversified portfolios that
commenced operations on October 15, 1997 and October 30, 1997, respectively.
Under its Trust Instrument, Schroder Core is authorized to issue an unlimited
number of interests without par value. Interests in the Portfolios are sold in
private placement transactions without any sales charges to qualified investors,
including open-end, management investment companies.
Effective May 31, 1997, Schroder U.S. Smaller Companies Portfolio changed its
fiscal year end to May 31 from October 31.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of increase and decrease in net assets from
operations during the fiscal period. Actual results could differ from those
estimates.
The following represent significant accounting policies of the Portfolios:
SECURITY VALUATION--Portfolio securities listed on recognized stock exchanges
are valued at the last reported sale price on the exchange on which the
securities are principally traded. Listed securities traded on recognized stock
exchanges where last sale prices are not available are valued at the last sale
price on the proceeding trading day or at closing mid-market prices. Securities
traded in over-the-counter markets, or listed securities for which no trade is
reported on the valuation date, are valued at the most recent reported
mid-market price. Other securities and assets for which market quotations are
not readily available are valued at fair value as determined in good faith using
methods approved by the Schroder Core Board of Trustees.
CASH EQUIVALENTS--The Portfolios consider all deposits and the related interest
income in the Chase Money Market Account to be cash equivalents.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
accounted for on the trade date. Dividend income is recorded on the ex-dividend
date except that certain dividends from foreign securities where the ex-dividend
date may have passed are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of withholding tax. Interest
income, including amortization of discount or premium, is recorded as earned.
Identified cost of investments sold is used to determine realized gain and loss
for both financial statement and federal income tax purposes. Foreign dividend
and interest income amounts and realized capital gain and loss are converted to
U.S. dollar equivalents using foreign exchange rates in effect at the date of
the transactions.
Foreign currency amounts are translated into U.S. dollars at the mean of the bid
and asked prices of such currencies against U.S. dollars as follows: (i) assets
and liabilities at the rate of exchange at the end of the respective period; and
(ii) purchases and sales of securities and income and expenses at the rate of
exchange prevailing on the dates of such transactions. The portion of the
results of operations arising from changes in the exchange rates and the portion
due to fluctuations arising from changes in the market prices of securities are
not isolated. Such fluctuations are included with the net realized and
unrealized gain or loss on investments.
EXPENSE ALLOCATION--Schroder Core accounts separately for the assets and
liabilities and operation of each Portfolio. Expenses that are directly
attributable to more than one Portfolio are allocated among the respective
Portfolios.
ORGANIZATIONAL COSTS--Costs incurred by each Portfolio in connection with this
organization and initial registration are being amortized on a straight line
basis over a five-year period.
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER--Schroder Capital Management International Inc. ("SCMI") is
the investment adviser to each of the Portfolios. Pursuant to an Investment
Advisory Agreement, SCMI is entitled to receive from Schroder U.S. Smaller
Companies Portfolio, Schroder Global Growth Portfolio and Schroder EM Core
Portfolio an annual fee, payable monthly, of 0.60%, 0.65% and 1.00%,
respectively, of each Portfolios average daily net assets.
ADMINISTRATION--On behalf of the Portfolios, the Trust has entered into an
Administration Agreement with Schroder Fund Advisors Inc. which is entitled to
receive from Schroder Global Growth Portfolio and Schroder EM Core Portfolio an
annual fee, payable monthly, at a rate of 0.05% and 0.10% , respectively , of
the Portfolios average daily net assets. In addition, the Trust has entered into
a Subadministration Agreement with Forum Administrative Services, LLC ("Forum")
under which Forum is entitled to
SCHRODER CAPITAL FUNDS
164
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENT ADVISORY AND OTHER SERVICES (CONTINUED)
receive from Schroder U.S. Smaller Companies Portfolio, Schroder Global Growth
Portfolio and Schroder EM Core Portfolio an annual fee, payable monthly, of
0.075%, 0.10% and 0.075%, respectively, of each Portfolios average daily net
assets. Previous subadministration agreements in effect with Forum Financial
Services, Inc. during the period were identical in all material terms including
fees.
TRANSFER AGENT--Forum Financial Corp.-Registered Trademark- ("FFC") serves as
the Portfolio's transfer agent and is entitled to receive compensation for those
services from the Schroder Core with respect to each Portfolio in the amount of
$12,000 per year plus certain other fees and expenses.
OTHER SERVICE PROVIDERS--FFC also performs portfolio accounting for the Schroder
U.S. Smaller Companies Portfolio, Schroder Global Growth Portfolio and Schroder
EM Core Portfolio and is entitled to receive compensation for those services in
the amount of $36,000, $60,000 and $60,000 per year, respectively, plus certain
amounts based upon the number and types of portfolio transactions.
NOTE 4. PURCHASES AND SALES OF SECURITIES
The cost of securities purchased and the proceeds from sales of securities
(excluding short-term securities) for the period ended November 30, 1997 were as
follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
------------- ------------
<S> <C> <C>
Schroder U.S. Smaller Companies Portfolio $ 123,264,025 $ 42,983,853
Schroder Global Growth Portfolio 1,776,024 142,829
Schroder EM Core Portfolio 19,724,127 -
</TABLE>
For federal income tax purposes, the tax basis of investment securities owned,
the aggregate gross unrealized appreciation and the aggregate gross unrealized
depreciation as of November 30, 1997 were as follows:
<TABLE>
<CAPTION>
NET
TAX UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Schroder U.S. Smaller Companies
Portfolio $ 170,633,649 $30,283,741 $8,874,696 $21,409,045
Schroder Global Growth Portfolio 1,602,796 15,434 134,567 (119,133)
Schroder EM Core Portfolio 19,724,127 363,873 1,208,344 (844,471)
</TABLE>
NOTE 5. FEDERAL TAXES
The Portfolios are not required to pay federal income taxes on their net
investment income and net capital gain as they are treated as partnerships for
federal income tax purposes. All interest, dividends, gain and loss of the
Portfolios are deemed to have been "passed through" to the partners in
proportion to their holdings of the Portfolios regardless of whether such
interest, dividends or gain have been distributed by the Portfolios.
Under the applicable foreign tax law, a withholding tax may be imposed on
interest, dividends, and capital gains at various rates.
NOTE 6. WAIVER OF FEES
For the period ended November 30, 1997, the Schroder Core's service providers
voluntarily waived and/or reimbursed certain fees or expenses incurred by the
Portfolios.
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES
BY REIMBURSED BY
----------- ---------------
SCMI SCMI TOTAL
----------- --------------- ---------
<S> <C> <C> <C>
Schroder Global Growth Portfolio $ 1,803 $ 13,332 $ 15,135
Schroder EM Core Portfolio 13,941 - 13,941
</TABLE>
NOTE 7. CONCENTRATION OF RISK
Schroder EM Core Portfolio investments in countries with limited or developing
capital markets may involve greater risks than investments in more developed
markets and the prices of such investments may be volatile. The consequences of
political, social or economic events in these markets may have disruptive
effects on the market prices of the Portfolio's investments.
SCHRODER CAPITAL FUNDS
165
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- -----------------------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO
- ----------------------------------------------------
COMMON STOCK (87.0%)
BASIC MATERIALS (2.6%)
53,500 AMCOL International Corp. $ 1,284,000
54,400 Ball Corp. 2,094,400
67,800 Calgon Carbon Corp. 745,800
41,400 Ferro Corp. 1,586,142
---------------
5,710,342
---------------
CAPITAL GOODS/CONSTRUCTION (7.7%)
49,600 Aeroquip-Vickers Inc. 2,532,702
98,500 Aftermarket Technology Corp.(a) 2,019,250
53,500 Donaldson Co. Inc. 2,568,000
68,200 Essex International Inc.(a) 2,203,713
37,600 Harsco Corp. 1,489,902
55,100 NS Group Inc.(a) 1,033,125
68,900 Tracor Inc.(a) 1,933,508
52,900 Triangle Pacific Corp.(a) 1,699,415
45,600 USA Waste Services Inc.(a) 1,507,652
---------------
16,987,267
---------------
CONSUMER CYCLICALS (23.5%)
85,600 800-JR CIGAR Inc.(a) 2,354,000
59,892 Accustaff Inc.(a) 1,770,559
68,200 American Italian Pasta Co.(a) 1,611,225
74,600 Bally Total Fitness Holding Corp.(a) 1,389,425
25,600 Barnett Inc.(a) 521,605
5,000 Beringer Wine Estates Holdings Inc.(a) 162,500
27,000 Consolidated Cigar Holdings Inc.(a) 744,188
50,938 Consolidated Stores Corp.(a) 2,476,814
88,600 Interface Inc. 2,658,000
95,000 Knoll Inc.(a) 2,861,878
94,200 Logan's Roadhouse Inc.(a) 1,677,938
27,800 Nautica Enterprises(a) 780,138
110,600 Paul Harris Stores Inc.(a) 2,336,426
113,300 Petco Animal Supplies Inc.(a) 3,342,350
109,200 Pier 1 Imports Inc. 2,443,352
159,700 Pillowtex Corp. 4,232,050
48,300 Promus Hotel Corp.(a) 2,004,450
78,050 Regal Cinemas Inc.(a) 1,990,275
45,650 Robert Half International Inc.(a) 1,783,205
59,900 Ross Stores Inc. 2,336,100
83,000 ShoLodge Inc.(a) 1,328,000
34,850 Sonic Corp.(a) 963,819
59,800 Stage Stores Inc.(a) 2,519,076
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
CONSUMER CYCLICALS (continued)
<TABLE>
<C> <S> <C>
25,900 Tiffany & Co. $ 987,440
89,200 Trendwest Resorts Inc.(a) 2,207,700
66,800 WestPoint Stevens Inc.(a) 2,663,654
57,600 Wet Seal Inc. Class A(a) 1,702,804
---------------
51,848,971
---------------
CONSUMER STAPLES (5.1%)
63,300 Compdent Corp.(a) 1,289,744
70,700 Foodmaker Inc.(a) 1,095,850
40,600 Henry Schein Inc.(a) 1,431,150
80,900 International Home Foods Inc.(a) 1,941,600
23,400 Physician Sales & Service Inc.(a) 532,350
60,100 Richfood Holdings Inc. 1,641,481
55,400 Suiza Foods Corp.(a) 3,223,587
---------------
11,155,762
---------------
ENERGY (9.4%)
32,600 Atwood Oceanics Inc.(a) 1,607,589
45,200 B.J. Service Co.(a) 3,245,928
60,200 Cooper Cameron Corp.(a) 3,668,443
34,400 Forcenergy Inc.(a) 1,068,550
68,700 Kuhlman Corp. 2,425,972
32,500 Ocean Energy Inc.(a) 1,817,970
53,200 Tosco Corp. 1,732,327
70,300 United Meridian Corp.(a) 2,113,393
60,200 Varco International Inc.(a) 3,081,492
---------------
20,761,664
---------------
FINANCIAL (14.0%)
68,900 AmerUs Life Holdings Inc. 2,239,250
134,100 BA Merchant Services Inc. Class A(a) 2,187,509
52,800 Bank United Corp. 2,217,600
63,300 Bay View Capital Corp. 2,136,375
57,400 CMAC Investment Corp. 2,981,218
1 Charter One Financial Inc. 59
60,050 Commercial Federal Corp. 2,886,154
47,300 Cullen/Frost Bankers Inc. 2,512,818
35,200 FBL Financial Group Inc. Class A 1,390,400
35,600 Fremont General Corp. 1,637,600
136,200 Inkeepers USA Trust 2,187,716
57,400 Mutual Risk Management Ltd. 1,603,613
83,100 North Fork BanCorp Inc. 2,524,164
82,639 Patriot American Hospitality Inc. 2,582,476
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
166
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
FINANCIAL (continued)
<TABLE>
<C> <S> <C>
71,610 UST Corp. $ 1,902,142
---------------
30,989,094
---------------
HEALTH CARE (7.1%)
112,500 Coventry Corp.(a) 1,680,472
22,700 Express Scripts Inc. Class A(a) 1,339,300
50,800 Genzyme Corp.(a) 1,362,078
1,188 Genzyme Corp. (Tissue Repair)(a) 9,059
111,400 Haemonetics Corp.(a) 1,636,189
59,400 Health Care and Retirement Corp.(a) 2,338,879
104,200 Invacare Corp. 2,409,635
78,500 Isis Pharmaceuticals Inc.(a) 1,162,783
62,000 Matria Healthcare Inc.(a) 317,752
112,300 Wesley Jessen VisionCare Inc.(a) 3,453,225
---------------
15,709,372
---------------
TECHNOLOGY (6.1%)
19,300 Antec Corp.(a) 294,325
51,800 EG&G Inc. 1,016,579
25,500 Evans & Sutherland Computer Corp.(a) 790,500
55,300 Exabyte Corp.(a) 539,175
101,200 INTERSOLV(a) 1,612,880
15,400 Intergraph Corp.(a) 162,664
52,400 MAPICS Inc.(a) 582,954
22,850 Marcam Solutions Inc.(a) 205,650
39,100 MicroTouch Systems Inc.(a) 811,325
75,500 Molecular Dynamics Inc.(a) 1,519,444
56,100 Symbol Technologies Inc. 2,191,409
37,700 System Software Associates Inc.(a) 499,525
29,400 Thomas & Betts Corp. 1,334,029
88,500 Wang Laboratories Inc.(a) 1,958,069
---------------
13,518,528
---------------
TRANSPORTATION/SERVICES/MISCELLANEOUS (11.5%)
43,400 CCA Prison Realty Trust 1,546,128
167,500 CHS Electronics Inc.(a) 3,161,563
51,600 CNF Transportation Inc. 2,244,600
86,650 Comair Holdings Inc. 1,917,133
83,400 Cornell Corrections Inc.(a) 1,459,500
23,000 Galileo International Inc. 616,688
35,100 INSpire Insurance Solutions Inc.(a) 666,900
400 ITC DeltaCom Inc.(a) 5,650
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER U.S. SMALLER COMPANIES PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
COMMON STOCK (continued)
TRANSPORTATION/SERVICES/MISCELLANEOUS (continued)
<TABLE>
<C> <S> <C>
82,200 Ivex Packaging Corp.(a) $ 1,644,000
55,000 Jacor Communications Inc.(a) 2,406,250
10,000 Mac-Gray Corp.(a) 147,500
98,000 Manufactured Home Communities Inc. 2,670,500
82,200 RemedyTemp Inc. Class A(a) 1,931,700
114,600 Select Appointments Holdings Public Ltd.
Co. 2,206,050
78,500 StaffMark Inc.(a) 2,737,532
---------------
25,361,694
---------------
TOTAL INVESTMENTS (87.0%)
(COST $170,633,649) 192,042,694
---------------
OTHER ASSETS LESS LIABILITIES (13.0%) 28,698,889
---------------
TOTAL NET ASSETS (100.0%) $ 220,741,583
---------------
---------------
(a) Non-income producing security.
- -----------------------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO
- ----------------------------------------------------
AUSTRALIA (2.9%)
COMMON STOCK
3,000 Australia & New Zealand Banking Group
Ltd.
FINANCE $ 20,609
1,000 Brambles Industries Ltd.
SERVICES 19,163
6,000 Foster's Brewing Group Ltd.
CONSUMER NON-DURABLES 11,126
2,000 Woodside Petroleum Ltd.
MATERIALS 14,367
---------------
65,265
---------------
CANADA (2.2%)
COMMON STOCK
740 Amber Energy Inc.(a)
ENERGY 10,632
810 Inco Ltd.
MATERIALS 11,381
980 National Bank of Canada
FINANCE 14,493
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
167
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CANADA (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
1,760 Stelco Inc.
MATERIALS $ 11,376
---------------
47,882
---------------
CHILE (0.8%)
COMMON STOCK
670 Compania de Telecomunicacion de Chile SA
ADR
TELECOMMUNICATIONS 18,132
---------------
FRANCE (7.2%)
COMMON STOCK
200 Accor SA
SERVICES 37,808
320 Canal Plus
SERVICES 55,669
220 Elf Aquitaine
ENERGY 25,527
250 Groupe Danone
CONSUMER NON-DURABLES 39,892
---------------
158,896
---------------
GERMANY (4.8%)
COMMON STOCK
500 Fresenius Medical Care AG(a)
MATERIALS 33,252
900 Hoechst AG
MATERIALS 31,789
85 Mannesmann AG
CAPITAL EQUIPMENT 39,565
---------------
104,606
---------------
ITALY (1.7%)
COMMON STOCK
5,920 Telecom Italia SpA
ENERGY 36,896
---------------
JAPAN (9.9%)
COMMON STOCK
2,000 Bridgestone Corp.
MATERIALS 43,408
1,000 Fuji Photo Film Co.
CAPITAL EQUIPMENT 35,965
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
JAPAN (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
2,000 Matsushita Electric Industrial Co. Ltd.
CAPITAL EQUIPMENT $ 31,185
4,000 Mitsui & Co.
SERVICES 27,800
2,000 Takeda Chemical Industries
CONSUMER DURABLES 58,453
5,000 Yasuda Fire & Marine Insurance
SERVICES 20,372
---------------
217,183
---------------
NETHERLANDS (6.9%)
COMMON STOCK
2,870 ABN Amro Holding NV
SERVICES 54,715
280 Baan Co. NV(a)
SERVICES 20,113
1,340 Gucci Group NV-NY Shares
CONSUMER NON-DURABLES 54,521
350 Philips Electronics NV
CAPITAL EQUIPMENT 23,116
---------------
152,465
---------------
SINGAPORE (2.5%)
COMMON STOCK
2,000 Development Bank of Singapore Ltd.
FINANCE 18,838
4,000 NatSteel Ltd.
MULTI-INDUSTRY 8,440
2,000 Singapore Press Holdings Ltd.
SERVICES 27,378
---------------
54,656
---------------
SWEDEN (1.8%)
COMMON STOCK
1,130 Svenska Handelsbanken
SERVICES 39,808
---------------
SWITZERLAND (3.6%)
COMMON STOCK
41 Nestle SA
CONSUMER NON-DURABLES 60,334
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
168
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
SWITZERLAND (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
10 SGS Societe Generale de Surveillance
Holding SA
SERVICES $ 18,686
---------------
79,020
---------------
UNITED KINGDOM (7.5%)
COMMON STOCK
2,070 EMI Group plc
CONSUMER NON-DURABLES 15,712
3,570 Enterprise Oil plc
ENERGY 35,189
2,280 JJB Sports
SERVICES 22,915
3,140 Lloyds TSB Group plc
FINANCE 35,712
5,510 LucasVarity plc
CAPITAL EQUIPMENT 17,616
1,190 Zeneca Group plc
CONSUMER DURABLES 38,036
---------------
165,180
---------------
UNITED STATES OF AMERICA (15.6%)
COMMON STOCK
480 AlliedSignal Inc.
CAPITAL EQUIPMENT 17,820
240 Allstate Corp.
SERVICES 20,610
375 Baker Hughes Inc.
ENERGY 15,703
260 BankAmerica Corp.
FINANCE 18,980
230 Bristol-Myers Squibb Co.
CONSUMER NON-DURABLES 21,534
330 Caterpillar Inc.
CAPITAL EQUIPMENT 15,819
250 Cisco Systems Inc.(a)
CONSUMER DURABLES 21,563
270 Colgate-Palmolive Co.
CONSUMER NON-DURABLES 18,039
390 Gap Inc.
CONSUMER DURABLES 20,938
290 General Electric Co.
CONSUMER DURABLES 21,388
290 McGraw-Hill Cos. Inc.
SERVICES 19,847
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER GLOBAL GROWTH PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
UNITED STATES OF AMERICA (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
200 Merck & Co. Inc.
CONSUMER NON-DURABLES $ 18,913
350 Rite Aid Corp.
CONSUMER NON-DURABLES 23,013
540 Ryder System Inc.
SERVICES 19,609
190 Schlumberger Ltd.
ENERGY 15,639
430 Sun Microsystems Inc.(a)
CONSUMER DURABLES 15,480
310 Textron Inc.
CAPITAL EQUIPMENT 18,329
405 Travelers Group Inc.
SERVICES 20,450
---------------
343,674
---------------
TOTAL INVESTMENTS (67.4%)
(COST $1,602,796) 1,483,663
---------------
OTHER ASSETS LESS LIABILITIES (32.6%) 717,816
---------------
TOTAL NET ASSETS (100.0%) $ 2,201,479
---------------
---------------
(a) Non-income producing security.
ADR American Depository Receipts
- -----------------------------------------------------------------
SCHRODER EM CORE PORTFOLIO
- ----------------------------------------------------
ARGENTINA (3.7%)
COMMON STOCK
3,300 Banco de Galicia y Buenos Aires SA de CV
ADR
FINANCE $ 77,550
3,200 Cresud SA ADR(a)
CONSUMER NON-DURABLES 62,800
9,400 Quilmes Industrial SA ADR
CONSUMER NON-DURABLES 122,200
7,700 Telefonica de Argentina SA ADR
SERVICES 254,582
11,100 YPF Sociedad Anonima ADR
ENERGY 372,544
---------------
889,676
---------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
169
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
BOTSWANA (0.4%)
COMMON STOCK
90,000 Sechaba Ord(a)
CONSUMER NON-DURABLES $ 96,136
---------------
BRAZIL (11.6%)
COMMON STOCK
7,800 Aracruz Celulose ADR
SERVICES 112,125
24,300 Centrais Electricas Brasileiras SA
Eletrobras
ENERGY 596,912
5,800 Cia Ener De Minas Gerais ADR
ENERGY 282,332
11,200 Companhia Brasileira ADR
SERVICES 166,600
15,000 Comphania Vale do Rio Doce
ENERGY 269,081
17,700 Petrol Brasileiro - Petrobras
ENERGY 386,124
8,400 Telecomunicacoes Brasileiras SA Telebras
ADR
SERVICES 876,750
4,600 Unibanco-Uniao Banco(a)
FINANCE 132,250
---------------
2,822,174
---------------
CHILE (4.4%)
COMMON STOCK
10,200 Banco BHIF ADR
FINANCE 175,950
9,700 Chilectra SA
ENERGY 242,112
4,500 Compania Cervecerias Unidas SA
CONSUMER NON-DURABLES 121,500
13,200 Compania de Telecomunicacion de Chile SA
ADR
SERVICES 357,225
9,900 Distribucion y Servicio(a)
SERVICES 172,631
---------------
1,069,418
---------------
CHINA, PEOPLES REPUBLIC OF (1.5%)
COMMON STOCK
10,500 China Steel Corporation GDS
MATERIALS 149,625
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
CHINA, PEOPLES REPUBLIC OF (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
4,000 Huaneng Power International Inc. ADR(a)
ENERGY $ 88,000
220,000 Qingling Motors Co.
CAPITAL EQUIPMENT 117,395
---------------
355,020
---------------
CZECH REPUBLIC (0.6%)
COMMON STOCK
1,300 SPT Telekom AS(a)
SERVICES 136,959
---------------
EGYPT (0.9%)
COMMON STOCK
11,200 Commercial International Bank GDR
FINANCE 228,200
---------------
GREECE (0.5%)
COMMON STOCK
4,800 Hellenic Bottling Company SA
CONSUMER NON-DURABLES 113,070
---------------
HONG KONG (3.6%)
COMMON STOCK
132,000 Anhui Expressway Co. Ltd.
SERVICES 21,515
244,000 Beijing Datang Power(a)
MULTI-INDUSTRY 112,842
52,000 Cheung Kong Infrastructure Holdings
CAPITAL EQUIPMENT 121,082
204,000 China Resources Beijing(a)
FINANCE 95,663
48,000 China Resources Enterprise Ltd.
FINANCE 103,385
40,000 Citic Pacific Ltd.
FINANCE 159,373
90,000 Cosco Pacific Ltd.
FINANCE 62,870
90,000 Guangnan Holdings
CONSUMER NON-DURABLES 67,526
162,000 Guangshen Railway
SERVICES 34,578
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
170
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
HONG KONG (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
46,000 New World Infrastructure(a)
CAPITAL EQUIPMENT $ 90,747
---------------
869,581
---------------
HUNGARY (2.2%)
COMMON STOCK
2,600 Gedeon Richter
CONSUMER NON-DURABLES 244,075
2,900 Matav RT ADR(a)
SERVICES 58,725
4,400 MOL Magyar Olaj GDR
ENERGY 92,400
4,600 OTP Bank GDR(a)
FINANCE 143,198
---------------
538,398
---------------
INDIA (5.9%)
COMMON STOCK
7,500 BSES Ltd. GDR(a)
ENERGY 101,250
14,000 Grasim Industries Ltd. GDR
MATERIALS 119,099
8,000 Indian Hotels Co. Ltd.
SERVICES 151,000
14,000 ITC
MULTI-INDUSTRY 220,500
17,500 Mahindra & Mahindra Ltd.
CAPITAL EQUIPMENT 153,125
5,000 Ranbaxy Laboratories Ltd.
MATERIALS 115,000
22,400 Reliance Industries Ltd.(a)
MATERIALS 178,080
13,000 State Bank of India
FINANCE 166,725
550 Tata Electric Co.(b)
ENERGY 127,842
8,500 VSNL GDR(a)
SERVICES 104,125
---------------
1,436,746
---------------
INDONESIA (1.6%)
COMMON STOCK
38,000 Astra
CAPITAL EQUIPMENT 19,794
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
INDONESIA (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
105,000 London Sumatra Indonesia
CONSUMER NON-DURABLES $ 94,277
335,000 PT Bank Internasional Indonesia
FINANCE 43,627
15,000 PT Gudang Garam
CONSUMER NON-DURABLES 31,871
5,000 PT Indofoods Sukses Makmur
CONSUMER NON-DURABLES 3,290
20,000 PT Indostat
SERVICES 45,374
198,000 PT Telekomunikasi Indonesia
SERVICES 145,209
---------------
383,442
---------------
ISRAEL (2.6%)
COMMON STOCK
166,300 Bank Leumi Le-Israel
SERVICES 265,505
7,640 Teva Pharmaceutical Industries Ltd. ADR
MATERIALS 378,180
---------------
643,685
---------------
KOREA, REPUBLIC OF (1.9%)
COMMON STOCK
4,000 Kookmin Bank
FINANCE 21,479
3,000 Korea Electric Power Corp.
ENERGY 33,861
12,000 LG Electronics
CONSUMER DURABLES 134,416
1,500 Pohang Iron & Steel Company Ltd.
MATERIALS 59,613
2,500 Samsung Electronics Co.
CONSUMER DURABLES 90,688
5,500 Shinhan Bank
FINANCE 28,358
200 SK Telecom Co. Ltd.
SERVICES 66,099
3,500 Yukong Ltd.
ENERGY 33,519
---------------
468,033
---------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
171
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
MALAYSIA (0.3%)
COMMON STOCK
8,000 Berjaya Sports Toto Berhad
SERVICES $ 17,531
30,000 Magnum Corp. Berhad
SERVICES 19,507
18,000 Malayan Banking Berhad
FINANCE 46,148
---------------
83,186
---------------
MEXICO (13.0%)
COMMON STOCK
17,000 ALFA SA de CV
MULTI-INDUSTRY 127,958
146,000 Cemex SA de CV(a)
MATERIALS 629,486
267,000 Cifra SA de CV
SERVICES 515,106
245,000 Controladora Com Mexicana
SERVICES 266,171
25,000 Desc SA de CV
MULTI-INDUSTRY 236,892
48,000 Fomento Economico Mexicano SA de CV
CONSUMER NON-DURABLES 397,539
113,000 Grupo Financiero Bancomer(a)
FINANCE 64,273
12,600 Telefonos de Mexico SA ADS
SERVICES 623,700
6,000 Tubos de Acero de Mexico SA ADR(a)
MATERIALS 132,750
8,400 TV Azteca SA de CV(a)
SERVICES 173,775
---------------
3,167,650
---------------
PAKISTAN (0.5%)
COMMON STOCK
4,000 Hub Power Co. Ltd.(a)
ENERGY 122,000
---------------
PERU (1.0%)
COMMON STOCK
5,800 CPT Telefonica del Peru SA ADS
SERVICES 121,800
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
PERU (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
6,700 Credicorp Ltd.
FINANCE $ 122,275
---------------
244,075
---------------
PHILIPPINES (2.6%)
COMMON STOCK
307,000 Ayala Land Inc.(a)
SERVICES 121,196
810,000 Belle Corp.(a)
SERVICES 39,070
350,000 Digital Telecommunications Philippines
Inc.(a)
SERVICES 17,686
38,000 Manila Electric Company "B" Shares
ENERGY 132,012
12,000 Philippine Long Distance Telephone Co.
SERVICES 289,406
256,000 SM Prime Holdings
SERVICES 40,425
---------------
639,795
---------------
POLAND (2.2%)
COMMON STOCK
35,000 Elektrim Spolka Akcyjna
MULTI-INDUSTRY 336,443
3,500 Wedel SA
CONSUMER NON-DURABLES 193,950
---------------
530,393
---------------
RUSSIA (1.6%)
COMMON STOCK
1,300 Lukoil Holding
ENERGY 99,060
12,660 Pliva DD GDR
MATERIALS 192,116
4,550 Unified Energy Systems(a)
CAPITAL EQUIPMENT 105,506
---------------
396,682
---------------
SINGAPORE (0.5%)
COMMON STOCK
11,000 Asia Pulp & Paper Co. ADR
MATERIALS 119,625
---------------
</TABLE>
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
172
<PAGE>
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
SOUTH AFRICA (7.6%)
COMMON STOCK
4,400 Anglo American Corporation of South
Africa Ltd.
FINANCE $ 183,012
3,000 Anglo American Industrial
MULTI-INDUSTRY 79,069
25,000 Barlow Ltd.
MULTI-INDUSTRY 237,311
30,000 Dimension Data Holdings Ltd.(a)
FINANCE 129,723
13,000 Ellerine Holdings Ltd.
CONSUMER DURABLES 90,477
15,000 Fedsure Holdings Ltd
FINANCIAL 173,582
20,000 First National Bank Holdings Ltd.
FINANCE 168,846
17,000 Foodcorp Ltd.
CONSUMER NON-DURABLES 84,711
31,800 Nampak Ltd.
MATERIALS 104,767
10,200 Rembrandt Group Ltd.
MULTI-INDUSTRY 78,234
19,600 Sasol Ltd.
MULTI-INDUSTRY 197,554
9,600 South African Breweries Ltd.
MULTI-INDUSTRY 235,231
15,000 South African Druggists Ltd.
MATERIALS 92,659
---------------
1,855,176
---------------
TAIWAN (4.6%)
COMMON STOCK
26,000 Acer Inc. GDR(a)
SERVICES 200,200
10,000 Asia Cement Corp. GDS
MATERIALS 116,750
7,500 Asustek Computer Inc.(a)
CAPITAL EQUIPMENT 120,375
13,000 ROC Taiwan Fund
FINANCE 123,500
10,000 Silicon Precision Industries Co.(a)
ENERGY 137,000
<CAPTION>
FACE/SHARE SECURITY
AMOUNT DESCRIPTION VALUE
<C> <S> <C>
- ----------------------------------------------------
SCHRODER EM CORE PORTFOLIO (continued)
- ----------------------------------------------------
</TABLE>
TAIWAN (continued)
COMMON STOCK (continued)
<TABLE>
<C> <S> <C>
2,500 Taiwan Fund Inc.
FINANCE $ 47,813
12,000 Taiwan Semiconductor Manufacturing
Co.(a)
ENERGY 264,000
8,000 Teco Electric & Machinery GDR(a)
MULTI-INDUSTRY 108,480
---------------
1,118,118
---------------
THAILAND (0.8%)
COMMON STOCK
7,000 Advanced Info Service Public Co. Ltd.
SERVICES 36,521
20,000 Electricity Generating Public Co. Ltd.
SERVICES 38,509
11,000 PTT Exploration and Production Public
Co. Ltd.
ENERGY 121,888
---------------
196,918
---------------
VENEZUELA (1.5%)
COMMON STOCK
9,000 Compania Anonima
SERVICES 355,500
---------------
TOTAL INVESTMENTS (77.6%)
(COST $19,724,127) 18,879,656
---------------
OTHER ASSETS LESS LIABILITIES (22.4%) 5,460,816
---------------
TOTAL NET ASSETS (100.0%) $ 24,340,472
---------------
---------------
</TABLE>
(a) Non-income producing security.
(b) Valued pursuant to methodology approved by the Board of Trustees.
ADR--American Depository Receipts
GDR--Global Depository Receipts
See Notes to Financial Statements. SCHRODER CAPITAL FUNDS
173
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
Norwest Advantage Funds Bulk Rate
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- -C-1998 NORWEST ADVANTAGE FUNDS
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